REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 23, 2025
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
JEANY GLASGOW, Director, Children and Family Services
SUBJECT
Title
Amendment to Lease Agreement with David Webb, an Unmarried Man, for Office Space in Yucca Valley
End
RECOMMENDATIONS
Recommendation
1. Find that approval of Amendment No. 7 to Lease Agreement No. 95-130 with David Webb, an unmarried man, for the continued lease of office space, is exempt under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 7 to Lease Agreement No. 95-130 with David Webb, an unmarried man, to:
a. Exercise one of the existing four-year extension options, extending the lease term from October 1, 2025, through September 30, 2029, following a permitted holdover period from May 1, 2020, through September 30, 2025;
b. Adjust the rental rate schedule and update standard lease agreement language;
c. Continue leasing approximately 10,088 square feet of office space located at 56311 Pima Trail in Yucca Valley, for use by the Department of Children and Family Services;
d. Increase the total lease amount by $2,503,403, which includes $1,363,895 for the holdover period, from $4,605,600, to a new total amount of $7,109,003.
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. 7 (Amendment) to Lease Agreement No. 95-130 (Lease) will not result in the use of Discretionary General Funding (Net County Cost), as the Human Services (HS) budget is 50% Federal and State funded and 50% Local Share. The total cost of the Amendment is $2,503,403. Lease payments will be made from the Real Estate Services Department (RESD) Rents budget (7810001000) and reimbursed from the HS budget (IO 3000152). Sufficient appropriation is included in the 2025-26 budget and will be included in future recommended budgets. Annual lease costs are as follows:
|
Lease Year |
Annual Lease Cost |
|
*May 1, 2020 - September 30, 2025 |
$1,363,895 |
|
October 1, 2025 - September 30, 2026 |
$272,376 |
|
October 1, 2026 - September 30, 2027 |
$280,548 |
|
October 1, 2027 - September 30, 2028 |
$288,960 |
|
October 1, 2028 - September 30, 2029 |
$297,624 |
|
Total Lease Cost: |
$2,503,403 |
*Permitted holdover
BACKGROUND INFORMATION
On February 14, 1995 (Item No. 30), the Board of Supervisors (Board) approved the seven-year Lease with Monte Rauschenberg for approximately 10,088 square feet of office space located at 56311 Pima Trail in Yucca Valley (Premises) for use by Children and Family Services (CFS). The original term was for the period of May 1, 1995, through April 30, 2002. In the 30 years since the Lease was originally approved, the Board has approved six amendments, extending the term through April 30, 2020, adjusting the rental rate schedule, adding options to extend the term, reflecting changes of property ownership from Monte Rauschenberg to David Webb, an unmarried man (Landlord), providing for tenant improvements, and updating standard lease agreement language:
|
Amendment No. |
Approval Date |
Item No. |
|
1 |
August 13, 2002 |
50 |
|
2 |
April 13, 2004 |
43 |
|
3 |
October 31, 2006 |
60 |
|
4 |
June 5, 2012 |
69 |
|
5 |
December 2, 2014 |
32 |
|
6 |
March 14, 2023 |
44 |
CFS requested that RESD negotiate an amendment to extend the existing term, which expired on April 30, 2020. On May 1, 2020, the Lease went into a permitted holdover and CFS continued to occupy the Premises and abide by the terms. Approval of this Amendment was delayed due to continued negotiations concerning the terms of the Amendment and improvement specifications and costs to be performed by the prior Landlord. The prior Landlord would not agree to the extensive tenant improvements required, which included expanding the building square footage involving significant planning and costs. In December 2022, the building was sold to the new Landlord, David Webb, and while negotiations continued, the improvements were never finalized. RESD and CFS later determined it was necessary to exit the extended holdover period and return to a lease term, with the larger improvement project to be re-evaluated during this extended lease term under new tenant improvement project budgets.
The Amendment will extend the term for the period of October 1, 2025, through September 30, 2029, adjust the rental rate schedule and update standard lease agreement language. All other Lease terms remain unchanged.
Policy 12-02 requires a thorough and detailed review by the County Administrative Office (CAO), or designee, to validate the need for and provide a competitive analysis of any lease with a term of more than 20 years. Approval of the Amendment will yield an aggregate term of 34 years, and a potential aggregate term of 38 years, if the remaining extension option is exercised.
RESD, acting in its approved capacity as the CAO designee to review proposed real property leases under Policy 12-02, completed a market analysis of comparable properties and found the current rental rate, including annual increases during the four-year extended term, to be competitive. The Premises best meets the long-term requirements of CFS, and if the extension is approved by the Board, it would minimize operational disruptions to CFS and avoid additional cost associated with relocation.
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 the proposed Lease is to secure property to operate within the existing structure with negligible or no expansion of existing use.
|
Summary of Lease Terms |
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Lessor: |
David Webb, an unmarried man |
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Location: |
56311 Pima Trail, Yucca Valley |
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Size: |
Approximately 10,088 square feet |
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Extended Term: |
October 1, 2025, through September 30, 2029 |
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Remaining Options: |
One four-year option to extend |
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Rent: |
Cost per square foot per month: $2.25 |
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Monthly: $22,698 |
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Annual: $272,376 |
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*Mid-range for comparable facilities in the Yucca Valley 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 that County pays for electric expenses that exceed an electric utility expense cap |
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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: |
Month-to-month term upon the same terms and conditions, including the rent which existed at the time of expiration |
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Right to Terminate: |
County has the right to terminate with 90-day 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 Daniella Hernandez, Deputies County Counsel, 387-5455) on September 9, 2025; Children and Family Services (Jeany Glasgow, Director, 387-2792) on September 9, 2025; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on August 21, 2025; and County Finance and Administration (John Hallen, 388-0208, and Eduardo Mora, 387-4376, Administrative Analysts) on September 10, 2025.
(YG: 655-0268)