To: Board of Supervisors
From: Public Works
SUBJECT:
Request Approval to Exercise the First Option to Extend the Term of the First Amendment to the Lease at 231 Second Street & 134 D Street, Eureka with Pacific Partners Property Management, Inc.
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors approve exercising the first option to extend the term of the First Amendment to the Lease at 231 Second Street, Suites 100, 301 and 303, Eureka, and 134 D Street, Suites 101 and 302, Eureka, with Pacific Partners Property Management, Inc. through December 31, 2019; and authorize Public Works - Real Property Division to send a notice to Lessor that the county is exercising the first option to extend the first amendment to the lease through December 31, 2019.
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SOURCE OF FUNDING:
Social Services Fund
DISCUSSION:
On October 21, 2008, the Department of Health and Human Resources (DHHS) entered into a lease (Attachment 1) at 231 Second Street, Suite 100. On October 21, 2008, DHHS entered into a lease (Attachment 2) at 134 D Street, Suites 101 and 302. On December 15, 2015, DHHS entered into a lease (Attachment 3) at 231 Second Street, Suites 301 and 303. On September 20, 2016, DHHS entered into a First Amendment (Attachment 4) to combine the term and provisions of these leases, and to assign the lease to a new Lessor - Pacific Partners Property Management, Inc (PPPM). Under the terms of the First Amendment, the lease terminates on December 31, 2018. The county also has the option to extend the First Amendment with PPPM through December 31, 2019.
231 Second Street and 134 D Street comprises of the same building, with entrances to the building at the respective streets. The office locations provides a visitation center for court ordered visits between dependent children and their parents, and to co-locate staff. The staff is an integrated team of Mental Health Clinicians and Case Managers, Public Health Nurses, multiple Child Welfare Services social workers and program staff for services to foster children. These locations are in close proximity to other community services and public transportation. Therefore, DHHS recommends the Board approve exercising the option to extend the First Amendment to the Lease through December 31, 2019.
FINANCIAL IMPACT:
The lease costs for the premises, consisting of five thousand four hundred eighty-five (5,485) square feet at $1.32 per square foot is Seven Thousand Two Hundred Thirty Four Dollars ($7,234.00) per month. In addition, the Lessor pays water, sewer, trash removal and janitorial services. The current monthly rent is included in the approved budget for fiscal year (FY) 2018-19 in Funds 1160, Budget Unit 516. There is no impact to the General Fund.
The recommended action conforms to the Board of Supervisors’ core roles of providing for and maintaining infrastructure.
OTHER AGENCY INVOLVEMENT:
Public Works - Real Property Division
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board may choose not to approve the first option to extend the lease through December 31, 2019; however, this is not recommended because DHHS would need to find alternative locations, which is not feasible.
ATTACHMENTS:
Attachment 1: Lease for 231 Second Street, Suite 100
Attachment 2: Lease for 134 D Street, Suites 101 & 302
Attachment 3: Lease for 231 Second Street, Suite 301 & 303
Attachment 4: First Amendment
PREVIOUS ACTION/REFERRAL:
Board Order No.: D-9, D-8, C-14, C-15, C-15, C-8, C-9, C-19, C-20, C-11, C-12, C-10, D-22
Meeting of: 10/21/08, 10/21/08, 5/17/11, 5/17/11, 7/12/11, 7/17/12, 7/17/12, 8/13/13, 8/13/13, 7/22/14, 7/22/14, 12/15/15, 9/20/16