SUBJECT
Title
GENERAL SERVICES - APPROVAL OF FIRST AMENDMENT TO LEASE AGREEMENT FOR HEALTH AND HUMAN SERVICES AGENCY, 8765 FLETCHER PARKWAY, LA MESA, AND NOTICE OF EXEMPTION (DISTRICT: 4)
Body
OVERVIEW
On January 8, 2013 (7), the San Diego County Board of Supervisors (Board) approved a new lease agreement to allow Health and Human Services Agency (HHSA) to operate the Access Customer Service Center at 8765 Fletcher Parkway, La Mesa. The Access Customer Service Center is an extension of the County of San Diego Family Resource Centers (FRC), and they assist residents, providers, and other government agencies with questions or needs related to FRC programs and services.
The lease for the Access Customer Service Center expires on April 30, 2024, and there are no options to extend the term. HHSA has a need to continue operating from this site. Staff from the Department of General Services have negotiated a lease amendment that will extend the term by five years. Today’s request is for Board approval of the amendment.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
1. Find that the proposed lease amendment is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines section 15301.
2. Approve and authorize the Director, Department of General Services, to execute the proposed lease amendment for the premises located at 8765 Fletcher Parkway, La Mesa.
EQUITY IMPACT STATEMENT
It is anticipated that the proposed lease amendment 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 amendment 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.
FISCAL IMPACT
Funds for this request are included in the Fiscal Year (FY) 2023-24 Operational Plan and FY 2024-2026 CAO Recommended Operational Plan for the Health and Human Services Agency (HHSA). If approved, this request will result in estimated costs and revenue of $169,834 in FY 2023-2024 based on an amendment commencement date of May 1, 2024, and estimated costs and revenue of $1,024,098 in FY 2024-2025, with a 3% annual rent adjustment to go into effect May 2025. Funds for the remaining contract term will be included in future years’ operational plans for HHSA. The funding source is Social Services Administrative Revenue and Realignment. 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
On January 8, 2013 (7), the San Diego County Board of Supervisors (Board) approved a new lease agreement for approximately 32,044 square feet of space located at 8765 Fletcher Parkway, La Mesa, for the Health and Human Services Agency (HHSA) Access Customer Service Center. To continue to provide quality customer service to clients a need was identified to expand the Access Customer Service Center. The new location provided space for additional staff, a larger call center, training rooms, and related admin services to support Regional Self-Sufficiency. The Access Customer Service Center is an extension of the Family Resource Centers (FRC), and they assist residents, providers, and other government agencies with questions or needs related to FRC programs and services.
The lease for the Access Customer Service Center expires on April 30, 2024, and there are no options to extend the term. HHSA has a need to continue operating from this site. Staff from the Department of General Services have negotiated a lease amendment that will extend the term five years and provide one five-year option to further extend the term.
Details of the proposed first amendment to lease are as follows:
|
LEASE PROVISION |
EXISTING LEASE |
PROPOSED LEASE AMENDMENT |
|
LESSOR |
Interinsurance Exchange of the Automobile Club |
No change |
|
PREMISES |
32,044 square feet located on the 2nd and 3rd floors |
No change |
|
TERM |
11 years |
16 years total |
|
OPTIONS TO EXTEND |
None remaining |
One five-year option to extend the term. |
|
RENT ADJUSTMENTS |
3% annually |
No change |
|
EARLY TERMINATION |
Yes, with one year notice and payment of an early termination charge |
No early termination |
|
UTILITIES |
Lessor pays |
No change |
|
MAINTENANCE |
Lessor pays |
No change |
|
CUSTODIAL |
Lessor pays |
No change |
|
MONTHLY OCCUPANCY COST Rent Utilities Maintenance Custodial TOTAL OCCUPANCY COST PER MONTH |
Current Costs $83,976 (2.62) - - - $83,976 (2.62) |
Costs for year 12 of Term $84,917 (2.65) - - - $84,917 (2.65) |
ENVIRONMENTAL STATEMENT
The proposed lease amendment is categorically exempt from environmental review pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines because it involves amending an existing lease for use of an existing building, involving negligible or no expansion of the existing use.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s proposed action to approve the lease amendment for the Health and Human Services Agency supports the Community Initiative in the County of San Diego’s 2024-2029 Strategic Plan by providing services that support safe communities.
Respectfully submitted,
SARAH E. AGHASSI
Interim Chief Administrative Officer
ATTACHMENT(S)
Attachment A: Notice of Exemption