REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
November 5, 2019
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
JOHN McMAHON, Sheriff/Coroner/Public Administrator
SUBJECT
Title
Amendment No. 7 to Revenue Lease Agreement with the Operating Engineers Funds, Inc. for Land at the Sheriff’s Regional Training Center in Glen Helen
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 7 to Lease Agreement No. 03-390 with the Operating Engineers Funds, Inc., to extend the term of the lease five years for the period of December 1, 2019 through November 30, 2024, for approximately 38.01 acres of County-owned land at the Sheriff’s Regional Training Center in Glen Helen for in-kind services provided to the Sheriff/Coroner/Public Administrator in lieu of monetary rent.
(Presenter: Terry W. Thompson, Director, 387-5252)
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COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not require the use of Discretionary General Funding (Net County Cost). There is no revenue to the County associated with this five-year lease amendment. The Operating Engineers Funds, Inc. (OE) will continue to provide grading services for site preparation of projects approved by the Sheriff/Coroner/Public Administrator (Sheriff) at the Sheriff’s Regional Training Center (SRTC) as in-kind services in lieu of monetary rent. OE’s estimate of the value of the in-kind services to be completed during this five-year amendment is approximately $1,238,000, which exceeds the estimated fair market value rent of $276,100 for the land over the five year term of the lease. The County will provide electricity, recycled and potable water, trash and sewer services, which are included in the Sheriff’s operating budget (4431121000).
BACKGROUND INFORMATION
The recommended action will amend an existing lease with OE to extend the term of the lease five years for the period of December 1, 2019 through November 30, 2024 for the non-exclusive use of land at the SRTC in Glen Helen because of the continuing need to improve the training facilities at the SRTC.
On May 13, 2003 (Item No. 70), the Board of Supervisors (Board) approved a two-year lease agreement, No. 03-390, with OE and the Southern California Surveyors Joint Apprenticeship Trust (Trust) for five acres of County-owned land at the SRTC. In exchange for in-kind services, consisting of site preparation for various projects at the SRTC requested by the Sheriff, the Co-tenants placed three single-wide classroom trailers along with approximately 35 pieces of heavy equipment in support of their apprenticeship training programs on the site. The original term of the lease was for the period of May 13, 2003 through May 12, 2005. In the 16 years since the lease was originally approved, the Board has approved six amendments, extending the term of the lease through November 30, 2019, adding additional site preparation projects for each extension, removal of the Trust as a co-tenant from the lease agreement, and updating standard lease agreement language.
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Amendment No. |
Approval Date |
Item No. |
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1 |
September 14, 2004 |
92 |
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2 |
February 15, 2005 |
51 |
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3 |
May 15, 2007 |
79 |
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4 |
August 10, 2010 |
44 |
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5 |
February 10, 2015 |
40 |
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6 |
November 6, 2018 |
43 |
The Sheriff requested the Real Estate Services Department (RESD) prepare an amendment extending the term of the lease for an additional five years. Amendment No. 7 to Lease Agreement No. 03-390, extends the term of the lease from December 1, 2019 through November 30, 2024, during which term OE will undertake projects as specified in the amendment, including the following top 10 projects:
a. Grade for curb and gutters; base and pave the streets for the Scenario Village project
b. Build storage pad for a container and equipment storage at the EVOC
c. Provide crane service to move equipment, receive shipments, lift HVAC units on roofs
d. Dig trenches for confined space training classes
e. Design and construct the annual Mud Run course
f. Relocate training buildings, grade and base parking area at classroom H and the RAC-House
g. Install an access entrance tunnel to the EVOC motor training area
h. Rebuild sediment ponds and spill ways
i. Crush and provide base and rock for erosion control and paving projects
j. Provide on-going trail maintenance, weather related repairs, erosion control, and maintain local fire breaks.
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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Lessee: |
Operating Engineers Funds, Inc. (Larry Hopkins, Administrator) |
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Location: |
SRTC 18958 Institution Road, Glen Helen area, San Bernardino |
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Size: |
Approximately 38.01 acres of land |
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Term: |
Five years commencing December 1, 2019 |
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Options: |
None |
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Rent: |
In-Kind Services in lieu |
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Improvement Costs: |
None |
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Maintenance: |
Provided by Lessee for Lessee’s equipment and modular classrooms |
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Utilities: |
County provides electricity, water, trash and sewer |
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Insurance: |
The Certificate of Liability Insurance, as required by the lease, is on file with RESD |
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Right to Terminate: |
Both parties have the right to terminate with 30-days’ written notice |
PROCUREMENT
Not applicable.
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 September 10, 2019; Sheriff (Jose Torres, Administrative Manager, 387-3648) on August 26, 2019; Finance (Monique Amis, Administrative Analyst, 387-4883 and Carolina Mendoza, Administrative Analyst, 387-0294) on October 11, 2019; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on October 21, 2019.
(KB: 677-7961)