To: Board of Supervisors
From: Public Works
Agenda Section: Consent
SUBJECT:
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Fourth Amendment to Lease with Humboldt Partners at 2440 Sixth Street, Eureka
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RECOMMENDATION
Recommendation
That the Board of Supervisors:
1. Approve the Fourth Amendment to lease with Humboldt Partners at 2440 Sixth Street, Eureka;
2. Authorize the Chair of the Board to execute the Fourth Amendment to lease;
3. Direct the Clerk of the Board to return the Fourth Amendment to lease to Public Works Real Property; and
4. Authorize the Department of Health and Human Services to submit payment in the amount of Fifty-Nine Thousand, Two Hundred Fifty-Two Dollars and Forty-nine Cents ($59,252.49) to Humboldt Partners.
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SOURCE OF FUNDING:
Social Services Fund (1160)
DISCUSSION:
On Feb. 6, 2018, the Board approved a Second Amendment to lease to initiate the Lessor’s use of professional services. These services accomplished design and construction of county interior improvements to accommodate additional public use services.
On Jan. 8, 2019, the Board approved a Third Amendment to the lease to approve county payment of the construction costs associated with the interior improvements.
The interior improvements were recently completed, with several changes made during construction that increased the improvement costs by Fifty-Nine Thousand, Two Hundred Fifty-Two Dollars and Forty-Nine Cents ($59,252.49). The additional construction costs are a result of county’s design change requests, unforeseen conditions, and plan check changes (Exhibit A - Itemized Costs, and Exhibit B - Change Orders). The original contract value is One Million Thirty Thousand, Three Hundred Fifty-Six Dollars ($1,030,356) and the total of DHHS change orders represent 5.8% of the original contract value.
Attached is a proposed Fourth Amendment to lease that defines the improvement costs and specifies county payment to be made within thirty (30) days from the date of Board Approval, the Fourth Amendment’s reference to Exhibit D - Invoice.
FINANCIAL IMPACT:
The county will pay Lessor a one-time cost of Fifty-Nine Thousand, Two Hundred Fifty-Two Dollars and Forty-Nine Cents ($59,252.49) from the Social Services Fund 1160 Budget Unit 508 Child Welfare Services and is funded with 2011 Realignment. 2011 Realignment funds are comprised of set portions of state sales tax and vehicle license fees provided to counties in support of various county programs. There will be no impact to the General Fund.
STRATEGIC FRAMEWORK:
This action supports your Board’s Strategic Framework by managing our resources to ensure sustainability of services and creating opportunities for improved health and safety as well as protecting vulnerable populations.
OTHER AGENCY INVOLVEMENT:
Department of Health and Human Services
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board could choose not to approve this Fourth Amendment to the lease; however, this is not recommended as not remitting payment due would open the county to a claim to recovery of said monies.
ATTACHMENTS:
Fourth Amendment to Lease
Exhibit A - Itemized costs
Exhibit B - Change Orders
Exhibit D - Invoice (Fourth Amendment)
PREVIOUS ACTION/REFERRAL:
Board Order No.: C-9; C-10; C-18; C-18
Meeting of: 04/14/15; 04/05/16; 02/06/18; 01/08/19
File No.: 18-1653; 20-1033