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Type:
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Consent
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Status:
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Passed
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On agenda:
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9/23/2025
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Final action:
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9/23/2025
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Subject:
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Revenue Lease Agreement with Consolidated Fire Agencies for Office and Rack Space at the Valley Communications Center in San Bernardino
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REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 23, 2025
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
SUBJECT
Title
Revenue 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 a Revenue Lease Agreement 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. Find that, pursuant to California Government Sections 25520 et seq. and 25365, a Revenue Lease Agreement with Consolidated Fire Agencies for a 20-year term, with one five-year option to extend, for the use of approximately 18,652 square feet of County-owned office space and nine communication rack spaces in San Bernardino is not required for County use, is in the public interest and that the Revenue Lease Agreement will not substantially conflict or interfere with the County’s use of the property (Four votes required).
3. Approve Revenue Lease Agreement, for a 20-year term, with one five-year option to extend the term of the lease, with a projected commencement date of January 1, 2026, through December 31, 2045, with Consolidated Fire Agencies for the use of approximately 18,652 square feet of County-owned office space and nine communication rack spaces in San Bernardino, for a total revenue amount comprised of a one-time lump sum rental payment of $2,000,000 and monthly rental payments totaling $8,442,358, for a combined total revenue of $10,442,358 over the term of the lease (Four votes required).
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.
Pursue County Goals and Objectives by Working with Other Agencies.
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 is $10,442,358. Revenue will be deposited in the Real Estate Services Department (RESD) Rents budget (7812001000). The annual revenue is as follows:
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Year |
Annual Lease Revenue |
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*January 1, 2026 |
$2,000,000 |
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**January 1, 2026 - December 31, 2026 |
$347,460 |
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January 1, 2027 - December 31, 2027 |
$354,409 |
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January 1, 2028 - December 31, 2028 |
$361,497 |
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January 1, 2029 - December 31, 2029 |
$368,727 |
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January 1, 2030 - December 31, 2030 |
$376,102 |
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January 1, 2031 - December 31, 2031 |
$383,624 |
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January 1, 2032 - December 31, 2032 |
$391,296 |
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January 1, 2033 - December 31, 2033 |
$399,122 |
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January 1, 2034 - December 31, 2034 |
$407,104 |
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January 1, 2035 - December 31, 2035 |
$415,246 |
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January 1, 2036 - December 31, 2036 |
$423,551 |
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January 1, 2037 - December 31, 2037 |
$432,023 |
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January 1, 2038 - December 31, 2038 |
$440,663 |
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January 1, 2039 - December 31, 2039 |
$449,476 |
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January 1, 2040 - December 31, 2040 |
$458,466 |
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January 1, 2041 - December 31, 2041 |
$467,635 |
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January 1, 2042 - December 31, 2042 |
$476,988 |
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January 1, 2043 - December 31, 2043 |
$486,528 |
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January 1, 2044 - December 31, 2044 |
$496,258 |
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January 1, 2045 - December 31, 2045 |
$506,183 |
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Total Revenue |
$10,442,358 |
*Projected date of a one-time lump sum payment
**Projected commencement date
BACKGROUND INFORMATION
The recommended action provides for a new 20-year Lease Agreement (Lease) with Consolidated Fire Agencies (CONFIRE), with one five-year option to extend, for the use of approximately 18,652 square feet of County-owned office and rack space, 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)]. The projected lease term is January 1, 2026, through December 31, 2045, with commencement contingent upon the County’s completion of site improvements, and the City of San Bernardino’s issuance of final building permits and a Certificate of Occupancy.
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, that is a new mission-critical facility that must be operational 365/24/7, under extreme conditions, as the primary Emergency Operations Center (EOC) in the San Bernardino Valley. The comprehensive 73,662 square foot facility on the 6.85-acre site is located at the southeast corner of Rialto Avenue and Lena Road where CONFIRE will occupy a portion totaling approximately 18,652 square feet. EOC Command staff that provide emergency support functions will vary in size and include 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 depending on the activation level. The facility will be capable of self-support and self-sufficiency over an extended duration of time and act as a stand-alone facility in the event of natural or manmade disasters.
The County Administration Office (CAO) requested that RESD prepare the new Lease for a projected commencement date of January 1, 2026, through December 31, 2045, for CONFIRE to occupy and operate dispatch and emergency operation response programs. The County may terminate the lease following the 18th year of the initial 20-year term by providing 24-months’ prior written notice.
The proposed Lease was reviewed pursuant to the California Environmental Quality Act and determined to be categorically exempt under 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 0279261170000 (portion), 0279271200000 (portion), 0279271170000 (portion), and 0279271160000 (portion) in San Bernardino |
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Size: |
Approximately 18,652 square feet and nine rack spaces |
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Term: |
20 years, projected commencement date January 1, 2026, and terminating December 31, 2045 |
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Options: |
One five-year option to extend the term |
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Rent: Office |
Monthly: $21,822.84* 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: |
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. Under Surplus Land Act Guidelines, Section 102(i)(2)(B), the proposed Lease is not subject to the Surplus Land Act because it is a lease on which no development or demolition will occur, regardless of the term of the lease.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, 387-5455) on August 26, 2025; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on August 21, 2025; and County Finance and Administration (Eduardo Mora, Administrative Analyst, 387-4376) on September 3, 2025.
(BR: 531-2674)
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