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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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County Manager's Office
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DATE:
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January 23, 2009
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BOARD MEETING DATE:
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February 10, 2009
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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Steve Alms, Manager, Real Property Services Division
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SUBJECT:
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Real Property Agreements with 1390 El Camino Real, LLC for
1) A Second Amendment to Lease of office space at 1390 El Camino Real, San Carlos, for the use of the Probation Department, and
2) A Lease of office space at 1390 El Camino Real, San Carlos, for the use of the Sheriff’s Office Jail Planning Unit.
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RECOMMENDATION:
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Adopt a resolution authorizing the President of the Board to concurrently execute
1) A Second Amendment to Lease Agreement with 1390 El Camino Real, LLC, of office space at 1390 El Camino Real, San Carlos, acknowledging the successor in interest to the landlord, amending the Term to month-to-month, amending the Premises to 1,795 square feet, and amending the monthly rent to $3,410.50, and
2) A three-year Lease with three options to extend for one year each with 1390 El Camino Real, LLC of 1,857 square feet of office space at 1390 El Camino Real, San Carlos, at an initial monthly rent of $3,528.30, and
Authorizing the County Manager or his designee to execute notices, options and documents associated with such Second Amendment and such Lease including, but not limited to, extension or termination of the agreements under the terms set forth therein.
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VISION ALIGNMENT:
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Commitment: Responsive, effective and collaborative government
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Goal 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain. The Amendment and Lease contribute to this commitment and goal by continuing to provide Probation a facility to provide needed services while negotiating a lease for another location, and providing a centrally located and affordable facility for the Jail Planning Unit.
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Performance Measure(s):
Real Property Services strives to maintain an average cost of leased facilities that compares favorably with the average asking rate for comparable facilities in the County. The rental rate for the leased areas is $1.90 per square foot per month, which compares favorably with the Countywide average asking rate of $3.36.
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Measure
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Lease - Actual
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Avg. Asking Rate
San Mateo County Q4-2008
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Monthly Rate
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$1.90
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$3.36
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BACKGROUND:
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The Probation Department leases the first floor of 1390 El Camino for a program serving at-risk youth. Probation is currently in negotiation to relocate the program to a more appropriate facility, and plans to vacate the premises upon completion of the negotiations. Probation has moved the administrative functions associated with the program to another Probation facility, and desires to reduce the size of the premises to the area used as classrooms. The area vacated by Probation’s administrative functions is sufficient to meet the current needs of the Sheriff’s Jail Planning Unit.
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The Sheriff’s Jail Planning Unit (JPU) was formed in 2007 to develop, plan and coordinate the construction of a new jail facility in San Mateo County. The JPU currently consists of three full-time staff, but anticipates significant expansion as the project advances toward the construction phase. The JPU expects to need space to accommodate a Public Works Project Manager, outside consultants and architects, and anticipates the need to host community groups and outreach meetings. The County’s communications infrastructure is in place at the facility, which will save time and cost otherwise necessary to connect a new location to the County system.
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DISCUSSION:
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Real Property Services has negotiated a Second Amendment to Lease, acknowledging the successor in interest to the landlord, amending the Term to month-to-month, amending the area of the Premises to 1,795 square feet, and amending the monthly rent to $3,410.50. The terms and conditions of the Lease are otherwise unchanged.
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Real Property Services has also negotiated a new, three-year Lease with 1390 El Camino Real, LLC of 1,857 square feet of office space at 1390 El Camino Real, San Carlos, at an initial monthly rent of $3,528.30. The initial term of the Lease, February 10, 2009 to January 31, 2012, is subject to the County’s right to extend for three additional terms of one year each. The base rent escalates 3% annually.
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Improvements needed to bring the facility into compliance with current ADA requirements are identified in the County’s transition plan. As a condition of the Lease, the landlord has agreed to make those improvements at its sole cost within six months of commencement of the Lease.
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County Counsel has reviewed and approved the Amendment and Lease as to form. The Interim Chief Probation Officer and Sheriff concur with this recommendation.
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FISCAL IMPACT:
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Rent for the amendment of the Lease for the Probation Department and the Lease for the Sheriff’s Jail Planning Unit is included in the adopted budgets of the respective organizations for Fiscal Year 2008-2009.
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