LA County Board

110. Department of Mental Health Lease Agreement\nRecommendation: Authorize the Chief Executive Officer to execute a proposed\n15-year lease with San Pedro Medical Office Properties (Landlord), for the\nDepartment of Mental Health’s (DMH’s) use of approximately 17,250 sq ft of\noffice space and 70 on-site parking spaces located at 1294 West 6th Street,\nSuite 200 in San Pedro (Premises) (4), with an estimated maximum first-year\nbase rental amount of $662,400, and an estimated total proposed lease amount,\nincluding County’s Tenant Improvement (TI), insurance, and low-voltage costs,\nof $17,261,000, over the 15-year term, with the rental costs to be funded by\nState and Federal funds that are already included in DMH’s existing budget, and\nDMH will not be requesting additional Net County Cost (NCC) for this action;\nfind that the proposed lease and addendum are exempt from the California\nEnvironmental Quality Act (CEQA); find that the issuance of taxable commercial\npaper notes (Notes) through the County Capital Asset Leasing Corporation\nLease Revenue Note Program (Note Program) to finance TI costs is not subject\nto CEQA; and take the following actions: (Chief Executive Office)\nAuthorize the Chief Executive Officer to execute a proposed two-year\naddendum with the Landlord for approximately 9,376 sq ft for temporary\noffice space and 37 on-site parking spaces located at 1360 West 6th\nStreet, Suite 200 in San Pedro (Temporary Premises), with the estimated\nmaximum first-year base rental amount of $320,700, and the estimated\ntotal proposed addendum amount of $676,000, including TI costs, over\nthe two-year term, funded by State and Federal funds that are already\nincluded in DMH’s approved budget, and DMH will not be requesting\nadditional NCC for this action;\nAuthorize the Chief Executive Officer to reimburse the Landlord up to\n$3,052,500, inclusive of the change order amounts, for the County’s TI\ncontribution under the proposed lease, if paid in lump sum, or\n$3,713,700 if amortized over five years at 8% interest per annum;\nAuthorize a County TI contribution of $25,000 to be paid in a lump sum\nto the Landlord under the proposed addendum for the Temporary\nPremises:\nTo finance the County’s TI contribution, establish TI Project No. 58826\nfor the proposed lease at the Premises;\nAuthorize the issuance of Notes through the Note Program in an amount\nnot to exceed $3,053,000 for the TI costs, and approve an amount not to\nexceed $119,000 to be funded by the benefiting Department, for interest\ndue to the Landlord until County payment is received;\nAuthorize the Director of Mental Health to contract with and instruct the\nDirector of Internal Services, in coordination with the Chief Executive\nOfficer, for the acquisition and installation of telephone, data, and\nlow-voltage systems and vendor installation (Low-Voltage Items) at a total\namount not to exceed $970,900, if paid in a lump sum, or $1,176,500 if\namortized over five years at 10% interest per annum, with the cost for the\nLow-Voltage Items to be in addition to the rental costs and the County’s\nTI contribution payable to the Landlord; and\nAuthorize the Chief Executive Officer to execute any other ancillary\ndocumentation necessary to effectuate the terms of the proposed lease\nand addendum, and take actions necessary and appropriate to\nimplement the terms of the proposed lease and addendum including,\nwithout limitation, exercising any early termination rights. (23-3145)\nAttachments: Board Letter