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Consent-General Government # 10.
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| Board of Supervisors |
Financial Services |
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| Subject |
| Ratify third amendment to Agreement No. 20-59 with La Quinta Inn of Davis to increase the number of leased rooms and the maximum contract amount by $280,670 for a new maximum of $789,990. (No general fund impact) (Rinde/Pistochini) |
| Recommended Action |
| Ratify third amendment to Agreement No. 20-59 with La Quinta Inn of Davis to increase the number of leased rooms and the maximum contract amount by $280,670 for a new maximum of $789,990. |
| Strategic Plan Goal(s) |
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Thriving Residents |
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| Reason for Recommended Action/Background |
On August 4, 2020, the Board of Supervisors approved an amendment with La Quinta Inn of Davis to extend the lease to August 31, 2020 with an option to extend the lease on a month-to-month basis through December 31, 2020. This amendment also reduced the number of rooms leased to 22.
Since that time, it became apparent that there is a need to increase the number of leased rooms at this location to 39. The Board of Supervisors is asked to approve this amendment to increase the number of leased rooms, and to set a new maximum contract amount. This amendment also includes a room rate change to reflect unanticipated cost impacts borne by the owner. |
| Collaborations (including Board advisory groups and external partner agencies) |
| The Department of Financial Services collaborated with the County Counsel's Office and the Health and Human Services Agency. |
| Competitive Bid Process |
| The initial contract with La Quinta was one of eight emergency hotel leases that were awarded based in order of their willingness to participate in the program, until the maximum aggregate number of rooms required was met. This amendment was prepared in consultation with the local city based on the ability to meet ongoing need. |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
This amendment will be funded using CARES funds. The expenses are reflected in the CARES expenditure plan presented to the Board of Supervisors on July 21, 2020. The lease contains early termination provisions and other means to mitigate financial risk should the State decide to reallocate funding and/or certain activities become unallowable. As with any federal funded program, there exists a risk that a portion of or all of the contracted expenses could be disallowed in the course of an audit.
This lease contains an option that allows the County to extend the lease on a month-to-month basis through December 31, 2020. Should all the lease options be exercised, the County's additional expenditure can be up to $263,398 through the end of December 2020. The lease contains provisions that further reduce the County's financial risk by compensating the hotel owners only for occupied rooms. Rooms that are unoccupied will not be billed to the County, reducing overall program costs. |
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