Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: John L. Maltbie, County Manager
Subject: Amendment to the Lease Agreement with Carolyn S. Bernardi and Allan J. Bernardi to allow for the continued operation of an existing County Communication Facility located at 440 Pigeon Point Road in Pescadero (Lease No. 1147)
RECOMMENDATION:
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Adopt a resolution:
A) Authorizing the President of the Board of Supervisors to execute an amendment to the Lease Agreement with Carolyn S. Bernardi and Allan J. Bernardi, to allow for the continued operation of an existing County Communication Facility located at 440 Pigeon Point Road in Pescadero; and
B) Authorizing the County Manger, or his designee, to accept or execute on behalf of the County any and all notices, options, consents, approvals, terminations, and documents in connection with the agreement.
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BACKGROUND:
Since 1987, under a permit from the private property owner, the County has operated a communication facility at 440 Pigeon Point Road in Pescadero. The site is necessary for Sheriff’s Office and Fire Department communication coverage on the south coast. Additionally, the County subleases space at the facility to the California Highway Patrol and a private wireless company to help offset the costs of leasing and maintaining the facility. The County’s current monthly rent for the facility is $2,800.00 while the subleases currently generate $2,747.92 per month.
There have been five previous amendments to the Lease Agreement that have extended the term and increased the rent. The Lease Agreement is scheduled to expire on July 31, 2017, and there are no remaining options to extend the term.
DISCUSSION:
Real Property Services has negotiated a Sixth Amendment to the Lease Agreement that would extend the termination date to July 31, 2022 and provide two options to extend the term for five additional years each. The initial monthly rent will be $3,330.00 and will increase annually by three percent. The Sixth Amendment is otherwise on the same terms and conditions as previously amended. The County’s monthly per square foot rental rate is reportedly lower than the other three facilities at this location.
County Counsel has reviewed and approved the amendment as to form. The Chief Information Officer concurs in this recommendation.
Approval of this sixth amendment to the Lease Agreement contributes to the Shared Vision 2025 outcome of a Collaborative Community by maintaining necessary communication coverage for emergency services on the south coast for the benefit of the public.
FISCAL IMPACT:
The initial monthly rent of $3,330 is included in the Information Services Department Adopted Budget for Fiscal Year 2017-18 and is partially offset by the rent generated by the existing subleases.