TO: Board of Supervisors
FROM: Steven Lederer - Director of Public Works
REPORT BY: Andi Salter - Staff Services Analyst
SUBJECT: Amendment No. 5 to Lease Agreement No. 170066B with Joseph and Rosemarie Keebler and the David and Jane Meyers, Trustees of the David and Jane Meyers Revocable Trust dated June 17, 1997.
RECOMMENDATION
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Approve and authorize Amendment No. 5 to Lease Agreement No. 170066B with Joseph and Rosemarie Keebler and the David and Jane Meyers, trustees of the David and Jane Meyers Revocable Trust dated June 17, 1997, increasing the monthly rent by $50 each fiscal year commencing July 1, 2028, extending the lease term through June 30, 2032, updating the insurance provisions, and correcting the names of the Lessor parties for space located at 1754 Second Street, Suite D, Napa for use by the Napa County Grand Jury. (Fiscal Impact: $18,909 Expense; General Fund, Budgeted; Discretionary)
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BACKGROUND
On December 1, 2008, the Board approved Lease Agreement No. 6162, followed by Lease Agreement No. 6162-1 on July 1, 2011, with the Joseph and Rosemarie Keebler Revocable Trust and the David and Jane Meyers Revocable Trust dated June 17, 1997, for Suite D at 1754 Second Street, Napa for use by the Grand Jury. On June 24, 2014, the County entered into Amendment No. 1 to extend the term through June 30, 2016. On May 24, 2016, the County entered into Amendment No. 2 to extend the term through June 30, 2021. On June 8, 2021, the County entered into Amendment No. 3 to extend the term through June 30, 2022, reduce the monthly rental fee, update the mailing address and renumber the Lease to Agreement No. 170066B. On June 7, 2022, the County entered into Amendment No. 4 to extend the term through June 30, 2027, and adjust the rental fee accordingly.
Amendment No. 5 will update the liability insurance provisions, correct the Lessor parties to accurately reflect the legal owners of the Leased Premises as Joseph and Rosemarie Keebler (rather than Joseph and Rosemarie Keebler Revocable Trust) and David and Jane Meyers, trustees of the David and Jane Meyers Revocable Trust dated June 17, 1997 (rather than David and Jane Meyers Revocable Trust dated June 17, 1997), extend the term of the lease through June 30, 2032, and provide the following rental fee adjustments (with no change to the monthly rent for the period July 1, 2026 to June 30, 2027):
Term Monthly Annually
July 1, 2026, through June 30, 2027 $1,575.71 $18,908.52
July 1, 2027, through June 30, 2028 $1,575.00 $18,900.00
July 1, 2028, through June 30, 2029 $1,625.00 $19,500.00
July 1, 2029, through June 30, 2030 $1,675.00 $20,100.00
July 1, 2030, through June 30, 2031 $1,725.00 $20,700.00
July 1, 2031, through June 30, 2032 $1,775.00 $21,300.00
REQUESTED ACTION:
Approve and authorize Amendment No. 5 to Lease Agreement No. 170066B with Joseph and Rosemarie Keebler and the David and Jane Meyers, trustees of the David and Jane Meyers Revocable Trust dated June 17, 1997 to extend the term of the lease through June 30, 2032, with a continued monthly rental fee of $1,575 per month through June 30, 2028, and a $50 annual increase per fiscal year for the remainder of the lease, update the liability insurance provisions, and correct the identification of the Lessor parties.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Sub-division 1280000 Grand Jury |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Although the lease at this location is discretionary, the County is required to provide office space for the Grand Jury to conduct their business. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
This lease agreement extends through June 30, 2032. Appropriations will be budgeted accordingly in future fiscal years. |
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Consequences if not approved: |
If the lease is not approved, the County will be required to find alternative appropriate office space for the Grand Jury. |
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County Strategic Plan pillar addressed: |
Build Healthy, Connected Communities |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is exempt from the California Environmental Quality Act pursuant to Section 15301 of Title 14 of the California Code of Regulations (State CEQA Guidelines), which exempts the operation and leasing of existing facilities.