REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
March 14, 2023
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
SHANNON D. DICUS, Sheriff/Coroner/Public Administrator
SUBJECT
Title
Amendment to Lease Agreement with Spring Valley Lake Association for Office Space in Victorville
End
RECOMMENDATION(S)
Recommendation
1. 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 add one two-year option to extend the term of Lease Agreement No. 16-971 with Spring Valley Lake Association for the Sheriff/Coroner/Public Administrator at 12975 Rolling Ridge Drive in Victorville.
2. Approve Amendment No. 3 to Lease Agreement No. 16-971 with Spring Valley Lake Association to extend the term of the lease two years for the period of April 1, 2023 through March 31, 2025, due to San Bernardino County’s exercise of an existing extension option, following a permitted holdover for the period of February 1, 2023 through March 31, 2023, add one two-year option to extend the term of the lease, adjust the rental rate schedule, and update standard lease agreement language, for approximately 450 square feet of office space, for the Sheriff/Coroner/Public Administrator at 12975 Rolling Ridge Drive in Victorville in the amount of $2.17.
(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 this two-year amendment, including the permitted holdover, is $2.17, which will be paid from the Sheriff/Coroner/Public Administrator (Sheriff) operating budget (4434501000) upon approval and execution of the recommended amendment by the Board of Supervisors (Board). Sufficient appropriation is included in the 2022-23 budget and will be included in future recommended budgets. Annual lease costs are as follows:
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Period |
Lease Cost |
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February 1, 2023 - March 31, 2023* |
$0.17 |
|
April 1, 2023 - March 31, 2024 |
$1.00 |
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April 1, 2024 - March 31, 2025 |
$1.00 |
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Total Cost |
$2.17 |
*Holdover Costs pro-rata for the period
BACKGROUND INFORMATION
Approval of an alternate procurement process and the recommended Amendment No. 3 to Lease Agreement No. 16-971 (Existing Lease) will add one two-year extension option to the lease and extend the term of the lease for two years for the period of April 1, 2023 through March 31, 2025. The extension is due to San Bernardino County’s (County) exercise of an existing extension option, following a permitted holdover for the period of February 1, 2023 through March 31, 2023. The recommended amendment to the Existing Lease will also adjust the rental rate schedule and update standard lease agreement language, which will provide for the continued use of approximately 450 square feet of office space as a reporting station and add one two-year option to extend the term of the lease in support of law enforcement activities in the Victorville area.
On December 20, 2016 (Item No. 70), the Board approved the two-year Existing Lease, with one two-year option to extend the term of the lease, replacing the previous Lease Agreement No. 04-134 under which the Sheriff commenced occupancy of approximately 450 square feet of office space located at 12975 Rolling Ridge Drive in Victorville in 1999. The original term of the Existing Lease was for the period of February 1, 2017 through January 31, 2019. In the seven years since the Existing Lease was originally approved, the Board has approved two amendments, adding two, two-year options to extend the term of the Existing Lease, extending the term of the Lease through January 31, 2023, due to the exercise of two, two-year options, and adjusting the rental rate schedule.
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Amendment No. |
Approval Date |
Item No. |
|
1 |
December 18, 2018 |
60 |
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2 |
December 8, 2020 |
34 |
The Sheriff requested the Real Estate Services Department (RESD) prepare an amendment extending the term of the Existing Lease for two years from April 1, 2023 through March 31, 2025, due to the County’s exercise of an existing extension option, to add one two-year extension option, adjusting the rental rate schedule, and updating standard lease agreement language for the continued use of the leased space. During negotiations concerning the terms of the amendment, the Existing Lease went into holdover on February 1, 2023. The County has continued to occupy the leased space and abide by the terms of the Existing Lease.
The amendment allows for the RESD Director administering the Existing Lease, to execute subsequent lease amendments that solely reflect a successor landlord following the original landlord’s sale of the real property and assignment of the lease, but will not amend any other terms and conditions of the lease.
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.
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Summary of Lease Terms |
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Lessor: |
Spring Valley Lake Association (Alfred Logan, General Manager) |
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Location: |
12975 Rolling Ridge Drive, Victorville |
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Size: |
Approximately 450 square feet of office space |
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Term: |
Two years commencing April 1, 2023 |
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Options: |
One two-year option |
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Rent: |
Monthly: $0.08 |
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Annual: $1.00 |
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*Low-range for comparable facilities in the Victorville 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 |
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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 the RESD |
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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 |
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Holdover: |
Month-to-month term upon the same terms and conditions, including the rent which existed at the time of expiration |
PROCUREMENT
On December 20, 2016 (Item No. 70), the Board approved the Existing Lease, which was procured according to County Policy 12-02 - Leasing Privately Owned Real Property for County Use (Policy) via an alternative procedure process. The procurement process required by the Policy does not apply to amendments of existing leases, provided the amendment does not exceed the maximum term (including options) of the lease. Therefore, the Policy does not apply to the County’s exercise of the existing two-year option to extend the term of the lease but does apply to the addition of the one two-year extension option.
The Policy provides that the Board may approve the addition of the one two-year option to extend the term of the lease through the use of an alternative procedure instead of a formal Request for Proposals (RFP) process 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 interest of the County. RESD, acting as the delegated agent of the County Administrative Office, completed a competitive analysis of comparable properties and found the proposed rental rate to be competitive. This site best meets the anticipated long-term requirements of the Sheriff in the Victorville area, and if the option is exercised, would minimize disruption to Sheriff’s operations and save moving costs. RESD requests the Board approve the addition of one two-year option to extend the term of the lease.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Agnes Cheng, Deputy County Counsel, and Richard Luczak, Deputy County Counsel, 387-5455) on March 6, 2023; Sheriff (Jose Torres, Administrative Manager, 387-3648) on February 21, 2023; Purchasing (Bruce Cole, Supervising Buyer, 387-2148) on February 16, 2023; Finance (Erika Rodarte, Administrative Analyst, 387-4919, and Penelope Chang, Administrative Analyst, 387-4886) on February 23, 2023; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on February 23, 2023.
(KB: 677-7961)