DATE: June 20, 2017
TO: Board of Supervisors
SUBMITTED BY: Delfino E. Neira, Director, Department of Social Services
Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Lease Agreement with Heritage Centre, LLC for Office and Basement Storage Space
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a lease Agreement with Heritage Centre, LLC, for office and basement storage space located at 3151 N. Millbrook, 3109 N. Millbrook, 3676 E. Shields, 3688 E. Shields, and 3115 N. Millbrook Fresno, CA, for use by the Department of Social Services, effective July 1, 2017 through June 30, 2022, not to exceed five consecutive years, which includes a three-year base contract and one automatic two-year extension, total not to exceed $5,138,481.
REPORT
Approval of the recommended action will create a three-year lease and one automatic two-year extension for 58,866 square feet of office ($1.35 per square foot) and 12,605 square feet of basement storage space ($2,521 per month) at the Heritage Centre for the Department of Social Services (DSS). Upon approval, the owner will make interior tenant improvements consisting of new carpet, and lobby window reconfiguration. County's cost for tenant improvements of $70,000, shall be amortized over three (3) years with interest. The Agreement maximum for the first year is $1,009,813, with no increase in Net County Cost.
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 maximum cost of this Lease Agreement ($5,138,481) includes rent ($5,060,685) and tenant improvement costs ($77,796) which will be offset with State and Federal Social Services funds ($4,600,708), 1991 Realignment funds ($20,707), and $6,783 in Net County Cost will fund the General Relief program's share of co...
Click here for full text