COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Health Department

DATE:

April 11, 2008

BOARD MEETING DATE:

April 22, 2008

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Four-fifths vote

TO:

Honorable Board of Supervisors

FROM:

Charlene A. Silva, Director, Health Department

SUBJECT:

Appropriation Transfer Request for Environmental Health Leased Facility Moving Costs

RECOMMENDATION:

Approve an Appropriation Transfer Request (ATR) transferring $728,000 from Health Administration Intrafund Transfers to Health Administration various expenditure accounts, and $601,048 from Environmental Health Departmental Reserves and Other Charges to various expenditure accounts within Environmental Health to fund costs associated with the move to the leased facility on Alameda de las Pulgas.

VISION ALIGNMENT:

Commitment: Ensure basic health and safety for all.

Goal 5: Residents have access to healthcare and preventive care.

The Agreement contributes to this commitment and goal by consolidating administrative and service functions in a convenient location that will enable the Health Department to efficiently provide and support services to those in the central part of the County and beyond.

BACKGROUND:

Since 1990 Mental Health (now Behavioral Health and Recovery Services) has occupied the building at 3080 LaSelva Street, San Mateo, as its primary central-county administrative and services facility. The rental history, quality and condition of the facility, and staff increases led to the search for an alternative location. The search for alternative space provided an opportunity to consolidate multiple Health Department leased facilities in a single location, and to co-locate related functions from the County-owned facility at 225 37th Avenue. Relocation of certain functions from 37th Avenue will help alleviate current conditions, and provide adequate space to accommodate changes resulting from the recent County reorganization. It will also facilitate the relocation of the Environmental Health Division from its current location at 455 County Center to a more appropriately sized facility. Approximately 400 staff will be accommodated at the facility including Behavioral Health and Recovery Services, Family Health Services and Environmental Health. Real Property Services negotiated a lease of approximately 81,223 square feet in the office project at 2000 Alameda de las Pulgas, San Mateo.

On June 5, 2007, your Board authorized the execution of a Lease Agreement with Hines REIT 1900/2000 Alameda de las Pulgas LLC, a Delaware limited liability company for a portion of the office project at an initial monthly rent of $210,423 for a term of ten years with two options to extend for an additional five years each.

On March 11, 2008, your Board approved an Appropriation Transfer Request (ATR) transferring funds from existing appropriations in Health Department divisions and Reserves in order to fund the annual rent and one-time furniture, moving, and ISD costs for the Behavioral Health and Recovery Services and Family Health Divisions. The ATR also made corresponding appropriations within the Real Property Services budget for the receipt and payment of rent proceeds from the Health Department to the property owner. Costs to move Environmental Health, which is the last division to move to the Alameda facility, were unknown at that time.

DISCUSSION:

Since the execution of the lease, Health Department staff have been working with the County’s Purchasing Division to obtain suitable furnishings and with the Information Services Department (ISD) to accommodate the facility’s technical needs. In order to streamline the process and optimally manage costs, all purchases are being made through Health Administration and later applied to the appropriate divisions.

FISCAL IMPACT:

The ATR transfers $728,000 from Health Administration Intrafund Transfers to Health Administration various expenditure accounts, and $601,048 from Environmental Health Departmental Reserves and Other Charges to various expenditure accounts within Environmental Health. There is no Net County Cost impact associated with this ATR. Ongoing rent payments will be appropriated in future budgets.