SUBJECT
Title
GENERAL SERVICES - APPROVAL OF THIRD AMENDMENT TO LEASE AGREEMENT FOR HEALTH AND HUMAN SERVICES AGENCY, 3609 OCEAN RANCH BOULEVARD, OCEANSIDE, AND NOTICE OF EXEMPTION (DISTRICT: 5)
Body
OVERVIEW
On November 15, 2016 (11), the San Diego County Board of Supervisors (Board) approved a lease for space located at 3609 Ocean Ranch Boulevard in Oceanside for use by the Health and Human Services Agency (HHSA). HHSA is currently utilizing this space as the North Coastal Public Health Center. This public health center provides access to preventive health services such as immunizations and education with an emphasis on communicable disease control and maternal child health for families and individuals in North Coastal communities. The lease has been extended through a series of Board approved amendments.
The lease expires on August 31, 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 one (1) year and provide three (3) one-year options to further extend the term. 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 3609 Ocean Ranch Boulevard, Oceanside.
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) 2024-2026 Operational Plan for the Health and Human Services Agency (HHSA). If approved, this request will result in estimated costs and revenue of $267,440 in FY 2024-2025 based on an amendment commencement date of September 1, 2024. The funding sources are existing 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
On November 15, 2016 (11), the San Diego County Board of Supervisors (Board) approved a lease for space located at 3609 Ocean Ranch Boulevard, Oceanside, for the Health and Human Services Agency (HHSA). The lease provided office space for HHSA Public Health Services and interim office space for HHSA North Coastal Regional administrative staff that was displaced during construction of the North Coastal Live Well Health Center and North Coastal Live Well Center. Currently, HHSA Medical Care Services is utilizing this space as the North Coastal Public Health Center. This public health center provides access to preventive health services such as immunizations and education with an emphasis on communicable disease control and maternal child health for families and individuals in North Coastal communities. On July 24, 2018 (9), the Board approved the first amendment to lease that reduced the size of the premises, to accommodate staff moves, and extended the term. As more staff relocated to the new buildings, the premises was further reduced, and the term extended when the Board approved the second amendment to lease on July 13, 2021 (30). The lease expires on August 31, 2024, and there are no options to extend the term.
HHSA Medical Care Services programs and staffing serving the North Coastal Region are being assessed and there is a need to continue operating in this building. Staff from the Department of General Services (DGS) have negotiated a lease amendment that will extend the term one (1) year and provide three (3) one-year options to further extend the term.
Details of the proposed first amendment to lease are as follows:
|
LEASE PROVISION |
EXISTING LEASE |
PROPOSED LEASE AMENDMENT |
|
LESSOR |
Ocean Ranch Boulevard 3605 Corp. |
No change |
|
PREMISES |
8,229 rentable square feet |
No change |
|
TERM |
7.5 years |
8.5 years total |
|
OPTIONS TO EXTEND |
Two (2) options of one (1) year each |
Three (3) options of one (1) year each |
|
RENT ADJUSTMENTS |
3% annually |
No adjustment |
|
EARLY TERMINATION |
No early termination |
No change |
|
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 |
$28,809 (3.50) - - - $28,809 (3.50) |
$26,744 (3.25) - - - $26,744 (3.25) |
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,
EBONY N. SHELTON
Chief Administrative Officer
ATTACHMENT
Attachment A: Notice of Exemption