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HomeMy WebLinkAboutMINUTES - 09191989 - 1.38 r TO: BOARD OF SUPERVISORS s....._ Contra Phil Batchelor, County Administrator Costa FROM: , n. s DATE: September 19, 1989 cO ST9 COINS G4�, County SUBJECT: Lease for the Health Services Department SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION I. RECOP94ENDATION 1. AUTHORIZE the Director of General Services to EXECUTE, on behalf of the County, a Lease, commencing October 1, 1989 with Albert Loo, Jr. and Alice Loo, Trustees, for the premises at 256-24th Street, Richmond for continued occupancy by the Health Services Department, under the terms and conditions more particularly set forth in said Lease. 2. ADOPT Resolution approving form of and authorizing execution of a Facility Lease. 3. DETERMINE that the project is a Class 1 Categorical Exemption under the California Environmental Quality Act. 4. DIRECT the Community Development Department to FILE a Notice of Exemption with' the County Clerk. II. FINANCIAL IMPACT Lease payments are included in the budget of the Health Services Department. The recommended action is a change from a straight lease to a Lease-Purchase. The Lease-Purchase will increase 1989-90 costs by approximately $12, 000. The increase includes taxes, insurance and amortization of approximately $75,000 of building improvements. All costs are fully budgeted for 1989-90. The County will gain equity in the property each year with full ownership at the end of the lease term. The rent is stabilized as a result of the lease-purchase and past equity investments in the Building are retained. CONTINUED ON ATTACHMENT: YES SIGNATURE: 00210D RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): Y ACTION OF BOARD ON SEP 19 -10 APPROVED AS RECOMMENDED OTHER •T VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: County Administrator ATTESTED SEP 19 1989 County Auditor-Controller(via L/M) PHIL BATCHELOR,CLERK OF THE BOARD OF Lessor(via L/M) SUPERVISORS AND COUNTY ADMINISTRATOR Health Services Department (via L/M) Community Development Department BY DEPUTY M382 (10/88) � , Orig: General Services Department-L/M Buildings and Grounds (via L/M) BAHSPB06. 989 PB:bg .J f III. REASONS FOR RECOMMENDATION/BACKGROUND The Board on December 7, 1982 approved a lease for the subject premises which included substantial specialized improvements (approximately $280,000) for the mental health clinic. The current lease expires in March of 1992 , with no additional options to renew. The mental health program is accepted in the community. Relocation would be very difficult and expensive. Purchase of the building allows the program to retain its position in the community. The purchase price of $493 , 000 is based upon an appraisal by the County and the building owner including needed roofing and other improvements. The purchase will be amortized over the 20 year term, at 8% interest, including the land and approximately $75 ,000 in improvements. The building is 7,000 square feet on 20, 000 square feet of property. The County has the option to terminate the agreement after 5 years and dispose of the property if County programs change substantially. • RESOLUTION NO. 89/623 OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA, CALIFORNIA RESOLUTION APPROVING FORM OF AND AUTHORIZING EXECUTION OF A FACILITY LEASE (256-24TH STREET, RICHMOND) TOGETHER WITH RELATED DOCUMENTS AND AUTHORIZING THE EXECUTION OF NECESSARY CERTIFICATES WHEREAS, pursuant to that certain Lease, 256-24th Street, Richmond, California, (the "Lease" ) dated December 7, 1982 , the County of Contra Costa (the "County" ) presently leases from Albert Loo, Jr . and Alice G. Loo, Trustees of the Albert Loo, Jr. Revocable Trust (the "Lessor") , all of those certain premises commonly known as 256-24th Street, Richmond, California, for use as office space and a parking lot; WHEREAS, this Board of Supervisors for Contra Costa County (the "Board") does hereby determine that it would be in the best interest of the County and the residents of the County for the County to enter into an agreement entitled Facility Lease (256-24th Street, Richmond) , tentatively dated as of October 1, 1989 (herein called the "Facility Lease" ) , which would supersede the above described Lease and lease the entirety of the premises at 256-24th Street, Richmond, together with any office, service or utility buildings hereafter constructed, to County (together collectively called the "Demised Premises" and the "Project" in the Facility Lease) and also provide for the transfer of title to the premises to County at the expiration of its term without further payment by County, or prior to expiration upon payment of certain portions of the rent reserved thereunder; and WHEREAS, the County has full legal right, power, and authority under the Constitution and the laws of the State of California to enter into the transactions hereinafter authorized; NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of the County of Contra Costa as follows : Section 1 . All of the recitals herein are true and correct and this Board of Supervisors so finds . 0231W Section 2 . The Board of Supervisors hereby FINDS and DETERMINES that it is in the public interest, convenience and welfare, and for the common benefit of the inhabitants of the County that the County enter into the Facility Lease and that it execute all documents related thereto, including, without limitation, a Memorandum of Lease in a form suitable for recording, in substantially the form presently attached to the Facility Lease as Exhibit E, and that the County obtain a leasehold policy of title insurance as described in the Facility Lease. Section I. The Facility Lease, tentatively dated as of October 1, 1989, and on file with the Clerk of the Board of Supervisors, together with all Exhibits thereto, is hereby APPROVED and, subject to the conditions specified in Section 4 of this Resolution, the Chair of the Board of Supervisors, the Clerk of the Board of Supervisors , County Administrator, the Director of General Services, or any one of the foregoing officers are hereby AUTHORIZED to execute and deliver the Facility Lease in substantially said form, with such changes therein as may thereafter be approved by counsel to the County, such approval to be conclusively evidenced by the execution and delivery thereof, together with all other related documents necessary to effectuate the transaction contemplated therein, including, without limitation thereby, the aforementioned Memorandum of Lease. The Clerk of the Board of Supervisors is DIRECTED to file a copy of the Facility Lease and all Exhibits thereto with the minutes of this meeting . Section 4 . Execution and delivery of the Facility Lease and related documents by the County is conditioned upon obtaining a recommendation for approval by the Deputy County Administrator, the Assistant Director of General Services, and the Lease Manager as evidenced by their execution of the Facility Lease; and approval as to form by County Counsel as evidenced by his execution of the Facility Lease. Section 5 . Subject to the conditions specified in Section 4 hereof, the officers of the County are hereby AUTHORIZED and DIRECTED, jointly and severally, to do any and all things and to execute and deliver any and all documents and necessary certificates which they may deem necessary or advisable in order to consummate the transaction represented by the Facility Lease and otherwise to carry out, give effect to, and comply with the terms and intent of this Resolution and the Facility Lease. Section 5 . This Resolution shall take effect from and after its adoption and approval . RESOLUTION NO. 89. 623 0231W PASSED AND ADOPTED this 19th day of September, 1989 , by the following vote: AYES: Supervisors Powers , Fanden, Schroder, McPeak, Torlakson NOES: None ABSENT: None X4&A Chair of the Board of Supervisors of the County of Contra Costa, State of California I hereby certify that the foregoing is a true and correct copy of an order entered on the minutes of said Board of Supervisors on the date aforesaid. Witness my hand and the Seal of the Board of Supervisors affixed this 19th day of September, 1989 . PHIL BATCHELOR, Clerk of the Board of Supervisors and County Administrator BY: Deputy Clerk cc: County Administrator General Services Lease Management 89/623 RESOLUTION NO. 0231W