SUBJECT
Title
GENERAL SERVICES - APPROVAL OF FIRST AMENDMENT TO GROUND LEASE FOR AGRICULTURE, WEIGHTS AND MEASURES, 325 S. MELROSE DRIVE, VISTA, AND NOTICE OF EXEMPTION (DISTRICT: 5)
Body
OVERVIEW
On July 18, 2018, the Director, Department of General Services (DGS), administratively approved a ground lease agreement with the Judicial Council of California (JCC) for a trailer that houses Agriculture, Weights and Measures’ (AWM) Pest Detection Program. The ground lease expired on June 30, 2023, and is currently on holdover, which has allowed the County to continue occupancy on a month-to-month basis while an amendment was negotiated.
Staff from DGS have negotiated an amendment for the AWM trailer to extend the term of the ground lease. Since the proposed term length exceeds administrative authority of 5 years, Board of Supervisors (Board) approval of the amendment is required. Today’s request is for Board approval of the amendment.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
1. Find the proposed ground lease amendment for the Agriculture, Weights and Measures Pest Detection Program is exempt from the California Environmental Quality Act (CEQA) Guidelines pursuant to State CEQA Guidelines Section 15301.
2. Approve and authorize the Director, Department of General Services, to sign the proposed ground lease amendment for premises located at 325 S. Melrose Drive, Vista, California.
EQUITY IMPACT STATEMENT
It is anticipated that the proposed lease amendment for the Agriculture, Weights and Measures Pest Detection Program will have a positive impact on the community by providing early detection and prompt eradication of invasive agricultural pests and supporting agricultural trade and the food supply.
SUSTAINABILITY IMPACT STATEMENT
Implementing effective sustainability objectives are crucial to ensuring safe and healthy communities and contributing to the overall success of the region. The approval of this ground lease amendment is appropriate as it supports the County’s Strategic Initiative of Sustainability to ensure the capability to respond to the immediate needs of individuals, families, and the region.
FISCAL IMPACT
Funds for the request are included in the Fiscal Year 2023-24 Operational Plan for Agriculture, Weights and Measures. If approved, this request will result in current year costs of approximately $4,706 based on an amendment commencement date of July 1, 2023. Fiscal Year 2024-25 costs are estimated at $28,452 which includes a 4% rent adjustment to go into effect July 2024. Funds for the remaining contract term and each option year, if exercised, will be included in future years’ operational plans for Agriculture, Weights and Measures. The funding sources are State Supplemental Funding and General Purpose Revenue. There will be no change in net General Fund cost and no additional staff years.
BUSINESS IMPACT STATEMENT
N/A
Details
ADVISORY BOARD STATEMENT
N/A
BACKGROUND
On July 18, 2018, the Director, Department of General Services (DGS), administratively approved a ground lease agreement with the Judicial Council of California (JCC) for a trailer that houses the Agriculture, Weights and Measures (AWM) Pest Detection Program. Six program staff located at this site conduct pest trapping and detection in North San Diego County. Staff set and inspect traps to detect invasive insect pests that can harm the agricultural industry, food supply, environment, and natural landscapes. They specifically look for pests such as exotic fruit flies that could cause harm to regional crops and interrupt agricultural trade. The program is part of a statewide effort to detect and eradicate invasive pests that have the potential to cost California agriculture more than $3.0 billion annually in agricultural losses. The Pest Detection Program has a need to continue operating from this location.
The ground lease expired on June 30, 2023, and there are no options to extend. In the process of establishing a new lease, the need for additional time for legal reviews and negotiations was identified. The County exercised the holdover clause in the lease while mutually agreeable terms were negotiated. The holdover clause allowed the County to continue occupancy under the existing terms of the lease on a month-to-month basis. Staff from DGS have negotiated an amendment for the AWM trailer to extend the term of the ground lease.
Details of the proposed first amendment to ground lease are as follows:
|
LEASE PROVISION |
EXISTING LEASE |
PROPOSED LEASE AMENDMENT |
|
LESSOR |
Judicial Council of California |
No change |
|
PREMISES |
Approximately 1,770 square feet of ground space located at 325 S. Melrose Drive, Vista |
No change |
|
TERM |
5 years total |
10 years total |
|
OPTIONS TO EXTEND TERM |
None |
2 five-year options |
|
RENT ADJUSTMENTS |
4% annually |
No change |
|
EARLY TERMINATION |
None |
Yes, mutual with 180 days’ notice |
|
UTILITIES |
County pays |
No change |
|
MAINTENANCE |
County pays |
No change |
|
CUSTODIAL |
County pays |
No change |
|
MONTHLY OCCUPANCY COST Rent Utilities Maintenance Custodial TOTAL OCCUPANCY COST PER MONTH |
$ 455.56 $ 943.35 $ 581.47 $ 372.40 $2,352.78 |
$ 455.56 $ 943.35 $ 581.47 $ 372.40 $2,352.78 |
ENVIRONMENTAL STATEMENT
The proposed ground lease amendment is categorically exempt from environmental review pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines because it involves the ground lease for the continuation of an existing use at an existing facility that would have no permanent effects on the environment and does not involve the expansion or change of the existing use.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s proposed action to approve the ground lease amendment for the Agriculture, Weights and Measures trailer supports the Sustainability and Community Initiatives in the County’s 2024-2029 Strategic Plan by providing services that support safe communities.
Respectfully submitted,
SARAH E. AGHASSI
Interim Chief Administrative Officer
ATTACHMENT(S)
Attachment A: Notice of Exemption