County Manager's Office
April 3, 2002
BOARD MEETING DATE:
April 16, 2002
Honorable Board of Supervisors
Paul T. Scannell, Assistant County Manager
First Lease Amendment for Office Space at 264 Harbor Boulevard, Belmont, for the Human Services Agency. (Lease No. 1185)
Adopt a Resolution authorizing the President of the Board of Supervisors to execute a First Lease Amendment with Harbor Belmont Associates for office space at 264 Harbor Boulevard, Belmont, California.
Since 1992, the Human Services Agency has occupied office space at the Harbor Park in Belmont, including 264 Harbor Boulevard. The Housing Authority subleases approximately 12,898 square feet of the 21,346 square foot premises. The First Lease Amendment provides an additional 7,985 square feet, which will be used to relocate staff to:
1. enable HSA to provide a separate and secure environment for the Agency's Special Investigations Unit,
2. alleviate overcrowding in other areas of the Harbor Park complex,
3. accommodate those employees who were displaced by recent growth of the Alcohol And Other Drug Services program and the Business Systems Group,
4. accommodate the planned expansion of the Agency's computer Data Center, and
5. provide additional classroom space as a central resource
A First Lease Amendment has been negotiated with Harbor Belmont Associates and is summarized as follows:
1. The premises will increase by 7,985 square feet to a total area of 29,331 square feet.
2. The term will be extended through April 30, 2012.
3. The advantageous rental rate now applicable to the original premises will remain in effect for that area until March 31, 2003, the date on which the agreement would have otherwise expired.
4. A monthly rental rate of $1.80 per square foot will apply to the additional area of 7,985 square feet effective May 1, 2002 and, effective April 1, 2003, to the entire premises. The rental rate will be fixed from that date through March 31, 2007.
5. Effective April 1, 2003, the Base Year on which operating expense adjustments are charged to the County will be changed from 1992 to 2002.
6. The Base Rent will be adjusted one time during the term of the Lease, effective April 1, 2007, based on any increase in the Consumer Price Index.
7. The Landlord will make certain leasehold improvements to the premises as requested by the County. The cost of such improvements will be paid by the Landlord, and County will reimburse the Landlord for such costs (not to exceed $120,000) over the extended term of the Lease in monthly payments including principal and interest at 9 1/2% per annum.
The Director of the Human Services Agency concurs in this recommendation. County Counsel has reviewed and approved the First Lease Amendment as to form.