Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Third Amendment to Memorandum of Understanding for Exchange of Real Property Interests between the County, the Judicial Council of California and San Mateo County Superior Court.
RECOMMENDATION:
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Adopt a resolution authorizing the County Executive, or designee(s), to execute a Third Amendment to the Memorandum of Understanding with the Judicial Council of California and the Superior Court of California, San Mateo County, to extend the scheduled completion date for Hall of Justice tenant improvements to July 1, 2026, and increase the County’s contribution by $2,790,625 to $10,689,527.
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BACKGROUND:
In connection with development of County Office Building 3 (COB3) and improvements on the Northern Branch Campus in South San Francisco, the County, the Judicial Council of California (JCC), and the Superior Court of California, San Mateo County (Courts) executed a Memorandum of Understanding (MOU). The MOU concerned the County’s acquisition of the Traffic Court Annex in Redwood City as well as Courtroom O in the Northern Branch Jail Annex in exchange for 13,112 square feet of space in the Hall of Justice (HOJ) improved with two new courtrooms and an expanded court clerk’s office (HOJ Improvements). The MOU, which took effect November 6, 2018, was amended on April 1, 2019, and again on August 3, 2021.
The MOU calls for, among other things, the County to contribute $7,898,902 to the costs of the HOJ Improvements, the Courts to contribute $1,000,000, and the County to manage the project to completion by March 31, 2025.
The County, Courts, and JCC (the Parties) have determined that the cost of the HOJ Improvements will exceed the 2018 projections and revisions to the respective contributions and project schedule are appropriate.
DISCUSSION:
Upon completion of the schematic design phase for the HOJ Improvements, the architect provided an updated estimated project cost of $15,689,527, which includes a small amount for projected overtime. The scope to be completed includes the construction of two new courtrooms and associated judicial chambers and support offices, replacing the 2 courtrooms the court gave up facilitating construction of COB3 and the current and future North County campus improvements.
Pursuant to the revised MOU proposed by the Parties, the County’s maximum obligation for the project will be increased to $10,689,527, including an initial outlay of $800,000 that will be repaid by the Courts over four years. For their part, the Courts will contribute $5,000,000 to the improvements up front and then make four annual installment payments to the County of $200,000 each. Pursuant to the revised proposed MOU, the project completion date will also be extended to July 1, 2026.
The County Executive’s Office recommends approval of this third amendment to the MOU to facilitate the intention of the initial MOU. The County Attorney’s Office has reviewed and approved the resolution and the amendment to the MOU as to form.
EQUITY IMPACT:
The County is dedicated to ensuring equitable access to justice and housing. Equitable access to justice is promoted through this MOU by the addition to the HOJ of new courtrooms and an expanded court clerk’s office. Equitable access to housing is promoted through this MOU by the acquisition of the Courtroom O parcel in South San Francisco which can support a housing development serving vulnerable North County residents.
FISCAL IMPACT:
The County’s maximum fiscal obligation under the MOU is increased by $2,790,625 to $10,689,527, which amount will be partially offset in the future by four annual installment payments of $200,000 by the Court. The County’s contribution has been included the adopted FY 2024-25 budget.