REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 26, 2023
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
TRACY REECE, Chief Probation Officer, Probation Department
SUBJECT
Title
Amendment to Expense Lease Agreement with R&L Management Services, LLC for Office Space in Victorville
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 4 to Expense Lease Agreement No. 12-753 with R&L Management Services, LLC for office space, is an exempt project under the California Environmental Quality Act Guidelines Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 4 to Expense Lease Agreement No. 12-753 with R&L Management Services, LLC, to extend the term of the lease three years, by exercising a three-year option for the period of November 1, 2023 through October 31, 2026, adjust the rent schedule, and update standard lease agreement language, for approximately 9,384 square feet of office space, for the Probation Department located at 15345 Bonanza Road in Victorville, in the amount of $695,916.
3. Direct the Clerk of the Board of Supervisors to file and post the Notice of Exemption for the project as required under the California Environmental Quality Act.
(Presenter: Terry W. Thompson, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Provide for the Safety, Health and Social Service Needs of County Residents.
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 cost of this three-year amendment to Expense Lease Agreement No. 12-753 (Lease) is $695,916. Lease payments will be made from the Real Estate Services Department (RESD) Rents budget (7810001000) and reimbursed from the Probation Department (PRB) budget (4810001000), which is 100% federally funded. Sufficient appropriation is included in the 2023-24 Rents and Department budgets and will be included in future recommended budgets. Annual lease costs are as follows:
|
Year |
Annual Lease Cost |
|
November 1, 2023 - October 31, 2024 |
$225,216 |
|
November 1, 2024 - October 31, 2025 |
$231,972 |
|
November 1, 2025 - October 31, 2026 |
$238,728 |
|
Total Cost |
$695,916 |
BACKGROUND INFORMATION
The recommended action will amend the existing Lease with R&L Management Services, LLC (R&L) to reflect San Bernardino County (County) extending the term of the Lease, by exercising a three-year option. The amendment will adjust the rental schedule and update standard lease agreement language because of the continuing need to provide PRB services in the Victorville area.
On October 23, 2012 (Item No. 56), the Board of Supervisors (Board) approved the two-year Lease, with one, one-year option to extend the term of the Lease for 9,384 square feet of office space at 15345 Bonanza Road in Victorville. The original term of the Lease was for the period of November 1, 2012 through October 31, 2014. In the 11 years since the Lease was originally approved, the Board has approved three amendments to extend the term through October 31, 2023, adjust the rent schedule, add options to extend the term, and update standard lease agreement language.
|
Amendment No. |
Approval Date |
Item No. |
|
1 |
July 22, 2014 |
46 |
|
2 |
October 20, 2015 |
48 |
|
3 |
September 29, 2020 |
56 |
With a continuing need for PRB to provide services in this area of Victorville, PRB requested RESD prepare an amendment to extend the term of the Lease by three years through the County’s exercise of its three-year extension option, while retaining one, one-year option to extend the term. All other terms and conditions of the Lease remain unchanged.
A companion item on today’s agenda recommends the Board approve a three-year extension for the Lease with Woon Baek Chung and Gae Chun Chung for a 22,145 square foot parking lot with 42 parking spaces for PRB, located on Bonanza Road in Victorville (Assessor’s Parcel Number 0396-071-06) for the corresponding period of November 1, 2023 through October 31, 2026.
The project to approve Amendment No. 4 to the Lease with R&L was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under Guidelines Section 15301 - Existing Facilities (Class 1) because there is no possibility that the leasing of the subject property will have a significant effect on the environment; therefore, the activity is not subject to the provisions of CEQA.
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Summary of Lease Terms |
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Lessor: |
R&L Management Services, LLC (Ruben Mansuryan, Manager) |
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Location: |
15345 Bonanza Road, Victorville |
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Size: |
9,384 square feet of office space |
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Term: |
Three years commencing on November 1, 2023 |
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Options: |
One, one-year option |
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Rent: |
Cost per square foot per month: $2.00* |
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Monthly: $18,768 |
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Annual: $225,216 |
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*Mid-range for comparable facilities in the Victorville area per the competitive set analysis on file with RESD |
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Annual Increases: |
3% |
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Improvement Costs: |
None |
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Custodial: |
Provided by Lessor |
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Maintenance: |
Provided by Lessor |
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Utilities: |
Provided by Lessor |
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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: |
With the Consent of the Landlord with the same terms and conditions, including rent |
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Right to Terminate: |
County has the right to terminate with 90-days’ notice |
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Parking: |
Sufficient for County needs |
PROCUREMENT
Amendments of existing leases are exempt from the requirement for a formal Request for Proposal process as provided in County Policy 12-02 - Leasing Privately Owned Real Property for County Use, provided the amendment does not exceed the maximum term (including options) of the Lease.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, Deputy County Counsel, and Maria Insixiengmay, Deputy County Counsel, 387-5455) on August 8, 2023; Probation (Thomas Kamara, Director of Probation Administration, 387-5822) on August 9, 2023; Purchasing (Michelle Churchill, Supervising Buyer, 387-2070) on August 21, 2023; Finance (Kathleen Gonzalez, Administrative Analyst, 387-5412, and Garrett Baker, Administrative Analyst, 387-3077) on August 31, 2023; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on August 31, 2023.
(PN: 677-8321)