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Health and Human Services Agency (HHSA), in conjunction with the Chief Administrative Office, Facilities Division, recommending the Board:
1) Approve and authorize the Purchasing Agent to sign Amendment III to Lease Agreement 576-L1311 (FENIX 997) with Steve’s Christmas Trees, Inc. (Lessor), for office space at 768 Pleasant Valley Road in Diamond Springs, to increase the rentable square footage from 13,770 to 17,405 through May 31, 2034, and the monthly rent amount from $27,209.52 to $34,297.77 through May 31, 2026, with a guaranteed four-percent increase each year thereafter for the remainder of the term, with no change to the existing term, which includes an initial term through May 31, 2034, and includes two five-year renewal options for a term not to exceed May 31, 2044; and
2) Authorize the Purchasing Agent to execute amendments relating to Lease Agreement 576-L1311, contingent upon approval by County Counsel and Risk Management, which do not increase compensation or the term of the Agreement.
FUNDING: 53% Federal/State Medi-Cal, 28% MHSA, 17% Realignment, 2% Federal Substance Use Block Grant.
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DISCUSSION / BACKGROUND:
On May 7, 2013, the Board approved the Lease Agreement 576-L1311 (FENIX 997) with Steven and Laura Abel Nevada Family Trust for 13,770 square feet of office space located at 768 Pleasant Valley Road in Diamond Springs (Legistar file 13-0517). The lease of 768 Pleasant Valley Road office space houses mental health outpatient services for HHSA’s Behavioral Health Division (BHD) on the West Slope and represents a centralized location for this region of the County.
On April 30, 2024, the Board authorized the Purchasing Agent to execute Amendment I to Lease Agreement 576-L1311, which extended the term of the Agreement for an additional 10 years through May 31, 2034, with the option to extend for two subsequent five-year term extensions through May 31, 2044. Further, Amendment I increased the lease amount of $3,769,389.37 to a new to...
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