TO: ADAM PIRRIE, CITY MANAGER
FROM: MELISSA VOLLARO, RECREATION AND HUMAN SERVICES DIRECTOR
DATE: SEPTEMBER 22, 2026
Reviewed by:
City Manager: AP
SUBJECT:
Title
AUTHORIZATION TO AMEND THE LEASE AGREEMENT WITH TRI-CITY MENTAL HEALTH AUTHORITY TO EXTEND THE TERM (FUNDING SOURCE: GENERAL FUND)
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SUMMARY
The current lease agreement extension between the City and Tri-City Mental Health Authority (TCMHA) for the Youth and Family Support Center (Y&FSC) building, located at 1717 North Indian Hill Boulevard, is set to expire on September 30, 2026. The tenant has requested to amend the Agreement to rent this space on a month-to-month basis, with an expiration date of September 30, 2027. TCMHA has made this request as they have outgrown this space and are currently in the process of relocating. The relocation will take place sometime between September 30, 2026, and September 30, 2027, depending on when the new space is ready to be occupied. An amendment to the lease agreement is an Attachment to the staff report for consideration.
RECOMMENDATION
Recommended Action
Staff recommends the City Council authorize the City Manager to execute an amendment to the lease agreement with Tri-City Mental Health Authority, extending the lease term for up to one additional year, through September 30, 2027.
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ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there are the following alternatives:
A. Reject the recommendation.
B. Request additional information from staff.
FINANCIAL REVIEW
The annual revenue received from Tri-City Mental Health Authority is approximately $9,451.
The staff cost to prepare this report and administer this contract is estimated at $876 and is included in the operating budget of the Recreation and Human Services Department.
ANALYSIS
Tri-City Mental Health Authority has been leasing the Y&FSC building from the City to operate its administrative functions, including the offices of the executive director and management staff, administrative support, and technology staff, to conduct public meetings, programs, and services as approved by the City. However, Tri-City Mental Health Authority has outgrown the space and is moving into a larger office space elsewhere in the City. That location is currently undergoing renovations and won’t be ready for occupancy until sometime in the next four to twelve months. As such, Tri-City Mental Health Authority is requesting a month-to-month lease extension for up to one year.
City staff has worked with TCMHA staff to negotiate the lease extension for the Y&FSC building. The TCMHA Government Board met on September 16, 2026, and approved the extension. The proposed lease extension is attached to this report for the City Council’s review and approval.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item relationship to the City's strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, General Plan, and the 2026-28 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Melissa Vollaro Michelle Castillo
Recreation and Human Service Director Management Analyst
Attachment:
Amendment to the TCMHA Lease Agreement