1. DELEGATION OF AUTHORITY Calendar Item 100

2. Current Continuation of Rent Process 1) Prior to 5-year anniversary, staff performs a rent review. Proposed annual rent is estimated based on an appraisal, an established “benchmark” rental rate, percentage of gross income, or other method available to staff based on the California Code of Regulations. 2) Based on the analysis, staff then recommends either: Rent Revision (for an increase or decrease in rent) or Continuation of Rent (if the rent is unchanged). 3) After the approval of rent review by management, the lessee is notified of either the rent revision or the continuation of rent. 4) Staff then prepares a calendar summary and item with the recommended action. 5) Calendar summary and item reviewed by direct supervisor, either the Chief or Assistant Chief of the Land Management Division, staff of the Division of Environmental Planning and Management, Staff Counsel, the Chief Counsel, and lastly the Executive Officer. 6) After Commission action, staff notifies lessee of the action taken, completes certain internal forms for database tracking, and closes out the file

3. Proposed Continuation of Rent Process 1) Retain Steps 1-3. 2) If a continuation of rent approved by LMD management, then no calendar item prepared. 3) If staff becomes aware of a situation where the lessee or a third party would like to have the action considered by the Commission, then the item will be agendized and heard at a regularly-scheduled public meeting. 4) During Calendar cycle, the Land Management Division will submit a list of the continuations of rent to the Executive Officer for review and approval. 5) Retain Step 6.

4. Potential Benefits  There have been 74 continuation of rent items considered by the Commission in the 5 years between 2008 and 2012, an average of almost 15 per year.  The total time spent on preparation (2 hours) and review (2-4 hours) of each continuation of rent calendar item is therefore 4-6 hours.  Based on an average of 15 continuation of rent items per year, approximately 60-90 hours could be redirected if the proposed amendment to the delegation of authority is approved.  Staff will report back to the Commission in one year to provide an update on how many continuation of rent items were processed under the new process.