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Health and Human Services Agency (HHSA), in conjunction with the Chief Administrative Office (CAO), Facilities Division, recommending the Board:
1) Make findings in accordance with Board of Supervisors Policy C-2, that Lease Agreement 619 (325-L1511), for 3047 Briw Road, is eligible to exercise the first of two options to extend the lease term for an additional five-year period;
2) Approve and authorize the Purchasing Agent to execute Option 1 Notification to Extend Letter for Lease Agreement 325-L1511 with WLW Wilkinson Partners LLC, for the additional term of five years from February 1, 2025, through January 31, 2030, thereby increasing the total compensation amount by $573,354.80, for a new maximum obligation of $1,615,486.48, with no change to the agreement’s terms or conditions; and
3) Authorize the Purchasing Agent to execute amendments relating to Lease Agreement 325-L1511, contingent upon approval by County Counsel and Risk Management, which do not increase the maximum dollar amount or term of the Agreement.
FUNDING: State and Federal funds with County match met primarily from Realignment funds.
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DISCUSSION / BACKGROUND:
HHSA has leased the office space located at 3047 Briw Road in Placerville since February 1, 2008, through Lease Agreement 279-L0811 and has leased the parking lot surrounding the office space located at this same address since October 1, 2008, through Lease Agreement 252-L0911. Lease Agreement 325-L1511 combined the office space and the parking lot space into one lease, commencing on February 1, 2015, and expiring January 31, 2025, and includes two options to extend the lease by five years each (Legistar file 14-1664).
On September 11, 2018, the Board approved Amendment I to Lease Agreement 325-L1511 to allow for the provision of tenant improvements and increase the maximum contractual obligation by $20,000, for a new not-to-exceed amount of $1,042,131.68 (Legistar file 18-1217). Amendment II to Lease Agreement 325-L1551 was executed by the Purchasing Agent on January 19, 2021, and updated all references to Wesley L. & Gertrude B. Wilkinson Revocable Trust, Barry J. Wilkinson Revocable Family Trust, Jane C. Wilkinson Trust, and Cindy W. Seip Separate Property Trust to WLW Wilkinson Partnership LLC.
The consolidated lease includes two consecutive five-year Options to renew the lease for all or part of the premises upon six months prior notice by County and permits a three percent increase to the current monthly rental rate once every two years.
HHSA requires office space to provide Federal- and State-mandated client services, including but not limited to California Work Opportunity and Responsibility to Kids (CalWORKs), CalFresh, and Housing and Homelessness Services Programs.
HHSA, in conjunction with CAO, Facilities Division, recommend the Board approve Option 1 to extend Lease Agreement 325-L1511 to ensure that HHSA has sufficient office space to be able to continue to provide mandated services through 2030. The leased location continues to be ideal for HHSA clients as it centrally located and provides easy access to Highway 50 to clients and staff alike.
ALTERNATIVES:
Should the Board decline to approve this recommendation, the County will not have an agreement for the lease of office space at 3047 Briw Road, Placerville and would be required to identify alternate office space in Placerville for HHSA operations.
PRIOR BOARD ACTION:
1) 01/27/15, 14-1664, HHSA Wilkinson Lease
2) 09/11/18, 18-1217, HHSA AMD I, 619 (325-L1511) Wilkinson Revocable Trust (3047 Briw Road)
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
Approved by County Counsel, Human Resources, Information Technologies, and Risk Management.
CAO RECOMMENDATION:
Approve as recommended.
FINANCIAL IMPACT:
There is no Net County Cost associated with this agenda item. Sufficient appropriations were included in the Fiscal Year 2024-25 Budget and will be included in future budgets for the term of the Agreement.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT:
N/A
CONTACT
Olivia Byron-Cooper, MPH, Director, Health and Human Services Agency
Kevin Gilliland, Facilities Division Manager, Chief Administrative Office