REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
October 22, 2024
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
SHANNON D. DICUS, Sheriff/Coroner/Public Administrator
SUBJECT
Title
Lease Amendment with New Hope Family Life Public Enterprise Center, Inc. for Office Space in San Bernardino
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 2 to Lease Agreement No. 22-31 with New Hope Family Life Public Enterprise Center, Inc. for office space is an exempt project under the California Environmental Quality Act Guidelines Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 2 to Lease Agreement No. 22-31 with New Hope Family Life Public Enterprise Center, Inc. to exercise the second of two existing options to extend the term of the lease by one-year from November 1, 2024 through October 31, 2025, for the new cumulative period of January 25, 2022, through October 31, 2025, following a permitted holdover for the period of June 1, 2024, through October 31, 2024; adjust the rental rate schedule; add two additional one-year options to extend the term; and update standard lease agreement language for the Sheriff/Coroner/Public Administrator’s use of approximately 4,518 square feet of office space, comprising rooms 7, 14, 17, 18, 21, and 25, located at 1505 West Highland Avenue in San Bernardino, in the total amount of $82,122.
3. 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.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The total cost of Amendment No. 2 (Amendment) to Lease Agreement No. 22-31 (Lease) is $82,122. Lease payments will be made from the Sheriff/Coroner/Public Administrator (Sheriff) budget (4420005167). Other costs associated with this Lease include custodial services, which will be paid from the Sheriff’s budget. Sufficient appropriation is included in the 2024-25 budget and will be included in the 2025-26 recommended budget. Annual Lease costs are as follows:
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Period |
Annual Lease Cost |
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*June 1, 2024 - October 31, 2024 |
$23,653 |
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November 1, 2024 - October 31, 2025 |
$58,469 |
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Total Cost |
$82,122 |
*Permitted holdover period
BACKGROUND INFORMATION
New Hope Family Life Public Enterprise Center, Inc. (New Hope) provides reentry services to newly released, previously incarcerated individuals and the community through its IE REBOUND (IER) reentry program in collaboration with community faith-based groups, California State University-San Bernardino, and other key community stakeholders.
On June 8, 2021 (Item No. 81), the Board of Supervisors (Board) approved the Family Attachment Intervention Through Healing Services (FAITHS) program, so Sheriff can provide extended inmate services. The FAITHS program is designed to reduce recidivism and improve community safety and quality of life, while breaking the transgenerational cycle of incarceration, by addressing the needs of the newly released offender rather than just addressing the individual offense. The continued partnership and collaboration of the FAITHS program with IER at this location will continue to increase the effectiveness of the program.
On January 25, 2022 (Item No. 41), the Board approved a one-year Lease with New Hope, with two one-year options to extend the term of the Lease, for the period of January 25, 2022, through January 24, 2023, for the use of approximately 4,518 square feet of office space, which was procured in accordance with County Policy 12-02 - Procuring Privately Owned Real Property for County Use (Policy 12-02), using an alternative procedure. The procurement process required by Policy 12-02 does not apply to amendments of existing agreements, provided the amendment does not exceed the maximum term (including options) of the Lease.
On May 23, 2023 (Item No. 73) the Board approved Amendment No. 1 to the Lease to extend the term by exercising one of the two existing options to extend the term for the period of June 1, 2023, through May 31, 2024, following a permitted holdover for the period of January 25, 2023, through May 31, 2023, adjusted the rental rate schedule, and updated standard lease language.
Sheriff requested that the Real Estate Services Department (RESD) exercise the County’s second of two existing one-year options to extend the term. Negotiations with New Hope delayed the renewal process, and on June 1, 2024, the Lease went into permitted holdover. Sheriff has continued to occupy rooms 7, 14, 17, 18, 21, and 25, located at 1505 West Highland Avenue in San Bernardino (Premises) and abide by the terms of the Lease. This Amendment extends the term of the Lease for one year, adds two additional options to extend the term, adjusts the rental rate schedule, and updates standard lease agreement language. All other terms and conditions of the Lease remain unchanged.
Approval of the Amendment will extend the Lease with New Hope for one year by exercising the second of the two existing one-year options to extend the term for the period of November 1, 2024, through October 31, 2025, following a permitted five-month holdover. The Amendment will add two one-year options to extend the term, update the rental rate schedule, and update standard lease agreement language because of the continued need for Sheriff’s services on the Premises.
The project to approve the Amendment was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under Section 15301 - Existing Facilities (Class 1) because there is no possibility that the leasing of the subject property will have a significant effect on the environment.
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Summary of Lease Terms |
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Lessor: |
New Hope Family Life Public Enterprise Center, Inc Kinard Moffatt, Chairman |
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Location: |
1505 West Highland Avenue, San Bernardino |
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Size: |
Approximately 4,518 square feet of office space, comprising rooms 7, 14, 17, 18, 21, and 25 |
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Term: |
One year commencing November 1, 2024, through October 31, 2025 |
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Options: |
Two one-year options to extend the term |
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Rent: |
Cost per square foot per month: $1.08* |
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Monthly: $4,872 |
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Annual: $58,469 |
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*Low-range for comparable facilities in the San Bernardino area per the competitive set analysis on file with RESD |
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Annual Increases: |
None |
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Improvement Costs: |
None |
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Custodial: |
Provided by Lessor for the common areas of the building; Provided by County for the leased premises |
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Maintenance: |
Provided by Lessor |
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Utilities: |
Provided by Lessor |
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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: |
Upon the end of the term, if permitted by Lessor, the Lease shall continue month-to-month upon the same terms and conditions which existed at the time of expiration |
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Right to Terminate: |
County has the right to terminate with 90-days’ written 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 September 25, 2024; Sheriff (Jose Torres, Administrative Manager 387-3648) on September 26, 2024; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on September 20, 2024; Finance (Erika Rodarte, 387-4919, and Garrett Baker, 387-3077, Administrative Analysts) on October 1, 2024; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on October 1, 2024.
(YG: 665-0268)