Title
a. Approve and authorize the Contracts/Purchasing Officer to execute a five (5) year Lease Agreement, effective September 1, 2022 with SIBS, A Limited Partnership, for 12,122 square feet of general office and warehouse space at 632 East Alisal Street, Salinas, California, for use by the Health Department’s Public Health Bureau’s Women, Infants, and Children Nutritional Program; and
b. Authorize the Auditor-Controller to make lease payments of $11,851 per month in accordance with the terms of the Lease Agreement; and
c. Authorize the extension of the Lease Agreement for two (2) additional three-year terms under the same terms and conditions and make minor revisions to the Lease Agreement if deemed to be in the best interest of the County by the Contracts/Purchasing Officer and subject to review and approval as to form by the Office of the County Counsel and review and approval of fiscal provisions by the Auditor Controller’s Office.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Contracts/Purchasing Officer to execute a five (5) year Lease Agreement, effective September 1, 2022 with SIBS, A Limited Partnership, for 12,122 square feet of general office and warehouse space at 632 East Alisal Street, Salinas, California, for use by the Health Department’s Public Health Bureau’s Women, Infants, and Children Nutritional Program; and
b. Authorize the Auditor-Controller to make lease payments of $11,851 per month in accordance with the terms of the Lease Agreement; and
c. Authorize the extension of the Lease Agreement for two (2) additional three-year terms under the same terms and conditions and make minor revisions to the Lease Agreement if deemed to be in the best interest of the County by the Contracts/Purchasing Officer and subject to review and approval as to form by the Office of the County Counsel and review and approval of fiscal provisions by the Auditor Controller’s Office.
SUMMARY/DISCUSSION:
The Health Department’s Public Health Bureau’s Women, Infants, and Children Nutritional Program (WIC) has occupied space at 632 East Alisal Street, Salinas, California since February 1, 2002, with SIBS, A Limited Partnership. Approval of the new Lease Agreement will provide WIC with continued occupancy through July 31, 2027. The monthly rent for the initial lease term will be $11,851 and subject to annual rental adjustments of two percent (2%). The Landlord shall perform Premise Improvements in accordance with plans and specifications at a cost not to exceed $61,580. Said premise improvement costs shall be reimbursed to the landlord as one-time lump sum payment within sixty (60) days of premise improvement completion subject to the approval of the Health Department Facilities Manager.
The Lease Agreement provides for two (2), three (3) year extension options under the same terms and conditions. A “Termination by County” clause and the County’s standard insurance and indemnity provisions are incorporated in the Lease Agreement.
The identified facility continues to provide WIC operations with needed general office and warehouse space, and the monthly rent is considered cost effective when compared to relocating to a similar facility in the East Alisal Community of Salinas.
This work supports the Monterey County Health Department 2018-2022 Strategic Plan Goals: 1. Empower the community to improve health. 2. Enhance community health and safety through prevention. 3) Ensure access to culturally and linguistically appropriate, customer-friendly, quality services. It also supports the following of the ten essential public health services, specifically: 3. Inform, educate, and empower people about health issues. 7. Link people to needed personal health services and assure the provision of health care when otherwise unavailable.
OTHER AGENCY INVOLVEMENT:
The Department of Public Works Facilities and Parks advised the Health Department with its development of the Lease Agreement. The Office of the County Counsel has reviewed and approved the Lease Agreement as to form. Risk Management has approved it as to insurance and indemnity. The Auditor-Controller’s Office has reviewed and approved as to fiscal provisions.
FINANCING:
There is no financial impact to the General Fund resulting from approval of this Lease Agreement. There are sufficient appropriations in the Health Department, Public Health Bureau’s (001-4000-HEA003-8124) FY 2022-23 Adopted Budget to accommodate current fiscal year costs; the costs for next fiscal year will be incorporated in the Bureau’s FY 2023-24, FY 2024-25, FY 2025-26, and FY 2026-27 Requested Budgets. The initial rent payment will be $11,851.70, comprised of $10,115.30 for 7,781 square feet of office space ($1.30 per square foot), plus $1,736.40 for 4,341 square feet of warehouse space ($0.40 per square foot), per month. At the end of each year during the initial lease term or any extended term, the monthly rent shall be increased by two percent (2%).
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
Mark a check to 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: Alfredo M. Belman, Project Manager I, 755-4830
Approved by:
______________________________ Date:_________
Elsa Mendoza Jimenez, Director of Health, 755-4526
Attachments:
Lease Agreement
Location Map