DATE: June 20, 2023
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Lease Agreement with State Center Community College District
RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize the Chairman to execute a Lease Agreement with State Center Community College District, for 430 parking stalls located at 1140 Broadway Plaza, Fresno, CA 93721, for employee use, effective July 1, 2023 through June 30, 2028, total rent not to exceed $1,568,176.
2. Authorize the Director of Internal Services/Chief Information Officer or his/her representative, to approve and execute a Memorandum of Lease for the premises, as well as any Estoppel Certificate and/or Subordination and Attornment Agreement required by the Lessor, and any other such necessary agreements, certificates, notices, instruments, or documents, subject to the approval of the County Counsel’s Office as to legal form and, if applicable, as to accounting form by the County Auditor-Controller/Treasurer-Tax Collector.
REPORT
There is no additional Net County Cost associated with the recommended action, which will allow the Internal Services Department (ISD) to secure 430 parking stalls at the location for County staff to park during business hours. The recommended agreement will be funded through rates charged back to departments based upon usage. This pertains to a location within District 3.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended action, ISD will be unable to secure sufficient parking spaces for downtown staff and alternative arrangements will need to be made.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The recommended agreement will be paid for through fees assessed to various downtown departments based on how many staff are assigned parking at this location. Rent will be $23,650 per month for the first year ($55 per stall per month) and will increase 5% each subsequent year. Sufficient appropriations and estimated revenues are included in the ISD-Facility Services Org 8935 FY 2023-24 Recommended Budget and will be included in future budget requests.
DISCUSSION:
On April 11, 2023, your Board approved a new parking rate for departments to pay for their downtown parking needs, and directed ISD to secure sufficient parking for all County staff who park downtown. This is the first of the new large-scale leases to secure sufficient parking for all downtown County staff.
Approval of the recommended agreement will provide the County with 430 parking stalls at 1140 Broadway Plaza, located at the State Center Community College District’s downtown campus, effective July 1, 2023 through June 30, 2028 for a potential five year term which include a one-year initial term, with four optional one-year extensions, total cost not to exceed $1,568,176. Because of the site’s proximity to the Brix-Mercer building, the majority of these parking stalls will be assigned to the Department of Public Health’s staff. Rent for the site will start at $23,650 per month and will increase by 5% each subsequent year of the potential five-year term.
REFERENCE MATERIAL:
BAI #35 - April 11, 2023
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Lease Agreement with State Center Community College District
CAO ANALYST:
Ahla Yang