To: Sonoma County Board of Supervisors
Department or Agency Name(s): Public Infrastructure / Health Services
Staff Name and Phone Number: Johannes J. Hoevertsz-SPI, 707-565-2550 / Tina Rivera-DHS, 707-565-4774
Vote Requirement: Majority
Supervisorial District(s): All
Title:
Title
Lease Amendment for Department of Health Services, 2227 Capricorn Way, Santa Rosa
End
Recommended Action:
Recommended action
Authorize Clerk of the Board to publish a notice, declaring the Board's intent to enter into the proposed lease amendment with SR Lakes Waterfall DE, LLC and Redbird SR Lakes Waterfall DE, LLC (the Landlord), to increase the leased premises at 2227 Capricorn Way, Santa Rosa.
end
Executive Summary:
This matter involves a proposed lease expansion for the Department of Health Services (DHS), which currently leases office space at 2227 Capricorn Way, in Santa Rosa. The proposed 1,168 sq. ft. expansion will provide office space for the DHS Behavioral Health Transportation Team and Transitional Recovery program. Currently, these programs are housed in neighboring suites with other programs, which impinge on the space and operational needs of those other programs.
Discussion:
This item seeks Board approval to publish a notice declaring the Board’s intention to amend the current lease between SR Lakes Waterfall DE, LLC and Redbird SR Lakes Waterfall DE, LLC (the Landlord) and the County, in order to expand the current premises by 1,168 sq. ft. (Expansion Space -Suite 202), at 2227 Capricorn Way in Santa Rosa.
The DHS Behavioral Health Division has leased office space at 2227 Capricorn Way, in Santa Rosa (Suites 201, 203, 206, 208, 210 and 212) since December 2017. The current premises are comprised of 24,139 sq. ft. of office space, providing space for the Administration Services for the Behavioral Health Division, as well as the following Behavioral Health Division program services: Quality Assurance and Quality Improvement teams, Medical Records, Youth & Family Support Services, Family Advocacy Support & Treatment, and the Substance Use Disorder Program. The lease term expires on July 30, 2028, and the current monthly rent is $51,407 ($626,890 per year).
The Expansion Space will provide space for the Behavioral Health Transportation Team and Transitional Recovery program. The Team and program work to provide safe transportation for Medi-Cal beneficiaries from acute and long-term psychiatric facilities to community placements, transportation and support for medical appointments for clients of the Behavioral Health Division, and assessment, case management, and treatment to County Lanterman Petris Short (LPS) conservatees in long-term facilities within and outside of Sonoma County. The Transitional Recovery program services include ongoing supervision and support to adults who require facility-based treatment, offering an opportunity to stabilize and prepare for community discharge. Eight (8) FTE’s will be located to the Expansion Space to administer these services.
Proposed Lease Amendment. The terms for the proposed Lease Amendment are as follows:
Premises: Suite 202, comprised of 1,168 rentable sq. ft. at 2227 Capricorn Way in Santa Rosa. The current Premises are adjacent to other DHS Behavioral Health program offices at 2225, 2235, 2245 and 2255 Challenger Way, and 2227 Capricorn Way in south Santa Rosa, to provide easy access to BH services for clients at a single location. Please see the attached Site Plan.
Term: No change. The lease term will expire on July 30, 2028.
Rent: $2,241 per month ($2.09 per sq. ft.) commencing on the effective date of the proposed lease amendment for the Expansion Space through July 30, 2024, subject to 3% annual increases. In addition to base rent for the lease, the department pays for its prorata share of operational expenses. The $2.09 psf rental rate is at market rate, which is between $1.70 per sq. ft. to $2.66 per sq. ft. for comparable available office space in the south Santa Rosa area.
Tenant
Improvements: Carpet cleaning and repainting, performed by Landlord, at Landlord’s sole cost and expense.
Termination: County may terminate the lease if funding for the Premises or program is reduced or withdrawn, or for any reason, with 180 days’ prior written notice, to the Landlord.
Funding: The one-time move costs of $45,000 associated with the Expansion Space include: ISD/IT work to provide Wi-Fi connectivity, office equipment and furnishings for the Expansion Space, and $2,441 for the increase in rent for the month of June 2024. These costs are included in the FY 2023-24 current budget. Future ongoing lease rent costs will be paid out of programmed 1991 Mental Health Realignment funds.
Procedural Authority. Government Code Section 25350 requires two (2) Board actions, which includes publication of a notice of intent, for the County to lease real property as tenant, and where the lease is valued at more than $50,000. If your Board approves the requested actions, this matter will return to the Board on or after May 21, 2024, for consideration and consummation of the proposed lease amendment in accordance with the Government Code.
Strategic Plan:
N/A.
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
01/10/23:
Authorized the first amendment for the 2227 Capricorn Way lease.
12/06/22:
A. Authorized a notice of intent to enter into proposed first lease amendment for the 2227 Capricorn Way lease.
B. Adopted a Resolution authorizing a $137,451 budgetary adjustment.
12/05/17:
Authorized the lease for 2227 Capricorn Way, Santa Rosa, with SR Lakes Waterfall DE, LLC and Redbird SR Lakes Waterfall DE, LLC, in addition to leases for 2235 Challenger Way, Santa Rosa and 2255 Challenger Way, Santa Rosa.
11/17/17:
A. Authorized notices of intent to execute the 2227 Capricorn Way, 2235 Challenger Way, and 2255 Challenger Way leases;
B. Adopted a Resolution authorizing budgetary adjustments to allocate General Fund contingency of $1,006,338 and $400,000 from Services Fund Balance to Capital Projects to fund one-time relocation of Behavioral Health facilities from the Chanate Campus.
C. Authorized a letter-agreement for pre-lease architectural construction drawings and building permits application.
Fiscal Summary
|
Expenditures |
FY 23-24 Adopted |
FY 24-25 Projected |
FY 25-26 Projected |
|
Budgeted Expenses |
$47,441 |
$30,099 |
$30,172 |
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
$47,441 |
$30,099 |
$30,172 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
$47,441 |
$30,099 |
$30,172 |
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
|
|
|
|
Contingencies |
|
|
|
|
Total Sources |
$47,441 |
$30,099 |
$30,172 |
Narrative Explanation of Fiscal Impacts:
A total of $47,441 is included in FY 2023-2024 current budget: $2,441 will be applied towards lease rent for the Expansion Space for the month of June 2024, and the balance of $45,000 for the one-time ISD/IT equipment installation, furniture, and set up cost. Ongoing rent expenditures will be funded via 1991 Health Realignment or other appropriate funding.
Narrative Explanation of Staffing Impacts (If Required):
None.
Attachments:
1 - Site Plan
2 - Notice of Intent
3 - Copy of Proposed Lease Amendment
Related Items “On File” with the Clerk of the Board:
None.