REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 9, 2025
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
SUBJECT
Title
Lease Agreement with Jovi's Diner Corporation for Operation of Caf? Space at County Government Center in San Bernardino
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of a Lease Agreement with Jovi's Diner Corporation for caf? space is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class I).
2. Approve a Lease Agreement with Jovi's Diner Corporation for the lease of approximately 542 square feet of County-owned space located at 385 North Arrowhead Avenue in San Bernardino, for the operation of a caf? serving County employees and the public, for a five-year term, commencing upon the later of: (i) full execution of the lease agreement; or (ii) the County's receipt of permit approval for the premises from Environmental Health Services; with one five-year option to extend, for the minimum total rent of $5 for the term, plus 5% monthly gross revenue sales (Four votes required).
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, to exercise the County's early termination right, 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.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The total revenue to be received by the County for the five-year lease agreement (Lease) is a minimum of $5, plus 5% of monthly gross revenue sales, which is expected to cover the cost of maintenance and utilities. Revenue will be deposited in the Real Estate Services Department (RESD) Rents budget (7812001000). Minimum annual lease revenue is as follows:
Year
Revenue
Year 1
$1
Year 2
$1
Year 3
$1
Year 4
$1
Year 5
$1
Total Cost:
$5
BACKGROUND INFORMATION
On July 7, 2022, RESD issued a Solicitation for Proposals (SOP) pursuant to County Code section 18.0101 to solicit proposals to lease the preexisting caf? space located on the first floor of the County Government Center (CGC), located at 385 North Arrowhead Avenue in San Bernardino (Premises), for the purpose of operating a concession that provides coffee, other non-alcoholic beverages, grab and go sandwiches, and snack items to serve county employees, invitees, and members of the public. RESD did not receive proposals during the timeframe indicated in the SOP and the SOP concluded.
RESD continued diligently pursuing other options, and in July 2024, RESD began working with three potential caf? operators. RESD provided each potential operator the original SOP to review for reference and established August 16, 2024, as the deadline for new proposals to be received. All three proposals were submitted by the new deadline, and a committee was established to review. The committee was comprised of County staff from various departments, all located at the CGC. Through review, Jovi's Diner Corporation (Jovi's) was selected as the best fit for the caf? space.
Jovi's facility is located at 123 N. "E" Street in San Bernardino. Family-owned and operated by the Rodriguez family, the restaurant also includes a food truck and catering services for both small and large group settings, bringing over a decade of food service experience. They take pride in their great food and atmosphere.
RESD negotiated a five-year Lease, with one five-year option to extend with Jovi's. The Lease will commence the later of (i) full execution of the Lease or (ii) the County's receipt from Jovi's of permit approval from Environmental Health Services. Jovi's will be responsible for all permits and/or licensing requirement fees. The County will be responsible for the maintenance of the facility and all County-owned equipment. Jovi's is to be responsible for all operator-owned equipment, including a menu sign. They will be open to County employees, invitees and the public at the CGC caf? Monday through Thursday from 7:30 AM - 3:00 PM, and Friday from 8:00 AM - 2:00 PM, excluding County recognized holidays and official County closure dates. Nominal rent is the most appropriate plan given the restricted and limited access to the public, limited business hours, and closed building days in order to support the continued operation of an employee caf? in the CGC. Jovi's shall not modify the operating hours for the caf? or temporarily close all or any portion of the caf? without the prior written consent from the County. Either party may terminate the Lease with a written 90-day notice.
The project to approve the Lease 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
Lessee:
Jovi's Diner Corporation
Jovanna Rodriguez, Owner
Location:
385 North Arrowhead Avenue, San Bernardino, CA 92415
Size:
Approximately 542 square feet of caf? space
Term:
Five years
Options:
One five-year option
Annual Rent:
$1 per year, for a minimum total of $5 over the initial five-year term, plus 5% of monthly gross revenue sales
*Low-range for comparable facilities in the San Bernardino area per the competitive set analysis on file with RESD
Percent Rent:
5% of monthly gross revenues, payable by the 10th day of the following month.
Annual Increases:
None
Improvement Costs:
None
Custodial:
Provided by Lessee
Maintenance:
Provided by County for Premises and county-owned personal property; Provided by Lessee for lessee-owned property
Utilities:
Provided by County
Insurance:
The Certificate of Liability Insurance, as required by the Lease, is on file with RESD
Holdover:
Month-to-month term upon the same terms and conditions, including the rent which existed at the time of expiration
Right to Terminate:
Either party may terminate the lease with a 90-day written notice
Parking:
Sufficient for Lessee needs
PROCUREMENT
Jovi's Diner Corporation was determined by the evaluation committee to be the best-qualified proposer based on its operational experience and ability to meet the County's needs for caf? service at the County Government Center. Pursuant to Government Code Section 25536, the Board may approve the direct lease or sublease of all or any portion of county-owned property devoted to use for employee cafeteria purposes with a four-fifths vote.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, Deputy County Counsel, 387-5455) on August 7, 2025; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on August 7, 2025; and County Finance and Administration (Eduardo Mora, 387-4376, Administrative Analyst) on August 20, 2025.
(YG: 655-0268)