Title
a. Approve and authorize the Contracts/Purchasing Officer to execute a three year Lease Agreement, effective retroactively on September 1, 2012, with 417 Salinas Road, LLC, for approximately 2,848 rentable square feet of space located at 417-C Salinas Road, Watsonville, California (Monterey County), for use by the Agricultural Commissioner's Office;
b. Authorize the Auditor-Controller to make lease payments of $2,420 per month and in accordance with the terms of the agreement; and
c. Authorize the extension of the Lease Agreement for one additional two-year periods under the same terms and conditions, and make minor revisions to the Lease Agreement if deemed by the Contracts/Purchasing Officer to be in the best interests of the County.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Contracts/Purchasing Officer to execute a three year Lease Agreement, effective retroactively on September 1, 2012, with 417 Salinas Road, LLC, for approximately 2,848 rentable square feet of space located at 417-C Salinas Road, Watsonville, California, for use by the Agricultural Commissioner's Office;
b. Authorize the Auditor-Controller to make lease payments of $2,420 per month and in accordance with the terms of the agreement; and
c. Authorize the extension of the Lease Agreement for one additional two-year periods under the same terms and conditions, and make minor revisions to the Lease Agreement if deemed by the Contracts/Purchasing Officer to be in the best interests of the County.
SUMMARY/DISCUSSION:
Approval of the Lease Agreement will provide for occupancy of approximately 2,848 rentable square feet of space to be used by the Agricultural Commissioner's Office. The lease term will retroactively commence on September 1, 2012, and expire on August 31, 2015. Commencement rent will be $2,420 per month. The Lease Agreement provides for one, two-year extension option under the same terms and conditions including annual rental adjustments.
The Agricultural Commissioner's Office has occupied the space at 417-A since April 2005 and has long maintained an office in Pajaro to serve the agricultural community in North County. Availability of suitable facilities in the area is very limited. Approximately one-quarter of the Department's clients are served by this branch office, including many small growers most in need of services and large shippers needing export certification of high-value crops.
The property owner has agreed to replace carpeting, perform interior painting, and perform ADA improvements at a cost not to exceed $7,500. A "Termination by County" clause is incorporated in the Lease Agreement.
OTHER AGENCY INVOLVEMENT:
The Department of Public Works facilitated the negotiations of 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 indemnity
FINANCING:
There is no financial impact to the General Fund. Sufficient funds are available in FY 2012-13 Agricultural Commissioner's Office Budget, Fund 001, Unit 2810-8001, and Appropriation Unit AGR001. 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 $29,040, excluding janitorial and utility services.
Prepared by: ___________________________________
Bob Roach, Assistant Ag Commissioner, 759-7325
Approved by: ___________________________________
Eric Lauritzen, Ag Commissioner, 759-7325
Attachments:
Lease Agreement
Location Map