Item Coversheet

REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS


BOARD MEETING DATE:  May  23, 2017
CATEGORY:  Consent - General Government-2.

SUBJECT:

Storage Lease Agreement with Stillwater Properties, LLC.

DEPARTMENT: Administrative Office

Supervisorial District No. :  All

DEPARTMENT CONTACT:  Laura Sumner, Administrative Analyst (530) 225-5561

STAFF REPORT APPROVED BY:  Laura Sumner, Administrative Analyst

Vote Required?

Simple Majority Vote
General Fund Impact?

No Additional General Fund Impact 

RECOMMENDATION

Approve and authorize the Chairman to sign a renewal lease agreement with Stillwater Properties, LLC in the amount of $8,416 per month (approximately $0.40 per square foot) for 21,040 square feet of basement storage space located at 1400, 1500, and 1550 California Street for the period July 1, 2017 through June 30, 2019 with three optional two-year extensions with annual increases of $0.01 per square foot.

SUMMARY

These actions will terminate the County's existing lease for basement storage space set to expire on September 30, 2017 and renew the lease with a start and end date that corresponds with the Countys' fiscal year schedule and reduce the current cost per sq ft by $0.02 for the initial term of the agreement from July 1, 2017 through June 30, 2019.

DISCUSSION

Shasta County has leased basement space at 1400/1500/1550 California Street since the early 1990s.  Although many departments have records retention resolutions allowing destruction of various records, some records are required by statute to be kept for a particular period of time or even permanently.  Some departments also utilize their space to store large items.  Currently, Social Services, Public Health, Clerk of the Board, County Counsel and Public Works utilize storage space at this location.

 

As the Board is aware, Shasta County also leases the main floor of the building at 1400/1500/1550 California Street, making this storage space area exceptionally convenient and efficient for those Health and Human Services programs.  The County leases the entire basement of the building and there is no public access.  The delineated areas are secure and key access is required to enter the basement storage area.

 

The two-year initial term and three two-year optional extensions allow for flexibility should there be funding issues.  Also, departments can interchange their space in response to changing needs.  In addition to the standard fiscal termination language, the owner has agreed to language allowing for the County to have the option to reduce the amount of leased space during the initial term or extensions if needed.

 

For efficiency, the rent payments to Stillwater Properties, LLC are processed by the County Administrative Office, charging participating County departments the appropriate amount for the storage space utilized. 

ALTERNATIVES

The Board may choose not to renew the lease or modify the terms. This is not recommended as the renewal lease allows for further efficiency for lease payments and departments can satisfy their additional storage needs in a convenient and secure area.

OTHER AGENCY INVOLVEMENT

The participating departments were consulted during the lease renewal process as the CAO's office negotiated this lease.  County Counsel and has approved the lease as to form.  Risk management has approved the lease.  

FINANCING

Lease payments for this space are included in the FY17/18 budget by the participating departments.  No additional General Fund is required for the recommended actions.

ATTACHMENTS:
DescriptionUpload DateDescription
Real Property Lease 1400 1500 1550 Calif St5/10/2017Real Property Lease 1400 1500 1550 Calif St