To: Sonoma County Board of Supervisors
Department or Agency Name(s): Public Infrastructure, Department of Child Support Services
Staff Name and Phone Number: Johannes J. Hoevertsz - SPI, 707-565-2550; Janeene de Martinez - DCSS, 707-565-4023
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Third Amendment to Lease for Department of Child Support Services at 3725 Westwind Blvd, Suite 200, Santa Rosa
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Recommended Action:
Recommended action
Authorize the Director of Sonoma County Public Infrastructure to execute the proposed Lease Amendment with 3725 Westwind SR LLC, as Landlord, for office space at 3725 Westwind Blvd, Suite 200, Santa Rosa, that will extend the existing lease term three (3) additional years, commencing June 1, 2024, at an initial monthly rent of Thirty-Five Thousand One Hundred Ninety-six and 02/100 Dollars ($35,196.02), with 3% annual rent increases thereafter.
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Executive Summary:
The Director of Public Infrastructure, in consultation with the Department of Child Support Services, requests Board authorization of the proposed Amendment to the Lease at 3725 Westwind Blvd, Suite 200, consisting of 17,866 square feet of office space at 3725 Westwind Blvd, Suite 200, Santa Rosa, occupied by the Department of Child Support Services, that will extend the existing lease term three (3) additional years, at an initial monthly rent of Thirty Five Thousand One Hundred Ninety-six and 02/100 Dollars ($35,196.02), ($1.97/sf/month). Board approval of the Lease will enable the Department of Child Support Services to avoid relocation costs and maintain its ability to effectively run its operations and serve the public at its current location. First Board approval occurred on May 14th.
Discussion:
The premises has been occupied by the Department of Child Support Services (“DCSS”) since 2010. The existing lease term expired May 30, 2024. DCSS, supported by the Sonoma County Public Infrastructure Department, initiated lease extension discussions with the Landlord in December 2023, hoping to avoid the expense and disruption of services resulting from relocation. Negotiations between the County and Landlord continued through March, when a Third Lease Amendment was agreed to by the Landlord. The Real Estate team has conducted a thorough review of the leasing costs and determined that the lease terms are consistent with current market conditions.
Lease Amendment. The proposed Third Lease Amendment contains the following key provisions:
1. Three (3) year lease term extension, running from June 1, 2024, to May 31, 2027.
2. Initial monthly rent of ($35,196.02), ($1.97/sf/month), with 3% annual increases for the term of the lease.
3. County has one Option to extend the lease three additional years from June 1, 2027, to May 31, 2030, with initial rent set at $2.09 per square foot per month.
4. County pays for its utilities in addition to rent.
5. Prior to commencement of the extension term, the Landlord will, at Landlord’s expense, deep clean the carpet and other flooring within the premises, and air balance the HVAC system. The Landlord will also replace second floor common area hallway carpet, with County to reimburse the Landlord for 28% of the total cost of the carpeting, with total County payment to Landlord, upon receipt of Landlord invoices for completed work, not to exceed $4,700.
6. All other terms of the existing Lease remain unchanged, including County retaining its right to terminate the Lease for any or no reason with 180 days written notice.
Procedural Authority. Government Code Section 25350 requires publication of notice of the Board’s intent to enter into a lease or lease amendment for three successive weeks prior to execution of the lease agreement where it is valued at more than $50,000. Publication occurred pursuant to the Board’s May 14, 2024, action authorizing the publication of the notice of intent to enter into the proposed Lease Amendment.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
05/14/24 - Declare intent to enter into Third Amendment to Lease
01/05/21 - Authorize General Services Director to execute First Amendment to Lease
12/08/20 - Declare intent to enter into First Amendment to Lease
12/14/10 - Authorize General Services Director to execute Lease.
11/09/10 - Declare intent to enter into Lease.
Fiscal Summary
|
Expenditures |
FY 23-24 Adopted |
FY 24-25 Projected |
FY 25-26 Projected |
|
Budgeted Expenses |
$39,896.02 |
$423,424.20 |
$436,287.72 |
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
$39,896.02 |
$423,424.20 |
$436,287.72 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
$39,896.02 |
$423,424.20 |
$436,287.72 |
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
|
|
|
|
Contingencies |
|
|
|
|
Total Sources |
$39,896.02 |
$423,424.20 |
$436,287.72 |
Narrative Explanation of Fiscal Impacts:
Appropriations for expenditures associated with this lease are included in the Department of Child Support Services FY23-24 Adopted Budget (11555-12010101). Appropriations for FY24-25 and beyond will be included in the annual Department Recommended budget. Child Support Services receives funding for its programs and services through both State and Federal funding sources.
Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
1 - Third Amendment to Lease between 3725 Westwind SR LLC as Landlord and the County of Sonoma as Tenant
2 - Rent Cost Estimate
Related Items “On File” with the Clerk of the Board:
3725 Westwind, Suite 200 Lease and First and Second Amendments to Lease