REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 28, 2022
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
THOMAS W. SONE, Public Defender
SUBJECT
Title
Amendment to Lease Agreement with Vanderbilt Property, LLC for Office Space for the Public Defender in San Bernardino
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RECOMMENDATION(S)
Recommendation
Approve Amendment No. 1 to Lease Agreement No. 19-698 with Vanderbilt Property, LLC to reflect a change of property ownership from Vicky L. Thomas, Trustee of the Vicky L. Thomas Trust dated February 7, 2007, to Vanderbilt Property, LLC and update standard lease agreement language for approximately 17,504 square feet of office space located at 412 West Hospitality Lane for the Public Defender in San Bernardino at no cost.
(Presenter: Terry W. Thompson, Director, 387-5000)
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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) as there is no cost to San Bernardino County (County) associated with this amendment to reflect a change of property ownership and update standard lease agreement language.
BACKGROUND INFORMATION
The recommended action will amend an existing lease to reflect a change of property ownership from Vicky L. Thomas, Trustee of the Vicky L. Thomas Trust dated February 7, 2007 (Thomas) to Vanderbilt Property, LLC (Vanderbilt) and update standard lease agreement language.
On October 22, 2019 (Item No. 34), the Board of Supervisors (Board) approved Lease Agreement, No. 19-698, with Thomas for a five-year term with one two-year extension option, for approximately 17,504 square feet of office space located at 412 West Hospitality Lane in San Bernardino. The original term of the lease was projected to be for the period of November 12, 2019 through November 11, 2024.
The Real Estate Services Department (RESD) was notified on April 11, 2022, that Vanderbilt had acquired ownership of the property from Thomas. Amendment No. 1 to Lease Agreement No. 19-698 reflects a change in property ownership from Thomas to Vanderbilt and updates standard lease agreement language. To facilitate the administration of the lease, the amendment also permits the RESD Director to execute future amendments to the lease that solely reflect a successor landlord following a sale of the property and assignment of the lease. 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: |
Vanderbilt Property LLC (Jon Alberon, Managing Member) |
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Location: |
412 West Hospitality Lane, San Bernardino |
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Size: |
17,504 square feet |
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Term: |
Existing term expires on November 11, 2024 |
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Options: |
One two-year option to extend the term |
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Annual Increases: |
Approximately 2% |
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Improvement Costs: |
None |
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Custodial: |
Provided by Lessor |
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Maintenance: |
Provided by Lessor |
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Utilities: |
Provided by Lessor |
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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 at any time after November 11, 2021 |
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Parking: |
Sufficient for County needs |
PROCUREMENT
On October 22, 2019 (Item No. 34), the Board approved Lease Agreement No. 19-698 for a five-year term with one two-year extension option, for 17,504 square feet of office space located at 412 West Hospitality Lane in San Bernardino, 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 Dawn Martin, Deputy County Counsel, 387-5455) on June 3, 2022; Public Defender (Diana Lovelace, Chief of Administration, 382-7651) on May 5, 2022; Purchasing (Bruce Cole, Supervising Buyer, 387-2148) on May 27, 2022; Finance (Kathleen Gonzalez, Administrative Analyst, 387-5412, and Carl Lofton, Administrative Analyst, 387-5404) on June 8, 2022; and County Finance and Administration (Diana Atkeson, Deputy Executive Officer, 387-4376) on June 9, 2022.
(PN: 677-8321)