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Approve the Second Amendment to Lease Agreement with the Judicial Council of California for approximately 11,460 square feet of County-owned office space located on the First Floor of the Hall of Justice at 550-600 Union Avenue in Fairfield, for a four-year term commencing June 1, 2023, at an initial rate of $26,009 per month; and Authorize the County Administrator or designee to execute the amendment and any necessary, subsequent modifications or amendments
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board of Supervisors:
1. Approve the Second Amendment to Lease Agreement with the Judicial Council of California (JCC) for approximately 11,460 square feet of County-owned office space located on the First Floor of the Hall of Justice (HOJ) at 550-600 Union Avenue in Fairfield, for a four-year term commencing June 1, 2023, at an initial rate of $26,009 per month; and
2. Authorize the County Administrator or designee to execute the amendment and any necessary, subsequent modifications or amendments.
SUMMARY:
The proposed Second Amendment to Lease Agreement (Attachment A) extends the lease term for four years, commencing on June 1, 2023 and expiring on May 31, 2027. During the first year of the extended term, monthly rent payments are $26,009 (a 3% increase over the prior year), then increases 3% annually thereafter. The monthly rent payment of $26,009 equates to $2.27 per square foot, which is within the fair market rent range for comparable office space in Fairfield. The 3% increase is a widely accepted predicted average of CPI (Consumer Price Index) over a long-term lease. The proposed Lease Amendment contains no other changes from the original Lease Agreement and First Amendment (Attachment B).
FINANCIAL IMPACT:
Approval of the amendment will generate total lease revenue of $332,898 in FY2024/25, inclu...
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