Title
a. Approve and authorize the Contracts/Purchasing Officer to execute Amendment No. 2 to extend Lease Agreement No. A-07540, dated October 16,1997, effective July 1, 2018, with Salinas Airport Business Park, and General Partnership until June 30, 2025 for 16,353 square feet of general office; and
b. Authorize the Auditor/Controller to make monthly Lease payments of $28,617.75 in accordance with the terms of AMENDMENT 2 to said Lease Agreement.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Contracts/Purchasing Officer to execute AMENDMENT 2 to extend Lease Agreement No. A-07540, dated October 16, 1997, effective July 1, 2018, with Salinas Airport Business Park, and General Partnership until June 30, 2025 for 16,353 square feet of general office; and
b. Authorize the Auditor/Controller to make monthly rent payments of $28,617.75 in accordance with the terms of AMENDMENT 2 to said Lease Agreement.
SUMMARY:
AMENDMENT 2 to Lease Agreement A-07540 will provide for the Child Support Services Department (CSS) to continue to operate at 752 LaGuardia for an additional seven (7) years. AMENDMENT 2 will reduce the CSS footprint from 25,750 square feet to 16,353 square feet, effective July 1, 2018, and reduce the corresponding monthly rent payments from $47,585.23 to $28,617.75 per month resulting in a savings of $227,609.76 per year not including anticipated reductions in utility costs, and janitorial costs. AMENDMENT 2 will also include a reduction in the cost per square foot from $1.85 to $1.75 per square foot. Additionally, AMENDMENT 2 to said Lease Agreement will include no rent escalations for the remaining term of said Lease, resulting in savings over the long term, and reducing administrative time adjusting rents each year. The existing Lease Agreement A-07540 provides for an annual Consumer Price Index (CPI) escalation. Lease Agreement No. A-07540 dated October 16, 1997 was approved by the County on...
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