Title
a. Approve and authorize the Contracts/Purchasing Officer to execute a non- standard three (3) year Lease Agreement, effective November 1, 2016, with the Regents of the University of California for approximately 1,450 1,397 square feet of office space located at 3180 Imjin Road, Suite 157, Marina, California, for use by the Workforce Development Board to provide training and support to potential employees of area employers;
b. Authorize the Auditor-Controller to make Lease payments of $2,334 $2,207 per month for Lease Year 1, $2,404.54 $2,273.00 for Lease Year 2, and $2,476.67 $ 2,341.00 for Lease Year 3, as may be adjusted in accordance with the terms of the Lease Agreement.
(Changes read into the record during Additions & Corrections).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Contracts/Purchasing Officer to execute a non- standard three (3) year Lease Agreement, effective November 1, 2016, with the Regents of the University of California for approximately 1,450 1,397square feet of office space located at 3180 Imjin Road, Suite 157, Marina, California, for use by the Workforce Development Board to provide training and support to potential employees of area employers;
b. Authorize the Auditor-Controller to make Lease payments of$2,334 $2,207 per month for Lease Year 1, $2,404.54 $2,273 for Lease Year 2, and $2,476.67 $ 2,341 for Lease Year 3, as may be adjusted in accordance with the terms of the Lease Agreement.
(Changes read into the record during Additions & Corrections).
SUMMARY:
Approval of the proposed non-standard Lease Agreement will provide for occupancy of approximately 1,450 square feet of space to be used by the Workforce Development Board for the purpose of facilitating training and support to area employers and job seekers. The Lease term will commence on November 1, 2016 and expire on September 30, 2019. First Lease year Rent will be $2,334 per month, $2,404.54 for Lease Year 2, and $2,476.67 for Lease Year 3. The Rent includes Electricity and Common Area Expenses. This Lease will also provide for use of a large conference room which within the Common Area. County Information Technology infrastructure installation costs are estimated not to exceed $6,500.
DISCUSSION:
The Workforce Development Board requests authorization to enter into a Lease at 3180 Imjin Road, Marina, CA, Suite 157. The Workforce Development Board has subleased a 480 square foot space from the Monterey County Business Council in Suite 102 within the same facility since December 1, 2015. While the success of this smaller location is exciting, the need for space has grown. The new location will provide roughly 3 times the space that is currently enjoyed and will allow the Workforce Development board to expand service offerings at this location. This facility will be used by the Workforce Development Board to provide an Employment Center laboratory, staff cubicles, America’s Job Center services, Ambassador’s for Peace program services to youth ages 16-24, and Adults/Dislocated workers services with priority of service to veterans and their eligible spouses.
The University of California has insisted on the use of their Lease template, thus the Non-Standard Lease Agreement. County staff negotiated lease terms with the University of California to minimize risk to the County to the degree possible and recommend that the Board approve this non-standard Lease.
The sublease for the Workforce Development Board’s current site in Suite 102 may be terminated upon 30 days notice to the Sublessor without penalty.
OTHER AGENCY INVOLVEMENT:
The Resource Management Agency facilitated negotiations regarding the Lease Agreement, and assisted with the development of this report. County Counsel cannot approve the non-standard terms of the University of California lease. Risk Management has approved it as to insurance and indemnification provisions.
FINANCING:
There is no additional impact to the General Fund. Sufficient funds are available in the FY 2016-17 Economic Development Budget Unit 1070, Fund 8427. On-going occupation of the subleased premises will be based on the continued availability of funding. The first twelve (12) month leasing cost will amount to $28,008. County Information Technology infrastructure installation costs are estimated not to exceed $6,500.
Prepared by: Approved by:
____________________________ ______________________________
Joyce Aldrich Nicholas E. Chiulos
Executive Director Assistant County Administrative Officer
Workforce Development Board Monterey County Administrative Office
759.6644 755.5145
ATTACHMENTS:
Lease Agreement with Regents of the University of California