To: Board of Supervisors
From: Public Works
Agenda Section: Consent
SUBJECT:
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Request to Approve Option to Extend the Lease Term at 930 Sixth Street, Eureka
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve the Department of Health and Human Services (DHHS) request to exercise the Option to extend the lease term with California Newspaper Partnership for the period of March 1, 2019 through February 28, 2020; and
2. Authorize Public Works - Real Property Division to send notice to Lessor that the county is exercising the option to extend the lease term.
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SOURCE OF FUNDING:
Mental Health Fund
DISCUSSION:
On December 16, 2003, the Department of Health and Human Services (DHHS) entered into a lease with California Newspapers Partnership, Inc. for approximately Seven Thousand Two Hundred Sixty (7,260) square feet of office space located at 930 Sixth Street, Eureka. The use was for DHHS - Employment Training Division and Outreach Services. The use continued with a First and Second Amendment and various options to the lease to extend the term.
On February 27, 2018, a new lease (Attachment No. 1) was approved to remove the Employment Training Division and Outreach Services from the premises, and replace with the DHHS - Mental Health Medical Records unit. The change in use reduced the square footage of office space from Seven Thousand Two Hundred Sixty (7,260) square feet to Five Thousand Six Hundred Seven (5,607) square feet. No county public services are currently offered from this location.
The lease has an option to extend the lease term from March 1, 2019, to February 28, 2020. DHHS recommends that your Board approve this option to extend the lease term for one additional year.
Ms. Paula Patton, representative of Lessor, has permitted the county to exercise this option with less than the one hundred twenty (120) days prior to the end of the lease term (Attachment No. 2).
FINANCIAL IMPACT:
Starting March 1, 2019 of this Option Term, rent will continue at Nine Thousand Two Hundred Seventy-One Dollars ($9,271.00) per month, or $1.65 per square foot. This is the same amount of rent for the previous year pursuant to the Lease.
Lease expenditures will be paid from DHHS - Mental Health Administration budget unit 1170- 424. Funding sources include Federal Financial Participation or Medicaid services, Realignment and Mental Health Act. There will be no impact on the county General Fund.
Approving the option supports your Board’s Strategic Framework by creating opportunities for improved safety and health.
OTHER AGENCY INVOLVEMENT:
Public Works - Real Property Division
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board could choose not to approve this option; however, this alternative is not recommended because of the unavailability of office space to support the DHHS - Medical Records Division elsewhere.
ATTACHMENTS:
Attachment 1 - Lease dated February 27, 2018
Attachment 2 - Correspondence with Ms. Paula Patton
PREVIOUS ACTION/REFERRAL:
Board Order No.: C-15
Meeting of: 2/27/2018