To: Board of Supervisors
Department or Agency Name(s): Sonoma County Public Infrastructure, Emergency Management
Staff Name and Phone Number: Johannes J. Hoevertsz, Public Infrastructure: 707-565-2550; Jeff DuVall, Emergency Management: 707-565-6160
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Second Amendment to Lease for Department of Emergency Management (DEM) Program at 7844 Bell Road, Windsor
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Recommended Action:
Recommended action
Authorize the Director of Sonoma County Public Infrastructure to execute the proposed Second Amendment to the Lease with John R. Brady, as Landlord, and the County of Sonoma, as Tenant, for warehouse space at 7844 Bell Road, Windsor, extending the existing lease term five (5) years, with an initial rent of $2,937.60 per month subject to three percent (3%) annual increases.
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Executive Summary:
The Director of Sonoma County Public Infrastructure (SPI), in consultation with the Department of Emergency Management (DEM), requests Board consideration of the proposed amendment to the County lease at 7844 Bell Road, Windsor, consisting of 2,160 rentable square feet and currently occupied by DEM. The proposed Amendment will allow the Department to extend its lease term five (5) additional years, at an initial rent of $2,937.60 per month, ($1.36/sf/month), which represents a 3% increase from the existing rent, allowing DEM to continue to store and distribute emergency supplies in support of the County’s emergency response efforts without interruption.
Discussion:
The Department of Emergency Management (DEM) currently occupies space located at 7844 Bell Road, Windsor for storage and distribution of emergency supplies in support of the County’s emergency response efforts. This is one of two leased warehouse spaces DEM occupies in the County for emergency supply storage and distribution. The other leased warehouse space is located near Cloverdale.
The term of the existing lease at 7844 Bell Road, Windsor is set to expire November 30, 2024, and DEM, supported by the SPI Real Estate Division, initiated lease extension discussions with the Landlord in April 2024. Negotiations between the County and Landlord continued through July, when a Second Lease Amendment was agreed to by the Landlord. DEM and SPI staff are recommending approval of the proposed lease extension to avoid expenses and potential service disruptions associated with relocating emergency supplies to a new facility.
Lease Amendment. The proposed Lease Amendment between John R. Brady, as Landlord, and the County of Sonoma, as Tenant, contains the following key provisions:
1. Five (5) year lease extension, for a new lease expiration date of November 30, 2029;
2. Initial monthly rent of $2,937.60, ($1.36/sf/month), commencing December 1, 2024, representing a 3% rent increase from the previous year’s rent.
3. 3% annual rent increases in Years 2-5.
4. Landlord at Landlord cost is to install a spotlight over the roll up door prior to commencement of lease extension term.
5. County has two Options to extend the Lease term an additional two years each, maintaining County control of the premises through November 30, 2033.
6. All other terms of the existing lease remain unchanged, including the County’s responsibility for paying for common area maintenance charges (CAM) and for its own utility use.
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. The notice of intent for the proposed amendment was published for the required period pursuant to the Board’s action on September 15, 2024, and in accordance with the Government Code.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
09/15/24 - Declare intent to enter into a Second Amendment to Lease
05/18/21 - Approve conversion of the initial Lease term from one (1) year to two (2) years
Fiscal Summary
|
Expenditures |
FY 24-25 Adopted |
FY 25-26 Projected |
FY 26-27 Projected |
|
Budgeted Expenses |
$34,823.41 |
$35,868.11 |
$36,944.15 |
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
$34,823.41 |
$35,868.11 |
$36,944.15 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
$34,823.41 |
$35,868.11 |
$36,944.15 |
|
State/Federal |
|
|
|
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
|
|
|
|
Contingencies |
|
|
|
|
Total Sources |
$34,823.41 |
$35,868.11 |
$36,944.15 |
Narrative Explanation of Fiscal Impacts:
The FY 24-25 Lease expenditures are included within the DEM current budget and future year rent expenditures will be included during the budget adoption process. DEM budgets for this expense in their Emergency Operations Resources division from their annual General Fund contribution.
Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
Attachment 1 - Second Amendment to Lease between John R. Brady as Landlord and the County of Sonoma as Tenant
Attachment 2 - Estimated FY Rent Budget
Related Items “On File” with the Clerk of the Board:
7844 Bell Road - Lease and First Amendments to Lease