COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager's Office

DATE:

May 1, 2002

BOARD MEETING DATE:

May 14, 2002

TO:

Honorable Board of Supervisors

FROM:

Paul T. Scannell, Assistant County Manager

SUBJECT:

Sixth Lease Amendment for Office Space at 400 - 450 Harbor Boulevard, Belmont, for the Human Services Agency. (Lease No. 1161)

Recommendation

Adopt a Resolution authorizing the President of the Board of Supervisors to execute a Sixth Lease Amendment with Harbor Belmont Associates for office space at 400 - 450 Harbor Boulevard, Belmont, California.

Background

The Human Services Agency leases office space in three separate buildings of the Harbor Park in Belmont under the terms of two separate leases. The Board recently approved amendment of the lease of 264 Harbor Boulevard (Building A); expanding the premises and extending the term of that lease. Under the terms of a lease that originated in 1988, HSA occupies portions of two buildings at 400 - 450 Harbor Boulevard (Buildings B and C). This proposed Sixth Lease Amendment to the 400 - 450 Harbor Boulevard lease provides an additional 1,238 square feet, which will be used to relocate staff to alleviate overcrowding in adjacent areas of the premises. The County currently leases all of the space surrounding this proposed additional area.

HSA now occupies all of the two buildings at 400 - 450 Harbor Boulevard except for the landlord's small maintenance office that serves the entire complex. Portions of the buildings have been gradually incorporated into the County premises as other tenants have vacated adjacent space. In order to effectively incorporate these small suites into an integrated and more efficient work environment for the Department, HSA is presently developing a master plan for the construction/renovation of the entire premises. This plan is in the preliminary stages, and no reliable construction cost estimates are currently available. HSA intends to complete the integrated design in Fiscal Year 2002/2003, and will then submit to the Board for its consideration an additional amendment to this Lease that will identify both the scope of work proposed and the corresponding construction cost.

Discussion

A Sixth Lease Amendment has been negotiated with Harbor Belmont Associates and is summarized as follows:

1. The premises will increase by 1,238 square feet to a total area of 58,169 square feet, with a corresponding $3305 increase in monthly rent from $152,267 to $155,572.

2. 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 balance of the 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 Sixth Lease Amendment as to form.

Vision Alignment
The First Amendment keeps the commitment of ensuring basic health and safety for all and goal number 8: "Help vulnerable people - the aged, disabled, mentally ill, at-risk youth and others - achieve a better quality of life". The amendment contributes to this commitment and goal number 8 by providing the expansion space needed to support the delivery of programs and services that produce positive outcomes in our community.

Fiscal Impact
This amendment adds $65,255 to the lease for FY 2002-03. The Net County Cost of this lease amendment is estimated at $19,600. This cost has been included in the Human Services Agency Recommended Budget for FY 2002-03.