DATE: December 15, 2015
TO: Board of Supervisors
SUBMITTED BY: Margaret Mims, Sheriff-Coroner
Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: First Amendment to Lease Agreement for Sheriff’s Substation
RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize the Chairman to execute First Amendment to Lease Agreement #08-075 with Land Management Opportunities LLC for office space (8,480 square feet) at 5717 E. Shields, Fresno, CA for the Sheriff’s substation, to extend the lease term to December 31, 2016, with a one-year automatic renewal from January 1, 2017 to December 31, 2017 (Renewal Term), and increase the rent to $12,000 per month effective January 1, 2016, with annual rent of $144,000; and
2. Approve and authorize either the Director of Internal Services/Chief Information Officer or the Sheriff-Coroner to terminate Lease Agreement #08-075 as of any date during the Renewal Term by providing at least one hundred and eighty (180) days prior written notice to terminate to Lessor.
REPORT
Recommended action one will extend the current lease by one year to December 31, 2016. At the expiration of the initial term this lease shall automatically renew for a 12 month renewal term beginning January 1, 2017 and ending on December 31, 2017. The County may terminate this lease as of any date during the renewal term by providing 180 days prior written notice either during the initial term or the renewal term. The rent will increase from $10,000 to $12,000 per month effective January 1, 2016. The amendment will enable the Sheriff to occupy the current substation until a decision is made regarding a new substation site.
ALTERNATIVE ACTION(S):
There are no viable alternative actions. The Sheriff-Coroner will continue to occupy the facility until a determination is made regarding a future site.
FISCAL IMPACT:
There is no increase in net County cost associated with the recommended actions. The Sheriff will pay rent of $12,000 per month during the term of the First Amendment. Sufficient appropriations and estimated revenues are included in the FY 2015-16 Adopted Budget Org 3111 and will be included in future requested budgets.
DISCUSSION:
On February 26, 2008 your Board approved Agreement No. 08-075 with Land Management Opportunities, LLC to renew the lease for the Sheriff’s Area 2 substation located at 5717 E. Shields for eight years from January 1, 2008 through December 31, 2015. The Sheriff’s substation has been at this location since 1988 and serves the eastern part of Fresno County.
On November 4, 2014 your Board authorized staff to issue a Request for Qualifications (RFQ) for a facility to serve as a new Sheriff’s Area 2 substation in the Southeastern area of the County. The RFQ was issued on May 26, 2015 and staff is in the process of evaluating the proposals. Approval of recommended action one will allow the Sheriff-Coroner to occupy the current substation until a decision has been made regarding the future site and the site is ready to occupy. If approved by your Board, it is expected that it will take approximately 12 months to identify a new location for the substation and construct and/or make any necessary improvements to the site. Approval of the recommended actions allows the Sheriff to continue to occupy the facility in case additional time is required to complete the process to occupy the future location.
Under the recommended First Amendment, the lease may be terminated as of any date during the renewal term by the County providing at least one hundred and eighty (180) days prior written notice to terminate to Lessor; the notice of termination may be provided either during the initial term or the renewal term either by the Director of Internal Services/Chief Information Officer or the Sheriff-Coroner. The rent increase from $10,000 to $12,000 per month results from negotiating a shorter term for the lease.
On August 21, 2015 the Facilities Planning Committee approved extending the lease and increasing the rent and recommends that your Board approve the amendment.
REFERENCE MATERIAL:
BAI #7, November 4, 2014
BAI #27, February 26, 2008, Agreement No #08-075
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - First Amendment to Lease Agreement #08-075
CAO ANALYST:
Jeannie Z. Figueroa