To: Board of Supervisors
From: Public Works
Agenda Section: Consent
Vote Requirement: Majority
SUBJECT:
title
First Option to Extend the Lease Agreement with Rachel-Jill Hemmert Regarding the Use of Office Space Located at 824 Harris Street, Eureka, California
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Authorize the Humboldt County Public Works Director to exercise the first option to extend the term of the lease agreement with Rachel-Jill Hemmert regarding the use of office space located at 824 Harris Street, Eureka, California; and
2. Direct the Clerk of the Board to provide the Humboldt County Department of Public Works - Real Property Division with one (1) fully executed certified copy of the Board Order relating to this item.
Body
SOURCE OF FUNDING:
Behavioral Health Fund (1170)
DISCUSSION:
On June 28, 2005, the Humboldt County Board of Supervisors (“Board”) approved the lease agreement with Rachel-Jill Hemmert regarding the use of office space located at 824 Harris Street, Eureka, California. The Board subsequently approved the first amendment to the lease agreement on June 24, 2008, to extend the term to June 30, 2010. The Board then approved the second amendment to the lease agreement on May 21, 2013, to extend the term with three (3) one (1) year options to June 30, 2018. The Board later approved the third amendment to the lease agreement on May 15, 2018, to extend the term until June 30, 2023, with additional two (2) five (5) year options. The Board approved a fourth amendment to the lease agreement on September 17, 2019, to memorialize an increase in rent for landscaping services.
Execution and delivery of the attached first option letter will extend the term of the lease agreement with Rachel-Jill Hemmert for an additional five (5) year period to June 30, 2028. The lease agreement with Rachel-Jill Hemmert requires the County of Humboldt to submit written notice to the lessor a minimum of sixty (60) days prior to the expiration date of June 30, 2023.
Accordingly, staff recommends that the Board authorize the Humboldt County Public Works Director, or a designee thereof, to exercise the first option to extend the term of the lease agreement with Rachel-Jill Hemmert regarding the use of office space located at 824 Harris Street, Eureka, California.
FINANCIAL IMPACT:
|
Expenditures (1170424) |
FY22-23 Adopted |
FY23-24 Projected |
FY24-25 Projected |
|
Budgeted Expenses |
36,288 |
36,288 |
36,288 |
|
Additional Appropriation Requested |
$$ |
$$ |
$$ |
|
Total Expenditures |
36,288 |
36,288 |
36,288 |
|
Funding Sources (Fund, Budget Unit) |
FY22-23 Adopted |
FY23-24 Projected* |
FY24-25 Projected* |
|
General Fund |
$$ |
$$ |
$$ |
|
State/Federal Funds |
36,288 |
36,288 |
36,288 |
|
Fees/Other |
$$ |
$$ |
$$ |
|
Use of Fund Balance |
$$ |
$$ |
$$ |
|
Contingencies |
$$ |
$$ |
$$ |
|
Total Funding Sources |
36,288 |
36,288 |
36,288 |
*Projected amounts are estimates and are subject to change.
The monthly rental rate for office space located at 824 Harris Street, Eureka, California is $3,024 per month. The lease agreement with Rachel-Jill Hemmert does not contain an escalation clause, therefore the rent shall be $36,288 per year for the period of July 1, 2023 through June 30, 2028. The Humboldt County Department of Health and Human Services - Behavioral Health has sufficient funding in fund 1170 to cover the monthly rental costs that will be incurred during the period of July 1, 2023 through June 30, 2028. As a result, approval of the recommended actions will not impact the Humboldt County General Fund
STAFFING IMPACT:
Approval of the first option to extend the lease agreement with Rachel-Jill Hemmert regarding the use of Office space located at 824 Harris Street, Eureka, California will not impact current staffing levels.
STRATEGIC FRAMEWORK:
The recommended actions support the Board of Supervisors’ Strategic Framework by creating opportunities for improved safety and health and protecting vulnerable populations.
OTHER AGENCY INVOLVEMENT:
None
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board may choose not to authorize the Humboldt County Public Works Director to exercise the first option to extend the term of the lease agreement with Rachel-Jill Hemmert regarding the use of office space located at 824 Harris Street, Eureka, California. However, this alternative is not recommended as the result will be a holdover term on a month to month tenancy.
ATTACHMENTS:
1. Lease dated 6-28-05
2. First Amendment dated 6-24-08
3. Second Amendment dated 5-21-13
4. Third Amendment dated 5-15-18
5. Fourth Amendment dated 9-17-2019
6. Option Letter to Property Owner
PREVIOUS ACTION/REFERRAL:
Board Order No.: C14, D11, C12, C7, C5, C10, C12, C7, C22
Meeting of: 6/28/05, 6/24/08, 3/15/11, 3/20/12, 5/21/13, 4/26/16, 4/18/17, 5/15/18, 9/17/19
File No.: n/a, 16-8235, 16-4296, 16-2948, 16-1353, 16-2410, 17-1760, 18-434, 19-1187