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Committee approves forwarding of new DEA lease at SFO after staff clarifies threshold issue
Summary
Airport staff asked the committee to approve a five-year lease with the U.S. Drug Enforcement Administration for 2,620 square feet in Terminal 3 at an annual rent of $341,075. Budget staff and counsel discussed why the lease required board review after option years pushed the total above the $1,000,000 charter threshold; the committee moved the item to the full board without objection.
The Budget and Finance Committee voted to send to the full Board of Supervisors a resolution approving lease number 10-0015: a proposed five-year lease between the City and County of San Francisco and the U.S. Drug Enforcement Administration for 2,620 square feet in Terminal 3 at San Francisco International Airport.
Kathy Wagner of the Airport explained the annual rent under the proposed lease is $341,075, roughly a 24% increase from the prior rent. Wagner said the airport had not anticipated reaching the $1,000,000 cumulative threshold in the third option year and that changes in charter interpretation and an extended option period caused the total to exceed the limit.
Budget analyst Harvey Rose and deputy city attorney Adams discussed whether the airport was required to seek board approval when the prior lease was first executed and whether modification now requires board approval under charter section 9.118. Counsel noted uncertainty about historic lease approvals but agreed the department should clarify the record going forward.
There was brief public comment and the committee forwarded the lease to the full board with recommendation, taken without objection.
