COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager's Office

 

DATE:

December 26, 2002

BOARD MEETING DATE:

January 14, 2003

 

TO:

Honorable Board of Supervisors

FROM:

Paul T. Scannell, Assistant County Manager

SUBJECT:

Renewal and Extension of the Lease Agreement with the Midpeninsula Regional Open Space District for the Rolph Peak Communication Facility (Lease No. 1013)

 

Recommendation

Adopt a Resolution exercising the option to renew and extend the term of the lease agreement with the Midpeninsula Regional Open Space District for the Rolph Peak Communication Facility.

 

Background

Since 1975 the County has leased a site from the Midpeninsula Regional Open Space District for the Rolph Peak Communication Facility. Since 1994 the County has sublet portions of this facility in order to offset County costs.

The lease agreement expired on October 31, 2002. The lease agreement provides for two-five year options to renew the agreement. The Information Services Department has requested that the lease be renewed for one additional five-year term. Processing of the extension was delayed while the landlord investigated modifying the agreement to accommodate shared use of the facility for landlord's wireless equipment. Capacity of the facility was insufficient to meet the landlord's request.

 

Discussion

The options to renew, as set forth in the lease, are under the same terms and conditions except that the rent may be adjusted to a fair market rental rate. The monthly rental rate will increase from $22,419 to $25,000 per year, which is considered to be fair market rent. Exercising the option would extend the term of the agreement through October 31, 2007.

 

The Chief Information Officer concurs in this recommendation. County Counsel has reviewed the agreement and approved the resolution as to form.

 

Vision Alignment

Exercise of the option to extend the term keeps the commitment of responsive, effective and collaborative government and goal number 22: County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire County.

 

Fiscal Impact

The monthly rent will increase from $22,419 to $25,000 per year. The County sublets this facility to commercial users whose rent payments offset 100% of the County's fees.