REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
March 24, 2026
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
SHANNON D. DICUS, Sheriff/Coroner/Public Administrator
SUBJECT
Title
Amendment to Use Permit with the City of Needles for Office Space
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 3 to Use Permit No. 14-47 with the City of Needles for office space is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 3 to Use Permit No. 14-47 to:
a. Extend the term of the Use Permit for approximately 4,005 square feet of office space for a two-year period, from April 1, 2026 through March 31, 2028, following a permitted month-to-month holdover for the period of October 25, 2025 through March 31, 2026, at a total cost of $23,020, while a new Use Permit amendment was finalized.
b. Adjust the Rental Rate schedule for the two-year term from April 1, 2026 through March 1, 2028, in the amount of $135,952.
c. Increase the total Use Permit amount by $135,952, from $259,534 to a new total amount of $395,486.
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
Operate in a Fiscally Responsible and Business-Like Manner.
Promote and Fulfill the Countywide Vision
FINANCIAL IMPACT
This item will not result in the use of Discretionary General Funding (Net County Cost). The total cost of Amendment No. 3 (Amendment) to Use Permit No. 14-47 (Use Permit) is $135,952, which includes a holdover cost in the amount of $23,020 for the permitted month-to-month holdover period. Use Permit payments will be made from the Real Estate Services Department (RESD) Rents budget (7810001000) and reimbursed from the Sheriff/Coroner/Public Administrator (Sheriff) budget (4430001000). Estimated other costs associated with this Amendment include heating, ventilation, and air conditioning system (HVAC) maintenance, custodial services, utility costs, and building maintenance in the amount of $91,484, which will be paid directly from the Sheriff’s budget. Sufficient appropriation is included in the 2025-2026 RESD and Sheriff’s budgets and will be included in future recommended budgets. Annual Use Permit costs are as follows:
|
Year |
Annual Rent |
Estimate of Other Costs Associated With This Use Permit |
|
*October 25, 2025 - March 31, 2026 |
$23,020 |
$816 |
|
April 1, 2026 - March 31, 2027 |
$55,632 |
$44,664 |
|
April 1, 2027 - March 31, 2028 |
$57,300 |
$46,004 |
|
Total Cost: |
$135,952 |
$91,484 |
*Permitted Holdover period
BACKGROUND INFORMATION
On February 12, 2014 (Item No. 28), the Board of Supervisors (Board) approved the Use Permit with the City of Needles (City) for 2,031 square feet of office space located at 1111 Bailey Avenue, Building C, in Needles. The original term of the Use Permit was month-to-month, commencing upon mutual execution of the Use Permit. In the 12 years since the original approval of the Use Permit, the Board has approved two amendments that corrected the square footage and expanded the use area from 2,031 square feet to a total use area of 4,005 square feet, converted the month-to-month term to fixed terms, established a monthly rental rate, and expanded the County maintenance obligations from HVAC only maintenance to full building maintenance.
|
Amendment No. |
Approval Date |
Item No. |
|
1 |
October 25, 2022 |
77 |
|
2 |
August 22, 2023 |
70 |
This Use Permit entered holdover on October 25, 2025, due to the County’s protracted negotiations with the City to purchase the entire building. Continued occupancy was necessary to avoid disruption of Sheriff operations serving the Needles area. The holdover period occurred under the same terms and rental rate previously approved by the Board. As the negotiations continued, RESD notified Sheriff that the Use Permit would need to be renewed to avoid a month-to-month term. RESD conducted a market survey of comparable properties in the Needles area and determined that the proposed rental rate of $1.16 per square foot per month is consistent with current market conditions in the Needles and surrounding areas. Sheriff requested a two-year renewal of the Use Permit due to its intention to potentially purchase the building. A separate item will be brought forward for the Board’s consideration should the County proceed with successful purchase of the building, at which time the Use Permit would be terminated.
Approval of this Amendment is recommended for a fixed term of April 1, 2026 through March 31, 2028, following a permitted holdover from October 25, 2025 to March 31, 2026.
The project to approve the Use Permit was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under CEQA Guidelines Section 15301 - Existing Facilities (Class 1), because the approval of an amendment to a Use Permit upon agreement for an existing facility is an exempt activity under CEQA. There is no possibility that the use of the subject property will have a significant effect on the environment; therefore, the activity is not subject to the provisions of CEQA.
|
Summary of Use Permit Terms |
|
|
Lessor: |
City of Needles Patrick Martinez, City Manager |
|
|
|
|
Location: |
1111 Bailey Avenue, Building C, Needles |
|
|
|
|
Size: |
Approximately 4,005 square feet of office space |
|
|
|
|
Term: |
Two years commencing April 1, 2026 |
|
|
|
|
Options: |
None |
|
|
|
|
Rent: |
Cost per square foot per month: $1.16* Monthly: $4,636.00 |
|
|
Annual: $55,632.00 |
|
|
*Mid-range for comparable facilities in the Needles area per the competitive set analysis on file with RESD |
|
|
|
|
Annual Increases: |
Approximately 3% |
|
|
|
|
Improvement Costs: |
Provided by County |
|
|
|
|
Custodial: |
Provided by County |
|
|
|
|
Maintenance: |
Provided by County |
|
|
|
|
Utilities: |
Provided by County |
|
|
|
|
Insurance: |
Both entities are self-insured public agencies |
|
|
|
|
Holdover: |
Upon the end of the term, if permitted by Lessor, the Use Permit shall continue on a month-to-month term upon the same terms and conditions which existed at the time of expiration |
|
|
|
|
Right to Terminate: |
Upon default by either party |
|
|
|
|
Parking: |
Sufficient for County needs |
PROCUREMENT
The Use Permit is excepted from the provisions of County Policy 12-02 - Leasing Privately Owned Real Property for County Use because it is owned by a governmental agency.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II and Grace Parsons, Deputies County Counsel, 387-5455) on February 24, 2026; Sheriff/Coroner/Public Administrator (Jose Torres, Administrative Manager, 387-3648) on February 19, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on February 18, 2026; County Finance and Administration (Erika Rodarte, 387-4919, and Eduardo Mora, 387-4376, Administrative Analysts) on March 5, 2026.
(PJH:665-4890)