REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 22, 2026
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
SUBJECT
Title
License Agreement with Consolidated Fire Agencies, for County-Owned Real Property with Existing Building Improvements in Rialto
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of the License Agreement with Consolidated Fire Agencies for the non-exclusive use of approximately 1.68 acres of County-owned real property with existing building improvements located at 1743 Miro Way in Rialto (Assessor's Parcel Numbers 0240-261-56-0000 (portion), 0240-261-54-0000 (portion), 0240-261-13-0000 (portion), 0240-261-71-0000, and 0240-261-70-0000), is an exempt project under the California Environmental Quality Act Guidelines, Section 15301, Class 1 (Existing Facilities).
2. Find that approval of the License Agreement with Consolidated Fire Agencies for the non-exclusive use of approximately 1.68 acres of County-owned real property with existing building improvements located at 1743 Miro Way in Rialto (Assessor's Parcel Numbers 0240-261-56-0000 (portion), 0240-261-54-0000 (portion), 0240-261-13-0000 (portion), 0240-261-71-0000, and 0240-261-70-0000) is in the public interest and will not substantially interfere with the County's existing or future use of the property.
3. Authorize and approve the mutual termination of the holdover tenancy under Lease Agreement No. 10-991, effective upon the commencement date of the License Agreement in Recommendation No. 4, with both parties mutually waiving the 180-day notice requirement set forth in Paragraph 33 of Lease Agreement No. 10-991.
4. Approve License Agreement with Consolidated Fire Agencies for the non-exclusive use of approximately 1.68 acres (73,160 square feet) of County-owned real property with existing building improvements located at 1743 Miro Way in Rialto (Assessor's Parcel Numbers 0240-261-56-0000 (portion), 0240-261-54-0000 (portion), 0240-261-13-0000 (portion), 0240-261-71-0000, and 0240-261-70-0000), to:
a. Approve the term of the License Agreement for the period of September 30, 2026 through September 29, 2027, subject to earlier termination in accordance with the terms of the License Agreement.
b. Approve a total License Agreement fee of $1, with the parties acknowledging that Consolidated Fire Agencies previously negotiated upfront rent payment of $2,000,000, under Valley Communications Center Lease No. 25-745, as a component of this overall transaction and constitutes the consideration supporting the reduced license fee.
5. 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
Promote and Fulfill the Countywide Vision.
Improve County Government Operations.
FINANCIAL IMPACT
Approval of this item will not require Discretionary General Funding (Net County Cost). The total revenue to be received by the County during this License Agreement (License) of approximately 1.68 acres (73,160 square feet) of County-owned real property with existing building improvements located at 1743 Miro Way in Rialto (Assessor's Parcel Numbers 0240-261-56-0000 (portion), 0240-261-54-0000 (portion), 0240-261-13-0000 (portion), 0240-261-71-0000, and 0240-261-70-0000) (Property) is $1.
The parties acknowledge that the Consolidated Fire Agencies, a California Joint Powers Authority (Confire), previously negotiated upfront rent payment of $2,000,000 under the Valley Communications Center (VCC) Lease No. 25-745 (VCC Lease), is separate from the $1 License fee but constitutes consideration supporting the reduced license fee as part of the parties’ overall transaction. The $2,000,000 payment has not yet been received; it is due upon commencement date of the VCC Lease, which is contingent upon the County’s receipt of a Certificate of Occupancy for the VCC building in San Bernardino, currently under construction and estimated to be completed within the next six months. Confire will be responsible for maintenance, repairs, janitorial services, landscaping, utility connections, and utility costs associated with the licensed property. Revenue under the proposed license agreement will be deposited in the Real Estate Services Department (RESD) Rents budget (7812001000).
BACKGROUND INFORMATION
Confire has occupied portions of the Property since 2010 under Contract No. 10-991 dated November 2, 2010 (Item No. 41), as amended by a First Amendment dated November 15, 2016 (Item No. 40), a Second Amendment dated November 6, 2018 (Item No. 40), and a Third Amendment dated July 14, 2020 (Item No. 43) (collectively, the Prior Agreement). The Prior Agreement provided Confire with approximately 15,728 square feet of land and building area, including a 3,500 square foot office building, modular office units, and a storage container, for public safety and emergency communications operations.
The recommended action will provide for a new License Agreement (License) with Confire, for the period of September 30, 2026 through the earlier of September 29, 2027, or the date a Ground Lease for the Property is fully executed. The County and Confire are currently negotiating a long-term Ground Lease for the Property, and this interim License provides Confire with continued occupancy of the expanded Property for a period of up to one year to ensure uninterrupted operations during the transition from the Prior Agreement to the Ground Lease. Upon execution of the Ground Lease, this License shall terminate and be superseded. RESD anticipates bringing the Ground Lease and the amendment to VCC Lease to the Board of Supervisors (Board) for approval concurrently at a subsequent Board meeting, as the two transactions are mutually dependent components of the overall transaction.
The License fee of $1 for the full term reflects the parties' acknowledgment that Confire's previously negotiated upfront rent payment of $2,000,000 under VCC Lease dated September 25, 2025 (Item No. 79) constitutes the consideration supporting the reduced license fee and future ground rent. Under the proposed Ground Lease, Confire has agreed to amend the VCC Lease to reduce its leased VCC premises from approximately 18,652 square feet to approximately 12,586 square feet by relinquishing its right to occupy the entirety of the first floor of the VCC building, while maintaining the $2,000,000 upfront rent payment. The License and VCC Lease are mutually dependent components of the overall transaction.
As of the date of this Board’s action, the Sheriff's Dispatch Center remains active within the Property and will not vacate until those operations relocate to the VCC, upon receipt of Certificate of Occupancy, which is anticipated in approximately six months. Until such relocation is complete, the County will continue to provide utilities, custodial services, security services, and landscape services for the active dispatch areas (County-Retained Operations Areas). Confire's initial occupancy under this recommended License is limited to the vacant Office of Emergency Servies building. Upon relocation of the dispatch operations to the VCC, Confire will assume full maintenance and operational responsibility for the entire Property, and the parties will execute a supplemental acknowledgment documenting the transfer of the remaining buildings.
Under the License, Confire is solely responsible for all maintenance, repair, janitorial, landscaping, grounds maintenance, utility connections, and utility costs associated with the Property. The Property is delivered in its existing "as-is, where-is" condition with no County warranties. Confire is an authorized self-insured entity and warrants adequate coverage through its self-insurance program.
The proposed License with Confire was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under Section 15301 - Class 1 Existing Facilities because approval of a license for existing facilities is an exempt activity under CEQA. There is no possibility that the License of the subject property will have a significant effect on the environment; therefore, the activity is exempt from the provisions of CEQA.
|
Summary of License Terms |
|
|
Licensee: |
Consolidated Fire Agencies |
|
|
|
|
Location: |
1743 Miro Way, Rialto (APNs 0240-261-56-0000 (portion), 0240-261-54-0000 (portion), 0240-261-13-0000 (portion), 0240-261-71-0000, and 0240-261-70-0000 |
|
|
|
|
Size: |
Approximately 1.68 acres (73,160 SF), including all buildings and improvements |
|
|
|
|
Term: |
September 30, 2026 through the earlier of September 29, 2027, or execution of the Ground Lease |
|
|
|
|
Options: |
None |
|
|
|
|
Fee: |
$1 for the full term (consideration supported by Confire's $2,000,000 upfront rent payment under VCC Lease No. 25-745) |
|
|
|
|
Annual Increases: |
None |
|
|
|
|
Improvement Costs: |
Licensee’s responsibility |
|
|
|
|
Janitorial: |
Licensee’s responsibility |
|
|
|
|
Maintenance: |
Licensee’s responsibility |
|
|
|
|
Utilities: |
Licensee’s responsibility |
|
|
|
|
Insurance: |
Confire is self-insured; warrants adequate coverage through program of self-insurance |
|
|
|
|
Holdover: |
Upon the end of the term, if permitted by the County, the Licensee shall continue on a month-to-month term upon the same terms and conditions which existed at the time of expiration |
|
|
|
|
Right to Terminate: |
Either party has the right to terminate with 60 days’ notice |
|
|
|
|
Parking: |
Non-exclusive use of approximately 70 spaces, including 4 ADA-accessible |
PROCUREMENT
The County can grant the License to Confire, a public agency, upon a finding by the Board of Supervisors that the conveyance is in the public interest and that the interest in land conveyed will not substantially conflict or interfere with the use of the property by the County, in accordance with Government Code Section 25526.6.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, Deputy County Counsel, 387-5455) on September 3, 2026; Risk Management (Arrissia Beaven, Staff Analyst II, 386-9030) September 10, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on September 3, 2026; and County Finance and Administration (Eduardo Mora, Administrative Analyst, 387-4376) on September 4, 2026.
(LB: 453-5227)