Legislation Details

File #: 1755   
Type: Consent Status: Passed
File created: 3/2/2020 Department: Real Estate Services
On agenda: 3/10/2020 Final action: 3/10/2020
Subject: Amendment No. 4 to Lease Agreement with Victor Valley Hospital Acquisition, Inc. dba Victor Valley Global Medical Center for Office Space for the Department of Public Health, Women, Infants and Children Program in Victorville
Attachments: 1. CON-RESD-DPH-WIC-031020-Amd w Victor Valley Hospital Acquisition-08-1249 A4, 2. Item #50 Executed BAI, 3. 08-1249 A-4 Executed Agreement

REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS

OF THE COUNTY OF SAN BERNARDINO

AND RECORD OF ACTION

 

March 10, 2020

 

FROM

TERRY W. THOMPSON, Director, Real Estate Services Department

TRUDY RAYMUNDO, Director, Department of Public Health

        

SUBJECT                      

Title                     

Amendment No. 4 to Lease Agreement with Victor Valley Hospital Acquisition, Inc. dba Victor Valley Global Medical Center for Office Space for the Department of Public Health, Women, Infants and Children Program 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. 08-1249 with Victor Valley Hospital Acquisition, Inc. dba Victor Valley Global Medical Center for three years from April 1, 2020 to March 31, 2023 and add two three-year options to extend the term of the lease for the Department of Public Health, Women, Infants and Children Program in Victorville.

2.                     Approve Amendment No. 4 to Lease Agreement No. 08-1249 with Victor Valley Hospital Acquisition, Inc. dba Victor Valley Global Medical Center, to extend the term of the lease for three years for the period of April 1, 2020 through March 31, 2023, add two three-year options extending the term of the lease, and update standard lease agreement language for 3,903 square feet of office space at 15247 Eleventh Street in Victorville for the Department of Public Health, Women, Infants and Children Program in the amount of $295,056.

(Presenter: Terry W. Thompson, Director, 387-5000)

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 require additional Discretionary General Funding (Net County Cost).  The total cost of this three-year amendment is $295,056.  Lease payments will be made from the Rents budget (7810001000) and reimbursed from the Department of Public Health (DPH) Women, Infants and Children (WIC) budget (9300061000), which is 100% federally funded. Sufficient appropriation is included in the 2019-20 Rents and DPH budgets and will be included in future recommended budgets.  Annual lease costs are as follows:

 

Year

Annual Lease Cost

April 1, 2020 - March 31, 2021

$96,480

April 1, 2021 - March 31, 2022

$98,352

April 1, 2022 - March 31, 2023

$100,224

Total Cost

$295,056

 

BACKGROUND INFORMATION

The recommended action will amend an existing lease with Victor Valley Hospital Acquisition, Inc. dba Victor Valley Global Medical Center to reflect an extension of the term of the lease from April 1, 2020 through March 31, 2023, add two three-year options to extend the term of the lease, adjust the rental rate, and update standard lease agreement language because of the continuing need to provide (WIC) services in the Victorville area.

 

On December 16, 2008 (Item No. 48), the Board of Supervisors (Board) approved a five-year lease agreement, No. 08-1249, with two three-year options to extend the term of the lease for 3,198 square feet of office space for the DPH WIC program located at 15247 Eleventh Street in Victorville.  The original term of the lease was for the period of April 1, 2009 to March 31, 2014.  In the 12 years since the lease was originally approved, the Board has approved the following three amendments to exercise options to extend the term of the lease, increase the square footage by 705 square feet, increase the rent, reflect a change of property ownership, and update standard lease agreement language.

 

Amendment No.

Approval Date

Item No.

1

March 11, 2014

25

2

December 16, 2014

60

3

March 28, 2017

45

 

With a continuing need for WIC to provide services in this area of Victorville, DPH requested the Real Estate Services Department (RESD) extend the term of the lease three years for the period of April 1, 2020 through March 31, 2023, add two three-year options to extend the term, adjust the rent, and update 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.

 

Summary of Lease Terms

 

 

 

Lessor:

Victor Valley Hospital Acquisition, Inc. dba Victor Valley Global Medical Center (Suzanne Richards, Chief Executive Officer)

 

 

Location:

15247 Eleventh Street, Victorville

 

 

Size:

3,903 square feet of office space

 

 

Term:

Three years commencing April 1, 2020

 

 

Options

Two three-year options

 

 

Rent:

Cost per sq. ft. per month:  $2.06 Full Service Gross

 

Monthly:  $8,040

 

Annual:  $96,480

 

*Mid-range for comparable facilities in the Victorville area per the competitive set analysis on file with RESD

 

 

Annual Increases:

2%

 

 

Improvement Costs:

None

 

 

Custodial

Provided by Lessor

 

 

Maintenance:

Provided by Lessor

 

 

Utilities:

Provided by Lessor

 

 

Insurance:

The Certificate of Liability Insurance, as required by the lease, is on file with RESD

 

 

Right to Terminate:

County has the right to terminate with 90-days’ notice

 

 

Parking:

Sufficient for county needs

 

PROCUREMENT

On December 16, 2008 (Item No. 48), the Board approved Lease Agreement No. 08-1249, which was procured via a Solicitation of Proposals (SOP) pursuant to County Policy 12-02 - Leasing Privately Owned Real Property for County Use (Policy).  Extending the term of the lease would normally require a Formal Request for Proposals (Formal RFP) process.  The Policy also provides that the Board may approve the use of an alternative procedure to the Formal RFP process 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 completed a competitive analysis of the area and found the negotiated rental rate for the extended term is competitive and the department would avoid considerable moving expenses if WIC stays in the current location. WIC is requesting the Board approve an alternative procedure, as provided in the Policy, to extend the term three years and add two three-year options to extend the term of the lease as this facility best meets the requirements of WIC to provide services to clients in the Victorville area.

  

REVIEW BY OTHERS

This item has been reviewed by County Counsel (Agnes Cheng, Deputy County Counsel, and Adam Ebright, Deputy County Counsel, 387-5455) on February 11, 2020; Department of Public Health (Corwin Porter, Assistant Director, 387-6218) on January 9, 2020; Purchasing Department (Michelle Churchill, Supervising Buyer, 387-2070) on January 29, 2020; Finance (Paul Garcia, Administrative Analyst, 386-8392 and Monique Amis, Administrative Analyst, 387-4883) on February 18, 2020 and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on February 24, 2020.

 

(PN: 677-8321)