DATE: June 5, 2018
TO: Board of Supervisors
SUBMITTED BY: Margaret Mims, Sheriff-Coroner
Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Lease Agreement for Sheriff-Coroner’s Area 3 Substation
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a Lease Agreement with Pamela J. Prieto for office and warehouse space located in Selma, California for use by the Sheriff-Coroner’s Area 3 Substation, effective July 1, 2018 through June 30, 2028 not to exceed ten consecutive years, consisting of a five-year base term and five optional one-year renewal terms, total not to exceed $1,229,005.
REPORT
The recommended action will renew the lease for the Area 3 Substation for a period of ten years which includes a five-year base Lease Agreement and five one-year optional renewals. The space includes a total of approximately 16,031 square feet of which 7,232 square feet are office space and 8,799 square feet of warehouse space. Additional fenced parking space is included. The rent will increase from $9,133 to $9,353 per month which is a $220 monthly increase in Net County Cost and the rent will increase 2% per year for the term of the lease. This item pertains to locations in District 4.
ALTERNATIVE ACTION(S):
There are no viable alternative actions at this time.
FISCAL IMPACT:
The Net County Cost for the lease renewal will be $9,353 per month, an increase of $220 per month as a result of the rent increasing from $9,133 to $9,353 per month. The rent will increase 2% annually each July 1 during the lease term. As part of the recommended increase in rent, the property owner will maintain the air conditioning and heating units, plumbing systems, electrical systems, roof, landscape, fencing, and parking areas. In addition, the property owner will maintain and replace carpet and flooring, and interior and exterior paint as needed. The County cost associated with the recommended action will be $1,229,005 for the ten year lease term. Sufficient appropriations will be included in the Sheriff-Coroner’s FY 2018-19 requested budget for Org 3111 and will be included in future budget requests.
DISCUSSION:
On August 12, 2008, your Board approved Agreement No. 08-410 with Seth Abajian to renew the lease for the Sheriff-Coroner’s Area 3 Substation located in Selma, California for ten years from July 1, 2008 through June 30, 2018.
Approval of the recommended action will renew the lease for the Sheriff-Coroner’s Area 3 Substation located in Selma, California for an initial five year term beginning July 1, 2018, with five optional one-year renewals. The Area 3 Substation serves the Southern part of Fresno County and approximately 80 staff are located at the substation.
REFERENCE MATERIAL:
BAI #36, August 12, 2008
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Lease Agreement L-065 Area 3 Substation
CAO ANALYST:
Jeannie Z. Figueroa