Title
a. Approve and authorize the Contracts and Purchasing Officer to execute a two (2) year Lease Agreement, commencing on July 1, 2025 through June 30, 2027 with 232 Monterey St., LLC, a California non-profit limited liability company for 4,286 square feet of family reception space for use by the Department of Social Services’ Family and Children Services Program; and
b. Authorize the Auditor/Controller to make monthly lease payments of $8,285 in accordance with the terms of the Lease Agreement; and
c. Authorize the extension of the Lease Agreement for two (2) additional two (2) year terms under the same terms and conditions if deemed to be in the best interest of the County by the Contracts and Purchasing Officer.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Contracts and Purchasing Officer to execute a two (2) year Lease Agreement, commencing on July 1, 2025 through June 30, 2027 with 232 Monterey St., LLC, a California non-profit limited liability company for 4,286 square feet of family reception space for use by the Department of Social Services’ Family and Children Services Program; and
b. Authorize the Auditor/Controller to make monthly lease payments of $8,285 in accordance with the terms of the Lease Agreement; and
c. Authorize the extension of the Lease Agreement for two (2) additional two (2) year terms under the same terms and conditions if deemed to be in the best interest of the County by the Contracts and Purchasing Officer.
SUMMARY/DISCUSSION:
The Department of Social Services (DSS) has occupied 4,286 square feet at 234 Monterey Street, Salinas, California, for their Family and Children Services Program since November 2016 under Lease Agreement No. A-13087. DSS desires to remain at this location. Approval of the proposed new Lease Agreement will provide for continued occupancy with an initial two (2) year term pursuant to the proposed new Lease Agreement. The Department of Public Works, Facilities and Parks (PWFP) negotiated the commencement rent of $8,285 per month. The new Lease Agreement provides for two (2) additional two (2) year extension options, under the same terms and conditions. A 4% increase at the end of the initial two year period of the lease term, or any two year period of any extended term of the lease. A “Termination by County” clause is incorporated in the new Lease Agreement. The identified facility continues to provide DSS operations with needed family reception space and the monthly rent is considered cost effective when compared to relocating to a similar facility in the Salinas area.
OTHER AGENCY INVOLVEMENT:
PWFP negotiated the proposed Lease Agreement and assisted with the development of this report. The Office of the County Counsel-Risk Management has reviewed the proposed Lease Agreement as to form, and indemnification and insurance provisions. The Auditor-Controller’s Office has reviewed and approved the proposed Lease Agreement as to fiscal provisions.
FINANCING:
There are sufficient appropriations and estimated revenues in 001-5010-SOC005-8262 Social Services FY 2024-25 Adopted Budget and FY 2025-26 Recommended Budget. The monthly leasing cost will be $8,285; $99,420 annually. The property owner will be responsible for costs associated with property taxes and assessments, fire insurance, major maintenance and structural repairs, as needed. The ongoing occupation of the leased premises and future extension of the Lease Agreement will be based on the continued availability of funding.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The proposed Lease Agreement correlates to the Administration and Health & Human Services Strategic Initiative adopted by the Board of Supervisors by allowing the Department to more efficiently serve public assistance recipients.
Check the related Board of Supervisors Strategic Initiatives:
Economic Development
X Administration
X Health & Human Services
Infrastructure
Public Safety
Prepared by: George K. Salcido, PWFP Real Property Specialist, 831-755-4859
Prepared by: Sylvia Solis, DSS Administrative Operations Manager
Reviewed by: Becky Cromer, DSS Chief Financial Officer
Approved by: Roderick Franks, MA, L.P., DSS Director
Attachments: Attachment A - Lease Agreement
Attachment B - Location Map
(Attachments are on file with the Clerk of the Board)