COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Human Services Agency

DATE:

March 12, 2007

BOARD MEETING DATE:

March 27, 2007

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Beverly Beasley Johnson, J.D., Director, Human Services Agency

Mark Lane, Director, Children and Family Services

SUBJECT:

Extension of Lease Agreement with GE Capital Modular Space (GE)

RECOMMENDATION:

Adopt a Resolution:

A.

Authorizing the extension of a lease with GE Capital Modular Space for five (5) modular units at Tower Road, extending the term to February 28, 2009, increasing the amount by $59,383 to $155,383, with Net County Cost $59,383; and

B.

Authorizing the Director of the Human Services Agency (HSA) or the Director’s designee to execute lease amendments which modify the County’s maximum fiscal obligation by no more than $25,000 (in aggregate), and/or modify the contract term and/or services so long as the modified term or services is/are within the current or revised fiscal provisions.

VISION ALIGNMENT:

Commitment: Ensuring basic health and safety for all.

Goal 6: Children grow up healthy in safe and supportive homes and neighborhoods.

The Agreement contributes to this commitment and goal by providing a place for the operation of a change of placement program.

Performance Measure:

Measure

FY 2007-08

FY 2008-09

Projected overall satisfaction with the leased modular buildings

100%

100%

BACKGROUND:

On March 1, 2002, the Department of Public Works entered into an Agreement for the purpose of leasing five (5) modular units from GE Capital Modular Space for a period of one year for the purpose of administering a change of placement program at the Tower House children’s receiving home. On July 1, 2002, Change Order Number One (1) included an Addendum acknowledging that the modular facilities would be subleased by a contractor that would administer the change of placement program. The Agreement with the Department of Public Works expired on February 28, 2003, with the understanding that the Human Services Agency would assume responsibility for this lease for an additional four years, with the same terms and conditions.

The Human Services Agency (HSA) assumed the responsibility for leasing these modular units and executed a lease with GE Capital Modular Space in the amount of $96,000 for the term of March 1, 2003, to February 28, 2007.

DISCUSSION:

HSA now needs to extend the term of the lease Agreement with GE Capital for two (2) more years to continue to provide the space for the change of placement program. The lease will continue at the current rate of $51,960 for 24 months. In addition, $7,423 in applicable taxes was not included in HSA’s calculations for the previous lease, and this amount is being added at this time.

In June 2006, the County Manager approved building two 12-bed group homes at the Youth Services Center (YSC). One of these group homes will replace the existing Tower House facility. Children and Youth System of Care (CYSOC) is currently working to complete the plans for this facility. We anticipate the new 12-bed Tower House facility will be completed in the fall of 2008, which is consistent with the two-year extension of the modular lease that is due to expire in February 2009.

The Contractor has assured compliance with the County’s Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits. County Manager has approved an extension of two additional years on the term of the lease. County Counsel has reviewed and approved these documents as to form.

FISCAL IMPACT:

This Amendment with GE Capital Modular Space increases the amount by $59,383, for a total obligation of $155,383, and extends the term for two (2) years. The new term is March 1, 2003 to February 28, 2009. At the time of the original Agreement, it was hoped that the expenditure would be reimbursed by partial State and Federal Funds; to date this has not been the case. Consequently, this Amendment is 100% Net County Cost. There is $59,383 in Net County Cost appropriated in the FY 2006-07 Adopted Budget to cover this Amendment. Funding for this Amendment will be included in the Recommended Budget for FY 2007-08 and FY 2008-09.