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ADDENDUM ITEM

2G CM _RPT CALL CENTER MEMORANDUM.DOCX

MEMORANDUM

March 5, 2013

TO: Honorable Mayor and City Council Members

FROM: Valerie Barone, Interim City Manager

SUBJECT: Authorize City Manager to Work with State and County in attracting the California Health Care Exchange Board’s Call Center to Concord

Contra Costa County staff recently initiated a process whereby the California Health Care Exchange Board would locate a Call Center to Contra Costa County. The Call Center would employ more than 200 people to serve the public in providing enrollment and eligibility services to consumers as part of the nation’s health care reform. As part of the County’s efforts, they began a site location search to place the Call Center within Contra Costa County resulting in two preferred locations: one in Concord (2500 Bates Avenue) and the other in Richmond. At the February 12, 2013 Board of Supervisors meeting, Mayor Helix offered the City’s support in assisting the County to locate the Call Center to 2500 Bates Avenue in Concord.

Unfortunately, the County’s efforts to attract the Call Center have stalled and may not move forward. In the event the County does not pursue the Call Center, the City of Concord (if authorized by the City Council), could directly work with the State, the County and the owners of 2500 Bates Avenue to attract the Call Center and its more than 200 jobs to Concord.

Staff believes the 2500 Bates Avenue site is the preferred location and would be very attractive to the State and to the residents of Contra Costa for a number of reasons including:

• The Concord site is the lowest cost location at $1,941,631 which includes “Full Service Rent” covering all building operating expenses. This is the cost for three years of rent. • It is centrally located and is accessible by a multitude of public transportation options

such as County Connect Bus Service, BART and Highway 4.

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Board’s Call Center to Concord March 5, 2013

Page 2

• The facility is “move in ready” with cubicles, wiring and ample parking as the building was a specifically retrofitted as a state of the art Call Center by Comcast and would serve the State’s Call Center needs.

Staff recommends the City Council adopt Resolution No. 13-19 authorizing the Interim City Manager to initiate discussions with the State, County and property owner to attract the California Health Care Exchange Board Call Center to Concord.

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Attachment No. 1 Res. No. 13-19 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

BEFORE THE CITY COUNCIL OF THE CITY OF CONCORD COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA

A RESOLUTION AUTHORIZING THE CITY MANAGER TO INITIATE DISCUSSIONS WITH THE CALIFORNIA HEALTH CARE EXCHANGE BOARD, CONTRA COSTA COUNTY, AND THE PROPERTY OWNER TO LOCATE A STATE

CALL CENTER IN CONCORD Resolution No. 13-19

/

WHEREAS, The City is geographically centrally located in the Contra Costa County and is

served by a number of transportation options thereby making facilities located in Concord accessible for all people living in West, East and Central County; and

WHEREAS, the City of Concord has offered its support to the County for centrally locating

the California Health Care Exchange Board’s Call Center that is to provide enrollment and eligibility services to consumers as part of the nation’s health care reform; and

WHEREAS, if the Contra Costa County Board of Supervisors elects not to pursue attracting

the Call Center to Contra Costa; and

WHEREAS, the City of Concord will continue to cooperatively work with the County to

attract the Call Center to Concord; and

WHEREAS, the Call Center is to employ more than 200 people from throughout

Contra Costa County; and

WHEREAS, the State will only reimburse for “reasonable start-up and operational costs”

(subject to audit); and

WHEREAS, the proposed lease term is: Only a three year lease with a three year option;

Provides for a 30-day termination clause; and could expose taxpayers the risk of absorbing any tenant improvement, start-up, and furniture costs; and

WHEREAS, the 2500 Bates Avenue property is a fully move in ready, turn-key, state of the

art Call Center facility that provides the most fiscally responsible & cost effective use of taxpayer dollars; and

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

WHEREAS, the 2500 Bates Avenue property is centrally located and easily accessed site with

numerous public transportation options to service all County residents experiencing unemployment; and

WHEREAS, the 2500 Bates Avenue property contains state of the art equipment and

amenities designed specifically to serve call center operations that can be taken advantage of at no additional cost or risk to the taxpayer; and

WHEREAS, the 2500 Bates Avenue property proposes the lowest (3-year) move in cost to the

State at only $1,941,631.00 which includes “Full Service Rent” covering all building operating expenses.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CONCORD DOES RESOLVE AS FOLLOWS:

Section 1. If the County elects not to proceed with the Call Center, authorizes the City

Manager, to initiate direct discussion with California Health Care Exchange Board staff to locate the Call Center and its more than 200 jobs to Concord.

Section 2. Authorizes the City Manager to work cooperatively with the County, 2500 Bates

Avenue property owners and other partners as needed to secure the location of the Call Center in Concord.

Section 3. This resolution shall become effective immediately upon its passage and adoption. PASSED AND ADOPTED by the City Council of the City of Concord on March 5, 2013, by

the following vote:

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Attachment No. 1 Res. No. 13-19 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

I HEREBY CERTIFY that the foregoing Resolution No. 13-19 was duly and regularly

adopted at a regular meeting of the City Council of the City of Concord on March 5, 2013.

Mary Rae Lehman, CMC City Clerk

APPROVED AS TO FORM:

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