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
MELANIE OROSCO, County Librarian, County Library
SUBJECT
Title
Amendment to Lease Agreement with the City of Grand Terrace for Library Space in Grand Terrace
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 7 to Lease Agreement No. 04-427 with the City of Grand Terrace for library space, is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 7 to Lease Agreement No. 04-427 with the City of Grand Terrace to:
a. Extend the term of the lease for six years, for the period of November 1, 2025, through October 31, 2031, following a permitted holdover period from July 1, 2024, through October 31, 2025.
b. Adjust the rental rate schedule.
c. Update the existing three-year option to a five-year option to extend.
d. Update standard lease agreement language.
e. Continue leasing approximately 3,500 square feet of library space, located at 22795 Barton Road in Grand Terrace for the County Library.
f. Increase the total lease amount by $343,780, from $386,923 to a new total amount of $730,703, inclusive of $31,360 for the permitted 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.
FINANCIAL IMPACT
Approval of Amendment No. 7 (Amendment) to Lease Agreement No. 04-427 (Lease) will not result in the use of Discretionary General Funding (Net County Cost). The Amendment increases the lease cost by $343,780, for a total of $730,703, inclusive of $31,360 for the permitted holdover period. Lease payments will be made from the Real Estate Services Department (RESD) Rents budget (7810001000) and reimbursed from the County Library (Library) budget (6402202600). 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 |
|
*July 1, 2024 - October 31, 2025 |
$31,360 |
|
November 1, 2025 - October 31, 2026 |
$48,300 |
|
November 1, 2026 - October 31, 2027 |
$49,752 |
|
November 1, 2027 - October 31, 2028 |
$51,240 |
|
November 1, 2028 - October 31, 2029 |
$52,776 |
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November 1, 2029 - October 31, 2030 |
$54,360 |
|
November 1, 2030 - October 31, 2031 |
$55,992 |
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Total Lease Cost: |
$343,780 |
*Permitted holdover period.
BACKGROUND INFORMATION
On May 25, 2004 (Item No. 42), the Board of Supervisors (Board) approved the Lease, with three two-year options to extend the term for 3,500 square feet of library space for the County Library located at 22795 Barton Road in Grand Terrace (Premises). The original term of the Lease was for the period of June 1, 2004, through May 31, 2009. In the 21 years since the Lease was originally approved, the Board has approved six amendments to exercise the initial options to extend the term, add two three-year options to extend the term, exercise two additional options to extend the term, adjust the rental rate schedule, and update standard lease agreement language.
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Amendment No. |
Approval Date |
Item No. |
|
1 |
April 21, 2009 |
30 |
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2 |
May 17, 2011 |
60 |
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3 |
May 21, 2013 |
50 |
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4 |
April 21, 2015 |
52 |
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5 |
May 22, 2018 |
111 |
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6 |
June 22, 2021 |
74 |
Library requested that RESD negotiate an amendment to extend the existing term which expired on June 30, 2024. Approval of this Amendment was delayed due to continued negotiations concerning the rental rate and lease term. On July 1, 2024, the Lease went into a permitted holdover and Library has continued to occupy the Premises and abide by the terms of the Lease.
The Amendment will extend the term for the period of November 1, 2025, through October 31, 2031, adjust the rental rate schedule, update the existing three-year option to a five-year extension option and update standard lease agreement language. All other lease terms 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 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.
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 five-year extended term, to be competitive.
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Summary of Lease Terms |
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Lessor: |
City of Grand Terrace Konrad Bolowich, City Manager |
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Location: |
22795 Barton Road, Grand Terrace |
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Size: |
3,500 square feet |
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Term: |
November 1, 2025, through October 31, 2031 |
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Options: |
One five-year option |
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Rent: |
Cost per square foot: $1.15 |
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Monthly: $4,025 |
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Annual: $48,300 |
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*Low-range for comparable facilities in the Grand Terrace 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 |
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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: |
County has the right to terminate by providing a 180-day written notice |
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Parking: |
Sufficient for County’s 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 17, 2025; Library (Melanie Orosco, County Librarian, 387-2220) on September 19, 2025; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on September 19, 2025; and County Finance and Administration (Celia McDonald, 387-4286, and Eduardo Mora, 387-4376, Administrative Analysts) on October 1, 2025.
(YG: 655-0268)