To: Sonoma County Board of Supervisors
Department or Agency Name(s): General Services, Human Services
Staff Name and Phone Number: Caroline Judy, General Services: 707-565-8058; Angela Struckmann, Human Services: 707-565-6990
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Lease for Human Services Department at 5345 Skylane Blvd, Santa Rosa
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Recommended Action:
Recommended action
Authorize the Board Clerk to publish notice declaring the intent of the Board of Supervisors to execute a Lease with 5330 ORH LLC, as Landlord, for 7,000 square feet of warehouse and office space at 5345 Skylane Blvd, Santa Rosa, for the Human Services Department Operations Section, for a lease of five (5) years, commencing May 1, 2022 and expiring April 30, 2027, with an initial monthly rent of $9,450 ($1.35/sf/month).
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Executive Summary:
The Director of General Services, in consultation with the Human Services Department (HSD), requests Board consideration of a Lease at 5345 Skylane Blvd, Santa Rosa, consisting of 7,000 rentable square feet of air-conditioned warehouse and office space, to be occupied by the Human Services Department’s Operations Section. The proposed Lease will meet the Department’s growing storage and distribution needs for office equipment, furniture, and supplies, as well as serve as a disaster logistics facility for the Care & Shelter desk at the county’s Emergency Operations Center (EOC).
Discussion:
In March, 2021, County General Services, on behalf of Human Services, initiated a search for air-conditioned warehouse space in the Airport area with the purpose of relieving constraint problems HSD was experiencing at its existing warehouse facilities that was negatively affecting its operating efficiency. Negotiations between the County and Landlord commenced in September 2021 and continued through December 2021, when lease terms and a draft Lease was agreed upon. The proposed five year lease term, with a five year option exercisable at the County’s discretion, will allow HSD uninterrupted use of an air-conditioned office/warehouse facility to efficiently support their day-to-day operations and emergency response through April 30, 2032.
Lease Terms. The proposed Lease between 5330 ORH LLC, as Landlord, and the County of Sonoma, as Tenant, contains the following key provisions:
1. Five (5) year lease commencing May 1, 2022 and expiring April 30, 2027
2. Initial monthly rent of $9,450, ($1.35/sf/month) Gross
3. County pays for its utilities
4. County’s pro-rata share of common area maintenance (CAM) expenses is included in monthly rent
5. 3% fixed annual rent escalation
6. County has one option to extend the term five additional years, through 4/30/32, with the initial rent in option period to be set at 3% higher than previous year’s rent
7. Prior to commencement of lease, landlord is to remove at landlord’s cost a partial wall in the warehouse area
8. County retains right to terminate the lease with 270 days written notice in the event of non-appropriation of funds or if HSD elects to occupy space in a new County Government Center
Project Costs and Construction Schedule.
All tenant improvements are to be completed by landlord at landlord’s expense.
Tenant Relocation Costs are estimated to be:
Move Cost: $10,000
ISD/Cabling Cost: $10,000
Furniture Cost: $30,000
Total Relocation Cost: $50,000
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. If your Board takes the requested action, this matter will return to the Board on or after March 1, 2022, for consideration and consummation of the proposed Lease.
Strategic Plan:
N/A
Prior Board Actions:
None
Fiscal Summary
|
Expenditures |
FY 21-22 Adopted |
FY 22-23 Projected |
FY 23-24 Projected |
|
Budgeted Expenses |
$68,900 |
$113,967 |
$117,386 |
|
Additional Appropriation Requested |
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Total Expenditures |
$68,900 |
$113,967 |
$117,386 |
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Funding Sources |
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General Fund/WA GF |
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State/Federal |
$68,900 |
$113,967 |
$117,386 |
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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 |
$68,900 |
$113,967 |
$117,386 |
Narrative Explanation of Fiscal Impacts:
The FY21-22 Lease expenditures are included within the HSD 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:
1 - Lease between 5330 ORH LLC as Landlord and the County of Sonoma as Tenant
2 - Notice of Intent to Lease
Related Items “On File” with the Clerk of the Board:
None