DATE: June 12, 2018
TO: Board of Supervisors
SUBMITTED BY: Delfino E. Neira, Director of Social Services
Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: First Amendment to Lease Agreement 17-519
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute First Amendment to Lease Agreement with Pontiac 7, LLC, at 205 W. Pontiac Way, Fresno, CA 93612, for Tenant Improvements, increasing the office space from 101,696 square feet to 140,142 square feet and reducing the warehouse space from 49,897 square feet to 12,127 square feet, and Renewing the lease for one (1) nineteen-year period upon completion of Tenant Improvements, total not to exceed ($96,704,502.32).
REPORT
Approval of the recommended action will amend the current agreement to create a nineteen-year lease for 152,269 square feet of office ($1.25/square foot) for the Department of Social Services (DSS). The Agreement maximum for the first year is $4,628,028, with no increase in Net County Cost. This item pertains to a location in District 3.
ALTERNATIVE ACTION(S):
Your Board could direct the Department of Social Services to not renovate the building. However, this would result in an office space which does not meet the long term operational needs of the Department and would result in decreased operational efficiencies for the programs and services provided to the residents of Fresno County.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The total cost of the recommended Lease Amendment ($96,704,502.32) will be fully offset with State and Federal Social Services Allocations ($83,347,893.41) and 2011 Realignment ($8,445,370.63) in lieu of State General Funds for Child Welfare Services and Adult Protective Services Programs that were realigned to counties through Assembly Bill (AB) 118, 1991 Social Services Realignment ($4,085,938.20) and the required Net County Cost ($825,300.08) which offsets the Ge...
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