To: Board of Supervisors
From: Public Works
Agenda Section: Consent
SUBJECT:
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Third Amendment to Lease at 1608 Pickett Road, McKinleyville
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve the Third Amendment to the lease with lessor, McKinleyville Community Services District (MCSD), for continued use of the Sheriff’s Substation facility at 1608 Pickett Road; McKinleyville;
2. Authorize the Chair of the Board of Supervisors to sign the Third Amendment to lease; and
3. Direct the Clerk of the Board to return one (1) executed Third Amendment to lease to Public Works Real Property.
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SOURCE OF FUNDING:
General Fund (1100)
DISCUSSION:
On Feb. 25, 2015, the county entered into a lease with MCSD for use of a Sheriff Substation at 1608 Pickett Road, McKinleyville (Attachment 1 - Lease).
On Feb. 7, 2018, the county entered into a First Amendment to lease with MCSD to extend the term of the lease for three (3) additional years, ending on Feb. 28, 2021, and to adjust the rent for the term based on the Consumer Price Index (Attachment 2 - First Amendment to Lease).
On Feb. 23, 2021, the county entered into a Second Amendment to lease with MCSD to extend the term of the lease for one (1) year, ending on Feb. 28, 2022, and to adjust the rent for the term based on the Consumer Price Index (Attachment 3 - Second Amendment to Lease).
Staff is proposing a Third Amendment to lease to extend the term of the lease for one (1) year, ending on Feb. 28, 2023, and to adjust the rent for this term based on Consumer Price Index (Attachment 4 - Third Amendment to Lease). The one (1) year extension will allow time and effort to ensure the premises are in compliance with all Americans with Disability Act (ADA) accessibility. A future Fourth Amendment to lease is forthcoming to identify and denote the responsibilities of these ADA barriers for said compliance.
Attached is our proposed Third Amendment to Lease for requested approval and signature.
FINANCIAL IMPACT:
Rent has been $188.55 a month or $2,262.60 a year since Mar. 1, 2021. New rent for the new term beginning on Mar. 1, 2022, and ending on Feb. 28, 2023, will be $201.60 a month or $2,419.20 for the year, representing a monthly increase of $13.05 a month or $156.60 for the year. The new rent’s calculation is based on the difference of the Consumer Price Index for the months of November of 2020 and 2021. The increased rent will be managed in the existing budget allocations for 1100-221210 Sheriff, McKinleyville Station.
STRATEGIC FRAMEWORK:
This action supports your Board’s Strategic Framework by providing for and maintaining infrastructure.
OTHER AGENCY INVOLVEMENT:
Public Works Real Property
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board could deny approval of the Third Amendment to Lease; however, this is not advisable as the lease would go into a month-to-month tenancy holdover period after Feb. 28, 2022. The tenancy holdover period would be subject to all terms and conditions of the lease except that lessor may terminate the county’s tenancy upon 30 days written notice.
ATTACHMENTS:
Attachment No. 1 - Lease
Attachment No. 2 - First Amendment to Lease
Attachment No. 3 - Second Amendment to Lease
Attachment No. 4 - Third Amendment to Lease
PREVIOUS ACTION/REFERRAL:
Board Order No.: C13, C28, C13
Meeting of: 2/10/15, 2/06/18, 2/23/21
File No.: 21-1