To: Sonoma County Board of Supervisors
Department or Agency Name(s): Public Infrastructure
Staff Name and Phone Number: Johannes J. Hoevertsz, 707-565-2550
Vote Requirement: Majority
Supervisorial District(s): Fifth
Title:
Title
Lease extension for West County Community Services, 16390 Main Street, Suite A, Guerneville
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Recommended Action:
Recommended action
A) Authorize the Public Infrastructure Director to execute an amendment to the lease with West County Community Services, to extend the lease term to December 31, 2023, with two, 1-year options to further extend the term through December 31, 2025; for West County Community Services use of office space located at 16390 Main Street, Suite A, in Guerneville, CA; and
B) Make findings as required by Section 26227 of the Government Code that the proposed extended lease is necessary to meet the social needs of the population of the County and that the subject premises is not and will not be needed for county purposes during the term of the extended lease time period.
(Fifth District)
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Executive Summary:
In December 2022, the County completed acquisition of the real property commonly known as the Bank of America (“BofA”) building, located at 16390 Main Street, Guerneville, CA. In accordance with the terms of the property purchase agreement executed between the previous owners and the County, the tenant leases between the former owner and the West County Community Services (“WCCS”), Bank of America, the County Health Services Department and the County Probation Department were assigned to the County, upon County’s acquisition of the property.
The WCCS lease term expired December 31, 2022, and WCCS is holding over on a month-to-month tenancy.
The proposed lease amendment will renew and extend the term of the lease and provide extension options for continued use of the premises by this important social services provider tenant.
Discussion:
In December 2022, the County acquired the BofA building (the Property).
West County Community Services (WCCS) has leased the premises, comprised of approximately 3,001 sq. ft. of office space, since October 2015. The WCCS lease term expired on December 31, 2022, and WCCS is currently holding over month-to-month. WCCS provides a wide range of services to residents of West County and the lower Russian River, including but not limited to: senior services (meals, transportation, case management, and support counseling); counseling for family, youth and children, and outreach; housing assistance; employment activities and training.
Proposed Lease amendment: A lease amendment has been negotiated with the following terms:
Premises: No change. The Premises consist of 3,001 sq. ft. of office space, located in Suite A of the building. Please see attached floor plan.
Lease Term: The lease term is extended through December 30, 2023. The amendment provides two, 1-year options, to further extend the term through December 31, 2025.
Rent: $5,665.00 per month ($1.89 per sq. ft.), subject to 3% annual increases, for the 1-year extension options. This rental rate is less than market rate; rental rates for available office properties in West Sonoma County average $2.50 per sq. ft.
Public Interest. Section 26227 of the Government Code allows the County to lease and otherwise make available to public agencies and nonprofits any county property, if the property is to be used for public programs necessary to meet county social needs and subject to certain findings. This Agreement is in the best interest of the public as it would continue to support regional services for rehabilitation, social welfare, and education. In addition, the County does not foreseeably need the Premises outlined in the Agreement and all other county uses have adequate space in the remainder of the BofA building.
Strategic Plan:
This item directly supports the County’s Five-year Strategic Plan and is aligned with the following pillar, goal, and objective.
Pillar: Resilient Infrastructure
Goal: Goal 1: Invest in County buildings and technology to enhance service delivery and improve employee mobility
Objective: Objective 4: Establish resilient neighborhood/regional and satellite service centers with access to transportation systems in West County, Cloverdale, and Sonoma Valley, as expressed in the Real Estate Master Plan, by 2023 in order to improve equitable public access to services.
Prior Board Actions:
None.
Fiscal Summary
|
Expenditures |
FY 22-23 Adopted |
FY23-24 Projected |
FY 24-25 Projected |
|
Budgeted Expenses |
$39,655 |
$69,000 |
$71,070 |
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
$39,655 |
$69,000 |
$71,070 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
|
|
|
|
Fees/Other |
$39,655 |
$69,000 |
$71,070 |
|
Use of Fund Balance |
|
|
|
|
Contingencies |
|
|
|
|
Total Sources |
$39,655 |
$69,000 |
$71,070 |
Narrative Explanation of Fiscal Impacts:
In FY 2022-23, the proposed lease amendment will provide $5,665 per month in lease revenue which will be used to help offset the cost of operational expenses, and towards payment of the loan for the acquisition of the Property. WCCS rent will be included in Real estate operating budget in FY 2022-23 third quarter Consolidated Budget Adjustments and in the FY 2023-24 recommended budget.
Narrative Explanation of Staffing Impacts (If Required):
None.
Attachments:
1 - Floor plan
2 - Copy of proposed lease amendment
Related Items “On File” with the Clerk of the Board:
None.