DATE: April 27, 2021
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Retroactive Lease Agreement with Fresno Community Hospital and Medical Center
RECOMMENDED ACTION(S):
TITLE
1. Make determination that the use of county-owned space at 4460 E. Huntington Ave., Fresno CA 93702 (approximately 2,000 square feet of office space and approximately 1,000 square feet of common area) by Fresno Community Hospital and Medical Center to provide asthma and diabetes education will serve public purposes, and will be in the best interest of the County and the general public; and,
2. Approve and authorize the Chairman to execute a retroactive Lease Agreement with Fresno Community Hospital and Medical Center, to be used for asthma and diabetes education classes, effective April 1, 2021, not to exceed 20 years, which includes a five-year base contract and three optional five-year renewal periods, at 4460 E. Huntington Ave, Fresno, CA 93702 ($1,508,867).
REPORT
Approval of the recommended actions will authorize the Fresno Community Hospital and Medical Center (FCHMC) to continue holding asthma and diabetes education classes for patients. This site was selected as it was FCHMC’s old Children’s Clinic location prior to FCHMC using the site for its education classes. This item pertains to a location in District 3.
ALTERNATIVE ACTION(S):
If the recommended actions are not approved, FCHMC will be unable to remain at its current location to provide education services to patients.
RETROACTIVE AGREEMENT:
The recommended lease agreement is retroactive to April 1, 2021 due to extended negotiations with FCHMC and their legal counsel.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The maximum revenue anticipated in FY 2020-21 is $15,525; $1,508,867 for the term. FCHMC shall pay monthly rent of $5,175 for approximately 2,000 square feet of office space and approximately 1,000 square feet of common area at 4460 E. Huntington Ave in Fresno. The amount includes security fees and janitorial services. The County is able to adjust the rent annually in accordance with rate studies conducted by the Auditor-Controller/Treasurer-Tac Collector’s Office (AC/TTC), not to exceed 2% annually. The rent will be deposited in Discretionary Revenues, Org 0415 under the General Fund, Fund 0001.
DISCUSSION:
Government Code, section 26227 provides that a board of supervisors may contract with other public agencies or private agencies or individuals to operate those programs which the board determines will serve public purposes. In furtherance of those programs, the board may make available to a public agency, nonprofit corporation, or nonprofit association any real property of the County which is not and, during the time of possession, will not be needed for county purposes, to be used to carry out the programs, upon terms and conditions determined by the board to be in the best interests of the County and the public.
FCHMC is a nonprofit corporation that has leased space at 4460 E. Huntington Ave for its Children’s Clinic for over 20 years (August 27, 1996 to July 1, 2017). The recommended lease agreement allows FCHMC to continue to lease office space at this location for a five-year initial term with three additional five-year renewal periods, through March 31, 2041. FCHMC operates out of this leased space to provide asthma and diabetes education classes, which are open to the public, to benefit people and their families with these conditions.
REFERENCE MATERIAL:
BAI #36, June 22, 2010
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Lease Agreement with FCHMC
CAO ANALYST:
Sonia M. De La Rosa