To: Sonoma County Board of Supervisors
Department or Agency Name(s): Public Infrastructure / Health Services
Staff Name and Phone Number: Johannes J. Hoevertsz, 707-565-2550 / Tina Rivera, 707-565-4774
Vote Requirement: Majority
Supervisorial District(s): Fifth
Title:
Title
Lease Amendment for the Department of Health Services Urgent Care Center, 2225 Challenger Way, Santa Rosa, CA
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Recommended Action:
Recommended action
Authorize the Director of Sonoma County Public Infrastructure to execute a lease amendment, in a form substantially as attached to this Summary and in form approved by County Counsel, between SR Office Properties, LLC and Redbird SR Office Properties LLC and the County, for the installation of an emergency power generator, for the Health Services Crisis Stabilization Unit, located at 2225 Challenger Way, Santa Rosa.
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Executive Summary:
This matter involves installation of an emergency power generator for the Urgent Care Center (UCC) (also known as, Crisis Stabilization Unit - CSU), a 24/7 facility that is a key component of the Department of Health Services (DHS) Behavioral Health campus, located at the Lakes business complex, in southwest Santa Rosa. The UCC facility was constructed in March of 2016, and provides services to adult and juvenile clients, who are experiencing psychiatric crises.
The UCC facility does not currently have a back-up power generator. The proposed generator will enable the UCC to continue operations without disruption, in the event of a power outage, such as a PG&E Public Safety Power Shutoff event or disaster and will mitigate the need for DHS to transport clients and associated support staff off-campus to alternate locations in the interim before electrical power is restored. The installation of the back-up generator will incidentally support the County’s leased premises and operations. Given the needs for the generator to be compatible with existing site conditions, the SPI Projects and Real Estate team (SPI) has been working with SR Office Properties, LLC and Redbird SR Office Properties LLC (the Landlord) to ensure that all work and equipment be designed to conform with the Lakes campus environment, while servicing the needs of DHS and its clients. The proposed lease amendment memorializes the scope of work for the installation of the generator equipment and associated work, which will be performed by SPI, the terms for the work, and maintenance and repair of the generator.
Discussion:
The County Department of Health Services Urgent Care Center/Crisis Stabilization Unit (UCC/CSU) is located within the DHS Behavioral Health campus at 2225 Challenger Way in southwest Santa Rosa, in a leased facility comprised of 14,066 sq. ft. of office and clinic space. The lease expires February 28, 2031, and there are three, 5-year options to extend the term through February 2046.
The UCC facility is a 24-hour per day, 7-day per week program, with a capacity for 30 overnight treatment beds. The UCC houses voluntary and involuntary clients separately, addressing the individual treatment needs of each client. The UCC addresses the unique treatment needs of minors by providing a separate service/treatment area from adult clients. The UCC provides services for clients in crisis who may not need an overnight stay but may require respite support and care coordination services. The UCC is staffed with 18 FTE Behavioral Health Division staff.
Power outages disrupt services to clients and present significant operational challenges. Previous outages have resulted in the need to relocate clients and staff to nearby appropriate facilities and hospitals in Napa, Marin and Solano counties. Installation of the generator will alleviate the need to transport/relocate clients and reduce the disruption of the UCC/CSU operations in event of future power outages.
Staff seeks Board to delegate authority to the Director of Sonoma County Public Infrastructure for execution of a lease amendment between the Landlord and County, for the County to install, maintain and operate an emergency power generator for the UCC.
Proposed Lease Amendment. The terms for the proposed lease amendment include:
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Generator Installation: |
SPI will design, install, and provide the materials and generator equipment, and obtain the required permit approvals from the City of Santa Rosa and Bay Area Air Quality Management District, at County’s sole cost and expense. County anticipates installation to be completed in April 2024. |
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Cost: |
In 2021, the Landlord provided a proposal to the County for the Landlord’s contractor to provide the generator materials & equipment, and to perform the installation and the total cost to the installation was $334,682 However, the proposed terms for the Landlord’s installation of the generator and materials were not favorable to the County, as warranties for the equipment installed and the work performed were not included, if in the future, unforeseen defects were found or failure of the system occurred. Therefore the generator installation was not performed by the Landlord at that time, and the department requested a proposal from the County SPI for performance of this work. In 2023, SPI prepared a scope and cost estimates for the County to perform the work in the amount of $445,030. Without performing a detailed review of the Landlord’s cost, estimated project costs were higher than the previous estimates primarily due to market increases, County project management and administration costs, permitting costs, and public bid administration. In addition, the proposed lease amendment provides that the County will perform the work, be responsible for installation, maintenance, and repairs to the generator and associated costs, and provide warranty requirements for the labor and materials to complete the installation. |
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Maintenance and Repair: |
DHS will be responsible for the costs for SPI’s maintenance and repair of the generator, including monthly testing and fuel. Upon expiration or early termination of the lease, the generator will remain the property of the Landlord. |
Funding: Funding for the UCC lease rent costs is paid with the Intergovernmental Transfer (IGT) fund balance. On 8/22/23 your Board approved DHS’s requests for funding of $450,000 to pay for the materials/equipment and labor, and to accommodate the increased cost associated with this installation. Additional ongoing costs will be approximately $10,600 per year to maintain the generator. These annual maintenance costs for the generator will be included as part of the Department’s annual proposed budget in future years utilizing ongoing 1991 Mental Health Realignment funds.
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 2: Invest in capital systems to ensure continuity of operations and disaster response.
Objective: Objective 2: Invest in electric power resiliency projects at County facilities, including Veteran’s Buildings, used for evacuation sites, warming/cooling centers, or as alternate work facilities for delivery of critical services.
Prior Board Actions:
08/22/23 - Adopted a resolution authorizing budgetary adjustments to the Department of Health Services fiscal year 2022-2023 adopted budget, appropriating available Intergovern-mental Transfer fund balance to finance generator installation improvements to the County’s Urgent Care Center in the amount of $450,000.
01/25/22 - Delegated authority for the General Services Director to execute a lease amendment with the Landlord, in form approved by County Counsel, to allow for the installation of an emergency power generator [by the Landlord], in support of the Urgent Care Center
12/14/21 - Declared intent to enter into a proposed lease amendment with SR Office Properties, LLC and Redbird SR Office Properties, LLC (Landlord); adopted a Resolution to authorize budgetary adjustments to Department of Health Services Fiscal Year 2021-2022 adopted budget, programming available Inter-governmental Transfer fund balance to finance facilities improvements to the County’s Urgent Care Center in the amount of $334,682.
06/09/15-Authorized the General Services Director to execute the lease with SR Office Properties, LLC and Redbird SR Office Properties, LLC for premises located at 2225 Challenger Way (The Lakes campus).
05/12/15-Declared intent to enter into lease with SR Office Properties, LLC and Redbird SR Office Properties LLC.
Fiscal Summary
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Expenditures |
FY 23-24 Adopted |
FY 24-25 Projected |
FY 25-26 Projected |
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Budgeted Expenses |
$450,000 |
$10,600 |
$10,600 |
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Additional Appropriation Requested |
|
|
|
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Total Expenditures |
$450,000 |
$10,600 |
$10,600 |
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Funding Sources |
|
|
|
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General Fund/WA GF |
|
|
|
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State/Federal |
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|
|
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Fees/Other |
$450,000 |
$10,600 |
$10,600 |
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Use of Fund Balance |
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Contingencies |
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|
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Total Sources |
$450,000 |
$10,600 |
$10,600 |
Narrative Explanation of Fiscal Impacts:
Appropriations of $450,000 were approved on August 22, 2023, and are included in the current adopted budget. Ongoing maintenance costs for the generator will be included as part of the Department’s annual proposed budget in future years utilizing ongoing 1991 Mental Health Realignment funds.
Narrative Explanation of Staffing Impacts (If Required):
None.
Attachments:
1 - Site Plan
2 - Copy of proposed amendment
Related Items “On File” with the Clerk of the Board:
None.