REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
October 21, 2025
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
SHARON NEVINS, Director, Department of Aging and Adult Services
SUBJECT
Title
Amendment to Lease Agreement with TVL Properties, LLC for Office Space in Barstow
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 2 to Lease Agreement No. 13-788 with TVL Properties, LLC, for office space, is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 2 to Lease Agreement No. 13-788 with TVL Properties, LLC, to:
a. Extend the term of the lease for five years, for the period of November 1, 2025, through October 31, 2030, following a permitted holdover period from October 1, 2023, through October 31, 2025.
b. Adjust the rental rate schedule.
c. Update standard lease agreement language.
d. Continue leasing approximately 5,000 square feet of office space, located at 536 East Virginia Way in Barstow, for the Department of Aging and Adult Services.
e. Increase the total lease amount by $814,332, from $990,600 to a new total amount of $1,804,932, inclusive of $225,000 for the holdover period.
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.
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
Approval of Amendment No. 2 (Amendment) to Lease Agreement No. 13-788 (Lease) will not result in the use of additional Discretionary General Funding (Net County Cost) as the Human Services (HS) Administrative Claim budget is 83% federal and state funded, 10% realignment revenue, and 7% Discretionary General Funding. The total cost of the Amendment is $1,804,932, which includes $225,000 for the holdover period. Lease payments will be made from the Real Estate Services Department (RESD) Rents budget (7810001000) and reimbursed from HS Admin Claim budget (3000270). Sufficient appropriation is included in the 2025-26 budget and will be included in future recommended budgets. Annual Lease costs are as follows:
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Lease Year |
Annual Lease Cost |
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*October 1, 2023, through October 31, 2025 |
$225,000 |
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November 1, 2025 - October 31, 2026 |
$111,000 |
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November 1, 2026 - October 31, 2027 |
$114,336 |
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November 1, 2027 - October 31, 2028 |
$117,768 |
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November 1, 2028 - October 31, 2029 |
$121,296 |
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November 1, 2029 - October 31, 2030 |
$124,932 |
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Total Lease Cost: |
$814,332 |
*Holdover period
BACKGROUND INFORMATION
On September 24, 2013 (Item No. 56), the Board of Supervisors (Board) approved the Lease with TVL Properties, LLC (Landlord) for a five-year term with one five-year extension option, for approximately 5,000 square feet of office space located at 536 East Virginia Way, in Barstow. On May 22, 2018 (Item No. 112), the Board approved Amendment No. 1, which extended the term through September 30, 2023, revised the rental rate schedule, and updated standard lease provisions.
Negotiations for Amendment No. 2 began in November 2024 to cover the new term of November 1, 2025, through October 31, 2030. During this period, the Lease continued under a permitted month-to-month holdover (October 1, 2023, through October 31, 2025) while RESD and the Landlord engaged in protracted negotiations regarding the rental rate adjustment and lease terms. The Landlord initially proposed a higher rental rate that exceeded current market conditions, and additional time was required to complete RESD’s market survey of comparable properties in the Barstow area and reach an agreement that ensured the County’s rental rate remained within fair market range for similar facilities. Maintaining occupancy during the holdover allowed DAAS to continue uninterrupted operations while RESD finalized terms that were fiscally responsible and consistent with County leasing standards.
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 - Class 1 Existing Facilities 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: |
TVL Properties, LLC, a California Limited Liability Company Lourdes Frost, Member |
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Location: |
536 East Virginia Way, Barstow |
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Size: |
Approximately 5,000 square feet of office space |
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Term: |
November 1, 2025, through October 31, 2030 |
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Options: |
One five-year Option |
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Rent: |
Cost per square foot per month (approximately): $1.85 |
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Monthly: $9,250 |
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Annual: $111,000 |
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*Mid-range for comparable facilities in the Barstow area per the competitive set analysis on file with RESD |
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Annual Increases: |
Approximately 3% |
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Improvement Costs: |
None |
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Custodial: |
Provided by Lessor |
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Maintenance: |
Provided by Lessor |
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Utilities: |
Provided by Lessor, provided costs in excess of an electric and gas cap are paid 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 of the Lease |
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Right to Terminate: |
County has the right to terminate this Lease with 30-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 Jacqueline Carey-Wilson, Deputies County Counsel, 387-5455) on September 15, 2025; Aging and Adult Services/Public Guardian (Sharon Nevins, Director, 891-3917) on September 23, 2025; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on September 19, 2025; and County Finance and Administration (John Hallen, Principal Administrative Analyst, 388-0208, and Eduardo Mora, Administrative Analyst, 387-4376) on October 6, 2025.
(AR: 501-7579)