DATE: November 24, 2020
TO: Board of Supervisors
SUBMITTED BY: Delfino Neira, Director, Department of Social Services
Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Amendment III to Lease Agreement 14-731
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute Amendment III to Lease Agreement No. 14-731 with John S. Foggy for office space at 2011 Fresno Street, Fresno, CA 93721, used by the Department of Social Services, which extends the term by 18 months from January 31, 2021 to July 31, 2022 and increases the maximum by $971,698, to a total of $5,032,298.
REPORT
There is no additional Net County Cost associated with the recommended action. Lease Agreement 14-731, as amended previously, will expire on January 31, 2021. The recommended third Amendment will amend the Lease to continue until April 30, 2022, with an option to extend the Lease through July 31, 2022. This will allow for continued occupancy by the Department of Social Services until the Department of Social Services is able to move to its new location on the County of Fresno Clovis Campus. The monthly rent for the office space is $52,990, and the amended Lease will terminate on or before July 31, 2022. This item is countywide.
ALTERNATIVE ACTION(S):
There is no alternative action, as the County has not located any available temporary space to relocate the Department of Social Services staff currently located at the Center Mall Court Building while construction of Building #5 on the Clovis Campus is completed.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The recommended Amendment III will increase the term by 18 months and the total Agreement cost by $971,698. The maximum amount of the recommended Lease Agreement for the period of November 1, 2014 through July 31, 2022 is $5,032,298, which includes $4,798,845 in rent and $233,453 in tenant improvements. The cost for the Agreement will be offset with State and Federal Social Services funds ($4,332,594), 2011 Realignment ($444,376) 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 ($220,519) and the required Net County Cost ($34,809) which offsets the General Relief Program share of cost. Sufficient appropriations and estimated revenues are included in the FY 2020/21 Adopted Budget for the Department of Social Services Org 5610 and will be included in subsequent budgets.
DISCUSSION:
The Department of Social Services’ (DSS) strategic plan places emphasis on enhancing Department performance and improving client experiences. A key component as part of this strategic plan is streamlining business and client service functions to increase efficiency and operational effectiveness. Approval of the recommended Lease Amendment is essential for DSS to implement its strategic plan.
The recommended Lease Amendment will enable the DSS Child Welfare Services (CWS) branch to align the termination date of the lease with the relocation of staff and services to be consolidated onto the County of Fresno Clovis Campus (Clovis Campus) in the Spring of 2022. In the absence of this Lease Amendment, DSS would be required to continue paying the lease of this facility for as many as six months after moving to Building #5 on the Clovis Campus.
The recommended Lease Amendment will ultimately allow for better planning and transition to the new Campus supporting DSS’ larger goals; greater operational efficiency, streamlined service delivery, and higher quality of services to the residents of Fresno County. CWS has been spread among five to seven different buildings for an excess of fifteen years, and is anticipating a full consolidation of services into one location on the Clovis Campus in the Spring of 2022.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Lease Amendment III
CAO ANALYST:
Ronald Alexander