To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Second Amendment to Lease Agreement for Office Space Located at 151 Sand Creek Road in Brentwood.
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Public Works Director, or designee, to execute a second amendment to a lease between the County, as lessee, and the Bimla Lal 1986 Trust dated October 31, 1986, as lessor, to extend the term through December 31, 2027, with two one-year renewal options, for approximately 8,022 square feet of office space located at 151 Sand Creek Road, Building 6, in Brentwood at an initial annual rent of $144,360, as requested by the Employment and Human Services Department, and as recommended by the Public Works Director.
AUTHORIZE the Public Works Director, or designee, to exercise any options to extend the lease term.
FISCAL IMPACT:
54% Federal Funds; 38% State Funds; 8% General Fund
BACKGROUND:
The County has leased this office space in Brentwood under the existing lease since 2011. The lease has been in holdover since July 1, 2022, while the County and lessor investigated settlement issues with the building. The County hired a structural engineer to inspect the building. The engineer determined that the structural safety of the part of the building occupied by CCC EHSD has not been impaired by soil settlements.
The current annual rent for the leased space is $144,360. The proposed amendment will maintain the current rent through December 31, 2027. The proposed amendment will also give the County two one-year renewal options and clarify that the lessor, not the County, is responsible for any costs associated with the foundation of the building or the building settling.
CONSEQUENCE OF NEGATIVE ACTION:
If the amendment is not approved, the lease will remain in holdover, which could expose the County to costs associated with repairs and maintenance that c...
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