COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager's Office

DATE:

November 4, 2002

BOARD MEETING DATE:

December 3, 2002

TO:

Honorable Board of Supervisors

FROM:

Paul T. Scannell, Assistant County Manager

SUBJECT:

Termination of Lease Agreement for the use of Unimproved Land for Parking at the Fair Oaks Sewer Maintenance Property with iPrint Technologies, Inc. dba iPrint.com (Lease No. 5278)

Recommendation

Adopt a Resolution authorizing the termination of a Lease Agreement with iPrint Technologies, Inc. dba iPrint.com for the lease of unimproved land for parking on Veterans Boulevard in Redwood City.

Background

Since October of 2000 iPrint.com has leased a portion of unimproved land at the Fair Oaks Sewer Maintenance property on Veterans Boulevard in Redwood City. iPrint improved the property as paved and landscaped parking at a cost of approximately $250,000. The current agreement is scheduled to expire on October 31, 2005.

Discussion

Due to financial difficulties iPrint.com made an assignment for the benefit of creditors and has requested termination of the agreement effective September 30, 2002.

Rather than risk having the asset tied up in bankruptcy, it is in the best interest of the County to terminate the agreement.

The Director of Public Works concurs in this recommendation.

Vision Alignment

The proposed termination keeps the commitment of responsive, effective and collaborative government and goal number 20: Government decisions are based on care consideration of future impact, rather than temporary relief or gain.

Fiscal Impact

The lost revenue for the remainder of the term is approximately $55,500. The cost to collect this revenue could exceed amount collected.