Title
Sheriff’s Office recommending the Board:
1) Approve and authorize the Purchasing Agent to exercise Option 1 of Lease Agreement 5927 with EDH Waterfront LLC for the lease of space housing the El Dorado Hills substation, for an additional two year period from May 1, 2025 to April 30, 2027 for $1,334.92 per month, increasing the amount to $80,038.08; and
2) Authorize the Purchase Agent to exercise further lease extensions contingent on approval from County Counsel and Risk.
FUNDING: General Fund.
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DISCUSSION / BACKGROUND
The Sheriff's Office (SO) has been leasing space in El Dorado Hills for a substation since 1997. In May 2010, the SO relocated to the leased location at 4354 Town Center Blvd., Suite 112, saving approximately $12,000 in monthly rent since there were zero monthly rental costs associated with the lease. The initial Lease was for the period May 1, 2010 through April 30, 2013, Amendment I extended the term to April 30, 2014 and Amendment II extended the term to April 30, 2015 on contract 5927.
On March 24, 2015, Amendment III extended the term to April 30, 2017, and kept the rent at $0 per month but increased operating expenses to a flat rate of $850 per month from May 1, 2015 through April 30, 2016, and a flat rate of $875 per month from May 1, 2016 through April 30, 2017.
Amendment IV amended the term of lease for a two-year renewal from May 01, 2017 to April 30, 2019 and set rent payments in the amount of zero dollars for the term, but increased operating expenses to a flat rate not to exceed $900 per month from May 1, 2017 through April 30, 2018, and $930 per month from May 1, 2018 through April 30, 2019.
Effective July 25, 2018, EDH Waterfront assumed all the obligations, covenants, and conditions, and/or liabilities of this lease agreement. Amendment V updated all references to the Lessor from Town Center East, LP to EDH Waterfront LLC, and updated the Payment and Notices sections to reflect this change in ownership. Additionally, Amendment V also changed the Premise section to reflect the Sheriff’s Office vacating Suite 112 and moving to Suite 113, effective September 1, 2018.
Amendment VI extended the lease to extend the term from May 1, 2019 to April 30, 2022, and set the rent payments at zero dollars, and increased operating expenses to a flat rate of $2,083.33 per month from May 1, 2019 through April 30, 2020, a flat rate of $1,250 per month from May 1, 2020 through April 30, 2021, and a flat rate of $1,287.50 per month from May 1, 2021 through April 30, 2022. The Sheriff's Office paid a more expensive operating expenses fee in the first year of the lease to account for space improvement costs paid for by the EDH Waterfront, LLC.
On March 8, 2022, with Legistar file 22-0270, the Board approved Agreement 5927 to begin on May 1, 2022 for a three-year term at $1,320.41 per month. The agreement included two Options to extend the agreement for two years each.
The Sheriff's Office presence in El Dorado Hills has increased community relations, transparency, and overall public safety. It is the Sheriff's Office hope that these relationships continue to flourish.
The approval of Option 1 will increase the cost to $1,334.92 for an additional two-year term.
ALTERNATIVES
The Board could choose to not extend the lease, removing a prominent presence of the SO in El Dorado Hills. The substation provides staff and volunteers a location to work and to interact with the community.
PRIOR BOARD ACTION
04/24/2010 Legistar file 09-1502 - The Board approved the original lease agreement. 04/23/2013 Legistar file 13-0337 - The Board approved Amendment I to the lease agreement.
04/29/2014 Legistar file 13-0337 - The Board approved Amendment II to the lease agreement.
03/24/2015 Legistar file 13-0337 - The Board approved Amendment III to the lease agreement.
04/11/2017 Legistar file 13-0337 - The Board approved Amendment IV to the lease agreement.
08/28/2018 Legistar file 18-1271 - The Board approved Amendment V to the lease agreement.
04/02/2019 Legistar file 19-0385 - The Board approved Amendment VI to the lease agreement.
03/08/2022 Legistar file 22-0270 - The Board approved Lease Agreement 5927.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel has reviewed and approved this agreement.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
No change to Net County Cost. These expenses are budgeted in the Sheriff's Office annual operating budget and will continue to be requested in following years. The lease contains a provision for termination by the County if no funds are appropriated for this purpose
CLERK OF THE BOARD FOLLOW UP ACTIONS
Please return two fully executed copies back to Facilities for distribution.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Undersheriff Bryan Golmitz