REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 27, 2023
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
GEORGINA YOSHIOKA, Director, Department of Behavioral Health
SUBJECT
Title
Amendment to Revenue Lease Agreement with Telecare Corporation for Office and Clinic Space in San Bernardino
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 3 to Revenue Lease Agreement No. 18-125 with Telecare Corporation for office and clinic space in San Bernardino is an exempt project under the California Environmental Quality Act Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 3 to Revenue License Agreement No. 18-125 with Telecare Corporation, to extend the term of the lease for the period of July 1, 2023 through June 30, 2027, for the use of approximately 10,700 total square feet of office and clinic space within the San Bernardino County-owned facility located at 1481 North Windsor Drive in San Bernardino, for a total revenue in the amount of $1,027,200.
3. Direct the Clerk of the Board of Supervisors to file and post the Notice of Exemption for the project as required under the California Environmental Quality Act.
(Presenter: Terry W. Thompson, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The total revenue anticipated to be received by the Department of Behavioral Health (DBH) for this four-year amendment is $1,027,200. Other costs associated with this amendment include custodial, utility and maintenance expenses estimated at $128,458 annually, which will be paid from the DBH budget (9204292200). Sufficient appropriation is included in the DBH 2023-24 budget and will be included in future recommended budgets. Annual revenue is as follows:
|
Year |
Annual Lease Revenue |
Estimate of Annual Costs Associated with this Lease |
|
July 1, 2023 - June 30, 2024 |
$256,800 |
$128,458 |
|
July 1, 2024 - June 30, 2025 |
$256,800 |
$128,458 |
|
July 1, 2025 - June 30, 2026 |
$256,800 |
$128,458 |
|
July 1, 2026 - June 30, 2027 |
$256,800 |
$128,458 |
|
Total |
$1,027,200 |
$513,832 |
BACKGROUND INFORMATION
Revenue Lease Agreement No. 18-125 (Lease) with Telecare Corporation (Telecare) will be extended for the period of July 1, 2023 through June 30, 2027. The amendment will adjust the rental rate schedule for the use of approximately 10,700 total square feet of office and clinic space for a Crisis Stabilization Unit (CSU) in the San Bernardino County (County)-owned facility located at 1481 North Windsor Drive in San Bernardino (Premises).
On September 26, 2017 (Item No. 11), the Board of Supervisors (Board) approved Contract Nos. 17-765 and 17-766 with Telecare for the provision of CSU Program Services in the West Valley and East Valley regions of the county. The facility in the East Valley region provides services 24 hours a day, seven days a week, to individuals experiencing an acute mental health crisis who will benefit from short-term crisis stabilization services as an alternative to unnecessary psychiatric hospitalization or incarceration. Each facility has 20 spaces, 16 for adults (18 years old and older), and four for adolescents (17 and under). Services include, but are not limited to, assessments, collateral services, crisis intervention, medication support services when necessary, and individual and group therapy for individuals diagnosed with mental health and co-occurring disorders. Telecare provides CSU program services to approximately 2,868 individuals annually.
On March 13, 2018 (Item No. 34), the Board approved a five-year revenue Lease with Telecare for 10,700 square feet of office and clinic space at the Premises for use as a CSU. The original term of the lease commenced on the completion of the County’s installation of certain County-owned furnishings, which was projected to occur on May 1, 2018. In the five years since the lease was originally approved, the Board has approved two amendments, to confirm the lease commencement date as July 2, 2018, and the expiration date as July 1, 2023, adjust the rental rate schedule, and remove Telecare’s obligation to pay a share of security services.
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Amendment No. |
Approval Date |
Item No. |
|
1 |
September 25, 2018 |
37 |
|
2 |
May 10, 2022 |
42 |
DBH requested that the Real Estate Services Department (RESD) prepare an amendment to extend the term of the Lease for the period of July 1, 2023 through June 30, 2027. The amendment also adjusts the rental rate schedule. Either party may terminate the Lease by giving the other party 30 days’ prior written notice. All other provisions and terms of the Lease remain unchanged.
The project to approve Amendment No. 3 to the Lease with Telecare was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under Section 15301 - Existing Facilities (Class 1) because there is no possibility that the leasing of the subject property will have a significant effect on the environment.
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Summary of Lease Terms |
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Lessee: |
Telecare Corporation (Leslie Davis, Senior Vice-President and Chief Financial Officer) |
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Location: |
1481 North Windsor Drive, San Bernardino |
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Size: |
Approximately 10,700 square feet of office and clinic space |
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Term: |
Four years, July 1, 2023 through June 30, 2027 |
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Options: |
None |
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Rent: |
Cost per square foot per month: $2.00* |
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Monthly: $21,400 |
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Annual: $256,800 |
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*High-range for comparable facilities in the San Bernardino area per the competitive set analysis on file with RESD |
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Annual Increases: |
None |
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Improvement Costs: |
None |
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Custodial: |
Provided by County |
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Maintenance: |
Provided by County |
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Utilities: |
Provided by County |
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Insurance: |
The Certificate of Liability Insurance, as required by the Lease, is on file with RESD |
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Holdover: |
Month-to-month basis upon the same provisions of the Lease |
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Right to Terminate: |
Either party has the right to terminate with 30-days’ prior written notice |
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Parking: |
Sufficient for Lessee needs |
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, Deputy County Counsel, and Dawn Martin, Deputy County Counsel, 387-5455) on May 9, 2023; Behavioral Health (Lydia Bell, Administrative Manager, 386-9732) on May 23, 2023; Purchasing (Bruce Cole, Supervising Buyer, 387-2148) on May 10, 2023; Finance (Chris Lange, Administrative Analyst, 386-8393, and Garrett Baker, Administrative Analyst, 387-3077) on June 2, 2023; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on June 7, 2023.
(YG: 665-0268)