REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
April 21, 2026
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
ARLENE MOLINA, Director, Preschool Services Department
SUBJECT
Title
Amendment to Lease Agreement with Carol E. Bell, Trustee of the RF Smith and CE Smith Living Trust-Marital Deduction Trust and Carol E. Bell, Trustee of the Carol E. Bell Family Trust of 2009, for Office, Classroom, Playground and Parking Space in Twentynine Palms
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 7 to Lease Agreement No. 94-1191 with Carol E. Bell, Trustee of the RF Smith and CE Smith Living Trust-Marital Deduction Trust and Carol E. Bell, Trustee of the Carol E. Bell Family Trust of 2009, for office, classroom, playground and parking 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. 94-1191 with Carol E. Bell, Trustee of the RF Smith and CE Smith Living Trust-Marital Deduction Trust and Carol E. Bell, Trustee of the Carol E. Bell Family Trust of 2009 to:
a. Extend the term of the lease for five years for the period of May 1, 2026 through April 30, 2031, by exercising the first of three existing five-year options.
b. Adjust the rental rate schedule.
c. Continue leasing approximately 3,900 square feet of office and classroom space, 4,332 square feet of playground space, and 15,905 square feet of parking space at 71405 and 71409 Twentynine Palms Highway in Twentynine Palms, for the Preschool Services Department.
d. Increase the total lease amount by $404,988, from $1,454,180 to a new total amount of $1,859,168.
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 this item will not result in the use of Discretionary General Funding (Net County Cost). Preschool Services Department (PSD) lease costs are 90% federally funded and 10% state funded. The total cost of Amendment No. 7 (Amendment) to Lease Agreement No. 94-1191 (Lease) is $404,988. Lease payments will be made from the Real Estate Services Department (RESD) Rents budget (7810001000) and reimbursed from the PSD budget (5911742220). Other costs associated with this Lease include minor interior and exterior maintenance, heating, ventilation, and air conditioning maintenance (HVAC), and upkeep of the grounds, playground, and parking areas. The costs will be paid directly from the PSD budget (5911742220). Sufficient appropriation is included in PSD’s 2025-26 budget and will be included in future recommended budgets. Annual Lease costs are as follows:
|
Year |
Annual Lease Cost |
|
May 1, 2026 - April 30, 2027 |
$76,284 |
|
May 1, 2027 - April 30, 2028 |
$78,576 |
|
May 1, 2028 - April 30, 2029 |
$80,928 |
|
May 1, 2029 - April 30, 2030 |
$83,352 |
|
May 1, 2030 - April 30, 2031 |
$85,848 |
|
Total Cost |
$404,988 |
BACKGROUND INFORMATION
On November 22, 1994 (Item No. 39), the Board of Supervisors (Board) approved the five-year Lease, with three four-year options to extend the term of the Lease with Glenn R. Crichton and Charlene Y. Crichton for approximately 3,900 square feet of classroom and office space, 4,332 square feet of playground space, and 15,905 square feet of parking space at 71405 and 71409 Twentynine Palms Highway in Twentynine Palms. The original term of the Lease was for the period of October 17, 1994 through October 31, 1999. In the 32 years since the Lease was originally approved, the Board has approved six amendments to reflect a change of ownership to Carol E. Bell, Trustee of the RF Smith and CE Smith Living Trust-Marital Deduction Trust and Carol E. Bell, Trustee of the Carol E. Bell Family Trust of 2009, extend the term of the Lease through April 30, 2026, adjust the rental rate schedule, add additional extension options, and update standard lease agreement language.
|
Amendment No. |
Approval Date |
Item No. |
|
1 |
July 13, 1999 |
17 |
|
2 |
January 6, 2004 |
59 |
|
3 |
November 20, 2007 |
39 |
|
4 |
October 4, 2011 |
20 |
|
5 |
September 26, 2017 |
30 |
|
6 |
April 20, 2021 |
43 |
PSD requested that RESD negotiate an amendment to extend the existing Lease term, which is set to expire on April 30, 2026. The Amendment will exercise the first of three existing five-year extension options, extending the term from May 1, 2026 through April 30, 2031. The Amendment will also adjust the rental rate schedule and update standard lease agreement language. All other Lease terms will remain unchanged.
RESD, acting in its approved capacity as the County Administrative Office 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. The site meets the current requirements of PSD, and if the extension is approved by the Board, it would minimize operational disruption and avoid relocation costs.
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.
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Summary of Lease Terms |
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Lessor: |
Carol E. Bell, Trustee of the RF Smith and CE Smith Living Trust-Marital Deduction Trust and Carol E. Bell, Trustee of the Carol E. Bell Family Trust of 2009 |
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Location: |
71405 and 71409 Twentynine Palms Highway, Twentynine Palms |
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Size: |
Approximately 3,900 square feet of office and classroom space, 4,332 square feet of playground space, and 15,905 square feet of parking space |
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Term: |
May 1, 2026 through April 30, 2031 |
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Options: |
Two five-year options remain |
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Rent: |
Cost per square foot per month: $1.63 |
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Monthly: $6,357 (based on 3,900 square feet of interior space) |
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Annual: $76,284 |
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*Mid-range for comparable facilities in the Twentynine Palms 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 County |
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Maintenance: |
Provided by Lessor; except that the County is responsible for minor interior and exterior maintenance, HVAC, and maintenance of the grounds, playground, and parking areas |
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Utilities: |
Provided 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 which existed at the time of expiration |
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Right to Terminate: |
County has the right to terminate with 90-days’ notice |
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Parking: |
Sufficient for County needs |
PROCUREMENT
The procurement process required by County Policy 12-02 does not apply to amendments of existing Leases, provided the amendment does not exceed the maximum term (including options) of the Lease.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II and Adam Ebright, Deputies County Counsel, 387-5455) on March 18, 2026; Preschool Services (Arlene Molina, Director, 383-2078) on March 19, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on March 20, 2026; and County Finance and Administration (Allegra Pajot, 388-0218, and Eduardo Mora, 387-4376, Administrative Analysts) on April 6, 2026.
(YG: 665-0268)