TO: Board of Supervisors
FROM: Steven Lederer - Director of Public Works
REPORT BY: Andrea Salter - Staff Services Analyst
SUBJECT: Lease Agreement No. 240308B with the State of California for Transitional Housing with Fresh Start at “The Avenues”
RECOMMENDATION
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Approve and authorize Lease Agreement No. 240308B with the State of California Department of General Services for the term October 1, 2024 through September 30, 2029 for three houses and two garages, located at Napa State Hospital, for an annual rental rate of $14,880, plus utilities, with a 3% annual cost of living adjustment, for the operation of Fresh Start, a program offering transitional housing assistance to individuals with mental health disorders. (Fiscal Impact $14,880 Expense; Health and Human Services Agency Fund; Budgeted; Mandatory)
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BACKGROUND
Since 1994, Napa County has leased three (3) homes, two (2) garages, and related employee parking, located at Napa State Hospital, commonly known as “The Avenues,” to house the Health and Human Services Agency’s (HHSA) Supportive Living Programs for adults with mental health disorders. The current Lease Agreement No. 200161B expires on September 30, 2024. The State of California Department of General Services requires a new lease for continued occupancy of The Avenues.
The State has determined the monthly “Fair Market Rent” to be $0.85 per square foot for a total of $5,865. The monthly rent has been adjusted based on recognition of an “In-Lieu Credit” therefore reducing the monthly rent to $1,240. The annual rental rate under Lease Agreement No. 240308B will be $14,880 in FY 25/26.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Fund 2000, Subdivision 2000200 |
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Is it Mandatory or Discretionary? |
Mandatory |
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Discretionary Justification: |
Approval of this agreement will allow for continued occupancy of The Avenues for operation of Fresh Start. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
The term of the lease agreement is from FY 25/26 to FY 28/29 and provides for an annual 3% increase, not applied to utility costs. Funding will be budgeted accordingly each fiscal year for the term of the lease agreement. |
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Consequences if not approved: |
If this lease agreement is not approved, HHSA will need to find an alternative location to operate Fresh Start or close the program, which would displace the clients living and receiving mental health services at the three houses. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.