HomeMy WebLinkAboutMINUTES - 04162013 - D.2RECOMMENDATION(S):
APPROVE and AUTHORIZE the Public Works Director, or designee, to execute on behalf of the County a lease
between the County and 2500 Bates, a California limited partnership, for office space located at 2500 Bates Avenue
in Concord, in accordance with an agreement between the County and Covered California, an agency of the State of
California. (Project No. WLP793).
FISCAL IMPACT:
There will be no fiscal impact to the County from this action. 100% of the County’s costs will be reimbursed by
Covered California, including Federal funds authorized under the Affordable Care Act, as part of the County’s
contract to operate the Health Benefit Exchange Call Center.
BACKGROUND:
On March 15, 2013, at a special meeting of the Board of Supervisors, the Board approved a contract between the
County and the Covered California, an agency of the State of California (Master Agreement). Under the Master
Agreement, the County will operate the Contra Costa County Covered California Call Center (Call Center) for
Covered California. At the March 15, 2013 special meeting, the Board also directed staff to begin negotiating a lease
with the owners of 2500 Bates Avenue in Concord as the site of the Call Center. The proposed lease of 2500 Bates
Avenue implements those earlier decisions.
The following is a summary of the key terms of the lease:
1.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 04/16/2013 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Dick Awenius (925)
313-2130
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: April 16, 2013
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
D.2
To:Board of Supervisors
From:Julia R. Bueren, Public Works Director/Chief Engineer
Date:April 16, 2013
Contra
Costa
County
Subject:Call Center Lease – 2500 Bates Avenue, Concord
BACKGROUND: (CONT'D)
Term. The lease is for a three-year term and includes an option that allows the County to extend the lease for
another three-year period on the same terms, except that rent will be increased by 3% annually during the option
period.
2. Termination of Lease . The County may terminate the lease at no cost or obligation to the County by providing
30 days’ written notice to the landlord.
3. Turn-Key. The landlord will build out the space in accordance with the specifications provided by the County
and Covered California. In preparing the space for occupancy by the County, the landlord will (i) reconfigure
existing cubicles to the dimensions mandated by Covered California, (ii) add a sufficient number of additional
cubicles to meet the requirements established by the County and Covered California, and (iii) supply certain other
furniture and furnishings to be used by the County during the term of the lease. The Lease specifies that the
County’s share of the cost of the minimum tenant improvements (Basic Improvements) will not exceed $200,000.
The lease permits the County to request additional tenant improvements or upgrades to the Basic Improvements.
The County will only request any such additional improvements or upgrades if (i) Covered California concurs
with the request, and (ii) Covered California agrees that the cost of the additional improvement or upgrade is a
“start-up” cost that will be reimbursed to the County by Covered California.
4. Rent. Rent will be $33,715 per month during the 36-month lease term.
5. Full Service Lease. The lease is a full service lease, and the landlord will bear the expense of maintaining the
property (including the electrical, lighting, water and plumbing systems, pest control, the HVAC system, the
generator, and the uninterruptible power supply system, but excluding the County’s maintenance of the alarm
system as described above), as well as the cost of real estate taxes, insurance, utilities and janitorial service. The
landlord will also bear the cost of maintaining the cubicles, Lessor’s furniture and furnishings, and the tenant
improvements (including the CAT 6 cabling) in good condition and repair.
6. Substantial Completion Date. The landlord is obligated to complete the tenant improvements in accordance
with the agreed-upon specifications by July 1, 2013. If the landlord misses this deadline and, as a result, the
County terminates the lease, the County has no obligation to pay any portion of the County’s share of the Basic
Improvements.
CONSEQUENCE OF NEGATIVE ACTION:
The lease will not be approved, and the County’s Employment and Human Services Department will not operate
the Contra Costa County Covered California Call Center on behalf of the State of California. Covered California
is relying on having this County-operated Call Center as part of its staffing model. If this lease and the Call
Center are not approved, the state may not be able to increase its hiring in time to meet the federally mandated
start date for open enrollment of October 1, 2013.
CHILDREN'S IMPACT STATEMENT:
Not applicable.
ATTACHMENTS
Lease