03-20-2012 CC RPT 27 - Laserfiche WebLink

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^ ��^"�:t�lt"��: (e� ,f�t�� , City Council Memorandum ity TO: HONORABLE MAYOR AND CITY COUNCIL FROM: DEVELOPMENT DEPARTMENT DATE: March 20, 2012 ITEM NO: 27 WARD: 1 SUBJECT: SECOND AMENDMENT TO LEASE WITH THE COUNTY OF RIVERSIDE DEPARTMENT OF MENTAL HEALTH TO CONTINUE OPERATING THE SAFE HAVEN SUPPORTIVE HOUSING PROGRAM AT 2800 HULEN PLACE ISSUE: The issue before the City Council is whether to authorize the Second Amendment to Lease with the County of Riverside Department of Mental Health (Mental Health) to continue operating the Safe Haven Supportive Housing program at the City -owned building located at 2800 Hulen Place. RECOMMENDATIONS: That the City Council: 1. Approve the attached Second Amendment to Lease (Lease) with the County of Riverside Department of Mental Health (Exhibit A). 2. Authorize the City Manager or designee to execute the attached Lease, including making minor, non - substantive changes. BACKGROUND: On June 14, 2005, the City Council approved the purchase of 2800 Hulen Place to expand supportive services for the homeless in partnership with the County of Riverside. On September 1, 2006, the City entered into a two (2) year lease agreement with Mental Health to utilize approximately two - thirds of the space in the building to establish a Safe Haven Supportive Housing program. Mental Health paid for significant tenant improvements to the building to accommodate the Safe Haven program. Payments received by the City from the Lease with Mental Health are used to cover maintenance and utilities for the facility. The original lease agreement with Mental Health was for a twenty -four (24) month period beginning September 1, 2006 with an option to extend. The monthly rent was $8,812.35. The First Amendment to Lease was executed to extend the term of the lease agreement for an additional three (3) years from September 1, 2008 to August 31, 2011. Staff is proposing a Second 27 -1