HBEX 12 / EHSD CALL CENTER March 7, 2013
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1 HBEX 12 / EHSD CALL CENTER March 7, MARINA WAY, 2500 BATES AVE., 1 LESSOR Marina Business Partners, LLC 88 / 12 2 SQUARE FEET 32,375 32,375 Marina Way provided a space plan based on 206 single occupancy workstations as described in the Minimum Requirements of the County's RFP. Bates Ave. assumed using the existing double occupancy cubicles, and did not provide a space plan. Marina Way's space plan estimated an office size of 32,375 square feet. County staff assumed the same square footage for both buildings for direct comparison. 3 LEASE TERM 36 mos. 36 mos. 4 OPTION PERIOD 36 mos. 36 mos. 5 COSTS 6 1) 3 YEAR RENT $1,915,305 $1,741,451 Rent for each building is based on a rate per square foot per month proposed by each property owner. Both rents are based on 32,375 sf. Marina Way proposed rent starting at $1.60 per square foot, with annual increases, and including all occupancy expenses, except gas and electricity. Bates Ave. proposed 3 mos. of free rent, then a rate of $1.63 per square foot that included all expenses, and stayed flat for the remaining 33 months. The previous report erroneously did not include Bates Ave.'s 3 mos. of free rent. The 3 mos. free rent is valued at 158, ) 3 YEAR OCCUPANCY EXPENSES $321,133 $0 Occupancy expenses include such things as utilities, janitorial, taxes, insurance, etc. The Marina Way occupancy expenses were estimated at $.25 psf w/ 3% annual increases. The Bates Ave. proposal included all occupancy expenses in the rent, with no additional expense to the County. 1
2 8 3) COST OF TENANT IMPROVEMENTS $210,913 $1,070,650 Marina Way proposed a Tenant Improvement Allowance of $960,566, and that the County/State pay for CAT 6 cabling, a "white noise" system, and additional security items (a total of $210,913). Bates Ave. initially proposed that the cost of any tenant improvements described in the County's Minimum Requirements, except for painting the entire suite and cleaning the carpet, would be an additional expense to County/State. On Mar 4, staff received an additional Bates Ave. proposal, which stated the County's cost of constructing the tenant improvements would be limited to $200,000, if the County agreed to use the workstations and cabling that existed in the suite. On Mar 6, staff received several other Bates Ave. proposals, which appeared to state the Lessor would pay for the installation of CAT 6 cabling to "each required workstation/office" if the County received written verification from the State that CAT 6 cabling is required, and other tenant improvements. The County has received that written verification from the State, and the cost of installing the new CAT 6 cabling, and the other work, which together is estimated to cost a total of $415,000, has been removed from the County's cost estimate. The Bates Ave. cost shown is the County's estimated cost of constructing the tenant improvements that were included in the County's Minimum Requirements, but were not included in the Bates proposal. The $415,000 of work included in the Bates Ave. proposals was removed from the County's total estimated cost. 9 4) COST OF REPAIR / MAINTENANCE $0 $0 Each property owner has proposed paying for the repair and maintenance of the Premises. 2
3 10 5) COST OF FURNITURE $0 * $992,347 The furniture cost is based on County's estimate, and includes new tables, chairs, etc. for all Conference and Training Rooms in the premises, and all new singleoccupancy workstations as required by the State. The Bates Ave. proposal assumes using the workstations that already exist in their building. Based on the State's requirements, the workstations at Bates Ave. have been determined to not meet standard requirements for this project. Since new cubicles will be needed at either location, the same cost figure was used for each building for direct comparison. The cost figure was also reduced from the previous report due to an over estimate by the furniture vendor. * On Mar 6, staff received a secondary proposal from the Marina Way lessor stating the City of Richmond would loan him the money for him to buy the furniture for County's use, and the County/State would no longer have to pay for it. 11 6) MINUS REAL ESTATE COMMISSIONS ($37,500) $0 The Marina Way proposal stated the amount of the County's real estate commission in its proposal. The Bates Ave. proposal did not state an amount, but said whatever amount was paid to the County would have to be re paid to the lessor if the County terminated the lease early. 12 TOTAL COSTS DURING LEASE TERM $2,409,851 $3,804,448 The estimated Total Costs During the Lease Term for the Marina Way site is $1,394,597 less than that of the Bates Ave. site. Most of that difference is due to the approx. $1.95 million that the Marina Way lessor contributed to the cost of the tenant improvements and the furniture, including the workstations specified in the County's Minimum Requirements. 13 CONTRIBUTIONS BY LESSORS 14 1) MONTHS OF FREE RENT 0 3 mos. worth $158, ) LESSOR'S TENANT IMPROVEMENT ALLOWANCE $960,566 $415,000 Marina Way did not propose any free rent; Bates Ave. proposed 3 mos. of free rent valued at $158,314. Marina Way proposed a TI Allowance of $29.67 per square foot, which meets the lessor's contractor's estimate for construction of the tenant improvements described in the County's Minimum Requirements. The Bates Ave. proposals included painting the entire suite, cleaning the carpet, removing the CAT 5E cable and installing CAT 6 cable throughout the premises, constructing a Main Point of Entry, and Training Rooms for the County. 3
4 16 3) LESSOR'S FURNITURE ALLOWANCE $992,347 $0 17 TOTAL LESSOR CONTRIBUTIONS $1,952,913 $573,314 The difference is $1,379,599. The Marina Way lessor proposes to buy all furniture specified by County. The Bates Ave. proposal included 6 private offices that are already furnished. All other furniture at the Bates Ave. site will have to be purchased at the County/State's expense. 18 OTHER INFORMATION 19 RENT DURING 3 YR. OPTION PERIOD $2,078,475 $2,016, CABLING / COST None CAT 5E Marina Way proposed rent during a renewal period with 3% annual increases in Rent. Bates Ave. proposed 3% annual increases during the option period. The State requires CAT 6 cabling in its Call Centers, including this one in Contra Costa County. Bates Ave. has CAT 5E cable in place. Marina Way does not have any cable in place. CAT 6 will have to be installed in either space, at additional expense. Bates Ave. has proposed installing CAT 6 cable and equipment to each workstation at a cost of $280,000. Marina Way proposed that the County/State would have to pay to install CAT 6 cabling, and estimated the cost to be $140, CUBICLES INCLUDED No No * * There are 398 cubicles in place in the Bates Ave. premises. However, based upon the State's requirement, County has deemed them to be unacceptable for use in this Call Center. New cubicles will therefore be required in each space. Marina Way has proposed adding cubicles that are different than those included in the County's Minimum Requirements. That type and manufacture of workstation will have to be evaluated. However, the County's estimated furniture cost, of which the Marina Way lessor has agreed to pay, includes the type and style of workstations included in the County's Minimum requirements. 22 OFFICES, TRAINING/CONFERENCE ROOMS Already constructed. There are 14 existing offices at Bates Ave.; 6 of those offices are furnished. The Marina Ave. space already has private offices, Training Rooms, and Conference Rooms that satisfy the County's Minimum Requirements. The Bates Ave. site has the 14 existing private offices, and one Conference Room that will need to be modified. The additional Training Rooms and a Conference Room described in the Minimum Requirements will have to be constructed. The Bates Ave. proposal includes that construction at the lessor's expense. 4
5 23 GENERATOR OR UNINTERRUPTIBLE POWER SUPPLY (UPS) Neither * Both * At the Marina Way location, there is a generator that serves the adjacent bldg. owned by the Lessor. At his expense, the lessor will run conduit from that generator to exclusively serve the County's space. The Marina Way lessor will also add a UPS, at his expense. There is both a generator and a UPS already on site at the Bates Ave. location. 24 MAIN POINT OF ENTRY (MPOE) Yes No A MPOE is in place at the Marina Way site. An MPOE exists at the Bates Ave. site, but it is located in the adjacent tenant's space, and the County would not have 24/7 unimpeded access to it. This is not acceptable to the County or to the State. A secondary proposal from the Bates Ave. lessor stated the lessor will construct a secondary MPOE in the County's suite for the County's exclusive use at his expense. 25 SOUND ATTENUATION SYSTEM No Yes A sound attenuation system will have to be added at the Marina Way premises at an additional expense. The cost of the sound attenuation system is estimated to cost $45,000, and is included in the County's Cost of TIs above. At the Bates Ave. location, the lessor has stated a sound attenuation system is in place. 26 SECURITY Yes Yes 27 CARPET / PAINT Good Poor There is 24/7 front entry security personnel in place at the Marina Way location. There is guard patrol after 6:00 PM at the Bates Ave. location. Carpet and paint is "like new" at the Marina Way location. Some touch up painting may be needed. New carpet and paint is needed at the Bates Ave. location, although cleaning the carpets may be adequate. 28 AMBIENT LIGHT Yes Yes According to the State: Industry best practices for Call Centers include well designed spaces with natural lighting to promote employee satisfaction and retention. To maintain consistency and ensure the best possible work setting for all Call Center staff, the County site should have features that are very similar to other State Call Centers, including abundant natural lighting. Ambient light at the Marina Way site is considered to be more abundant than at the Bates Ave. site. 5
6 29 PARKING ( /1,000 SF) NUMBER OF PARKING SPACES At Marina Way, parking will be a combination of spaces in front of the building, and in parking lots nearby that are controlled by the Marina Way lessor. At Bates Ave., all parking will be in the parking lot in front of the suite. 31 UNEMPLOYMENT RATE 13.30% 8.90% Source: State of California Employment Development Department (EDD) for Dec for each individual city. 32 NEAREST EHSD FACILITY 1 block 1 block 33 ACCESS TO PUBLIC TRANSPORTATION Approx..7 mi. fr. I 580; Bus stop 1/8 mi.; Approx. 1.8 mi fr. Rich BART; City will extend shuttle service fr. the Richmond and El Cerrito BART stations to bldg.; Bike/pedestrian access to/from SF Bay Trail. 1/2 mi fr Hwy 4; Approx. 1.5 mi fr Concord BART; Bus stop 1 blk PROXIMITY TO RESTAURANTS, CAFES, OR DELIS MISCELLANEOUS ISSUES NOTICED SINCE PREVIOUS REPORT Adequate Adequate 1) Interior lighting Excellent Good 2) Break areas / restrooms Adequate Adequate 6
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