To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Sublease of Office and Warehouse Space at 4585 Pacheco Blvd., Martinez
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE a sublease with ERRG Inc. for approximately 12,160 square feet of office space (Suite 100) and approximately 3,575 square feet of warehouse storage space, totaling 15,735 square feet, located at 4585 Pacheco Blvd., Martinez, for use by the Health Services Department - Contra Costa Regional Medical Center Administration, for a 10-year term at an initial annual rent of $330,012.00, with annual rent increases thereafter, subject to approval by the County Administrator and approval as to form by County Counsel.
AUTHORIZE the Public Works Director, or designee, to execute the sublease.
FISCAL IMPACT:
The sublease will obligate the County to pay rent of $3,783,217 over the ten-year term. (100% Hospital Enterprise Fund)
BACKGROUND:
Contra Costa Regional Medical Center (CCRMC) is currently experiencing significant space constraints on its main campus located at 2500 Alhambra Avenue in Martinez. Administrative functions have expanded over time, resulting in saturation of available office space and limiting operational flexibility. The lack of available workspace has created inefficiencies, reduced flexibility for departmental growth, and constrained the ability to repurpose on-campus space for core clinical functions.
To address these constraints, Health Services has identified a near move-in-ready office suite located at 4585 Pacheco Boulevard in Martinez that was previously occupied by the Health Services Hazardous Materials program. The site is in close proximity to the CCRMC campus and maintains convenient freeway access, allowing administrative staff to remain operationally connected to hospital leadership and clinical departments while relieving congestion on the main campus.
The relocation would accommodate approximately 40 administrative staff, along with associated storage needs. By relocating non-clinical administrative functions off-site, CCRMC can decompress the main campus and create opportunities to optimize existing on-campus space for higher-priority clinical or patient care uses.
CONSEQUENCE OF NEGATIVE ACTION:
Not authorizing the sublease would require finding another suitable location to locate the CCRMC Administrative staff.