REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY FLOOD CONTROL DISTRICT
AND RECORD OF ACTION
November 18, 2025
FROM
NOEL CASTILLO, Chief Flood Control Engineer, Flood Control District
TERRY W. THOMPSON, Director, Real Estate Services Department
SUBJECT
Title
Amendment to Revenue Lease Agreement with RRM Properties, Ltd. for the Non-Exclusive Use of Flood Control District Land in San Bernardino
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of the San Bernardino County Flood Control District:
1. Find that approval of Amendment No. 5 to Revenue Lease Agreement No. 01-231 with RRM Properties, Ltd., for the non-exclusive use of 1.842 acres of San Bernardino County Flood Control District land, at the Southwest corner of West Base Line Street and University Parkway, known as Muscott Storm Drain, (Assessor’s Parcel Number 0269-231-17-0000), is exempt under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 5 to Revenue Lease Agreement No. 01-231 with RRM Properties, Ltd., for the non-exclusive use of 1.842 acres of San Bernardino County Flood Control District land, at the Southwest corner of West Base Line Street and University Parkway, known as Muscott Storm Drain, (Assessor’s Parcel Number 0269-231-17-0000) to:
a. Extend the term of the Revenue Lease Agreement for five years, through tenants’ exercise of its fourth of five five-year options to extend, for the period of January 1, 2026, through December 31, 2030.
b. Increase the total revenue amount by $23,055, which includes a permitted holdover fee of $9,880 for the period of April 1, 2021, through December 31, 2025, increasing the total revenue contract from approximately $28,415 to approximately $51,470.
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
Improve County Government Operations.
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
Approval of Amendment No. 5 (Amendment) to Revenue Lease Agreement No. 01-231 (Lease) will not result in the use of Discretionary General Funding (Net County Cost). The total revenue of this five-year Lease is $23,055, which includes $9,880 for the permitted holdover period from April 1, 2021, through December 31, 2025. Lease revenues will be received by the San Bernardino County Flood Control District (FCD) (1920002522). Annual revenues are as follows:
|
Year |
Annual Revenue |
|
*April 1, 2021 - December 31, 2025 |
$9,880 |
|
January 1, 2026 - December 31, 2026 |
$2,433 |
|
January 1, 2027 - December 31, 2027 |
$2,530 |
|
January 1, 2028 - December 31, 2028 |
$2,631 |
|
January 1, 2029 - December 31, 2029 |
$2,736 |
|
January 1, 2030 - December 31, 2030 |
$2,845 |
|
Total Revenue |
$23,055 |
*Holdover period
BACKGROUND INFORMATION
On March 27, 2001 (Item No. 46), the Board of Supervisors (Board) approved the Lease with Fourth Street Rock Crusher. The original term of the Lease was from April 1, 2001, through March 31, 2006, in the amount of $5,000. The Lease included five five-year options to extend the term. In the 20 years since the Lease was originally approved, the Board approved four amendments, three of which were options to extend the term, reflect a change of ownership to RRM Properties Ltd., and to update standard ease agreement language:
|
Amendment No. |
Approval Date |
Item No. |
|
1 |
December 6, 2005 |
35 |
|
2 |
May 16, 2006 |
55 |
|
3 |
March 22, 2011 |
54 |
|
4 |
December 6, 2016 |
82 |
On July 14, 2025, the Real Estate Services Department (RESD) initiated negotiations for an Amendment covering the term from January 1, 2026, through December 31, 2030. This followed a permitted month-to-month holdover period from April 1, 2021, through December 31, 2025, which was due to continued contract negotiations. All other terms and conditions of the Lease remain unchanged.
The recommended action will extend the Lease with RRM Properties Ltd. for the non-exclusive use of 1.842 acres of FCD land, at the Southwest corner of West Base Line Street and University Parkway, known as Muscott Storm Drain, Assessor’s Parcel Number (APN) 0269-231-17-0000 in San Bernardino (Premises). The Amendment extends the term for the period from January 1, 2026, through December 31, 2030, through RRM Properties, Ltd.’s exercise of its fourth of five five-year options to extend, adjusts the rental rate schedule and updates standard lease agreement language. All other Lease terms remain unchanged.
The project to approve this Amendment with RRM Properties, Ltd. was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under Section 15301 - Class 1 Existing Facilities because approval of a lease amendment for existing facilities is an exempt activity under CEQA. There is no possibility that the leasing of the subject property will have a significant effect on the environment; therefore, the activity is exempt from the provisions of CEQA.
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Summary of Lease Terms |
|
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Tenant: |
RRM Properties Ltd. |
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Location: |
Southwest corner of West Base Line Street and University Parkway, known as Muscott Storm Drain, (APN: 0269-231-17-0000) |
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Size: |
1.842 Acres |
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Term: |
Five years |
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Options: |
One remaining five-year option available |
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Rent: |
Monthly: $203 |
|
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Annual: $2,433 |
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*Mid-range for comparable facilities in the San Bernardino area per the competitive set analysis on file with RESD |
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Annual Increases: |
4% |
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Improvement Costs: |
None |
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Custodial: |
None |
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Maintenance: |
Tenant responsibility |
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Utilities: |
None |
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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 Lessor, the Tenant 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: |
Either party may terminate this Lease with at least 90 days prior to the date of termination |
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Parking: |
None |
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, and Sophie Curtis, Deputies County Counsel, 387-5455) on October 20, 2025; Flood Control District (Noel Castillo, Director,
387-7906) on October 17, 2025; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on October 16, 2025; and County Finance and Administration (Kathleen Gonzalez, 387-5412, and Eduardo Mora, 387-4376, Administrative Analysts) on October 30, 2025
(CM: 840-266-0977)