SUBMITTAL TO THE BOARD OF SUPERVISORS

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

ITEM: 3.17
(ID # 19739)
MEETING DATE:
Tuesday, October 04, 2022

FROM : FACILITIES MANAGEMENT AND Riverside County Sheriff's Department :

SUBJECT: FACILITIES MANAGEMENT - REAL ESTATE (FM-RE): Approval of Lease

Agreement Between Five Degrees, LLC a California Limited Liability Company and County of
Riverside, On Behalf of the Riverside County Sheriff's Office; Lake Mathews Sheriff Station
Lease and Tenant Improvement package. Corona, CEQA Exempt, District 2. [$9,253,065 -
48.8% RSO Funds 10000 , 51.2% Development Impact Fees (DIF) Funds 30501] (Clerk to file
Notice of Exemption)

RECOMMENDED MOTION: That the Board of Supervisors:

1. Find that the project is exempt from the California Environmental Quality Act (CEQA)
pursuant to State CEQA Guidelines Section 15301, Existing Facilities Exemption, and
Section 15061(b)(3), “Common Sense” Exemption;

2. Approve the Lease Agreement Between Five Degrees, LLC a California limited liability
company, and County of Riverside and authorize the Chairman of the Board to execute
the Lease on behalf of the County;

3. Authorize the Director of Facilities Management to take any and all actions necessary to
document and complete this transaction; and

4. Direct the Clerk of the Board to file the Notice of Exemption with the County Clerk within
five (5) working days of Board approval.

ACTION:Policy, CIP

____________________________________________________________________________
MINUTES OF THE BOARD OF SUPERVISORS

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 SUBMITTAL TO THE BOARD OF SUPERVISORS COUNTY OF RIVERSIDE,
STATE OF CALIFORNIA

FINANCIAL DATA Current Fiscal Year: Next Fiscal Year: Total Cost: Ongoing Cost

COST $ 5,047,702 $ 569,318 $ 9,253,065 $0

NET COUNTY COST $ 312,522 $ 569,318 $ 4,517,885 $0
Budget Adjustment: No
SOURCE OF FUNDS: RSO Funds 10000- 48.8%, 51.2%
Development Impact Fees (DIF) Funds 30501
For Fiscal Year: 2022/2023-
2029/2030
C.E.O. RECOMMENDATION: Approve

BACKGROUND:

Summary
On January 25, 2022, the Board of Supervisors approved, in principle, the request by the
Riverside County Sheriff’s Office (RSO) to seek a new location in the South Corona-Lake
Mathews area to adequately serve this growing population base (M.O. 3.55). Facilities
Management Real Estate Division (FM-RE) subsequently issued a Request for Proposal on
behalf of the RSO for an approximately 20,000 square foot facility which resulted in the
selection of a location in a new business park development that is currently under construction
and meets the RSO’s requirements.

This new centralized location will primarily serve the unincorporated areas of Home Gardens,
Coronita, Lake Hills, Woodcrest, El Cerrito, Temescal Valley, Lake Mathews, and Gavilan Hills
which are currently being served by three distant stations incurring extended travel times. This
new facility will allow RSO to efficiently serve the public and reduce incident response times
which will improve public safety in this region of the County.

FM-RE and RSO completed negotiations and the attached Lease being presented for approval
includes a seven (7) year lease term with one (1), five-year option to extend. Space planning
was completed by RSO for full interior tenant improvements which total cost will be reimbursed
to the Lessor upon substantial completion. Development Impact Fees (DIF) – Countywide
Public Facilities Criminal Justice Fund shall be used for the costs of the Tenant Improvements
($2,724,180), Furniture, Fixtures, and Equipment (FF&E) ($1,700,000), and RCIT Expenses
($311,000). All DIF funds are expected to be expended within the current fiscal year (FY
2022/2023). All other costs not specified to be paid by DIF funds will be paid under general
RSO funds 10000.

The following is a summary of the proposed Lease:

Lessor: Five Degrees, LLC

A California limited liability company
2518 N. Santiago Blvd.

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 SUBMITTAL TO THE BOARD OF SUPERVISORS COUNTY OF RIVERSIDE,
STATE OF CALIFORNIA

Orange, CA 92687

Location: 9 Latitude Way

Corona, CA, 92881

Size: 19,490 rentable square feet

Term: Seven (7) years, expiration February 28, 2030

Base Rent: $1.65 per square foot

$32,158.50 per month
$385,902.00 per year

Estimated Operating Expenses: $8,088.35 per month

Security Deposit: $125,000

Utilities: To be provided and paid by RSO

Custodial: To be provided and paid by RSO

Interior/Exterior Maintenance: All maintenance except for the structural shell of

the building to be provided and paid for by Sheriff’s
Office, subject to terms and conditions of the
Lease.

Increases: Four Percent (4%) annual increases on the Base

rent, Operating Expenses to be actual expenses.

Options to Extend: One (1), Five (5) year Option to Extend at Fair
Market Value (FMV) if Lessor is provided notice
between six (6) to twelve (12) months prior to
expiration of initial Term.

Tenant Improvements: $2,724,180 is the estimated cost of Tenant

Improvements (includes a 10% construction
contingency) to be built by the Lessor and
reimbursed by the RSO upon completion through
Development Impact Fees (DIF) Funds.

Furniture, Fixtures, and Equipment: $1,700,000 is the estimated cost of furniture,

fixtures, and equipment (FF&E) for the Sheriff’s
Lake Mathews Station. FF&E’s are movable

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 SUBMITTAL TO THE BOARD OF SUPERVISORS COUNTY OF RIVERSIDE,
STATE OF CALIFORNIA

furniture, fixtures, or other equipment that have no

permanent connection to the structure of this future
station’s building. These items include desks,
chairs, tables, bookcases, lockers, filing cabinets,
and similar furnishings that will be utilized for the
future station’s normal, twenty-four hours seven
days a week operation. This FF&E item, excludes
the costs of all Laptops, Desktop Computers and
any radio equipment that is currently being
specified by RSO to meet the station’s technical
support needs. FF&E is to be paid by Development
Impact Fees (DIF) Funds.

RCIT Costs: $311,000 to be paid by Development Impact Fees

(DIF) Funds.

Pursuant to the California Environmental Quality Act (CEQA), the Lease was reviewed and
determined to be categorically exempt from CEQA under State CEQA Guidelines section 15301
Class 1-Existing Facilities Exemption and section 15061(b)(3), “Common Sense” Exemption.
The Lease involves tenant improvements of a currently constructed space.

The attached Lease has been reviewed and approved by County Counsel as to legal form.

Impact on Residents and Businesses

RSO provides critical law enforcement and public safety services to unincorporated areas of the
County and select contract cities within the County. Due to the population growth in the
unincorporated areas of this region of the County, a need for additional RSO coverage has
arisen, and RSO desires to provide its services to the residents and businesses of the area.

Additional Fiscal Information

See attached Exhibits A, B, and C. Costs associated with this Board action will be 48.8% RSO
Funds and 51.2% Development Impact Fees (DIF) Fund 30501. RSO has budgeted these
costs for FY2022/23 and will reimburse FM-RE for all associated rent (Base Rent and Operating
Expenses) costs related to the Lease. The DIF Fund contribution will be restricted to Tenant
Improvement (TI) construction costs up to $2,724,180, Furniture, Fixtures, and Equipment
(FF&E) costs up to $1,700,000, and RCIT Infrastructure costs of up to $311,000, all of which are
anticipated to be expended in the current fiscal year (FY 2022/2023).

Contract History and Price Reasonableness

This is a new Seven (7) year lease and was determined by the RFP process to be negotiated at
Fair Market Value compared to similar buildings and leases in the submarket.

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 SUBMITTAL TO THE BOARD OF SUPERVISORS COUNTY OF RIVERSIDE,
STATE OF CALIFORNIA

ATTACHMENTS:

• Aerial Image
• Exhibits A, B, C & D
• Notice of Exemption
• Lease

JD:sc/08022022/xxxx/30.xxx

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