To: Sonoma County Board of Supervisors
Department or Agency Name(s): Public Infrastructure, Department of Health Services
Staff Name and Phone Number: Johannes J. Hoevertsz - SPI, 707-565-2550; Tina Rivera - DHS, 707-565-4774
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Third Amendment to Lease for Department of Health Services at 1450 Guerneville Road, Santa Rosa
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Recommended Action:
Recommended action
Authorize the Director of Sonoma County Public Infrastructure to execute the Third Amendment to Lease 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, 2024, with a monthly rent of $13,257.75 ($1.65/sf/month).
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Executive Summary:
The Director of Sonoma County Public Infrastructure, in consultation with the Department of Health Services, requests Board approval of the amendment to the 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 three local Department WIC programs in operation in Sonoma County.
The existing lease is set to expire November 30, 2023. The Department of Health Services, supported by the Sonoma County Public Infrastructure, initiated lease extension discussions with the premises’ Landlord in October 2022, hoping to avoid the expense and disruption of services resulting from relocation. Negotiations between the County and Landlord continued through October, when a Third Lease Amendment was agreed to by the Landlord.
Lease Amendment. The proposed Third 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, 2024
2. Monthly rent of $13,257.75 ($1.65/sf/month), representing no rent increase from the previous three years’ rent
3. All other terms of the existing Lease remain unchanged, including County right to terminate the Lease for any or no reason with 90 days written notice (and subject to payment of early termination charges as stated in the Lease).
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 the lease agreement where it is valued at more than $50,000. Publication occurred pursuant to the Board’s December 6, 2022, action authorizing the publication of the notice of intent to enter into the proposed lease amendment.
Strategic Plan:
N/A
Prior Board Actions:
12/06/22 - Declare intent to enter into Third Amendment to Lease
01/04/22 - Authorize General Services Director to execute Second Amendment to Lease
12/07/21 - Declare intent to enter into Second Amendment to Lease
01/05/21 - Authorize General Services Director to execute First Amendment to Lease
12/08/20 - Declare intent to enter into First Amendment to Lease
01/04/11 - Authorize General Services Director to execute Lease
12/07/10 - Declare intent to enter into Lease
Fiscal Summary
|
Expenditures |
FY 22-23 Adopted |
FY 23-24 Projected |
FY 24-25 Projected |
|
Budgeted Expenses |
$159,093 |
$159,093 |
$66,288.75 |
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
$159,093 |
$159,093 |
$66,288.75 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
$159,093 |
$159,093 |
$66,288.75 |
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
|
|
|
|
Contingencies |
|
|
|
|
Total Sources |
$159,093 |
$159,093 |
$66,288.75 |
Narrative Explanation of Fiscal Impacts:
The FY22-23 Lease expenditures are included within the DHS current budget and future year rent expenditures will be included during the budget adoption process.
Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
Third Amendment to Lease 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 and Second Amendments to Lease