DATE: September 26, 2017
TO: Board of Supervisors
SUBMITTED BY: Rick Chavez, Chief Probation Officer
Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Lease of 2171 N. Fine Ave, Fresno for Probation Dept. Office Space
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a Lease Agreement with Austin Enterprises, a limited partnership, for office space located at 2171 N. Fine, Fresno, CA, for use by the Fresno County Probation Department, effective December 1, 2017 through November 30, 2025, not to exceed eight consecutive years, which includes a five-year base contract and three automatic one-year extensions, total not to exceed $3,193,344.
REPORT
There is no increase in Net County Cost associated with the recommended action, which will create a five-year lease with three automatic one-year extensions for 20,160 square feet of office space for use by the Fresno County Probation Department. 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. Rent for the first year (December 1, 2017 to November 30, 2018) is $30,038.40 per month for 20,160 square feet ($1.49 per square foot) of office space. Probation will be responsible for all utility costs, and shall provide their own janitorial services and associated supplies. Rent will increase three percent each year for a total rental cost of $3,193,344 over the life of the lease (initial 5-year term plus three one-year automatic renewals). The lease costs for this facility are funded with Public Safety Realignment Act of 2011 (Assembly Bill 109) revenue. Sufficient appropriations for the first lease year are included in the Adopted FY 2017-18 Probation Org 3430 Budget.
DISCUSSION:
The Probation Department currently has staff located at the 10th Street location, which was declared as surplus property by your Board on March 7, 2017 and thereafter publicly bid for sale by your Board on June 20, 2017. The recommended action will allow Probation to relocate Assembly Bill 109 staff currently occupying the 10th Street location.
The recommended Lease Agreement at 2171 N. Fine, Fresno, CA is for approximately 20,160 square feet of office space and includes approximately 105 parking spaces. The Probation Department is responsible for all utility costs, and shall provide their own janitorial services and associated supplies. This 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 $3,193,344.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Agreement with Austin Enterprises
REFERENCE MATERIAL:
BAI #12, June 20, 2017
BAI #9, March 7, 2017
CAO ANALYST:
Samantha Buck