DATE: December 10, 2019
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: First Amendment to Lease Agreement for Office Space at Reedley Regional Center
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute First Amendment to Lease Agreement No. A-15-285 with Reedley Center, Inc., for office space located at 1670-1690 East Manning Avenue, Reedley, amending the term of the Agreement to three (3) automatic one (1) year extensions, and authorizing the County Administrative Officer, Director of Internal Services/Chief Information Officer, or their designee, to terminate Lease Agreement No. A-15-285, upon 180 days’ written notice.
REPORT
Approval of the recommended action will adjust the term of the Lease Agreement from one (1) automatic three (3) year extension to three (3) automatic one (1) year extensions. In addition, the County Administrative Officer, the Director of Internal Services/Chief Information Officer, the director of the Department of Social Services, or their respective designees, will replace your Board as the approving authority for termination of the Lease Agreement, and will be authorized to provide notice of such termination. This item pertains to a location in District 4.
ALTERNATIVE ACTION(S):
Your Board could opt to not approve the recommended First Amendment, which would result in the Department of Social Services (DSS) retaining the current location for an additional three (3) year term, until June 2023.
FISCAL IMPACT:
There is no increase in Net County Cost associated with this recommended action. The maximum compensation for the Agreement remains unchanged. Sufficient appropriations and revenues are included in the FY 19-20 Adopted Budget for the Department of Social Services, Organization 5610.
DISCUSSION:
The Department of Social Services (DSS) leases approximately 27,177 square feet of office space at 1670-1690 East Manning Ave (Reedley Regional Center), where it provides CalWORKs cash assistance, CalFresh, Medi-Cal, Homeless Assistance, General Relief, and Employment Services. The business processes of DSS have evolved over the years, which require a different physical layout than is currently in use. As a result of these business process changes, DSS will require less square footage for the location’s 48 staff. Due to these changes in needs, the Department is looking to secure a more appropriate and functional site in the City of Reedley.
The primary term of the current Agreement is a five (5) year primary term, which expires on June 30, 2020, with one (1) automatic three (3) year extension, which expires on June 30, 2023. The Agreement also requires the Department to secure your Board’s approval prior to sending a termination notice 180 days before the primary term expires. Delegating this power to the County Administrative Officer, Director of Internal Services/Chief Information Officer, Director of the Department of Social Services, or their respective designees, will align the Lease Agreement with the County’s current lease form.
The recommended First Amendment will provide DSS the time and flexibility it requires to continue its search for a new site, while ensuring continuity of services in the interim period. DSS anticipates staying in the current location until at least June 30, 2021.
REFERENCE MATERIAL:
BAI #78, June 16, 2015
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Amendment I
CAO ANALYST:
Ronald Alexander