To: Sonoma County Board of Supervisors
Department or Agency Name(s): General Services, Auditor-Controller-Treasurer-Tax Collector
Staff Name and Phone Number: Caroline Judy, 707-565-8058 / Erick Roeser, 707-565-2281
Vote Requirement: Majority
Supervisorial District(s): Fourth
Title:
Title
Lease extension for the Auditor-Controller-Treasurer-Tax Collector Enterprise Financial System lease at 433 Aviation Boulevard, Suite 110, Santa Rosa
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Recommended Action:
Recommended action
A) Authorize the General Services Director to execute a lease amendment with the Sonoma County Employee’s Retirement Association (SCERA), for the Auditor-Controller-Treasurer-Tax Collector, located at 433 Aviation Boulevard, Suite 110, Santa Rosa, to extend the term through December 2025 and provide for two 6-month options, for a total term through December 2026; and to specify rent for the extended lease term; and
B) Authorize the General Services Director to execute future amendments and associated documents required for administration of the lease, in consultation with County Counsel, which are consistent with the essential terms of the original lease and do not extend the term of the lease.
(Fourth District)
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Executive Summary:
In February 2013, the Auditor-Controller-Treasurer-Tax Collector (“ACTTC”) entered into a lease (“Lease”) with the Sonoma County Employee’s Retirement Association (“SCERA”), to provide office and training facilities for the implementation of the Enterprise Financial System (“EFS”). EFS office premises are comprised of 5,104 sq. ft., located at 433 Aviation Boulevard, Suite 110, in north Santa Rosa. The current lease expired on December 31, 2021, and the proposed amendment would extend the term of the lease through December 31, 2025, provide options to further extend the lease through December 30, 2026, and specifies rent for the lease extension period.
Discussion:
In September 2012, the County began replacement of the then existing, mainframe based, finance and budget systems with a new, non-mainframe based, integrated financial system to serve all entities governed by the Board of Supervisors. In March 2013, the County executed a lease with the SCERA to provide space for EFS Project implementation team consisting of ACTTC and Information Systems staff, and project management consultants. Post implementation fewer workstations were required for ongoing support of EFS. In an effort to better coordinate the County’s Enterprise Resource Planning systems (“ERP”), the Human Resources Information System (“HRIS”) team was relocated to the Aviation Blvd location and began sharing the expense.
Funding. Funding is provided through the ERP annual rates charged to users of the EFS and HRIS systems.
Proposed Amendment. Staff has negotiated terms for an amendment to the Lease (“Amendment”), as follows:
Premises: No change. See attached floor plan.
Term: The term is extended for 4 years, through December 31, 2025. County will have two options to extend the Term, each for a six-month period, for a total extended period through December 31, 2026.
Rent: $9,697.60 per month ($1.90 per sq. ft.), and is adjusted by $0.05 per sq. ft. (“psf”) each year. The $1.90 psf rental rate is at market rate, which is between $1.60 to $2.50 psf for comparable office space for lease, in Santa Rosa.
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 this lease transaction has been published for the required notice period pursuant to the Board’s action on December 14, 2021 and in accordance with the Government Code.
Strategic Plan:
Not applicable
Prior Board Actions:
12/14/21-Declared intent to enter into 2nd amendment
03-29-16-Authorized General Service Director to execute 1st amendment
03-01-16-Declared intent to enter into 1st amendment
02-05-13-Authorized the General Services Director, or his Deputy, to execute the Lease
01-15-13-Declared intent to enter into the Lease.
Fiscal Summary
|
Expenditures |
FY 21-22 Adopted |
FY22-23 Projected |
FY 23-24 Projected |
|
Budgeted Expenses |
$114,840 |
$117,902 |
$120,965 |
|
Additional Appropriation Requested |
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Total Expenditures |
$114,840 |
$117,902 |
$120,965 |
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Funding Sources |
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General Fund/WA GF |
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State/Federal |
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Fees/Other |
$114,840 |
$117,902 |
$120,965 |
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Use of Fund Balance |
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Contingencies |
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Total Sources |
$114,840 |
$117,902 |
$120,965 |
Narrative Explanation of Fiscal Impacts:
The FY 21-22 Adopted budgets for both EFS and HRIS include appropriations for a full year of lease payments. Rent projections for FY 22-23 and FY 23-24 reflect the total lease rent due.
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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:
Attach 1 - Floor Plan
Attach 2 - Copy of proposed 2nd Amendment
Related Items “On File” with the Clerk of the Board:
None.