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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
County Manager’s Office
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DATE:
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November 29, 2010
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BOARD MEETING DATE:
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December 14, 2010
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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 Division
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SUBJECT:
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Amendment Number Two to the Sublease Agreement with the Employment Development Department (EDD) of the State of California, for a portion of the leased building at 550 Quarry Road, San Carlos. (Lease No. 5293)
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RECOMMENDATION:
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Adopt a Resolution authorizing the:
1. President of the Board of Supervisors to execute Amendment Number Two to the Sublease Agreement with the Employment Development Department (EDD) of the State of California, of a 7,836 square foot portion of the leased building at 550 Quarry Road, San Carlos, extending the term to October 31, 2011, at an initial base rent of $15,935.73 per month; and
2. County Manager or his designee to execute notices, options and documents associated with Amendment Number Two and the Agreement including, but not limited to, extension or termination of the Agreement under the terms set forth therein.
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BACKGROUND:
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Since 1984, the County Human Services Agency has leased office and warehouse space at 550 Quarry Road in San Carlos for use as a “One-Stop Service Center” serving the Mid-Peninsula. The EDD has subleased portions of the building since 2002 to provide services to the residents of San Mateo County. They currently pay to the County $15,935.73 per month for the use of the space, which offsets a proportionate share of the County’s costs for the lease of the facility. The monthly Sublease rental is adjusted each January 1st to reflect any increase in the CPI index over the previous year.
The original Lease for the facility contained an expiration date of October 31, 2009, with two options for the County to extend for one year each and the EDD sublease also contained an expiration date of October 31, 2009. The County exercised the first option to extend the Lease to October 31, 2010, and the County and EDD concurrently entered into Amendment Number One to the sublease, extending the expiration to October 31, 2010. The County exercised the second option to extend the Lease to October 1, 2011 and the County and EDD desire to extend the Sublease to coincide with the expiration of the Lease. The EDD has remained in the premises on a month-to-month basis since October 30, 2010 in accordance with the holdover provision of the Sublease.
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DISCUSSION:
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The EDD has drafted Amendment Number Two to the Sublease Agreement, which extends the term of the Sublease of 7,836 square feet of office space for one year to October 31, 2011, subject to EDD’s right to terminate on 30 days notice, at the current rate of $15,935.73 which is subject to increase in January based on the CPI, and is otherwise on the same terms and conditions.
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County Counsel has reviewed and approved the Amendment as to form. The Director of the Human Services Agency concurs in this recommendation.
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Approval of this Agreement contributes to the Shared Vision 2025 outcome of a Prosperous Community by continuing to provide space for the EDD to co-locate complimentary State programs with County programs that provide employment training, vocational rehabilitation and other job placement services to the residents of the San Mateo County.
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FISCAL IMPACT:
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Rent for this sublease is collected by HSA and offsets the EDD’s proportionate share of the facility costs for this location.
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