TO: Board of Supervisors
FROM: Steven Lederer - Director of Public Works
REPORT BY: Andrea Salter - Staff Services Analyst I
SUBJECT: Amendment No. 9 to Lease Agreement No. 170067B for the Records Center
RECOMMENDATION
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Director of Public Works requests approval of and authorization for the Chair to sign Amendment No. 9 to Lease Agreement No. 170067B with Rockwater, LLC for 994 Kaiser Road, Unit A, known as the Records Center, to extend the term for one additional year through June 30, 2024, and to adjust the monthly rental fee to $9,000 beginning July 1, 2023 for continued use as a records storage facility.
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EXECUTIVE SUMMARY
Since July 1, 2000, the County has leased approximately 6,000 square feet of space known as Unit A (Warehouse) at 994 Kaiser Road. On April 25, 2006, approximately 2,240 square feet of additional space known as Unit B (Annex) was added to the lease, for a total leased area of approximately 8,160 square feet, for front office, storage, and warehouse space for Records Management. On December 31, 2018, the lease of Unit B was terminated at the property owner’s request. Overflow space for records storage has been made available at the County’s South Campus located at 2721 Napa Valley Corporate Way (Building 4). Records Management has been engaged in a records digitization process to reduce the physical capacity needs for records and expects that all boxes from 994 Kaiser Road and 90% of boxes at 2721 Napa Valley Corporate Drive will be stored with an outside vendor by May 31, 2024. In the meantime, Records Management needs to continue to occupy Unit A for their main records storage. Approval of Amendment No. 9 will extend the lease for one additional year and adjust the monthly rental rate to $9,000 beginning on July 1, 2023, through June 30, 2024.
FISCAL & STRATEGIC PLAN 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? |
ITS-Records Management |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Approval of this amendment will allow for County's continued use of leased space for its Mail Processing and Records Storage needs. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
The cost of the lease will be included in future ITS-Records Management Budgets. Cost to store records at South Campus will be included in the Annual Property Management Allocation. |
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Consequences if not approved: |
The County would continue to occupy Unit A for an additional three years without the flexibility for early termination. |
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County Strategic Plan pillar addressed: |
Effective and Open Government |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: It has been determined that this type of project does not have a significant effect on the environment and is exempt from the California Environmental Quality Act. [See Class 1 (“Existing Facilities”) which may be found in the guidelines for the implementation of the California Environmental Quality Act at 14 CCR §15301; see also Napa County’s Local Procedures for Implementing the California Environmental Quality Act, Appendix B.]
BACKGROUND AND DISCUSSION
Records Management occupies approximately 6,000 square feet of front offices, storage and warehouse area located at 994 Kaiser Road. A portion of the space is used as the County's Mail Processing Center. The property at 994 Kaiser Road changed ownership in 2016 and the County has worked successfully with the new owners to continue operations. Records Management has been evaluating vendors to outsource the storage of paper records, located at 994 Kaiser Road, that are awaiting digitization. It was determined that costs and risk could be reduced by using a vendor to handle the long-term storage of paper records. Outsourcing allows records storage costs to go down as inventory is reduced. In addition, the inherent risks of having staff work in a warehouse environment are removed. Records Management expects that all boxes from 994 Kaiser Road and 90% of 2721 Napa Valley Corporate Drive will be stored with an outside vendor by May 31, 2024. Considering these reduced future needs, the County engaged the property owners in a negotiation to reduce the extension period of the lease for Unit A and meet their request for reducing the County's overall footprint within the building.
The proposed amendment will allow the County to retain the lease for Unit A through June 30, 2024, for its Mail Processing Center and to store documents waiting electronic digitization. Unused space available at 2721 Napa Valley Corporate Drive, also known as Building 4, can continue to be used for additional records storage for an interim period as the Records Management staff continue to progress on their digitization project.
Staff requests Board approval of Amendment No. 9 to Lease Agreement No. 170067B to extend the term of the lease for one additional year, through June 30, 2024, and to adjust the monthly rental amount to $9,000 beginning July 1, 2023.