REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
February 25, 2025
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
SHANNON D. DICUS, Sheriff/Coroner/Public Administrator
SUBJECT
Title
Lease Amendment with Martha Mary Green-Whitney Revocable Trust, September 18, 2024, for Office Space in Forest Falls
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 5 to Lease Agreement No. 07-596 with Martha Mary Green-Whitney Revocable Trust, September 18, 2024, for office space, is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class I).
2. Approve the Real Estate Services Department’s use of an alternative procedure in lieu of a Formal Request for Proposals, as allowed per County Policy 12-02; Leasing Privately Owned Real Property for County Use, to reflect a change of property ownership and an assignment of Lease Agreement No. 07-596 from the Green-Whitney Family Living Trust, U/A dated October 25, 2012, to the Martha Mary Green-Whitney Revocable Trust, September 18, 2024, and extend the term by three years, for the period of March 1, 2025, through February 29, 2028, following a permitted 26-month holdover for the period of January 1, 2023, through February 28, 2025, and add one three-year option to extend the term for the continued use of approximately 913 square feet of office space, located at 41003 Valley of the Falls Drive, Units A & B in Forest Falls, for the Sheriff/Coroner/Public Administrator.
3. Approve Amendment No. 5 to Lease Agreement No. 07-596 to reflect a change of property ownership and an assignment of the lease from the Green-Whitney Family Living Trust, U/A dated October 25, 2012, to the Martha Mary Green-Whitney Revocable Trust, September 18, 2024, and to extend the lease term by three years, for the period of March 1, 2025, through February 29, 2028, following a permitted 26-month holdover for the period of January 1, 2023, through February 28, 2025, and add one three-year option to extend the term for the continued use of approximately 913 square feet of office space, located at 41003 Valley of the Falls Drive, Units A & B in Forest Falls, for the Sheriff/Coroner/Public Administrator, in the amount of $80,240, including the holdover amount of $29,432, for a new total contract amount of $264,416.
4. Direct the Real Estate Services Department to file the Notice of Exemption in accordance with the California Environmental Quality Act.
(Presenter: Terry W. Thompson, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally Responsible and Business-Like Manner.
Provide for the Safety, Health, and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of Amendment No. 5 (Amendment) to Lease Agreement No. 07-596 (Lease) will not result in the use of additional Discretionary General Funding (Net County Cost). The total cost of this three-year Amendment totals $80,240, including a 26-month holdover for the period of January 1, 2023, through February 28, 2025. Lease payments will be made from the Real Estate Services Department (RESD) Rents budget (7810001000) and reimbursed from the Sheriff/Coroner/Public Administrator’s (Sheriff) budget (4430001000). Other costs associated with this Lease include custodial, electricity, and propane gas expenses, which will be paid from the Sheriff's budget. Sufficient appropriation is included in both the RESD and Sheriff’s 2024-25 budgets and will be included in future recommended budgets. Annual lease costs are as follows:
|
Year |
Annual Lease Cost |
Estimate of Other Costs |
|
*January 1, 2023 - February 28, 2025 |
$29,432 |
$3,600 |
|
March 1, 2025 - February 28, 2026 |
$16,440 |
$1,854 |
|
March 1, 2026 - February 28, 2027 |
$16,932 |
$1,910 |
|
March 1, 2027 - February 29, 2028 |
$17,436 |
$1,967 |
|
Total Cost |
$80,240 |
$9,331 |
*Holdover period
BACKGROUND INFORMATION
On July 17, 2007 (Item No. 27), the Board of Supervisors (Board) approved the three-year Lease, with two three-year options to extend the term, with Martha Green-Whitney Revocable Trust, September 18, 2024, for 913 square feet of office space, at 41003 Valley of the Falls Drive, Units A and B, in Forest Falls. The original term was for the period of July 1, 2007, through June 30, 2010. In the eighteen years since the Lease was originally approved, the Board has approved four amendments to reflect a change in ownership, adjust the rental rate schedule, add options to extend the term, and update standard lease agreement language.
|
Amendment No. |
Approval Date |
Item No. |
|
1 |
July 13, 2010 |
59 |
|
2 |
April 23, 2013 |
43 |
|
3 |
June 28, 2016 |
57 |
|
4 |
December 17, 2019 |
45 |
The Sheriff requested that RESD extend the term three-years for the continued use of office space as a reporting station for Sheriff personnel assigned to the Forest Falls area. Due to delays in obtaining trust documents to verify Martha Mary Green-Whitney as the trustee of the Martha Mary Green-Whitney Revocable Trust, September 18, 2024, as well as protracted negotiations for an increased rental rate, the Lease went into a permitted holdover on January 1, 2023. The Amendment extends the term by three years for the period of March 1, 2025, through February 29, 2028, reflects a change of ownership from Green-Whitney Family Living Trust, U/A dated October 25, 2012, to a new revocable trust, Martha Mary Green-Whitney Revocable Trust, September 18, 2024, adjusts the rental rate schedule, and updates standard lease agreement language. All other provisions and terms of the Lease shall remain the same.
The procurement process required by County Policy 12-02 - Procuring Privately Owned Real Property for County Use (Policy) provides that the Board may approve the use of an alternative procedure to the use of a Formal RFP to extend the lease whenever the Board determines that compliance with the Formal RFP requirements would unreasonably interfere with the financial or programmatic needs of the County, or when the use of an alternative procedure would otherwise be in the best interests of the County. Approval of the Amendment will result in an aggregate term of 21 years and a potential aggregate term of 24 years, if the option to extend the term is exercised. RESD completed a market analysis of comparable sites and found the rental rate for the three-year extended term to be competitive. This site best meets the requirements of the Sheriff in the Forest Falls area and will save on relocation costs if it remains at this site.
The project to approve the Amendment was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under CEQA Guidelines Section 15301 - Existing Facilities (Class I), because there is no possibility that the leasing of the subject property will have a significant effect on the environment. Accordingly, no further action is required under CEQA.
|
Summary of Lease Terms |
|
Lessor: |
Martha Mary Green-Whitney Revocable Trust, September 18, 2024 Martha Mary Green-Whitney, Trustee |
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Location: |
41003 Valley of the Falls Drive, Units A & B, Forest Falls |
|
|
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Size: |
Approximately 913 square feet of office space |
|
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Term: |
Three years, March 1, 2025, through February 29, 2028 |
|
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Options: |
One three-year option to extend the term |
|
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Rent: |
Base Rent Cost per square foot per month: $1.50* modified gross |
|
|
Monthly: $1,370 |
|
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Annual: $16,440 |
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*Mid-range for comparable facilities in the Forest Falls area per the supporting competitive set analysis on file with RESD |
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Annual Increases: |
3% |
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Improvement Costs: |
None |
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Custodial: |
Provided by County |
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Maintenance: |
Provided by Lessor |
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Utilities: |
Lessor provides water, sewer and fire alarm service; County provides interior electricity, propane gas, vending machines and telephone service |
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Insurance: |
The Certificate of Liability Insurance, as required by the lease, is on file with RESD |
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Holdover: |
Month-to-month basis upon the same provisions of the Lease |
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Right to Terminate: |
County has the Right to Terminate with 90-Days’ Notice |
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Parking: |
Sufficient for County needs |
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, and Grace Parsons, Deputies County Counsel, 387-5455) on January 16, 2025; Sheriff (Jose Torres, Administrative Manager, 387-3648) on January 17, 2025; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on January 14, 2025; Finance (Erika Rodarte, 387-4919, and Eduardo Mora, 387-4376, Administrative Analysts) on February 3, 2025; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5426) on February 7, 2025.
(BR: 531-2674)