HomeMy WebLinkAboutMINUTES - 01242006 - C.50 `
To: BOARD OF SUPERVISORS == CONTRA
'A-
FROM: MICHAEL J. LANGO, DIRECTOR OF GENERAL SERVICES ' -' 's COSTA
DATE: JANUARY 24, 2006COUNTY
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SUBJECT: LEASE AMENDMENT FOR THE PREMISES AT 2120 DIAMOND
BOULEVARD, CONCORD FOR THE HEALTH SERVICES
DEPARTMENT (T00542) C , '50
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION
1. APPROVE the Second Amendment to the Lease dated April 27, 1999 with the CUNA Mutual Life
Insurance Company for the premises at 2120 Diamond Boulevard, Concord to expand the premises by
4,233 square feet and to extend the term for the existing 9,762 square feet for five years through
December 31, 2011 for continued occupancy by the Health Services Department, under the terms and
conditions more particularly set forth in the Lease.
2. AUTHORIZE the Director of General Services, or designee, to EXECUTE the Second Amendment and
to EXERCISE any future options to extend the Lease.
FINANCIAL IMPACT
The annual rent payment for the additional 4,233 square feet of office space is $92,703 and is budgeted in the
Health Services Department approved FY 2005/2006 budget. The annual rent payments for the 9,762 square
feet of existing office space is $226,287, which represents a decrease of $10,177 per year over the renewal
period compared to the current rent payment obligation. The total financial obligation for rent payments
associated with the recommended action will be $1,922,415 over the six-year term of the Lease, which will be
budgeted by the Health Services Department on an annual basis of approximately $323,285 per year.
The additional office space will require tenant improvements prior to occupancy by the Health Services
Department. These improvements, including furniture and equipment, will cost an estimated $304,000, of
which $129,000 will be paid for by CUNA Mutual Life Insurance Company. The remaining $175,000 in
improvements costs will be funded from the current year facilities budget of the Health Services Department.
BACKGROUND
'The County has leased the premises since April 1999 for operation by the Environmental Health Division of the
Health Services Department. The Second Amendment will increase the leased premises from 9,762 square
feet to 13,995 square feet and extend the lease term for an additional five years. The Lease payment includes
the"cost of utilities and building maintenance services.
ATTACHMENT: YES SIGMAX
<COMMENDATION OF COUNTY ADMINISTRATOR -RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S): !1�, XER
ACTION OFBOARD APPROVED AS RECOMMENDED
VOTE OF SUPERVISORS
UNANIMOUS(ABSENT )
AYES: NOES:
ABSENTS: ABSTAIN:
MEDIA CONTACT: MICHAEL J.LANGO(313-7100)
Originating Dept.:General Services Department
cc: General Services Department AND
HEREBY CERTIFY THAT THIS ISA TRUE
Lease Management Division AND CORRECT COPY OF N ACTION TAKEN
g AND ENTERED ON THE INUTES OF THE BOARD
Accounting OF SUPERVISORS O HE DATE SHOWN.
Auditor-Controller(via L/M)
Risk Management(via UM) ATTESTED [�
Health Services Department(via UM) J E TEN,CLERK F THE BOARD OF SUPERVISORS
CUNA Mutual Life Insurance Company(via UM) COUNTY ADMINIS RA OR
BY DEPUTY
IALeaseMgt\Board Orders\2006-01-24\2120 Diamond BlvdBO.doc DS:amc