DATE: December 17, 2024
TO: Board of Supervisors
SUBMITTED BY: Susan Holt, Director, Department of Behavioral Health
Edward Hill, Chief Operating Officer/Interim Director of Internal Services/Chief Information Officer
SUBJECT: Amendment No. 1 to Air Fresno Lease Agreement
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute Amendment No. 1 to Lease Agreement No. 22-344 with Fresno-Air LTD, to extend the term for an additional two years to September 30, 2026, and increase the maximum rent by $870,997 and operating costs by $226,580, to a total of $2,130,914, then converting to a month-to-month lease ($37,384 per month), for use by the Department of Behavioral Health, while the Olive and Heritage locations are under construction.
REPORT
There is no additional Net County Cost associated with the recommended action, which will provide sufficient space for the Children's and Transitional Age Youth Clinical Outpatient Operations to function at this location, until the completion of the construction of the Olive Campus, located at 5555 E. Olive Avenue in Fresno (Olive Campus). It is anticipated that the Department of Behavioral Health (DBH) will need to remain at the Air Fresno location until July 2026. This pertains to a location within District 3.
ALTERNATIVE ACTION(S):
Should the recommended action not be approved, DBH can continue to occupy the Air Fresno location under the Lease's existing month-to-month provisions; however, by allowing the lease to continue long-term on a month-to-month basis, there is the risk that the lessor could unilaterally terminate the lease with only 30 days' notice.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. Rent and operating cost will be fully offset with a combination of Federal Financial Participation and Realignment funds. The rent is $35,933 per month for 38,321 square feet for the current year and will increase by 2% each additional year. In addi...
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