To: Sonoma County Board of Supervisors
Department or Agency Name(s): Public Infrastructure / Office of Equity
Staff Name and Phone Number: Johannes J. Hoevertsz - Public Infrastructure, 707-565-2550 / Alegria DeLa Cruz - Office of Equity, 707-565-8709
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
New Lease for Office of Equity, 111 Santa Rosa Avenue, Suite 202, Santa Rosa
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Recommended Action:
Recommended action
Authorize Clerk of the Board to publish a notice, declaring the Board's intent to enter into a lease with 111 Santa Rosa, LLC (the Landlord), for office space, at 111 Santa Rosa Avenue, Suite 202 Santa Rosa, for the Office of Equity.
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Executive Summary:
This matter involves a proposed lease for the Office of Equity (OOE) to relocate from its current leased space at 50 Santa Rosa Avenue, in downtown Santa Rosa. OOE has been leasing the existing premises since January 2021, and the lease term expired January 30, 2023. That lease is in a month-to-month holdover.
The proposed lease will allow for OOE to move to a larger office space at 111 Santa Rosa Avenue, also in downtown Santa Rosa, for a three-year term with options to extend.
Since its establishment in August 2020, OOE has expanded from 3 full-time positions, to 6 full-time positions, plus 1-2 summer interns, and the current leased space is inadequate to house the expanded department and program work. The current location does not currently have enough working stations for the existing team and does not have any available meeting or training spaces for the free use of the OOE. Therefore, the majority of the team continues to telework due to the lack of space in the current office, and to hold larger convenings and trainings in other spaces. It is critical for the OOE to have a space to continue to develop and nourish relationships with community members and community-based organizations and to support its ongoing work with County staff through the Core Team. The proposed new location at 111 Santa Rosa Avenue will provide the needed office space for the basic operation of the 6 FTE’s, and will also provide the convening space to host community meetings with communities of color, as well as with organizational partners supporting the community and enriching the OOE’s work, and Core Team members.
Discussion:
This item seeks Board approval to publish a notice declaring the Board’s intention to execute a lease between 111 SR, LLC (the Landlord) and the County, to provide adequate office space for the OOE, at 111 Santa Rosa Avenue, Suite 202, Santa Rosa.
OOE has leased office space at 50 Santa Rosa Avenue, Suite 330, in Santa Rosa since January 2021. The current Premises are comprised of 857 sq. ft. of office space, originally leased to provide space for the then 3 full-time positions. The lease for 50 Santa Rosa Avenue expired on January 30, 2023, and the lease is in month-to-month holdover status. The current monthly rent is $1,415 ($17,478 per year).
The proposed new lease will provide space to accommodate the increased staffing for the OOE, comprised of the Director, Program Manager, 3 Department Analysts, an Administrative Aide, and rotating interns to administer the OOE program services.
Proposed Lease. The terms for the proposed Lease are as follows:
Premises: Suite 202, comprised of 2,418 rentable sq. ft. at 111 Santa Rosa Avenue, Santa Rosa.
Term: Three (3) years, with one, 2-year option.
Rent: $5,471.40 per month ($2.20 psf), subject to 3% annual increases. The $2.20 psf rent rate is at market rate, which is between $1.80 per sq. ft. to $2.25 per sq. ft. for comparable office space for lease in Santa Rosa.
Rent
Abatement: The proposed Lease provides rent abatement for the first 3 months of the term, for a total savings of $16,414.
Improvements:
Minor tenant improvements include removal of walls to provide a more open floor plan that will allow for increased flexibility for additional meeting and training space, as needed. Landlord will perform these tenant improvements at Landlord’s sole cost and expense.
Termination: County may terminate the lease if funding for the Premises or program is reduced or withdrawn, or for any reason, with 180 days’ prior written notice, to the Landlord and subject to payment of the Lease Termination Fee as stated in the Lease.
Funding: The one-time move costs associated with the new Lease include ISD/IT work, office equipment and furnishings, and move management to provide Wi-Fi connectivity and furnish the new Premises for occupancy. OOE has sufficient appropriations in FY22-23 to cover these one-time move costs of $60,000.
OOE will continue to pay monthly rent for its current lease at 50 Santa Rosa Avenue, of $1,415 per month, for the months of April and May 2023, until the new Premises at 111 Santa Rosa Avenue are ready for occupancy, projected June 2023. The proposed new lease will abate rent for the first 3 months, a savings of $16,414. Future ongoing lease rent costs will be paid out of the department’s approved operating budget.
Procedural Authority. Government Code Section 25350 requires two (2) Board actions, which includes publication of a notice of intent, for the County to lease real property as tenant, and where the lease is valued at more than $50,000. If your Board takes the requested actions, this matter will return to the Board on or after March 7, 2023, for consideration and consummation of the proposed new Lease in accordance with the Government Code.
Strategic Plan:
This item directly supports the County’s Five-year Strategic Plan and is aligned with the following pillar, goal, and objective.
Pillar: Racial Equity and Social Justice
Goal: Goal 4: Engage community members and stakeholder groups to develop priorities and to advance racial equity.
Objective: Objective 1: Establish a process for engagement and collaboration with community members and stakeholder groups, and launch a community engagement strategy by the end of 2022 with a focus on racial equity.
Pillar: Racial Equity and Social Justice
Goal: Goal 4: Engage community members and stakeholder groups to develop priorities and to advance racial equity.
Objective: Objective 2: Collaborate with community members and stakeholder groups to develop racial equity strategies for County emergency response, economic recovery and resiliency planning efforts.
Pillar: Racial Equity and Social Justice
Goal: Goal 4: Engage community members and stakeholder groups to develop priorities and to advance racial equity.
Objective: Objective 3: Begin implementing strategies for regular community engagement to guide racial equity efforts.
Prior Board Actions:
None.
Fiscal Summary
|
Expenditures |
FY 22-23 Adopted |
FY23-24 Projected |
FY 24-25 Projected |
|
Budgeted Expenses |
$62,830 |
$65,657 |
$67,627 |
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
$62,830 |
$65,657 |
$67,627 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
$62,830 |
$65,657 |
$67,627 |
|
State/Federal |
|
|
|
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
|
|
|
|
Contingencies |
|
|
|
|
Total Sources |
$62,830 |
$65,657 |
$67,627 |
Narrative Explanation of Fiscal Impacts:
The one-time move costs of $36,000, budgeted for ISD/IT equipment installation and setup; and for the one-time cost of $24,000, budgeted for Furniture, Fixtures and Equipment and move management, will be completed by County Public Infrastructure project move management. In addition, rent for the months of April and May 2023 is budgeted for the current leased Premises at 50 Santa Rosa of $2,830 ($1,415 per month X 2 months). The $62,830 noted above for lease rent and the one-time move costs will be funded by the Department’s approved operating budget. The additional lease rent costs for the new Lease are projected for FY 23-24 ($65,657) and FY 24-25 ($67,627). Future ongoing lease rent costs will be paid out of the Department’s operating budget.
Narrative Explanation of Staffing Impacts (If Required):
None.
Attachments:
1 - Site Plan
2 - Notice of Intent
3 - Copy of proposed Lease
Related Items “On File” with the Clerk of the Board:
None.