December 18, 2001

The Honorable Board of Supervisors
County of Los Angeles
383 Kenneth Hahn Hall of Administration
500 West Temple Street
Los Angeles, CA 90012

FIVE YEAR OPTION TO RENEW LEASE NO. 64490
DEPARTMENT OF CHILDREN AND FAMILY SERVICES
5767 WEST CENTURY BOULEVARD, LOS ANGELES
(SECOND) (3-VOTES)

IT IS RECOMMENDED THAT YOUR BOARD:

1. Approve and instruct the Chairman to exercise the option to extend the current lease for an additional five years with Decron Properties Corporation (Lessor) for 27,000 rentable square feet of office space at 5767 West Century Boulevard, Los  Angeles, for the Department of Children and Family Services (DCFS), at an annual cost of $612,360, which is approximately 87 percent subvened by State and Federal funding.

2. Find that this lease is exempt from the California Environmental Quality Act (CEQA) pursuant to Class 1, Section r, of the Environmental Document Reporting Procedures and Guidelines adopted by your Board on November 17, 1987, and Section 15061 (b) (3) of the State CEQA Guidelines.

3. Approve the project and authorize the Chief Administrative Office (CAO) and DCFS to implement the project.

PURPOSE/JUSTIFICATION OF RECOMMENDED ACTION

The proposed action is the exercise of the option to renew an existing lease under the same terms and conditions of the agreement including the ability to cancel the lease term on six months prior written notice. The facility houses 246 staff of the DCFS Child Welfare and Family Section.

· This will allow DCFS to continue to house its Child Welfare and Family Section at the subject facility for up to five years commencing January 1, 2002.

· The facility provides continued office space for DCFS staff enabling them to offer direct service programs to clients in this service area.

· DCFS has requested that the facility be retained until larger space can be provided in the Service Planning Area 6 (SPA 6).

Implementation of Strategic Plan Goals

The Countywide Strategic Plan directs that we invest in public infrastructure, in order to strengthen the County's fiscal capacity. The lease of property supports this strategy by complying with the Strategic Asset Management Principles (Goal 4, Strategy 2, Objective 2). In this case, we are renewing space for DCFS in order to maximize Federal and State funding by housing subvened programs in leased space, as further outlined in Attachment A.

FISCAL IMPACT/FINANCING

The annual cost of this lease renewal will initially be $612,360.

5767 West Century Blvd., Los Angeles

Existing Lease

Proposed Renewal

Area Term Annual Base Rent TI Allowance included in Base Rent Additional TI Allowance (Actual) Annual Rent Option to Extend Cancellation Parking (included in Base Rent)

27,000 square feet 10 years $482,760($17.88/sq. ft.) $540,000($20/sq. ft.) $810,000($30/sq. ft.) $543,300($20.12/sq. ft/) one (5 year term) Anytime on 180 days prior notice 210 spaces

27,000 square feet 5 years $612,360($22.68/sq. ft.) none none $612,360($22.68/sq. ft.) none Anytime on 180 days prior notice 210 spaces

Sufficient funding for the proposed lease is included in the 2001-02 Rent Expense Budget and will be charged back to DCFS. Sufficient funding is available in the 2001-02 DCFS budget to cover the projected lease costs. All costs associated with the proposed lease are 87 percent offset by Federal and State funds.

The monthly base rent remains fixed for the first 30 months and will increase by 9 percent for the remaining 30 months of the lease term at an annual cost of $683,004.

The operating expense component of the monthly base rent is subject to an annual increase capped at 5.5 percent of the 2002 base year cost.

FACTS AND PROVISIONS/LEGAL REQUIREMENTS

The component programs provide a comprehensive child protection system of prevention, preservation and permanency to ensure that children grow up safe, physically and emotionally healthy, educated and in permanent homes. The premises area has been occupied since January 1, 1991 by the Child Welfare and Family Section.

The proposed five year renewal option provides 27,000 rentable square feet of office space and 210 parking spaces and contains the following provisions:

· Full Service Gross lease, whereby Lessor pays for all operating costs associated with the County's occupancy.

· The Lessor will provide 210 parking spaces included in the rental rate which is sufficient to meet the parking needs of staff.

· A cancellation provision that allows the County the right to cancel at any time on 180 days prior written notice.

CAO Real Estate staff conducted a survey of the Second District boundaries to determine the availability of comparable and more economical sites. Staff was unable to identify any sites in the surveyed area that could accommodate this requirement more economically. Attachment "B" shows all County owned or leased facilities in the proximity of those boundaries, and there are no County owned or leased facilities available for this program.

Based upon a survey of similar properties in the specified area, staff has determined that the base rental range, including parking is between $22.68 and $26 per rentable square foot. Thus, the base annual rental rate of $22.68 provided in the proposed lease represents the low end of the range of market rates.

The Department of Public Works inspected this facility for seismic safety and has no objection to the continued occupancy of the premises by the County.

A child care center was not considered at this site since this program is identified for consolidation into the SPA 6 development project which will incorporate a child care center as part of the project design.

LEGAL/NEGATIVE DECLARATION/ENVIRONMENTAL IMPACT REPORT

The CAO has made an initial study of environmental factors and has concluded that this project is exempt from CEQA pursuant to Class 1, Section r, of the Environmental Document Reporting Procedures and Guidelines adopted by the Board on November 17, 1987, and Section (b) of the State CEQA Guidelines.

IMPACT ON CURRENT SERVICES (OR PROJECTS)

It is the finding of the CAO that the proposed lease renewal is in the best interests of the County and will provide the necessary space requirements, for the immediate future. In accordance with your Board policy on the housing of any County offices or activities, DCFS concurs in the lease recommendation.

CONCLUSION

It is requested that the Executive Officer, Board of Supervisors return two originals of the certified copies of the Minute Order and the adopted, stamped Board letter to the CAO Real Estate Division at 222 South Hill Street, 4^th Floor, Los Angeles, CA 90012.

Respectfully submitted,

DAVID E. JANSSEN
Chief Administrative Officer

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Attachments (2)

c: County Counsel
Auditor-Controller
Department of Children and Family Services

ATTACHMENT A DEPARTMENT OF CHILDREN AND FAMILY SERVICES 5767 WEST CENTURY BOULEVARD, LOS ANGELES Asset Management Principles Compliance Form^1
1. Occupancy							YES	NO	NA
	A	Does lease consolidate administrative functions?^2							X
	B	Does lease co-locate with other Department functions to better serve clients?^2 Program could co-locate in the future when new space is available.						X
	C	Does this lease centralize business support functions?^2							X
	D	Does lease meet the guideline of 200 sf of space per person?^2 (1/110)					X
2. Capital
	A	Should program be in leased space to maximize State/Federal funding?					X
	B	If not, is this a long term County program?							X
	C	Is it a net County cost (NCC) program? List % NCC				13%		X
	D	If yes to 2 B or C; capital lease or operating lease with an option ?							X
	E	If no, are there any suitable County owned facilities available?							X
	F	If yes, why is lease being recommended over occupancy in County owned space?							X
	G	Is Building Description Report attached as "Attachment B"?^2					X
	H	Was build to suit or capital project considered?^2 DCFS has requested relocating as part of the SPA 6 project. Exercising of the option allows the County to continue its current occupancy until new space is available. The existing lease includes the ability to cancel the lease anytime on six (6) months prior written notice.						X
3. Portfolio Management
	A	Did department utilize CAO Space Request Evaluation(SRE)?^2					X
	B	Was the space need justified?					X
	C	If a renewal lease, was co-location with other County departments considered?							X
	D	Why was this program not co-located?
			1.		The program clientele requires a "stand alone" facility.
			2.	X	No suitable County occupied properties in project area.
			3.	X	No County owned facilities available for the project
			4.		Could not get City clearance or approval
			5.		The Program is being co-located
	E	Is lease a full service lease?^2 ^Net of separately metered electricity.Size of requirement is not conducive					X
	F	Has growth projection been considered in space request?					X
	G	Has the Dept. of Public Works completed seismic review/approval? Built 1988.					X
		^1As approved by the Board of Supervisors 11/17/98 Please BOLD any written responses
		^2If not, why not?

ATTACHMENT B

DEPARTMENT OF CHILDREN AND FAMILY SERVICES
SPACE SEARCH WITHIN SECOND SUPERVISORIAL DISTRICT

LACO	FACILITY NAME	ADDRESS	SQUARE FEET GROSS	SQUARE FEET NET	OWNER SHIP	SQUARE FEET AVAILABLE
A424	DPSS-EQUITABLE PLAZA BUILDING	3435 WILSHIRE BLVD, LOS ANGELES 90010	65871	62577	LEASED	NONE
A336	CHILD SUPPORT SERVICES-WILSHIRE CENTRE BLDG	3055 WILSHIRE BLVD, LOS ANGELES 90010	17000	16150	LEASED	NONE
A336	CHILD SUPPORT SERVICES-WILSHIRE CENTRE BLDG	3055 WILSHIRE BLVD, LOS ANGELES 90010	7755	7115	LEASED	NONE
A408	DC&FS-THE U S BORAX BUILDING	3075 WILSHIRE BLVD, LOS ANGELES 90010	132488	105568	LEASED	NONE
A160	MENTAL HEALTH-HEADQUARTERS OFFICE ANNEX	3160 W 6TH ST, LOS ANGELES 90020	60800	28372	LEASED	NONE
X317	DCSS-LE SAGE COMPLEX 4 STORY BUILDING	3175 W 6TH ST, LOS ANGELES 90020	52230	42341	OWNED	NONE
A413	HUMAN RESOURCES-WILSHIRE SQUARE TWO BUILDING	3333 WILSHIRE BLVD, LOS ANGELES 90010-4109	31500	29925	LEASED	NONE
A413	HUMAN RESOURCES-WILSHIRE SQUARE TWO BUILDING	3333 WILSHIRE BLVD, LOS ANGELES 90010-4109	9034	7915	LEASED	NONE
A413	HUMAN RESOURCES-WILSHIRE SQUARE TWO BUILDING	3333 WILSHIRE BLVD, LOS ANGELES 90010-4109	21945	19750	LEASED	NONE
A425	DC&FS-DEPARTMENTAL HEADQUARTERS BUILDING	425 SHATTO PL, LOS ANGELES 90020	67263	63356	LEASED	NONE
Y193	PARKS & RECREATION-HEADQUARTERS BUILDING	433 S VERMONT AVE, LOS ANGELES 90020	31862	18221	OWNED	NONE
C500	PROBATION-PRETRIAL SERVICES/BAIL DEVIATION	500 SHATTO PL SUITE 600 SUITE 610 AND SUITE 620, LOS ANGELES 90020	6596	5094	LEASED	NONE
A369	DC&FS-PROCUREMENT AND SPECIAL SERVICES OFFICE	501 SHATTO PL, LOS ANGELES 90020	7250	7250	LEASED	NONE
X510	DHS-LESAGE COMPLEX 2 STORY BUILDING	510 S VERMONT AVE, LOS ANGELES 90020	31540	24840	OWNED	NONE
X532	DCSS-LE SAGE COMPLEX 1 STORY BUILDING	532 S VERMONT AVE, LOS ANGELES 90020	14126	10314	OWNED	NONE
X550	MENTAL HEALTH-LE SAGE COMPLEX TOWER	550 S VERMONT AVE, LOS ANGELES 90020-1991	148085	132610	OWNED	NONE
B695	DC&FS-ADOPTIONS DIVISION OFFICES	695 S VERMONT AVE, LOS ANGELES 90010	71370	58635	LEASED	NONE
A600	CENTRAL CIVIL WEST COURTHOUSE	600 S COMMONWEALTH AVE, LOS ANGELES 90005	124914	80683	LEASED	NONE
A600	CENTRAL CIVIL WEST COURTHOUSE	600 S COMMONWEALTH AVE, LOS ANGELES 90005	7603	7223	LEASED	NONE
A600	CENTRAL CIVIL WEST COURTHOUSE	600 S COMMONWEALTH AVE, LOS ANGELES 90005	16454	15796	LEASED	NONE
A600	CENTRAL CIVIL WEST COURTHOUSE	600 S COMMONWEALTH AVE, LOS ANGELES 90005	53180	46201	LEASED	NONE
A480	PKS & REC-CAPITAL PROJECTS/PROJECT MGT OFFICE	680 WILSHIRE PL, LOS ANGELES 90005	6000	5400	LEASED	NONE
3776	CULVER CITY COURTHOUSE	4130 OVERLAND AVE, CULVER CITY 90230	21568	11543	OWNED	NONE
A700	ASSESSOR-FORMER CULVER CITY REGIONAL OFFICE	4909 OVERLAND AVE, CULVER CITY 90230	17446	11899	OWNED	NONE
5708	PUBLIC LIBRARY-JULIAN DIXON LIBRARY	4975 OVERLAND AVE, CULVER CITY 90230	21406	17364	OWNED	NONE
A422	DHS-WEST AREA ENVIRONMENTAL HEALTH SERVICES	6053 BRISTOL PKWY (PARK PLACE BUSINESS PARK), CULVER CITY 90230-6601	12000	10800	LEASED	NONE
A430	ASSESSOR-WEST DISTRICT OFFICE	6120 BRISTOL PKWY FOX HILLS BUSINESS PARK, CULVER CITY 90230	30507	27456	LEASED	NONE
A411	DC&FS-GRANDMA'S HOUSE/ALUMNI DROP-IN CENTER	5601 W SLAUSON AVE, CULVER CITY 90230	5973	5973	LEASED	NONE
A437	DC&FS-REGION II OFFICE - WATERIDGE BUILDING	5100 W GOLDLEAF CIR BUILDING C, LOS ANGELES 90056	52370	46086	LEASED	NONE
6304	PROBATION-CRENSHAW AREA OFFICE	3606 W EXPOSITION BLVD, LOS ANGELES 90016	19112	14020	OWNED	NONE
6722	PUBLIC LIBRARY-VIEW PARK LIBRARY	3854 W 54TH ST, LOS ANGELES 90043	6983	6130	OWNED	NONE
A436	DPSS-EXPOSITION PARK FAMILY SERVICE CENTER	3833 S VERMONT AVE, LOS ANGELES 90037	130000	110500	LEASED	NONE
Y150	DPSS-EXPOSITION PARK AP DISTRICT OFFICE	3965 S VERMONT AVE, LOS ANGELES 90037	66484	46912	OWNED	NONE
5274	AVALON-CARVER SERVICE CENTER	4920 S AVALON BLVD, LOS ANGELES 90011	26822	16647	OWNED	NONE
Y425	PUBLIC LIBRARY-FLORENCE LIBRARY	1610 E FLORENCE AVE, LOS ANGELES 90001	5124	4448	OWNED	NONE
A061	DC&FS-REGION VI CENTURY SERVICES OFFICE	5767 W CENTURY BLVD BUILDING 2, WESTCHESTER 90045	27000	20955	LEASED	NONE
A378	DPSS-AIRPORT/WESTSIDE GAIN REGION VIII OFFICE	5200 W CENTURY BLVD, WESTCHESTER 90045	50147	47640	LEASED	NONE
X301	LOS ANGELES AIRPORT COURTHOUSE	11701 S LA CIENEGA BLVD (PACIFIC CONCOURSE DR), WESTCHESTER 90045	292000	151981	FINANCED	NONE
6330	INGLEWOOD COURTHOUSE	ONE E REGENT ST, INGLEWOOD 90301	210648	82279	FINANCED	NONE
3394	INGLEWOOD JUVENILE COURTHOUSE	110 E REGENT ST, INGLEWOOD 90301	21539	12024	OWNED	NONE
A338	DC&FS-REGION VI HAWTHORNE SERVICES OFFICE	11539 S HAWTHORNE BLVD, HAWTHORNE 90250	31832	27057	LEASED	NONE
B520	DPSS-SOUTHWEST FAMILY AP DISTRICT OFFICE	923 E REDONDO BLVD, INGLEWOOD 90302	40000	27898	LEASED	NONE
5374	PUBLIC LIBRARY-WOODCREST LIBRARY	1340 W 106TH ST, LOS ANGELES 90044	7254	5895	OWNED	NONE
T063	DPSS-SOUTH COUNTY GAIN SATELLITE OFFICE	1326 T W IMPERIAL HWY, LOS ANGELES 90044	10080	9072	LEASED	NONE
A085	DPSS-SOUTHWEST SPEC DIST/ PROBATION-CENTINELA	1326 W IMPERIAL HWY, LOS ANGELES 90044	153986	127700	LEASED	NONE
B995	DAVID V KENYON JUVENILE JUSTICE CENTER	7625 S CENTRAL AVE, LOS ANGELES 90001	18108	11735	OWNED	NONE
6400	DCSS-FLORENCE / FIRESTONE SERVICE CENTER	7807 S COMPTON AVE, LOS ANGELES 90001	15928	8706	OWNED	NONE
5721	DPSS-SOUTH CENTRAL AP DISTRICT OFFICE	10728 S CENTRAL AVE, LOS ANGELES 90002	51991	32463	OWNED	NONE
Y861	ML KING-PLANT MANAGEMENT BUILDING	12021 S WILMINGTON AVE, LOS ANGELES 90059	16000	14400	OWNED	NONE
T014	ML KING-TRAILER G (FAMILY PRACTICE CTR-UNUSD)	1651 E 120TH ST, LOS ANGELES 90059	5040	4536	PERMIT	4536
X349	LYNWOOD REGIONAL JUSTICE CENTER COURTHOUSE	11701 S ALAMEDA ST, LYNWOOD 90262	62078	53480	FINANCED	NONE
X351	CENTURY DETENTION-DETENTION ADMNISTRATION	11705 S ALAMEDA ST, LYNWOOD 90262	20706	17600	FINANCED	NONE
6723	PUBLIC LIBRARY-LYNWOOD LIBRARY	11320 BULLIS RD, LYNWOOD 90262	11722	10396	OWNED	NONE
B320	PUBLIC LIBRARY-WISEBURN LIBRARY	5335 W 135TH ST, HAWTHORNE 90250	5088	4331	LEASED	NONE
4704	PUBLIC LIBRARY-HAWTHORNE LIBRARY	12700 S GREVILLEA AVE, HAWTHORNE 90250	16949	16174	OWNED	NONE
6721	PUBLIC LIBRARY-MASAO W SATOW LIBRARY	14433 S CRENSHAW BLVD, GARDENA 90249	6639	5884	OWNED	NONE
C112	DCSS-ASIAN SERVICE CENTER	14112 S KINGSLEY DR, GARDENA 90249	16180	11420	LEASED	NONE
5161	PUBLIC LIBRARY-GARDENA/MAYME DEAR LIBRARY	1731 W GARDENA BLVD, GARDENA 90247	14122	11534	OWNED	NONE
6319	PUBLIC LIBRARY-A C BILBREW LIBRARY	150 E EL SEGUNDO BLVD, LOS ANGELES 90061	21843	18287	OWNED	NONE
6465	DCSS-WILLOWBROOK SENIOR CENTER	12915 S JARVIS AVE, LOS ANGELES 90061	12858	8670	OWNED	NONE
6420	COMPTON COURTHOUSE	200 W COMPTON BLVD, COMPTON 90220	576467	205939	FINANCED	NONE
5982	PUBLIC LIBRARY-COMPTON LIBRARY	240 W COMPTON BLVD, COMPTON 90220	43842	15830	OWNED	NONE
X169	DPSS-COMPTON AP DISTRICT OFFICE	211 E ALONDRA BLVD, COMPTON 90220	48135	38777	OWNED	NONE
C600	DPSS-SOUTH FAMILY AP/SPECIAL DISTRICT OFFICES	17600 A/B S SANTA FE AVE, RANCHO DOMINGUEZ 90221	133000	103324	LEASED	NONE
A620	PUBLIC LIBRARY-EAST RANCHO DOMINGUEZ LIBRARY	4205 E COMPTON BLVD, EAST COMPTON 90221	5000	4529	LEASED	NONE
2063	HARBOR-REI EMERGENCY MEDICINE ADMIN BLDG N-14	1124 W CARSON ST, TORRANCE 90502	11802	8829	OWNED	NONE
A074	CHILD SUPPORT SERVICES-DIVISION V HDQUARTERS	20221 HAMILTON ST, TORRANCE 90502-1321	47000	37984	LEASED	NONE
Y737	HARBOR-AF PARLOW HEALTH LIBRARY	1000 W CARSON ST, TORRANCE 90502	22846	20003	OWNED	NONE
T531	HARBOR-PATIENT FINANCIAL SERVICES 3-SOUTH	1000 W CARSON ST, TORRANCE 90502	12240	7713	OWNED	NONE
5861	PUBLIC LIBRARY-CARSON REGIONAL LIBRARY	151 E CARSON ST, CARSON 90745	33112	27001	OWNED	NONE
6087	PUBLIC LIBRARY-VICTORIA PARK LIBRARY	17906 S AVALON BLVD, CARSON 90746	5024	4084	OWNED	NONE
A959	DPSS-PARAMOUNT AP DISTRICT/GAIN PROGRAM REG V	2959 E VICTORIA ST, RANCHO DOMINGUEZ 90221	54000	44280	LEASED	NONE
A020	SHERIFF-FIELD OPERATIONS REGION II	3010 E VICTORIA ST, RANCHO DOMINGUEZ 90221	14040	10668	LEASED	NONE