REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
December 7, 2021
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
VERONICA KELLEY, Director, Department of Behavioral Health
SUBJECT
Title
Amendment to Lease Agreement with Rich Property, Inc. for Clubhouse Space for the Department of Behavioral Health in Victorville
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 3 to Lease Agreement No. 02-1013 with Rich Property, Inc. to reflect a change in property ownership from RVF Properties, LLC to Rich Property, Inc. for approximately 2,880 square feet of clubhouse space for the Department of Behavioral Health located at 12625 Hesperia Road in Victorville, with no change to the total cost or term of December 1, 2002 through the current permitted Holdover period scheduled for renewal March 15, 2022.
(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 Discretionary General Funding (Net County Cost). There is no cost associated with this amendment to reflect a property ownership change.
BACKGROUND INFORMATION
The recommended action will amend an existing lease agreement to reflect a change in property ownership from RVF Properties, LLC to Rich Property, Inc. for approximately 2,880 square feet of clubhouse space for the Department of Behavioral Health (DBH) located at 12625 Hesperia Road in Victorville.
On October 1, 2002 (Item No. 37), the Board of Supervisors (Board) approved a 10-year Lease Agreement, No. 02-1013, with three, two-year options to extend the term of the lease for approximately 2,880 square feet of clubhouse space at 12625 Hesperia Road in Victorville for client recreation/education purposes. The original term of the lease was for the period of December 1, 2002 through November 30, 2012. In the 19 years since the lease was originally approved, the Board has approved two amendments to reflect a change in property ownership, extend the term of the lease, provide for tenant improvements, delete a one-year option and add a two-year option and three-year option to extend the term, adjust the rental rate schedule, provide authority to the Real Estate Services Department Director to exercise an extension option, and update standard lease agreement language.
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Amendment No. |
Approval Date |
Item No. |
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1 |
April 9, 2013 |
35 |
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2 |
October 6, 2015 |
51 |
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Option Exercise Notice |
November 17, 2020 |
70 |
Amendment No. 3 reflects a change of property ownership from RVF Properties, LLC to Rich Property, Inc. All other terms and conditions of the lease remain unchanged.
A Companion Item on today’s agenda recommends the Board approve Amendment No. 4 to Lease Agreement No. 98-51 with Rich Property, Inc. to reflect a change in property ownership from RVF Properties, LLC to Rich Property, Inc. for adjacent clinic and office space.
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: |
Rich Properties, Inc. (Chiman Yoo, CEO) |
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Location: |
12625 Hesperia Road, Victorville |
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Size: |
2,880 square feet of clubhouse space |
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Term: |
Three years, term commenced December 1, 2020 |
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Options: |
One two-year option |
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Rent: |
Cost per sq. ft. per month: $1.67* Modified gross |
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Monthly: $4,810 |
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Annual: $57,720 |
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*Mid -range for comparable facilities in the Victorville area per the competitive set analysis on file with RESD |
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Annual Increases: |
2.40% |
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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, County to pay electrical cost in excess of $9,676.80 per lease year ($0.28 per square foot per month), which is subject to 2% annual increase |
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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: |
The County has the right to terminate with 90 days’ notice |
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Parking: |
Sufficient for County needs |
PROCUREMENT
Not applicable.
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 October 29, 2021; Department of Behavioral Health (Erica Ochoa, CHC - Chief Compliance Officer, 388-0882 and Emily Petrus, Administrative Supervisor, 388-0949) on October 25, 2021; Finance (Carl Lofton, Administrative Analyst, 387-5404 and Chris Lange, Administrative Analyst, 386-8393) on November 16, 2021; and County Finance and Administration (Diana Atkeson, Deputy Executive Officer, 387-4376) on November 16, 2021.
(JAG: 677-8210)