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Agenda Item
ASR
Control 18-000889 |
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MEETING DATE: |
10/16/18 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
4 |
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SUBMITTING
Agency/Department: |
County Executive Office (Approved) |
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Department contact
person(s): |
Thomas A. Miller (714) 834-7419 |
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Richard Sanchez (714) 834-2830 |
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Subject: Second Amendment to Lease at
6301 Beach Boulevard for the Health Care Agency
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ceo CONCUR |
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Clerk of the Board |
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Concur |
Approved Agreement to Form |
Consent Calendar |
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3 Votes Board Majority |
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Budgeted: Yes |
Current Year Cost:
$42,383.25 |
Annual Cost:
See Financial Impact Section |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 6/25/2013
#7, 5/22/2007 #53 |
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RECOMMENDED ACTION(S):
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1. |
Find that the project is categorically exempt from the California Environmental Quality Act (CEQA), Class 1 (Existing Facilities) pursuant to CEQA Guidelines, Section 15301. |
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2. |
Approve the Chair of the Board to execute the Second Amendment to Lease Agreement with Beach HPY, LLC, a California Limited Liability Company, for 2,691 rentable square feet of office space for the Health Care Agency located at 6301 Beach Boulevard, in the City of Buena Park, for continued use of the premises as a Public Health/Women, Infants and Children program facility through December 31, 2023. |
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3. |
Authorize the Chief Real Estate Officer or designee to execute subsequent Lease amendments for non-monetary changes and/or monetary changes that do not increase County costs by more than $50,000 per year. |
SUMMARY:
Approval of the Second Amendment to Lease with Beach HPY, LLC, a California limited liability company, will continue to provide 2,691 square feet of office space for the Health Care Agency at 6301 Beach Boulevard in Buena Park, for an additional five-year and three-month period through December 31, 2023.
BACKGROUND INFORMATION:
The Health Care Agency
(HCA) through its Public Health Women, Infant & Children’s (WIC)
program provides assistance to low to moderate-income pregnant, breastfeeding
and postpartum women, and infants/children up to age 5 who are at nutritional
risk. The program provides participants with supplemental food, nutrition education, and
breastfeeding support and assists them in finding health care and other
community services. The purpose of WIC
is to prevent health problems and to improve the health of program participants
during critical times of growth and development. HCA has several WIC locations
throughout Orange County to provide these important services to the public.
On May 22, 2007, the Board approved a 10-year Lease for a new WIC
office, located at 6301 Beach Boulevard in Buena Park (Premises). Prior to the expiration of the original
10-term, on June 25, 2013, the Board approved the First Amendment to Lease,
which significantly reduced the size of the Premises from 6,904 rentable square
feet (RSF) to 2,691 RSF. The Lease is currently in month-to-month holdover, due
to negotiation efforts, pursuant to the holdover provisions of the Lease and
with mutual agreement of the Lessor.
HCA has been at this location for 11 years, and has a continued need to
provide these WIC services to its clients at the Premises. CEO Real Estate and
HCA are recommending extending the Lease through December 31, 2023. Under the terms of the proposed Second
Amendment to Lease (Proposed Second Amendment), the rent will start at $2.25
RSF, full service gross, with no pass through for building operating
expenses. The proposed rent is
consistent with current market rent and will increase annually at a fixed
3%. The landlord has agreed to give HCA
two months of free rent (November 1, 2018 and November 1, 2019) and will
complete minor necessary tenant improvements, upon Board approval of the
Proposed Second Amendment.
The Proposed Second Amendment is consistent with HCA’s goals and is
anticipated to continue to be an excellent site for future years. With the inclusion of a five-year option to
extend the term of the lease, HCA is offered excellent stability for its WIC program
for many years.
The Lessor is requesting
evidence of the County’s self-insurance, with a requirement that the Lessor and
its Property Manager be listed as Additional Insureds on the County’s program
of self-insurance. Risk Management has reviewed and concurred that though this
is not a standard County provision, this provision should not expose the County
to any unusual or additional liability.
The Lease contains mutual indemnification which reduces the risk to the
County. Attached as confirmation is the Risk Assessment (Attachment D).
Compliance with CEQA: The proposed
project is Categorically Exempt (Class 1) from the provisions of CEQA pursuant
to Section 15301 (Class 1), because the project involves the lease of an
existing office space with minor tenant improvements, involving negligible or no expansion of an existing use.
FINANCIAL IMPACT:
Appropriations for this Lease are included in the FY 2018-2019 Budget and will be included in the budgeting process for future years.
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FY 2018-19 |
$ 42,383.25 |
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FY 2019-20 |
$ 67,873.73 |
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FY 2020-21 |
$ 76,333.40 |
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FY 2021-22 |
$ 78,623.44 |
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FY 2022-23 |
$ 80,982.12 |
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FY 2023-24 |
$ 41,296.90 |
The lease is 100% federally funded by Women, Infants and Children (WIC).
STAFFING IMPACT:
N/A
REVIEWING AGENCIES:
Health Care Agency
ATTACHMENT(S):
Attachment A - Second Amendment to Lease
Attachment B - Acquisition Questionnaire
Attachment C - Lease Summary
Attachment D - Redlined Original Lease
Attachment E - Risk Assessment