File #: 23-1255    Version: 1 Name:
Type: Informational Report Status: Passed
File created: 9/8/2023 In control: Public Works
On agenda: 9/26/2023 Final action: 9/26/2023
Title: Third Lease Amendment with Eureka Old Town, LLC. for Continued Use of 507 F Street, Eureka, for Offices
Attachments: 1. Staff Report, 2. Lease - 2003-01-14 BOS Lease with Kramer Properties Inc for 507 F St.pdf, 3. First Amendment - 2003-11-18 BOS 1st Amendment to Lease with Kramer Properties Inc for 507 F St.pdf, 4. Second Amendment - 2018-10-16 BOS Second Amendment 507 F St.pdf, 5. Third Amenment to lease-507 F Street Landlord Executed.pdf, 6. Executed Third Amendment to Lease - Eureka Old Town.pdf

To: Board of Supervisors

From: Public Works

Agenda Section: Consent

Vote Requirement: Majority

SUBJECT:
title
Third 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 (Lessor), LLC. for ninety-two (92) calendar days to Dec. 31, 2023.

Body
SOURCE OF FUNDING:
Department of Health and Human Services (DHHS), Administration (1160-516)

DISCUSSION:
On Jan. 14, 2003, 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 ten (10) calendar years, with two (2) five (5) year options to extend the lease to Sept. 30, 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 Third Amendment is to extend the term of the lease for 507 F Street until Dec. 31, 2023. In the interim, DHHS will soon come to your Board with a new lease for use of 507 F Street, Eureka.

FINANCIAL IMPACT:
Expenditures (1160-516)
FY23-24
Budgeted Expenses
$197,019
Total Expenditures
$197,019
Funding Sources (1160-516)
FY23-24 Adopted
State/Federal Funds
$197,019
Total Funding Sources
$197,019
*Projected amounts are estimates and are subject to change.

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...

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