REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 1, 2026
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
GILBERT RAMOS, Assistant Executive Officer, Human Services
SUBJECT
Title
Lease Amendment with Lena Partners, LLC for Office Space in San Bernardino
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 3 to Lease Agreement No. 15-234 with Lena Partners, 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. 3 to Lease Agreement No. 15-234 with Lena Partners, LLC to:
a. Extend the term of the lease agreement for 10 years, from September 1, 2026 through August 31, 2036, pursuant to the County’s exercise of two final remaining options to extend, following a permitted holdover for the time period of March 1, 2026 through August 31, 2026.
b. Provide for Landlord-funded turnkey tenant improvements at no additional cost to the County.
c. Adjust the rental rate schedule for the County’s exclusive use of approximately 22,600 square feet of office space located at 150 South Lena Road in San Bernardino (Assessor’s Parcel Number 0279-261-19-0000), for the Human Services Department.
d. Increase the total lease agreement amount by $7,450,986, from $5,736,201 to a new total amount of $13,187,187, inclusive of $300,270 for the permitted holdover.
e. Authorize the Purchasing Agent to issue purchase orders, as necessary, for a total amount not to exceed $50,000, for any minor change orders that may arise for any County-requested modifications or additions to the turnkey tenant improvements set forth in Amendment No. 3 to Lease Agreement No. 15-234 (Four votes required).
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 require Discretionary General Funding (Net County Cost). The total cost associated with Amendment No. 3 (Amendment) to Lease Agreement No. 15-234 (Lease), including the six-month permitted holdover period and 10-year extension, is $7,450,986. Electrical costs exceeding the annual Lease cap of $48,816, subject to 3% annual increases, are not included in the Amendment amount and will be funded within the existing Human Services Department (HS) budget. Lease payments will be made from the Real Estate Services Department (RESD) Rents budget (7812001000) and reimbursed by the HS. Sufficient appropriation is included in the 2026-27 budget and will be included in future recommended budgets. The HS Administrative Claim budget for this Lease is 85% federal and state funded, and 15% local share funded. Annual Lease costs are as follows:
|
Lease Year |
Annual Cost |
|
*March 1, 2026 - August 31, 2026 |
$300,270 |
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September 1, 2026 - August 31, 2027 |
$623,760 |
|
September 1, 2027 - August 31, 2028 |
$642,468 |
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September 1, 2028 - August 31, 2029 |
$661,752 |
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September 1, 2029 - August 31, 2030 |
$681,600 |
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September 1, 2030 - August 31, 2031 |
$702,048 |
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September 1, 2031 - August 31, 2032 |
$723,108 |
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September 1, 2032 - August 31, 2033 |
$744,804 |
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September 1, 2033 - August 31, 2034 |
$767,148 |
|
September 1, 2034 - August 31, 2035 |
$790,164 |
|
September 1, 2035 - August 31, 2036 |
$813,864 |
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Total Lease Cost |
$7,450,986 |
*Permitted Holdover Period
BACKGROUND INFORMATION
On May 19, 2015 (Item No. 63), the Board of Supervisors (Board) approved the 10-year and nine-month Lease, with two five-year options to extend the term for 21,640 square feet of office space at 150 South Lena Road in San Bernardino, Assessor’s Parcel Number 0279-261-19-0000 (Premises), which was subsequently expanded to a total of 22,600 square feet. The original term of the Lease was for the period of May 20, 2015 through February 28, 2026. Since the Lease was originally approved in 2015, the Board approved two amendments to reflect a change in ownership from Ree-Charge Arrow Blvd., LLC to Lena Partners, LLC (Lena), increase the purchase order budget to complete tenant improvements associated with an expanded building footprint and update standard Lease language for 22,600 square feet of office space.
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Amendment No. |
Approval Date |
Item No. |
|
1 |
November 3, 2015 |
24 |
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2 |
May 24, 2016 |
129 |
After the conclusion of extended lease negotiations that included planning for long term tenant improvements, HS requested that RESD prepare Amendment No. 3 to extend the Lease by exercising the two remaining five-year options, resulting in a continuous 10-year extension from September 1, 2026 through August 31, 2036. The Amendment also provides for turnkey tenant improvements by the Landlord at no cost to the County, adjusts the rental schedule, and updates the Lease to incorporate the County's current standard provisions. All remaining terms and conditions of the Lease remain unchanged.
Pursuant to Lease provisions regarding any County modifications or additions to Lena’s Improvements, in order to timely complete the Improvements without undue delay, RESD requests, on behalf of HS, that the Board authorize the Purchasing Agent to issue purchase orders, as necessary, for a total amount not to exceed $50,000 for any minor change orders that may arise for any County requested modifications or additions to the turnkey tenant improvements set forth in the Lease. Any proposed change orders that cumulatively exceed $50,000 shall be processed by a formal amendment to the Lease approved by the Board. Public Contract Code 20137 requires four votes by the Board to authorize changes or alterations to a contract where the cost of such change does not exceed 10% of the original contract price but does exceed the amounts specified in Public Contract Code sections 20121 ($4,000) and 21031 ($25,000). All change orders and/or contingencies will be approved by RESD prior to authorizing any work or payment(s) to the Landlord.
RESD Staff reviewed the recommended action pursuant to the California Environmental Quality Act (CEQA) and determined that it is exempt under Section 15301 - Class 1 Existing Facilities because the proposed Amendment continues the County’s occupancy and operation within an existing structure, with negligible or no expansion of the existing use. Accordingly, no further action is required under CEQA.
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Summary of Lease Terms |
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Lessor: |
Lena Partners, LLC |
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Location: |
150 S. Lena Road, San Bernardino |
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Size: |
Approximately 22,600 square feet of office space |
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Term: |
10 years commencing September 1, 2026 |
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Options: |
None |
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Rent: |
Rent per square foot per month: $2.30* full-service gross |
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Monthly: $51,980 |
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Annual: $623,760 |
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*Low-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 3% |
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Improvement Costs: |
Provided by Lessor |
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Janitorial: |
Provided by Lessor |
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Maintenance: |
Provided by Lessor |
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Utilities: |
Provided by Lessor; County to pay electrical costs in excess of $48,816 per Lease year or $0.18 per square foot per month (electrical utility expense cap), which is subject to 3% annual increases |
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Insurance: |
The Certificate of Liability Insurance, as required by the Lease, is on file with RESD |
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Right to Terminate: |
None during the Extended Term ending August 31, 2036; termination for convenience permitted during any subsequent extension or renewal term in accordance with the Lease |
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Holdover: |
Month-to-month upon the same terms and conditions, including rent, as existed and prevailed at the time of the expiration of the term of this Lease |
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Parking: |
Sufficient for Lessee’s parking needs |
PROCUREMENT
On May 19, 2015 (Item No. 63), the Board approved the Lease, which was procured according to County Policy 12-02 - Leasing Privately Owned Real Property for County Use (Policy), using a Formal Request for Proposals (Formal RFP) process. 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, Deputy County Counsel, 387-5455) on August 3, 2026; Human Services (Chris Lange, Deputy Director, 386-8393) on August 3, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on July 22, 2026; and County Finance and Administration (John Hallen, 388-0208, and Eduardo Mora, 387-4376, Administrative Analysts) on August 11, 2026.
(JF:269-1984)