SUBJECT
Title
GENERAL SERVICES - APPROVE FIRST AMENDMENT TO LEASE AGREEMENT FOR THE CIVIL GRAND JURY AND CEQA EXEMPTION (DISTRICT: 3)
Body
OVERVIEW
The San Diego County Civil Grand Jury is a group of 19 citizens that reviews and investigates operations of the County of San Diego, its 18 incorporated cities, and other quasi-governmental agencies to determine whether they can be made more efficient, effective and responsive to the needs of the public. The Civil Grand Jury investigates citizen complaints against these entities and performs a watchdog function to ensure the entities are operating in the most efficient manner.
Today’s request is for the Board of Supervisors to approve a lease renewal for the 4,202 square feet of office space at 550 West C Street in downtown San Diego, with 550 Corporate Owner LLC, a Delaware limited liability company, the building owner.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
1. Find the proposed lease for the Civil Grand Jury is exempt from the California Environmental Quality Act (CEQA) Guidelines pursuant to State CEQA Guidelines Section 15301.
2. Approve and authorize the Director, Department of General Services, to execute the proposed lease amendment for the premises located at 550 West C Street., San Diego.
EQUITY IMPACT STATEMENT
The Civil Grand Jury supports the community in its current location. Extending the term of the lease would benefit the community by continuing to provide resources. The Civil Grand Jury provides availability of adequate programs and resources to ensure the community has equitable access to County resources.
SUSTAINABILITY IMPACT STATEMENT
Implementing effective sustainability objectives is crucial to ensuring safe and healthy communities and contributing to the overall success of the region. The approval of this lease amendment supports the County’s Strategic Initiative of Sustainability to ensure the capability to respond to immediate needs for individuals, families, and the region.
FISCAL IMPACT
Funds for this request are included in the Fiscal Year 2025-26 Operational Plan for San Diego County Civil Grand Jury. If approved, this request will result in a current year cost of $69,867 and $171,283 for FY 2026-27. The funding source is General Purpose Revenue. There will be no change in net general fund costs and no additional staff years.
BUSINESS IMPACT STATEMENT
N/A
Details
ADVISORY BOARD STATEMENT
N/A
BACKGROUND
The San Diego County Civil Grand Jury investigates operations of the County of San Diego, its 18 incorporated cities, and other quasi-governmental agencies to determine whether they can be made more efficient, effective, and responsive to the needs of the Public. The Civil Grand Jury investigates citizen complaints against these entities and performs a watchdog function to ensure the entities are operating in the most efficient manner.
On September 15, 2015 (11), the Board approved a lease for 4,202 square feet of office space at 550 West C Street. The lease expired on January 31, 2026, and is currently on holdover, which has allowed the Grand Jury to continue its occupancy on a month-to-month basis while an amendment was negotiated.
Staff from DGS have negotiated a first amendment to the lease agreement for the Civil Grand Jury. The proposed amendment extends the term of the lease for an additional five years and includes one five-year option to further extend the term. A lower rental rate was also negotiated as a part of this amendment.
Details of the proposed first amendment to lease are as follows:
|
LEASE PROVISION |
EXISTING LEASE |
PROPOSED LEASE AMENDMENT |
|
LESSOR |
550 Corporate Center Investments Group, Inc. |
550 Corporate Owner LLC, a Delaware limited liability company |
|
PREMISES |
4,160 square feet |
4,202 square feet (building remeasured based on updated standards) |
|
TERM |
10 Years |
Five years |
|
OPTIONS TO EXTEND |
None |
One five-year option |
|
RENT ADJUSTMENTS |
4% annually |
3% annually |
|
EARLY TERMINATION BY COUNTY |
N/A |
N/A |
|
UTILITIES |
Lessor pays |
Lessor pays |
|
MAINTENANCE |
Lessor pays |
Lessor pays |
|
CUSTODIAL |
Lessor pays |
Lessor pays |
|
MONTHLY OCCUPANCY COST Rent Utilities Maintenance Custodial TOTAL OCCUPANCY COST PER MONTH |
$15,329.83 ($3.69/sq. ft.) $0 $0 $0 $ 15,329.83 ($3.69/sq. ft.) |
$13,866.60 ($3.33/sq. ft.) $0 $0 $0 $ 13,866.60 ($3.33/sq. ft.) |
ENVIRONMENTAL STATEMENT
The proposed lease amendment is categorically exempt from environmental review pursuant to Section 15301 of the California Environmental Quality Act Guidelines because it involves amending an existing lease for use of an existing building, involving negligible or no expansion of the existing use. Additionally, no exceptions listed in CEQA Guidelines Section 15300.2 apply to the project. See Attachment A for Notice of Exemption.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s proposed action to approve the lease amendment for the Civil Grand Jury supports the Engagement portion of the Community Initiative in the County of San Diego’s 2026-2031 Strategic Plan by inspiring civic engagement and providing programs that increase access for individuals or communities to use their voice to impact change.
Respectfully submitted,
ebony n. shelton
Chief Administrative Officer
ATTACHMENT(S)
Attachment A: Notice of Exemption