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
JAMES LOCURTO, Director, Transitional Assistance Department
JEANY GLASGOW, Director, Children and Family Services
SUBJECT
Title
Amendment to Lease Agreement with T. T. Group, Inc. for Office Space in Barstow
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 4 to Lease Agreement No. 10-241 with T. T. Group, Inc. for office 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. 10-241 with T. T. Group, Inc. to:
a. Extend the term of the lease for five years for the period of January 1, 2026 through December 31, 2030, through the County’s exercise of an existing option.
b. Adjust the rental rate schedule.
c. Update the termination language and standard lease agreement language.
d. Continue leasing approximately 37,501 square feet of office space at 1900 East Main Street in Barstow for the Transitional Assistance Department and Children and Family Services.
e. Increase the total lease amount by $4,466,640, from $12,016,058 to a new total amount of $16,482,698.
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. 10-241 (Lease) will not result in the use of Discretionary General Funding (Net County Cost) as the Transitional Assistance Department (TAD) budget is 95% federal and state funded and 5% Local Share, while Children and Family Services (CFS) budget is 50% federal and state funded and 50% Local Share. The total cost of this five-year Amendment is $4,466,640. Lease payments will be made from the Real Estate Services Department (RESD) rents budget (7810001000) and reimbursed from the HS Administrative Claim budget (IO 3000448). Sufficient appropriation is included in the 2025-26 Rents and HS Administrative Claim budgets and will be included in future recommended budgets. Annual lease costs are as follows:
|
Year |
Annual Rent |
|
January 1, 2026 - December 31, 2026 |
$841,320 |
|
January 1, 2027 - December 31, 2027 |
$866,556 |
|
January 1, 2028 - December 31, 2028 |
$892,548 |
|
January 1, 2029 - December 31, 2029 |
$919,320 |
|
January 1, 2030 - December 31, 2030 |
$946,896 |
|
Total Cost |
$4,466,640 |
BACKGROUND INFORMATION
On April 27, 2010 (Item No. 70), the Board of Supervisors (Board) approved the 10-year Lease for 37,501 square feet of office space at 1876 East Main Street in Barstow for use by the Transitional Assistance Department (TAD) and Children and Family Services (CFS) (collectively the “Departments”). The original term of the Lease was for the period of November 1, 2010 through October 31, 2020. In the 15 years since the Lease was originally approved, the Board has approved three amendments to modify the address of the premises from 1876 East Main to 1900 East Main Street (Premises), modify the construction schedule and the term commencement and expiration dates to reflect January 1, 2011, as the commencement date and December 31, 2020, as the expiration date, adjust the rental rate schedule, extend the term of the Lease through December 31, 2025, and update standard lease agreement language.
|
Amendment No. |
Approval Date |
Item No. |
|
1 |
December 14, 2010 |
56 |
|
2 |
June 7, 2011 |
63 |
|
3 |
December 8, 2020 |
33 |
The Departments have requested that RESD negotiate an amendment to extend the existing Lease term, which is set to expire on December 31, 2025. The Amendment will exercise an existing five-year option to extend the term from January 1, 2026 through December 31, 2030. It will also adjust the rental rate schedule, update the termination language, and standard lease agreement language. The termination clause will be revised to allow the County to terminate the Lease effective January 1, 2029, with at least 120 days’ written notice to the Landlord. All other lease terms will 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.
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Summary of Lease Terms |
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Lessor: |
T. T. Group, Inc. Stewart Fahmy, Chief Operation Officer |
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Location: |
1900 East Main Street, Barstow |
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Size: |
37,501 square feet of office space |
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Term: |
January 1, 2026 through December 31, 2030 |
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Options: |
One five-year option remains |
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Rent: |
Cost per square foot: $1.87* |
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Monthly: $70,110 |
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Annual: $841,320 |
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*Mid-range for comparable facilities in the Barstow 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, except that County pays for electric costs that exceed an expense cap |
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Insurance: |
The Certificate of Liability Insurance, as required by each 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 beginning January 1, 2029, with a 120-day written 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, Daniella Hernandez and Adam Ebright, Deputies County Counsel, 387-5455) on November 18, 2025; Transitional Assistance (James Locurto, Director, 388-0245) on November 18, 2025; Children and Family Services (Jeany Glasgow, Director, 454-8667) on November 12, 2025; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on November 13, 2025; and County Finance and Administration (John Hallen, 388-0208, and Eduardo Mora, 387-4376, Administrative Analysts) on December 1, 2025.
(YG: 665-0268)