Legislation Details

File #: 1818   
Type: Consent Status: Passed
File created: 3/3/2020 Department: Real Estate Services
On agenda: 3/10/2020 Final action: 3/10/2020
Subject: Amendment No. 3 to Lease Agreement with Brett A. Tiano and Kiki M. Tiano, as Trustees of The Brett and Kiki Tiano Living Trust of 1991 dated August 22, 1991 as amended and restated on February 4, 2004, Trust "1" for Library and Office Space for the County Library in Joshua Tree
Attachments: 1. CON-RESD-LIB-031020-Amd w Brett A. Tiano in Joshua Tree-05-206 A3.pdf, 2. Item #49 Executed BAI, 3. 05-206 A-03 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

MICHAEL JIMENEZ, County Librarian, County Library

     

SUBJECT                      

Title                     

Amendment No. 3 to Lease Agreement with Brett A. Tiano and Kiki M. Tiano, as Trustees of The Brett and Kiki Tiano Living Trust of 1991 dated August 22, 1991 as amended and restated on February 4, 2004, Trust “1” for Library and Office Space for the County Library in Joshua Tree

End

 

RECOMMENDATION(S)

Recommendation

Approve Amendment No. 3 to Lease Agreement No. 05-206 with Brett A. Tiano and Kiki M. Tiano, as Trustees of The Brett and Kiki Tiano Living Trust of 1991 dated August 22, 1991 as amended and restated on February 4, 2004, Trust “1” to reflect the County’s exercise of the final option extending the term of the lease five years for the period of April 1, 2020 through March 31, 2025, adjusting the rent schedule, and updating the standard lease agreement language for 2,000 square feet of library and office space for the County Library located at 6465 Park Boulevard in Joshua Tree in the total amount of $126,000 for the extended term. 

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

Body

 

COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES

Operate in a Fiscally-Responsible and Business-Like Manner

Provide for the Safety, Health and Social Service Needs of County Residents.

 

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 five-year amendment is $126,000.  Lease payments will be made from the Rents budget (7810001000) and reimbursed from the Library budget (6402142600).  Other costs include custodial and electrical utility expenses, which will be paid from the Library budget.  Sufficient appropriation is included in both the Library and Rents 2019-20 budgets and will be included in future recommended budgets.  Annual lease costs are as follows: 

 

 Year

 Annual Lease Cost*

Estimate of Other Costs Associated With This Lease

April 1, 2020 - March 31, 2021

$  25,200

$11,593

April 1, 2021 - March 31, 2022

$  25,200

$11,941

April 1, 2022 - March 31, 2023

$  25,200

$12,299

April 1, 2023 - March 31, 2024

$  25,200

$12,668

April 1, 2024 - March 31, 2025

$  25,200

$13,048

Total Cost

$126,000

$61,549

*as adjusted annually in accordance with the Consumer Price Index (CPI)

 

BACKGROUND INFORMATION

The recommended action will amend an existing lease with Brett A. Tiano and Kiki M. Tiano, as Trustees of The Brett and Kiki Tiano Living Trust of 1991 dated August 22, 1991 as amended and restated on February 4, 2004, Trust “1” (Tiano) by extending the term of the lease five years for the period of April 1, 2020 through March 31, 2025 due to the County’s exercise of its remaining option to extend the term of the lease, adjusting the rent schedule, and updating standard lease agreement language due to the continuing need to provide library and office space for the County Library in the Joshua Tree area. 

 

On March 29, 2005 (Item No. 47), the Board of Supervisors (Board) approved a five-year lease agreement, No. 05-206, with one five-year option to extend the term of the lease for 2,000 square feet of library and office space at 6465 Park Boulevard in Joshua Tree.  The original term of the lease was for the period of April 1, 2005 through March 31, 2010.  In the 15 years since the lease was originally approved, the Board has approved two amendments to extend the term of the lease through March 31, 2020, add options to extend the term of the lease, modify the rent schedule, and update standard lease agreement language.

 

Amendment No.

Approval Date

Item No.

1

March 23, 2010

58

2

March 3, 2015

47

 

With a continuing need for Library services in Joshua Tree, Library requested the Real Estate Services Department (RESD) prepare an amendment to extend the term of the lease by exercising the final five-year option for the period of April 1, 2020 through March 31, 2025, adjust the rental rate schedule, 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:

Brett A. Tiano and Kiki M. Tiano, as Trustees of The Brett and Kiki Tiano Living Trust of 1991 dated August 22, 1991 as amended and restated on February 4, 2004, Trust “1”  (Brett A. Tiano, Trustee)

 

 

Location:

6465 Park Boulevard, Joshua Tree

 

 

Size:

2,000 square feet

 

 

Term:

Five years commencing April 1, 2020

 

 

Options

None

 

 

Rent:

Cost per sq. ft. per month:  $1.05

 

Monthly:  $2,100

 

Annual:  $25,200

 

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

 

 

Annual Increases:

CPI

 

 

Improvement Costs:

None

 

 

Custodial

Provided by County

 

 

Maintenance:

Provided by Lessor at no additional cost, County provides interior light bulb replacement

 

 

Utilities:

Lessor provides water and sewer at no additional cost; County provides electricity, gas and trash service

 

 

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 March 29, 2005 (Item No. 47), the Board approved Lease Agreement No. 05-206, which was procured according to County Policy 12-02 - Leasing Privately Owned Real Property for County Use (Policy). The procurement process required by the Policy does not apply to amendments of existing leases, provided the amendment does not exceed the maximum term (including options) of the lease.

 

REVIEW BY OTHERS

This item has been reviewed by County Counsel (Agnes Cheng, Deputy County Counsel and Katherine Hardy, Deputy County Counsel, 387-5455) on February 6, 2020; Library (Patrick Scalzitti, Finance and Operations Chief) on January 29, 2020; Purchasing (Michelle Churchill, Buyer III, 387-2070) on February 4, 2020; Finance (Elias Duenas, Administrative Analyst, 387-4052 and Monique Amis, Administrative Analyst, 387-4883) on February 14, 2020; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on February 24, 2020.

 

(PN: 677-8321)