Title
Approve and authorize the Contracts/Purchasing Officer to execute a twenty-year Sublease with Clinica de Salud del Valle de Salinas (Clinica), a Federally Qualified Health Center (FQHC) for approximately 716 rentable square feet of space located at 1156 Fremont Boulevard, Seaside, California for Clinica to provide dental services, with an initial monthly rental payment to the County in the amount of $1,253 to commence June 1, 2018.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Approve and authorize the Contracts/Purchasing Officer to execute a twenty-year Sublease with Clinica de Salud del Valle de Salinas (Clinica), a Federally Qualified Health Center (FQHC) for approximately 716 rentable square feet of space located at 1156 Fremont Boulevard, Seaside, California for Clinica to provide dental services, with an initial monthly rental payment to the County in the amount of $1,253 to commence June 1, 2018.
SUMMARY/DISCUSSION:
The Health Department (Health) has been working on plans to expand services in Seaside to improve access to health care services in that community. As part of this work, the Board of Supervisors approved Health to execute a Lease Agreement with Montage Health on June 14, 2013, for the premises located at 1156 Fremont Boulevard, Seaside Boulevard (Attachment 1). The terms of the Lease Agreement between the County and Montage Health, effective as of June 13, 2013, indicated Montage Health would build a new expanded facility which Health could continue to lease over twenty years or purchase the facility within 36 months after occupancy. Construction of the new Seaside Family Health Center (SFHC) facility was completed in the summer of 2017 and Health began occupation of the clinic shortly after construction was completed. The Lease Agreement between Health and Montage authorizes Health to enter into a Sublease per Article 17 of the Lease Agreement with prior approval by Montage Health. Montage Health has approved the proposed Sublease as indicated in their email communication dated, August 16, 2017 (Attachment 2).
Approval of the Sublease (Attachment 3) will allow Clinica to deliver these services by occupying approximately 716 rentable square feet of medical space. The Sublease term will commence June 1, 2018 and expire after a twenty-year term. Commencement rent payable to the County shall not exceed $1,253 per month and shall increase by one percent (1%) on an annual basis.
The approval of the Sub-Lease, supports the Monterey County Health Department 2011-2015 strategic plan initiative; 3) Ensure access to culturally and linguistically appropriate, customer-friendly, quality health services. It also supports one (1) of the ten (10) essential public health services, specifically; 7) Link people to needed personal health services and assure the provision of health care when otherwise unavailable.
OTHER AGENCY INVOLVEMENT:
The Resource Management Agency - Administrative Services advised the Health Department regarding development of the Sublease. The Office of the County Counsel has reviewed and approved the Sublease as to form and legality. Montage Health supports the recommendation to approve and authorize the proposed twenty-year Sublease between Health and Clinica.
FINANCING:
There is no financial impact to the General Fund resulting from approval of this Lease. Lease payments received from Clinica will be deposited as revenue in the Health Department’s Clinic Services Bureau Appropriation Unit.
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: Ezequiel Vega, Assistant Director of Health, 4622
Approved by: Elsa Jimenez, Director of Health, 4526
Attachments:
1. Proposed Sublease Attachments are on file with the Clerk of the Board
2. Email dated, August 16, 2017 from Montage Health is on file with the Clerk of the Board
3. Lease Agreement between Health and Montage Health are file with the Clerk of the Board