Title
[Second Lease Amendment] Warehouse for City of Sacramento Flood Fighting Equipment
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FileID
File ID: 2026-01304
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Location
Location: 6150 27th Street, District 5
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to execute a Second Amendment to Industrial Lease Agreement (City Agreement 2020-4289) with Jerrold H. Cook and Carmen M. Cook Revocable Trust for a three-year term with the option of one three-year extension of term, for a total amount not to exceed $485,793.13, if the extension is exercised.
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Contact
Contact: Steve Ward, Real Property Agent, (916) 808-1081, stward@cityofsacramento.org; Rich Sanders, Facilities & Real Property Superintendent, (916) 808-7034, rsanders@cityofsacramento.org; Department of Public Works
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Second Amendment to Industrial Lease Agreement with Jerrold H. Cook and Carmen M. Cook Revocable Trust
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Description/Analysis
IssueDetail
Issue Detail: The City has leased the warehouse located at 6150 27th Street since 1997 to store flood-fighting equipment such as sandbags. The lease was executed on July 1, 2020, and a “First Amendment” extending the contract by three years was executed on May 30, 2023. The City’s current lease for the premises expired on June 30, 2026; however, the City and landlord now desire to amend the lease for a three-year term with an option to extend for another three-year term.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with City Code Chapter 3.04.020, which require City Council approval for amendments that increase the contract amount by more than $250,000, and are consistent with prior council decisions supporting participation in local, state and national disaster assistance programs.
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EconomicImpacts
Economic Impacts: None
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EnvironmentalConsiderations
Environmental Considerations: The leasing of space in the ordinary course of City operations is a continuing administrative activity and is not considered a project under the California Environmental Quality Act (CEQA), in accordance with CEQA Guidelines section 15378(b)(2).
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Sustainability
Sustainability: Not applicable
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Commission/Committee Action
Commission/Committee Action: Not applicable
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RationaleforRecommendation
Rationale for Recommendation: The Department of Utilities and Department of Public Works are responsible for organizing, equipping, and maintaining the City’s flood fighting equipment, training City personnel, and mobilizing the resources upon the threat of flooding. Flood fighting equipment has been stored at the current warehouse location at 6150 27th Street since 1997. This warehouse allows for a centralized location to store and distribute flood fighting equipment. Surplus warehouse space within existing City warehouse facilities is unavailable to house this equipment. The lease agreement will allow the City to continue its mission of fighting floods, store flood-fighting equipment and vehicles, and deploy sandbags to City residents if necessary.
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FinancialConsiderations
Financial Considerations: The lease agreement between the City and Jerrold H. & Carmen M. Cook Revocable Trust will be for a three-year period with a monthly rent of $6,337.58 with 2.5% annual escalations. This rental rate is consistent with other warehouse properties of similar size/quality. In addition, there is an option to extend for one three-year period with a 2.5% annual escalation to rent. The total cost for the initial three-year lease period is $233,904.05. Total potential cost of this lease agreement, if the extension is exercised, would be $485,793.13.
Rent Schedule
|
MONTHS |
DATE RANGE |
MONTHLY RENT |
ANNUAL RENT |
|
Extended Term |
|
73-84 |
07/01/2026 - 06/30/2027 |
$6,337.58 |
$76,050.90 |
|
85-96 |
07/01/2027 - 06/30/2028 |
$6,496.01 |
$77,952.17 |
|
97-108 |
07/01/2028 - 06/30/2029 |
$6,658.41 |
$79,900.98 |
|
Option Term |
|
109-120 |
07/01/2029 - 06/30/2030 |
$6,824.88 |
$81,898.50 |
|
121-132 |
07/01/2030 - 06/30/2031 |
$6,995.50 |
$83,945.96 |
|
133-144 |
07/01/2031 - 06/30/2032 |
$7,170.38 |
$86,044.61 |
*Calculations based on 11,200 square feet
Sufficient funds are available in the Fiscal Year 2027/2028 Department of Public Works, Maintenance Services Operating Budget and the Fiscal Year 2027/28 Department of Utilities, Wastewater and Drainage Operating Budget to execute the Second Amendment to Industrial Lease Agreement with Jerrold H. & Carmen M. Cook Revocable Trust for a total amount not to exceed $485,793.13. The payments will be equally split between the two departments. Funding in future fiscal years is subject to availability of funds in the adopted budgets for the respective fiscal years.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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