REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
July 28, 2020
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
CORWIN PORTER, Interim Director, Department of Public Health
SUBJECT
Title
Amendment No. 2 to Revenue Sub-Lease Agreement with San Antonio Regional Hospital for Office Space for the Department of Public Health in Ontario
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 2 to revenue Sub-Lease Agreement No. 15-423 with San Antonio Regional Hospital to extend the term of the sub-lease for the period of August 1, 2020 to July 31, 2023, add one three-year option to extend the term, adjust the rent schedule, and update standard sub-lease agreement language for 1,815 square feet of office space at the Department of Public Health’s leased premises located at 150 East Holt Boulevard in Ontario for total revenue in the amount of $158,124.
(Presenter: Terry W. Thompson, Director, 387-5252)
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 this item will not result in the use of additional Discretionary General Funding (Net County Cost). The total revenue to be received by the Department of Public Health (DPH) (9300421000) during this three-year revenue sub-lease amendment is $158,124. Annual revenue is as follows:
|
Year |
Annual Revenue |
|
August 1, 2020 - July 31, 2021 |
$ 51,624 |
|
August 1, 2021 - July 31, 2022 |
$ 52,704 |
|
August 1, 2022 - July 31, 2023 |
$ 53,796 |
|
Total Revenue |
$158,124 |
BACKGROUND INFORMATION
The recommended action will approve an amendment to the revenue sub-lease agreement with San Antonio Regional Hospital (SARH) extending the term of the revenue sub-lease for three years for the period of August 1, 2020 through July 31, 2023, add one three-year option to extend the term of the sub-lease, adjust the rent schedule, and update standard sub-lease agreement language for 1,815 square feet of DPH’s leased office space located at 150 East Holt Boulevard in Ontario. This will allow DPH to continue to manage its Community Health Improvement Program (CHIP) in coordination with SARH.
On February 26, 2013 (Item No. 46), the Board of Supervisors (Board) approved a lease agreement, Contract No. 13-67 (Master Lease), with SEC Euclid and Holt Avenue Property, L.P. for a term of 10 years with two five-year options to extend the term of the lease for 12,867 square feet of space (Premises) at 150 East Holt Boulevard in Ontario. The original term of the Master Lease was for the period of June 1, 2014 through May 31, 2024.
On July 28, 2015 (Item No. 66), the Board approved a revenue sub-lease agreement, Contract No. 15-423 with SARH for three years with two one-year options to extend the term of the sub-lease for 1,815 square feet of office space within DPH’s leased Premises, subject to the terms of the Master Lease. The original term of the revenue sub-lease was for the period of August 1, 2015 through July 31, 2018. In the five years since the sub-lease was originally approved, the Board has approved one amendment to extend the term of the sub-lease through July 31, 2020, adjust the rent schedule, and update standard sub-lease agreement language.
|
Amendment No. |
Approval Date |
Item No. |
|
1 |
July 24, 2018 |
35 |
The SARH-run CHIP program strives to diminish care gaps, promote delivery of evidence-based care, and reduce the need for potentially unnecessary emergency room visits and hospitalizations. Coordinated by a dedicated interdisciplinary healthcare team, this program focuses on appropriate patient identification, prevention, evidence-based disease management, and exemplary treatment of individuals with chronic conditions.
SARH’s co-location with DPH provides an opportunity to reduce health care costs by connecting hospital to clinic to community, and exploring data sharing possibilities for improved coordination of care, with a goal to improve the health outcomes for residents in the service area of the Ontario Health Center.
DPH requested the Real Estate Services Department (RESD) amend the revenue sub-lease to extend the term of the sub-lease for three years for the period of August 1, 2020 through July 31, 2023, add one three-year option to extend the term of the sub-lease, adjust the rent schedule, and update standard sub-lease agreement language. All other terms and conditions of the sub-lease remain unchanged.
Staff has reviewed the recommended action pursuant to the California Environmental Quality Act (CEQA) and has determined that it does not constitute a project. Accordingly, no further action is required under CEQA.
Summary of Revenue Sub-Lease Terms
|
|
|
|
Lessor: |
San Antonio Regional Hospital (Harris Koenig, President and Chief Executive Officer) |
|
|
|
|
Location: |
150 East Holt Avenue, Ontario |
|
|
|
|
Size: |
1,815 square feet, northwest corner of the first floor |
|
|
|
|
Term: |
Three years commencing August 1, 2020 |
|
|
|
|
Options: |
One three-year option |
|
|
|
|
Rent: |
Cost per sq. ft. per month: $2.37* full service gross |
|
|
Monthly: $4,302 |
|
|
Annual: $51,624 |
|
|
*Mid-range for comparable office facilities in the Ontario area per the competitive set analysis on file with RESD |
|
|
|
|
Annual Increases: |
2% |
|
|
|
|
Improvement Costs: |
None |
|
|
|
|
Custodial: |
Provided by Master Landlord |
|
|
|
|
Maintenance: |
Provided by Master Landlord |
|
|
|
|
Utilities: |
Electric is provided by County; all other utilities are provided by Master Landlord |
|
|
|
|
Insurance: |
The Certificate of Liability Insurance, as required by the sub-lease, is on file with RESD |
|
|
|
|
Right to Terminate: |
Either party has the right to terminate with 90-days’ notice |
|
|
|
|
Parking: |
Non-exclusive right to use County parking |
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Agnes Cheng, Deputy County Counsel, and Adam Ebright, Deputy County Counsel, 387-5455) on June 30, 2020; Department of Public Health (Corwin Porter, Interim Director, 387-6218) on June 29, 2020; Finance (Paul Garcia, Administrative Analyst, 386-8392 and Wen Mai, Principal Administrative Analyst, 387-4020) on July 10, 2020 and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on July 13, 2020.
(PN: 677-8321)