COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager’s Office

DATE:

June 14, 2010

BOARD MEETING DATE:

June 29, 2010

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Steve Alms, Manager, Real Property Division

SUBJECT:

First Amendment to Lease Agreement with Cornerstone Properties I, LLC, a California Limited Liability Company, of office space at 1730 South Amphlett Boulevard, San Mateo, California (Lease No. 1274)

RECOMMENDATION:

Adopt a resolution authorizing the:

1. President of the Board to execute a First Amendment to Lease Agreement with Cornerstone Properties I, LLC, a California Limited Liability Company, of 3,924 square feet of office space at 1730 South Amphlett Boulevard, San Mateo, extending the term through June 30, 2013 with two options to extend the term for one year each and keeping the base rent of $6,556.00 per month through June 30, 2011 with annual increases of 3% each year of the term thereafter, and

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

BACKGROUND:

Since 2006, the County has occupied approximately 3,924 rentable square feet of general office space at 1730 South Amphlett Boulevard, Suite 310, San Mateo, for the use of the Sheriff’s Office. The Lease expires on June 30, 2010, and the County has four options to extend the term for one additional year each. The current base rent is $6,556.00 per month with annual increases of 3%. The County and Landlord desire to amend the lease to extend the term and modify the base rent.

DISCUSSION:

Real Property Services has prepared a First Amendment to Lease Agreement which extends the term of the Lease for three years to June 30, 2013 with two options to extend the term for one year each, and sets the base rent at $6,556.00 per month through June 30, 2011 with 3% annual increases each year of the term thereafter, and is otherwise under the terms and conditions set forth in the Lease.

County Counsel has reviewed and approved the First Amendment and Resolution as to form. The Sheriff concurs in this recommendation.

Approval of this Amendment contributes to the Shared Vision 2025 outcome of a Healthy Community by promoting safe neighborhoods and maintaining a centrally located facility for the Sheriff’s Office so that it can conduct operations in an efficient and timely manner 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 initial rental rate for the leased area is $1.67 per square foot per month, which compares favorably with the Countywide average asking rate of $2.60 per square foot per month.

Measure

FY 2010-11
Actual

Avg. Asking Rate

San Mateo County

Q1-2010

Monthly Rate:

$1.67

$2.60

FISCAL IMPACT:

The initial rent of $6,556.00 per month is included in the recommended FY 2010-11 budget of the Sheriff’s Office.