|
|
|
|
|
|
COUNTY OF SAN MATEO
Inter-Departmental Correspondence
|
County Manager's Office
|
|
|
DATE:
|
April 7, 2009
|
BOARD MEETING DATE:
|
April 28, 2009
|
SPECIAL NOTICE/HEARING:
|
None
|
VOTE REQUIRED:
|
Majority
|
|
|
TO:
|
Honorable Board of Supervisors
|
FROM:
|
Steve Alms, Manager, Real Property Services Division
|
SUBJECT:
|
Lease Agreement with San Bruno Office Associates, LLC,
a Colorado limited liability company, of an office building at 881-883 Sneath Lane, San Bruno for the Health System
(Lease No. 1290)
|
|
|
RECOMMENDATION:
|
Adopt a resolution authorizing and directing:
1) The President of the Board to execute a Lease Agreement with San Bruno Office Associates, LLC of an office space at 881-883 Sneath Lane, San Bruno, at an initial monthly rent of $4,036 for a term of five years with one option to extend for an additional five years, and
2) The County Manager or his designee to execute any and all notices, options, extensions, terminations and documents in connection with the Lease Agreement.
|
|
|
VISION ALIGNMENT:
|
Commitment: Ensure basic health and safety for all.
|
|
|
Goal(s): Goal 7. Maintain and enhance the public safety of all residents and visitors.
|
|
|
The Agreement contributes to this goal by allowing the Agriculture Commissioner/ Sealer Program of the Community Health Department (the Program) to operate more efficiently in providing services at the San Francisco International Airport terminals and throughout the County.
|
|
|
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 Sneath Lane lease is on a full service basis, which includes in the rent the base year taxes, utilities and operating expenses. The rate compares favorably with the average asking rate of $2.84 as reported for the first quarter of 2009.
|
Measure
|
Lease - Actual
|
Avg. Asking Rate
San Mateo County Q1-2009
|
Monthly Rate
|
$1.60 (full service)
|
$2.84
|
|
|
BACKGROUND:
|
The Program has a longstanding lease of 317 square feet at the Golden Gate Produce Terminal. In 1999, an additional 431 square feet was leased. This space is substandard and will be relinquished after relocation. The Terminal Court office space is utilized as the North County field office to provide agricultural and weights and measures inspection services.
|
|
|
The new lease represents the culmination of a plan to relocate staff to suitable office space within close proximity to San Francisco International Airport terminals. The resulting agreement enables the Program to accomplish its mission for the next decade.
|
|
|
DISCUSSION:
|
Real Property Services has negotiated a new lease at 881-883 Sneath Lane at a monthly rate of $1.60 per square foot, which results in monthly rent of $4,036.00. The base rent remains flat for the first five year period and will be adjusted for the extended term to equal ninety-five percent of the prevailing market rate for comparable space. The current monthly rental rate for the space to be relinquished is approximately $.95 per square foot resulting in a net rent increase of $3,626.55 per month.
|
|
|
The landlord will complete improvements to the facility at its sole cost. Those improvements include extensive renovation of the restrooms, new carpet and paint throughout the premises, and compliance with all requirements of the Americans With Disabilities Act as identified in a survey completed by the County’s ADA Compliance Committee.
|
|
|
County Counsel has reviewed and approved the Agreement as to form. The Director of the Health System and the ADA Compliance Committee concur in this recommendation.
|
|
|
FISCAL IMPACT:
|
The Agriculture Commissioner/Sealer Program of Community Health within the Health System has a fund balance in their adopted Fiscal Year 2008/2009 budget that will be used to pay the additional rent of approximately $7,300. Annual rent of $48,432 has been budgeted in the Fiscal Year 2009/2010 recommended budget.
|
|
|