DATE: October 5, 2021
TO: Board of Supervisors
SUBMITTED BY: Margaret Mims, Sheriff-Coroner-Public Administrator
Robert W. Bash, Director of Internal Services, Chief Information Officer
SUBJECT: Third Amendment to Lease Agreement for Sheriff’s Substation
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute Third Amendment to Lease Agreement No. 08-075 with Land Management Opportunities, LLC for 8,480 square feet of office space and adjacent parking at 5717 E. Shields, Fresno, CA for the Sheriff’s substation, to extend the lease term to month to month, with annual rent of $144,000.
REPORT
There is no increase in Net County Cost associated with the recommended action, which will allow the existing fourteen year lease to continue on a month-to-month basis past the end of the current lease term of December 31, 2021. Approval of the recommended action will allow operations to continue as the Sheriff’s Area 2 Substation relocates to the new substation site. The new substation is anticipated to be completed in early 2022. The Sheriff anticipates only requiring the leased space until approximately February 2022. This item pertains to a location in District 5.
ALTERNATIVE ACTION(S):
There are no viable alternative actions. The Sheriff will continue to occupy the facility until operations relocate to the new site.
FISCAL IMPACT:
There is no additional Net County Cost associated with the recommended action. The Sheriff will continue to pay rent at the current rate of $12,000 per month, with annual rent of $144,000. Sufficient appropriations and estimated revenues are included in the Sheriff Org 3111 FY 2021-22 Adopted Budget and will be included in future budget requests.
DISCUSSION:
The Sheriff’s substation has been located at 5717 E. Shields, Fresno, CA 93727 since 1988 and serves the eastern part of the County.
On February 26, 2008, the Board approved Lease 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 (January 1, 2008 through December 31, 2015) at the rent cost of $10,000 per month, with annual rent of $120,000.
On December 15, 2015, the Board approved the First Amendment to Lease Agreement No. 08-075 with Land Management Opportunities, LLC to extend the lease term to December 31, 2016, with 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, with annual rent of $144,000.
On April 17, 2018, the Board approved the Second Amendment to Lease Agreement No. 08-075 to increase the total amount of optional one-year renewal term to five years and extend the term to December 31, 2021, with no change to the rent cost per month.
The recommended amendment will extend the lease term on a month-to-month basis following December 31, 2021 to allow the Sheriff’s operations time and flexibility to transition to the new site without disruption. The new substation is anticipated to be completed in early 2022, with furniture and equipment delivered in the first few months of the year. The Sheriff anticipates only requiring the space at the current substation through February 2022, though unanticipated delays could push that date out one or more months.
REFERENCE MATERIAL:
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 - Third Amendment to Lease Amendment No. 08-075
CAO ANALYST:
Sonia M. De La Rosa