REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  January  24, 2017
CATEGORY:  Consent - Health and Human Services-7.

SUBJECT:

Leases with Parlay Investments Inc. for office space at 1420 Yuba Street and 1580 Market Street

Supervisorial District No. :  1

DEPARTMENT CONTACT:  Tracy Tedder, HHSA Branch Director, (530)229-8425

STAFF REPORT APPROVED BY:  Tracy Tedder

RECOMMENDATION

Approve and authorize the Chairman to sign the following leases with Parlay Investments, Inc.:  (1) In the amount of $1,572.50 per month (approximately $0.85 per square foot) for 1,850 square feet of office space at 1420 Yuba Street, Redding, for the period February 1, 2017 through December 31, 2021 with annual Consumer Price Index (CPI) increases or decreases of no more than two percent per year with two two-year and one one-year optional renewals; and (2) in the amount of $879.75 per month (approximately $0.85 per square foot) for 1,035 square feet of office space at 1580 Market Street, Redding, for the period February 1, 2017 through December 31, 2021 with annual CPI increases or decreases of no more than two percent per year with two two-year and one one-year optional renewals.

SUMMARY

The Shasta County Health and Human Services Agency Children’s Services Branch (Children’s Services) has provided services to the public at four locations within the downtown Redding area since 2001.  This lease will provide two additional locations to provide mental health services at an easily accessible locations.

DISCUSSION

Currently, mental health services are provided to children and youth at 2640 Breslauer Way. Families have expressed interest in receiving services for their children in a family-friendly environment.  The new locations will allow for increased coordination of care and simplified travel for the families served by Children’s Services.  We will also see the benefits of increased coverage, coordination of care and improved communication for Children's Services to have all services and staff centrally located. 

ALTERNATIVES

The Board may choose not to approve the lease and/or could request modifications to the lease terms.

OTHER AGENCY INVOLVEMENT

County Counsel has approved the lease as to form.  Risk Management has approved the lease.  The recommendation has been reviewed by the County Administrative Office.

FINANCING

The rent is comparable with what is available in the current market for similar office space.  The annual adjustments to the rent will be based on CPI changes in order to maintain alignment with changing market values. The rent is funded through Social Services Administration program funding and requires a County share of cost, which is largely met through Realignment.  This expenditure has been included in the current FY 2016-17 Adjusted Budget and will be included in future fiscal year budget submissions.  There is no additional General Fund impact from the recommended action.