File #: 24-379    Version: 1 Name:
Type: Informational Report Status: Passed
File created: 3/21/2024 In control: Public Works
On agenda: 3/26/2024 Final action: 3/26/2024
Title: Second Lease Amendment with PWM, Inc. for 605 K Street, Eureka
Attachments: 1. Staff Report, 2. Attachment 1 - Lessor Executed - CA9007 Partially Executed Agreement.pdf, 3. Attachment 2 - 2017-12-12 BOS C14 1st Lease Option.pdf, 4. Attachment 3 - 2023-3-21 1st Lease Amendment.pdf, 5. Attachment 4 - ADA Access Compliance Assessment - 605 K Street Eureka - 12-16-2022 Landlord Tenant Responsibilities.pdf, 6. Attachment 5 - 605 K St, Eureka - Punchlist 12-16-2022.pdf, 7. Executed Lease Agreement - PWM, Inc.pdf

To: Board of Supervisors

From: Public Works

Agenda Section: Consent

Vote Requirement: Majority

SUBJECT:
title
Second Lease Amendment with PWM, Inc. for 605 K Street, Eureka
end

RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve and execute the second lease amendment for 605 K Street, Eureka, (Attachment 1) with PWM, Inc. for continued use as office space through Dec. 31, 2026; and
2. Direct the Chair to return one (1) fully executed copy of the first lease amendment to Public Works - Real Property.

Body
SOURCE OF FUNDING:
Social Services Fund (1160-511)

DISCUSSION:
On March 26, 2013, your Board approved a lease with PWM, Inc. (Lessor) for use of the premises at 605 K Street, Eureka, by the Department of Health and Human Services (DHHS). According to the lease (Attachment 2), the initial term ended on Mar. 31, 2018. The lease gives the county an option to extend the lease, upon the same terms and conditions, for an additional one (1) five (5) year term. On Dec. 12, 2017, your Board approved this five (5) year option to extend the lease until March 31, 2023 (Attachment 2).

On March 21, 2023, the Lessor and county entered into a first lease amendment to extend the termination date from March 31, 2023 to March 31, 2024 (Attachment 3).

The county and Lessor have been mutually working to remove existing Americans with Disabilities Act (ADA) barriers (Attachment 4). However, the ADA barriers that the Lessor is responsible for, will not be removed by the termination of this lease on March 31, 2024. Therefore, the county and Lessor have agreed to amend this lease to extend the term to Dec. 31, 2026. Both the county and Lessor shall remove their respective barriers, shown in Attachment 4, during this term extension and will negotiate a new lease in 2026.

FINANCIAL IMPACT:
There is an annual Consumer Price Index (CPI) adjust each April 1st. Per the lease, this increase is limited to no more than 5% regardless of ...

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