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HomeMy WebLinkAboutMINUTES - 09232003 - SD.5 n �aw... q�� CONTRA To: BOARD OF SUPERVISORS { FROM: BARTON J. GILBERT, DIRECTOR OF GENERAL SERVICES!, = COSTA DATE: SEPTEMBER 23, 2003 OUNTY SUBJECT: APPROVE A 20-YEAR LEASE AND PURCHASE OPTION WITH JAMES J.BUSBY AND LYNETTE L.BUSBY FOR DEVELOPMENT OF A NEW 36,000 SQUARE FOOT OFFICE BUILDING AT 555 ESCOBAR STREET,MARTINEZ TO REPLACE AND CONSOLIDATE THE COUNTY CLERK-RECORDER AND ELECTIONS FACILITIES SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION APPROVE a 20-year lease agreement and purchase option with James J. Busby and Lynette L. Busby for a new 361,000 square foot office building at 555 Escobar Street, Martinez for the County Clerk-Recorder, under the terms and conditions more particularly set forth in the lease, AUTHORIZE the Director of General Services, or designee, to execute the lease subject to final approval by the County Administrator and County Counsel, DETERMINE that the project is categorically exempt (Class 27 Section 15327) under the California Environmental Quality Act (CEQA) CP #03-01; and DIRECT the Director of Community Development, or designee, to file a Notice of Exemption with the County Clerk and the Director of General Services, or designee, to arrange for payment of the $25.00 handling fee to the County Clerk for filing the Notice of Exemption and a $25.00 handling fee to Community Development for administration processing costs. FINANCIAL. IMPACT It is anticipated that there will be no increase in ongoing net County costs as a result of the project as lease costs now incurred by the Clerk-Recorder/Elections at multiple locations in downtown Martinez would be replaced by an annual debt service payment for an equivalent cost. Under the proposed terms of the lease, the County will have the option to purchase the building for $8.9 million upon its completion in 2005. The total estimated project cost to the County is $9.6 million, which includes allowances for telephone, data communications, and contingencies. For the past three fiscal years, the Clerk-Recorder's office has set aside $650,000 per year in fund balance to pay for a portion of the costs of this new building. In addition, there are approximately $2 million in Micrographic Modernization funds earmarked for this project, leaving a balance of $5.65 million in lease revenue bonds that will need to be issued in the future to fund the balance of this project. However, given that the County will enter into a lease with an option to purchase, it is not necessary to issue the bonds at this time; rather, the bonds would be issued at a time closer to the execution of the purchase of the building. CONTINUED ON ATTACHMENT:4 X YES SIGNATURE: i RECOMMENDATION OF COUNTY ADMINISTRATOR —RECOMMENDATION RECOMMENDATION OF BOARD COMMITTEE OTHER SIGNATURES ACTION OF BOARD ON_� 23, 2qQ __.. APPROVED AS RECOMMENDED_ X i. OTHER____.- S€EAm: ROB SaWDER,525 HMIEM SMM, �1ARTM VOTE OF SUPERVISORS _ UNANIMOUS(ASSENT.__ AYES: �- ABSENTS:_ ABSTAIN:. MEDIA CONTACT:BARTON J.GILBERT(313-7100) Originating Dept.:General Services Department I HEREBY CERTIFY THAT THIS IS A TRUE cc: General Services Department AND CORRECT COPY OF AN ACTION TAKEN Administration AND ENTERED ON THE MINUTES OF THE BOARD Accounting OF SUPERVISORS ON THE DATE SHOWN. County Administrator's Office County Counsel ATTESTED _ Auditor Controller(via GSD) J E THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR BY... DEPUTY C:\Documents and Settings\Kate Sibley\My DocumentslBoard Orders 03180-Clerk Recorder.9,23.03.doc ML:AH Page 1 of 3 M382(10188) APPROVE A 20-YEAR LEASE AND PURCHASE OPTION WITH September 23, 2003 JAMES J. BUSBY AND LYNETTE L. BUSBY FOR DEVELOPMENT OF A NEW 36,000 SQUARE FOOT OFFICE BUILDING AT 555 ESCOBAR STREET, MARTINEZ TO REPLACE AND CONSOLIDATE THE COUNTY CLERK-RECORDER AND ELECTIONS FACILITIES The proposed financing plan assumes the issuance of 25 year bonds at an all-in cost of 6%, which is a conservative assumption based on current interest rates, and results in no new net County occupancy costs despite the fact the new building is larger than the current space that the Clerk- Recorder/Elections staff now operates out of at several locations in downtown Martinez. The funding plan for the project is summarized in the following table: CLERK/RECORDER/ELECTIONS BUILDING PROJECT FUNDING PLAN Estlmatibd Prast tic ns+�s Fiscal Year 2002-03 2003-04 2004-05 2005-06 Total Planning/Negotiations/Proj Mgmt 100,000 75,000 25,000 200,000 Telephones/Data Communications/Alarms 280,000 280,000 Project Contingency 150,000 150,000 Signage 70,000 70,000 Purchase of Building Upon Completion 8,900.000 8,900,000 Total Costs $100,000 $75,000 $525,000 $8,900,000 $9,600,000 SF of Building 36,000 Project Cost/SF $266.67 FUht Irtg Re:3#�ur�00 General Fund Contributions thru 6/30/03 $1,950,000 Micrographic Modernization Fund $2,000,000 Lease Revenue Bond Proceeds(Sold in FY 05-06) 15,650,000 Total Resources $9,600,000 C trent LqaiaA,FAWI tle /NewwI BUII In F o,6t AnnU I Cost C rrn rlson Current Leased Facilities Occupancy Cost $573,398 Anticipated Leased Facilities Occupancy Cost in FY 05-06 $612,019 New Building Occupancy Cost Initial Debt Service $386,500 Estimated Maintenance/Utilities Cost a220,000 Total New Building Occupancy Cost $606,500 DIFFERENCE (Annual Reduction in Net County Cost) ($5,519) COO tit Qp d.:FscIIItlss/Niw B1 I M nthl /SF Cast` �ris-an Projected Occupancy Cost/Current Leased Buildings (FY 05-06) $1.99 New Building Lease/Estimated Occupancy Cost $2.38 New Building Purchase/Estimated Occupancy Cost $1,40 Rent for the new 36,000 square feet of office space will be approximately $1.95 per square foot or $70,200 per month, which includes building maintenance services, taxes, and insurance. In addition to rent, the Clerk-Recorder will pay for janitorial services and utilities, bringing the total occupancy cost per square foot to $2.38. If the County exercises its purchase option in 2005 as anticipated, occupancy cost will drop to $1.46 per square foot, as debt service on the $5.65 million to be financed will be significantly lower than rent. BACKGROUND Existing Clerk-Recorder/Elections Facilities The County Clerk-Recorder/Elections offices are currently located in six leased buildings totaling approximately 26,000 square feet in downtown Martinez. The leased buildings were not designed for the Clerk-Recorder operations and have been adapted over the years to accommodate significant changes in Clerk-Recorder/Elections operations, including increased staff and workload demands, and technology driven system modifications and requirements. The leased facilities are functionally obsolescent, difficult to locate and access by the public, lack sufficient parking, and are not suitable for housing an increasingly complex and modernized Clerk-Recorder/Elections operation. The current Clerk-Recorder/Elections leased building locations and annual occupancy costs are described in the following table: CADocuments and Settings%ate SlbleytMy DocumentslBoard Orders 03150-Clerk Recorder.9.23.03.doc page 2 of 3 M382(10188) APPROVE A 20-YEAR LEASE AND PURCHASE OPTION WITH September 23, 2003 JAMES J. BUSBY AND LYNETTE L. BUSBY FOR DEVELOPMENT OF A NEW 36,000 SQUARE FOOT OFFICE BUILDING AT 555 ESCOBAR STREET, MARTINEZ TO REPLACE AND CONSOLIDATE THE COUNTY CLERK-RECORDER AND ELECTIONS FACILITIES CURRENT CLERK RECORDER/ELECTIONS LEASED FACILITIES FY 03-04 FY 02-03 Actual Clerk Recorder SF Budgeteded Rent Utilit /y Maint Total 730 Las Juntas 6,500 $117,000 $72,149 $189,149 816 Main St* 575 10,020 - 10,020 822 Main St 2,580 39,000 23,139 62,139 826 Main St 351 5,304 4,094 9,398 835 Castro St 1,800 18,300 27,150 45,450 516 Ward St(Parking) N/A 6,179 - 6,179 Subtotal-Clerk Recorder 11,806 $195,803 $126,532 $322,335 Elections 524 Main St 13,850 176,006 70,077 246,083 535 Ward St(Parking) NIA 4,980 - 4,980 Subtotal-Elections 13,850 180,986 $70,077 $251,063 Total 25,656 $376,798 $196,609 $573,398 Annual Occupancy Casts/SF $14.69 $7.66 $22.35 Monthly Occupancy Costs/SF $1.22 $0.64 $1.86 "Assumes that County stays at Las Juntas through completion of building Process to Identify Replacement Facilities In June 2000, the Board directed the County Administrator's Office to identify replacement facilities for the Clerk-Recorder/Elections operations in downtown Martinez. The General Services Department issued Request for Proposals. Consistent with Board policy that the County should have an equity interest in facilities in which the County would have long-term occupancy, the RFP requested proposers to include a provision for a lease with a purchase option by the County. After review and evaluation of the proposals submitted, in February 2001 the Board directed staff to further evaluate two alternatives. Upon completion of this evaluation, a recommended replacement site and build-to-suit development opportunity was identified as the best alternative. The selected site is approximately 40,000 square feet of land bordered by Marina Vista, Alhambra, Escobar, and Castro streets as shown in Attachment 1. In September 2001, the Board approved the selected site and the proposed replacement of the Clerk- Recorder/Elections leased buildings with a consolidated facility in which the County would have an equity interest. Concurrently, the Board directed staff to initiate the negotiation process to develop a lease with option to purchase agreement for the project. New Clerk-Recorder/Elections Replacement and Modernized Facility The proposed Clerk-Recorder/Elections replacement facility will be located on approximately 40,000 square feet of land bordered by Marina Vista, Alhambra, Escobar, and Castro streets. The building will be a three-story office complex comprised of approximately 36,000 square feet with 67 on-site parking spaces (Attachment 1). The building has been designed in accordance with County design standards and guidelines and the interior improvements have been designed to meet the requirements of the Clerk-Recorder/Elections operation. The new building will provide sufficient electrical and computer capacity consistent with the modern needs, systems, and legal requirements of Clerk-Recorder/Elections operations, including emergency generator and security systems. The City of Martinez has approved the proposed development plan. Estimated Proiect Schedule and Completion It is anticipated that the lease with purchase option will be executed in October 2003. The developer for the project has indicated that construction will be completed in late 2004 with estimated occupancy by the Clerk-Recorder in January 2005. CMocuments and Settings\Kate SibleyWy Documents\Board Orders 03180-Clerk Recorder.9.23.03.doc Page 3 of 3 M382(10188) i x i ! N}xzg a x >' ���� � Mp y Y W g, yp fYYI i ! r 1� ME Au El -4, wv t IN Mue'r W111 JI, v p e. LV x fZ3` ur�� "� 7A.t ," asp q�'Js,�� k h 'n, �'d - aw 1, �� t a � OUR c k a ll dal»� 1in �I i 6 WE .fi..Y � ✓—.0A gg�� d M $ �1 10, I Ri •3'ep f.' 7� �� PDf�_`F��� z;iL� i��;f ?. � M° � �..e"G� -. d �'i"im � `� 11Eat' .•,, w• i ��?' � � y l'! IN �I. a .. � � Ef �s Rik S �� 11�1 ,� r rM _ aifflxm It �� p.: .; a, r; ; Via" n I# . ? h3i a 1 , 4� x r (#1 ✓'.�5'< #`cSrtna* ani-' 5 '.s QE )^'- ' IN, � �''� ` �w ALHAMBRA --� I 01 IM t � e t: " o 7.� I<� � �� S m CASTRO • '� :. �y `•, t ova.- .� s�-- y CALIFORNIA ENVIRONMENTAL QUAL€TY ACT Notice of E,,xemption Contra Costa County Community Development Department 651 Pine Street, 4th Flag- North Wing, McSrien Administration Building Martinez, CA 94553-0695 Telephone: (925) 313-7250 Contact Person: Steven B. Van Horn Project Description, Common Name (if any) and Location: CP# 03-01, Lease of office space in a soon to be constructed office building for.the Contra Costa County's Clerk- Recorder and .elections Divisions. The project is located at 555 Escobar Street, Martinez. This project is exempt from CEQA-as a: [check which ever one applies] Ministerial Project(Sec. 15268) Other Statutory Exemption, Section Declared Emergency(Sec. 15269(a)) General Rule of Applicability(Section 15061(b)(3)) Emergency Project(Sec. 15269(b)or(c)) FRI Categorical Exemption, Class 27 Section 15327 for the following reason(s): It can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment. Luse of administrative offices by a local agency in a soon to be constructed privately owned office building where the governing authority determined that the building was exempt from CEQA. ©ate: By: Community Development Department Representative AFFIDAVlT OF FILING AND POSTING I declare that on i received and posted this notice as required by California Public Resources Code Section 21152(c). Said notice will remain posted for 30 days from the filing date. Signature Title Applicant: County General Services Department Attention: Steven B.Van Horn 1220 Morello Avenue, Suite 100 Martinez, CA 94553-4711 County Clerk Fee 25 due