REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
November 18, 2025
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
ARLENE MOLINA, Director, Preschool Services Department
SUBJECT
Title
Amendment to Lease Agreement with Anne S. Harriman, Trustee of the Anne S. Harriman Family Trust dated May 31, 2001, for Classroom, Office, and Playground Space in Rialto
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 2 to Lease Agreement No. 17-274 with Anne S. Harriman, Trustee of the Anne S. Harriman Family Trust dated May 31, 2001, for classroom, office, and playground space, is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 2 to Lease Agreement No. 17-274 with Anne S. Harriman, Trustee of the Anne S. Harriman Family Trust dated May 31, 2001, through the use of an alternative procedure as allowed per County Policy 12-02 - Leasing Privately Owned Real Property for County Use, to:
a. Extend the term of the lease for five years, for the period of December 1, 2025, through November 30, 2030.
b. Adjust the rental rate schedule.
c. Update the existing three-year option to extend the term of the lease to a five-year option.
d. Update the utilities, and standard lease agreement language.
e. Continue leasing approximately 7,628 square feet of classroom and office space and approximately 7,000 square feet of playground area located at 1360 West Foothill Boulevard in Rialto, for the Preschool Services Department.
f. Increase the total lease amount by $1,082,088, from $1,485,576 to a new total amount of $2,567,664.
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)
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COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of Amendment No. 2 (Amendment) to Lease Agreement No. 17-274 (Lease) will not result in the use of Discretionary General Funding (Net County Cost), as Preschool Services Department (PSD) lease costs are 87% federally funded, 11% state funded, and 2% other funded. The total cost of the Amendment is $1,082,088. Lease payments will be made from the Real Estate Services Department (RESD) Rents budget (7810001000) and reimbursed from the PSD budget (5911732220). Sufficient appropriation is included in the 2025-26 budget and will be included in future recommended budgets. Annual lease costs are as follows:
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Lease Year |
Lease Cost |
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December 1, 2025 - November 30, 2026 |
$203,808 |
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December 1, 2026 - November 30, 2027 |
$209,928 |
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December 1, 2027 - November 30, 2028 |
$216,228 |
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December 1, 2028 - November 30, 2029 |
$222,720 |
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December 1, 2029 - November 30, 2030 |
$229,404 |
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Total Lease Cost: |
$1,082,088 |
BACKGROUND INFORMATION
On May 23, 2017 (Item No. 102), the Board of Supervisors (Board) approved the Lease with Anne S. Harriman Family Trust dated May 31, 2001 (Landlord) for approximately 7,628 square feet of classroom and office space and approximately 7,000 square feet of playground area located at 1360 West Foothill Boulevard in Rialto (Premises). The original term was for the period of July 1, 2017, through May 31, 2022.
On November 15, 2022 (Item No. 75), the Board approved Amendment No. 1 to the Lease to update Landlord name, extend the term, adjust the rental rate schedule, provide for a fixed reimbursement of Landlord’s exterior electric costs for the property, and update standard lease agreement language.
PSD requested RESD to negotiate an amendment to extend the existing term. The Amendment will extend the term for the period of December 1, 2025, through November 30, 2030, adjust the rental rate schedule, update the existing three-year option to extend to a five-year option, remove the fixed reimbursement of Landlord’s exterior electric costs for the property, and update standard lease agreement language. All other Lease terms remain unchanged.
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.
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 three-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 disruption to PSD operations and save moving 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: |
Anne S. Harriman Trustee of the Anne S. Harriman Family Trust dated May 31, 2001 |
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Location: |
1360 West Foothill Boulevard, Rialto |
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Size: |
Approximately 7,628 square feet of classroom and office space and 7,000 square feet of playground area |
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Second Extended Term: |
December 1, 2025, through November 30, 2030 |
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Options: |
One five-year option |
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Rent: |
Cost per square foot per month: $2.23* |
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Monthly: $16,984 |
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Annual: $203,808 |
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*Mid-range for comparable facilities in the Rialto 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 County shall provide maintenance within the interior of the Premises, monitoring of the fire alarm system, maintenance of filters, freon, and thermostat for the heating and ventilation system, maintenance of the playground area, and clearing sewer line clogs to the extent caused by County |
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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 with 150-days’ notice provided federal or state funding to the program has been significantly reduced or eliminated |
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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 Sophie Curtis, Deputies County Counsel, 387-5455) on October 22, 2025; Preschool Services (Arlene Molina, Director, 383-2028) on October 16, 2025; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on October 16, 2025; and County Finance and Administration (Allegra Pajot, 388-0218, and Eduardo Mora, 387-4376, Administrative Analysts) on October 31, 2025.
(YG: 655-0268)