File #: 21-763    Version: 1 Name:
Type: Board Order Status: Passed
File created: 6/2/2021 In control: Public Works
On agenda: 10/26/2021 Final action: 10/26/2021
Title: Lease with KGK, LLC., for 430 F Street, Suite B, Eureka
Attachments: 1. Staff Report, 2. Attach 1 - 2021-9-24 LL executed 430 F Street Lease.pdf, 3. Attach 2 - 2012-11-06 BOS Lease with CUE LLC for 430 F St Ste B.pdf, 4. Attach 3 - 2015-09-01 BOS 1st Lease Extension with CUE, LLC.pdf, 5. Attach 4 - 430 F Owner Name Change Letter.pdf, 6. Attach 5 - 2017-11-14 BOS Approved Second Option to Extend the Lease at 430 F Street Suite B Eureka.pdf, 7. Attach - 2019-10-01 BOS Option Letter.pdf, 8. Executed Attach 2 - 2012-11-06 BOS Lease with CUE LLC for 430 F St Ste B.pdf

To: Board of Supervisors

From: Public Works

Agenda Section: Consent

SUBJECT:
title
Lease with KGK, LLC., for 430 F Street, Suite B, Eureka
end

RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve and authorize the Chair to execute the lease with KGK, LLC. at 430 F Street, Suite B, Eureka, for a term of Dec. 1, 2021 through Nov. 30, 2026.

Body
SOURCE OF FUNDING:
Social Services Fund (1160)

DISCUSSION:
On Nov. 6, 2012, the Department of Health and Human Services (DHHS) entered into the lease at 430 F Street, Suite B, Eureka, with KGK, LLC., for basement storage space. The original term of the lease was through Nov. 30, 2015 and had the option to extend the lease for three (3) two (2) year terms. On Sept. 1, 2015, the Board of Supervisors authorized the first option to extend the lease. On Sept. 22, 2017, DHHS was informed that the Lessor had merged with KGK Rentals, LLC. and was now and shall remain KGK Rentals, LLC. On Nov. 14, 2017, the Board of Supervisors authorized the second option to extend the lease. On Oct. 1, 2019, the Board approved the third option to extend the lease with KGK Rentals through Nov. 30, 2021.

DHHS is required to retain various documents to comply with State and Federal Regulations. The 430 F Street, Suite B, Eureka location provides the required space for storage of such files and is located near the DHHS Administration offices at 507 F Street, Eureka. In addition, this space provides storage to meet DHHS program needs.

DHHS therefore requests the Board of Supervisors approve exercising a new lease for 430 F Street, Suite B, Eureka, with KGK, LLC. through Nov. 30, 2026 with five (5) one (1) year option terms to extend this lease.

FINANCIAL IMPACT:
Beginning Dec. 1, 2021, the rental expense will be $1,860 per month. The leased premises is 6,800 square feet, approximately $0.27 per square foot. Commencing on the first day of the month following the anniversary of execution of this le...

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