DATE: April 25, 2023
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director, Internal Services/Chief Information Officer
John Zanoni, Sheriff-Coroner-Public Administrator
SUBJECT: Retroactive Fourth Amendment to Lease Agreement with Ellis Family Partnership III
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute Fourth Amendment to Lease Agreement with Ellis Family Partnership III, for the premises located at 5717 E. Shields, Fresno, CA, to be used by the Sheriff’s Office as a substation, with no change in the month-to-month term and increasing the monthly rent from $12,000 to $15,000, retroactive to March 1, 2023.
REPORT
There is no additional Net County Cost associated with the recommended action, which will allow the Fresno County Sheriff’s Office to continue occupying the space provided by Ellis Family Partnership III (EFP) until construction of the new substation site is completed. The increased funding under the recommended Amendment will address in increase in rent per month by EFP. This item pertains to a location in District 5.
ALTERNATIVE ACTION(S):
If your Board does not approve the recommended action, the Sheriff’s Office will not be able to continue utilizing the current space as a substation, and will need to find an alternative space to lease until construction of the new substation site is completed.
RETROACTIVE AGREEMENT:
This Amendment is retroactive to March 1, 2023. This item is coming before your Board within the agenda item deadlines after staff was notified of the need to amend the lease to account for the increased rent.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The recommended Amendment will increase the monthly rent from $12,000 to $15,000 per month, retroactive to March 1, 2023. Sufficient appropriations and estimated revenues are included in the Sheriff’s Office Org 3111 FY 2022-2023 Adopted Budget and will be included in future budget requests.
DISCUSSION:
The Sheriff’s substation has been at 5717 E. Shields, Fresno, CA 93727 since 1988 and serves the eastern part of Fresno County.
On February 26, 2008, your Board approved Lease Agreement No. 08-075 with EFP (the Lease Agreement) to renew the lease for the Sheriff’s Area 2 substation at this location for eight years, from January 1, 2008 through December 31, 2015, at the rent of $10,000 per month.
On December 15, 2015, your Board approved First Amendment to the Lease Agreement to extend the initial term of the Lease Agreement by one year to December 31, 2016, add a one-year automatic renewal from January 1, 2017 to December 31, 2017, and increased the rent to $12,000 per month effective January 1, 2016.
On April 17, 2018, your Board approved Second Amendment to the Lease Agreement to increase the number of optional one-year renewal term to five, and extending the term to December 31, 2021, with no change to the rent cost per month.
On October 5, 2021, your Board approved Third Amendment to the Lease Agreement which converted the lease term to month-to-month upon the expiration of all renewal terms, with no change to the rent cost per month.
Approval of the recommended Amendment will increase the monthly rent from $12,000 to $15,000 per month, retroactive to March 1, 2023, and will allow the Sheriff’s Office time and flexibility to transition to the new substation site without disruption. All other terms remain unchanged. The Sheriff’s Office anticipates occupying the space at the current substation through June 2023, though unanticipated delays could push that date out one or more months. The Lease Agreement may be terminated with 30 days written notice by either party.
REFERENCE MATERIAL:
BAI #27, October 5, 2021
BAI #25, April 17, 2018
BAI #18, December 15, 2015
BAI #27, February 26, 2008
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Fourth Amendment to Lease Agreement with EFP
CAO ANALYST:
Ahla Yang