To: Sonoma County Board of Supervisors
Department or Agency Name(s): General Services, Health Services
Staff Name and Phone Number: Caroline Judy, General Services, 707-565-8058; Tina Rivera, Department of Health Services, 707-565-7901
Vote Requirement: Majority
Supervisorial District(s): All
Title:
Title
Second Lease Amendment for Department of Health Services at 1450 Guerneville Road, Santa Rosa
End
Recommended Action:
Recommended action
Authorize the Director of General Services to execute a Second Lease Amendment with Codding Enterprises LP, as Landlord, for 8,035 square feet of office space at 1450 Guerneville Road, Santa Rosa, for the Department of Health Services’ Woman, Infants & Children (WIC) Program, extending the existing lease term one (1) additional year, to expire November 30, 2023, with a monthly rent of $13,257.75 ($1.65/sf/month).
end
Executive Summary:
The Director of General Services, in consultation with the Department of Health Services, requests Board consideration of an amendment to a lease at 1450 Guerneville Road, Santa Rosa, consisting of 8,035 rentable square feet and occupied by the Department of Health Services’ Woman, Infants & Children (WIC) Program. The proposed Amendment will allow the Department to extend its lease term one (1) additional year with no rent increase, and continue to run its Woman, Infants & Children (WIC) Program uninterrupted.
Discussion:
The premises is occupied by the Department of Health Services’ Woman, Infants & Children (WIC) Program, a nutrition program that serves pregnant women, women who have recently been pregnant, infants, and children up to their fifth birthday. This supplemental nutrition program is funded by the United States Department of Agriculture (USDA), an agency that also provides funding for other County of Sonoma programs such as CalFresh. This program location is one of four local Department WIC programs in operation in Sonoma County.
The other WIC programs are operated in Guerneville, Petaluma and Sonoma valley.
The existing lease is set to expire November 30, 2022. The Department of Health Services, supported by the Department of General Services, initiated lease extension discussions with the premises’ Landlord in September 2021, hoping to avoid the expense and disruption of services resulting from relocation. Negotiations between the County and Landlord continued through October, when a Second Lease Amendment was agreed to by the landlord.
Lease Amendment. The proposed Second Lease Amendment between Codding Enterprises LP, as Landlord, and the County of Sonoma, as Tenant, contains the following key provisions:
1. One (1) year lease extension, for a lease expiration date of November 30, 2023. The landlord was unwilling to provide a lease extension greater than one year, wanting to wait to see if the Community Development Commission (CDC) exercises its option to extend its lease in the adjacent premises at 1440 Guerneville Road before considering a further lease extension for WIC at 1450 Guerneville Road. The CDC has until September 3, 2022, to exercise its lease extension option. The landlord has indicated that, if the CDC chooses not to exercise its option to extend its lease term, the landlord will likely not extend WIC’s lease term beyond 11/30/23. The proposed WIC lease extension provides WIC with 20 months to investigate alternative locations to 1450 Guerneville Road in the event that the landlord decides not to extend WIC’s lease term.
2. Monthly rent of $13,257.75 ($1.65/sf), representing no rent increase from the previous two years’ rent
3. All other terms of the existing Lease remain unchanged including right to terminate the Lease for any or no reason with 90 days written notice
Project Costs and Construction Schedule. None.
Procedural Authority. Government Code Section 25350 requires publication of notice of the Board’s intent to enter into a lease or leased amendment for three successive weeks prior to execution of a lease agreement valued at more than $50,000. Publication occurred pursuant to the Board’s December 7, 2021, action authorizing the publication of a notice of intent to enter the proposed Second Lease Amendment.
Strategic Plan:
N/A
Prior Board Actions:
12/07/21 - Declare intent to enter into Second Lease Amendment
01/05/21 - Authorize General Services Director to execute Lease Amendment
12/08/20 - Declare intent to enter into Lease Amendment
01/04/11 - Authorize General Services Director to execute Lease
12/07/10 - Declare intent to enter into Lease
Fiscal Summary
|
Expenditures |
FY 21-22 Adopted |
FY22-23 Projected |
FY 23-24 Projected |
|
Budgeted Expenses |
$159,093 |
$159,093 |
$66,288.75 |
|
Additional Appropriation Requested |
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Total Expenditures |
$159,093 |
$159,093 |
$66,288.75 |
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Funding Sources |
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General Fund/WA GF |
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|
|
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State/Federal |
$159,093 |
$159,093 |
$66,288.75 |
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Fees/Other |
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Use of Fund Balance |
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Contingencies |
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Total Sources |
$159,093 |
$159,093 |
$66,288.75 |
Narrative Explanation of Fiscal Impacts:
The FY21-22 Lease expenditures are included within the DHS current budget and future year rent expenditures will be included during the budget adoption process.
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Staffing Impacts: |
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Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
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Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
Second Lease Amendment between Codding Enterprises LP as Landlord and the County of Sonoma as Tenant
Related Items “On File” with the Clerk of the Board:
1450 Guerneville Road Lease and First Amendment