REPORT/RECOMMENDATION TO THE BOARD OF DIRECTORS
OF SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT
AND RECORD OF ACTION
December 7, 2021
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
DAN MUNSEY, Fire Chief/Fire Warden, San Bernardino County Fire Protection District
SUBJECT
Title
Amendment to Lease Agreement with Summitview Capital, Inc. for Office Space for the San Bernardino County Fire Protection District - Office of the Fire Marshal in San Bernardino
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of the San Bernardino County Fire Protection District, approve Amendment No. 9 to Lease Agreement No. 02-37 with Summitview Capital, Inc. to reflect a change in property ownership from Lakeside RE Holdings, LLC to Summitview Capital, Inc. for approximately 21,977 square feet of office space with no change to the cost or term of the lease agreement for the San Bernardino County Fire Protection District - Office of the Fire Marshal located at 620 South E Street in San Bernardino.
(Presenter: Terry W. Thompson, Director, 387-5000)
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COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Provide for the Safety, Health and Social Service Needs of County Residents.
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). There is no cost associated with this amendment to reflect a property ownership change.
BACKGROUND INFORMATION
The recommended action will amend an existing lease agreement to reflect a change in property ownership from Lakeside RE Holdings LLC to Summitview Capital, Inc. for approximately 21,977 square feet of office space located at 620 South E Street in San Bernardino for the San Bernardino County Fire Protection District - Office of the Fire Marshal (SBCFPD).
On January 15, 2002 (Item No. 50), the Board of Supervisors (Board) approved a seven-year Lease Agreement, No. 02-37, with one three-year option to extend the term of the lease for 21,977 square feet of office space at 620 South E Street in San Bernardino. The original term of the lease was for the period of April 1, 2002 through March 31, 2009. In the 19 years since the lease was originally approved, the Board has approved eight amendments extending the term of the lease through March 31, 2024, reducing the monthly rent, adding additional options to extend the term of the lease, providing for tenant improvements, reflecting changes of property ownership, and updating standard lease agreement language.
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Amendment No. |
Approval Date |
Item No. |
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1 |
April 9, 2002 |
39 |
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2 |
April 27, 2007 |
29 |
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3 |
May 12, 2009 |
68 |
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4 |
August 7, 2012 |
57 |
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5 |
March 17, 2015 |
62 |
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6 |
March 22, 2016 |
90 |
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7 |
March 20, 2018 |
62 |
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8 |
March 23, 2021 |
75 |
Amendment No. 9 reflects a change of property ownership from Lakeside RE Holdings, LLC to Summitview Capital, Inc. All other terms and conditions of the lease remain unchanged.
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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Lessor: |
Summitview Capital Inc. |
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Location: |
620 South E Street, San Bernardino |
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Size: |
21,977 square feet of office space |
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Term: |
Three years, which commenced April 1, 2021 |
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Options: |
None |
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Rent: |
Cost per sq. ft. per month: $1.01* modified gross |
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Monthly: $22,120 |
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Annual: $265,440 |
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*Low -range for comparable facilities in the San Bernardino 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 SBCFPD |
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Maintenance: |
Provided by Lessor |
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Utilities: |
Provided by SBCFPD |
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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: |
SBCFPD may terminate the lease with 90-days’ notice; should the lease be terminated the landlord shall be entitled to the rent which would have been earned at the date of termination of the lease, plus a sum equal to the base rent for the three-month period immediately following such termination, as a termination fee, less the amount of $11,208.27 |
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Parking: |
Sufficient for SBCFPD needs |
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Agnes Cheng, Deputy County Counsel, and Scott Runyan, Supervising Deputy County Counsel, 387-5455) on November 2, 2021; San Bernardino County Fire Protection District (Katrina Turturro, Deputy Fire Chief of Business Operations, 387-9605) on October 28, 2021; Finance (Carl Lofton, Administrative Analyst, 387-4020 and Tom Forster, Administrative Analyst, 387-4635) on November 16, 2021; and County Finance and Administration (Diana Atkeson, Deputy Executive Officer, 387-4376) on November 16, 2021.
(JAG: 677-8210)