Title
a. Approve and authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) to execute an eighteen month lease agreement with Creekbridge Apartments ("Lease Agreement"), with a retroactive start date of February 1, 2014 and a term through and including July 30, 2015, for apartment space located at 1757 Independence Boulevard, Unit 204 in Salinas, California, for housing of University of California-San Francisco medical students performing clerkship at NMC; and
b. Authorize the Auditor-Controller to make lease payments of up to $1,690.00 per month in accordance with the terms of an approved Lease Agreement; and
c. Authorize the Auditor-Controller to pay after hour key charges not to exceed $100 per key for up to 20 keys.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors:
a. Approve and authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) to execute an eighteen month lease agreement with Creekbridge Apartments ("Lease Agreement"), with a retroactive start date of February 1, 2014 and a term through and including July 30, 2015, for apartment space located at 1757 Independence Boulevard, Unit 204 in Salinas, California, for housing of University of California-San Francisco medical students performing clerkship at NMC; and
b. Authorize the Auditor-Controller to make lease payments of up to $1,690.00 per month in accordance with the terms of an approved Lease Agreement; and
c. Authorize the Auditor-Controller to pay after hour key charges not to exceed $100 per key for up to 20 keys.
SUMMARY/DISCUSSION:
The term of this lease agreement shall be February 1, 2014, through and including July 30, 2015 which is eighteen months total. Lease payments will be at $1,690 per month. This monthly amount is a discounted rate off the $1,875.00 rate per month for this unit ($185 savings per month equal to $3,330 savings over the full eighteen month term). The refundable security deposit of $600 collected from the previous lease will be transferred and applied as the security deposit to the new lease. The lease terms require that the County provide sixty (60) days' written notice for termination.
NMC has been renting from Creekbridge on a month-to month basis up to this point since the previous lease expired. The County may terminate the new lease upon sixty day written notice. The lease agreement also includes provisions for late payment, return check, after hour key charges and the collection of a refundable security deposit. These charges and conditions are viewed as industry standard for apartment complexes with similar amenities.
The UCSF Medical Student Clerkship program at NMC has existed for over twenty years. NMC has a formal Medical Housing Agreement with UCSF that states that NMC must ensure adequate coed housing, learning resources and administrative support for up to four students for six week periods throughout the year. Housing must be located within a reasonable distance from the hospital. Since August, 2005, Creekbridge Apartments has provided access, proximity, and is viewed as cost effective.
UCSF currently reimburses NMC $30,000 a year for support of medical student training that is used for leasing a medical student apartment at Creekbridge Apartments. This allows third year medical students to use NMC for their required third year family medicine clerkship, and allows NMC to continue this important relationship. It is important because of the UCSF name, because of the chance to recruit the students into the residency program, and because of the relationship and experience the students share about NMC with their peers, thus giving NMC a broader audience for recruitment.
Overall, NMC's ability to have high quality medical students rotate through the facility improves the academic environment for both residents and attending physicians. Those students that go on to become residents have a tendency to practice in this area, again a major goal of our program.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Lease Agreement as to legal form and risk provisions. The Auditor-Controller has reviewed and approved this Lease Agreement as to payment provisions. The NMC Finance Committee reviewed and approved this item on August 28, 2014 and the Board of Trustees reviewed and approved it on September 12, 2014.
FINANCING:
The total cost of the monthly payments for this Lease Agreement is $30,420 over eighteen months. Other costs stated in the Lease Agreement may include after hour key charges but only if the need should arise. There is no impact to the General Fund.
Prepared by: Kristen Aldrich, Contracts Division Manager, NMC 783-2627
Approved by: Dr. Kelly O'Keefe, Interim Chief Executive Officer, NMC 783-2553
Attachments: Lease Agreement
Attachments on file with the Clerk to the Boards Office