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Chief Administrative Office, Parks Division, recommending the Board:
1) Approve and authorize the Chair to sign Lease Agreement 155-L1511 with the George and Shirley Kesseler Limited Partnership to lease the real properties referred to as APNs 327-010-03 and 327-010-04 for the retroactive period of December 1, 2014 through November 30, 2019 for an annual lease payment to be received of $2,384.05 retroactively from December 1, 2014; and
2) Authorize the Purchasing Agent, or designee, to exercise the options to extend the lease term for (2) two additional (5) five year periods from December 1, 2019 through November 30, 2029 and to execute further documents relating to Lease Agreement 155-L1511, including future Options and Amendments contingent upon approval by County Counsel and Risk Management.
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DEPARTMENT RECOMMENDATION
Chief Administrative Office, Parks Division, recommending the Board:
1) Approve and authorize the Chair to sign Lease Agreement #155-L1511 with the George and Shirley Kesseler Limited Partnership to lease the real properties referred to as APNs 327-010-03 and 327-010-04 for the retroactive period of December 1, 2014 through November 30, 2019 for at an annual lease payment to be received of $2,384.05 retroactively from December 1, 2014; and
2) Authorize the Purchasing Agent, or designee, to exercise the options to extend the lease term for (2) two additional (5) five year periods from December 1, 2019 through November 30, 2029 and
to execute further documents relating to Lease Agreement #155-L1511, including future Options and Amendments contingent upon approval by County Counsel and Risk Management.
DISCUSSION / BACKGROUND
In 1996, the Sacramento-Placerville Transportation Joint Powers Authority (SPTC-JPA) acquired title to the Southern Pacific railroad right of way (transportation) corridor (SPTC). The SPTC-JPA by written agreement, delegated the management of the portion of the right of way located within El Dorado County's jurisdiction to the County.
The County has been operating under lease agreement #151156 dated July 26, 1966 with the lessee as a “Consensual Holdover Tenant” on a year-to-year basis. The County is in the process of trying to update all the lease agreements along the SPTC corridor to align with the standard County lease format. While this lease agreement is retroactive, the County has been sending invoices and receiving annual payments based on the original operating lease agreement.
This particular property is leased to the Lessee for the sole purpose of conducting business and activities related to support Sierra Door & Supply, Inc.
ALTERNATIVES
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Chief Administrative Office, Parks Division
CAO RECOMMENDATION
Chief Administrative Office concurs with the recommendation.
FINANCIAL IMPACT
There is no impact on Net County Cost. Lease revenues were included in the FY 2016-17 budget and will be included in future year budgets.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1. Chair to sign Lease Agreement #155-L1611.
2. Clerk of the Board to send two (2) original agreements to Facilities for processing.
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Russell Fackrell, Facilities Manager
Vickie Sanders, Parks Manager