SUBJECT
Title
GENERAL SERVICES - APPROVE LEASE FOR THE HEALTH AND HUMAN SERVICES AGENCY, LEMON GROVE FAMILY RESOURCE CENTER, AND NOTICE OF EXEMPTION (DISTRICT: 4)
Body
OVERVIEW
The Health and Human Services Agency (HHSA) Lemon Grove Family Resource Center (FRC) has operated out of a building located at 7065 Broadway in the City of Lemon Grove since 1990. On September 25, 2018 (08), the Board of Supervisors (Board) approved the most recent lease agreement, which was amended on November 7, 2023 (18). The lease agreement expires on November 30, 2025. The building was recently acquired by a health care provider who plans to occupy the building and HHSA has been advised that the lease will not be renewed. The new lessor has agreed to allow HHSA to remain in the building for several months past expiration if necessary.
The Department of General Services (DGS) has negotiated a lease to relocate the FRC to a building located at 3285 Lemon Grove Avenue in the City of Lemon Grove. The building is approximately 7,600 square feet and the proposed lease term is ten years with two consecutive options to extend for five years each. Today’s request is for Board of Supervisors approval of the lease agreement.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
1. Find the proposed lease for the Lemon Grove Family Resource Center is exempt from the California Environmental Quality Act (CEQA) Guidelines pursuant to State CEQA Guidelines Section 15303.
2. Approve and authorize the Director, Department of General Services, to execute the proposed lease for the Lemon Grove Family Resource Center at 3285 Lemon Grove Avenue, Lemon Grove.
EQUITY IMPACT STATEMENT
It is anticipated that the proposed lease for the Health and Human Services Agency will have a positive impact on the community by ensuring access for all through a fully optimized health and social service delivery system.
SUSTAINABILITY IMPACT STATEMENT
Implementing effective sustainability objectives is crucial to ensuring safe and healthy communities and contributing to the overall success of the region. The approval of the lease is appropriate as it supports the County’s Strategic Initiative of Sustainability to ensure the capability to respond to immediate needs for individuals, families, and the region. In addition, the proposed lease for the Health and Human Services Agency reduces their footprint by over 32,000 square feet. The smaller footprint translates to cost savings, less environmental impact, and a reduction in energy consumption.
FISCAL IMPACT
Funds for this request are included in the Fiscal Year (FY) 2025-2026 CAO Recommended Operational Plan for the Health and Human Services Agency (HHSA). If approved, this request will result in estimated costs and revenue of $270,233 in FY 2025-2026 based on a lease commencement date of February 1, 2026, with a 3% annual rent adjustment to go into effect February 1, 2027. Funds for the remaining contract term and for each option year (if exercised) will be included in future years’ operational plans for HHSA. The funding sources are Social Services Administrative Revenue, Realignment and existing General Purpose Revenue. There will be no change in net General Fund cost and no additional staff years.
BUSINESS IMPACT STATEMENT
N/A
Details
ADVISORY BOARD STATEMENT
N/A
BACKGROUND
For over 30 years the Health and Human Services Agency (HHSA) has leased a building located at 7065 Broadway in the City of Lemon Grove. The building houses the Lemon Grove Family Resource Center (FRC), which provides self-sufficiency and eligibility determinations for federal, state, and County funded programs like CalFresh, Medi-Cal, and CalWORKs to Lemon Grove clients.
The current lease was approved by the Board of Supervisors on September 25, 2018 (08), amended on November 7, 2023 (18), and expires on November 30, 2025. The building was recently acquired by a healthcare provider who plans to renovate and occupy the building and HHSA has been advised that the existing lease for the premises located at 7065 Broadway, Lemon Grove will not be renewed. The new lessor has agreed to allow HHSA to remain in the building for several months past expiration if necessary. HHSA has a need to continue providing self-sufficiency services in Lemon Grove.
Staff from the Department of General Services have negotiated a new lease for a building located at 3285 Lemon Grove Avenue, Lemon Grove. The new site is approximately one mile from the existing FRC, near public transportation, and across the street from the Lemon Grove Sheriff Substation. HHSA will put forward a communication plan for staff, current clients, and partnering agencies leading up to the move to ensure the provision of services is not interrupted in the community.
Details of the proposed lease are as follows:
|
LEASE PROVISION |
PROPOSED LEASE |
|
LESSOR |
Lemon Grove Avenue, LLC, a California limited liability company |
|
PREMISES |
Approximately 7,602 square feet |
|
TERM |
10 years |
|
OPTIONS TO EXTEND |
Two 5-year options |
|
RENT ADJUSTMENTS |
3% annual increases |
|
EARLY TERMINATION |
None |
|
UTILITIES |
County responsibility |
|
MAINTENANCE |
Landlord responsibility |
|
CUSTODIAL |
County responsibility |
|
MONTHLY OCCUPANCY COST Rent Utilities Maintenance Custodial TOTAL MONTHLY OCCUPANY COST |
$34,209 ($4.50/sq. ft.) $ 3,801 ($0.50/sq. ft.) $ 0 $16,037 ($2.11/sq. ft.) $54,047 ($7.11/sq. ft.) |
ENVIRONMENTAL STATEMENT
The proposed lease is categorically exempt from environmental review pursuant to Section 15303 of the California Environmental Quality Act (CEQA) Guidelines because it involves the lease and conversion of an existing commercial building that does not exceed 10,000 square feet in floor area on a site zoned for office use where all necessary public services and facilities are available, the surrounding area is not environmentally sensitive, and the project would not involve the use of significant amounts of hazardous substances. Additionally, no exceptions listed in CEQA Guidelines Section 15300.2 apply to the project. See Attachment A for Notice of Exemption.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s proposed action to approve the lease agreement for the Health and Human Services Agency supports the Community Initiative in the County of San Diego’s 2025-2030 Strategic Plan by providing services that support safe communities.
Respectfully submitted,
ebony n. shelton
Chief Administrative Officer
ATTACHMENT
Attachment A - Notice of Exemption