B. Approve the one-time cost of$27,500 for tenant improvements (in excess ofthe landlord's Tenant Improvement allowance of$57,935).

Transcription

1 Lori Cox Agency Director Alameda County Social Service Agency Thoma L. Berkley Square 2000 San Pablo Avenue, Fourth Floor Oakland, California I Fax: adirector@acgov. org AGENDA No. July 21, 2015 July 7, 2015 County of Alameda 1221 Oak Street, Suite 536 Oakland, California Dear Board Member: SUBJECT: APPROVE A THIRD MODIFICATION TO LEASE WITH EASTMONT OFFICE OWNER, LLC, TO ADD 6,912 SQUARE FEET OF SPACE TO THE SSA SELFSUFFICIENCY CENTER AT 6955 FOOTHILL BOULEVARD, SUITE 100, OAKLAND, CALIFORNIA: AMOUNT: $1,321,933 RECOMMENDATIONS: A. Approve and authorize the Preident of the Board of Supervior to execute a Third Modification of Leae between Eatmont Office Owner, LLC, a Delaware limited liability company (Hamid Rezapour, Manager, Vertical Venture Capital, LLC)), and the County of Alameda, expanding the leae by approximately 6,912 quare feet of additional office pace at 7200 Bancroft Avenue, Suite 36 (alo known a 6955 Foothill Blvd, Suite 15), Oakland, California, for the Social Service Agency' SelfSufficiency Center. The term of the modification will be 9/1/2015 through 11/30/2024. The total additional contract amount over the term i $1,321,933. B. Approve the onetime cot of$27,500 for tenant improvement (in exce ofthe landlord' Tenant Improvement allowance of$57,935). C. Authorize adjutment to SSA' and GSA' FY budget a detailed in the attached financial recommendation. DISCUSSION/SUMMARY: The County entered into an office leae for 72,368 quare feet in 1998 to locate the Social Service Agency' (SSA) Self Sufficiency Center at 6955 Foothill Blvd., Suite 100. On July 29, 2014, your Board authorized the Second Modification to the Leae to extend the term for 120 month, expiring on 11130/24. The SelfSufficiency Center upport a ignificant population in the Eat Oakland community. The center currently erve approximately 20,000

2 Honorable Board of Supervior 2 July 7, 2015 client each month. The Eatmont ite provide a convenient, centralized location with excellent acce to public tranportation and i proximate to other County ervice nearby and i welluited to erve SSA' client population. Thi expanion pace, Suite 36 (alo known a Suite 15), ha been ued by SSA' contractor to provide Career and Employment Center ervice. SSA deire to control the leae pace for ue by the current and future contractor to provide career planning, employment placement and retention ervice for participant in the CalWORK, WelfaretoWork, and General Aitance program in Eat Oakland. On July 8, 2014, your Board approved SSA' recommendation to award the new ervice contract to Lao Family Community Development. Thi ervice contract i for three year, from July 1, 2014 through June 30, 2017, with authority to renew for two additional fical year, FY 2017/18 and FY 2018/19, and will be operated in thi expanion pace. A ummary of the term of thi Third Modification of the Leae i a follow: 1. Premie: 6,912 rentable quare feet. 2. Term: Approximately 111 month. 3. Rent: The monthly rent projected to tart September 1, 2015 will be $10,506 for the additional pace with 3% increae each year thereafter. 4. Janitorial expene i etimated at $1,244 per month, with an annual ecalation of 2.5%. 5. Total rent cot over the projected term ofthi Third Leae Modification will be $1,321, The Bae Year for operating expene i Utilitie: The County will pay for it own utilitie. FINANCIAL: Funding come from variou federal and tate allocation available to SSA. The attached financial recommendation will increae appropriation to accommodate leae expene that were not included in the FY Approved Budget. Annual leae expene will be requeted in ubequent budget year during the remaining term of the leae. There will be no increae in net County cot. Repectfully ubmitted, Director, Social Service Agency 1\:PROPERTY\BOARO LETTERS\REAL PROPERTY\LETTERS\BOS JS.RPM.3"" MOOIFICA TION FOR SSA SELFSUFFICIENCY AT EASTMONT FOR CEC Attachment cc: Suan S. Muranihi, County Adminitrator Steve Manning, AuditorController Donna R. Ziegler, County Counel

3 FINANCIAL RECOMMENDATION AGENDA DATE: Subject of Board Letter: Approve 3rd modification to leae with Eatmont Office Owner for the SSA Self Sufficiency Center at 6955 Foothill Blvd BY: 2016 FUND: The ue of Deignation, a follow: NAME OF DESIGNATION ORG AMOUNT The increae (decreae) in anticipated revenue, a follow: $94, $94,329 ORGTOTAL $188,658 ORGTOTAL $0 GRAND TOTAL ANTICIPATED REVENUE $188,658 The increae (decreae) in appropriation, a follow: $188,658 ORGTOTAL $188,658 ORGTOTAL $0 GRAND TOTAL APPROPRIATION $188,658 ===================

4 FINANCIAL RECOMMENDATION AGENDA DATE: Subject of Board Letter: Approve 3rd modification to leae with Eatmont Office Owner for the SSA Self Sufficiency Center at 6955 Foothill Blvd BY: 2016 FUND: The ue of Deignation, a follow: NAME OF DESIGNATION ORG AMOUNT The increae (decreae) in anticipated revenue, a follow: informational $188,658 ORGTOTAL $188,658 lnformallonal ORGTOTAL $0 GRAND TOTAL ANTICIPATED REVENUE $188,658 =================== The increae (decreae) in appropriation, a follow: informational $188,658 ORGTOTAL $188,658 ORG TOTAL $0 GRAND TOTAL APPROPRIATION $188,658 ===================

5 ORIGINAL SelfSufficiency THIRD MODIFICATION TO LEASE THIS THIRD MODIFICATION TO LEASE (thi "Third Modification") i made and entered into effective, 2015 (the "Effective Date") by and between Eatmont Office Owner, LLC, a Delaware limited liability company ("Landlord"), and County of Alameda ("Tenant"). RECITALS A. Eatmont Town Center Company, LLC, a California limited liability company ("Original Landlord"), and Tenant entered into that certain Leae dated October 27, 1998 (the "Original Leae"), a amended by that certain Firt Modification to Leae by and between Original Landlord' ucceorininteret, Eatmont Oakland, LLC, a Delaware limited liability company ("the Firt Succeor Landlord"), and Tenant dated June 7 ~ 2005 (the "Firt Modification"), and by that certain Second Modification to Leae by and between Eatmont Oakland Aociate, LLC, a Delaware limited liability company ("Second Succeor Landlord"), a ucceorininteret to Firt Succeor Landlord, and Tenant dated July 29, 2014 (the "Second Modification", and collectively with the Original Leae and Firt Modification, the "Exiting Leae") puruant to which Tenant i leaing Suite 100 at 6955 Foothill Blvd in Oakland, California ("Exiting Premie"). B. Tenant deire to expand the Exiting Premie by leaing and Landlord deire to leae to Tenant additional pace located at 7200 Bancroft Avenue, Suite 36 (alo known a 6955 Foothill Blvd., Suite 15), in Oakland, California (the "Additional Space"). C. The defined, capitalized term ued in the Leae hall have the ame meaning when ued herein. D. Landlord and Tenant deire to modify the Leae a et forth in thi Third Modification. NOW, THEREFORE, it i agreed a follow. 1. Definition. All capitalized term ued herein and defined in the Exiting Leae hall have the ame meaning a in the Exiting Leae, unle otherwie defined herein. All reference to the term "Leae", "the Leae'', or "thi Leae" referenced herein hall refer to the Exiting Leae a amended by thi Third Modification. 2. Leae of Additional Space. Commencing on the Expanion Commencement Date (a defined below), Landlord hereby leae to Tenant and Tenant hereby leae from Landlord the premie depicted on Exhibit A (the "Additional Space") which conit of approximately 6,912 rentable quare feet. Commencing on the Expanion Commencement Date, the Additional Space hall hereby be included and made a part of the Premie under the Leae for all purpoe. The leaing of the Additional Space i upon all of the term and condition of the Exiting Leae, except a provided herein. Subject to ubtantial completion of Landlord' Work (including Punchlit Item, in accordance with the requirement et fort~ on Exhibit B hereto), Tenant hereby (and a of the commencement of the Expanion Commencement Date) accept the Additional Space in it "ASIS" condition without any repreentation or warranty a to the condition of the Additional Space, or any warranty that the Additional Space i uitable for Tenant' ue. 1 THIRD MODIFICATION TO LEASE PDX\116631\156324\DHE\

6 SelfSufficiency 3. Term. The Term with repect to the Additional Space (the "Additional Space Term") hall commence on the date Landlord deliver poeion of the Additional Space with Landlord' Work (a defined in the Work Letter attached hereto a Exhibit B) ubtantially complete (or the date uch Landlord Work would have been completed but for Tenantcaued delay, including without limitation change order requeted by Tenant puruant to Section 1.3 of Exhibit B) (the "Expanion Commencement Date"), and hall thereafter be coterminou with the Term a et forth in the Second Modification. No Bae Rent or Operating Expene hall be due for the Additional Space between the Effective Date and the Expanion Commencement Date. The etimated Expanion Commencement Date i September 1, Bae Monthly Rent. Bae Monthly Rent for the Additional Space hall be a follow: Month No Approximate Calendar Month September!, 2015Augut 31, 2016 September!, 2016Augut 31, 2017 September!, 2017Augut 31, 2018 September 1, 2018Augut 31, 2019 September 1, 2019Augut 31, 2020 September 1, 2020Augut 31, 2021 September 1, 2021Augut 31, 2022 September 1, 2022Augut 31, 2023 September 1, 2023Augut 31, 2024 September 1, 2024November 30, 2024 Bae Monthly Rent $10, $10, $11, $11, $11, $12, $12, $12, $13, $13, All Bae Monthly Rent adjutment for the Additional Space have been calculated and are included above. Section of the Original Leae, entitled Periodic Increae of Bae Monthly Rent, doe not apply to the Additional Space. Bae Monthly Rent for the Premie other than the Additional Space hall remain a follow, puruant to the Second Modification: Month No Calendar Month December 1, 2014November 30, 2015 December 1, 2015November 30, 2016 December 1, 2016November 30, 2017 December 1, 2017November 30, 2018 December 1, 2018November 30, 2019 December 1, 2019November 30, 2020 December 1, 2020November 30, 2021 December 1, 2021November 30, 2022 December 1, 2022November 30, 2023 December 1, 2023November 30, 2024 Bae Monthly Rent $101, $104, $108, $111, $114, $118, $121, $125, $129, $132, Tenant' Proportionate Share. Tenant' Proportionate Share with repect to the Additional Space hall be 1.35% (the "Tenant' Proportionate Share for Additional Space"). 2 THIRD MODIFICATION TO LEASE PDX\116631\156324\DHE\

7 SelfSufficiency Thu, the cumulative Tenant' Proportionate Share including the Premie and the Additional Space hall be 13.9%. 6. Exce Operating Expene; Other Tenant Obligation. In addition to the Monthly Rent, Additional Rent and all amount payable upon the Premie under the Exiting Leae, commencing on the Expanion Commencement Date, Tenant hall alo pay the following amount for the Additional Space: (a) Tenant' Proportionate Share for Additional Space of Exce Operating Expene puruant to Exhibit A of the Second Modification; (b) utilitie ued in connection with the Additional Space; and (c) $1, per month for janitorial ervice for the Additional Space, which amount hall increae by 2.5% on each ucceive July 1t of each year (a provided in Exhibit A of the Firt Modification). 7. Bae Year. The Bae Year for the Additional Space hall be the ame a for the Premie, calendar year Effect of Amendment. Submiion ofthi Third Modification for review doe not contitute an offer or acceptance by either party. Thi document may not be relied upon, nor may any claim for reliance or etoppel be made baed upon thi document, unle and until thi document i fully executed and delivered by Landlord and Tenant. 9. Repreentation. Each party hereby repreent and warrant to the other that (a) thi Third Modification contitute it binding obligation and i enforceable againt it in accordance with it term, and (b) no conent of any third party i neceary for uch party to execute, deliver and perform thi Third Modification. Tenant warrant that it ha dealt with no broker regarding thi Third Modification and Tenant owe no broker fee,. The peron executing thi Amendment on behalf of each party warrant hi or her authority to do o. The Premie and Project have not undergone inpection by a certified acce pecialit. 10. Ue: Tenant Additional Space will be ued for the Permitted Ue a et forth in the Exiting Leae. Landlord undertand that third partie may be acceing and uing the Additional Space to provide ervice, and hereby conent to the ue of the pace by individual and organization that have a contractual relationhip with the County to provide ervice; Article 21, Indemnification hall apply in connection with uch third partie' ue or occupancy of, or any activity, work or other thing done, permitted or uffered by Tenant on or about, the Premie and/or the Additional Space. 11. Statu of Leae. Except a exprely amended hereby, the Leae remain in full force and effect and i hereby ratified and confirmed. 3 THIRD MODIFICATION TO LEASE PDX\ \156324\DHE\

8 SelfSufficiency IN WITNESS WHEREOF, thi Third Modification ha been executed a of the date firt above written. LANDLORD: EASTMONT OFFICE OWNER, LLC, a Delaware limited liability company By: Eatmont Office Partner, LLC, a Delaware limited liability company, it ole member By: Eatmont GP, LLC, a California limited liability company, it Adminitrative Member By: Vertical Venture Capital, LLC, a Delaware limited liability company, dba Vertical Venture, it Manager TENANT: COUNTY OF ALAM By:. ~ fl' ' it H\Q~":~ '!l' K:6liljCan;ga, Pre"S1dent,... \;... _. ' Alameda County Board Of Supervior APPROVED AS TO FORM: Donna Ziegler, County Counel 4 THIRD MODIFICATION TO LEASE PDX\116631\156324\DHE\

9 SelfSufficiency EXHIBIT A Additional Space Eatmont Towncente, Su te 15 Oakland, CA kol< ~14 l ' CI' Alameda Career Center 6,912 RSF

10 SelfSufficiency 1. Landlord' Work. EXHIBITB Work Letter 1.1 Plan. Landlord hall improve the Additional Space by (a) performing the work decribed on the Conceptual Tenant Improvement preadheet, attached a Exhibit B1, and in the configuration hown on Exhibit A. The foregoing contitute the "Final Plan" and may alo be referred to herein a the "Plan." The intallation of the tenant improvement decribed in the Plan i herein referred to a "Landlord' Work." 1.2 Contruction. Landlord hall perform Landlord' Work ubtantially in accordance with the Plan. Landlord' Work hall be performed uing building tandard color and material unle other material have previouly been pecified in Exhibit B1. All contruction work hall be performed by Landlord' contractor. Landlord hall ue reaonable effort to ubtantially complete Landlord' Work and to caue the Additional Space to be delivered not later than September 1, 2015 ; provided, however, that Landlord hall not be in material breach, nor liable for any claim for cot or lot profit incurred a a reult, delivering the Additional Space at a reaonable later date 1.3 Change in Plan. Tenant may requet in writing reaonable change in the Plan; provided, however, that (i) no uch requet hall affect any tructural change in the Premie; (ii) Tenant hall pay any additional cot required to implement uch change, including, without limitation, lo of rent, architecture fee, increae in contruction cot and other charge payable hereunder caued by delay, and Tenant hall pay Landlord for aid cot within fifteen (15) day after written notice from Landlord; and (iii) uch requet hall contitute an agreement by Tenant to any delay in ubtantial completion caued by reviewing, proceing and implementing uch change, and the Additional Space hall be deemed delivered on the date it would have been delivered abent all uch delay. 1.4 Completion and Delivery. The Additional Space hall be delivered when contruction of Landlord' Work i ubtantially completed ubtantially in accordance with the Final Plan, a evidenced by a certificate of occupancy (with or without condition) or by a certificate of ubtantial completion by Landlord' architect. 1.5 Inpection and Punchlit. Approximately ten (10) day prior to the date which Landlord anticipate to be the date that the Additional Space will be delivered, Landlord hall deliver to Tenant written notice of the expected date of uch ubtantial completion. Prior to the date upon which the Additional Space i delivered, repreentative of Landlord and Tenant hall make a joint inpection of the Premie to create an agreedupon lit of item yet to be ubtantially completed. The item included in uch lit are herein referred to a "Punchlit Item." Certain of the Punchlit Item may be completed by Landlord prior to the date upon which the Additional Space i delivered. After the date upon which the Additional Space i delivered, Landlord hall complete the remaining Punchlit Item with due diligence. If the partie are unable to agree whether any particular item i to be included a a Punchlit Item or whether the ame ha been atifactorily completed, then the deciion of Landlord' architect 1EXHIBITB PDX\ \156324\DHE\

11 SelfSufficiency hall be binding. Landlord' obligation to complete the Punchlit Item hall not alter the date upon which the Additional Space i delivered nor alter the Commencement Date. The obligation of Landlord to perform Punchlit Item work hall be to perform the ame to an indutry tandard level, not to perfection. Except for the obligation to perform Punchlit Item, Landlord hall have no other or further obligation with repect to contruction of Landlord' Work. 2EXHIBITB PDX\ \156324\DHE\

12 SelfSufficiency EXHIBIT B1 Conceptual Tenant Improvement Prepared for: ScanlanKemperBard Companie Eatmont Town Center Alameda Career Center Suite 15, Conceptual Tenant Improvement Budget A,~.,ei '{)?01~ Decription uuanmv Unit Unit Cot Iota! Cotl t Conce12tual Tenant lm12rovement Budget Suite 15 Alameda CarHr Center Budaet Sauare Footaoe 6!1tz HSI Interior uemolition Herna111111Q Wall, l.a!i1111q, t:tc. 1 I 1,!>UU.00 I VY ajjs Metal ::Stua ano Ufywan!:>2 If WaJJY ~ter Wall Patchmo a neeoea 40 If 8.00 l::.neml19 in Storaqe Cloet 1 I 1, I t'a1ntl11q In tenor vv au univ ~w twa oorlntenor 3' x I' Door, frame and Hardware 4 ea 950.uu Ir loor \,0Ve1111Q l.alroet tretch and dean 6912 Sf vei11n1r.r I oar Kepa1r at new wan 1 I j(jl.j.00 Inulation, ::ound Batt lntenor Wall onlv 4L n 6.00 HVACheat and air+<1: do duct work to provide upply and return to new office only 1 I 2, Fire Spnnkler Rework exit111q for new head 1 I 32!>U.UU t:jeetrical Duplex outlet NonDedicated at new office 2each 4 ea CJe<:Dlcal JBox for Cubide ueoicated 20 amp 3 ea t:jeetncal Liahbng /"4 Fixture at new office 5 ea.1uu.00. Elec:trical \ltitch1ng at new office and Storooe 1 I nlolle RlnQ and tnnq 2 ea Electrical Demolition and T erm1113tion 1 I.l:>U.UU r1re Alarm txciuoea IClean up interim and t1nal 1 I 2,!>UU.00 I ::SUD I """ 1 Contractor General Coodrtloo SuperviSlO!l etc. 10.W'll> I uiotractor r ee 1U.W7o Sub Total Tenant Improvement Hard Cot Budget I \..O(mngency naro \,OSI 1U.W'lb Total Tenant lmorovernent Hard Cot Budoet l"foject Management 4.00% 1'ermtS 9.w'4 Ncrutecture and i::ng1neenng Wiii neea lull eiectncal drawing 10.00% Total Conceptual Tenant Improvement Etimate Note J111ce rumiture, uibiae hown on dra\\111q are to all be provided by Tenant $ $ $ $ $ $ :i. $ 1.!>UU.00 4.~u. oo.llu.00 1, ,tr.>U.00 3,ouu.00 3, j(jl.j , ,L:iu.UU 1, , ~ UU.00.l:iu.UU 2,!>00.UU.lb,u:io. w 3,0LJ:>.60 3,bU!>.bU 43, ,.lLO.f2 4/,:>~l.l.~ l 1, ,L!S.l.45 4,326.n 57, novioe 1 t:lectrical J tox connection per 4 new cubicle for a total of 3 j box ln=tion for the 10 new N.ihicie Floor c:nvenno "'"""t clean and tretch t:icitino car >et and PfOVio bae at new wall. ~e1)311lt 01 wce I t'ower Pole to Cubicle to be provided by furniture vendor I Power Pole to be ued and not floor connection to Office Furniture 1 txciuoes r 1re Alarm Horn or Strobe I Exclude Ada 'Mll1I I t:xclude New 1...arpet f U.. ll U.~ U.!:> U.4f U.U!:> :).LL U.!U U.O.> 6.ll~ 0.25 U.fi Baed on Conceptual Plan Dated 08l20l2014 by MWA Tioga Contruction EXHIBIT B1 PDX\ \156324\DHE\

13 ~~~~~~~~ FINANCIAL RESOLUTION R PAGE: 1OF3 FILE NUMBER: MEETING DATE: 07/21/ TE M NUMBER: 60 BY: 2016 FUND: The increae (decreae) in anticipated revenue, a follow: ORG ACCT PROG PR OJ/GR AMOUNT $188,658 ORGTOTAL $188,658 ORG ACCT PROG PR OJ/GR AMOUNT. ' ORGTOTAL $0 GRAND TOTAL ANTICIPATED REVENUE $188,658 The increae (decreae) i_n appropriation, a follow: ORG ACCT PROG 410l lliformational PR OJ/GR AMOUNT $188,658 ORGTOTAL $188,658 I I ORG ACCT PROG PROJ/GR AMOUNT ORGTOTAL GRAND TOTAL APPROPRIATION $0 $188,658

14 ~~~~~~~~ FINANCIAL RESOLUTION R PAGE: 2 OF 3 FILE NUMBER: MEETING DATE: 07/21/2015 ITEM NUMBER: 60 BY: 2016 FUND: The increae (decreae) in anticipated revenue, a follow: lnfomiational ORG ACCT PROG PR OJ/GR AMOUNT $94, $94,329 ORGTOTAL $188,658 I I ORG ACCT PROG PR OJ/GR AMOUNT ORGTOTAL $0 GRAND TOTAL ANTICIPATED REVENUE $188,658 The increae (decreae) in appropriation, a follow: ORG ACCT PROG PR OJ/GR AMOUNT $188,658 ORGTOTAL $188,658 I I ORG ACCT PROG PR OJ/GR AMOUNT ORGTOTAL GRAND TOTAL APPROPRIATION $0 $188,658

15 ~~~~~~~~~~~~ THE FOREGOING wa PASSED and ADOPTED by a majority vote of the Alameda County Board of Supervior thi 21t day of, July, 2015, to wit: AYES: Supervior Chan, Caron, Miley, Valle & Preident Haggerty 5 NOES: None EXCUSED: None PRESID~~ERVISORS File: ;._~~~~ ;;;;;.;...;;;...;;...;'~~~~~~ Agenda No.;...:...;.6...;..0 Document No: R F I certify that the foregoing i a correct copy of a Reolution adopted by the Board of Supervior, Alameda County, State of California ATTEST: v:\agendalfonnlreobak.doc