Title
General Services Department recommending Chairman be authorized to sign retroactive Amendment I to Lease Agreement 255B-L0111 with Star Lake Investments increasing the lease amount to $17,393 per month and extending the term commencing June 1, 2007 through December 31, 2012, with option for two additional five year terms thereafter, to increase the square footage by 3,745 for lease space located at 981 Silver Dollar Blvd. in South Lake Tahoe for the Human Services Department.
RECOMMENDED ACTION: Approve.
FUNDING: State and Federal funds.
Body
BUDGET SUMMARY: |
|
|
Total Estimated Cost |
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$208,716.00 |
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|
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Funding |
|
|
Budgeted |
$208,716.00 |
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New Funding |
$ |
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Savings |
$ |
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Other |
$ |
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Total Funding Available |
$208,716.00 |
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Change To Net County Cost |
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$ |
Fiscal Impact/Change to Net County Cost: The Department of Human Services has advised General Services that funds are included in its FY 2007/08 budget.
Background: The County of El Dorado has leased space for the Department of Human Services for the past 20 years.
Reason for Recommendation: On January 14, 2007 the Department of Human Services and Department of Mental Health were displaced due to a flood that occurred in the 981 Silver Dollar Building in South Lake Tahoe. The Board of Supervisors approved several temporary leases to relocate the displaced staff during the repair of the building. While the building was being repaired the Mental Health Department relocated to a building that serves their increased space requirements and will not be moving back into the 981 Silver Dollar Blvd., in South Lake Tahoe.
The Human Services Department has expressed their need for additional space due to the increased community demands and growth of the department in the past 15 years. To accommodate this need and by agreeing to an extension to the lease, the General Services Department was able to negotiate and prepare this amendment to allow the department to occupy the entire building, which includes an additional 3,745 square feet of the top floor, at a cost equivalent to that of the space previously occupied by the two departments without an additional cost for previously designated common space. Therefore, the purpose of this amendment is to increase the square footage commencing June 1, 2007 and also extend the term of the lease through December 31, 2012 with options for two additional five year terms. The lease payment shall be in the amount of $17,393 per month. Although the building consists of 10,498 square feet, the County is only obligated to pay for 7,581 square feet. The remaining 2,917 square feet is common area and there will be no charge. The programs that will be housed in this building include Child Protective Services, Adult Protective Services, Employment Services Staff and the WIA (Workforce Investment Act) staff.
This lease is effective retroactive to June 1, 2007. Processing was delayed primarily due to negotiations with the landlord to obtain use of the entire facility by Human Services without an additional cost for the square footage that constitues the common area. While this common area had not previously been included in the cost when the facility was shared by Human Services and Mental Health, the landlord initially intended to charge Human Services for this space as sole occupant. Another factor contributing to the delay was the need to expand repairs, recognized mid-way during the process, which were necessary to accommodate the State's mandate to provide protected space to house specialized IT equipment for their programs and the approval process required to obtain State funds for this expense.
Upon approval of this Amendment I to Lease Agreement #255B-L0111 by all parties referenced, Lease Agreement #254-L0111 shall be terminated.
Action to be taken following Board approval: Board clerk will forward to General Services a fully executed original copy of Amendment I to Lease Agreement #255B-L0111 for distribution and administration.
Contact:George Sanders
Concurrences: County Counsel and Risk Management have approved the lease and a copy is on file in the Board Clerk's Office.