DATE: October 17, 2017
TO: Board of Supervisors
SUBMITTED BY: Philip F. Kader, Interim Chief Probation Officer
Robert W. Bash, Director of Internal Services-Chief Information Officer
SUBJECT: Lease Agreement with Rosenberg Associates, a California Limited Partnership, for Office Space
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a lease Agreement with Rosenberg Associates, a California Limited Partnership, for office space located at 2048 N. Fine, Fresno, CA, for use by the Fresno County Probation Services Department, effective March 1, 2018 through February 28, 2026, not to exceed eight consecutive years, which includes a five-year base contract and three automatic one-year extensions, total not to exceed $3,343,887.
REPORT
There is no increase in Net County Cost associated with the recommended action, which will create a five-year lease and three automatic one-year extensions for 19,008 square feet of office space at $1.65 per square foot for year one of the lease for the Fresno County Probation Department. The Agreement maximum for the first year is $376,358.40. The recommended lease will allow Probation staff to relocate from the property located at 890 South 10th Street, Fresno, CA 93725, which was authorized for sale by your Board in June 2017.
ALTERNATIVE ACTION(S):
There are no alternative actions as current vacant County facilities are unable to provide adequate and appropriate office space.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The rent for the recommended lease for the first year (March 1, 2018 to February 28, 2019) is $31,363.20 per month for 19,008 square feet, which is a rate of $1.65 per square foot of office space. In addition, Probation will be responsible for all utility costs, and shall provide their own janitorial services and associated supplies. The recommended lease costs will increase three percent a year for a total cost for the life of the lease (initial 5-year term plus three one-year automatic renewals) of $3,343,887.36. Sufficient appropriations have been included in the Adopted FY 2017-18 Probation Organization 3430 Budget to cover the costs for this lease.
DISCUSSION:
The Probation Department currently has staff located at the 10th Street location, which was declared as surplus property and authorized for sale by your Board on March 7, 2017 and June 20, 2017 respectively. The recommended action will allow Probation to relocate staff currently occupying the 10th Street location.
The recommended Lease Agreement at 2048 N. Fine, Fresno, CA is approximately 19,008 square feet and parking for a minimum of 70 spaces. The Probation Department is responsible for all utility costs and shall provide their own janitorial services and associated supplies. The Lease Agreement differs from the standard County agreement of five years (three year base and two optional one year renewals), in that it is for an initial term of five years with three automatic one year extensions. The maximum cost for the Rent for eight years is $3,343,887.36.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Lease Agreement
REFERENCE MATERIAL:
BAI #12, June 20, 2017
BAI #9, March 7, 2017
CAO ANALYST:
Samantha Buck