Title
a. Approve and authorize the Contracts/Purchasing Officer to execute a Sublease Agreement with the Administrative Office of the Courts for the lease period through January 31, 2013, for 1,100 square feet of general office space at 118 West Gabilan Street, Salinas, California, for use by the Health Department Behavioral Health Division and Probation Department;
b. Ratify the October 18, 2010 "letter agreement" between the Resource Management Agency Director and the Senior Manager of the State of Administrative Office of the Courts, relating to 118 West Gabilan Street, Salinas, California;
c. Authorize the Auditor-Controller to make lease payments of $900.00 per month, and in accordance with the terms of the Sublease Agreement; and
d. Authorize the Auditor-Controller to make within 45 days of lease execution a one-time payment of $12,317.68 to the Administrative Office of the Courts for the difference in its back rent obligations offset by the Administrative Office of the Courts' share of back rent and utilities in accordance with the terms of the Sublease Agreement.
Report
RECOMMENDATIONS:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Contracts/Purchasing Officer to execute a Sublease Agreement with the Administrative Office of the Courts for the lease period through January 31, 2013, for 1,100 square feet of general office space at 118 West Gabilan Street, Salinas, California, for use by the Health Department Behavioral Health Division and Probation Department;
b. Ratify the October 18, 2010 "letter agreement" between the Resource Management Agency Director and the Senior Manager of the State of Administrative Office of the Courts, relating to 118 West Gabilan Street, Salinas, California;
c. Authorize the Auditor-Controller to make lease payments of $900.00 per month, and in accordance with the terms of the Sublease Agreement; and
d. Authorize the Auditor-Controller to make within 45 days of lease execution a one-time payment of $12,317.68 to the Administrative Office of the Courts for the difference in its back rent obligations offset by the Administrative Office of the Courts' share of back rent and utilities in accordance with the terms of the Sublease Agreement.
SUMMARY/DISCUSSION:
The Probation Department and Health Department, Behavioral Health Bureau, operate the Drug Treatment Court (DTC) Programs at 118 West Gabilan Street, Salinas, California to provide alcohol and drug assessments, treatment referrals, case management, crisis intervention, group education and drug testing services to defendants who have been charged with drug-related crimes. Services are provided by a specialized team of Probation Officers and Behavioral Health staff who provide intensive support and therapeutic probation supervision for crime prevention and rehabilitation. Monterey County judges regularly send defendants to the DTC office for random drug testing with orders to provide results to the court.
On October 18, 2010, the Administrative Office of the Courts (AOC) entered into a Letter Agreement wherein the AOC subleased to the County for a monthly rent of $900.00, approximately 1,100 square feet of office space at 118 West Gabilan Street, Salinas, California for use by the County. Since the sublease agreement has not previously been presented to the Board of Supervisors for ratification, rent payments are currently due for the past two years.
Due to the need to finally reconcile rent between the County and the AOC, it is appropriate to ratify and give effect to the Letter Agreement by entering into a sublease with the AOC. The term of the sublease commenced on December 1, 2010, and will end January 31, 2013, when the AOC's Master Lease expires. As set forth and agreed upon in the Letter Agreement, the AOC and County also have certain outstanding back rent and utility obligations. Accordingly, upon full execution of this sublease, the County agrees to pay to AOC within 45 days $12,317.68, the County's twenty-three month back rent obligation (through December 2012) of $22,500 less the AOC's outstanding Back Rent and Utilities obligation of $10,182.32. The sublease contains a termination clause requiring only a 60-day written notice to the AOC. In the event the AOC renews the Master Lease, the County may continue renting the space at the facility on a month-to-month basis, all other terms of the Sublease will remain in full force and effect.
OTHER AGENCY INVOLVEMENT:
The Office of the County Counsel has reviewed and approved the Sublease Agreement, as to form and legality. The Probation Department and the Health Department concur with the terms of the sublease.
FINANCING:
There is no financial impact to the General Fund. Sufficient funds are available in the FY 2012-13 Health Department, Fund 023, Unit 8410, Appropriation Unit HEA012 to cover the full obligated amount of $12,317.68 for FY 2010-11, FY 2011-12 as well as the obligation total for FY 2012-13. Payment for prior years will have no negative impact on grant reimbursement funding to either Probation or Behavioral Health. The estimated annual FY 2012-13 leasing cost is $10,800. The Probation Department and Health Department coordinate equitable allocation of the monthly rents. On-going occupation of the leased premises and future extensions of the Sublease Agreement will be based on the continued availability of funding.
Prepared by: George K, Salcido, Real Property Specialist, (831) 755-4859
Approved by:
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Robert K. Murdoch, P.E., Director of Public Works
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Benny J. Young, RMA Director
Dated: December 21, 2012
Attachments: Sublease Agreement; Location Map