REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
April 23, 2024
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
MELANIE OROSCO, County Librarian, County Library
SUBJECT
Title
Amendment to Lease Agreement with the City of Chino Hills for Library and Office Space
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 2 to Lease Agreement No. 09-30 with the City of Chino Hills for library and 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. 09-30 with the City of Chino Hills for the use of approximately 30,270 total square feet of library and office space located at 14020 City Center Drive in Chino Hills, exercising an option to extend the term for the five-year period of May 1, 2024 through April 30, 2029, in the amount of $5, following a permitted holdover for the period of January 1, 2024 through April 30, 2024, and adding one five-year option to extend.
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.
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 Discretionary General Funding (Net County Cost). The total cost of Amendment No. 2 (Amendment) to Lease Agreement No. 09-30 (Lease) is $5, $1 annually over the five-year term of May 1, 2024 through April 30, 2029. Lease payments will be made from the Real Estate Service Department’s (RESD) Rents budget (7810001000) and reimbursed from the County Library (Library) budget (6400002600). Sufficient appropriation is included in both the 2023-24 Rents and Library budgets and will be included in future recommended budgets.
BACKGROUND INFORMATION
The recommended action will amend the Lease with the City of Chino Hills (City) and exercise the option to extend for the five-year period of May 1, 2024 through April 30, 2029, following a permitted holdover for the period of January 1, 2024 through April 30, 2024, and add one five-year option to extend, for the use of approximately 30,270 total square feet of library and office space for the Library located at 14020 City Center Drive, in Chino Hills.
On January 13, 2009 (Item No. 19), the Board of Supervisors (Board) approved a 10-year Lease with two five-year options to extend the term with the City for 30,270 square feet of library space at 14020 City Centre Drive in Chino Hills. The original term was for the period of January 13, 2009 through December 31, 2018.
On April 16, 2019 (Item No. 38), the Board approved Amendment No. 1 to the Lease to retroactively extend the term five years for the period of January 1, 2019 through December 31, 2023, by exercising one five-year option to extend the term for 30,270 square feet of library and office space for the Library located at 14020 City Center Drive, in Chino Hills.
Due to continued negotiations with the City, the Lease went into a permitted month-to-month holdover for the period of January 1, 2024 through April 30, 2024. RESD prepared the Amendment to extend the term of the Lease for the period of May 1, 2024 through April 30, 2029.
Either party may terminate the Lease by giving the other party 90 days prior written notice. All other terms and conditions of the Lease remain the same.
The project to approve the Amendment with the City was reviewed pursuant to the California Environmental Quality Act and determined to be categorically exempt under Guidelines 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: |
City of Chino Hills Benjamin Montgomery City Manager |
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Location: |
14020 City Center Drive, in Chino Hills |
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Size: |
Approximately 30,270 total square feet |
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Term: |
Five years, May 1, 2024 through April 30, 2029 |
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Options: |
One five-year option |
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Rent: |
$1 annually |
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*Low range for comparable facilities in the Chino 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 but reimbursed by the County |
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Maintenance: |
Provided by Lessor except fire extinguishers, interior security and intrusion alarm monitoring service, and fluorescent tube replacements; Lessor may require contribution for major maintenance or capital improvement on a case-by-case basis |
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Utilities: |
Provided by Lessor but paid by County except ground water |
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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: |
Either party has the right to terminate with 90-days’ prior written notice |
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Parking: |
Sufficient for County needs |
PROCUREMENT
This Amendment is exempt from the provisions of County 12-02 - Leasing Privately Owned Real Property for County Use, as the real property is owned by another governmental entity.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, and Kaleigh Ragon, Deputies County Counsel, 387-5455) on March 28, 2024; Library (Melanie Orosco, County Librarian, 387-2220) on March 21, 2024; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on March 28, 2024; Finance (Elias Duenas, 387-4052, and Garrett Baker, 387-3077, Administrative Analysts) on April 5, 2024; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on April 5, 2024.
(AR: 501.7579)