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Agenda Item
ASR
Control 24-000539 |
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MEETING
DATE: |
08/13/24 |
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legal entity taking action: |
Board
of Supervisors |
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board of supervisors district(s): |
3 |
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SUBMITTING Agency/Department: |
County
Executive Office (Approved) |
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Department contact person(s): |
Thomas
A. Miller (714) 834-6019 |
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Claude
Parrish (714) 834-2727 |
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Subject: Approve County Assessor Colocation
Agreement at 2681 Kelvin Avenue
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ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
Approved
Agreement to Form |
Consent
Calendar |
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3
Votes Board Majority |
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Budgeted: Yes |
Current Year
Cost: $81,100 |
Annual Cost: See Financial Impact Section |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: No |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: N/A |
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RECOMMENDED
ACTION(S):
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1. |
Find the project is categorically exempt
from the California Environmental Quality Act (CEQA), Class 1 (Existing
Facilities) pursuant to CEQA Guidelines, Section 15301. |
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2. |
Approve and execute the Colocation
Service Order with Phoenix MSA Holdings LLC, a Delaware limited liability company, for data
recovery space at 2681 Kelvin Ave. in Irvine, for Assessor’s use, for a term
of one (1) year, commencing on or about September 1, 2024, through
August 31, 2025, in an amount not to exceed $8,110 per month. |
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3. |
Authorize the Chief Real Estate Officer
or designee to exercise option terms and execute subsequent documents and
amendments that make non-monetary and/or monetary changes that do not
increase County costs by more than $75,000 per year, as approved by County
Counsel. |
SUMMARY:
Approval of the proposed colocation
service order agreement with Phoenix MSA Holdings LLC, a Delaware limited
liability company, will allow the Orange County Assessor to occupy a portion of
2681 Kelvin Ave. in Irvine for use as a local data and network recovery center
for a one-year term.
BACKGROUND
INFORMATION:
The Orange County Assessor
(Assessor) has the responsibility for identifying, reporting and assigning
values to taxable property located within the County of Orange on an annual
basis. The Assessor is both a manager of
more than two hundred fifty (250) employees and is an administrator that
carries out the rules and regulations imposed by property tax laws. In light of these responsibilities, the
Assessor must have access to local data and network recovery services to
support its ongoing operations and future long-term recovery relocation
plans. This proposed colocation service
order agreement (Proposed Lease) will allow the Assessor continued use of
existing leased space while the County finalizes its relocation plans to a
permanent data storage location.
On April 23, 2019, the Board
approved the lease agreement for the Assessor’s office to relocate its
headquarters to 500 North Main Street in the city of Orange. On June 4, 2019, the Assessor entered into a
five-year colocation lease agreement with Dawn US Holdings LLC (Current
Landlord) at 2681 Kelvin Ave., Irvine for local data and network recovery
services, which includes the use of a 120 square foot equipment cage, five
cabinets, security services and a maximum monthly power draw of 20 KW (Current Lease). The monthly rent for the Current Lease is
$7,000 per month with no escalations throughout the term. The Current Lease was executed under
Delegated Authority on June 4, 2019 by the Chief Real Estate Officer and is set
to expire on August 31, 2024.
The Proposed Lease will extend
Assessor’s occupancy at 2681 Kelvin from September 1, 2024, through August 31,
2025. The monthly rent will increase
from its current rate of $7,000 per month to $8,110 per month (Rent), a fifteen
percent (15%) increase from prior the Current Lease, for the duration of the
extension term which is consistent with current market rates for data
storage. Under the Proposed Lease there
are no County options to extend or terminate its occupancy. If Assessor holds over beyond August 31,
2025, the Rent will increase by 200 percent, which was the best rate the County
could achieve for a limited one-year commitment. CEO Real Estate and the
Assessor are currently working with OCIT to locate alternate space for local
data and network recovery services and anticipate having such location
finalized within the year, and therefore not needing to holdover. The County anticipates significant cost
savings once the permanent location is finalized due to the ability to co-exist
with other County agencies.
Compliance
with CEQA:
The proposed project is Categorically Exempt (Class 1) from the provisions of
CEQA pursuant to CEQA Guidelines Section 15301, because it involves the lease
of an existing office facility by a governmental agency involving negligible or
no expansion of an existing use.
FINANCIAL
IMPACT:
Appropriations for this Proposed
Colocation Service Order are included in Assessor's Budget Control 002 FY
2024-25 Budget and will be included in the budgeting process for future years.
The below table of the fiscal-year
cost is based upon a September 1, 2024, commencement date.
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Fiscal Year |
Rentable Square
Feet |
Monthly Rent |
Total Rent |
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2024 - 2025 |
120 |
$8,110 |
$81,100 |
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2025 - 2026 |
120 |
$8,110 |
$16,220 |
STAFFING
IMPACT:
N/A
REVIEWING
AGENCIES:
Orange
County Assessor
ATTACHMENT(S):
Attachment
A - Colocation Service Order
Attachment B - Summary of Colocation Service Order
Attachment C - Acquisition Questionnaire