Inter-Departmental Correspondence


County Manager’s Office



February 20, 2009


March 3, 2009







Honorable Board of Supervisors



Steve Alms, Manager, Real Property Division



EXECUTIVE SUMMARY: Lease agreements with Harbor Belmont Associates, a California General Partnership of two office buildings at 400 Harbor Blvd., Unincorporated Belmont and with Davis Associates, Tenancy In Common, for an office building at 1 Davis Dr., Belmont, for the Human Services Agency. (Lease Nos. 1286 and 1289)



Adopt a resolution authorizing and directing:

    1) The President of the Board to execute a Lease Agreement with Harbor Belmont Associates of two office buildings in the project at 400 Harbor Blvd., Belmont, at an initial monthly rent of $124,351.50 for a term of ten years with two options to extend for an additional five years each, and


    2) The President of the Board to execute a Lease Agreement with Davis Associates of an office building at 1 Davis Dr., Belmont, at an initial monthly rent of $103,805.00 for a term of ten years with two options to extend for an additional five years each, and


    3) The County Manager or his designee to execute any and all written elections, options, terminations, notices and documents in connection with the Lease Agreements for either of the premises, including the exercise of the County's right to modify from time to time during the term the portion of the premises in active use by the County and to make a corresponding adjustment in the rent.



Commitment: Ensure basic health and safety for all.


Goal: Goal 8. Help vulnerable people achieve a better quality of life.


The Agreements contribute to this goal by consolidating administrative functions in a location that will enable the Human Services Agency to efficiently support services throughout the County, and to focus the use of the Harbor Park campus to provide direct services.



The renegotiation and extension of the 400 Harbor Blvd. lease and the consolidation of administrative functions at the 1 Davis Dr. location represent the culmination of five years of evaluation, planning and negotiation. The resulting agreements enable the Agency to redistribute personnel currently located in a variety of leased and owned facilities and to position the Agency to accomplish its mission for the next decade, and beyond. Increasing demand for services or new demands placed on San Mateo County through devolution or new state and federal regulations, has resulted in the addition of 155 new positions since July 2004. During the same period no new space, leased or county-owned, has been added.



400 Harbor Blvd.
Real Property Services has negotiated a new lease of the existing HSA facilities at 400 Harbor Blvd, including in the terms a significant rent reduction. The initial monthly rate of $2.10 per square foot for the 59,215 square foot facility results in a monthly rent of $124,351.50. In addition, the County will reimburse the landlord for the cost of certain leasehold improvements.


1 Davis Dr.

The 69,925 square foot facility at the southeast corner of Davis Dr. and Ralston Ave. includes two levels of offices of 30,000 square feet each and a 9,925 square foot basement improved as break room, conference and training space, all delivered in “Plug & Play” condition. The lease enables the County to initially utilize and pay for only 39,925 square feet at a monthly cost of $103,805.00. The 30,000 square foot second floor of the building will be held as “Expansion Space”, with rent paid only if it is occupied. HSA anticipates using the location as its departmental emergency operations center.


Facility Consolidation

While the lease at 1 Davis involves an additional 40,000 square feet, the Agency will coordinate an offsetting reduction of more than 18,000 square feet of leased office space. The net effect of the changes will be an expansion of approximately 21,000 square feet, while decreasing the Agency’s annual lease charges.


The Housing, Health and Human Services Committee reviewed this matter at its January 27, 2009 meeting. The Committee and The Director of the Human Services Agency concur in this recommendation.



When compared to rent for the current 400 Harbor Blvd. lease, the combined rent for 400 Harbor Blvd. and 1 Davis Dr. will represent a reduction in the Agency’s rent and corresponding Net County Cost for the balance of Fiscal Year 2008/2009, as well as those projected for Fiscal Year 2009/2010.