TO: Board of Supervisors
FROM: Steven Lederer - Director of Public Works - Public Works
REPORT BY: Andrea Salter - Staff Services Analyst
SUBJECT: Amendment No. 3 to Lease Agreement No. 170069B and Amendment No. 4 to Lease Agreement No. 170068B with MKD Soscol Partners, LP located at 1710 Soscol Avenue, Building B
RECOMMENDATION
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Approve and authorize Amendment No. 3 to Lease Agreement No. 170069B for Suites 1, 3, and 4, and Amendment No. 4 to Lease Agreement No. 170068B for Suite 6 with MKD Soscol Partners, LP to extend the term of both agreements through June 30, 2028; update the cancellation provisions; expand the area of the leased premises; update the insurance provisions, with no change to the monthly rental fees in FY 24-25; and a continued 3% annual rental increase, for offices located at 1710 Soscol Avenue, Building B. (No Fiscal Impact; Discretionary)
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BACKGROUND
The Napa County Agricultural Commissioner and University of California Cooperative Extension (UCCE) have leased space at 1710 Soscol Avenue since 1998 for their operations.
Since July 1, 2013, under Lease Agreement No. 170069B, the Napa County Agricultural Commissioner, Glassy-Winged Sharpshooter Program, and University of California Cooperative Extension have leased 11,173 square feet of office space known as Suites 1,3, and 4 at 1710 Soscol Avenue.
Since April 5, 2011, under Lease Agreement No. 170068B, the County has leased an additional 1,353 square feet consisting of Suite 6 at 1710 Soscol Avenue to house the Napa County Agricultural Commissioner European Grapevine Moth Program (EGVM).
Both lease agreements are due to expire on June 30, 2025 with an option to extend for an additional 3 years through June 30, 2028. The amendments to the agreements are being requested related to an increase of vandalism in the parking lot at 1710 Soscol Ave that is used for County vehicles and staff parking. Amendment No. 3 to Lease Agreement No. 170069B and Amendment No. 4 to Lease Agreement No. 170068B will require MKD (Lessor) to construct and maintain an enclosed parking area within 6-months of execution of the amendment, expand the area of the leased premises to include this enclosed parking area in an effort to reduce damage to vehicles, extend the term of both Agreements to June 30, 2028, and in light of Lessor’s investment in developing secure parking, restrict the County’s rights to cancel or terminate the agreement. The monthly rent remains unchanged.
Requested Action:
1. Approve and authorize Amendment No. 3 to Lease Agreement No. 170069B for Suites 1, 3, and 4, and Amendment No. 4 to Lease Agreement No. 170068B for Suite 6 with MKD Soscol Partners, LP to extend the term of both agreements through June 30, 2028; update the cancellation provisions; expand the area of the leased premises; update the insurance provisions, with no change to the monthly rental fees in FY 24-25; and a continued 3% annual rental increase, for offices located at 1710 Soscol Avenue, Building B.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Approval of these lease agreements will allow for continued occupancy of Agricultural Commissioner and UCCE staff at 1710 Soscol Avenue and will require the lessor to construct and maintain a secure an enclosed parking area for County and staff vehicles. |
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Future fiscal impact: |
These lease agreements extend through June 30, 2028 and will be budgeted accordingly in future fiscal years. |
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Consequences if not approved: |
If the lease agreements are not approved, the landlord will not construct an enclosed parking area, County and staff vehicles will continue to be vandalized, and the Agricultural Commissioner and UCCE may seek alternative leased space. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.