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Approve the Workforce Development Board of Solano County Lease Addendum II for 16,033 square feet at 500 Chadbourne Road in Fairfield for a 5-year term effective October 1, 2024; and Authorize the President/Executive Director of the Workforce Development Board of Solano County to sign the agreement and any subsequent amendments which are administrative in nature
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Published Notice Required? Yes _ _ No X _ _
Public Hearing Required? Yes _ _ No _ X _
DEPARTMENTAL RECOMMENDATION:
The Workforce Development Board of Solano County (WDB) recommends that the Board of Supervisors:
1. Approve the Workforce Development Board of Solano County Lease Addendum II for approximately 16,033 square feet at 500 Chadbourne Road in Fairfield for a 5-year term effective October 1, 2024; and
2. Authorize the President/Executive Director of the Workforce Development Board of Solano County to sign the agreement and any subsequent amendments which are administrative in nature.
SUMMARY/DISCUSSION:
The current lease agreement for the WDB is set to expire September 30, 2024. Lease Addendum II will renew the current lease (Attachment B) for an additional five-year term for 16,033 square feet of office space.
At the April 23, 2019 meeting, the Board of Supervisors approved the relocation of the WDB’s Fairfield office from 320 Campus Lane to its current location at 500 Chadbourne Rd in Fairfield. WDB officially relocated June of 2019 with the current lease expiring September 30, 2024.
Terms of the five-year lease renewal are outlined below:
1. New lease term to be October 1, 2024 - September 30, 2029
2. Common Area Maintenance (CAM) to be billed at a rate of $0.77 per square foot ($12,345 per month). CAM includes the cost of utilities, association dues, general building maintenance and repairs (HVAC, roof, fire sprinkler, and elevator), exterior window washing, exterior security alarms, insurance, property taxes, property maintenance fees, and fiber optics data lines.
3. Monthly Base Rent (increase of 3% annually)
October 1, 2024 - September 30, 2025 $20,135 + CAM
October 1, 2025 - September 30, 2026 $20,740 + CAM
October 1, 2026 - September 30, 2027 $21,362 + CAM
October 1, 2027 - September 30, 2028 $22,003 + CAM
October 1, 2028 - September 30, 2029 $22,663 + CAM
5. Lease Renewal Option
The WDB will have a 5-year lease renewal option with not less than one hundred eighty (180) days prior written notice.
The Workforce Development Board approved the Lease Addendum II during their September 20, 2024 meeting.
FINANCIAL IMPACT:
The WDB submits a plan for grant activities, service levels, and use of funds to the State of California on behalf of the County. The State allocates Federal money to the WDB through the County based on predetermined funding formulas. Facilities costs will be covered through Workforce Innovation and Opportunity Act (WIOA) and other contract funds, and all future budgets will include sufficient funds to cover these lease costs. The WDB does not receive General Funds from the County.
ALTERNATIVES:
The Board may choose not to approve or authorize signature of the lease addendum and remand the lease back to the Workforce Development board for modifications. This is not recommended as competitive lease terms have been successfully negotiated and service delivery will be greatly enhanced to the County’s job seekers at its current location.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION