DATE: June 20, 2017
TO: Board of Supervisors
SUBMITTED BY: Dawan Utecht, Director, Department of Behavioral Health
Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Lease Agreement with Heritage Centre, LLC for Office Space
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a Lease Agreement with Heritage Centre, LLC., for approximately 66,921 square feet of office space located at 3133 N. Millbrook Avenue in Fresno, CA, to be used by Department of Behavioral Health, effective July 1, 2017, not to exceed five consecutive years, which includes a three-year base contract and two optional one-year extensions, total not to exceed $5,581,211.
REPORT
There is no additional Net County Cost associated with the recommended action. The lease agreement is for Department of Behavioral Health office space with parking at the Heritage Centre (the Centre). The Department has housed and provided behavioral health services to consumers at the Centre since May 16, 2000. The agreement will be funded with Medi-Cal Federal Financial Participation (FFP) and Behavioral Health Realignment monies, with no increase in Net County Cost.
ALTERNATIVE ACTION(S):
There are no viable alternative actions as existing vacant County facilities are unable to provide adequate and appropriate office and corresponding storage space to meet the Department's needs.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The maximum amount of the lease agreement is $5,581,211 for approximately 66,921 square feet at $1.35 per square foot, increasing by $.02 per year, at the following monthly rent rates:
Beginning FY 2017-18 $90,343 a month
Beginning FY 2018-19 $91,682 a month
Beginning FY 2019-20 $93,020 a month
Beginning FY 2020-21 $94,359 a month
Beginning FY 2021-22 $95,697 a month
The agreement will be fully offset with Medi-Cal FFP and Behavioral Health Realignment funds. Sufficient appropri...
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