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Approve a Full-Service Lease Office Lease Agreement for the Solano Innovation Center at 220 Campus Lane, Fairfield, with 220 Campus Lane, L.L.C. for a 10-year term, approximately 44,472 square feet, and an initial monthly rent of $116,517 with 3% annual increases; and Authorize the County Administrator, or designee, to execute the Lease Agreement once the 60-day notice requirement has been satisfied or waived by City of Fairfield City Council resolution, and to execute any necessary amendments or related documents, within approved budgeted appropriations, with County Counsel concurrence
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Published Notice Required? Yes _X_ No ____
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board of Supervisors:
1. Approve a Full-Service Lease Office Lease Agreement for the Solano Innovation Center at 220 Campus Lane, Fairfield, with 220 Campus Lane, L.L.C. for a 10-year term, approximately 44,472 square feet, and an initial monthly rent of $116,517 with 3% annual increases (Attachment A);
2. Authorize the County Administrator, or designee, to execute the Lease Agreement once the 60-day notice requirement has been satisfied or waived by City of Fairfield City Council resolution, and to execute any necessary amendments or related documents, within approved budgeted appropriations, with County Counsel concurrence
SUMMARY/DISCUSSION:
The proposed Full-Service Lease Office Lease Agreement for the Solano Innovation Center at 220 Campus Lane in Fairfield will provide approximately 44,472 square feet of office and program space within a two-story building to be occupied entirely by the County for Department of Health and Social Services (H&SS) operations. The lease will support the planned relocation and consolidation of the Employment and Eligibility Services’ Training Center, Benefits Action Center, and Special Investigations Bureau, currently operating from leased space at 425, 427 and 431 Executive Court in Fairfield. The Training Center houses computer training rooms and meeting spaces, along with the staff development, program policy, systems and data support, and hiring teams that support the division. The Benefit Action Center is the centralized public call center that supports eligibility operations, where staff conduct phone interviews, answer recipient inquiries, and process eligibility documentation. The Special Investigations Bureau includes the welfare fraud investigators, overpayment collections, and fair hearings teams. The new space will also support a centralized hearings space where the public can request a formal review of eligibility actions with an administrative law judge.
General Services and H&SS evaluated replacement space as the existing Executive Court leases transition to month-to-month terms and to address current and future operational needs. The County does not currently have sufficient vacant County-owned office space available to accommodate the affected programs. After evaluating available options, 220 Campus Lane was identified as the only currently available location capable of accommodating all three programs in one facility. The relocation will consolidate operations, improve staff coordination and service delivery, and provide flexibility for future program growth.
The proposed lease provides for a 10-year term commencing upon substantial completion and delivery of the Premises. The 10-year term provides long-term space stability and supports the significant tenant improvement investment associated with the relocation. Initial monthly rent is $116,517, or approximately $1.398 million annually, with 3% annual adjustments. H&SS currently occupies approximately 40,644 square feet at Executive Court at an estimated combined annual cost of approximately $1.34 million, including rent, common area maintenance, and utilities. Although the Campus Lane location is approximately 3,828 square feet larger overall, consolidating the programs into one building reduces duplicated common areas and building support spaces and allows more of the leased area to support program and operational needs, including future expansion.
The proposed lease is subject to a required 60-day notice period under Government Code section 25351. The requested authorization will allow the County Administrator, or designee, to execute the Lease Agreement once the notice requirement has been satisfied or, if applicable, waived by City of Fairfield City Council resolution.
Prior to occupancy, tenant improvements will be required to configure the building for H&SS operations. The Landlord will contribute $900,000 toward the tenant improvements, with the County responsible for approved costs above that amount. Additional County work is anticipated for information technology, security, furniture relocation and reinstallation, moving, electrical/low-voltage work, wayfinding, and closeout of the existing Executive Court locations.
The current schedule anticipates completion of tenant improvements and H&SS occupancy in winter 2027, with lease costs anticipated to begin around October 2027. General Services will coordinate tenant improvements and relocation activities with H&SS and the Landlord to minimize operational impacts and overlapping lease costs to the extent possible.
FINANCIAL IMPACT:
The initial monthly rent is $116,517, or $1,398,204 annually, with 3% annual increases. Direct expenses, including utilities and janitorial services, will be adjusted annually in accordance with the Lease. H&SS currently leases approximately 40,644 square feet at 425, 427, and 431 Executive Court at an estimated combined annual cost of approximately $1.34 million, including rent, common area maintenance, and utilities. Funding for ongoing lease costs will be included in H&SS’ operating budget, anticipated to begin in October 2027.
One-time tenant improvement and relocation costs are funded through Budget Unit 1667 - H&SS Relocation Project. In June 2026, the Board approved $1,354,939 from H&SS’ FY2023/24 final Medi-Cal administrative settlement for these one-time capital improvement costs associated with relocating staff from the Executive Court campus.
Tenant improvements are currently estimated at $1,268,352. The Landlord will contribute $900,000, resulting in an estimated County contribution of $368,352. Additional one-time County costs for information technology, security, furniture relocation and reinstallation, moving, electrical/low-voltage work, wayfinding, and other relocation activities are currently estimated at approximately $731,500, plus contingency. The estimated County tenant improvement and relocation costs are within $1,354,939 previously approved for Budget Unit 1667.
The timing of the relocation will be coordinated to minimize overlapping lease costs to the extent possible.
The costs associated with preparing this agenda item are nominal and absorbed by the Department’s FY2026/27 Working Budget.
ALTERNATIVES:
The Board could choose not to approve the Lease Agreement or could direct staff to pursue other space alternatives. This is not recommended because the proposed location addresses H&SS operational and program needs and provides an opportunity to consolidate programs currently operating from multiple leased locations into a single facility.
OTHER AGENCY INVOLVEMENT:
General Services coordinated with the Department of Health and Social Services, the County Administrator's Office, County Counsel, Risk Management, and the Department of Information Technology regarding the proposed lease, tenant improvements, relocation requirements, and associated costs. County Counsel has reviewed the Lease Agreement as to form.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION