DISCUSSION
City of San Bernardino
Request for Council Action
Date: February 18, 2026
To: Honorable Mayor and City Council Members
From: Eric Levitt, City Manager;
Michael Yarbrough, Real Property Manager
Department: Economic Development
Subject: Adoption of Policy Establishing a Two-Step Authorization and Approval Process for New and Renewal Leases of
City-Owned Property (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2026-014, approving a standardized policy for city- owned leases (new and renewals) that mandates City Council authorization before negotiations begin and final approval before execution.
City Manager's Comments
Due to the City having many leases, in order to provide a fair process to both the City, current lease holder and potential future lease holders, I am proposing a two-step process in determining lease renewals and / or requesting proposals.
This provides an opportunity to look at the public benefit of a proposed lease renewal or new lease at the beginning of the process.
Based on being in the initial implementation if the City Council approves the policy, I recommend that we provide the ability for up to a maximum of a six-month extension while going through the process.
Executive Summary
This item requests City Council adoption of a policy establishing a standardized two- step authorization and approval process for new and renewal leases of City-owned property where the City acts as lessor. The proposed policy requires City Council direction before staff initiates lease negotiations or competitive solicitations, followed by final City Council approval prior to execution of any lease agreement. Adoption of the policy is intended to enhance transparency, consistency, and fiscal accountability in the management of City-owned real property, while ensuring appropriate Council oversight of leasing decisions with potential public or political interest. The policy is administrative in nature.
Background
The City of San Bernardino owns and leases various real properties and wireless communication towers/sites to public and private entities. Currently, lease approvals are handled on a case-by-case basis, which may result in inconsistent processes and limited competitive solicitation. To promote transparency, fairness, and fiscal accountability, staff are recommending adoption of a formal policy establishing a uniform two-step process for new and renewal leases. The proposed policy establishes a governance framework for the leasing of city-owned property that emphasizes City Council oversight, transparency, and accountability. While competitive solicitation may be used when directed by the City Council, the policy is intended to ensure that the City Council determines at the outset whether a lease should be renewed, competitively solicited, or declined.
Discussion
The proposed policy establishes a two-step approval process for leases where the city is the lessor. For lease renewals with an existing lessee, the first step requires staff to present a Conceptual Renewal Proposal to the City Council prior to any negotiations or preparation of lease documents if the current lease holder requests a renewal. The Conceptual Renewal Proposal will summarize the existing lease, identify potential changes to material terms, describe the public benefit to the City, and disclose any known community, political, or public-interest considerations.
Following presentation, the City Council will determine whether to authorize renewal negotiations with the existing lessee or to decline renewal and direct staff to initiate a Request for Proposals (RFP) for the property. If the City Council authorizes renewal negotiations, staff may proceed to negotiate a renewal consistent with Council direction. A Request for Proposals shall not be required unless specifically directed by the City Council. Any negotiated renewal shall be returned to the City Council for final approval prior to execution.
For new leases, the first step requires staff to present a Conceptual Lease Proposal to the City Council prior to issuance of a Request for Proposals or commencement of negotiations. The Conceptual Lease Proposal will describe the proposed use of the property, anticipated general terms, public benefit, and any known community or political considerations. Following presentation, the City Council will determine whether to authorize issuance of a Request for Proposals or to decline to proceed with leasing the property. The Conceptual Lease Proposal would be set to occur six (6) months before the end term of existing leases.
Request for Proposals shall be issued without prior City Council authorization. Any lease resulting from a Request for Proposals shall be subject to final City Council approval prior to execution.
All Requests for Proposals and bid solicitations will be conducted electronically through the city’s authorized procurement platform, including PlanetBids or its successor system. Vendor registration will be open and free of charge. Solicitations will promote open competition and be conducted in a fair and impartial manner in compliance with the City Municipal Code and City Purchasing Policy. In accordance with City Purchasing Policy, such solicitations shall encourage local businesses participation as well as the participation of minority, women-owned, disadvantaged and Disabled Veteran Business Enterprises.
The policy will apply to all leases, licenses, and similar agreements for the use or occupancy of city-owned real property unless expressly exempted by state or federal law or specifically exempted by action of the City Council. Limited exceptions may include short-term or temporary use agreements that do not convey a possessory interest or intergovernmental agreements, as determined by the City Council. The City Manager or designee will be authorized to implement the policy and establish administrative procedures consistent with the policy and applicable law. Administrative procedures shall not authorize negotiation or execution of lease renewals or new leases without prior City Council direction as required by the policy. 2021-2025 Strategic Targets and Goals
Adoption of the proposed lease policy aligns with Goal No. 1a: Improved Operational & Financial Capacity – Establish clear policy direction and predictable organization structures. Establishing a standardized two-step authorization and approval process for new and renewal leases strengthens governance, improves transparency, and promotes consistent oversight of City-owned property. By requiring City Council direction prior to negotiations or solicitation and encouraging competitive processes when appropriate, the policy supports sound asset management, efficient use of staff resources, and improved long-term fiscal outcomes for the City.
Fiscal Impact
There is no immediate fiscal impact anticipated with the adoption of this policy. The policy is intended to improve long-term fiscal outcomes by promoting competitive leasing and consistent review of city-owned property agreements.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2026-014, approving a standardized policy for city- owned leases (new and renewals) that mandates City Council authorization before negotiations begin and final approval before execution.
Attachments
Attachment 1 Resolution No. 2026-014
Attachment 2 Exhibit A - City of San Bernardino Leasing Policy Ward:
All Wards
Synopsis of Previous Council Actions:
None
CC: Eric Levitt, City Manager