REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
June 22, 2021
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
THOMAS W. SONE, Public Defender
SUBJECT
Title v
Amendment No. 2 to Lease Agreement with Civic Center Investors, LLC for Office Space for the Public Defender in Victorville
End
RECOMMENDATION(S)
Recommendation
1. Approve the Real Estate Services Department’s use of an alternative procedure in lieu of a formal Request for Proposals, as allowed per County Policy 12-02 - Leasing Privately Owned Real Property for County Use, to extend the term of Lease Agreement No. 14-333 with Civic Center Investors, LLC for three years, and add one three-year option to extend the term of the lease, for 1,569 square feet of office space at 14344 Cajon Street in Victorville for the Public Defender.
2. Approve Amendment No. 2 to Lease Agreement No. 14-333 with Civic Center Investors, LLC to extend the term of the lease three years for the period of July 1, 2021 through June 30, 2024, add one three-year option to extend the term of the lease, adjust the rental rate schedule, and update standard lease agreement language, for 1,569 square feet of office space for the Public Defender at 14344 Cajon Street in Victorville, in the amount of $133,296.
(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.
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost). The total cost of this three-year amendment is $133,296. Lease payments will be made from the Real Estate Services Department (RESD) Rents budget (7810001000) and reimbursed from the Public Defender (PD) budget (4913001000). Sufficient appropriation is included in the 2021-22 Rents and PD budgets and will be included in future recommended budgets. Annual lease costs are as follows:
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Year |
Annual Lease Cost |
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July 1, 2021 - June 30, 2022 |
$ 43,488 |
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July 1, 2022 - June 30, 2023 |
$ 44,436 |
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July 1, 2023 - June 30, 2024 |
$ 45,372 |
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Total Cost: |
$133,296 |
BACKGROUND INFORMATION
The recommended actions will amend an existing lease with Civic Center Investors, LLC by extending the term of the lease three years, for the period of July 1, 2021 through June 30, 2024, add one three-year option to extend the term of the lease, adjust the rental rate schedule, and update standard lease agreement language due to the continuing need for the PD in Victorville.
On May 20, 2014 (Item No. 63), the Board of Supervisors (Board) approved a five-year Lease Agreement No. 14-333, with one two-year option to extend the term of the lease for 1,569 square feet of office space at 14344 Cajon Street, First Floor, in Victorville. The original term of the lease was for the period of July 1, 2014 through June 30, 2019. In the seven years since the lease was originally approved, the Board has approved one amendment to extend the term of the lease, adjust the rental rate schedule, and update standard lease agreement language.
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Amendment No. |
Approval Date |
Item No. |
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1 |
June 25, 2019 |
43 |
The PD requested RESD extend the term of the lease through June 30, 2024, and add one three-year option to extend the term of the lease. Amendment No. 2 to Lease Agreement No. 14-333 extends the term of the lease three years, adds one three-year option to extend the term of the lease, adjusts the rental rate schedule, and updates standard lease agreement language. 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: |
Civic Center Investors, LLC (Jose Luis Andreu, Managing Member) |
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Location: |
14344 Cajon Street, First Floor, Victorville |
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Size: |
1,569 square feet of office space |
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Term: |
Three years commencing July 1, 2021 |
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Options: |
One three-year option |
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Rent: |
Cost per square foot: $2.31* full service gross |
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Monthly: $3,624 |
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Annual: $43,488 |
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*Mid-range for comparable facilities in the Victorville area per supporting lease comparables on file |
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Annual Increases: |
2% annual increases |
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Custodial: |
Provided by Lessor |
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Maintenance: |
Provided by Lessor |
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Utilities: |
Provided by Lessor, County to pay electrical costs in excess of $5,648 per lease year or $0.30 per square foot per month (electrical utility expense cap) subject to 3% annual increases |
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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: |
County has the right to terminate with 180-days’ notice |
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Parking: |
Sufficient for County needs |
PROCUREMENT
On May 20, 2014 (Item No. 63), the Board approved a five-year Lease Agreement No. 14-333, which was procured according to County Policy 12-02 - Leasing Privately Owned Real Property for County Use (Policy 12-02) using a Solicitation of Proposals (SOP) process to procure the requested office space. There are no remaining options to extend the term of the lease. In lieu of a formal Request for Proposals (RFP), Policy 12-02 provides that the Board may approve the use of an alternative procedure to extend the term of the lease for three years and add one three-year option to extend the term of the lease whenever the Board determines that compliance with the formal RFP requirements would unreasonably interfere with the financial or programmatic needs of the County, or when the use of an alternative procedure would otherwise be in the best interest of the County.
RESD, acting in its approved capacity as the County Administrative Office designee to review proposed real property leases under Policy 12-02, completed a competitive analysis of the market and found the current rent to be competitive. In addition, this site best meets the needs of the department. Therefore, RESD recommends the Board’s approval to extend the term of the lease three years for the period of July 1, 2021 through June 30, 2024 and add one three-year option to extend the term of the lease without the use of a formal RFP process.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Agnes Cheng, Deputy County Counsel and John Tubbs, Deputy County Counsel, 387-5455) on May 26, 2021; Public Defender (Diana Lovelace, Chief of Administration, 382-7651) on April 23, 2021; Purchasing Department (Bruce Cole, Supervising Buyer, 387-2148) on May 19, 2021; Finance (Carl Lofton, Administrative Analyst, 387-5404) on June 7, 2021; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423 and Kelly Welty, Deputy Executive Officer, 387-4376) on June 7, 2021.
(PN: 909-677-8321)