REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 10, 2025
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. Find that approval of Amendment No. 4 to Lease Agreement No. 16-971 with Spring Valley Lake Association, 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 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.
3. Approve Amendment No. 4 to Lease Agreement No. 16-971 with Spring Valley Lake Association to extend the term of the lease two years, for the period of July 1, 2025 through June 30, 2027, due to the County’s exercise of an existing extension option, following a permitted holdover for the period of March 31, 2025, through June 30, 2025, add one two-year option to extend, 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, for a new total contract amount of $10.
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.
FINANCIAL IMPACT
Approval of Amendment No. 4 (Amendment) to Lease Agreement No. 16-971 (Lease) will not result in the use of Discretionary General Funding (Net County Cost). The total cost of this Amendment, including the permitted holdover, is $2, 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 2024-25 budget and will be included in future recommended budgets. Annual lease costs are as follows:
Period |
Lease Cost |
March 31, 2025 - June 30, 2025* |
$0.25 |
July 1, 2025 - June 30, 2026 |
$1.00 |
July 1, 2026 - June 30, 2027 |
$1.00 |
Total Cost |
$2.25 |
*Reflects permitted holdover period.
BACKGROUND INFORMATION
On December 20, 2016 (Item No. 70), the Board approved the Lease with one two-year option to extend the term. The Lease replaced 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 Lease was for the period of February 1, 2017, through January 31, 2019. In the eight years since the Lease was originally approved, the Board has approved three amendments, adding options to extend the term, extending the term, and adjusting the rental rate schedule.
Amendment No. |
Approval Date |
Item No. |
1 |
December 18, 2018 |
60 |
2 |
December 8, 2020 |
34 |
3 |
March 14, 2023 |
46 |
The Board approved the 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 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 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. Real Estate Services Department (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, it will 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.
In January 2025, Sheriff requested RESD prepare an amendment extending the term for two years. RESD prepared the amendment to extend the term from July 1, 2025, through June 30, 2027, with County’s right to exercise 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. The negotiations to renew the Lease with the Spring Valley Lake Association began in January 2025 and during negotiations concerning the terms of the amendment, the Lease went into a permitted holdover on March 31, 2025. Sheriff has continued to occupy the leased space and abide by the terms of the Lease.
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 - Class 1 Existing Facilities because the proposed Lease is to secure property to operate within the existing structure with negligible or no expansion of existing use.
Summary of Lease Terms |
|
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: |
July 1, 2025 - June 30, 2027 |
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Options: |
One two-year option |
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Rent: |
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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Holdover: |
Upon the end of the term, if permitted by Lessor, the Lease shall continue on a month-to-month term 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’ 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 April 4, 2025; Sheriff (Jose Torres, Administrative Manager 387-3648) on April 4, 2025; Purchasing (Dylan Newton, Buyer III, 387-3377) on April 7, 2025; Finance (Erika Rodarte, 387-4919, and Eduardo Mora, 387-4376, Administrative Analysts) on May 21, 2025; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on May 23, 2025.
(YG: 665-0268)