REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
February 24, 2026
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
ARLENE MOLINA, Director, Preschool Services Department
SUBJECT
Title
Amendment to Lease Agreement with the Housing Authority of the County of San Bernardino for Classroom, Office and Playground Space in San Bernardino
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 3 to Lease Agreement No. 19-470 with the Housing Authority of the County of San Bernardino, for classroom, office and playground space is an exempt project under the California Environmental Quality Act Guidelines, Section 15302 Class 2 - Replacement or Reconstruction of existing structures and facilities, where the new structure will be located on the same site as the structure replaced.
2. Approve Amendment No. 3 to Lease Agreement No. 19-470 with the Housing Authority of the County of San Bernardino to:
a. Update the scope of work for the tenant improvements to reference the County’s plan to demolish and reconstruct the building located at 1163 North Crestview Avenue in San Bernardino.
b. Continue leasing a total of approximately 4,319 square feet, comprising of approximately 3,119 square feet at 1151 North Crestview Avenue, Buildings A and B, and approximately 1,200 square feet at 1163 North Crestview Avenue in San Bernardino for the Preschool Services Department.
3. Direct the Real Estate Services Department to file the Notice of Exemption in accordance with the California Environmental Quality Act.
(Presenter: Terry W. Thompson, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Foster Sustainable Development Through Strategic Partnerships.
FINANCIAL IMPACT
Approval of Amendment No. 3 (Amendment) to Lease Agreement No. 19-470 (Lease) will not result in the use of Discretionary General Funding (Net County Cost) as there are no costs associated with the Amendment to update the County’s tenant improvements.
BACKGROUND INFORMATION
On July 9, 2019 (Item No. 36), the Board of Supervisors (Board) approved the Lease between the Housing Authority of the County of San Bernardino (Housing Authority) and the County for approximately 3,119 square feet of classroom and office space, located at 1151 North Crestview Avenue in San Bernardino, for the Preschool Services Department (PSD). The original term was from July 1, 2019 through June 30, 2024. Since the Lease was originally approved, the Board has approved two amendments, which confirmed the Lease commencement date, updated the maintenance provisions, increased the rentable square footage to include 1163 North Crestview Avenue, extended the Lease term through May 31, 2040, and updated the standard lease agreement language.
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Amendment No. |
Approval Date |
Item No. |
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1 |
January 26, 2021 |
54 |
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2 |
May 20, 2025 |
71 |
Amendment No. 2 to the Lease outlined the process for PSD to plan and develop tenant improvements to expand the interior space and provide additional classroom amenities to meet PSD educational needs. Since that time, the County and the Housing Authority have evaluated options for the proposed improvements and determined that full demolition and reconstruction of the building is required in order to accommodate PSD objectives. Upon comparing the estimated costs for demolishing and reconstructing the building with those for completing the originally planned interior improvements, the costs were found to be comparable. Therefore, it is recommended that the building be reconstructed. This Amendment reflects this change in scope by updating the tenant improvements to align with PSD’s plan to demolish and rebuild the structure. The Housing Authority requires that the Lease be updated to formally document this change in scope to reflect the demolition and reconstruction. Following approval of the Amendment, Human Services Contracts (HS) will assist PSD with preparing and submitting a Request for Proposal (RFP) to select a contractor. Once the RFP is approved, the contractor bids will be reviewed in accordance with RFP protocols, and a contractor will be selected. Subsequently, HS will submit the contract for Board approval to begin construction. All other Lease terms will remain unchanged.
The project to approve the Amendment was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under Section 15302 Class 2 because the reconstruction of the existing structures will be located on the same site as the structure replaced.
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Summary of Lease Terms |
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Lessor: |
Housing Authority of the County of San Bernardino |
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Location: |
1151 North Crestview Avenue, Buildings A & B, and 1163 North Crestview Avenue, San Bernardino |
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Size: |
4,319 square feet, comprising of approximately 3,119 square feet at 1151 North Crestview, Buildings A and B, and approximately 1,200 square feet at 1163 North Crestview |
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Term: |
Twenty-one years, July 1, 2019 through May 31, 2040 |
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Options: |
Two five-year options remain |
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Rent: |
Cost per square foot per month: $0.74 |
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Monthly: $3,196 |
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Annual: $38,352 |
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*Low-range for comparable facilities in the San Bernardino area per the competitive set analysis on file with the Real Estate Services Department (RESD) |
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Annual Increases: |
3% |
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Improvement Costs: |
Provided by County |
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Custodial: |
Provided by County |
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Maintenance: |
Minor interior maintenance provided by County |
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Utilities: |
Provided by County |
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Insurance: |
The Certificate of Liability Insurance, as required by the Lease, is on file with RESD |
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Holdover: |
Upon the end of the term, if permitted by Lessor, the Lease shall continue on a month-to-month term upon the same terms and conditions that existed at the time of expiration |
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Right to Terminate: |
County has the right to terminate this lease with 90-days’ notice |
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Parking: |
Sufficient for County needs |
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II and Adam Ebright, Deputies County Counsel, 387-5455) on February 10, 2026; Preschool Services (Arlene Molina, Director, 383-2078) on February 11, 2026; County Finance and Administration (Allegra Pajot, 388-0218, and Eduardo Mora, 387-4376, Administrative Analysts, 387-3077) on February 5, 2026.
(YG: 665-0268)