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Approve the first amendment to the Lease Agreement for 1055 Horizon Drive, Suite B in Fairfield, extending the lease term for an additional three-years from March 1, 2026 through February 28, 2029, at an initial monthly rent of $2,041 with annual increases of 3%; and Authorize the County Administrator, with County Counsel concurrence, to execute the amendment and any subsequent modifications or amendments
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Published Notice Required? Yes __X_ No __ _
Public Hearing Required? Yes ____ No _ __
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board of Supervisors:
1. Approve the first amendment to the Lease Agreement for 1055 Horizon Drive, Suite B in Fairfield, extending the lease term for an additional three-years from March 1, 2026 through February 28, 2029, at an initial monthly rent of $2,041 with annual increases of 3%; and
2. Authorize the County Administrator, with County Counsel concurrence, to execute the amendment and any subsequent modifications or amendments.
SUMMARY/DISCUSSION:
The Sheriff’s Office Property/ID Bureau requires dedicated warehouse space for operational purposes. The County does not have sufficient available space within its existing facilities to meet the operational need. The facility located at 1055 Horizon Drive, Suite B in Fairfield has been leased and occupied by the Sheriff’s Office since 2016 for this purpose.
The Board previously approved a five-year Lease Agreement effective March 18, 2021 (Attachment A). The proposed first amendment (Attachment B) would extend the lease for an additional three-year term.
Staff reviewed available comparable warehouse properties currently available in the market (Attachment C). Based on that analysis, continuing the lease at 1055 Horizon Drive is recommended because it offers the lowest monthly rent among comparable options, is appropriately sized for the Property/ID Bureau (1,954 square feet), and is in close proximity to the Clay Bank facilities and related Sheriff’s Office operations.
In accordance with Government Code section 25350.51, the Notice of Intention to Amend Lease of Real Property (Attachment D) has been posted at the County Administration Center, 675 Texas Street, Fairfield, for the required five working days.
FINANCIAL IMPACT:
The monthly rent for the first month of the extended term is $2,040.67. The rent increases to $2,101.89 effective April 1, 2026 and will increase by 3% each April 1 thereafter.
The estimated rent by fiscal year is as follows:
$ 8,346 FY2025/26 (March - June 2026)
$25,412 FY2026/27
$26,174 FY2027/28
$17,839 FY2028/29 (July 2028 - February 2029)
$77,771 Total extended three-year term
In addition to base rent, the County will be responsible for utilities and janitorial costs, which will be budgeted within the Sheriff’s Office (BU 6585). All other property-related costs remain the responsibility of the landlord.
The costs associated with preparing the agenda item are nominal and absorbed by the department’s FY2025/26 Working Budget.
ALTERNATIVES:
The Board of Supervisors may:
1. Choose not to approve the proposed first amendment; or
2. Choose to propose other terms and conditions for the first amendment, which will require approval by the property owner.
These alternatives are not recommended. The proposed first amendment continues to provide appropriate and cost-effective warehouse space for the Sheriff’s Office Property/ID Bureau and supports operational needs without service disruption.
OTHER AGENCY INVOLVEMENT:
The Sheriff’s Office has reviewed and approved the first amendment and concurs with the recommendation. County Counsel has reviewed and approved the first amendment as to form.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION