Consent-General Government # 17.
Board of Supervisors
County Counsel
- Meeting Date:
- 08/27/2024
- Brief Title
- Ag building lease for ADHC
From:
Phil Pogledich, County Counsel
Staff Contact:
Phil Pogledich, County Counsel, x8172
Supervisorial District Impact:
Countywide
Subject
Authorize execution of a lease agreement with Dignity Community Care for 70 Cottonwood Street, Woodland, and a related amendment to a 2021 County/Dignity funding agreement for the relocation of the Adult Day Health Center. (No general fund impact) (Pogledich)
Recommended Action
- Authorize execution of a ten-year lease agreement with Dignity Community Care for 70 Cottonwood Street, Woodland, and a related amendment to a 2021 County/Dignity funding agreement for the relocation of the Adult Day Health Center; and
- In connection with Action A, authorize the Office of the County Counsel to include any minor changes to the agreements that result from Dignity's final review (ongoing as of the preparation of this staff report) provided such changes do not have adverse financial or liability implications for the County.
Strategic Plan Goal(s)
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Thriving Residents |
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Collaborative Community |
Reason for Recommended Action/Background
The County has long partnered with Dignity Health to provide adult day health care services within the County. Dignity operates the existing Yolo Adult Day Health Center (“ADHC”) facility in Woodland, which serves about 55 individuals daily and has a licensed capacity of 59. The County provides some funding support for facility operations and maintains the facility license. Services provided include behavioral health services; dietary assistance; speech, physical, and occupational therapy; social activities; nursing; and caregiver support. Most clients are elderly, but the target population includes individuals with medical, cognitive, psychiatric, or developmental conditions that can be supported by services at the facility.
The County and Dignity have long sought to expand the capacity of the existing facility or build a new facility due to excess demand for services. To support this effort, the Doyuti T’uhkama Board approved $1 million in funding to Dignity in 2019. The County later approved $2.75 million in funding (including a $1.25 million developer contribution) and executed a loan agreement with Dignity on the relocation project, including metrics for forgiving the loan in full over a 20-year period so long as Dignity continues to operate the facility. The agreement includes a target of 120 clients/day at the new facility, more than double the current daily use. Dignity will assume the facility license pursuant to the loan agreement.
The lease agreement that is the subject of this Board item will enable Dignity to relocate the ADHC to the building and grounds occupied by the Agriculture and Weights and Measures Department as well as the University Cooperative Extension. Both existing occupants are in the course of relocating to 120 West Main, Woodland, and the building should be available to Dignity on or about December 1, 2024. Key elements of the lease agreement are as follows:
The County and Dignity have long sought to expand the capacity of the existing facility or build a new facility due to excess demand for services. To support this effort, the Doyuti T’uhkama Board approved $1 million in funding to Dignity in 2019. The County later approved $2.75 million in funding (including a $1.25 million developer contribution) and executed a loan agreement with Dignity on the relocation project, including metrics for forgiving the loan in full over a 20-year period so long as Dignity continues to operate the facility. The agreement includes a target of 120 clients/day at the new facility, more than double the current daily use. Dignity will assume the facility license pursuant to the loan agreement.
The lease agreement that is the subject of this Board item will enable Dignity to relocate the ADHC to the building and grounds occupied by the Agriculture and Weights and Measures Department as well as the University Cooperative Extension. Both existing occupants are in the course of relocating to 120 West Main, Woodland, and the building should be available to Dignity on or about December 1, 2024. Key elements of the lease agreement are as follows:
- A 20-year term that commences when the relocated ADHC is fully operational. Dignity will have access to the main building and adjacent grounds by December 1, 2024, to commence demolition and improvement work.
- Rent at a fixed rate of $900/month.
- Typical commercial landlord/tenant arrangements regarding building maintenance and alterations, as well as utilities.
- Provisions requiring the property to be used for the ADHC rather than for other business activities of Dignity.
The second agreement includes minor revisions to a 2021 agreement between the County and Dignity covering funding for a new or expanded ADHC and related matters, such as transfer of the facility license (currently held by the County). The revisions address the change in facility location (from St. John's to the County site) and otherwise reflect the terms of the lease agreement, with adjustments to the commencement date for facility operations. A redlined version of the 2021 agreement is also attached hereto.
In coordination with the ADHC ad hoc subcommittee (Supervisors Provenza and Vixie Sandy), County Administrator's Office and the Department of General Services, this Office recommends that the Board approve the lease agreement and authorize its execution, along with approval of the minor changes to the 2021 agreement. The recommended action is a significant milestone in the decade-long process for relocating or building a new ADHC facility and a groundbreaking to commemorate the effort and the start of Dignity's tenant improvements will occur in early December 2024. As of the date of preparation of this staff report, both agreements are undergoing final review by Dignity. This Office therefore also requests authority to include any minor changes to the agreements that result from Dignity's final review provided such changes do not have adverse financial or liability implications for the County.
In coordination with the ADHC ad hoc subcommittee (Supervisors Provenza and Vixie Sandy), County Administrator's Office and the Department of General Services, this Office recommends that the Board approve the lease agreement and authorize its execution, along with approval of the minor changes to the 2021 agreement. The recommended action is a significant milestone in the decade-long process for relocating or building a new ADHC facility and a groundbreaking to commemorate the effort and the start of Dignity's tenant improvements will occur in early December 2024. As of the date of preparation of this staff report, both agreements are undergoing final review by Dignity. This Office therefore also requests authority to include any minor changes to the agreements that result from Dignity's final review provided such changes do not have adverse financial or liability implications for the County.
Collaborations (including Board advisory groups and external partner agencies)
ADHC ad hoc subcommittee, County Administrator's Office, Department of General Services, Yocha Dehe Wintun Nation (Doyuti T'uhkama).
Competitive Bid Process/Vendor Performance
N/A
Fiscal Impact
No Fiscal Impact
Fiscal Impact (Expenditure)
- Total cost of recommended action:
- $
- Amount budgeted for expenditure:
- $
- Additional expenditure authority needed:
- $
- On-going commitment (annual cost):
- $ 0
Source of Funds for this Expenditure
- General Fund
- $0
Further explanation as needed:
The lease agreement does not have any direct fiscal impact, but the County's fiscal contribution to the ADHC is important to describe. The monthly lease rate of $900 represents a below-market rental rate of an unknown amount. This is the same rate paid to the County by Dignity at its current location, and the County also provides $75,000 annually in funding support for ADHC operations. Also, as detailed above, in 2021 the County provided $2.75 million (including a $1.25 million developer contribution) toward the cost of renovating the leased premises. Dignity continues to maintain this funding and will apply it towards renovation costs.
Attachments
- Att. A. Lease Agreement
- Att. B. Redlined-First Amended and Restated Funding Agreement
- Att. C. First Amended and Restated Funding Agreement
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Phil Pogledich | Phil Pogledich | 08/22/2024 02:33 PM |
| Financial Services | mrobertson | 08/22/2024 03:24 PM |
| Berenice Espitia | Berenice Espitia | 08/22/2024 03:29 PM |
- Form Started By:
- Phil Pogledich
- Started On:
- 08/02/2024 09:02 AM
- Final Approval Date:
- 08/22/2024