To: Board of Directors of the Sonoma County Agricultural Preservation and Open Space District
Department or Agency Name(s): Sonoma County Agricultural Preservation and Open Space District
Staff Name and Phone Number: Julie Mefferd, 565-7368
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Eighth Amendment to Lease for Office of Sonoma County Agricultural Preservation and Open Space District
End
Recommended Action:
Recommended action
Authorize the General Manager of the Sonoma County Agricultural Preservation and Open Space District to execute an amendment to the Lease Agreement between Papeete, LLC and the Sonoma County Agricultural Preservation and Open Space District, extending the lease for one year with an additional one-year option, through July 31, 2024, for a total cost not-to-exceed $468,500.
end
Executive Summary:
The current lease agreement for the Sonoma County Agricultural Preservation and Open Space District’s office space at 747 Mendocino Avenue, in Santa Rosa, will expire on July 31, 2022. The General Manager has negotiated a two-year extension of the existing lease agreement with the building owner, Papeete, LLC. The Sonoma County Agricultural Preservation and Open Space District had been evaluating the potential purchase of an office location as a long-term cost-saving alternative to paying monthly rent. Due to the on-going economic uncertainty caused by the COVID-19 public health emergency, efforts to purchase a facility have been suspended. The requested 2-year term extension provides time needed by staff to evaluate the impacts of the COVID-19 public health emergency on tax revenues and the local real estate market so that the Sonoma County Agricultural Preservation and Open Space District can acquire a cost-effective and well-located facility if a purchase is ultimately deemed prudent by the Board.
Discussion:
The Agricultural Preservation and Open Space District (Ag + Open Space) has been at its current facility at 747 Mendocino Ave, Santa Rosa, CA 95401 since March 26, 1996. The lease has been amended seven times, which includes upgrades and expansions in 2007, 2011, 2016 and 2020. The current office space totals 11,789 square feet.
The current monthly rent of $18,514.39 equates to a monthly cost of $1.57 per square foot. The new proposed per square foot rate includes the additional cost of the space acquired pursuant to the previous 2020 lease amendment, which has been included in the lease rate for the past two years for no additional cost. Ag + Open Space will utilize the 2020 expansion space to house the additional staff the board approved on April 19, 2022, as well as closed door “hoteling space” (space for staff who regularly telework to drop into the office as-needed) during the pandemic. The new monthly lease rate of $1.68 per square foot is consistent with prevailing lease rates for comparable commercial office space in a pre-COVID-19 environment. Due to price volatility in the current economic conditions the General Manager believes the relatively short-term extension of the current lease with the new lease rate is a prudent course of action, particularly because Ag + Open Space can terminate the lease on a discretionary basis with 180-days’ notice, offering Ag + Open Space the flexibility it may need in the event a permanent or more cost-effective location is found. Additionally, the owner has agreed to recarpet and paint the space 2020 expansion this summer. Should Ag + Open Space exercise the early termination right it maintains under the lease agreement, Ag + Open Space will be obligated to reimburse the landlord for the cost of these tenant improvements on a prorated basis.
Prior Board Actions:
July 14, 2020: Authorized General Manager to execute amendment to Lease. (Board Action #2)
August 14, 2018: Authorized General Manager to execute amendment to Lease. (Board Action #12)
August 9, 2016: Authorized General Manager to execute amendment to Lease. (Board Action #1)
December 13, 2011: Authorized General Manager to execute amendment to Lease.
January 8, 2008: Authorized General Manager to execute amendment to sublease. (Board Action #1)
February 7, 2006: Authorized General Manager to execute amendment to sublease. (Board Action #2)
October 4, 2005: Authorized General Services Director to exercise option of Lease.
August 21, 2001: Authorized General Manager to execute amendment to Sublease. (Board Action #1)
February 27, 2001: Authorized Renewal of Sublease. (Board Action #1)
March 26, 1996: Authorized President to execute subject Sublease. (Resolution 96-0358)
Fiscal Summary
|
Expenditures |
FY 22-23 Recommended |
FY23-24 Projected |
FY 24-25 Projected |
|
Budgeted Expenses |
$231,555 |
$237,344 |
|
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
$231,555 |
$237,344 |
|
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
|
|
|
|
Fees/Other |
$231,555 |
$237,344 |
|
|
Use of Fund Balance |
|
|
|
|
Contingencies |
|
|
|
|
Total Sources |
$231,555 |
$237,344 |
|
Narrative Explanation of Fiscal Impacts:
Ag & Open Space has adequate appropriations in the FY22-23 budget for the lease and will propose adequate appropriations for the FY23-24 budget.
|
Staffing Impacts: |
|
|
|
|
Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
1. Lease Agreement - Eighth Amendment
Related Items “On File” with the Clerk of the Board:
None