LA County Board

32. Department of Mental Health Lease Agreement\nRecommendation: Authorize the Chief Executive Officer to execute a proposed\n10-year lease with 5419 Sunset, LLC, a Delaware limited liability company\n(Landlord), for the Department of Mental Health’s (DMH’s) use of approximately\n41,040 sq ft of office space and 70 on-site parking spaces located at 5419\nWest Sunset Boulevard, in Los Angeles (1) (Premises), with an estimated\nmaximum first-year base rental amount of $2,437,800, but with a rent abatement\nof $812,600, will equal $1,625,200, and an estimated total proposed lease\namount, including on-site parking, supplemental parking, Tenant Improvement\n(TI), allowance, and low-voltage costs, of $38,331,000 over the 10-year term,\nwith the rental costs to be fully funded by State and Federal funds that are\nalready included in DMH’s existing budget, and additional Net County Cost will\nnot be requested for this action; find that the proposed lease is exempt from the\nCalifornia Environmental Quality Act; and take the following actions:\nAuthorize the Chief Executive Officer to reimburse the Landlord up to\n$6,156,000, for the County’s TI contribution under the proposed lease,\nfor an amount to exceed $8,018,000 if amortized over ten years at 5.5%\ninterest per annum;\nAuthorize the Director of Mental Health to contract with and instruct MCM\nIntegrated, in coordination with the Chief Executive Officer, for the\nacquisition and installation of telephone, data, and low-voltage systems\nand vendor installation (Low-Voltage Items) at a total amount not to\nexceed $407,000, if paid in a lump sum, with the cost for the Low-Voltage\nItems to be in addition to the rental costs and the County’s TI contribution\npayable 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 take actions necessary and appropriate to implement the terms of\nthe proposed lease, including, without limitation, exercising any early\ntermination rights. (23-4417)