DATE: April 11, 2023
TO: Board of Supervisors
SUBMITTED BY: David Luchini, Director, Department of Public Health
Robert W. Bash, Director of Internal Services / Chief Information Officer
SUBJECT: Retroactive Lease Agreement with 5561 Sultana, LLC
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a retroactive Lease Agreement with 5561 Sultana, LLC, for use by the Department of Public Health - Emergency Medical Services division as a paramedic training facility, for approximately 9,529 square feet of office space located at 5091 N. Fresno Street, Fresno CA, 93710, effective April 1, 2023 through March 31, 2026, total rent not to exceed $275,098
REPORT
There is no additional Net County Cost associated with the recommended action, which will allow the Department of Public Health (DPH) - Emergency Medical Services (EMS) division, to relocate its paramedic training program into a facility that better fits the department’s need. The recommended agreement will be funded with tuition paid for in full by paramedic training students and pass-through funding from Fresno City College. This pertains to a location within District 2.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended action, the department will be unable to secure a space that meets DPH’s needs, and an alternative location will need to be secured.
RETROACTIVE AGREEMENT:
The recommended Agreement is retroactive to April 1, 2023 as a result of extended negotiations with the lessor. The recommended agreement is being brought to your Board in accordance with agenda item processing timelines.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The recommended agreement will be paid for in full with tuition received by or on behalf of paramedic training students, and with funds passed through a revenue agreement with Fresno City College. Rent will be $7,642 per month, $275,098 for the three-year term. DPH will also pay additional rent, currently estimated to be $3,000 per month, which include the lessor’s actual out of pocket costs attributed to real estate taxes, insurance, and common area maintenance. Sufficient appropriations and estimated revenues are included in the Department’s Org 5620 FY 2022-23 Adopted Budget and will be included in future budget requests.
DISCUSSION:
On March 2, 2018, the Director of Internal Services executed lease agreement D-18-769/L-329 with JCM Farming, Inc. for 3,127 square feet of office space at 770 E. Shaw Avenue, Fresno CA 93710, Suite 109. The agreement was for a three-year term with two optional one-year extensions, and expires on March 31, 2023. The current space is a significantly smaller and no longer meets the needs of the department.
The recommended lease is for approximately 9,529 square feet of office space that will serve as a training facility for the paramedic training program operated by the Department’s EMS division. Rent will be $7,642 per month and will remain the same for the three-year term of the agreement, total rent not to exceed $275,098. Under the terms of the lease, DPH is also required to pay the lessor additional rent for operating costs, estimated to be $3,000 per month, which include actual out of pocket costs attributed to real estate taxes, insurance, and common area maintenance.
In partnership with Fresno City College, the DPH EMS division operates the only paramedic training program in the County, training licensed Emergency Medical Technicians (EMTs) in Advanced Life Support (ALS) for potential employment in ambulances, fire departments, air support, and other emergency responder roles. The recent implementation of a hybrid remote/in-person training schedule with the paramedic training program has increased the number of students the program is able to train.
Tuition is charged to all students in the amount of $8,812 each and is paid by the students themselves or by organizations paying for them, directly to DPH. Additional funding is also received through revenue agreement A-21-223 with State Center Community College District, from the State for students enrolled. All students are required to be enrolled through Fresno City College and receive college credit for the training program.
Approval of the recommended action will allow the paramedic training program to support the increase in student enrollment for the foreseeable future and aide the central valley by accrediting more paramedics for employment with ambulance companies, fire departments, and other emergency responders.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Agreement with 5561 Sultana, LLC
CAO ANALYST:
Ahla Yang