Title
a. Approve and authorize the Contracts and Purchasing Officer or designee to execute a three (3) year Lease Amendment No. 5, to Lease Agreement A-12410, effective March 1, 2025 with Ito Farms, Inc. (Lessor) for approximately 3,872 rentable square feet of space located at 1611 Bunker Hill Road, Suite 120, Salinas, California, for use by the Health Department’s Behavioral Health Bureau (Health); and
b. Authorize the Auditor-Controller to make lease payments starting at $8,848 per month for the first year of the extension period in accordance with the terms and adjusted rent schedule outlined in the Lease Agreement.
Report
RECOMMENDATION:
It is recommended that the County of Monterey Board of Supervisors:
a. Approve and authorize the Contracts and Purchasing Officer or designee to execute a three (3) year Lease Amendment No. 5, to Lease Agreement A-12410, effective March 1, 2025 with Ito Farms, Inc. (Lessor) for approximately 3,872 rentable square feet of space located at 1611 Bunker Hill Road, Suite 120, Salinas, California, for use by the Health Department’s Behavioral Health Bureau (Health); and
b. Authorize the Auditor-Controller to make lease payments starting at $8,848 per month for the first year of the extension period in accordance with the terms and adjusted rent schedule outlined in the Lease Agreement.
SUMMARY/DISCUSSION:
Approval of Lease Amendment No. 5 will provide continued occupancy of approximately 3,872 rentable square feet of space to be used by the County of Monterey Health Department (MCHD) Behavioral Health Bureau - Quality Improvement (QI) Unit. Renewal and Amendment No. 5 will extend the current lease for an additional three (3) years, with one two (2) year extension, under the same terms and conditions including annual rental adjustments.
Exhibit C has been replaced to reflect that the landlord will provide premises improvements at no additional cost to the agreed-upon rent amount. This ensures the enhancements are included without impacting the financial terms of the lease.
This work supports the County of Monterey Health Department 2025-2028 Strategic Plan Goal: 3. Enhance Employee Wellbeing and Workforce Capacity. It also supports one of the ten essential public health services, specifically: 8. Assure competent public and personal health care workforce.
OTHER AGENCY INVOLVEMENT:
The Department of Public Works, Facilities, and Parks (PWFP) assisted with the development of this report. The Office of the County Counsel and the Auditor-Controller’s Office have reviewed and approved the proposed Lease Amendment No. 5 as to legal form and fiscal provisions, respectively.
FINANCING:
This Lease Agreement is funded by a combination of Mental Health Services Act (MHSA), Federal Financial Participation (FFP) and Realignment funds. The funds for this Lease Agreement are included in the MCHD Behavioral Health Bureau (HEA012, Unit 8410) FY 2024-25 Adopted Budget and will be included in the FY 2025-26, FY 2026-27, and FY 2027-28 Requested Budgets.
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: Juanita Sanders, Management Analyst II, 755-5494
Reviewed by: Chris Le Venton, Operations Manager, 755-4513
Reviewed by: George K. Salcido, PWFP-Real Property Specialist
Approved by: Elsa Mendoza Jimenez, Director of Health Services, 755-4526
Attachments:
Board Report
Lease Amendment No. 5
Board Order (Amd. No. 4)
Lease Amendment No. 4
Board Order (Amd. No. 3)
Lease Amendment No. 3
Lease Amendment No. 2
Lease Amendment No. 1
Lease Agreement