DATE: December 4, 2018
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
Delfino E. Neira, Director, Department of Social Services
SUBJECT: First Amendment to Facility Sub-Lease Agreement with Fresno Area
Workforce Investment Corporation
RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize the Chairman to execute First Amendment to Facility Sub-Lease Agreement No. 15-286 with the Fresno Area Workforce Investment Corporation, a California public benefit corporation, to decrease the square footage of the Subleased Premises, effective upon execution with no change in potential term date of June 30, 2021 or rental cost per square foot.
2. Authorize the Director of Internal Services/Chief Information Officer or his/her designee to authorize any future modifications in regard to a decrease in square footage of the Subleased Premises, subject to the County Counsel approval as to legal form and County Auditor-Controller/Treasurer-Tax Collector approval as to accounting form.
REPORT
Approval of the recommended actions will allow the Internal Services Department (ISD) to decrease and negotiate any future reductions in square footage of the Subleased Premises located at 1670-1690 East Manning, Reedley, CA 93654 (Premises) with the Fresno Area Workforce Investment Corporation (FAWIC). This item pertains to locations in District 4.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended actions, the square footage occupied by the FAWIC in the Premises will not be reduced. This would result in a lost opportunity for the County to acquire additional square footage within the Premises that would benefit Departmental needs.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The square footage reduction will reduce revenues received in the Sub-Lease by $3,249 per month. The Department of Social Services (DSS) will occupy the vacated space and has sufficient savings to absorb the revenue reduction in its FY 2018-19 Adopted Org 5610 Budget. If future modifications decreasing the square footage of the Subleased Premises occur, revenues under the Sub-Lease will decrease further.
DISCUSSION:
Lease Agreement No. 15-285, approved by the Board on June 16, 2015, authorized the Department of Social Services (DSS) to lease 27,177 square feet of office space at 1670-1690 East Manning Ave, Reedley, CA 93654. DSS provides public assistance and employment services to approximately 3,000 clients per month in the communities in and around the city of Reedley, including the zip codes 93621, 93646, 93648, 93654, and 93675. DSS programs administered from the site include: CalWORKs cash assistance, CalFresh, Medi-Cal, Homeless Assistance, General Relief, and Employment Services.
As part of this lease, the Board authorized 10,078 square feet of office space to be sub-leased to the FAWIC. The FAWIC is co-located with DSS at the facility and operates a One-Stop Center, which connects job seekers to valuable services including job search skills workshops, information on training and education, referrals to partnering agencies, and community resources and labor market information on growth industries in Fresno County. The FAWIC is a valuable partner to DSS in assisting public assistance recipients to obtain full-time employment and achieve self-sufficiency.
The FAWIC requested a reduction in their overall leased square footage from 10,078 down to 6,580, resulting in a net reduction of 3,498 square feet. DSS is agreeable to the requested reduction of square footage for the FAWIC and is able to utilize this additional office space to expand its services and operations to its clients in the area.
REFERENCE MATERIAL:
BAI #78, June 16, 2015
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with the Clerk - First Amendment
CAO ANALYST:
Yussel Zalapa