COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager’s Office

DATE:

November 29, 2010

BOARD MEETING DATE:

December 14, 2010

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

4/5ths

TO:

Honorable Board of Supervisors

FROM:

Steve Alms, Manager, Real Property Division

SUBJECT:

Lease/Concession Agreement with Three Zero Ventures, Inc. of a portion of the Airport Terminal Building at 9850 Cabrillo Highway North, Half Moon Bay. (Lease No. 5323)

RECOMMENDATION:

Adopt a Resolution authorizing the:

1. President of the Board of Supervisors to execute a Lease/Concession Agreement with Three Zero Ventures, Inc of a portion of the Airport Terminal Building at 9850 Cabrillo Highway North, Half Moon Bay, California, at an initial rate of $2,371.00 per month and an initial utility fee of $1,250.00 per month, for a term of five years from January 1, 2011 to December 31, 2015, with one option to extend for an additional five years, and

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

BACKGROUND:

Since 1994, Three Zero Ventures, Inc (“Three Zero”) has operated the Three Zero Café in a portion of the Half Moon Bay Airport Terminal Building. Under the terms of the current agreement, the restaurant has been available for evening meetings held by the County, local non-profits and local government groups. This arrangement has resulted in security concerns for Three Zero. Since October 2004, Three Zero has operated on a month-to-month basis in accordance with the holdover provision of the current agreement. The County and Three Zero wish to enter into a new long-term Agreement.

DISCUSSION:

Real Property Services has negotiated a new Lease/Concession Agreement with Three Zero of a 980 square foot portion of the Half Moon Bay airport terminal building for a term of five years, with one option to extend for an additional five years. In addition, Three Zero will have non-exclusive use of the lobby, restroom and outdoor seating area. The initial rate of $2,371.00 per month is subject to annual increases of 3%. Three Zero will pay $1,250.00 per month for utilities, which rate is subject to adjustment based on actual usage. Three Zero will be responsible for janitorial services in the lobby, restroom and outdoor seating area, and for landscaping services for the exterior of the terminal building.

In recognition of the security concerns resulting from the current arrangement for scheduling evening meetings, under the terms of the new agreement evening meetings will be considered on a case-by-case basis at the discretion of Three Zero. The groups who have historically used the space in the evening have been contacted and notified of this change.

County Counsel has reviewed and approved the Agreement and Resolution as to form. The Director of Public Works concurs in this recommendation.

Approval of the Agreement contributes to the Shared Vision 2025 outcome of a Collaborative Community by establishing an agreement that increases the use of Airport facilities by the general public.

FISCAL IMPACT:

The revenue of $43,878.78 for the initial year will be deposited into the Airport Enterprise Fund.