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HomeMy WebLinkAboutMINUTES - 03091993 - 1.44 TO: BOARD OF SUPERVISORS ,; Contra FROM: Phil Batchelor �` -_ :' o Costa County Administrator ,% COUr�j/ T4 COUK� DATE: March 9, 1993 SUBJECT: APPROVAL OF LEASE WITH DOUGLAS ASSOCIATES FOR CONSOLIDATED SOCIAL SERVICE FACILITY — WEST COUNTY SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION(S): 1. ACKNOWLEDGE that the poor quality of the Social Service Department's EI Sobrante office has resulted in many employee complaints regrading air quality, air circulation and roof leaks; and that, unless a replacement building is found, the short term repair costs for the facility will be approximately $175,000. 2. ACKNOWLEDGE that the Research Drive facility for Social Service Children's Services/GAIN is an expensive space alternative and that is was.obtained only as an emergency alternative following the structural failure of the roof of the Weber building. 3. ACKNOWLEDGE that the employee organizations in the Social Service Department have been consulted and support the consolidation of the EI Sobrante office and Research Drive office into a single office in Hercules. 4 ACKNOWLEDGE that the Hercules site will provide expanded office space at equivalent prices as the current office space with the added benefits of 1) improved reception, meeting room and interview space for clients; 2) improved work environment for employees; and 3) stabilization of County building costs since this will be a County—owned facility. CONTINUED ON ATTACHMENT: YES SIGNATURE: _RECOMMENDATION OF COUNTY ADMINISTRATOR_RECOMMENDATION OF BOARD COM E APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON /!?VAPPROVED AS RECOMMENDED .<OTHER VOTE,OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS(ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ABSENT: ABSTAIN: ON MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Carol Chan, 646-1021 cc: County Administrator ATTESTED General Services Director PHIL BATCHELOR, LERK OF County Counsel THE BOARD OF SUPERVISORS Auditor-Controller AND COUNTY ADMINISTRATOR Social Services Director ��` BY ,CLERK 5. ACKNOWLEDGE the efforts of the Social Service Department to provide opportunity to clients and the public in surrounding communities to comment on the proposed consolidation project. 6. ACKNOWLEDGE that the Social Service Department has concluded an impact study on the office relocation which finds that the fiscal savings and other benefits of the relocation warrant approval of the project. 7. AUTHORIZE the Social Service Department and General Services Department to proceed with the relocation project; APPROVE the Lease of Real Property, commencing March 9, 1993, with Robert Cass, Inc., dba Douglas Associates, for the premises designated as Lots 5 and 6, Subdivision 6212, in the Northshore Business Park, Hercules, California, for occupancy by the Social Service Department, under the terms and conditions more particularly set forth in said Lease, and AUTHORIZE the Director of General Services to execute said Lease on behalf of the County. 8. DETERMINE that the relocation project does not require an Environmental Impact Report since it is categorically exempt under Class Twenty-Seven (27) Categorical Exemption under the California Environmental Quality Act, and DIRECT the Director of Community Development to file a Notice of Exemption with the County Clerk. FINANCIAL IMPACT The recommended action will have a positive fiscal impact. Current studies demonstrate that the costs for continuation of the leases, higher rents and amortization of required improvements for the existing facilities will exceed the projected debt service for the proposed facility. The projected annual debt service for the consolidated building is $480,000. The current costs for the two leased buildings total approximately $450,000. However, the base rent for the EI Sobrante facility can be expected to increase by 5% to 10% when the lease terminates on April 30, 1993. In addition approximately $175,000 is necessary to improve the building's air circulation, perform alterations for compliance with ADA requirements, and make other required improvements. In addition, the project will allow the Social Service Department to combine reception functions with increased efficiencies in the use of administrative support staff. All the costs associated with this project are funded by restricted capital projects bond financing. BACKGROUND/REASONS FOR RECOMMENDATION(S) On January 19, 1993, the Board approved a two-month option to lease or purchase real property in Northshore Business Park, Hercules to secure a northern West County Social Service facility for consolidation and replacement of two leased facilities located at 3630 San Pablo Dam Road, EI Sobrante, and 3045 Research Drive, Richmond. Project Need/Benefits The Social Service Department's West County income maintenance functions are currently handled in the El Sobrante office, while the Children's Services/GAIN program is handled at the Research Drive office. Both of these offices have serious drawbacks from a functional and/or cost-effectiveness perspective. The EI Sobrante office has been in use for over 22 years and is an old Safeway building. Numerous staff complaints have been received concerning air quality, air circulation and leaking roof. The short-term building renovation cost would run approximately $175,000. This does not include replacement of threadbare carpeting or other nonessential building environmental attributes. Under the standard of the lease for the El Sobrante facility, the County would be obligated for most of these building improvements. In addition, preliminary discussions with the building owner indicate that he expects to raise the rental rate following expiration of the lease on April 30, 1993. The building is also characterized by an inadequate reception area, too few meeting rooms and inadequate interview space. 2 The Research Drive facility was obtained on an emergency basis after the structural failure of the roof of the previous Weber building facility. The office is not well designed for the volume of clients currently seen at that office. In addition, the rental rate is high due to the building location and age. Relocation of the existing EI Sobrante and Research Drive facilities to the proposed Northshore Business Park facility would provide an improved building environment for both clients and staff. There will be a larger reception area, more meeting/workshop rooms, and better interview booths. Public Review/Project Impact Analysis During the past two months, the Social Service department has completed a project impact study concluding that there is no detrimental impact as a result of this consolidation to the Hercules Northshore Business Park location. The public was given numerous opportunities for comment and review of the project. The Social Service Department prepared a Notice of Office Consolidation/Relocation with information on public meeting dates. The notice was posted in both the EI Sobrante and Research Drive buildings. The notice was in English, Spanish, Vietnamese and with a statement in Laotian offering verbal translation. Notices were mailed to 119 community-based or non-profit organizations, nutrition sites, advisory committees, and six public agencies. They were sent to seven area libraries and published in the Sunday, February 14, 1993 edition of the West Contra Costa Times. Two informational meetings were held on Wednesday, February 17, to receive public comment. The first was held at 2:00 p.m. at the County Library in EI Sobrante and the second at 7:00 p.m. at the EI Sobrante Social Service Office. No members from the public attended either meeting. The Welfare Director met with representatives of the Employee Organizations as well. These representatives responded favorably to the proposal, which will enhance the quality and safety of the work environment. Written comments have been received from three department employees, one in favor and two opposed to the office consolidation. The only public comment received was from Contra Costa Legal Services Foundation stating that the County had not given adequate notice to the public nor had the County completed and released an impact study showing the effects of such a consolidation. Therefore, Legal Services was unable to take a position on the proposed consolidation. All public comments, both written and verbal, were incorporated into the impact study. The impact study analyzed the impact of the relocation on client access, and found no detrimental impact. City of Hercules Review of Project The project is located within the Hercules city limits, and consequently, will require approval of the Hercules Planning Commission. County staff has met with City staff four times over the past 7 months regarding the project. City staff has indicated that there is merit to support the location of the facility at the proposed site. At a February 23, 1993 meeting, city planning staff stated that the project continued to have staff support, that a briefing on the project by the City Manager to members of the City Council resulted in no stated objections to the project. However, as with all planning projects, the consolidation project will require a formal application and review and approval of the City of Hercules. The city's policy position on the project will be developed through that review process. Site Selection/Client Access The selection of this Hercules site represents the culmination of five years of planning efforts and consideration of nineteen other sites to secure a consolidated northern West County Social Service facility. This site offers the best combination of location, client access, desirable land configuration with room for future expansion, affordable land cost, limited impact on surrounding area, and immediate availability. 3 Recent surveys conducted by the department at the EI Sobrante and Research Drive offices indicate that 92% of clients visiting each office arrived by private vehicle, 6% by bus, and 2% by other means of transportation. The Hercules site has excellent access to major transportation routes and to public transportation. The site is located along San Pablo Avenue, a major arterial, at the junction of Highways 4 and 80. The major bus route serving this location starts from Richmond BART stops immediately adjacent to this site. By consolidation, the department will achieve operational savings from elimination of duplicate waiting and reception areas and have enhanced flexibility to meet future program changes. Cost Comparisons The projected annual debt service cost for the 40,000 square foot consolidated building is approximately $480,000 annually. The current costs for the two leased facilities which total 35,865 square feet is approximately $450,000 annually. However, the lease costs do not include repairs required at the EI Sobrante building. Complaints regarding the building environment continue to be reported by the department. Air quality and circulation, and roof leaks are typical of such reports. In addition to these costs, preliminary discussions with the building owner indicate the County should expect an increase in the rental rate if we were to remain in this building (current lease expires April 30, 1993). In addition, the lease costs do not include additional space that would be required if the department were to remain at the EI Sobrante facility. Current projections indicate that an additional 5,000 square feet would be required within the next year. The cost for this additional space is estimated at $50,000 annually. This estimate does not include the increased operational costs of having to staff another separate location. Construction Process Construction of the new consolidated Hercules facility will probably take eighteen to twenty—four months. Holdover short—term leases at both EI Sobrante and Research would be negotiated until the Hercules facility is ready for occupancy, since the EI Sobrante lease expires April 30, 1993 and the Research Drive lease January 31, 1994. The process for acquisition of this facility is the same as has been used for acquisition of the other Social Service buildings located in Martinez and Antioch. The County enters into a lease with a purchase option. The developer builds the facility to County specifications, the County then exercises the purchase option using tax—exempt financing. Space Cost Stabilization The consolidation and acquisition of permanent space for Social Service is consistent with Board policy to obtain ownership and stabilize space costs in those facilities which will have long—term County occupancy. The ability to stabilize space costs and own facilities is especially important as financial resources decrease. The debt service for one facility purchased through tax—exempt financing has already ended and other debt services will end soon. FY 1991/92 was the last year of debt service for 2425 Bisso Lane, Concord, which is occupied by Community Services, Veteran's Services, Private Industry Council, and Health Services Department programs. The debt service for the Social Service Central District Office located at 30 Muir Road, Martinez, and the Public Defender's Office located at 610 Court Street, Martinez, will end in FY 1996/97; and for 40 Muir Road, Martinez and Mt. Diablo Municipal Court located at 2970 Willow Pass Road, Concord, in 1997/98. Approval of the lease with purchase option for the Hercules consolidated facility provides the County with the opportunity to achieve these same benefits. 4