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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: February 5, 2025
To: Honorable Mayor and City Council Members
From: Rochelle Clayton, Acting City Manager;
Kris Watson, Director of Animal Services
Department: Animal Services
Subject: Ratification of Lease Agreement with Mobile Modular for Modular Buildings at the Animal Shelter (Ward 3)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino California, ratify the agreements with Mobile Modular for the lease and extension of use of two modular buildings at the current animal shelter site, with a monthly rental cost of $3,996.56 which is budgeted.
Executive Summary
The Department of Animal Services seeks approval to ratify agreements with Mobile Modular for two modular buildings at the animal shelter, which serve as a staff breakroom and customer service area. The breakroom modular will remain in use until March 2025, while the customer service modular will stay on-site long-term. Annual costs total $47,958.72, covered by the department’s existing budget allocation and is entirely separate from the funding allocated for the regional partnership agreements.
Ratification is necessary to ensure uninterrupted operations and address the lapse in the previous agreements.
Background
On April 7, 2021, the Mayor and City Council authorized the Director of Finance to amend the FY 2020/21 budget, transferring $31,160 from the Animal Services Fund to the Public Works Facilities and Maintenance Operations budget to address the operational needs of the City’s animal shelter, including emergency removal and replacement of modular buildings at the facility. During the same meeting, Resolution No. 2021-87 was adopted, accepting a grant award from the San Manuel Band of Mission Indians for Animal Shelter Programs and Services. Of the total grant award of $1,500,000, $80,000 was allocated to support the shelter entrance remodel. 2 4
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To address immediate needs of the remodel, two modular buildings were installed at the animal shelter. One modular serves as the staff breakroom, while the other functions as the customer service area and main entrance. These modulars were originally procured through agreements with Commercial Mobile Systems. Ownership of the modular units transitioned from Commercial Mobile Systems to Vesta, and then to Mobile Modular. However, the original agreements and purchase orders were allowed to lapse, leaving the City without a formal agreement with Mobile Modular. In order to avoid Mobile Modular’s immediate repossession of the modular units, the Department processed new agreements with Mobile Modular in November 2024.
Ratification of these new agreements with Mobile Modular by the City Council is necessary to maintain operations at the shelter.
Earlier this year, the Department of Animal Services received notice that Riverside County Animal Services would discontinue shelter services for the cities of Colton, Fontana, and Rialto, effective June 30, 2024. The City of San Bernardino entered into a new regional partnership agreement to provide shelter services for these cities, alongside Grand Terrace and Loma Linda. To support the increased staffing and programmatic needs associated with this partnership, the Mayor and City Council adopted Resolution No. 2024-096 on May 15, 2024 and Resolution No. 2024-067 on April 17, 2024.
As part of the regional partnership site renovations, the Mayor and City Council approved Resolution 2024-151 on August 7, 2024, approving the purchase of a larger 60'x60' modular building to serve as the primary customer support center and office space for expanded programs and staff. This single-source purchase was funded within the $4,000,000 allocated by the Mayor and City Council for site improvements in Resolution 2024-067. One of the existing modular buildings from Mobile Modular will remain on-site for continued use, while the other will be removed to make space for the new kennel buildings.
Discussion
The Department of Animal Services currently utilizes two modular buildings at the animal shelter site: one serving as a staff breakroom and the other as the customer service area and main entrance. These modulars were originally leased through agreements with Commercial Mobile Systems, later transitioning to Vesta, and now owned by Mobile Modular. Due to an oversight by the Department, the agreements for these buildings were allowed to lapse and were not renewed in a timely manner. This oversight left the City without an active agreement to cover the continued use of these essential facilities.
The lease agreement with Mobile Modular outlines the monthly rental cost of $3,996.56, which includes $1,087.50 for the staff breakroom modular unit, and $2,909.06 for the customer service modular unit. The modular serving as the breakroom will remain on-site until the new staff building is delivered and operational by March 2025, after which it will be removed. The modular serving as the customer 2 4
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service area and main entrance will remain on-site long-term as the administration offices and conference room.
The ratification of the agreements is necessary to formalize the continued use of these modular buildings and ensure uninterrupted operations at the animal shelter. Until the second modular is removed, the City will be responsible for the monthly rental costs.
The oversight in allowing the agreements to lapse is acknowledged, and ratifying the agreement with Mobile Modular is a necessary step to correct this error and maintain compliance with contractual obligations.
Approving this action will allow the City to continue using these buildings while the transition to the new staff building is completed and ensure no disruption to shelter services.
The ratification of the agreements with Mobile Modular for the continued use of the two modular buildings at the animal shelter will result in an annual cost of $13,050 for the breakroom modular and $34,908.72 for the customer service modular, for a combined total of $47,958.72 per year, which includes monthly rental fees, taxes, and personal property expenses.
The modular serving as the customer service area and main entrance will remain on- site long-term, while the modular serving as the breakroom will be removed in March 2025 after the new staff building becomes operational. For the five-year projection, the estimated total cost for the customer service modular will be $174,543.36. The modular currently functioning as the breakroom will incur $13,050.00 in costs for the current fiscal year, as it will be removed at the end of the year.
The total five-year cost, including one year of the breakroom modular and five years of the customer service modular, is $187,593.36. The cost for the current fiscal year has been allocated as part of the Department of Animal Services’ budget, with $50,000.00 budgeted annually for both modulars. There will be no additional impact on the General Fund for this item as the cost of $47,958.72 for the lease of both buildings is covered within the existing departmental budget allocation.
2021-2025 Strategic Targets and Goals
The approval of this ratification aligns with Key Strategic Target and Goal #3:
Improved Quality of Life by ensuring consistent and stable animal services for our residents and neighboring cities. Additionally, maintaining functional and well- equipped facilities supports Key Strategic Goal #4: Economic Growth and Development by enhancing the City’s Animal Services operations and infrastructure.
Fiscal Impact
There is a $58,958.72 impact on the General Fund, however, the costs associated with the ratification of these agreements are fully covered by the existing budget allocation for Animal Services. The total annual cost for both modular buildings is $47,958.72, which includes rental fees, taxes, and personal property expenses. 2 4
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covering the continued use of the customer service modular and the break room modular until its removal in March 2025. These costs are fully funded within the existing departmental budget and are separate from the funding allocated for the Regional Partnership Agreement.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino California, ratify the agreements with Mobile Modular for the lease and extension of use of two modular buildings at the current animal shelter site, with a monthly rental cost of $3,996.56 which is budgeted.
Attachments
Attachment 1 – Current Mobile Modular Agreements
Attachment 2 – Previous Agreements
Ward:
Third Ward
Synopsis of Previous Council Actions:
April 7, 2021 - Approved Resolution No. 2021-87, accepting grant funding from the San Manuel Band of Mission Indians, including $80,000.00 to be used on the remodel of the shelter entrance.
December 6, 2023 - Approved the City Manager to finalize and execute participation agreements with the cities of Colton, Fontana, and Rialto to establish a Regional Shelter Partnership.