LA County Board

18.\nDepartments of Children and Family Services, Mental Health, and Health\nServices Lease Agreements\nRecommendation: Authorize the Acting Chief Executive Officer to execute the\nproposed lease with F&KAC, LLC, a Delaware limited liability company\n(Landlord), for approximately 45,000 sq ft of office space and 183 on-site\nparking spaces located at 20151-A Nordhoff Street, Chatsworth (3), to be\noccupied by the Department of Children and Family Services (DCFS). This\nproposes a lease for a term of ten years. The estimated maximum first-year\nbase rental amount is $1,215,000, but with a rent abatement of approximately\n$304,000, will equal $911,000. The estimated total proposed lease cost,\nincluding electricity and low-voltage (Low-Voltage Items) is $15,302,000 over\nthe 10-year term. The rental costs will be funded by State and Federal funds,\nwith the current subvention rate of 45% and 55% by Net County Cost (NCC)\nthat is already included in DCFS’ existing budget. The subvention rate may be\nsubject to change in future years, and NCC variance will be absorbed by\nDCFS. DCFS will not be requesting additional NCC for this action. Find that the\nproposed leases are exempt from the California Environmental Quality Act.\nAuthorize the Acting Chief Executive Officer take the following actions:\nExecute the proposed lease with the Landlord, for approximately 28,595\nsq ft of office space and 117 on-site parking spaces located at 20151-B\nNordhoff Street, Chatsworth, to be occupied by the Department of Mental\nHealth (DMH) and the Department of Health Services (DHS). This\nproposes a lease for a term of ten years. The estimated maximum\nfirst-year base rental amount is $773,000, but with a rent abatement of\napproximately $194,000, will equal $579,000. The estimated total\nproposed lease amount, including electricity, is $9,410,000 over the\nten-year term. The rental costs for DMH will be funded by State and\nFederal funds that are already included in DMH’s existing budget. The\nrental costs for DHS will be fully funded within DHS’ existing budget.\nNeither DMH nor DHS will be requesting additional NCC for this action.\nExecute any other ancillary documentation necessary to effectuate the\nproposed leases and to take actions necessary and appropriate to\nimplement the proposed leases, including, without limitation, exercising\nany early termination rights or any options to extend at fair market value\nfor an additional five years. If the option is exercised, the total term of the\nproposed leases will be up to 15 years each.\nAuthorize the Director of Children and Family Services to contract with and\ndirect the Director of Internal Services, in coordination with the Acting Chief\nExecutive Officer, for the acquisition and installation of Low-Voltage Items at\nPremises A, at a total amount not to exceed $429,000, if paid in a lump sum, or\n$525,000 if amortized over five years at 8% interest per annum, with the cost\nfor the Low-Voltage Items to be in addition to the rental costs. (25-6421)\nBoard Letter