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C. 51

To:	Board of Supervisors
From:	Brian M. Balbas, Public Works Director/Chief Engineer
Date:	July 9, 2019

Contra

Costa

County

Subject:

APPROVE the First Amendment to the Amended and Restated Lease for 642 Port Chicago Highway, Bay Point.

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 07/09/2019

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

ABSENT:

John Gioia, District I Supervisor

Contact:

Stacey Sinclair, 925. 957-2464

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: July 9, 2019
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Public Works Director, or designee, to execute, on behalf of the County, a First Amendment to the Amended and Restated Lease between the County and Shore Acres, Inc., to increase the monthly rent paid under the lease dated June 25, 2013, by $400 to a new monthly rent of $600, and extend the term through March 31, 2021, for approximately 825 square feet of office space located at 642 Port Chicago Highway, Bay Point.

FISCAL IMPACT:

100% General Fund. The amendment will increase the amount of rent paid under the lease by $4,800 per year.

BACKGROUND:

The Sheriff-Coroner has provided police services to the Bay Point community from this location since December 1998. The property was sold in a foreclosure sale in May 2017. Upon acquiring the property, the new owner could have terminated the lease and made the property available to the market at its fair market value. Instead, the new owner is requesting an increase in rent from $200 per month to $600 per month. While the percentage increase is significant, the new rental rate is still below market.

Approval of the First Amendment to the Amended and Restated Lease will allow the lease to continue on an automatic renewal every two years to provide for continued police services by the Sheriff to the Bay Point community. The County may cancel this lease with a thirty-day notice to the Lessor.

CONSEQUENCE OF NEGATIVE ACTION:

Not authorizing the amendment of the Amended and Restated Lease for the continued operation of the Sheriff-Coroner’s substation at this location would require finding another suitable location at significantly increased rent, together with the associated expenses of moving and constructing new tenant improvements.