Title
Approve and authorize the Contracts/Purchasing Officer to execute a two year Lease Agreement, effective on or about June 1, 2015, with Gloria Clinton Trustee of the Marital Trust under The Bobby J. Clinton and Gloria M. Clinton Trust Agreement, dated May 12, 1995, for approximately 2,400 rentable square feet of space located at 234 Capitol Street, Units 3 & 4, in Salinas, California, for use by the District Attorney’s Office, Criminal Division.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Contracts/Purchasing Officer to execute a two year Lease Agreement, effective on or about June 1, 2015, with Gloria Clinton Trustee of the Marital Trust under The Bobby J. Clinton and Gloria M. Clinton Trust Agreement, dated May 12, 1995, for approximately 2,400 rentable square feet of space located at 234 Capitol Street, Units 3 & 4, in Salinas, California, for use by the District Attorney’s Office, Criminal Division;
b. Authorize the Auditor-Controller to make lease payments of $2,880 per month and in accordance with the terms of the Lease Agreement; and
c. Authorize the extension of the Lease Agreement for an additional, two, one- year periods under the same terms and conditions and, minor revisions to the Lease Agreement if deemed to be in the best interests of the County by the Contracts/Purchasing Officer.
SUMMARY:
The District Attorney’s Office, Criminal Division requires additional office space to alleviate severe overcrowding in their main office at 230 Church Street, Building 3 in Salinas. Approval of the proposed Lease Agreement will provide an additional 2,400 square feet to accommodate six (6) investigators and two (2) support staff. The Lease term will commence on or about June 1, 2015 and end on or about May 30, 2017. The monthly rent is $2,880 per month and subject to an annual rent adjustment of 1%. The proposed Lease provides for two (2), one-year extension options under the same terms and conditions.
DISCUSSION:
The Landlord has agreed to perform numerous improvements within the occupied space including new carpet, paint, access security enhancements, telecommunications/data infrastructure and network security prior to occupancy and, to waive the first month’s rent to help minimize move-in costs. Telecommunications/data infrastructure and network security within the occupied space will cost an estimated $10,000, of which will be amortized at a rate of 5% interest within the initial term of the Lease Agreement and added to the monthly rent. The County will need to install a microwave radio link to the facility to meet County standards at an estimated cost of $8,200.
A “Termination by County” clause (without penalty) is incorporated in the Lease Agreement that would allow the consolidation of the County of Monterey District Attorney’s Office operations into one (1) cohesive space in or around the Salinas Courthouse area when space becomes available. Occupancy of the identified facility offers proximity, access, and is cost effective
OTHER AGENCY INVOLVEMENT:
The Department of Public Works facilitated negotiations regarding the Lease Agreement and assisted with the development of this report. The Office of the County Counsel has reviewed and approved the Lease Agreement as to form and legality and, Risk Management has approved it as to insurance and indemnification provisions.
FINANCING:
There is no financial impact to the General Fund. Sufficient funds are available in both FY 2014-15 and FY 2015-16 District Attorney (2240) Budget, Fund 001 Unit 8063, Appropriation Unit DIS001. On-going occupation of the leased premises and future extensions of the Lease Agreement will be based on the continued availability of funding. The first-year leasing cost will amount to $48,025 including taxes, insurance, common area maintenance, water, trash removal, and telecommunications/data infrastructure and network security amortized payments ($5,265) and microwave radio link costs ($8,200). The initial term leasing costs will be subject to a 1% increase at the end of each lease anniversary year.
Prepared by: George Salcido, Real Property Specialist, Ext. 4859
Bruce Suckow, Finance Manager II, Ext. 5259
Approved by: Dean D. Flippo, District Attorney, Ext. 5470
Attachments:
Lease Agreement
Location Map