CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: March 19, 2025
To: Honorable Mayor and City Council Members
From: Bill Gallardo, Interim City Manager
Ernesto Salinas, Interim Director of Parks and Recreation & Operations and Forestry
Department: Parks, Recreation & Community Services
Subject: Authorize a Lease Agreement with Mobile Modular Management Corporation for the Verdemont Community
Center for a Total Amount Not to Exceed $47,825.95
(Ward 5)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Authorize the City Manager to enter into a new agreement with Mobile Modular Management Services for the lease and extension of the Verdemont Community Center (temporary) building for a period of 12 months at a monthly cost not to exceed $1,944.47.
2. Authorize the Director of Finance and Management Services to issue an annual purchase order to Mobile Modular Management Corporation in the amount of $47,825.95 with four option years to be exercised at the City’s discretion for the lease agreement. This amount includes $24,492.31 for payment of prior-year monthly leasing fees incurred due to staff oversight resulting from personnel turnover.
Executive Summary
The Parks and Recreation Department is requesting approval to enter into a new lease agreement with Mobile Modular for the modular building that currently serves as the Verdemont Community Center for a period of one year with four optional years. Additionally, a purchase order is requested to pay for the new lease and overdue amounts that will keep the City’s account in good standing order. As a result of high staff turnover, the previous lease agreement expired, and invoices remained unpaid. Parks staff desires to correct these issues with the appropriate process of Council notification and proper procurement and finance director approval. This lease agreement will be funded through Public Work’s Facilities.
Background
The Parks and Recreation Department focuses on community engagement and provides services and programming to its residents city-wide through several avenues. One of the main avenues of engaging our residents is through programming, services, and outreach offered at our community and senior centers which are located city wide. Annually, staff estimates participation rates of more than 32,000 attendees and/or participants for all (non-event) programs combined. These participants include senior citizens and children along with those with adaptive needs.
Located in the Fifth Ward at Al Guhin Park, the Verdemont Community center offers programming for seniors, provides after school activities, hosts special events, provides youth enrichment activities, outdoor recreation, and offers cooking classes to list a few.
The current modular building was established in 2018 and is meant to serve as temporary building until such time a permanent structure is erected as part of the City’s capital improvement project program. It consists of four rooms along with a restroom in a 60’ x 24’ structure that features an ADA access ramp.
Discussion
In late 2024, staff was alerted to overdue payments for the Verdemont Community Center building from Mobile Modular. The notice was received as part of invoices inadvertently forwarded to the Animal Shelter facilities’ modular rentals project. Upon review, staff determined several of those invoices were not part of the Animal Shelter modular project and collaborated with Finance to determine a course of action for payment. During this process, staff discovered the lease agreement for the modular building and ADA ramp at Verdemont Community center had lapsed and a proper purchase order had not been established.
In consultation with Legal, staff determined that the proper course of action to correct this oversight was to notify Council and seek their approval for the new lease with four-year options as is required by the City’s procurement policies. It is important to note that the original lease agreement was established in 2018 and set monthly payments at approximately $1,604. A lease extension was then set in 2021 when the original 2018 contract expired but the proper procurement process was not followed as, cumulatively, the amount of the overall contract (entire timeframe) exceeded the threshold for department-level approval. Additionally, a lease extension was not pursued. Payments continued to be made monthly as the monthly threshold appeared below the threshold for Council approval; however, current Parks and Recreation staff recognized this error and is now seeking to correct it by notifying Council and requesting approval for a new purchase order that pays the overdue amount and the new lease agreement with four option years.
In an effort to remain in good standing with Mobile Modular and to continue the use of the Verdemont Community Center modular building, staff is requesting Council approval of these actions. Approving them will allow for the uninterrupted continuation of vital community programing and events for our residents in the Fifth Ward. Should this not be approved, the City may be subjected to additional fees and repossession of the facility. Establishing an alternative temporary facility in that area will also create lengthy delays and disrupt programming.
The term of the proposed lease agreements shall be from April 1, 2025, to April 1, 2026 with four option years to be exercised at the City’s discretion at the expiration of the first term.
2021-2025 Strategic Targets and Goals
This action aligns with Key Strategic Target and Goal #3: Improved Quality of Life by ensuring consistent and stable community programing for our residents and youth. It will ensure uninterrupted services at the center.
Fiscal Impact
Though the Verdemont Community Center is a Parks and Recreation facility, this agreement is funded by Public Work’s Fleet and Facilities Division budget. There is sufficient funding programmed in their current budget.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Authorize the City Manager to enter into a new agreement with Mobile Modular Management Services for the lease and extension of the Verdemont Community Center (temporary) building for a period of 12 months at a monthly cost not to exceed $1,944.47.
2. Authorize the Director of Finance and Management Services to issue an annual purchase order to Mobile Modular Management Corporation in the amount of $47,825.95 with four option years to be exercised at the City’s discretion for the lease agreement. This amount includes $24,492.31 for payment of prior-year monthly leasing fees incurred due to staff oversight resulting from personnel turnover.
Attachments
Attachment 1 Lease Agreement – City of SB * Mobile Modular Attachment 2 Mobile Modular Original Lease Agreement and Extension 2021 Ward:
Ward 5
Synopsis of Previous Council Actions:
None.