COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager’s Office

DATE:

April 1, 2008

BOARD MEETING DATE:

April 22, 2008

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

4/5ths

TO:

Honorable Board of Supervisors

FROM:

Steve Alms, Manager, Real Property Division

SUBJECT:

San Carlos Airport Lease agreement with Bahram Abolmoluki DBA Sky Kitchen for a portion of the Airport Terminal Building at 620 Airport Drive, San Carlos. (Lease No. 5227)

RECOMMENDATION:

Adopt a resolution:

1. Authorizing execution of a Lease Agreement with Bahram Abolmoluki DBA Sky Kitchen of 1,050 square feet of space in the Airport Terminal Building at 620 Airport Drive, San Carlos, California, at an initial rate of $2,887.50 per month, for a term of five years from May 1, 2008 to April 30, 2013, with one option to extend for an additional five years, and

2. Authorizing the County Manager or his designee to execute notices, options and documents associated with the Lease including, but not limited to, extension or termination of the agreement under the terms set forth therein.

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government

Goal 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or gain.

The Lease Agreement contributes to this commitment by providing needed services to the public at the San Carlos Airport.

Performance Measure(s):

Measure

FY 2006-2007

Actual

FY 2007-2008

Target

Percent of customer survey respondents rating services good or better.

95%

90%

BACKGROUND:

Since 1983 Bahram Abolmoluki has leased space to operate the Sky Kitchen restaurant in the San Carlos Airport Terminal Building.

The Term of the current Lease expired on March 31, 2006 and the lease remains in effect under the holdover provision.

DISCUSSION:

Mr. Abolmoluki has a history of providing valuable services that are an integral part of the operation of the airport, and it is recommended that the County enter into a new lease agreement with him.

Real Property Services has negotiated a five-year lease agreement from May 1, 2008 to April 30, 2013, with one five-year option to extend the term on the same terms and conditions. The initial monthly rent of $2,887.50 is subject to a 3% annual increase and the tenant will pay a prorated share of utilities in addition to the monthly rent.

County Counsel has reviewed and approved the Amendment as to form. The Director of Public Works and Airport Manager concur with this recommendation.

FISCAL IMPACT:

The revenue for the initial year of $34,650 will be deposited into the Airport Enterprise Fund.