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
JANKI PATEL, Acting Director, Department of Public Health
SUBJECT
Title
Amendment to Lease Agreement with John R. Hosman, LLC for Office and Clinic Space in Twentynine Palms
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 11 to Lease Agreement No. 98-423 with John R. Hosman, LLC, for office and clinic space is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 11 to Lease Agreement No. 98-423 with John R. Hosman, LLC, 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 three years, from November 1, 2026 through October 31, 2029.
b. Adjust the rental rate schedule, add two three-year options to extend the term, and update standard lease agreement language.
c. Continue leasing approximately 1,800 square feet of office and clinic space, located at 6527 Desert Queen Avenue in Twentynine Palms (Assessor’s Parcel Number 0617-105-09-0000), for the Department of Public Health, Women, Infants and Children.
d. Increase the total lease amount by $96,804, from $612,528 to $709,332.
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 associated with Amendment No. 11 (Amendment) to Lease Agreement No. 98-423 (Lease) is $96,804. Lease payments will be made from the Real Estate Services Department (RESD) Rents budget (7810001000) and reimbursed from the DPH-WIC budget (9300001000). The Department of Public Health’s (DPH) Women, Infants and Children (WIC) lease costs are funded with federal pass-through funds. Sufficient appropriation is included in the 2026-27 recommended budget and will be included in future recommended budgets. Annual lease costs are as follows:
|
Year |
Annual Lease Cost |
|
November 1, 2026 - October 31, 2027 |
$31,320 |
|
November 1, 2027 - October 31, 2028 |
$32,256 |
|
November 1, 2028 - October 31, 2029 |
$33,228 |
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Total Cost |
$96,804 |
BACKGROUND INFORMATION
On June 16, 1998 (Item No. 14), the Board of Supervisors (Board) approved the Lease for approximately 1,800 square feet of office and clinic space located at 6527 Desert Queen Avenue in Twentynine Palms, Assessor’s Parcel Number 0617-105-09-0000 (Premises), for WIC. The Lease included three two-year options to extend and had an original term from September 1, 1998 through August 31, 2003. In the 28 years since the Lease was originally approved, the Board has approved 10 amendments to extend the term, adjust the rental rate schedule, add options to extend the term, reflect a change of property ownership to John R. Hosman, LLC (Landlord) and update standard lease agreement language.
|
Amendment No. |
Approval Date |
Item No. |
|
1 |
November 18, 2003 |
48 |
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2 |
August 16, 2005 |
25 |
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3 |
August 7, 2007 |
45 |
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4 |
July 14, 2009 |
41 |
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5 |
July 10, 2012 |
44 |
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6 |
August 25, 2015 |
42 |
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7 |
October 16, 2018 |
37 |
|
8 |
October 8, 2019 |
34 |
|
9 |
October 26, 2021 |
57 |
|
10 |
October 21, 2025 |
48 |
DPH requested that RESD negotiate an extension of the term to enable DPH to continue to provide health and social services to the Twentynine Palms area residents. The Amendment will extend the term for the period of November 1, 2026 through October 31, 2029, adjust the rental rate schedule, add two three-year options to extend, and update standard lease agreement language. All other Lease terms remain unchanged.
Policy 12-02 provides that the Board may approve an alternative procedure in lieu 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.
RESD, acting in its approved capacity as the County Administrative Office designee for reviewing proposed real property leases under Policy 12-02, completed a market analysis of comparable properties and determined that the current rental rate for the three-year extension term is competitive. The site meets WIC’s operational requirements, minimizes disruption, and avoids relocation costs.
The proposed 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 it will allow continued operation within the existing Premises with negligible or no expansion of the existing use.
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Summary of Lease Terms |
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Lessor: |
John R. Hosman, LLC John R. Hosman, Member |
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Location: |
6527 Desert Queen Avenue, Twentynine Palms |
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Size: |
1,800 square feet of office and clinic space |
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Term: |
November 1, 2026 through October 31, 2029 |
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Options: |
Two three-year options |
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Rent: |
Cost per square foot per month: $1.45 |
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Monthly: $2,610 |
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Annual: $31,320 |
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*Low-range for comparable facilities in the Twentynine Palms area per the competitive set analysis on file with RESD |
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Annual Increases: |
Approximately 3% annually |
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Improvement Costs: |
None |
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Custodial: |
Provided by County |
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Maintenance: |
Provided by Lessor |
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Utilities: |
Provided by Lessor except that County pays for interior electric and gas and telephone service |
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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 expiration 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 may terminate with 90-day notice |
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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, Deputy County Counsel, 387-5455) on August 4, 2026; Public Health (Janki Patel, Acting Director, 387-9146) on August 4, 2026; Purchasing (Jessica Barajas, Supervising Buyer, 387-2065) on July 29, 2026; and County Finance and Administration (Iliana Rodriguez, 386-8392, and Eduardo Mora, 387-4376, Administrative Analysts) on August 17, 2026.
(PHL: 665-4890)