COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager's Office

DATE:

May 17, 2004

BOARD MEETING DATE:

June 8, 2004

TO:

Honorable Board of Supervisors

FROM:

Steve Alms, Manager, Real Property Services

SUBJECT:

Lease Agreement with HMB Stone Pine, LLC for Office Space at

80 Stone Pine, Suite 100 in Half Moon Bay for University of California Cooperative Extension (Lease No. 1267)

Recommendation

Adopt a Resolution authorizing the President of the Board of Supervisors to execute a Lease with HMB Stone Pine, LLC for office space at 80 Stone Pine, Suite 100, Half Moon Bay for use by the University of California Cooperative Extension ("UCCE").

Background

In 1957 the County and the University of California Regents entered a Memorandum of Understanding in which the County agreed to provide facilities and staffing in support of the UCCE Agriculture and Natural Resources program in the County. Since 1989 the County has leased approximately 2,400 square feet of office space at 625 Miramontes Avenue in Half Moon Bay for the that program. The County currently pays $4,800 per month ($2.00 per square foot) for the facility, which has been occupied on a month-to-month basis since January 2003. The current facility does not meet ADA requirements, and the rent exceeds the current budget of $4,000 per month . Real Property Services has located a facility that meets current ADA standards at a rent that is within budget.

Discussion

A three-year lease has been negotiated with HMB Stone Pine, LLC. Under the terms of the lease the County will pay monthly rent of $4,000 ($1.46 per rentable square foot) for approximately 2,730 square feet of office space.. The rent escalates 3% per year throughout the term, but the County may terminate the lease at any time after March 31, 2005 by giving ninety days written notice to the landlord. UC Extension have funds available for the expenses associated with the relocation, including telephone and data services.

The Director of the Environmental Services Agency concurs in this recommendation. County Counsel has reviewed and approved the agreement as to form.

Vision Alignment

The proposed lease agreement keeps the commitment of responsive, effective and collaborative government and goal number 20: Government decisions are based on careful consideration of future impact, rather than immediate gain. The lease contributes to this commitment and goal by providing an affordable and accessible facility in which UCCE can continue to provide services to the citizens of the County of San Mateo.

Fiscal Impact

UCCE has included rent for the facility in the proposed budget for the 2004/2005 fiscal year.