Title
a. Approve and authorize the Contracts/Purchasing Officer to execute Amendment No. 2 to extend Lease Agreement (No. A-11760) for two (2) years, effective January 1, 2016 through December 31, 2017, with B & A Farahmand Family Trust Dated November 8, 2006 for 12,011 square feet of space located at 1370-B South Main Street in Salinas, California, for use by the Monterey County Elections Department; and
b. Direct the Auditor-Controller to make lease payments of $31,575.00 per month and in accordance with the terms of Amendment No. 2 - Two Year Extension of Lease Agreement (Amendment No. 2).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Contracts/Purchasing Officer to execute Amendment No. 2 to extend Lease Agreement (No. A-11760) for two (2) years, effective January 1, 2016 through December 31, 2017, with B & A Farahmand Family Trust Dated November 8, 2006 for 12,011 square feet of space located at 1370-B South Main Street in Salinas, California, for use by the Monterey County Elections Department; and
b. Direct the Auditor-Controller to make lease payments of $31,575.00 per month and in accordance with the terms of Amendment No. 2 - Two Year Extension of Lease Agreement (Amendment No. 2).
SUMMARY/DISCUSSION:
The Monterey County Elections Department has operated out of this leased facility located at 1370-B South Main Street, Salinas since 1991. On December 16, 2014 your Board approved Amendment No.1- One Year Extension of Lease Agreement extending the lease through December 31, 2015. At that time, construction of the new Elections Department space in the Schilling Place Facility was anticipated to be complete in Fall of 2015 with move-in shortly thereafter. This initial time frame was the preferred date for the Elections Department as it afforded time to prepare for activities in the presidential election year.
In January of 2015, the Schilling Facility Utilization Project was created to define the most efficient and effective way for County occupancy of the former Capital One Facility. The core project group, consisting of staff from the County Administrative Office and the Resource Management Agency, determined that the Elections Department move is feasible only if it is included in the overall space planning and design for the 1441 Schilling Place, North and South Buildings. Construction of various County Department spaces identified to relocate to the Schilling Place Facility is anticipated to be completed in Spring of 2017.
In light of the Elections Department new timeline for physical relocation, the Landlord has agreed to extend the lease for an additional two (2) years, effective January 1, 2016 through December 31, 2017 to allow sufficient time for the Elections Department's transition into the Schilling Place Facility while meeting its electoral obligations scheduled throughout 2017.
Due to the accommodating nature of the leasing relationship, whereby the Landlord is willing to forego committing the 1370-B South Main Street facility to a replacement occupant (by lease or purchase contract) until after December 31, 2017, the premium rent during the extended period will remain the same at $31,575.00 per month. Rent shall be reduced to $27,875.00 per month, or a lease buy-out agreement to facilitate a replacement occupant can be negotiated, if and when the facility is vacated by the Elections Department between July1, 2017 through December 31, 2017.
OTHER AGENCY INVOLVEMENT:
The Department of Public Works facilitated the development of Amendment No. 2 - Two Year Extension of Lease Agreement, and assisted with the development of this report. The Office of the County Counsel has reviewed and approved the proposed extension of the Lease Agreement as to form and legality.
FINANCING:
There is no additional impact to the General Fund. Sufficient funds are available in the FY 2015-16 Monterey County Elections Department Budget Unit 1410, Fund 001. Twelve month leasing costs will amount to $378,900 including property assessments, insurances, maintenance, repair, janitorial, and utility costs.
Prepared by: Approved by:
_______________________________ ___________________________
Gina M. Martinez Claudio E. Valenzuela, REO
Assistant Registrar of Voters Registrar of Voters
Dated: May 14, 2015
Attachments:
1370-B S Main St Amnd 2
1370-B S Main St Amnd 1
1370-B S Main St Lease
1370-B S Main St Location Map