SUBJECT
Title
GENERAL SERVICES - APPROVE LEASE AMENDMENTS FOR THE HEALTH AND HUMAN SERVICES AGENCY, CENTRAL REGION FAMILY RESOURCE CENTER - METRO AND SOUTH REGION LIVE WELL CENTER AT CHULA VISTA, AND RECEIVE NOTICES OF EXEMPTION (DISTRICT: 1)
Body
OVERVIEW
The County of San Diego (County) Health and Human Services Agency (HHSA) provides vital health, housing, and social services to San Diego County residents. In-person services can be accessed at Family Resource and Live Well Centers throughout the County. The Central Region Family Resource Center - Metro (Metro FRC) and the South Region Live Well Center at Chula Vista (Chula Vista LWC) are two sites that have been operated by HHSA since 1988 and 1999, respectively. Both sites require lease amendments to clarify terms and conditions and extend the terms of the leases.
Staff from the Department of General Services have negotiated a first amendment to the lease for the Metro FRC and a fourth amendment to the lease for the Chula Vista LWC. Today’s request is for Board of Supervisors approval of the amendments.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
1. Find the proposed leased amendment for the Central Region Family Resource Center - Metro is exempt from the California Environmental Quality Act (CEQA) Guidelines 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 Central Region Family Resource Center - Metro.
3. Find the proposed leased amendment for the South Region Live Well Center at Chula Vista is exempt from the California Environmental Quality Act (CEQA) Guidelines pursuant to State CEQA Guidelines Section 15301.
4. Approve and authorize the Director, Department of General Services, to execute the proposed lease amendment for the South Region Live Well Center at Chula Vista.
EQUITY IMPACT STATEMENT
It is anticipated that the proposed lease amendments 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 amendments 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
Central Region Family Resource Center - Metro
Funds for this request are included in the Fiscal Year (FY) 2024-25 Operational Plan and 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 $53,798 in FY 2024-2025 based on an amendment commencement date of August 1, 2024. Fiscal Year 2025-26 costs are estimated at $240,966 with a 3% rent adjustment to go into effect August 2025. Funds for the remaining contract term will be included in future years’ operational plans for HHSA. The funding sources are Social Services Administrative revenue and existing General Purpose Revenue. There will be no change in net General Fund cost and no additional staff years.
South Region Live Well Center at Chula Vista
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 $1,587,677 in FY 2025-2026 based on an amendment commencement date of December 1, 2025, with a 3% annual rent adjustment to go into effect December 1, 2026. 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, Health 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
Central Region Family Resource Center - Metro
The Health and Human Services Agency (HHSA) has operated the Central Region Family Resource Center - Metro (Metro FRC), located at 1130 Tenth Avenue, San Diego, since 1988. The Metro FRC provides self-sufficiency services and eligibility determinations for state and County funded programs like CalFresh, General Relief, and Medi-Cal to downtown San Diego clients.
The current lease, approved by the Board of Supervisors (Board) on April 15, 2014 (13), expired on July 31, 2024, and there are no options to extend the term. HHSA has a need to continue operating from this site. The lease went into holdover as additional time was needed to negotiate an amendment. The holdover has allowed County to continue occupancy on a month-to-month basis. Staff from the Department of General Services (DGS) have negotiated a lease amendment that will extend the term five years and allow for early termination after the third year in the event the site is no longer needed.
Details of the proposed first amendment are as follows:
|
LEASE PROVISION |
EXISTING LEASE |
PROPOSED LEASE AMENDMENT |
|
LESSOR |
Yueh-Ju Lin |
No change |
|
PREMISES |
Approximately 7,256 square feet located at 1130 Tenth Avenue, San Diego |
No change |
|
TERM |
10 years |
15 years total |
|
OPTIONS TO EXTEND |
None remaining |
No change |
|
RENT ADJUSTMENTS |
3% annually |
No change |
|
EARLY TERMINATION |
None |
One-time early termination right effective July 31, 2027 with payment of a termination fee |
|
UTILITIES |
Lessor pays |
County pays gas and electric |
|
MAINTENANCE |
Lessor pays |
Lessor pays |
|
CUSTODIAL |
Lessor pays |
Lessor pays |
|
MONTHLY OCCUPANCY COST Rent Utilities Maintenance Custodial TOTAL OCCUPANCY COST PER MONTH |
$17,967 ($2.48/sq. ft.) $ 0 $ 0 $ 0 $17,967 ($2.48/sq. ft.) |
$17,777 ($2.45/sq. ft.) $ 1,814 ($0.25/sq. ft.) $ 0 $ 0 $19,591 ($2.70/sq. ft.) |
South Region Live Well Center at Chula Vista
On June 16, 1998 (18) the Board approved a lease agreement for the South Region Live Well Center at Chula Vista (Chula Vista LWC) located at 690 Oxford, Chula Vista. The Chula Vista LWC provides services through three offices: the Family Resource Center which provides self-sufficiency and eligibility services; the Public Health Center which provides public health services including immunizations and testing and treatment for Tuberculosis and Sexually Transmitted Diseases; and Public Consulting Group which provides CalWORKS and refugee employment services case management.
The lease for the Chula Vista LWC has been extended through a series of amendments and expires on November 30, 2025. There are no options to extend the term and HHSA has a need to continue operating from this site. Staff from DGS have negotiated a lease amendment that will extend the term 10 years, provide two (2) five-year options to further extend the term, and require the lessor to complete capital improvements at their expense.
Details of the proposed fourth amendment to lease are as follows:
|
LEASE PROVISION |
EXISTING LEASE |
PROPOSED LEASE AMENDMENT |
|
LESSOR |
690 Oxford LLC |
No change |
|
PREMISES |
Approximately 76,885 square feet of space located at 690 Oxford, Chula Vista |
No change |
|
TERM |
26 years |
36 years total |
|
OPTIONS TO EXTEND |
None remaining |
Two (2) 5-year options |
|
RENT ADJUSTMENTS |
3% annually |
No change |
|
EARLY TERMINATION |
None |
No change |
|
UTILITIES |
Lessor pays all but gas and electric |
No change |
|
MAINTENANCE |
Lessor pays |
No change |
|
CUSTODIAL |
Lessor pays |
No change |
|
MONTHLY OCCUPANCY COST Rent Gas and Electric Maintenance Custodial TOTAL OCCUPANCY COST PER MONTH |
$151,334 ($1.97/sq. ft.) $ 19,221 ($0.25/sq. ft.) $ 0 $ 0 $170,555 ($2.22/sq. ft.) |
$207,590 ($2.70/sq. ft.) $ 19,221 ($0.25/sq. ft.) $ 0 $ 0 $226,811 ($2.95/sq. ft.) |
ENVIRONMENTAL STATEMENT
Central Region Family Resource Center - Metro
The proposed lease amendment for the Central Region Family Resource Center - Metro 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. The project is not subject to any of the exceptions to the Categorical Exemptions listed in Section 15300.2 of the CEQA Guidelines. See Attachment A for Notice of Exemption.
South Region Live Well Center at Chula Vista
The proposed lease amendment for the South Region Live Well Center at Chula Vista 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. The project is not subject to any of the exceptions to the Categorical Exemptions listed in Section 15300.2 of the CEQA Guidelines. See Attachment B for Notice of Exemption.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s proposed action to approve lease amendments 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
ATTACHMENTS
Attachment A- Notice of Exemption for Central Region Family Resource Center - Metro
Attachment B - Notice of Exemption for South Region Live Well Center at Chula Vista