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HomeMy WebLinkAboutMINUTES - 05082001 - HA.2 HA.,g HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO: BOARD OF COMMISSIONERS FROM: Robert McEwan, Executive Director DATE: May 8, 2001 SUBJECT: AUTHORIZE THE EXECUTIVE DIRECTOR TO ENTER INTO A LEASE EXTENSION AND ANY OTHER NECESSARY DOCUMENTS FOR OFFICE SPACE AT 2219 BUCHANAN ROAD, SUITES 5 & 6, ANTIOCH, CALIFORNIA. SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION I. RECOMMENDED ACTION: AUTHORIZE the Executive Director of the Housing Authority to execute a lease extension and any other necessary document with Douglas A. McPherson Enterprises, Inc. for 2219 Buchanan Road, Suites 5 & 6, Antioch, California. The rental is for a four-year term. II. FINANCIAL IMPACT: The term of the lease is four years (48 months). The rental costs for this lease shall be charged to the Aided, Section 8 Certificate and Housing Voucher Programs. Continuation of this lease at a rate that is equal to or less than market rates will avoid moving expense to the Housing Authority. III. REASONS FOR RECOMMENDATION/BACKGROUND The Housing Authority has leased approximately 2306 square feet of office space at 2219 Buchanan Road, Suites 5 & 6, Antioch, California for a little over twelve (12) years. This office serves a large portion of the Authority's Section 8 program for the East County. Family eligibility work, unit inspections, and other tasks related to administering the Section 8 program are conducted at this office. Our option to renew this lease has recently expired, necessitating the negotiation of a lease extension. IV. CONSEQUENCES OF NEGATIVE ACTION: Should the Board of Commissioners elect not to authorize the execution of this lease extension, the Housing Authority would be forced to attempt to locate other available office space, which would make the Housing Authority encounter unnecessary relocation expenses, or continue on a month to month basis at a much higher rental rate. CONTINUED ON ATTACHMENT: YES SIGNATURE RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON May 8, 2001 APPROVED AS RECOMMENDED XX OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A XX UNANIMOUS (ABSENT IV ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF COMMISSIONERS ON THE DATE SHOWN. ATTESTED May 8, 2001 JOHN SWEETEN,CLERK OF THE BOARD OF COMMISSIONERS AND COUNTY ADMINISTRATOR BY Y boandse.board r LEASE EXTENSION AND AMENDMENT DATED APRIL 6, 2001 This is an extension and amendment to the existing lease dated February 5, 1988, as amended, covering the premises commonly known as 2219 Buchanan Road, Suites 5 & 6, Antioch, California, between Douglas A. McPherson Enterprises, Inc., as Landlord and Housing Authority of the County of Contra Costa, as Tenant. Landlord and Tenant agree as follows, Article 3. TERM. The term of the Lease shall be extended for 4 years, commencing April 1, 2001 and expiring on March 31, 2005. Article 5. RENT. The base rent for the renewal year commencing April 1, 2001 will be $3,273.28 per month. Replace Article 27. COST OF LIVING. With: Article 27. COST OF LIVING. The rental payable on the first day of the month for each of the months during the last three years of the lease term to wit April, 2002, through March, 2005 shall be subject to adjustment at the commencement of such lease year to wit the first of April, 2002, 2003 and 2004, (the adjustment dates)for each such following year as follows: The base for computing the adjustment is the Consumer Price Indexfor all Urban Consumers (base year 1982-84= 100) for San Francisco: Oakland, - California, CPI-U, published by the United States Department of Labor, Bureau of Labor Statistics (index)which is published for the date nearest and prior to,the first of the month in which the initial term commenced (beginning index). If the index published nearest and prior to, the adjustment date (extension index) is increased over the beginning index, the monthly rental for the.following lease year shall be set by multiplying the monthly rent set forth above by a fraction, the numerator of which is the extension index and the denominator of which is the beginning index. In no case shall the monthly rental be less than the monthly rent set forth above. On adjustment of the monthly rent as provided in this Lease, the parties shall immediately execute an amendment to the Lease stating the new monthly rent. If the index is changed so that the base year differs from that used as of the date of execution of this Lease, the index shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the index is discontinued or revised during the term, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the index had not been discontinued or revised. 32. EARLY TERMINATION OF LEASE: Landlord grants to Tenant the right to terminate the Lease on March 31, 2002, 2003 and 2004 with written notification and payment of an early termination fee by the Tenant. The early termination fee is in addition to all rents, common area costs and taxes due in the lease through the termination date and is to be paid at the time written notice is delivered to Landlord. a. To terminate the Lease on March 31, 2002, Landlord must receive written notification from Tenant with a check in the amount of $15,290.09 (early termination fee) between the dates of February 1, 2002 through February 28, 2002, only. b. To terminate the Lease on March 31, 2003, Landlord must receive written notification from Tenant with a check in the amount of$10,127.93 (early termination fee) between the dates of February 1, 2003 through February 28, 2003, only. c. To terminate the Lease on March 31, 2004, Landlord must receive written notification from Tenant with a check in the amount of $4,965.77 (early termination fee) between the dates of February 1, 2004 through February 28, 2004, only. All other terms and conditions of the lease shall remain the same. Owner date Warren Zee Owner date Marion Zee Tenant: Housing Authority of the Contra Costa County By. date