Regular-Health & Human Services # 35.
Board of Supervisors
- Meeting Date:
- 06/07/2022
- Brief Title
- City of Davis Master Lease at Pacifico Properties
From:
Nolan Sullivan, Interim Director, Health and Human Services Agency
Staff Contact:
Tanya Provencher, Service Center Deputy Branch Director, Health and Human Services Agency, x2707
Supervisorial District Impact:
Subject
Approve lease agreement with the City of Davis in the initial monthly amount of $21,579 for two buildings at the Pacifico property (1752 Drew Circle, Davis), for a term of five years for the CalWORKs Housing Support Program, and receive and file a draft property management proposal for Program implementation. (No general fund impact) (Sullivan)
Recommended Action
- Approve lease agreement (Att. A) with the City of Davis in the initial monthly amount of $21,579 for two buildings at the Pacifico property (1752 Drew Circle, Davis), for a term of five years for the CalWORKs Housing Support Program; and
- Receive and file a draft property management proposal (Att. B) for Program implementation.
Strategic Plan Goal(s)
 |
Thriving Residents |
 |
Safe Communities |
Reason for Recommended Action/Background
The recommended actions will facilitate reuse of two City-owned buildings at the “Pacifico” property, located at 1752 Drew Circle in Davis, for the CalWorks Housing Support Program (“Program”). The Program will provide housing and support services to families at risk of homelessness. The Program is described in Exhibit C to the Lease and specific operational details are defined separately in a draft “property management proposal” (provided as Attachment B to this staff report). Relevant Program highlights set forth in these documents include:
- Using the two buildings to provide housing for up to 38 families, focusing on smaller families with household sizes of three or less and generally including those with young children.
- Floors in each building will be reserved by family size, gender, and age range, with common bathrooms on each floor designated by gender. Bathrooms will be configured with amenities suitable for specific populations housed in each building, including bathtubs for families with babies and toddlers.
- Building A will have case management offices, laundry facilities, and a group room for educational and therapy activities. Building B will have security and property management space, an employment center/computer lab, laundry facilities, as well as overnight rooms for child welfare purposes.
- Onsite staffing will include County case management staff, property staff, and contract security personnel, as well as after-hours “floor leads” for 24/7 staffing coverage. Generally, case management staff will be present during regular business hours, property management staff will be available and frequently present during regular business hours and at designated times on weekends, security will be provided for eight hours each evening, and floor leads (CalWorks work participants or local CBO staff) will be present from 5:00 p.m. to 8:00 a.m. daily.
The Lease includes many standard terms and conditions that facilitate the Program, along with some terms unique to the leased property and its intended reuse. The principal terms of the lease include:
- Detailed repair, improvement, and maintenance terms for each party, with the City responsible for repairs and improvements necessary to render the leased premises suitable for the Program and more significant aspects of regular maintenance and upkeep (e.g., HVAC repairs, pest control, roof repairs). The County is responsible for subsequent Program-specific improvements and related maintenance (Sections 1 and 5; Exh. D).
- An initial five-year term, with the possibility of up extensions of up to three additional years (Sections 2.1 and 2.3) and a mutual right to terminate on 90 days advance notice.
- Initial rent of $21,579/month, with adjustments possible in the fourth and subsequent years of the Lease term. The City will use Lease revenue to maintain the property, and any residual revenue will be prioritized for support serves for non-CalWorks residents of other Pacifico buildings (not covered by the Lease) or reinvested in the property (Section 3).
- A City commitment to arrange an onsite property manager and up to 88 hours of security service weekly during evening and nighttime hours, with security costs to be borne equally by the City and County. Security services will be reviewed from time and may be increased or reduced (Section 5).
- A mutual commitment to complete an outreach plan prior to occupancy that will ensure periodic outreach to the surrounding community and, in separate meetings, residents of the leased buildings. The City and County will also provide points of contact for the surrounding community and property residents that may be used any time in the event questions or concerns arise (Section 6).
County staff recommend approval of the Lease subject to further minor, conforming and clarifying changes as may be approved by the County Administrator, in consultation with the County Counsel prior to execution thereof. The Lease is marked “Draft” because of the potential for such minor changes and the need to fill in a couple of blanks for dates and similar information. The City Council is expected to consider the Lease at its June 14 meeting.
Collaborations (including Board advisory groups and external partner agencies)
County Counsel has approved this Agreement as to form.
Competitive Bid Process/Vendor Performance
Per the Procurement Policy, property leases are exempt from the Competitive Solicitation Process
Fiscal Impact
Fiscal impact (see budgetary detail below)
Fiscal Impact (Expenditure)
- Total cost of recommended action:
- $ 720,000
- Amount budgeted for expenditure:
- $ 720,000
- Additional expenditure authority needed:
- $
- On-going commitment (annual cost):
- $ 300,000
Source of Funds for this Expenditure
- CalWORKs - HsP
- $720,000
Further explanation as needed:
No general funds are required by this action. The lease, County property improvements, staffing, and other aspects of Program implementation at the leased property will be funded by CalWORKs Housing Support (HSP). The total amount of this action is $2,340,000 for the period of April 1, 2022 through June 30, 2026. The amount of $720,000 is included in the HHSA adopted budget for fiscal year 2021-22. The related funding will be included in the requested budget process for future fiscal years.
The following is the breakdown of funding for this agreement.
The following is the breakdown of funding for this agreement.
| FY 2021-22 April 1, 2022 through June 30, 2022 |
FY 2022-23 July 1, 2022 through June 30, 2023 |
FY 2023-24 July 1, 2023 through June 30, 2024 |
FY 2024-25 July 1, 2024 through June 30, 2025 |
FY 2025-26 July 1, 2025 through June 30, 2026 |
Total |
| $720,000 | $720,000 | $300,000 | $300,000 | $300,000 | $2,340,000 |
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Financial Services | Tom Haynes | 05/27/2022 02:02 PM |
| County Counsel | Phil Pogledich | 06/02/2022 09:08 AM |
| Phil Pogledich | Phil Pogledich | 06/02/2022 10:55 AM |
- Form Started By:
- Kimberly Mayfield
- Started On:
- 02/08/2022 08:55 AM
- Final Approval Date:
- 06/02/2022