REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
December 16, 2025
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Lease Agreement with Moss Colton Properties, LLC for Additional Parking Area for Arrowhead Regional Medical Center in Colton
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of a Lease Agreement with Moss Colton Properties, LLC, for parking space is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1).
2. Approve a Lease Agreement with Moss Colton Properties, LLC, through the use of an alternative procedure as allowed under County Policy 12-02 - Leasing Privately Owned Real Property for County Use, to:
a. Lease for a three-year term commencing January 1, 2026 through December 31, 2028, with one two-year option to extend.
b. Authorize total rent in the amount of $185,460 for the initial three-year term.
c. Provide approximately 75,127 square feet of parking area for Arrowhead Regional Medical Center.
d. Identify the Premises as 1930 West Valley Boulevard, in Colton (Assessor’s Parcel Number 0254-171-07-0000).
3. Direct the Real Estate Services Department to file the Notice of Exemption in accordance with the California Environmental Quality Act.
4. Authorize the Auditor/Controller/Treasurer/Tax Collector to post the necessary 2025-26 budget adjustments as detailed in the Financial Impact section (Four votes required).
(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 this item will not result in the use of Discretionary General Funding (Net County Cost). The total cost of this three-year agreement is $185,460. Lease payments will be made from the Real Estate Services Department (RESD) Rents budget (7810001000) and reimbursed from the Arrowhead Regional Medical Center (ARMC) budget (9110004200). RESD requests the Auditor-Controller/Treasurer/Tax Collector to post the following adjustments to the 2025-26 budget:
|
Cost Center |
GL Account |
Description |
Action |
Amount |
|
7810001000 |
52002905 |
Rents & Leases - Structures, Improvements & Grounds |
Increase |
$30,000 |
|
7810001000 |
55415013 |
Services & Supplies Transfer In |
Increase |
$30,000 |
Sufficient appropriation will be included in future recommended budgets. Annual lease costs for a commencement date of January 1, 2026, are as follows:
|
Year |
Lease Cost |
|
January 1, 2026 - December 31, 2026 |
$60,000 |
|
January 1, 2027 - December 31, 2027 |
$61,800 |
|
January 1, 2028 - December 31, 2028 |
$63,660 |
|
Total Cost |
$185,460 |
BACKGROUND INFORMATION
On June 28, 2022 (Item No. 77), the Board of Supervisors (Board) approved Lease Agreement No. 22-566 with Moss Colton Properties, LLC (Moss Colton) for approximately 51,753 square feet of office and clinic space, located at 1930 West Valley Boulevard in Colton {Assessor’s Parcel Number (APN) 0254-171-07-0000] (Property) for use by Arrowhead Regional Medical Center (ARMC). The lease included exclusive parking for 207 spaces for County use. An adjacent portion of the parcel containing 120 additional parking spaces was not included in that agreement, as Moss Colton was using the lot for its dealership operations. Those spaces are now vacant and available for County use, if approved.
The proposed action will approve a new three-year lease agreement (Lease) with Moss Colton, for the period of January 1, 2026 through December 31, 2028, with one two-year option to extend. The Lease provides approximately 75,127 square feet of paved parking area consisting of 120 parking stalls.
The Lease includes an initial monthly rent of $5,000 ($60,000 annually) with 3% annual increases, and Moss Colton is responsible for maintaining the lighting, paving, and striping of the parking area. Both parties have the right to terminate the Lease with 90 days’ written notice.
This Lease is part of ARMC’s broader campus-wide expansion strategy to relocate non-clinical operations off the main hospital campus located at 400 North Pepper in Colton, thereby freeing up space for clinical improvements. Specifically, this off-site facility and associated parking will support ARMC’s plan to construct a state-of-the-art hybrid operating suite within the hospital.
On June 15, 2022, the County Administrative Office approved Capital Improvement Program (CIP) Project Request No. 22-148, submitted by ARMC, to lease office space at the Property. The proposed parking Lease remains part of and tied to CIP No. 22-148 to support continued facility expansion and operational realignment.
This item has been reviewed under the California Environmental Quality Act (CEQA) and determined to be categorically exempt under CEQA Guidelines, Section 15301 (Class 1 - Existing Facilities), as the proposed use involves no expansion of existing facilities.
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Summary of Lease Terms |
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Lessor: |
Moss Colton Properties, LLC Glenn L. Moss, Managing Member |
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Location: |
1930 West Valley Boulevard in Colton |
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Size: |
75,127 square feet of parking area |
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Term: |
Three years, January 1, 2026 through December 31, 2028 |
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Options: |
One two-year option to extend the term of the Lease |
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Rent: |
Monthly: $5,000 |
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Annual: $60,000 |
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*Mid-range for comparable facilities in the Colton 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; except County reimbursement of certain maintenance and repairs expenses at the premises incurred by the landlord resulting from the intentional misconduct of County or its invitees, not to exceed $5,000 per event |
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Utilities: |
Provided by Lessor |
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Insurance: |
The Certificate of Liability Insurance as required by the Lease will be obtained by RESD prior to occupancy |
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Holdover: |
In the event the County shall holdover and continue to occupy the premises with the consent of the Landlord, expressed or implied, the tenancy shall be deemed to be a tenancy from month-to-month upon the same terms and conditions, including rent, as existed, and prevailed at the time of the expiration of the term of this Lease |
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Right to Terminate: |
Both parties have the right to terminate with 90-day notice |
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Parking: |
120 reserved parking stalls |
PROCUREMENT
RESD requests Board approval to use an alternative procedure in lieu of a Formal Request for Proposals (RFP), as permitted under County Policy 12-02 - Leasing Privately Owned Real Property for County Use. County Policy 12-02 allows the use of an alternative process when a Formal RFP would unreasonably interfere with County operational needs or when such an alternative procedure is otherwise in the best interest of the County.
RESD conducted a competitive market analysis of comparable properties in the Colton area and determined that the proposed lease rate is competitive for a three-year term. The Property’s immediate proximity to ARMC’s adjacent office and clinic facility makes this site the most practical and cost-effective location to meet the department’s operational needs.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, Deputy County Counsel, and Charles Phan, Supervising Deputy County Counsel, 387-5455) on November 17, 2025; ARMC (Andrew Goldfrach, ARMC Chief Executive Officer, 580-3290) on November 12, 2025; Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Auditor-Controller Manager, 382-7022) on November 19, 2025; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on November 13, 2025; and County Finance and Administration (Yael Verduzco, Principal Administrative Analyst, 387-5285, and Jenny Yang, Administrative Analyst, 387-4884) on November 25, 2025.
(BR: 531-2674)