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Approve the Workforce Development Board of Solano County Lease Agreement for 2,175 square feet at 1440 Marin Street in Vallejo for a 5-year term effective July 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 (WDB) of Solano County recommends that the Board of Supervisors:
1. Approve the Workforce Development Board of Solano County Lease Agreement for 2,175 square feet at 1440 Marin Street in Vallejo for a 5-year term effective July 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 WDB is entering a lease with the California General Services Department for 2,175 square feet of cubicle space, training room space, and shared common space at the State Employment Development Department (EDD) managed site at 1440 Marin Street, Vallejo, which serves as Solano’s comprehensive America’s Job Center of California (AJCC) location.
The WDB has been renting space in the building since 2014; this replacement lease reduces space for program services, due to the ending of contracts. A space reconfiguration was agreed upon between EDD and the WDB.
The current lease agreement for the Vallejo site of the WDB expired September 30, 2022. Due to disagreement on space usage, the WDB has not paid rent since the expiration of the last lease. The WDB negotiated a past due amount to settle occupancy from October 1, 2022 - June 30, 2024 of $61,730.55, which is a reduction of $37,623.18. The WDB has agreed to pay a lump sum of $35,274.60, which is equal to 12 months of past rent, to be paid at the beginning of the new lease term. The remaining balance of past rent will be incorporated into the operating costs of the new lease renewal and amortized over the first 48 months of the lease term, beginning July 2024. After 48 months, the monthly rent will decrease to an adjusted amount that is in alignment with actual price per square foot operating costs.
Lease processing started with EDD and WDB identifying appropriate space in the building, which was conveyed to EDD’s Business Operations Division for preparation of the floor plan, which was then passed to the State General Services Department for lease finalization and approval. Delays in processing are only now providing a lease document for a period that began July 1, 2024.
Terms of the five-year lease are outlined below:
1. Term: July 1, 2024 - June 30, 2029
2. Space: 2,175 sq. ft.
3. Cost: $2.27 per square foot
4. $5,488.42 monthly rent from July 1, 2024 through June 30, 2028
5. $4,937.25 from July 1, 2028 through June 30, 2029
The Workforce Development Board approved the Lease Agreement during their November 15, 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 the signature of the lease 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.
OTHER AGENCY INVOLVEMENT:
None.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION