AGENDA DATE: 7/5/2017
TITLE:
Title
Martha Jefferson Hospital Lease Agreement Amendment
BODY
SUBJECT/PROPOSAL/REQUEST: Resolution to approve a Lease Agreement Amendment with Martha Jefferson Hospital to extend the term of the 2012 agreement to house an interim emergency medical services station.
ITEM TYPE: Consent Action Item
STAFF CONTACT(S): Walker, Letteri, Kamptner, Herrick, Eggleston
PRESENTER (S): N/A
LEGAL REVIEW: Yes
REVIEWED BY: Douglas C. Walker
BACKGROUND: During the July 11, 2012 Board meeting, the Board approved a three-year renewable lease with Martha Jefferson Hospital (MJH) for 151 sq. ft. of office space at its hospital facility at 500 Martha Jefferson Drive, Parcel 78-20M0, along with four standard lockers in an employee locker room and one reserved parking stall with electric capabilities. The space was to temporarily locate an ambulance service until a County facility could be funded and constructed in the Pantops development area.
Significant provisions of the lease included:
1. A term of three years beginning September 1, 2012, with the option to renew upon the same terms for two additional one-year terms, with the final term ending on September 1, 2017.
2. Fair market rent as required by federal law, determined to be $477.50 per month.
3. MJH to provide all utility services, including heat, water, electric (including electrical outlet installation), local telephone, cable television, internet services, and janitorial services, the cost of which is reflected and included in the rent.
4. Terminable by either party upon 120 days advance written notice to the other party following the end of the initial three-year term. The lease was extended for two additional one-year terms, and expires on September 1, 2017.
STRATEGIC PLAN: Quality Government Operations: Ensure County government’s capacity to provide high quality service that achieves community priorities
DISCUSSION: During the February 1, 2017 Board meeting, the Board approved funding for the 9,880 SF Pantops Public Safety Station. Facilities & Environmental Services (FES) coordinated the design, bid, and contract processes for that station.
Construction of the station began in March of 2017 and is expected to be completed in March/April of 2018. Because the existing MJH lease will expire on September 1, 2017 and the ambulance and staff require housing until the station is completed, County staff reengaged with MJH to amend the existing lease.
The proposed First Amendment to Lease Agreement (Attachment A) includes an additional renewal term for a period of eight (8) months with an expiration date of May 1, 2018.
BUDGET IMPACT: The direct cost of the lease to the County is approximately $477.50 monthly or $3,820 over an eight-month period. Funding is included in Fire Rescue’s FY18 budget.
RECOMMENDATION:
Recommendation
Staff recommends that the Board adopt the attached Resolution (Attachment B) to approve the proposed First Amendment to Lease Agreement.
ATTACHMENTS:
A - Proposed First Amendment to Lease Agreement
B - Resolution