Title
Transportation Department recommending Chairman be authorized to sign Amendment II to Lease Agreement 131-L0311 with Raymond C. and Patricia J. Presgrave, reducing the amount of monthly rent payments from $7,095.52 to $4,500 per month commencing January 1, 2010 and ending December 31, 2010 for office space located at 630 Main Street in Placerville, noting rent shall be fixed at that amount unless otherwise amended by the parties, cost for 5,340 square feet is $0.843 per square foot and overall yearly cost to be lowered by $31,146.24.
FUNDING: General Fund.
Body
Fiscal Impact/Change to Net County Cost:
The lease is funded by the Public Defender's Office and was included in the FY 2009-10 budget. The reduction of $31,146.24 per year is an incentive to stay in the facility.
Background:
The Public Defender has been in a leased facility since 2002. The Public Defender's relocation into this facility was needed to free up space for the expansion of the El Dorado Community Health Center, which the Board approved funding for on January 25, 2005, item 51.
Reason for Recommendation:
Current economic conditions require special consideration be given to all fiscal contracts and transactions. Cost cutting measures must be used in order to meet budget reductions, therefore, Property Services has renegotiated a reduction in lease payments. Currently the payments are $7,095.00 per month and will be reduced to $4,500.00 per month. As a result of this effort, there will be an overall annual savings of $31,146.24. Rent payments shall be fixed at that amount, unless otherwise amended by the parties.
Action to be taken following Board approval:
The Board Clerk will forward to the Transportation Department fully executed original copies of Amendment II to Lease Agreement 131-L0311 for distribution.
Contact:
James W. Ware P.E.
Director of Transportation
Concurrences: County Counsel and Risk Management