DATE: September 24, 2024
TO: Board of Supervisors
SUBMITTED BY: Edward Hill, Chief Operating Officer/Interim Director of Internal Services/Chief Information Officer
Susan Holt, Director, Department of Behavioral Health
Sanja Bugay, Director, Department of Social Services
SUBJECT: Amendment No. 2 to Heritage Centre, LLC Lease Agreement
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute Amendment No. 2 to Lease Agreement No. 22-059 with Heritage Centre, LLC, to revise the scope of work for additional tenant improvements, effective upon execution with no change to the term of March 1, 2022 through February 29, 2032, and increasing the maximum compensation by $4,500,000 for a total of $49,271,212.
REPORT
There is no additional Net County Cost associated with the recommended action, which will permit the Department of Behavioral Health (DBH) to make necessary renovations at the Heritage Centre, located at Millbrook and Shields Avenues in Fresno (Premises). Large-scale tenant improvements to the space were determined necessary for the space to comply with industry standards for a mental health facility. Additionally, the Department of Social Services (DSS) will be renovating another portion of the facility to move the County's Transitional Shelter Care Facility from the University Medical Center campus (UMC) to the Heritage Centre. The recommended amendment includes $3,000,000 in tenant improvements for DBH, which will be funded with Mental Health Realignment and Mental Health Services Act (MHSA) funds, and $1,500,000 in tenant improvements for DSS, which will be fully offset with State and Federal Social Services funds and Realignment funds. This pertains to a location within District 3.
ALTERNATIVE ACTION(S):
Your Board may opt to direct DBH to cease further improvements to the Heritage Centre. However, while the existing agreement provides funding for construction of an Adult Psychiatric Health Facility (PHF), a Youth PHF, Crisis Stabi...
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