REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
August 18, 2026
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
JANKI PATEL, Acting Director, Department of Public Health
SUBJECT
Title
Amendment to Lease Agreement with Miros Enterprises, LLC for Office Space in Fontana
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 12 to Lease Agreement No. 94-1156 with Miros Enterprises, LLC, for office space is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 12 to Lease Agreement No. 94-1156 with Miros Enterprises, LLC, through the Real Estate Services Department’s use of an alternative procedure in lieu of a Formal Request for Proposals, as allowed under County Policy 12-02 - Leasing Privately Owned Real Property for County Use to:
a. Extend the term of the lease two years for the period of September 1, 2026 through August 31, 2028, for approximately 5,793 square feet of office space for the Department of Public Health, located at 9161 Sierra Avenue (Assessor’s Parcel Number 0194-313-09-0000) in Fontana, following a permitted holdover period from October 1, 2025 through August 31, 2026.
b. Add three two-year options to extend the lease.
c. Adjust the Rental Rate schedule for the two-year term, resulting in an increase of $620,609 inclusive of $193,721 for the permitted holdover period, increasing the total contract amount from $3,562,355 to $4,182,964.
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.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The total cost of Amendment No. 12 (Amendment) to Lease Agreement No. 94-1156 (Lease) with Miros Enterprises, LLC (Miros Enterprises) is $620,609, inclusive of $193,721 for the permitted holdover period. Lease payments will be made from the Real Estate Services Department (RESD) Rents budget (7810001000) and reimbursed from the Department of Public Health (DPH) Women, Infants and Children program (WIC) (9300001000). The DPH budget for the WIC program is funded with federal pass-through funds. Sufficient appropriation is included in the 2026-27 budget and will be included in future recommended budgets. Annual lease costs are as follows:
|
Year |
Lease Cost |
|
*October 1, 2025 - August 31, 2026 |
$193,721 |
|
September 1, 2026 - August 31, 2027 |
$211,332 |
|
September 1, 2027 - August 31, 2028 |
$215,556 |
|
Total Cost or Total Revenue |
$620,609 |
*Permitted Holdover Period
BACKGROUND INFORMATION
The recommended actions will approve RESD’s use of an alternative procedure in lieu of issuing a formal Request for Proposals (RFP) as allowed under County Policy 12-02 - Leasing Privately Owned Real Property for County Use (Policy 12-02), to extend the existing Lease for two years. The Amendment includes a permitted 11-month holdover for office space located at 9161 Sierra Avenue, Suites 101-105, Assessor’s Parcel Number 0194-313-09-0000 in Fontana (Premises), due to the continuing need to provide WIC services in that area.
WIC provides healthy foods, nutrition education, support, and access to health services to low-income women, infants, and children. On November 8, 1994 (Item No. 22), the Board of Supervisors (Board) approved the Lease, with three two-year options to extend for 5,310 square feet of office space at the Premises. The original term of the Lease was for the period of December 1, 1994 through November 30, 1999. In the nearly 32 years since the Lease was originally approved, the Board has approved 11 amendments, increasing the square footage leased to 5,793 square feet, documenting a change of property ownership, extending the term of the Lease through September 30, 2025, and updating standard lease agreement language.
|
Amendment No. |
Approval Date |
Item No. |
|
1 |
November 30, 1999 |
25 |
|
2 |
January 29, 2002 |
66 |
|
3 |
December 16, 2003 |
74 |
|
4 |
November 7, 2006 |
30 |
|
5 |
August 25, 2009 |
26 |
|
6 |
November 17, 2009 |
71 |
|
7 |
January 8, 2013 |
31 |
|
8 |
November 18, 2014 |
41 |
|
9 |
April 18, 2017 |
42 |
|
10 |
June 25, 2019 |
41 |
|
11 |
September 26, 2023 |
57 |
On May 17, 2023, the Capital Improvement Program (CIP) Project No. 23-175, submitted by DPH, was approved. On May 17, 2023, DPH requested to vacate the Premises, and to lease approximately 5,616 square feet of office space at an alternate location in the Fontana area. DPH recommends relocating to a location that has greater visibility to the public for security purposes and increased accessibility to clients. Ideally, the new location will be facing the street to increase community awareness as well.
While the CIP-approved relocation remains in progress, DPH continues to require uninterrupted WIC services in the Fontana area, as well as sufficient time needed to secure an alternate site, DPH requested that RESD prepare an amendment to extend the term of the Lease by two additional years. Longer than anticipated negotiations with Miros Enterprises, LLC, and the lack of a suitable replacement facility created delays in completing the amendment. As a result, effective October 1, 2025, the Lease continued on a permitted month-to-month tenancy. DPH has continued to occupy the Premises and abide by the terms of the Lease. All other terms and conditions of the Lease remain unchanged.
The project to approve the Amendment with Miros Enterprises was reviewed pursuant to the California Environmental Quality Act Guidelines (CEQA) Section 15301 - Existing Facilities (Class 1) and determined to be categorically exempt because the approval consists of the continued leasing and occupancy of an existing office facility with no expansion of the existing use, building footprint, or operational capacity.
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Summary of Lease Terms |
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Lessor: |
Miros Enterprises, LLC |
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Location: |
9161 Sierra Avenue Suites 101-105, Fontana |
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Size: |
5,793 square feet of office space |
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Term: |
Two years, commencing on September 1, 2026 |
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Options: |
Three two-year options |
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Rent: |
Cost per square foot per month: $3.04* full-service gross |
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Monthly: $17,611 |
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Annual: $211,332 |
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*Medium-range for comparable facilities in the San Bernardino area per the competitive set analysis on file with RESD |
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Annual Increases: |
Approximately 2% |
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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 |
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Insurance: |
The Certificate of Liability Insurance, as required by the Lease, is on file with the 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
Policy 12-02 provides that the Board may approve the use of an alternative procedure to the use of an 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.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, Deputy County Counsel, 387-5455) on July 20, 2026; Public Health (Janki Patel, Acting Director, 387-9146) on July 21, 2026; Purchasing (Jessica Barajas, Supervising Buyer, 387-2065) on July 16, 2026; County Finance and Administration (Iliana Rodriguez, 386-8392, and Eduardo Mora, 387-4376, Administrative Analysts) on August 3, 2026
(PHL: 665-4890)