Title
a. Approve and authorize the County Purchasing Agent or designee to execute a new ten (10) year Lease Agreement, commencing as of the “Lease Commencement Date” pursuant to ARTICLE 2-TERM, Section 2.1 Lease Term, between the County of Monterey (County) and Salinas Airport Business Center, a general partnership, for 42,094 square feet of general office space for use by the Department of Social Services located at 730 LaGuardia Street, Salinas, California, 93901; and
b. Authorize the Auditor-Controller’s Office to make monthly lease payments of $71,560 in accordance with the terms of the Lease Agreement; and
c. Approve and authorize the County Purchasing Agent or designee to execute any future amendments to the Lease Agreement where the amendments do not significantly change the terms of the Lease Agreement, subject to review and approval by the Office of the County Counsel-Risk Management as to legal form and by the Auditor Controller’s Office as to fiscal provisions.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the County Purchasing Agent or designee to execute a new ten (10) year Lease Agreement, commencing as of the “Lease Commencement Date” pursuant to ARTICLE 2-TERM, Section 2.1 Lease Term, between the County of Monterey (County) and Salinas Airport Business Center, a general partnership, for 42,094 square feet of general office space for use by the Department of Social Services located at 730 LaGuardia Street, Salinas, California, 93901; and
b. Authorize the Auditor-Controller’s Office to make monthly lease payments of $71,560 in accordance with the terms of the Lease Agreement; and
c. Approve and authorize the County Purchasing Agent or designee to execute any future amendments to the Lease Agreement where the amendments do not significantly change the terms of the Lease Agreement, subject to review and approval by the Office of the County Counsel-Risk Management as to legal form and by the Auditor Controller’s Office as to fiscal provisions.
SUMMARY:
The Department of Social Services (DSS) has occupied 42,094 square feet of general office space at 730 La Guardia Street, Salinas, California since October 1997 under a prior Lease Agreement (No. A-07545). DSS desires to remain at this location. Approval of the proposed new Lease Agreement (Agreement) will provide for a continued ten (10) year occupancy allowing important community services to continue within the same location.
DISCUSSION:
The Department of Social Services (DSS) has occupied 42,094 square feet of general office space at 730 La Guardia Street, Salinas, California since October 1997 under a prior Lease Agreement (No. A-07545). DSS desires to remain at this location. Approval of the proposed new Agreement will provide for a continued ten (10) year occupancy, which is anticipated to commence on or about November 1, 2026, and will include specified premises improvements to be completed by Salinas Airport Business Center, a general partnership (Lessor). The Department of Public Works, Facilities and Parks (PWFP) negotiated the commencement rent of $71,559.80 per month with an annual 2% increase at the commencement of year 2 of the term of the Agreement. PWFP also assisted with the program planning of DSS specified premises improvements. Lessor will be repairing all heating, ventilation and air conditioning (HVAC) units for the building that are beyond their useful life, installing new carpet, bathroom upgrades, elevator upgrades, and interior paint, among other improvements. The Agreement provides for two (2) additional three (3) year extension options under the same terms and conditions. The leased premises continue to provide DSS operations with needed general office space. The monthly rent is considered cost effective when compared to relocating to a similar facility in the Salinas area.
OTHER AGENCY INVOLVEMENT/COMMITTEE ACTIONS:
PWFP negotiated the proposed Agreement and assisted with the development of this report. The Office of the County Counsel-Risk Management has reviewed the proposed Agreement as to form and indemnification and insurance provisions. The Auditor-Controller’s Office has reviewed and approved the proposed Agreement as to fiscal provisions.
FINANCING:
Sufficient appropriations and estimated revenues for Fund 1001, Dept. 501007 are included in the Department of Social Services FY 2026-27 Adopted Budget. The Lessor will be responsible for costs associated with property taxes and assessments, fire insurance, major maintenance and structural repairs, as needed. The ongoing occupation of the leased premises and future extension of the Agreement will be based on the continued availability of funding.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
The recommended actions support the Board of Supervisors Strategic Plan Goals for Well-Being and Quality of Life and Safe and Resilient Communities by advancing objectives that enhance community connectivity, support long-term fiscal sustainability, and continue to provide services to the public.
The recommended actions support the following Board of Supervisors’ Strategic Plan Goals as indicated below:
Mark a check to the related Board of Supervisors Strategic Plan Goals:
X Well-Being and Quality of Life
X Sustainable Infrastructure for the Present and Future
X Safe and Resilient Communities
X Diverse and Thriving Economy
___ Administrative
Prepared by: Ivo N. Basor, PWFP Real Property Specialist, x6427
Prepared by: Sylvia Solis, DSS Administrative Operations Manager, x4483
Reviewed by: Becky Cromer, DSS Chief Financial Officer, x4404
Approved by: Roderick W. Franks, Director, x4430
Attachments:
Lease Agreement
Salinas Airport Business Center Partnership Agreement
The proposed Agreement is on file with Clerk of the Board as an attachment to this Board Report.