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Sheriff’s Office recommending the Board authorize the Chair to sign Amendment V to Agreement 198-L1011 (FENIX 3280) with Town Center East, L.P., updating the Lessor to EDH Waterfront, LLC, updating the Premises section, updating the Payment section, and updating the Notices section, for the term of May 1, 2010 through April 30, 2019, for the lease of property used as a substation in El Dorado Hills.
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 March 24, 2015, Amendment III extended the term to April 30, 2017. Amendment III kept the rent at zero ($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 198-L1011 for a two year renewal from May 01, 2017 to April 30, 2019 and set rent payments in the amount of zero dollars ($0) 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 updates all references to the Lessor from Town Center East, LP to EDH Waterfront LLC. The Amendment also updates the Payment and Notices sections to reflect this change in ownership. This Amendment also changes the premise section to reflect the Sheriff’s Office vacating Suite 112 and moving to Suite 113, effective September 1, 2018.
ALTERNATIVES
N/A
PRIOR BOARD ACTION
The Board approved the original lease agreement on April 27, 2010 on Legistar Item 09-1502. Amendments I, II, II, and IV were approved on April 23, 2013, April 29, 2014, March 24, 2015, and April 11, 2017, respectively, on Legistar Item 13-0337.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel and Risk Management approved this amendment.
CAO RECOMMENDATION
Approve as recommended.
FINANCIAL IMPACT
No Change to Net County Cost. These expenses are budgeted in the Sheriff’s Office’s annual operating budget, and will continue to be budgeted in following years.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Return two fully executed copies back to Facilities for distribution.
STRATEGIC PLAN COMPONENT
Public Safety
CONTACT
Undersheriff Randy Peshon