Title
a. Approve and authorize the Contracts/Purchasing Manager or the Contracts/Purchasing Supervisor to execute Lease Renewal and Amendment No. 1 to extend Standard Parking Lot Lease Agreement (No. A-12140) for two (2) years, effective retroactively from August 1, 2015 through July 31, 2017, with James I. and Barbara S. Miller, Trustees of the Miller Family Trust dated 2-2-92 for 50 parking spaces at 1168 Fremont Boulevard, Seaside, California for use by the Health Department’s Seaside Family Health Clinic;
b. Direct the Auditor-Controller to make lease payments in the amount of $2,375 per month and in accordance with the agreement, retroactively to August 1, 2015; and
c. Authorize the optional extension of the Lease Agreement for an additional period of two (2) years through July 31, 2017.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Contracts/Purchasing Manager or the Contracts/Purchasing Supervisor to execute Lease Renewal and Amendment No. 1 to extend Standard Parking Lot Lease Agreement (No. A-12140) for two (2) years, effective retroactively from August 1, 2015 through July 31, 2017, with James I. and Barbara S. Miller, Trustees of the Miller Family Trust dated 2-2-92 for 50 parking spaces at 1168 Fremont Boulevard, Seaside, California for use by the Health Department’s Seaside Family Health Clinic;
b. Direct the Auditor-Controller to make lease payments in the amount of $2,375 per month and in accordance with the agreement, retroactively to August 1, 2015; and
c. Authorize the optional extension of the Lease Agreement for an additional period of two (2) years through July 31, 2017.
SUMMARY/DISCUSSION:
The Health Department’s Seaside Family Health Clinic (SFHC) has been utilizing 30 parking spaces for employee parking under a lease with James I. and Barbara S. Miller, Trustees of the Miller Family Trust dated 2-2-92, since August 1, 2011. The lease expired on July 31, 2015, and SFHC continued to occupy the space on a month to month basis while global facility planning for SFHC operations was being considered. The Health Department desires to remain at this location. Approval of Amendment No. 1 will provide for the continued occupancy with twenty (20) additional spaces through July, 31, 2017. The monthly rent will be $2,375 per month from August 1, 2015 through July 31, 2016 and will increase to $2,500 per month from August 1, 2016 through July 31, 2017. Upon expiration of the extended two year term, the parties may renew the Lease, upon mutual consent, for an additional one (1) year term through July 31, 2018. Per Article 5 of Lease Agreement (No. A-12140), either party may terminate the agreement upon thirty (30) days written notice. The identified facility continues to provide SFHC operations with needed employee parking spaces. The additional twenty (20) parking spaces, for a total of fifty (50) parking spaces, will increase available patient parking located in and around the facility.
OTHER AGENCY INVOLVEMENT:
The Department of Public Works assisted with the development of this report. The Office of the County Counsel has reviewed and approved Amendment No.1 as to form and legality.
FINANCING:
There is no financial impact to the General Fund resulting from the approval of this Renewal and Amendment No. 1. Sufficient funds are available in the Health Department Clinic Services Bureau (001-4000-HEA007) FY 2015-16 Adopted Budget. On-going occupation of the leased premises and future extensions of the Lease Agreement will be based on the continued availability of funding. At $2,375 per month, the projected cost for the first year of the extended term is $28,500. At $2,500 per month, the projected cost for the second year of the extended term is $30,000. The property owner will be responsible for costs associated with property taxes and assessments, fire insurance and utilities.
Prepared by: Chris Le Venton, Facilities Manager, 4513
Approved by: Ray Bullick, Director of Health, 4526
Attachments:
Amendment No. 1 is on file with the Clerk of the Board.
Lease Agreement is on file with the Clerk of the Board.
Location Map is on file with the Clerk of the Board.