REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
March 10, 2026
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
SUBJECT
Title
Amendment to Lease Agreement with Consolidated Fire Agencies for Office and Rack Space at the Valley Communications Center in San Bernardino
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 1 to Revenue Lease Agreement No. 25-745 with Consolidated Fire Agencies, for use of office and rack space in San Bernardino is categorically exempt under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1).
2. Approve the following actions pursuant to California Government Code Sections 25520 et seq. and 25365 (Four votes required):
a. Find that entering into Amendment No. 1 to Revenue Lease Agreement No. 25-745 with Consolidated Fire Agencies for the use of approximately 18,652 square feet of County-owned office space and nine communication rack spaces within the Valley Communications Center is in the public interest and will not substantially interfere with the County’s existing or future use of the property.
b. Approve Amendment No. 1 to Revenue Lease Agreement No. 25-745, with a 20-year term and one five-year option to extend, for the projected period of April 1, 2026 through March 31, 2046, for the use of approximately 18,652 square feet of County-owned office space with a temporary rent reduction for the projected five-month Temporary Reduction Period from April 1, 2026 through August 31, 2026 to reflect the temporary reduction of a 4500 square feet portion for the Dispatch Center Premises, projected to be occupied later on September 1, 2026.
c. Approve Temporary Reduction Period rent amount by $5,265, from $21,822 to $16,558 per month, for the partial occupation of the Premises projected for a five-month period prior to full occupancy of the Dispatch Center Premises, with the revised annual rental payments totaling $8,416,035 over the 20-year term, for a reduction of the total combined revenue of $26,325 decreasing the contract from $10,442,359 to $10,416,035.
3. Authorize the Director of the Real Estate Services Department to approve and execute any other documents and take any other actions necessary to complete this transaction or perform lease requirements prior to or throughout the term, subject to County Counsel review.
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.
Improve County Government Operations.
FINANCIAL IMPACT
Approval of this item will not require Discretionary General Funding (Net County Cost). The total revenue anticipated to be received by the County during the 20-year period for Amendment No. 1 (Amendment) to Revenue Lease Agreement No. 25-745 (Lease) is -$26,325 over five months to reflect the reduction of the Dispatch Center Premises for a projected five-month period decreasing the contract from $10,442,359 to $10,416,035. Revenue will be deposited in the Real Estate Services Department (RESD) Rents budget (7812001000). The annual revenue is as follows:
|
Year |
Revenue |
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*April 1, 2026 |
$2,000,000 |
|
**April 1, 2026 - March 31, 2027 |
$321,135 |
|
April 1, 2027 - March 31, 2028 |
$354,409 |
|
April 1, 2028 - March 31, 2029 |
$361,497 |
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April 1, 2029 - March 31, 2030 |
$368,727 |
|
April 1, 2030 - March 31, 2031 |
$376,102 |
|
April 1, 2031 - March 31, 2032 |
$383,624 |
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April 1, 2032 - March 31, 2033 |
$391,296 |
|
April 1, 2033 - March 31, 2034 |
$399,122 |
|
April 1, 2034 - March 31, 2035 |
$407,104 |
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April 1, 2035 - March 31, 2036 |
$415,247 |
|
April 1, 2036 - March 31, 2037 |
$423,552 |
|
April 1, 2037 - March 31, 2038 |
$432,023 |
|
April 1, 2038 - March 31, 2039 |
$440,663 |
|
April 1, 2039 - March 31, 2040 |
$449,476 |
|
April 1, 2040 - March 31, 2041 |
$458,466 |
|
April 1, 2041 - March 31, 2042 |
$467,635 |
|
April 1, 2042 - March 31, 2043 |
$476,988 |
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April 1, 2043 - March 31, 2044 |
$486,528 |
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April 1, 2044 - March 31, 2045 |
$496,258 |
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April 1, 2045 - March 31, 2046 |
$506,183 |
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Total Revenue |
$10,416,035 |
*Projected date of a one-time lump sum payment
**Projected commencement date including dispatch space rental reduction
BACKGROUND INFORMATION
On January 11, 2022 (Item No. 33), the Board of Supervisors (Board) approved a Design-Build Project, The Valley Communications Center (WBSE 10.10.0181), located in the City of San Bernardino. The project delivers a new mission-critical facility that must be operational 365 days per year, 24 hours per day, under extreme conditions, as the primary Emergency Operations Center (EOC) for the San Bernardino Valley. The comprehensive 73,662 square foot facility is situated on a 6.85-acre site at the southeast corner of Rialto Avenue and Lena Road, of which CONFIRE will occupy approximately 18,652 square feet, including the Dispatch Center. EOC command staff supporting emergency response functions will vary based on activation level and may include the San Bernardino County Sheriff/Coroner/Public Administrator (SBCSD), Office of Emergency Services (OES), San Bernardino County Fire (SBCFD), Inland Counties Emergency Medical Agency (ICEMA), the Innovation and Technology Department’s (ITD) radio management facility, and Building Services. The facility is designed to be self-supporting and self-sufficient over extended durations and capable of operating as a stand-alone facility in the event of natural or man-made disasters.
The recommended action will amend the Lease with Consolidated Fire Agencies (CONFIRE), originally approved by the Board of Supervisors on September 23, 2025 (Item No. 79), with one five-year option to extend, for the use of approximately 18,652 square feet of County-owned office and rack space, including a temporary rent reduction for the designated 4,500 square foot Dispatch Center to be occupied at a later date, located at the southeast corner of Rialto Avenue and Lena Road in San Bernardino [Assessor’s Parcel Numbers (APNs) 0279-261-17-0000 (portion), 0279-271-20-0000 (portion), 0279-271-17-0000 (portion), and 0279-271-16-0000 (portion)] (Premises). The Amendment temporarily reduces the base rent applicable to the Dispatch Center portion of the Premises to $1.17 per square foot for the period of April 1, 2026 through August 31, 2026, to accommodate the phased completion and transition of dispatch operations. Full base rent will commence on or about September 1, 2026, or sooner, contingent upon completion of site improvements and operational readiness.
The County Administrative Office (CAO) requested that RESD prepare the Lease with a commencement date tied to the issuance of the Certificate of Occupancy and completion of the Dispatch Center improvements, to allow CONFIRE to initiate dispatch and emergency operations planning and phased occupancy. In addition, CONFIRE will provide a one-time lump sum payment of $2,000,000 to the County to be applied toward rental obligations and construction costs associated with the development of the facility.
Due to the staggered completion of dispatch-specific improvements, this Amendment establishes a temporary rent reduction for a five-month period projected for April 1, 2026 through August 31, 2026, or upon completion of the dispatch center space, with full rent commencing on or about September 1, 2026. The overall Lease term for the entire Premises remains at 20 years projected for April 1, 2026 through March 31, 2046. The County may terminate the Lease following year 18 of the initial 20-year term by providing 24 months prior written notice.
Recommendation No. 3 will authorize the RESD Director to approve and execute the commencement date certificate and take any other actions necessary to complete this transaction or perform Lease requirements throughout the term.
The proposed Amendment was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under CEQA Section 15301 - Existing Facilities (Class 1) because the lease of an existing building secures property to operate within the existing structure with negligible or no expansion of existing use.
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Summary of Lease Terms |
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Lessee: |
Consolidated Fire Agencies Mike Bell, Director |
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Location: |
Southeast corner of Rialto Avenue and Lena Road, APN’s 027926117 (portion), 027927120 (portion), 027927117 (portion), and 027927116 (portion) in San Bernardino |
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Size: |
Approximately 18,652 square feet and nine rack spaces; reduction of 4,500 square feet of rentable space for the Dispatch Center Premises during the Temporary Reduction Period |
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Term: |
20 years, projected commencement date April 1, 2026 and terminating March 31, 2046 |
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Options: |
One five-year option to extend the term |
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Rent: Office |
Monthly: $21,822.84 Temporary Reduction Period Rent: ($26,325.00*) for monthly amount of $16,557.84 Annual: $261,874.08 |
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*$1.17 per square foot per month, low range for comparable facilities in the San Bernardino area per supporting lease comparable office space on file |
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Rent: Rack |
Monthly: $7,132.14* Annual: $85,585.68* |
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$792.46 per rack per month: *mid-range for comparable County facilities |
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Annual Increases: |
Approximately 2% |
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Custodial: |
Provided by County |
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Maintenance: |
Provided by County |
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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 County, 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 24-month written notice following the 18th year of the initial term |
PROCUREMENT
California Government Sections 25520 et seq. and 25365 allow the conveyance to CONFIRE upon a finding that the Premises are not required for County use and the conveyance is in the public interest and that it will not substantially interfere with the County's own use of the property.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, Deputy County Counsel, 387-5455) on February 12, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on February 2, 2026; and County Finance and Administration (Eduardo Mora, Administrative Analyst, 387-4376) on February 23, 2026.
(BR: 531-2674)