To: Board of Supervisors
From: Public Works
Agenda Section: Consent
Vote Requirement: Majority
SUBJECT:
title
Option to Extend the Lease Agreement with Six Rivers Investments Regarding Use of Warehouse Space Located at 3530 Broadway, Eureka, California
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve the option to extend the lease agreement with Six Rivers Investments regarding use of warehouse space located at 3530 Broadway, Eureka, California to Nov. 30, 2028; and
2. Authorize the Humboldt County Public Works Director, or designee, to exercise the option to extend the lease agreement with Six Rivers Investments regarding use of warehouse space located at 3530 Broadway, Eureka, California; and
3. Direct the Clerk of the Board to provide the Humboldt County Public Works - Real Property Division with one (1) fully executed certified copy of the Board Order relating to this item.
Body
STRATEGIC PLAN:
This action supports the following areas of your Board’s Strategic Plan.
Area of Focus: Core Services/Other
Strategic Plan Category: 9999 - Core Services/Other
DISCUSSION:
On December 20, 2022, the Humboldt County Board of Supervisors (“Board”) approved a lease agreement with Six Rivers Investments for the use of warehouse space located at 3530 Broadway, Eureka. The Humboldt County District Attorney’s Office (“HCDA”) utilizes this facility for the secure storage of impounded vehicles for prosecution.
HCDA has leased this warehouse space since Dec. 2022 under the current agreement, which is scheduled to expire on Nov. 30, 2025. The attached Option to Extend Letter proposes a three-year extension of the lease term, through Nov. 30, 2028, under the same terms and conditions, including a two percent (2%) rent escalation during the extended term.
Staff recommend that the Board approve the option to extend the lease agreement to Nov. 30, 2028, and authorize the Humboldt County Public Works Director, or designee, to execute the Option to Extend the lease agreement with Six Rivers Investments for continued use of the warehouse space located at 3530 Broadway, Eureka.
SOURCE OF FUNDING:
Humboldt County District Attorney’s Office (1100-205)
FINANCIAL IMPACT:
|
Expenditures (1100-205) |
FY25-26 Projected* |
FY26-27 Projected* |
FY27-28 Projected* |
|
Budgeted Expenses |
$18,210.00 |
$18,360.00 |
$18,360.00 |
|
Total Expenditures |
$18,210.00 |
$18,360.00 |
$18,360.00 |
|
Funding Sources (1100-205) |
FY25-26 Projected* |
FY25-26 Projected* |
FY27-28 Projected* |
|
General Fund |
$18,210.00 |
$18,360.00 |
$18,360.00 |
|
Total Funding Source |
$18,210.00 |
$18,360.00 |
$18,360.00 |
*Projected amounts are estimates and are subject to change.
Narrative Explanation of Financial Impact:
The lease agreement with Six Rivers Investments includes a rent increase of two percent (2%) during the extended option term, effective Dec. 1, 2025. Sufficient expenditure appropriations to cover this increase have been included in the approved FY 2025-2026 budget for the District Attorney’, budget unit, 1100-205.
STAFFING IMPACT:
Narrative Explanation of Staffing Impact:
There is no impact to staffing expected with the option to extend the lease agreement with Six Rivers Investments for warehouse space located at 3530 Broadway, Eureka, California
OTHER AGENCY INVOLVEMENT:
None.
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board may choose not to approve the attached option to extend the lease agreement with Six Rivers Investments regarding the use of warehouse space located at 3530 Broadway, Eureka, California. However, this alternative is not recommended since there are currently no other locations available to accommodate the storage space needs of the Humboldt District Attorney’s Office.
ATTACHMENTS:
Attachment 1 - Lease Agreement with Six Rivers Investments Regarding Use of Warehouse Space Located at 3530 Broadway, Eureka, California
Attachment 2 - Option to Extend Lease Agreement Six Rivers Investments Regarding Use of Warehouse Space Located at 3530 Broadway, Eureka, California
PREVIOUS ACTION/REFERRAL:
Meeting of: 12/22/2022
File No.: 22-1738