To: Board of Supervisors
Department or Agency Name(s): Sonoma County Public Infrastructure / Health Services
Staff Name and Phone Number: Johannes J. Hoevertsz, SPI, 707-565-2550; Nolan Sullivan, Department of Health Services, 707-565-7901
Vote Requirement: Majority
Supervisorial District(s): First
Title:
Title
Lease Agreement for the Department of Health Services, 19080 Lomita Avenue, Building 1, Sonoma
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Recommended Action:
Recommended action
Authorize Clerk of the Board to publish a notice, declaring the Board's intent to enter into a lease with Gary D. Nelson and Marcia L. Nelson, Trustees of the Gary D. Nelson and Marcia L. Nelson Family Trust (the Landlord), for office space at 19080 Lomita Avenue, Building 1, in Sonoma. The proposed lease would be for an initial term of three years, with one, five-year option to extend the term; with an initial rent payment of $2,755.35 per month ($1.95 per sq. ft.), subject to annual 3% increases.
(First District)
end
Executive Summary:
This matter involves a proposed lease for the Department of Health Services (“DHS”), to locate the Behavioral Health (BH) Sonoma Community Mental Health Center (CMHC) program at 19080 Lomita Avenue in Sonoma. Additionally, this site will host BH Youth and Family Services (YFS), Crisis Assessment Prevention & Education (CAPE) team, and the Mobile Support Team, providing integrated services to Sonoma Valley residents in need of Specialty Mental Health Services. This service location is essential to meeting the County’s obligations regarding network adequacy (the County's ability to provide sufficient numbers of accessible, in-network services to meet the behavioral health care needs of our geographic area). Additionally, the Homelessness Services Division will provide navigation and outreach services, assisting those in need to connect with services critical to reducing homelessness.
Discussion:
This item seeks Board approval to publish a notice declaring the Board’s intention to execute a lease between Gary D. Nelson and Marcia L. Nelson, Trustees of the Gary D. Nelson and Marcia L. Nelson Family Trust (the Landlord) and the County of Sonoma, for 1,413 sq. ft. of office space in Building 1, located at 19080 Lomita Avenue in Sonoma. The Premises will provide office space for the DHS Behavioral Health Division to relocate the Sonoma Community Mental Health Center (CMHC) program there as well as provide a centralized location for Youth and Family Services (YFS), Crisis Assessment Prevention & Education Team (CAPE), and the Mobile Support Team (MST). Additionally, the Homelessness Services Division intends to expand its services by stationing a worker(s) at this location to provide navigation and outreach services, making services more readily available to the community within the Sonoma Valley area.
The Department of Health Services (DHS) was previously located at 19080 Lomita Avenue in the town of Sonoma. However, DHS vacated this location due to increased demand for space to support other County departments and Sonoma Valley community-based organizations. A proposed shared office arrangement at that time did not adequately meet the privacy and security standards required by Behavioral Health staff while also addressing essential programmatic needs.
The newly proposed office space adjacent to the current County-leased facility (Building 2) at the same location would resolve these concerns by providing a dedicated, secure, and private setting that aligns with the operational requirements of the affected Behavioral Health programs. Additionally, it would maintain a centrally located service center in the Sonoma Valley, ensuring continued accessibility for the community.
Adult outpatient services within the DHS Behavioral Health Division currently provide services at four satellite locations Cloverdale, Petaluma, Guerneville, and Sonoma, in addition to their main central campus at The Lakes on Challenger Way and Capricorn Way in southwest Santa Rosa. In FY 2024-2025, DHS Behavioral Health served 223 participants in the Sonoma Valley area (195 adults and 88 youth), with 167 receiving mental health services and 59 receiving substance use disorder services (some overlapping). Sixty-eight (68) BH clients in this region identified as Latino/Hispanic (30.5%). The Sonoma CMHC team rendered 964 specialty mental health services in this region during the past fiscal year. The proposed new location would provide the Sonoma CMHC with its own office, including space for the YFS, CAPE and MST to continue rendering services, with adjacency to other County and agency programs.
The Sonoma CMHC location is essential for meeting the time and distance standards set by the State Department of Health Care Services (DHCS) for certifying network adequacy. In accordance with 42 CFR 438.68(c)(1) <https://www.ecfr.gov/current/title-42/chapter-IV/subchapter-C/part-438/subpart-B/section-438.68>, the standards specified in BHIN 25-013 <https://www.dhcs.ca.gov/Documents/BHIN-25-013-2025-Network-Certification-Requirements.pdf> take into consideration the following regarding time and distance: The geographic location of network providers and Medi-Cal members, considering distance, travel time, and the means of transportation ordinarily used by Medi-Cal members. For Sonoma County, the Time Distance standard is up to 30 miles or 60 minutes from the beneficiary’s place of residence, meaning that DHS must provide service locations within these time and distance standards for DHS clients. DHS-BHD has a permitted exception for Sea Ranch and Annapolis zip codes, but all other zip codes, including Sonoma, must fall into this standard. The proposed Lomita location would allow DHS to continue to meet the Network Adequacy requirements and compliance with DHCS.
The Homelessness Services Division currently coordinates with providers servicing the Sonoma Valley to identify outreach needs in the area. This includes coordinating placements at County Interim Shelter Sites. There are currently 71 unsheltered individuals residing in Sonoma Valley based on the current Sonoma Valley By-Names-List and 30 identified areas of need where homeless individuals often frequent. Due to the location of the current Homelessness Services Division, it is difficult to provide the level of resources needed to fully support the area. Stationing team member(s) in the Sonoma Valley area will allow for greater access to services and the resources needed to reduce the number of individuals experiencing homelessness.
The planned leased office space at 19080 Lomita Avenue in the town of Sonoma will accommodate up to seven (7) workspaces to support two (2) Sonoma County Department of Health Services (DHS) programs - Homelessness Services and Behavioral Health. The space allocation includes a minimum of one (1) and a maximum of two (2) Homelessness Services staff, and a minimum of four (4) and a maximum of five (5) Behavioral Health staff. The office layout will be intentionally divided into two distinct areas to maintain compliance with the Health Insurance Portability and Accountability Act (HIPAA) and to ensure appropriate separation between client interactions, confidential conversations, and program operations. This configuration allows both programs to function effectively with limited on-site staff while preserving the confidentiality and integrity of client information and providing suitable space for client engagement and program coordination.
Proposed Lease. The terms for the proposed Lease are as follows:
|
Premises |
1,431 rentable sq. ft. in Building 1, located at 19080 Lomita Avenue, Sonoma. (Please see Attachment 1, Floor Plan and Map.) |
|
Term: |
Three (3) years commencing on approx. January 1, 2026, with one, 5-year option to extend. |
|
Rent: |
$2,755.35 per month ($1.95 psf), subject to 3% annual increases. The $1.95 psf rent rate is below market rate, which is between $2.60 per sq. ft. to $3.45 per sq. ft. for current, available office space for lease in Sonoma. DHS would be responsible for providing janitorial services at its own cost/ expense. |
|
Tenant Improvements: |
The Premises will be provided turnkey by the Landlord, at no-cost to the County. Landlord will provide the system for network, phones and computers, at Landlord’s sole cost and expense. |
|
Termination: |
County may terminate the Lease after the initial three-year term if funding for the Premises or program(s) is reduced or withdrawn, with 8 months’ prior written termination notice, to the Landlord and subject to payment of the Lease Termination Fee as stated in the Lease. |
|
Right of First Refusal to Purchase |
If the Landlord receives or solicits a bona fide offer from a third party to purchase the property on terms acceptable to Landlord, or if the property is offered for sale by foreclosure or any other forced sale, the County will have a right of first refusal to purchase the property, subject to certain criteria. |
Funding: County’s one-time move costs associated with the new Lease include ISD/IT work to connect to the County system, move management, office equipment and furnishings, and proximity card readers, for a total of $104,000. Lease rent for the months of January 2026 through June 2026 is approx. $16,532.10. Landlord is responsible for maintenance, repairs and utilities for the Premises, at Landlord’s sole cost and expense, except for janitorial services. Janitorial services will be provided by DHS, at a cost of approx. $3,600 during FY25-26. Lease rent and one-time move costs will be paid from accumulated fund balances from the Mental Health Services Act (MHSA) and Measure O funding. Future funding will be paid for using Behavioral Health Services Act (BHSA).
Procedural Authority. Government Code Section 25350 <https://law.justia.com/codes/california/code-gov/title-3/division-2/part-2/chapter-5/article-1/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 takes the requested actions, this matter will return to the Board on or after December 9, 2025, for consideration and consummation of the proposed new Lease in accordance with the Government Code.
Strategic Plan:
This item directly supports the County’s Five-year Strategic Plan and is aligned with the following pillar, goal, and objective.
Pillar: Resilient Infrastructure
Goal: Goal 1: Invest in County buildings and technology to enhance service delivery and improve employee mobility
Objective: Objective 4: Establish resilient neighborhood/regional and satellite service centers with access to transportation systems in West County, Cloverdale, and Sonoma Valley, as expressed in the Real Estate Master Plan, by 2023 in order to improve equitable public access to services.
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
None.
Fiscal Summary
|
Expenditures |
FY 25-26 Adopted |
FY26-27 Projected |
FY 27-28 Projected |
|
Budgeted Expenses |
$124,132 |
$40,760 |
$41,767 |
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
$124,132 |
$40,760 |
$41,767 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
$62,066 |
$20,380 |
$20,884 |
|
Fees/Other |
$62,066 |
$20,380 |
$20,883 |
|
Use of Fund Balance |
|
|
|
|
Contingencies |
|
|
|
|
Total Sources |
$124,132 |
$40,760 |
$41,767 |
Narrative Explanation of Fiscal Impacts:
If your Board approves execution of the proposed lease, the anticipated move-in would occur in January 2026. The total expenditures for FY2025-2026 include approximately six months of rent (January through June 2026), or $16,532; six months of janitorial services ($3,600); one-time move costs of approx. $104,000, for a total of $124,132 for FY2025-2026. The one-time move and rent expenses incurred during FY25-26 will be paid from Mental Health Services Act (MHSA) and Measure O funding. No additional appropriations for FY2025-2026 will be requested, and future fiscal year funding will be requested during the annual budget process.
Appropriations for FY 2026-2027 and FY 2027-2028 will be included in the DHS Recommended Budgets including rent payments and janitorial charges for this location which are included in the financial table above.
Narrative Explanation of Staffing Impacts (If Required):
None.
Attachments:
1 - Notice of Intent
2 - Floor Plan and Map
3 - Copy of Proposed Lease
Related Items “On File” with the Clerk of the Board:
None.