To: BOARD OF SUPERVISORS
From: Executive Office
Meeting Date: November 5, 2024
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Department Contact: |
Steve Dunnicliff |
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707-463-4441 |
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Department Contact: |
Tim Hallman |
Phone: |
707-463-4441 |
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Item Type: Consent Agenda |
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Time Allocated for Item: N/A |
Agenda Title:
title
Approval of Lease Amendment to the Lease of 474 E. Valley Street (Willits), Suite A, to the State of California Department of General Services for Use as Office Space by the California Department of Forestry and Fire Protection (CalFire) to Expand the Lease to Include the Entire Building, Increase the Monthly Rent to $12,960 (to be increased by 2% annually), Effective November 6, 2024
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Recommended Action/Motion:
recommendation
Approve Lease amendment to the Lease of 474 E. Valley Street (Willits), Suite A, to the State of California Department of General Services for use as office Space by the California Department of Forestry and Fire Protection (CalFire) ) to expand the Lease to include the entire building, increase the monthly rent to $12,960 (to be increased by 2% annually); and authorize Chair to sign same.
End
Previous Board/Board Committee Actions:
Adoption of Ordinance No. 4338, on June 16, 2015, which amended Chapter 2.32 - Purchasing Agent in its entirety. Section 2.32.110 in part provides that the Purchasing Agent may enter into certain leases of County real property that are under $5,000 in monthly rent and for a duration not to exceed 10 years.
Summary of Request:
To account for additional staffing needs in Mendocino County, in 2023 CalFire approached the County regarding leasing space at 474 E. Valley Street. The Purchasing Agent negotiated a lease of 2,300 square feet of office space at that location, to the State Department of General Services for CalFire’s use. The lease term began February 1, 2024, and runs through January 31, 2032. The rent for the space is currently $3,450 per month, and increases by two percent (2%) per year through the end of the lease term (reaching a rental amount of $3,962.97 per month in the final year). Pursuant to the authority provided in Section 2.32.100 of Mendocino County Code, the Purchasing Agent executed the lease on behalf of the County after following the notice requirements of that section.
At this time, CAL FIRE is seeking to lease the entirety of 474 E. Valley Street, which is approximately 8,640 square feet in total. Staff has negotiated a Lease Amendment with the Department of General Services, with an effective date of November 6, 2024, which would amend the existing lease to include the entire building. The new monthly rent for the space will start at $12,960, which is prorated for November 2024 to $10,800. The lease duration would remain the same. No tenant improvements are being requested by the State, and the State would become responsible for all utilities to the building. The Lease Amendment also specifies that the County will continue to have access to a telecommunications room within the building.
Because the rental amount of the Lease Amendment exceeds the authority of the Purchasing Agent, it is being brought to the Board for review and approval. Government Code section 25365 authorizes the Board to, by a four-fifths vote, grant, convey, quitclaim, assign, or otherwise transfer to the state any real property, or interest therein, owned by the County, upon the terms and conditions agreed upon and without complying with any other provisions of the Government Code. Section 25365 requires noticed to be published once at least one week in advance of any action to approve the lease; please see the attached proof of publication from the Ukiah Daily Journal, showing the notice was published on October 27, 2024.
The County does not have any present need for office space at 474 E. Valley Street, as it has been consolidating staff offices into other buildings, including the Willits Justice Center.
Alternative Action/Motion:
Do not approve lease amendment; provide direction to staff
Strategic Plan Priority Designation: An Effective County Government
Supervisorial District: District 3
Vote Requirement: 4/5ths
Supplemental Information Available Online At: N/A
Fiscal Details:
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source of funding: State revenue for lease payment |
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current f/y cost: N/A |
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budget clarification: This is a revenue agreement. The County is currently receiving $3,450 per month from CalFire for the space they are occupying at 474 E. Valley St. This agreement will increase that monthly rental income to $12,960 per month with 2% annual increases. In addition to the lease payments, the County will no longer be paying for utilities at this location and so there will be operational savings. |
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annual recurring cost: N/A |
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budgeted in current f/y (if no, please describe): No |
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revenue agreement: Yes |
AGREEMENT/RESOLUTION/ORDINANCE APPROVED BY COUNTY COUNSEL: Yes
CEO Liaison: Darcie Antle, CEO
CEO Review: Yes
CEO Comments:
FOR COB USE ONLY
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Executed By: Atlas Pearson, Senior Deputy Clerk |
Final Status: Approved |
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Date: November 5, 2024 |
Executed Item Type: Agreement |
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Number: 24-191 |
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