To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: 2500 Bates Avenue Ste B Concord - Lease term renewal
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Public Works Director, or designee, to exercise a three-year lease renewal between the County, as lessee, and Gonsalves and Santucci, Inc, as lessor, for approximately 37,209 square feet of office space located at 2500 Bates Ste B Concord for the period July 1, 2026 - June 30, 2029.
AUTHORIZE the Public Works Director, or designee, to exercise the second of two lease term renewals in accordance with the terms of the lease.
FISCAL IMPACT:
Lease costs are charged to 55% General Fund, 14% Maternal and Child Health allocation from California Department of Public Health (CDPH), 22% M/C reimbursements, 8% Health Care for the Homeless grant from Health Resources and Services Administration (HRSA), 1% California Lead Poisoning Prevention Program grant allocation via CDPH.
BACKGROUND:
This space has served as the office for the Public Health Administrator and Clinic Services of the Health Services Department since February 2017. The space continues to meet the requirements of the Public Health Administrator. By extending the lease term and allowing the Public Health Administration to continue its operation at this location, the County will save money in relocation expenses.
The County entered into a lease with Lessor in April, 2013. That lease was amended in February 2017 (First Amendment), and again in November 2020 (Second Amendment). The term of the Second Amendment is through June 30, 2026, and the Second Amendment contains two three-year renewal options. This action would approve the first three-year renewal option, which would extend the term through June 30, 2029. The rent for the first year of the renewal term would be $75,933/month. The rent would increase to $78,211/month for year two of the renewal term, and to $80,557/monthly for year three of the renewal term. This action would additionally authorize the Public Works Director, or designee, to exercise the second lease term renewal in accordance with the terms of the lease.
CONSEQUENCE OF NEGATIVE ACTION:
If the lease term is not extended, hundreds of staff doing critical work displaced with no other location to conduct business.