Unfortunately, I don't have any lounge recommendations for you in that area. There are some in the overall SF Bay area, but they are spread out and sporadic. The high taxes and growing anti-tobacco sentiment (with stricter laws) have driven many out of business or to eliminate their smoking areas during the past 20 years.
As far as travel, you are very safe in 99% of the South Bay. You are far more likely to get into situations with aggressive / stupid drivers than get mugged.