REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
May 6, 2025
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
JEANY GLASGOW, Director, Children and Family Services
SUBJECT
Title
Amendment to Lease Agreement with Tellez, Francisco J. for Real Property in San Bernardino
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 1 to Lease Agreement No. 21-195 with Tellez, Francisco J. for real property is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class I).
2. Approve Amendment No. 1 to Lease Agreement No. 21-195 with Tellez, Francisco J., to extend the term of the lease by three years, for the period of June 1, 2025, through May 31, 2028, following a permitted holdover period from February 1, 2022, through May 31, 2025, at a cost of $117,750, adjust the rental rate schedule, and update standard lease agreement language for approximately 19,840 square feet of land improved with an approximately 1,826 square foot single-family home located at 4070 Acre Lane in San Bernardino, in the amount of $250,366, for a new total contract amount of $283,966.
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.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of Amendment No. 1 (Amendment) to Lease Agreement No. 21-195 (Lease) will not result in the use of Discretionary General Funding (Net County Cost). The total cost for this three-year Lease, including the three-year and four-month holdover is $250,366, which includes a security deposit of $2,800 that was already paid with the original lease. Additional costs associated with this Lease include utilities and routine interior and landscaping maintenance, which will be paid out of the Human Service (HS) Administrative Claim budget (5011101000). Lease payments will be made from the Real Estate Services Department (RESD)-Rents budget (7810001000) and reimbursed from the Human Service (HS) Administrative Claim budget (5011101000). The HS Administrative Claim budget is funded by 85% Federal/State funding and 15% Local Share (which is a blend of Realignment, Wraparound Reinvestment and Net County Cost). Sufficient appropriation is included in the 2024-25 RESD & HS budgets and will be included in future recommended budgets.
Lease schedule is as follows:
|
Lease Year |
Annual Lease Cost |
Estimate of Other Costs Associated With This Lease |
|
*Security Deposit |
$2,800 |
$0 |
|
**February 1, 2022 - June 30, 2023 |
$47,600 |
$25,809 |
|
**July 1, 2023 - May 31, 2025 |
$70,150 |
$40,472 |
|
June 1, 2025 - May 31, 2026 |
$42,000 |
$29,537 |
|
June 1, 2026 - May 31, 2027 |
$43,260 |
$30,423 |
|
June 1, 2027 - May 31, 2028 |
$44,556 |
$31,336 |
|
Total Lease Cost: |
$250,366 |
$157,577 |
*Security Deposit was already paid in 2021
**Holdover Period
BACKGROUND INFORMATION
On November 19, 2020, Children and Family Services (CFS) requested that RESD negotiate a Lease with Tellez, Francisco J. for the period of one year, to provide an isolation and quarantine residence to protect the safety of CFS children and staff in response to the COVID-19 pandemic.
On March 9, 2021 (Item No.18), the Board of Supervisors (Board) ratified the Lease with Tellez, Francisco J, for real property and improvements, located at 4070 Acre Lane in San Bernardino (Premises), consisting of approximately 19,840 square feet of land [Assessor’s Parcel Number (APN) 0271-021-19-0000] improved with an approximately 1,826 square foot unfurnished, single-family home for use as a COVID-19 isolation and quarantine residence for CFS, for the period of February 1, 2021, through January 31, 2022, in the amount of $33,600, which included a security deposit of $2,800, and was signed by the Chief Executive Officer (CEO) pursuant to delegated authority due to the COVID-19 pandemic. County Counsel reviewed the Lease, and it was signed by the CEO on January 27, 2021.
Approval of the Amendment will extend the term by three years, following a permitted holdover period from February 1, 2022, through May 31, 2025, for the Premises. The holdover period was due to the original use of the property being for CFS’s need for quarantine to protect CFS children and staff from the COVID-19 pandemic. As the pandemic continued, CFS continued the use of the residence for quarantine, but it was unclear at the time how long the pandemic would continue. Now CFS has a continued need of the Premises for a children’s care residence, to assist with housing at-risk children. The Amendment will also update the rental rate schedule and standard lease agreement language.
The project to approve the Amendment was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under Section 15301 - Existing Facilities (Class I), because there is no possibility that the leasing of the subject property will have a significant effect on the environment. Accordingly, no further action is required under CEQA.
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Summary of Lease Terms |
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Lessor: |
Tellez, Francisco J, Owner |
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Location: |
4070 Acre Lane, San Bernardino, CA 91784 |
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Size: |
Approximately 19,840 square feet of land improved with an approximately 1,826 square foot single-family home |
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Term: |
Three years, commencing on June 1, 2025 |
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Options: |
One (1) two-year option to extend the term |
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Rent: |
Cost per square foot per month: $1.92 |
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Monthly: $3,500 |
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Annual: $42,000 |
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*Mid-range for comparable facilities in the San Bernardino area per the competitive set analysis on file with 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 which existed at the time of expiration |
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Right to Terminate: |
Either party has the right to terminate this lease with 90-days’ notice to the other party |
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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 Daniella Hernandez, Deputies County Counsel, 387-5455) on April 28, 2025; Children and Family Services (Jeany Glasgow, Director, 387-2792) on March 12, 2025; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on March 10, 2025; Finance (John Hallen, 388-0208, and Eduardo Mora, 387-4376, Administrative Analysts) on April 8, 2025; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on April 14, 2025.
(BR: 531-2674)