REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 18, 2025
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
MELANIE OROSCO, County Librarian, County Library
SUBJECT
Title
Amendment to Lease Agreement with Brett A. Tiano and Kiki M. Tiano, as Trustees of the Brett and Kiki Tiano Living Trust of 1991 dated August 22, 1991, as amended and restated on February 4, 2004, Trust “1” for Library Space in Joshua Tree
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 4 to Lease Agreement No. 05-206 with Brett A. Tiano and Kiki M. Tiano, as Trustees of the Brett and Kiki Tiano Living Trust of 1991 dated August 22, 1991, as amended and restated on February 4, 2004, Trust “1”, for library space, is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 4 to Lease Agreement No. 05-206 with Brett A. Tiano and Kiki M. Tiano, as Trustees of the Brett and Kiki Tiano Living Trust of 1991, dated August 22, 1991, as amended and restated on February 4, 2004, Trust “1”, through the use of an alternative procedure as allowed per County Policy 12-02 - Leasing Privately Owned Real Property for County Use, to extend the term of the lease five years for the period of July 1, 2025, through June 30, 2030, following a permitted holdover period of April 1, 2025, through June 30, 2025, adjust the rent schedule, add one five-year option to extend the term of the lease, and update standard lease agreement terms for approximately 2,000 square feet in Joshua Tree to be used by the County Library providing library services totaling $176,227, which includes the holdover amount of $7,255, for a total cost of $613,087.
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. 4 (Amendment) to Lease Agreement No. 05-206 (Lease) will not result in the use of Discretionary General Funding (Net County Cost). The total cost of this Amendment is $176,227. Lease payments will be made from the Real Estate Services Department (RESD) Rents budget (7810001000) and reimbursed from the County Library (Library) Claim budget (6402142600). Other costs associated with this Lease, including utility expenses, will be paid from the Library budget. Sufficient appropriation is included in the 2025-26 RESD Rents and Library Claim budgets and will be included in future recommended budgets. Annual lease costs are as follows:
|
Year |
Annual Lease Cost |
|
*April 1, 2025 - June 30, 2025 |
$7,255 |
|
July 1, 2025 - June 30, 2026 |
$31,200 |
|
July 1, 2026 - June 30, 2027 |
$32,448 |
|
July 1, 2027 - June 30, 2028 |
$33,744 |
|
July 1, 2028 - June 30, 2029 |
$35,088 |
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July 1, 2029 - June 30, 2030 |
$36,492 |
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Total Cost: |
$176,227 |
*Permitted holdover period
BACKGROUND INFORMATION
On March 29, 2005 (Item No. 47), the Board of Supervisors (Board) approved the Lease with Brett A. Tiano and Kiki M. Tiano, as Trustees of the Brett and Kiki Tiano Living Trust of 1991 dated August 22, 1991, as amended and restated on February 4, 2004, Trust “1” for continued use of 2,000 square feet of Library space, located at 6465 Park Boulevard in Joshua Tree (Premises), for library services. The original Lease term covered the period from April 1, 2005, through March 31, 2010. Since then, the Lease has been amended three times to extend the term through March 31, 2025, and to incorporate changes such as extension options, rent adjustments, and updates to standard lease provisions.
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Amendment No. |
Approval Date |
Item No. |
|
1 |
March 23, 2010 |
58 |
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2 |
March 3, 2015 |
47 |
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3 |
March 10, 2020 |
49 |
Due to the continued need to provide Library services in the Joshua Tree area, RESD negotiated an Amendment to extend the existing Lease, which expired on March 31, 2025. During ongoing negotiations which extended beyond the original expiration date, the Lease entered into a permitted holdover period. In support of the Library’s mission, RESD successfully secured a favorable rental rate to ensure uninterrupted library services. Library has remained in possession of the Premises and continues to operate under the terms of the existing Lease.
RESD negotiated a renewal of the Lease at the current rate. The Amendment extends the term for five years, from July 1, 2025, through June 30, 2030, adjusts the rent schedule, adds one five-year option to extend the term, and updates standard lease agreement language. All other terms and conditions of the Lease remain unchanged.
The project to approve the Amendment was reviewed pursuant to the California Environmental Quality Act and determined to be categorically exempt under Section 15301 - Existing Facilities (Class 1) because there is no possibility that the leasing of the subject property will have a significant effect on the environment.
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Summary of Lease Terms |
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Lessor: |
Brett A. Tiano and Kiki M. Tiano, as Trustees of the Brett and Kiki Tiano Living Trust of 1991 dated August 22, 1991, as amended and restated on February 4, 2004, Trust “1” |
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Location: |
6465 Park Boulevard, Joshua Tree |
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Size: |
Approximately 2,000 square feet |
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Term: |
Five years, July 1, 2025, through June 30, 2030 |
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Options: |
One five-year option to extend |
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Rent: |
Cost per square foot: Approximately *$1.30 |
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Monthly: $2,600 |
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Annual: $31,200 |
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*Mid-range for comparable facilities in the Joshua Tree area per the competitive set analysis of file with RESD |
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Annual Increases: |
Approximately 4% |
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Improvement Costs: |
None |
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Custodial: |
Provided by County |
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Maintenance: |
Provided by Lessor at no additional cost; County provides interior light bulb replacement and drain clearing |
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Utilities: |
Lessor provides water and sewer at no additional cost; County provides electricity, gas and trash service |
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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 with a 90-day written notice |
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Parking: |
Sufficient for County needs |
PROCUREMENT
County Policy 12-02 provides that the Board may approve the use of an alternative procedure to the use of a Formal Request For Proposal (RFP) process whenever the Board determines that compliance with the Formal RFP requirements would unreasonably interfere with the financial or programmatic needs of the County, or when the use of an alternative procedure would otherwise be in the best interest of the County. The site best meets the needs of Library for library space in Joshua Tree.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, and Daniella Hernandez, Deputies County Counsel, 387-5455) on May 22, 2025; Library (Melanie Orosco, County Librarian, 387-2220) on May 21, 2025; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on May 20, 2025; Finance (Celia McDonald, 387-4286, and Eduardo Mora, 387-4376, Administrative Analysts) on May 29, 2025; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on June 2, 2025.
(AR: 501-7579)