Title
a. Approve and authorize the Contracts/Purchasing Officer to execute a five year Lease Agreement, effective on or around March 1, 2013, with Creekbridge Office Center II, LLC, for approximately 3,872 rentable square feet of space located at 1611 Bunker Hill Road, Suite 120, in Salinas, California, for use by the Health Department's Behavioral Health Bureau;
b. Authorize the Auditor-Controller to make lease payments of $6,776.00 per month and in accordance with the terms of the agreement; and
c. Authorize the extension of the Lease Agreement for two additional one-year periods under the same terms and conditions, and make minor revisions to the Lease Agreement if deemed by the Contracts/Purchasing Officer to be in the best interests of the County.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Contracts/Purchasing Officer to execute a five year Lease Agreement, effective on or around March 1, 2013, with Creekbridge Office Center II, LLC, for approximately 3,872 rentable square feet of space located at 1611 Bunker Hill Road, Suite 120, in Salinas, California, for use by the Health Department's Behavioral Health Bureau;
b. Authorize the Auditor-Controller to make lease payments of $6,776.00 per month and in accordance with the terms of the agreement; and
c. Authorize the extension of the Lease Agreement for two additional one-year periods under the same terms and conditions, and make minor revisions to the Lease Agreement if deemed by the Contracts/Purchasing Officer to be in the best interests of the County.
SUMMARY/DISCUSSION:
Approval of the Lease Agreement will provide for occupancy of approximately 3,872 rentable square feet of space to be used by the Health Department's Behavioral Health Bureau (Behavioral Health). The lease term will commence on or around March 1, 2013, and expire on or around February, 28, 2018. Commencement rent will be $6,776.00 per month. The Lease Agreement provides for two, one-year extension options under the same terms and conditions including annual rental adjustments.
Behavioral Health's Quality Improvement Unit (QI) is expected to use the proposed space. The new location will provide QI increased usable space and a centralized location. QI functions include electronic health record clinical management and technical support, performance monitoring, and clinical services utilization review. The space vacated by QI (1441 Constitution, Building 400, Suites 200 and 201) will be used to expand client services for Behavioral Health.
This proposed relocation will also be in close proximity to the Health Department's Clinic Services Bureau's administrative offices. There may be enhanced collaboration on health services integration initiatives.
OTHER AGENCY INVOLVEMENT:
The Department of Public Works facilitated the negotiations of the Lease Agreement and assisted with the development of this report. The Office of the County Counsel has reviewed and approved the Lease Agreement as to form and legality and Risk Management has approved as to insurance and indemnity. Lease Agreement is on file with the Clerk of the Board.
FINANCING:
The funding for this agreement is Mental Health Services Act (MHSA) monies and other available sources. The FY 2012-13 Adopted Budget for Behavioral Health does not include specified expenditures and revenue for this lease. Health will coordinate with the County Administrative Office and, if necessary, request from the Board of Supervisors increased appropriations. Any increased appropriations would be offset entirely by increased revenue through transfer of MHSA monies and other available sources in reserve accounts in Fund 023 (Behavioral Health). Approval of this action has no impact on the General Fund. On-going occupation of the leased premises and future extensions of the Lease Agreement will be based on the continued availability of funding. The first-year leasing cost will amount to $81,312, including janitorial and utility services. The initial term leasing costs will be subject to a 2% increase at the end of each lease anniversary year.
Prepared by: Pat Bass, Management Analyst, 4528
Approved by: Ray Bullick, Director of Health, 4526
Attachments:
Lease Agreement is on file with the Clerk of the Board