Title
a. Approve and authorize the Contracts/Purchasing Officer or designee to execute a six (6) month Lease Amendment No. 4, to Lease Agreement No. A-12690, effective retroactive to February 10, 2024, with San Jose Ave. Apartments, LLC. (Lessor), for approximately 12,986 rentable square feet of space at 559 East Alisal Street, Salinas, California, for use by the Health Department’s Clinic Services Bureau (Health), increasing the monthly rent from $24,822 to $26,858; and
b. Authorize the Auditor-Controller to make lease payments starting at $26,858 per month for the first three (3) months of the extension period in accordance with the terms and adjusted rent schedule outlined in the Lease Agreement.
Report
RECOMMENDATION:
It is recommended that the County of Monterey Board of Supervisors:
a. Approve and authorize the Contracts/Purchasing Officer or designee to execute a six (6) month Lease Amendment No. 4, to Lease Agreement No. A-12690, effective retroactive to February 10, 2024, with San Jose Ave. Apartments, LLC. (Lessor), for approximately 12,986 rentable square feet of space at 559 East Alisal Street, Salinas, California, for use by the Health Department’s Clinic Services Bureau (Health), increasing the monthly rent from $24,822 to $26,858; and
b. Authorize the Auditor-Controller to make lease payments starting at $26,858 per month for the first three (3) months of the extension period in accordance with the terms and adjusted rent schedule outlined in the Lease Agreement.
SUMMARY/DISCUSSION:
The Clinic Services Bureau has occupied 559 East Alisal in Salinas California (Premises), since 2001 and operates as the Alisal Health Center. The Alisal Health Center is designated as a Federally Qualified Health Center Look-Alike and, as a requirement of its licensure, must remain located in the area of the population it serves. In addition to being located within walking distance of its patient population, this building space provides access to bus lines, and a secured parking garage for staff.
Approval of this Lease Amendment No. 4 to Lease Agreement No. A-12690, will incorporate suite 108, adding an extra 905 square feet of usable space to the existing 12,081 usable square feet. This amendment will also extend the Lease Agreement by six (6) months, until August 9, 2024. This extension is intended to allow additional time for negotiating a new Lease Agreement, including tenant improvements, ensuring continued occupancy of approximately 12,986 rentable square feet. These spaces are vital for the Clinic's provision of services to the residents of the local community and neighboring areas. Lease Amendment No. 4 to Lease Agreement A-12690 will retroactively commence on February 10, 2024.
This work supports the County of Monterey Health Department’s 2018-2024 Strategic Plan Goal: 3. Ensure access to culturally and linguistically appropriate, customer-friendly, quality health services. It also supports the following of the ten essential public health services, specifically: 7. Link people to needed personal health services and assure the provision of healthcare when otherwise unavailable.
OTHER AGENCY INVOLVEMENT:
The Department of Public Works, Facilities, and Parks (PWFP) assisted with the development of this report. The Office of the County Counsel and the Auditor-Controller’s Office have reviewed and approved the proposed Lease Amendment No. 4 as to form and fiscal provisions, respectively.
FINANCING:
There is no financial impact to the General Fund resulting from the approval of the proposed Lease Amendment No. 4. Sufficient funds are available in the Health Department, Clinic Services Bureau (4000-HEA007) FY 2023-24 Adopted Budget and provision for it will be made in the Department’s Requested Budget FY 2024-25.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
Check the related Board of Supervisors Strategic Initiatives:
☐ Economic Development:
• Through collaboration, strengthen economic development to ensure a diversified and healthy economy.
☐ Administration:
• Promote an organization that practices efficient and effective resource management and is recognized for responsiveness, strong customer orientation, accountability and transparency.
☒ Health & Human Services:
• Improve health and quality of life through County supported policies, programs, and services; promoting access to equitable opportunities for healthy choices and healthy environments in collaboration with communities.
☐ Infrastructure:
• Plan and develop a sustainable, physical infrastructure that improves the quality of life for County residents and supports economic development results.
☐ Public Safety:
• Create a safe environment for people to achieve their potential, leading businesses and communities to thrive and grow by reducing violent crimes as well as crimes in general.
Prepared by: Juanita Sanders, Management Analyst II, 755-5494
Approved by:
______________________________ Date_____________________
Elsa Mendoza Jimenez, Director of Health Services, 755-4526
Attachments:
Board Report
Lease Amendment No. 4
Lease Amendment No. 3
Board Order for Lease Amendment No. 3
Lease Amendment No. 2
Board Order for Lease Amendment No. 2
Lease Amendment No. 1
Board Order for Lease Amendment No. 1
Lease Agreement
Board Order for Lease Agreement