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:
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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 |
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April 1, 2022 - March 31, 2023 |
$ 25,200 |
$12,299 |
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April 1, 2023 - March 31, 2024 |
$ 25,200 |
$12,668 |
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April 1, 2024 - March 31, 2025 |
$ 25,200 |
$13,048 |
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Total Cost |
$126,000 |
$61,549 |
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*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.
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Amendment No. |
Approval Date |
Item No. |
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1 |
March 23, 2010 |
58 |
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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.
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Summary of Lease Terms |
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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) |
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Location: |
6465 Park Boulevard, Joshua Tree |
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Size: |
2,000 square feet |
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Term: |
Five years commencing April 1, 2020 |
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Options |
None |
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Rent: |
Cost per sq. ft. per month: $1.05 |
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Monthly: $2,100 |
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Annual: $25,200 |
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*Mid-range for comparable facilities in the Joshua Tree area per the competitive set analysis on file with RESD |
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Annual Increases: |
CPI |
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Improvement Costs: |
None |
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Custodial |
Provided by County |
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Maintenance: |
Provided by Lessor at no additional cost, County provides interior light bulb replacement |
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Utilities: |
Lessor provides water and sewer at no additional cost; County provides electricity, gas and trash 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 |
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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)