Item Coversheet

Agenda Item 7.

TAMC Logo     
TRANSPORTATION AGENCY FOR MONTEREY COUNTY
Memorandum
To: 

Board of Directors

From:

Michael Zeller, Director of Programming & Project Delivery

Meeting Date:

April 26, 2017

Subject:

20 West Market Street - Lease Extension


RECOMMENDED ACTION:
APPROVE Amendment #1 to the agreement with the County of Monterey to extend the rental term of Agency-owned 20 West Market Street, Salinas, California until June 30, 2017 with the option to extend on a month to month basis until December 31, 2017, pending legal counsel approval.
SUMMARY:
Transportation Agency staff is currently leasing the Agency-owned building at 20 West Market Street, Salinas to the County of Monterey for use as a temporary homeless warming shelter. The proposed lease agreement with the County, which would expires on April 30, 2017.  The County has requested to extend the term of the lease agreement.
FINANCIAL IMPACT:
The Agency purchased the property in 2013 for the Salinas Rail Extension project, and was renting the property to AllU.S. Credit Union for $1 per square foot per month ($4,932) until July 1, 2016.  The proposed lease agreement with the County includes a monthly payment of $1.00 for six months and stipulates that the Agency will not be liable for maintenance, utility, insurance, or security costs.
DISCUSSION:

Transportation Agency staff received a request from the City of Salinas and the County of Monterey to lease the Agency-owned building at 20 West Market Street, Salinas as a temporary homeless warming shelter. In September, 2016, the Transportation Agency Board approved the lease agreement with the County, which expires on April 30, 2017. The agreement required the County to make improvements to the building prior to occupancy at no cost to the Agency, and that the Agency be indemnified against all claims.

 

The County has since requested to extend the lease agreement in order to keep the homeless shelter open to allow time for an alternative location to be found and brought into working order.  The proposed Amendment #1 to the lease agreement would extend the term until June 30, 2017, with the option to extend the agreement on a month to month basis, at the Transportation Agency Executive Director's discretion, until December 31, 2017.

 

The Agency is in the process of acquiring other properties in the area for the proposed Salinas Rail Extension project.  The Agency is anticipating having possession of the properties by August or September 2017, at which point the buildings would be demolished to allow for the construction of the proposed project.  As such, the proposed lease extension is timed to allow the Agency to proceed with demolition once all the properties have been acquired.

 

For the past three years, the City of Salinas and the County have co-sponsored an inclement weather emergency shelter operation (aka "Warming Shelter") in downtown Salinas. The first year was co-sponsored by Sun Street Centers who provided a rent-free location, and the City and County paid for increased utility costs. The program served roughly 30 persons per night from December until April 30th 2014 at a cost of less than $42,000; $8 per night, per bed.  In 2014/2015 and 2015/16, the Shelter was located in the Salinas Women's Club at 215 Lincoln Avenue, and it operated from November 9 to April 30, from 6 PM to 8 AM. It was professionally managed by Community Homeless Solutions. The Salinas Women's Club started renovations in 2017, so an alternative location was sought at the Transportation Agency's 20 West Market property. 

This season the shelter operations are seven days a week, including holidays, from November 1, 2016, to April 30, 2017, from 7 PM to 6 AM unless otherwise extended as agreed upon by all parties. Community Homeless Solutions prepares the facility for homeless guests to eat and sleep. Guests are not permitted to stage for entry to the facility before 5:30 PM each night in the facility's parking lot, and must not block the sidewalk or other pedestrian pathways. Disruptive clients who adversely impact the peace and quiet for others are not be permitted entry in the building. Smoking, illegal drug use, or non-supervised use of prescription drugs is not allowed in the facility or on the property. Clear and concise guest use guidelines and cordial behavioral expectations are communicated to each guest prior to use.

 

 
ATTACHMENTS:
Description
20 W. Market Street - Lease Extension