Title
Department of Transportation recommending the Board authorize the Chair to sign Amendment II to Lease Agreement 046-L9611 with Briw Office Investors in the amount of $33,050.36 per month commencing January 1, 2011 and ending on December 31, 2011. This amendment shall exercise the first option for an additional one (1) year term, amend the agreement to eliminate the two (2%) percent annual increase and request that the Lessor provide and pay for snow removal when needed for the Department of Human Services located at 3057 Briw Road in Placerville. Cost per square foot is $1.11.
FUNDING: 85% Federal/State, 15% County match met primarily from realignment funds.
Body
BUDGET SUMMARY:
Total Estimated Cost: $396,604.32
Funding
Budgeted $ 396,604.32
New Funding $
Savings $
Other $
Total Funding Available $ 396,604.32
Change To Net County Cost $0
Fiscal Impact/Change to Net County Cost:
This lease is funded by the Department of Human Services and they have informed Department of Transportation that funding is included in the FY 2010/11 adopted budget and will be included in the FY 2011/12 department budget request.
Background:
The Department of Human Services has been leasing this facility since October 31, 1995.
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, this amendment will exercise the first option for an additional one (1) year and will eliminate the two (2%) percent annual increase. The payments will remain at $33,050.36 per month commencing on January 1, 2011 and end on December 31, 2011 with options for two (2) additional one (1) year terms, thereafter; and will include snow removal as needed. Elimination of the 2% annual increase results in a savings of $7,932.12 for the year.
Action to be taken follo...
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