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HomeMy WebLinkAboutMINUTES - 09181984 - 1.78 TO: BOARD OF SUPERVISORS ' Contra FROM: Phil Batchelor, County Administrator COSta DATE: September 12, 1984 Cou' 'ly SUBJECT: Lease of Edgar Children's Shelter SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION: Authorize the County Administrator to indicate to Health Care Delivery Services, Inc. (HCDS) that the County is not in a position to lease the Edgar Children's Shelter to HCDS at this time. BACKGROUND: On May 1 , 1984, the Board of Supervisors referred to the County Administrator for recommendation an April 17, 1984 letter from G. G. De Angelis, Ph.D. , Executive Director, Health Care Delivery Services, Inc. (HCDS) requesting that the County lease HCDS the Edgar Children's Shelter. A number of meetings have been held with staff to review this request. The attached memorandum from County Counsel summarizes the numerous reasons why we do not believe we can lease the Edgar Children's Shelter to HCDS at this time. CONTINUED ON ATTACHMENT: X YES SIGNATURE: X RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE X APPROVE OTHER i SIGNATURE(S) &ZLA ACTION OF BOARD ON SeptAmhAr 18, 1984 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS X III UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD County Administrator OF SUPERVISORS ON THE DATE SHOWN. CC: County Counsel ATTESTED September 18 , 1984 County Welfare Director Probation Officer Phil Batchelor Clerk of the Board of Mental Health Director Supervisr,r. and Countv Administrator Public Works Director 00177 M382/-?-e}ICDS (via CAO) BY DEPUTY COUNTY COUNSEL'S OFFICE I" CONTRA COSTA COUNTY MARTINEZ, CALIFORNIA Contra Costa CoCrr'. Date: Auyu:• t .10 , 19i� A RECEIVED v AUG 2 1 1984 To: Ji ' t;:,:, 1 C. t-!or}::, ;) i C c:for ' Offict, n� i�ttn : ��, tricia I. !greyer , I.e ase Man,�ycmerlt Count/ Administrator From:- Victor J . I'lestman, County Counsel By : Silvano B . Marchcsi , Deputy County Counsel Re: T,(".:Ses undo) o'.": . `, 'G2?7 li�l!::t e 1 1:h c n n t r a c t ayenr1F's I r:. . '!,' �`r'. plc'( Urt:a^c(- w i ,o•. t . '. 2622' oIll 1 .:Urpo: ! i:io [ias CCin .- :CIf_`(1 wI ,tiI the County to �lt_'1" LUI'iTt o::;' pf the prograin•> J,_--scribed In that section . r�"ir D 1 :;CUSS I ON : In your merlorarldum of 7 August 1984 you asked whether it .10u1.ci be proper or the County to 1ecis e the F:dgar Children ' s t)L111U1'1(4 to iiealtl. Caro C)C11VCr;J :' Cr':1CiS , 1nc . , under the Of '301.'t .C . ; 26227 . From the informatior, in your memoranc.um and a telephone conversation with D. Dell and Carol Char of the County Administrator ' s office we here summarize the background of your request. Health Care Delivery Services Inc. , (hereinafter "Health Care" ) is a non-profit corporation currently located in Solano County. Health Care houses adole�:cents (with behavioral problems) referred t:c, It b;,• various counties in the state . it is 16sing •its space in Fairfield and needs a replacement facility . The County has no contract with 11balth Care , but may occasionally place a ward there . Section 26227 of the Government Code (copy attached) authorizes the County to contract with private agencies to operate programs to "meet the social needs of the population of the county" . In a 1982 amendment, the Legislature added the last sentence of the section, which provides that the Board of Supervisors may make available to a non-profit corporation surplus county property, without complying with the requirements in that code relating to the leasing of County property. The Legislature limited such arrangements, however, to "the furtherance of any such program, " referring to programs contracted to be provided by private agencies. The wording of the second paragraph of section 26227 leads us to conclude that in order to lease County property to a non-profit corporation without complying with the normal leasing requirements of Covt.C. 5525520 et seq. , the County must have a contract with 001 $ J . Michael Walford , PuF,lic Vjoi-k�_; !August 20 , 1984 ,'\ttn: Patricia L. Dreyer such an . organization to provide services for the Count; requiring use of ti-.c leasee: space . -Its the present situation , we understand that there is to be no contractual relationship between the County and Health Care , aside from a possible occasional placement of wards with Health Care . While there may be administrative, supervisory, and social ;gene it.s '--o 1:avinc; our wards placer'. t, itl: Health Care in a County buil(2ing , it would appear that these could still be obtaine. if Health Care were located in a non-County building but within :iot that such tangr : t.�al Of, a l :it.' i ? '1 (' ContF::t o i?ealth Carc- ' ., u ;c Of '-ount" buil,:in,- necessc.. for ad1' be t_ _'cecl `.i)ere . You have also indicated that Health Care would require substantial modifications to the Children ' s Shelter . (We understand that the modifications would cost about $300 , 000 . ) It is proposed that the County lease the facility to an unnamed building contractor , who would construct the modifications . The contractor , in turn, would sublease ;:.he facility to Health Care, which would pay rent sufficient to amortize the remodeling costs and also provide rental income . It is also proposed that the contractor-lessee deduct from his rental payments to the County the amount necessary to amortiz the remodeling costs , so that, in effect, the County would be paying for such remodeling expenses . It is not uncommon for leases to provide that remodeling required by the lessee be paid for by the lessor, on the ground that the lessor ' s property is thus enhanced when he regains possessior of it. Here , however, we understand that the modifications required by Health Care are not likely to be useable by tle County for any . program the County might subsequently undertake in the Children ' s shelter . In any event, the question whether the remodeling should be paid for by the contractor, by Health Care, or by the County is a matter of policy unless it constitutes a "gift of public funds" . You also mentoned that another corporation is interested in leasing the Children 's shelter. to operate a residential "holding" facility for aliens awaiting deportation. You pointed out that this corporation is a "for-profit" corporation which contracts with governmental agencies. Section 26227 of the Government Code expressly permits the avoidance of the normal leasing procedures only when the County leases its property to "a public agency, non-profit corporation, or non-profit association. " Because the corporation mentioned is a "for-profit" corporation, we conclude that the usual leasing require- ments would be applicable. SBM:df cc: County Administrator Attn: D. Bell -2- ©Qk�9