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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: August 20, 2025
To: Honorable Mayor and City Council Members
From: Eric Levitt, City Manager
Department: Economic Development
Subject: Approve Amendment No. 1 to the Lease Agreement with Casa Ramona, Inc., Regarding 1543 W. 8th Street, for a
Satellite Animal Shelter – Annual Lease Amount $130,000 (Ward 1)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2025-356:
1. Authorizing the City Manager to execute Amendment No. 1 to the Lease Agreement with Casa Ramona, Inc. for the property located at 1543 W. 8th Street, San Bernardino, California, to serve as a Satellite Animal Shelter for pet adoptions on behalf of the City of San Bernardino, extending the lease term for five years through September 30, 2030, with a month-to-month conversion at the end of the term; and
2. Authorizing the Director of Finance and Management Services to amend the FY 2025/26 Animal Services Budget in the amount of $130,000, appropriated for expenses.
Executive Summary
The proposed action involves extending the lease agreement for five years between the City of San Bernardino and Casa Ramona, Inc., for approximately 7,175 square feet of office space. This facility will continue to function as a Satellite Animal Shelter focused on pet adoptions, providing vital accommodations for adoptable animals and alleviating overcrowding at the main animal shelter. Amendment No. 1 will support the City of San Bernardino Animal Shelter throughout its ongoing renovations. The $130,000 annual lease cost will be funded through the Animal Services Fund, with a portion ($60,450) reimbursed by other contract cities according to the executed agreements.
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Background
Casa Ramona Inc. owns a commercial office building located at 1543 W. 8th Street in San Bernardino, California. This property, currently leased by the City of San Bernardino, plays a vital role in addressing overcrowding at the City’s Animal Shelter.
The facility has become essential in accommodating the increasing number of animals associated with the Regional Partnership Agreement. The current lease agreement with Casa Ramona Inc. expires on September 30, 2025.
With 7,175 square feet of space distributed across two suites on a 1.30-acre site, the property provides sufficient capacity to support these critical needs. The Animal Services Department has an ongoing requirement for additional space, and this location offers the ideal setting to house approximately 80 dogs and 150 cats as they prepare for adoption.
The City has demonstrated a long-term commitment to the property by making substantial investments to ensure it is well-suited for the specialized needs of a Satellite Animal Shelter. These enhancements include the installation of a clinic sink for proper animal waste disposal, charcoal air filters to mitigate odors and reduce bacterial exposure, and updates to the Fire Life Safety system, including a new control panel and pressure control valves. Additionally, Acrovyn wall protection has been installed throughout all exam rooms, hallways, and other essential areas. Each improvement has been carefully designed to optimize functionality and support the health and well- being of the animals in the City’s care.
Discussion
Amendment No. 1 to the Lease Agreement with Casa Ramona, Inc. for the Satellite Animal Shelter will extend the term of the current lease by five years, ending on September 30, 2030, with a month-to-month conversion option at the end of the term.
The lease rate will remain at $1.50 per square foot for approximately 7,175 square feet of office space, resulting in a total annual cost of $130,000.00. The agreed-upon rate and terms are consistent with the current lease agreement.
The annual lease cost of $130,000 will be funded through the Animal Services Fund, with $60,450 of that amount reimbursed by other contract cities in accordance with executed agreements. Each city will be billed for its share of actual costs, including any costs associated with the lease of this building. It should be noted that partner city agreements are not currently updated to fully reflect the increased costs of the regional partnership. All new costs associated with these partnerships will result in future budget amendments to fully capture operational expenses. Additionally, the Department will be bringing an amendment to the regional partnership agreement to the Mayor and City Council for approval in September to address the additional fees and to recover indirect costs associated with the partnership.
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Casa Ramona is amenable to extending a long-term lease agreement with the City.
This will ensure the continued stability needed for the City to maintain operations while completing renovations at the City’s existing facilities.
By extending the lease, the City of San Bernardino can reinforce its commitment to animal welfare and demonstrate its dedication to improving the lives of adoptable animals and the families who welcome them. The facility’s strategic location and design make it an irreplaceable asset in achieving long-term goals for the humane and responsible care of adoptable animals.
2025-2026 Strategic Targets and Goals
The request for an amendment to the agreement with Casa Ramona, Inc. aligns with Strategic Target #1 – Improved Operational & Financial Capacity by creating a framework for spending decisions and Strategic Target #3 – Improved Quality of Life by occupying and utilizing a previously vacant building.
Fiscal Impact
The Animal Services Fund’s expense budget will be increased by $130,000, of which $60,450 will be reimbursed by other contract cities. The remaining $69,550 will be funded by the City’s General Fund. Animal Services is highly dependent on a large contribution from the General Fund, and this increase represents an additional impact to General Fund resources.
Below is a 5-year projection of the costs, including the 3% CPI annual lease increase for the City and the partners as well as the cumulative cost to the city and partners for the lease.
LEASE AMOUNTS WITH 3% CPI PER YEAR INCLUDED
Category FY 2025-2026 FY 2026-2027 FY 2027-2028 FY 2028-2029 FY 2029-2030 Cumulative
Total
Total Cost $130,000 $133,900 $140,595 $147,625 $155,006 $707,126 City of San
Bernardino's
Share $68,900 $70,967 $74,515 $78,241 $82,153 $374,777
Regional
Partner's Share $61,100 $62,933 $66,080 $69,384 $72,853 $332,349 2 3
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Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2025-356:
1. Authorizing the City Manager to execute Amendment No. 1 to the Lease Agreement with Casa Ramona, Inc. for the property located at 1543 W. 8th Street, San Bernardino, California, to serve as a Satellite Animal Shelter for pet adoptions on behalf of the City of San Bernardino, extending the lease term for five years through September 30, 2030, with a month-to-month conversion at the end of the term; and
2. Authorizing the Director of Finance and Management Services to amend the FY 2025/26 Animal Services Budget in the amount of $130,000, appropriated for expenses.
Attachments
Attachment 1 - Casa Ramona Resolution No. 2025-356
Attachment 2 - Amendment No. 1 to the Lease Agreement with Casa Ramona
Attachment 3 - Current Lease Agreement with Casa Ramona Ward:
Ward 1
Synopsis of Previous Council Actions:
October 2, 2024 – Resolution No. 2024-209: Approved a one-year Lease Agreement with Casa Ramona, Inc., effective through September 30, 2025.