REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
October 8, 2019
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
TRUDY RAYMUNDO, Director, Department of Public Health
SUBJECT
Title
Amendment No. 8 to Lease Agreement with John R. Hosman, LLC for Office and Clinic Space for the Department of Public Health in Twentynine Palms
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 8 to Lease Agreement No. 98-423 with John R. Hosman, LLC, to reflect a change of property ownership from George Robert Croft and So Duk Croft, trustees of the George Robert Croft and So Duk Croft Family Trust dated December 27, 2001 and Rocky Moore and Ginger Moore, trustees of the Moore Family Trust dated May 26, 2000, and provide updates to standard lease agreement language for 1,800 square feet of office and clinic space located at 6527 Desert Queen Avenue for the Department of Public Health, Women, Infants, and Children Program in Twentynine Palms at no cost.
(Presenter: Terry W. Thompson, Director, 387-5252)
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) as there is no cost to the County associated with this amendment to reflect a change of ownership.
BACKGROUND INFORMATION
The recommended action will amend the existing lease to reflect a change of property ownership from George Robert Croft and So Duk Croft, trustees of the George Robert Croft and So Duk Croft Family Trust dated December 27, 2001 and Rocky Moore and Ginger Moore, trustees of the Moore Family Trust dated May 26, 2000 to John R. Hosman, LLC, and update standard lease agreement language.
On June 16, 1998 (Item No. 14), the Board of Supervisors (Board) approved a five-year lease agreement, No. 98-423, with three two-year options to extend the term of the lease for 1,800 square feet of office and clinic space located at 6527 Desert Queen Avenue in Twentynine Palms. The original term of the lease was for the period of September 1, 1998 through August 31, 2003. In the 21 years since the lease was originally approved, the Board has approved seven amendments to adjust the monthly rent, extend the term of the lease, change the property ownership, add options to extend the term of the lease, and update standard lease agreement language.
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Amendment No. |
Approval Date |
Item No. |
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1 |
November 18, 2003 |
48 |
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2 |
August 16, 2005 |
25 |
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3 |
August 7, 2007 |
45 |
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4 |
July 14, 2009 |
41 |
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5 |
July 10, 2012 |
44 |
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6 |
August 25, 2015 |
42 |
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7 |
October 16, 2018 |
37 |
The Real Estate Services Department (RESD) was notified on August 6, 2019 that John R. Hosman, LLC had completed its acquisition of the premises. Amendment No. 8 to Lease Agreement No. 98-423 reflects a change in property ownership from George Robert Croft and So Duk Croft, trustees of the George Robert Croft and So Duk Croft Family Trust dated December 27, 2001 and Rocky Moore and Ginger Moore, trustees of the Moore Family Trust dated May 26, 2000 to John R. Hosman, LLC effective August 6, 2019 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: |
John R. Hosman, LLC (John R. Hosman, Member) |
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Location: |
6527 Desert Queen Avenue, Twentynine Palms |
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Size: |
1,800 square feet of office and clinic space |
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Term: |
Three years commencing November 1, 2018 |
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Options: |
None |
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Rent: |
Cost per sq. ft. per month: $1.25* modified gross* |
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Monthly: $2,250 |
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Annual: $27,000 |
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*Mid-range for comparable facilities in the Twentynine Palms area per the competitive set analysis on file with RESD |
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Annual Increases: |
Approximately 2% |
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Improvement Costs: |
None |
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Custodial: |
Provided by County |
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Maintenance: |
Provided by Lessor |
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Utilities: |
Provided by Lessor except that County pays for interior electric and gas and telephone service |
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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 90-days’ notice after October 31, 2021 |
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Parking: |
Sufficient for County needs |
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Agnes Cheng, Deputy County Counsel, Adam Ebright, Deputy County Counsel, and Luke Wooley, Deputy County Counsel, 387-5455) on August 23, 2019; Department of Public Health (Corwin Porter, Assistant Director, 387-6218) on August 1, 2019; Purchasing Department (Michael Candelaria, Buyer III, 387-0321) on August 8, 2019; Finance (Paul Garcia, Administrative Analyst, 386-8392 and Wen Mai, Principal Administrative Analyst, 387-4020) on September 20, 2019; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on September 22, 2019.
(PN: 677-8321)