LA County Board

17. Department of Public Social Services Lease Agreement\nRecommendation: Authorize the Chief Executive Officer to execute the\nproposed leases with RR&C Development Company, a California general\npartnership (Landlord), for the Department of Public Social Services’ (DPSS’)\ncontinued use of approximately 88,331 sq ft of office space comprised of\n33,331 sq ft at 12820 Crossroads Parkway South (Premises A), and 55,000 sq\nft of office space at 12860 Crossroads Parkway South, City of Industry\n(Premises B) (1) and a total of 352 on-site parking spaces to be occupied by\nDPSS, each lease for a term of more than ten years, to wit, for a term of 12\nyears, with an estimated maximum first-year base rental cost for Premises A is\n$1,100,000, with a two-month rent abatement of approximately $184,000, will\nequal $916,000, with the estimated total proposed lease cost, including the rent\nabatement, tenant improvement (TI), low-voltage and electrical, at $26,677,000\nover the 12-year term for Premises A; the estimated maximum first-year base\nrental cost for Premises B is $1,815,000, with a two-month rent abatement of\napproximately $303,000, will equal $1,512,000, with the estimated total\nproposed lease cost, including the rent abatement, TI, low-voltage, and\nelectrical at $41,166,000 over the 12-year term for Premises B; the rental costs\nfor both proposed leases will be funded by 80.11% State and Federal funds and\n19.89% Net County Cost (NCC), which is already included in DPSS’ existing\nbudget, and DPSS will not be requesting additional NCC; find that the proposed\nleases are exempt from the California Environmental Quality Act; and authorize\nthe Chief Executive Officer to take the following actions:\nReimburse the Landlord an aggregate amount up to $11,484,000, for the\nCounty’s total TI contribution, paid in lump sum for both proposed leases,\nwhich consists of up to $4,334,000, for the County’s TI contribution for\nPremises A and up to $7,150,000, for the County’s TI contribution for\nPremises B;\nContract with and instruct the Director of Internal Services, in\ncoordination with the Chief Executive Officer, for the acquisition and\ninstallation of telephone, data, and low-voltage systems and vendor\ninstallation (Low-Voltage Items) at a total amount not to exceed\n$9,468,000, paid in a lump sum for both proposed leases, which should\nnot exceed $4,644,000 for Premises A, and $4,824,000 for Premises B,\nthe cost for the Low-Voltage Items is in addition to the rental costs and\nthe County’s TI contribution payable to the Landlord; and\nExecute any other ancillary documentation necessary to effectuate the\nproposed leases, and to take actions necessary and appropriate to\nimplement the terms of the proposed leases, including, without limitation,\nexercising any early termination rights and the options to extend at fair\nmarket value as set forth in the proposed leases. (25-0205)