HomeMy WebLinkAboutMINUTES - 09092003 - C.116 TO: BOARD OF SUPERVISORS V CONTRA
FROW BARTON J. GILBERT, DIRECTOR OF GENERAL SERVICES ', COSTA
DATE: SEPTEMBER 9, 2003 COUNTY
SUBJECT: FIRST AMENDMENT TO LEASE WITH PINOLE TERRACE, LLC G.'.I&
FOR 2586 APP'IAN WAY, P'1NOLE FOR THE HEALTH SERVICES
DEPARTMENT (T00311)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION
APPROVE the First Amendment to the October 27, 1998 lease with Pinole Terrace, LLC for the
premises at 2586 Appian Way, Pinole for continued occupancy by the Health Services Department
and AUTHORIZE the Director of General Services, or designee, to EXECUTE the Amendment and
EXERCISE any extensions to the lease.
FINANCIAL IMPACT
The lease payments have been reduced $175 per month for the two-year extension term of
November 1, 2003 through October 31, 2005, resulting in a total savings of $4,200. Lease payments
are budgeted in the Health Services Department Budget.
BACKGROUND
The Health Services Department Tri-City Discovery Drug Program has occupied 2586 Appian Way
since November 1, 1998. The term of the lease expires October 31, 2003 and the County has an
option to extend the lease for an additional two year term. The rental for the extension period was to
increase to $3,860 per month from $3,350 per month during the lease term. The lessor has agreed
to a reduction during the extension period to $3,685 per month for the first extension term of
November 1, 2003 through October 31, 2005. The lessor has also agreed to provide the County with
the following two additional extension terms at specified rental amounts: November 1, 2005 through
October 31, 2007 at a rental of$3,860 per month and November 1, 2007 through October 31, 2009 at
a rental of $4,000 per month. This First Amendment provides for reduction of rent for the first
extension period and then provides for two additional two-year extension options to October 31,
2009.
CONTINUED ON ATTACHMENT: YES SIGNATURE.:
,:::':RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
_,'APPROVE OTHER
SIGNATURE(S):
ACTION OF BO D)N > ' �'" APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
y UNANIMOUS(ABSE
AYES: NOES:
ABSENTS: ABSTAIN:
MEDIA CONTACT:BARTON J.GILBERT(313-7100)
Originating Dept.:General Services Department I HEREBY CERTIFY THAT THIS IS A TRUE
cc: General Services Department AND CORRECT COPY OF AN ACTION TAKEN
Lease Managementt Division oAND ENTERED THE MINUTES OF THE BOARD
Accounting OF S,PERVISO ,ON THE DATE SH.WN.
Auditor-Controller(via L/M) >;,;
Risk Management(via UM) ATTESTED !#,✓ rrYt/v /� (` —
Health Services Department(via UM) �OHN tWEETEN,CLERK OFTHE
fd'OARL OF SUPERVISORS
Pinole terrace,LLC(via UM) COUNTY ADMINISTRATOR
BY24AND
� . r DEPUTY
I:\LeaseMgt\CAROL\2586AppianAmendmentbo.doc Page 1 of 2 M382(10188)
FIRST AMENDMENT TO LEASE
2586 APPIAN WAY
PINOLE, CALIFORNINA
1. EFFECTIVE DATE AND PARTIES: Effective on September 9,2003, PINOLE
TERRACE,LLC,hereafter called"LESSOR" and the COUNTY OF CONTRA.COSTA,a
political subdivision of the State of California,hereinafter called"COUNTY"mutually agree
and promise as follows:
2. PURPOSE: Both parties desire to amend that Lease entered into between LESSOR.
and COUNTY, dated October 27, 1998, for the premises located at 2586 Appian Way,
Pinole, CA, consisting of approximately 2,370 square feet of office space. Both LESSOR
and COUNTY desire to amend that Lease dated October 27, 1998 in order to modify the
rental amount during the first extension term and add two additional two(2)year extension
terms.
3. AMENDMENT:
Paragraph A.5. EXTENSION shall be deleted in its entirety and replaced with the
Following:
A.5. EXTENSION: This Lease may, at the option of the COUNTY, be extended
upon the same terms and conditions, except the rental shall be adjusted as follows:
A. First Option: For a two (2) year term commencing November 1, 2003 and
ending October 31, 2045 at a rental of THREE THOUSAND SIX HUNDRED
EIGHTY FIVE AND NO/100 DOLLARS ($3,685.00) per month.
B. Second Option: For a two (2) year term commencing November 1, 2005 and
ending October 31, 2007 at a rental of THREE THOUSAND EIGHT HUNDRED
SIXTY AND NO/100 DOLLARS ($3,860.00) per month.
C. Third Option: For a two (2) year term commencing November 1, 2007 and
ending October 31, 2009 at a rental of FOUR THOUSAND AND NO/100
DOLLARS ($4,000.00) per month.
G.\LeaseMgt\CAROL\AppianWayAmendment.doc
It is understand and agreed COUNTY shall give LESSOR sixty(60)days prior
written notice of its intention to exercise its option to extend this Lease. However,in
the event that COUNTY does not give such written notice, its right to exercise the
option before the termination of the Lease shall not expire until fifteen(15)days after
receipt of LESSOR'S written demand to exercise or forfeit said option.
4. EFFECT: Except for the Amendment agreed to herein, the Lease of October 27, 1998
remains in full force and effect.
IN WITNESS WHEREOF,the parties have executed the Amendment to Lease as of the day
and year first written hereinabove.
COUNTY LESSOR
COUNTY OF CONTRA COSTA, a PINOLE TERRACE, LLC
Political subdivision of the State of
California
By ��� B ..r.
i
Director of General Services Atli , Magg
i
a"
By _ r �° - BY
AMC 0
Z7i+ re - tal r of Ca cili es Dim M
Debt Management �-
I3y /
Lease Manager
By
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Health Se ices Department Representative
APPROVED AS TO FORM:
SILV NO B. MARCHESI, County Counsel
By �,-
Deputy
G:\LeaeeMcgt\CAROL\AppianWayAmendment.doc