Agenda

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C. 15

To:	Board of Supervisors
From:	Brian M. Balbas, Public Works Director/Chief Engineer
Date:	August 8, 2023

Contra

Costa

County

Subject:

Rental of County-Owned Property to New Horizons Career Development Center.

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 08/08/2023

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Ken Carlson, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Julin Perez, (925) 957-2485

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: August 8, 2023
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Public Works Director, or designee, to execute a month-to-month rental agreement between the County, as landlord, and New Horizons Career Development Center (New Horizons), as tenant, for approximately 2,400 square feet of office space located at 199 Parker Avenue in Rodeo, at a monthly rent of $2,800.00.


AUTHORIZE the Public Works Director, or designee, to issue a 30-day notice of termination, thereby terminating the rental agreement, if New Horizons fails to comply with the material terms of the rental agreement.

RECOMMENDATION(S): (CONT'D)

AUTHORIZE County Counsel to pursue legal action to regain possession of the property if the rental agreement is terminated by the County.

FISCAL IMPACT:

New Horizons Career Development Center will pay rent to the County in the amount of $2,800.00 per month. Rent payments will be deposited into the General Fund (100% General Fund Department; Org # 4303).

BACKGROUND:

The County and New Horizons are parties to a lease dated November 19, 2014, under which New Horizons is currently occupying the subject property. The lease term ended on May 31, 2015. New Horizons has continued to occupy the premises as a holdover tenant on a month-to-month basis since then. Staff estimates the rent being paid under the terms of the 2014 lease to be less than the market rental value of the property.

On January 10, 2023, this Board approved an action to (i) terminate New Horizons’ occupancy of the premises under the terms of the 2014 lease, and (ii) negotiate a new lease with the same or a different tenant at a market rental value.

On May 25, 2023, the County issued a 60-day termination notice to New Horizons. If the proposed rental agreement is approved, it will take effect August 1, 2023, and replace the 2014 lease. Under the new rental agreement, New Horizons will pay $2,800 per month on a month-to-month basis. With a month-to-month agreement, either party can terminate the agreement by giving a 30-day notice to the other party.

Because the County has experienced late rent payment by this tenant on multiple occasions under the 2014 lease, staff recommends delegating authority to the Public Works Director to terminate the rental agreement if the tenant fails to comply with the material terms of the rental agreement. The termination would be communicated by a 30-day notice to the tenant. If the tenant were to fail to surrender the premises upon termination of the rental agreement, County Counsel would pursue legal action to regain possession of the property.

CONSEQUENCE OF NEGATIVE ACTION:

If the new rental agreement is not approved, the tenant will be required to relinquish the property based on the termination notice issued on May 25, 2023. The property will then become vacant until a County department or a new commercial tenant is identified to occupy the premises.