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Health and Human Services Agency (HHSA) along with the Chief Administrative Office, Facilities Division, recommending the Board:
1) Make findings in accordance with Board of Supervisors Policy C-2, Lease Agreement 335-L1411 (FENIX No. 0634) is eligible to exercise the first of two Options to extend the term for an additional three-year period.
2) Approve and authorize the Purchasing Agent to execute Option No. 1 Notification Letter for Lease Agreement 335-L1411 (FENIX No. 0634) with Briw Office Investors, for the additional term of three years from February 1, 2024, through January 31, 2027, thereby increasing the amount by $1,966,353.88 for a new maximum obligation of $7,989,895.44; and
3) Authorize the Purchasing Agent to execute amendments relating to Lease Agreement 335-L1411 (FENIX No. 0634), contingent upon approval by County Counsel and Risk Management, which do not increase the maximum dollar amount or term of the Agreement.
FUNDING: State and Federal funds with County match met primarily from Realignment funds.
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DISCUSSION / BACKGROUND:
HHSA leased 3057 Briw Road, Suite A in 1995 with Lease Agreement 046-L9611 expiring on December 31, 2013 (File 11-1278). Additionally, HHSA leased 3057 Briw Road, Suite B in 1996 with Lease Agreement 617-L0711 expiring March 31, 2014 (File 09-0258). On December 17, 2013, (File 13-1488) the Board authorized Lease Agreement 335-L1411 (FENIX No. 0634) consolidating the leases for Suites A and B into one Agreement for the lease of 38,875 square feet of office space with a total maximum obligation of $5,944,108.56 and for the term of 120 months, February 1, 2014, through January 31, 2024.
On October 6, 2020 (Legistar File 20-1318) the Board provided conceptual approval of a portable generator installation at 3057 Briw Road and authorized the Purchasing Agent to execute Amendment I to Lease Agreement 335-L1411 to accomplish said project. Amendment I to Lease Agreement 335-L1411 was fully executed on March 2, 2021, and increased the total agreement amount by $79,433 for building improvements related to the portable generator installation.
The consolidated lease includes two consecutive three-year options to renew the lease for all or part of the premises upon six months prior notice by County and permits a three percent increase in cost per square foot once every twenty-four months.
HHSA requires office space to provide Federal and State-mandated client services, including but not limited to CalWORKS, CalFresh, and Child Protective Services, to residents of the County of El Dorado and to house Health and Human Services Agency Administration and Finance. Approval of Option 1 to extend Lease Agreement 335-L1411 (FENIX No. 0634) is vital to ensure that HHSA has sufficient office space to be able to continue to provide mandated services through 2027. The location continues to be ideal for HHSA clients as it centrally located and provides easy access to Highway 50 to clients and staff alike.
ALTERNATIVES:
N/A
PRIOR BOARD ACTION:
1) 03/20/12 09-0258, Lease Amd II Briw Office Investors
2) 12/20/11 11-1278, Amend III to Lease Agmt
3) 12/17/13 13-1488, Lease Agreement 335-L1411
4) 10/06/20 20-1318, recommending conceptual approval of a generator install at 3057 Briw Road, Placerville
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
Approved by Chief Administrative Office, County Counsel, Human Resources, and Risk Management. The Auditor-Controller has been notified of this Agreement in accordance with Policy B-12.
CAO RECOMMENDATION:
Approve as recommended.
FINANCIAL IMPACT:
There is no Net County Cost associated with this Agenda item. Sufficient appropriations were included in the Fiscal Year 2023-24 Budget for this lease and will be included in future budgets for the term of the Agreement.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT:
Infrastructure
CONTACT
Olivia Byron-Cooper, MPH, Director, Health and Human Services Agency
Charles Harrell, Facilities Division Manager, Chief Administrative Office