REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 22, 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 EG & T Commercial Real Estate, LLC for Office and Storage Space in Hesperia
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 2 to Lease Agreement No. 18-788 with EG & T Commercial Real Estate, LLC for office and storage 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. 18-788 with EG & T Commercial Real Estate, 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 Agreement for approximately 4,011 square feet of office space and approximately 1,998 square feet of storage space at 14135 Main Street, Suite 4135-250 in Hesperia (Assessor’s Parcel Number 3057-121-22-0000), for a three-year period, for a new Lease Agreement term of November 1, 2026 through October 31, 2029, based on the County’s exercise of an existing three-year option to extend the Lease Agreement.
b. Add two additional three-year options to extend the Lease Agreement term.
c. Adjust the rental rate schedule for the three-year extension term, from November 1, 2026 through October 31, 2029, in the amount of $520,800.
d. Increase the total Lease amount by $520,800, from $1,130,220 to a new total amount of $1,651,020.
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. 2 (Amendment) to Lease Agreement No. 18-788 (Lease) with EG & T Commercial Real Estate, LLC (EG & T) is $520,800. 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) budget (930001000). The DPH budget for the WIC program is funded with federal pass-through funds. Other costs associated with this Lease include utilities and custodial services, which are paid directly by DPH WIC. 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 |
Estimate of Other Costs |
|
November 1, 2026 - October 31, 2027 |
$170,172 |
$8,725 |
|
November 1, 2027 - October 31, 2028 |
$173,580 |
$8,987 |
|
November 1, 2028 - October 31, 2029 |
$177,048 |
$9,256 |
|
Total Cost |
$520,800 |
$26,968 |
BACKGROUND INFORMATION
This proposed Amendment extends the Lease term for three years, from November 1, 2026 through October 31, 2029, pursuant to the County's exercise of its existing option. The Amendment also adjusts the rental rate schedule, adds two additional three-year options to extend the term, and updates standard lease agreement language.
On October 16, 2018 (Item No. 51), the Board of Supervisors (Board) approved a seven-year Lease with one three-year option to extend the term for approximately 4,011 square feet of office space for DPH WIC and 1,998 square feet of storage space for PRP located at 14135 Main Street Suite, 4135-250, in Hesperia (Assessor’s Parcel Number 3057-121-22-0000) (Property). The original term commenced November 1, 2019, and expires on October 31, 2026. Since that time, the Board approved Amendment No. 1 (Item No. 51) on April 21, 2020, to update standard lease language including a change in ownership of the Property, update the landlord and notice provisions, and revise procedures for future ownership transfers.
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.
|
Summary of Lease Terms |
|
|
Lessor: |
EG & T Commercial Real Estate, LLC |
|
|
|
|
Location: |
14135 Main Street Suite 4135-250, Hesperia |
|
|
|
|
Size: |
6,009 square feet total with approximately 4,011 square feet of office space for WIC and approximately 1,998 square feet of storage space for PRP |
|
|
|
|
Term: |
Three years commencing November 1, 2026 through October 31, 2029 |
|
|
|
|
Options: |
Two three-year options |
|
|
|
|
Rent: |
Cost per square foot per month: $2.36 |
|
|
Monthly: $14,181 |
|
|
Annual: $170,172 |
|
|
High-range for comparable facilities in the Hesperia area per the competitive set analysis on file with RESD |
|
|
|
|
Annual Increases: |
Approximately 2% |
|
|
|
|
Improvement Costs: |
None |
|
|
|
|
Custodial: |
Provided by County |
|
|
|
|
Maintenance: |
Provided by Lessor |
|
|
|
|
Utilities: |
County pays for Electric and Gas |
|
|
|
|
Insurance: |
The Certificate of Liability Insurance, as required by the Lease, is on file with RESD |
|
|
|
|
Holdover: |
Upon the expiration of the Lease 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 |
|
|
|
|
Right to Terminate: |
County has right to terminate with 90 days’ notice |
|
|
|
|
Parking: |
Sufficient for County needs |
PROCUREMENT
County Policy 12-02 provides that the Board may approve the use of an alternative procedure to the use of a Formal Request for Proposals (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 August 10, 2026; Public Health (Shannon Bailey, Acting Assistant Director, 387-9146) on August 12, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on August 13, 2026; and County Finance and Administration (Iliana Rodriguez, 387-4205, and Eduardo Mora, 387-4376, Administrative Analysts) on September 4, 2026.
(PHL: 665-4890)