To: Board of Supervisors
From: Public Works
Agenda Section: Consent
Vote Requirement: Majority
SUBJECT:
title
Fourth Lease Amendment with Eureka Old Town, LLC. for Continued Use of 507 F Street, Eureka, for Offices.
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. That the Board of Supervisors approve and authorize the Chair to execute the Third Lease Amendment to extend the Lease Term at 507 F Street, Eureka with Eureka Old Town LLC, (Lessor), for 91 calendar days to March 31, 2024.
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SOURCE OF FUNDING:
Social Services Fund (1160-516)
DISCUSSION:
On Jan. 14, 2003, the Department of Health and Human Services (DHHS) entered into a Lease with Lessor for office space at 507 F Street, Eureka. On Nov. 18, 2003, DHHS entered into a First Lease Amendment with Eureka Old Town, LLC. On Oct. 16, 2013, the Board of Supervisors approved a Second Lease Amendment with the Lessor.
The initial 2003 lease term was for 10 calendar years, with two (2) five (5) year options to extend the lease to Sept. 30, 2023. On Sept. 26, 2023, the Board of Supervisors approved the Third Lease Amendment with the Lessor to extend the lease to Dec. 31, 2023.
The county and lessor are working on a new lease agreement for the premises at 507 F Street, Eureka, but have not yet agreed upon a final lease. This Fourth Amendment is to extend the term of the lease for 507 F Street until Mar. 31, 2024. In the interim, DHHS will soon come to your Board with a new lease for use of 507 F Street, Eureka.
FINANCIAL IMPACT:
Narrative Explanation of Financial Impact:
The expense of the lease for 507 F St. was included in the approved budget for fiscal year (FY) 2023-24 in Fund 1160 Budget Unit 516, DHHS Administration. The monthly lease payments for the extension of the lease, will increase 3%, from $63,760.45 to $65,673.26, resulting in a projected cost of $197,019. This increase is included in the original Lease which allowed for an annual increase based on the Consumer Price Index (CPI) and capped at 3%. This action will not modify any of the Board approved FY budget for budget 1160516. There is no impact to the General Fund.
STAFFING IMPACT:
Narrative Explanation of Staffing Impact:
This lease amendment will not impact staffing.
STRATEGIC FRAMEWORK:
This action supports the following areas of your Board’s Strategic Framework.
Core Roles: Create opportunities for improved safety and health
New Initiatives: Provide community-appropriate levels of service
Strategic Plan: 4.3 - Create campus-like county facilities with co-located services that are desirable to work and be in, in consultation with the cities
OTHER AGENCY INVOLVEMENT:
None
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Your Board may decide not to approve this Lease Amendment. However, staff recommends the approval of this Amendment to avoid Holdover.
ATTACHMENTS:
Attachment 1 - 1/14/2003 Lease
Attachment 2 - 11/18/2003 First Lease Amendment
Attachment 3 - 10/16/2018 Second Lease Amendment
Attachment 4 - 9/26/2023 Third Lease Amendment
PREVIOUS ACTION/REFERRAL:
Board Order No.: C6; C16; C20; C18
Meeting of: 1/14/2003; 11/18/2003; 10/16/2018; 9/26/23
File No.: 18-1265; 23-1255