Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Measure K Amendment to the Agreement with HIP Housing to complete capital improvements
RECOMMENDATION:
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Measure K: Adopt a resolution authorizing an amendment to the Grant Agreement with HIP Housing to complete necessary capital improvements, extending the term of the agreement by one year to January 27, 2027 with no change to the not-to-exceed amount, and authorizing the County Executive, or designee, to execute the amendment.
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BACKGROUND:
On January 28, 2025, the County and HIP Housing entered into a Measure K Grant Agreement (“Agreement”) to fund essential safety repairs and trauma-informed renovations at HIP Housing’s newly purchased building. Specific improvements included:
• Americans with Disabilities Act (ADA) accessible entrance at the 5th Avenue office frontage
• Downstairs accessible ADA, all gender restrooms
• Four trauma-informed designed meeting spaces, break area for staff, and reception area
• Capital improvements to the building including new heating, ventilation, and air conditioning system with upgraded electrical and plumbing systems, install cabling and low voltage wiring for internet and WIFI, and complete asbestos removal
The Measure K funds were intended to be combined with donations from foundations, private donors, and businesses to help meet a total fundraising goal of $2,200,000 for the specified work.
HIP Housing successfully leveraged the County’s $250,000 contribution and secured the additional funding needed to complete the renovations. Construction began in May 2025, using other funding sources first. All permitted renovations were completed in October 2025 without drawing on the Measure K funds.
Since moving into the new building, HIP Housing has identified additional essential capital improvement needs that were not included in the project’s original scope.
DISCUSSION:
HIP Housing has requested an amendment to the Agreement to reallocate the entire $250,000 in funding to address the new capital improvement needs and extend the term of the Agreement for an additional year. Specifically, HIP Housing seeks to use the funds to replace three exterior-facing entry and exit doors and to repair or replace the building’s inoperable elevator.
At the time the project was permitted, the City of San Mateo did not require replacement of the exterior doors or the elevator. However, the current exterior doors have significant gaps around the frames, creating energy inefficiencies and posing safety risks.
The elevator was also not required because the building is only two stories and all program services can be offered on the ADA-compliant ground floor. While services are located downstairs, many administrative and HIP Housing Board functions occur upstairs. Several HIP Housing Board members cannot access the Board room without the assistance of the elevator. At least one staff member recovering from an injury has been unable to reach their office for months. A working elevator is now essential to maintain a safe, healthy, and efficient work environment.
The estimated combined cost for both the door and elevator projects is $420,000. The $250,000 from in Measure K funds would be leveraged with an additional $150,000 from the City of San Mateo. Any remainder will come from private donors.
The proposed amendment would authorize the use of Measure K funds for purchasing and installing three exterior doors and for repairing or replacing the elevator. It would also extend the Agreement term from January 27, 2026 to January 27, 2027, to allow adequate time for completion of the elevator work.
Revised Budget
|
Item |
Budget |
|
Replacement and installation of three exterior doors |
$20,000 |
|
Repair/Replacement of elevator |
$230,000 |
|
Total |
$250,000 |
REVISED PERFORMANCE MEASURE:
|
Measure |
Target |
|
Replace and install three exterior doors |
Complete |
|
Repair or replace existing elevator |
Complete |
The County Attorney’s Office has reviewed and approved the amendment and resolution as to form.
COMMUNITY IMPACT:
Addressing these capital improvement needs will significantly enhance accessibility and safety within HIP Housing’s facility. Replacing the exterior doors will improve security and create a safer environment for residents, staff, and community members. Repairing or replacing the elevator will ensure that individuals with mobility limitations, including Board members, staff, clients, and visitors, have access to all areas of the building.
FISCAL IMPACT:
There is no fiscal impact to the County from this amendment to the Agreement. Sufficient Measure K funds are budgeted in the Non-Departmental Services’ FY 2025-2026 Adopted Budget and the balance of unspent funds will be rolled forward to the FY 2026-27 Adopted Budget to allow completion of the project as needed.