Board approves master lease and PG&E reimbursement agreement for behavioral-health space at 560 Cohasset Road

The Board of Supervisors approved a master lease and a PG&E reimbursement agreement Oct. 14 that consolidate existing arrangements for office space at 560 Cohasset Road in Oroville and preserve favorable rates on multiple existing leases.

Mike Hodgson, director of General Services, explained the documents wrap around eight existing leases and cover approximately 67,000 square feet of building space, of which behavioral health currently uses about 53,000 square feet. The master lease establishes an overarching rate (staff cited a starting rate of $1.34 per square foot in the future step-down to the consolidated rate) and maintains landlord-paid building maintenance in exchange for county payments over time.

Hodgson said the 30-year cost estimate for the master lease is $47,213,727 and that lease payments will be made from restricted funds: grant dollars and realignment revenues, not the county general fund. Under the special-fund doctrine, if restricted funds become unavailable in the future, the board would need to decide whether to use general-fund dollars.

The companion PG&E reimbursement agreement preserves existing PG&E payments the landlord had been making for the spaces now covered under the master lease; the agreement calls for the county to assume PG&E bills while reimbursing the county where Enloe previously paid specified portions.

The board approved both agreements by voice vote. The item was presented by General Services and Behavioral Health staff and had no public opposition during the meeting.

Board action: approved master lease and PG&E reimbursement agreement for 560 Cohasset Road (motion approved).