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Committee recommends five-year flat lease for DPH at 3801 Third Street after program testimony
Summary
The Budget & Finance Committee amended and recommended approval of a five-year, flat-rate lease for Department of Public Health space at 3801 Third Street, removing CPI escalators and a carpeting charge after DPH described programmatic need to remain in the Bayview.
Amy Brown, the city's Director of Property, presented a proposed lease renewal for space at 3801 Third Street that the Department of Public Health (DPH) has used for nearly a decade. The site, described as about 14,825 square feet, houses DPH—s foster care mental health program, child-crisis program and a crisis-response team.
Brown told the committee the proposed monthly base rent was $36,469.50 (about $437,634 annually) — roughly a 26.2% increase over the 1998 fully serviced rate — but said the increase reflects a long period with no prior inflation adjustments and that the negotiated rate is competitive in the Bayview market. She said relocation would be difficult because of the space size, program needs, built-in security and the network of service providers operating at the site.
A budget analyst raised concerns about retroactive rent for seven months (about $52,009.27) and flagged an $81,000 carpeting charge in the original draft. The budget analyst recommended removing the carpeting reference and deleting CPI escalators from the lease; the budget analyst initially proposed shortening the term to three years but accepted a modified recommendation after discussions with the department and property staff.
Ms. Sai Ling of DPH described program operations at the location and said the three programs together serve more than 1,000 children and families in southeast neighborhoods, stressing the timeliness of crisis response and the value of co-location with other services.
After discussion, the committee accepted an amended resolution that removes the CPI escalation, deletes the carpeting charge, and sets a five-year fixed rent term with no extension options; the item was forwarded to the full Board with a favorable recommendation.
The committee and DPH agreed to continue to pursue cost-saving discussions where possible, but the committee recorded the lease amendment as a policy-level decision to be considered by the full Board.
