DATE: September 13, 2016
TO: Board of Supervisors
SUBMITTED BY: Margaret Mims, Sheriff-Corner
Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Retroactive Lease Agreement for Office Space with Fresno-Air LTD
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a retroactive five-year Lease Agreement, July 1, 2016 through June 30, 2021, with Fresno-Air LTD for office and warehouse space for the Sheriff-Coroner’s Office ($448,196).
REPORT
The recommended action will lease office and warehouse space for the Sheriff-Coroner for five years. The rent will be $6,630 per month with office space at $4,525 ($.81 per square foot) and warehouse space at $2,105 per month ($.40 per square foot) for the first year and increases 2.5% each year thereafter. Janitorial and utility services will be paid by the County.
ALTERNATIVE ACTION(S):
The County may choose to not renew the lease and seek an alternate location for the Sheriff-Coroner’s operations. The search for a new space will be lengthy and require a month to month lease at the current location until an alternate space is located.
RETROACTIVE AGREEMENT:
The drafting of the lease renewal began in January of 2016. Due to extended review of estimates for proposed tenant improvements, the recommended agreement was not reached by the parties until August 16, 2016.
FISCAL IMPACT:
The Net County Cost for the Lease renewal will be $6,630 per month, an increase of $162 per month, as a result of the rent increasing from $6,468 to $6,630 per month. The rent will increase 2.5% annually each July 1 during the lease term. Tenant improvements of up to $30,000 for minor improvements to support operations. The County cost associated with the recommended action will be $448,196 for the five-year lease term. Additionally, janitorial and utility costs will be the responsibility of the County. Sufficient appropriations for the current year are included in the FY 2016-17 Sheriff-Coroner’s Org 3111 Adopted Budget and will be included in future departmental budget requests.
DISCUSSION:
On June 21, 2011 your Board approved Agreement 11-430 with Air-Fresno LTD to lease office and warehouse space for the Sheriff’s Office. The recommended action will renew the lease for the Sheriff-Coroner’s operations at the same location. The property owner will replace carpet, paint and make other improvements at no cost to the Sheriff-Coroner.
Additional tenant improvements consisting of the build-out of minor improvements to support operations, all of which shall be subject to the review and written approval by the Fresno County Sheriff - Coroner and the Director of Internal Services, and in no event shall the amount for such tenant improvements exceed $30,000.00.
REFERENCE MATERIAL:
BAI #19 - June 21, 2011
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Lease Agreement
CAO ANALYST:
Jeannie Figueroa