To: Board of Supervisors
From: Monica Nino, County Administrator
Report Title: Resolution Authorizing the Execution and Delivery of a Facility Sublease for the West County Reentry, Treatment and Housing Project, commonly known as the Contra Costa Jail Project.
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
1. APPROVE the Facility Sublease between Contra Costa County and the California Board of State and Community Corrections for the West County Reentry, Treatment and Housing Project, commonly known in the State financing documents as the Contra Costa Jail Project, substantially in the form presented to the Board.
2. ADOPT resolution approving and authorizing the execution and delivery of a Facility Sublease with the California Board of State and Community Corrections for the West County Reentry, Treatment and Housing Project, commonly known as the Contra Costa Jail Project (Project), consenting to the related Site Lease and Facility Lease, and authorizing County officers to execute related documents and take actions necessary to facilitate the issuance of State Public Works Board lease revenue bonds to finance the Project.
FISCAL IMPACT:
The project was constructed utilizing $70 million awarded to the County from the State of California through SB 844 and is predicated on the State’s ability to issue lease-revenue bonds. This action is required as part of the funding award. 100% State funds.
BACKGROUND:
On February 7, 2017 the Board approved Resolution 2017/44 authorizing the submission of a grant application for Senate Bill (SB) 844 funding and agreed to execute project documents deemed necessary for the state to effectuate the financing, to support the construction of the West County Reentry, Treatment and Housing (WRTH) project, commonly known as the Contra Costa Jail Project (Project). SB 844 authorized the Board of State Community Corrections (BSCC), on behalf of the State of California, to provide state lease-revenue bond financing for the acquisition, design, and construction of adult local criminal justice facilities. The County was ultimately awarded $70 million under SB 844 to support the construction of the project.
The project includes the construction of a stand-alone, one story facility on county-owned land and provides space for housing, mental health, medical and dental health services, programs/programming, and administrative and building support. The facility consists of both standard housing and mental health housing with approximately 275 high-security beds in five housing units. The facility achieved a LEED Gold certification. In December 2021, the Board awarded the design-build contract to Sletten Construction, Inc. The project was substantially completed on March 26, 2026 and on April 28, 2026, the Board adopted Resolution 2026-159 accepting as complete the contracted work performed by Sletten Construction, Inc.
The State is now completing the long-term financing of its contribution to the Project through the issuance of lease-revenue bonds by the State Public Works Board. The bonds will be repaid through lease payments made by BSCC from funds appropriated by the State. As part of the financing structure, the County previously leased the Project site to BSCC. In connection with the bond issuance, BSCC will lease the site to the State Public Works Board, which will lease the site and completed facility back to BSCC. BSCC will then sublease the facility to the County so that the County may continue to occupy, operate, and maintain it. Upon repayment of the bonds and other Project indebtedness, the financing leases are intended to terminate and the Project will remain with the County.
The Facility Sublease presented for approval is therefore a required component of the State’s lease-revenue bond financing structure. Under the Facility Sublease, the County will operate and maintain the facility and comply with requirements associated with the State financing, including restrictions intended to preserve the tax-exempt status of the bonds. The proposed resolution approves the Facility Sublease substantially in the form presented to the Board, consents to the related Site Lease and Facility Lease, and authorizes designated County officers to execute the Facility Sublease and other documents and take actions necessary to complete the State’s bond financing.
CONSEQUENCE OF NEGATIVE ACTION:
The County would be unable to execute the Facility Sublease required to complete the State's lease-revenue bond financing for the Project, which could jeopardize the County's $70 million State financing award.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
IN THE MATTER OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA AUTHORIZING THE EXECUTION AND DELIVERY OF A FACILITY SUBLEASE FOR THE CONTRA COSTA JAIL PROJECT AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION THEREWITH
WHEREAS, the County of Contra Costa (the “County”), the State Public Works Board of the State of California (the “Board”), and the Board of State and Community Corrections of the State of California (the “Department”) have previously entered into that certain Second Amended and Restated Project Delivery and Construction Agreement dated as of January 26, 2026, with respect to the construction of an adult local criminal justice facility, commonly known as the Contra Costa Jail Project described in Exhibit A hereto (the “Project”); and
WHEREAS, the County has leased to the Department certain real property (the “Site”) described in Exhibit B to that certain Amended and Restated Ground Lease dated as of May 23, 2022 by and between the County, as landlord, and the Department, as tenant, and consented to by the Board, and recorded on May 31, 2022 in the Official Records of the County as Document No. 2022-0091271 (the “Ground Lease”) on which the Project has been constructed; and
WHEREAS, the Department and the County also entered into that certain Easement Agreement for Grants of Access, Utilities and Repairs dated as of February 22, 2021 and recorded on March 12, 2021 in the Official Records of the County as Document No. 2021-0076251 (the “Easement Agreement”) pursuant to which the County granted to the Department and the Board certain appurtenant easements in certain property adjacent to the Site; and
WHEREAS, the Board intends to provide long-term financing for the Project through the issuance and sale of lease revenue bonds of the Board (the “Bonds”) as authorized by the State Building Construction Act of 1955 (being Part 10b of Division 3 of Title 2 of the California Government Code commencing at Section 15800) (the “Act”), which Bonds will be secured, in part, by the Base Rental payments to be made under a Facility Lease to be entered into by and between the Department and the Board (the “Facility Lease”); and
WHEREAS, in connection with the issuance of the Bonds, the Department intends to lease the Site to the Board pursuant to the terms of a Site Lease between the Board and the Department (the “Site Lease”) and the Board intends to lease the Site and the Project (together, the “Facility”) to the Department pursuant to the terms of the Facility Lease; and
WHEREAS, upon the issuance of the Bonds, the County and the Department intend to enter into a Facility Sublease (the “Facility Sublease”), in substantially the form presented to the Board of Supervisors for approval at the meeting at which this resolution is being adopted;
NOW, THEREFORE, the Board of Supervisors of the County of Contra Costa DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:
SECTION 1. Each of the foregoing recitals is true and correct.
SECTION 2. The form of the Facility Sublease presented at this meeting is hereby approved. Each of the Chair of the Board of Supervisors, the Vice Chair of the Board of Supervisors and the County Administrator (or any acting or interim of such positions or their designees) (collectively, the “Authorized Officers”), acting alone, is hereby authorized for and in the name of the County to execute, and the Clerk of the Board of Supervisors is authorized to attest, the Facility Sublease, in substantially the form hereby approved, with such additions thereto and changes therein as are required by the Department or the Board as conditions to the issuance of the Bonds. Approval of such changes shall be conclusively evidenced by the execution and delivery thereof by any one of the Authorized Officers each of whom, acting alone, is authorized to approve such changes. Each of the Authorized Officers is further authorized to execute, acknowledge and deliver any and all documents required to consummate the transactions contemplated by the Facility Sublease. The County hereby consents to the terms of the Site Lease and the Facility Lease and acknowledges that the County’s right to occupy the Facility pursuant to the Facility Sublease may be terminated in accordance with Section 10 of the Facility Sublease, including (i) in the event of a default under the Facility Lease, as a result of the Board exercising its rights to re-enter and re-let the Facility in accordance with the Facility Lease, and (ii) in the event of a default under the Facility Sublease as a result of the Department exercising its rights to re-enter and re-let the Facility in accordance with the Facility Sublease.
SECTION 3. The County affirms that the Ground Lease and the Easement Agreement remain in full force and effect and enforceable against the County in accordance with their terms.
SECTION 4. Each of the Authorized Officers and the other officers of the County, acting alone, is hereby authorized to do any and all things and to execute and deliver any and all documents, certificates (including tax certificates) and agreements (including any amendments to the Ground Lease and Easement Agreement) which they may deem necessary and advisable in order to consummate the execution and delivery of the Facility Sublease and the issuance of the Bonds and otherwise effectuate the purposes of this Resolution. In the event that the Clerk of the Board of Supervisors is unavailable or unable to execute and deliver any of the above-referenced documents, any deputy clerk may validly execute and deliver such document.
SECTION 5. This Resolution shall take effect from and after its date of adoption.
end
ADOPTED, SIGNED AND APPROVED this 25th day of August, 2026.
Diane Burgis
Chair of the Board of Supervisors
Contra Costa County, California
ATTEST:
Monica Nino
County Administrator and Clerk of the Board of Supervisors
Contra Costa County, California
EXHIBIT A
DESCRIPTION OF PROJECT
Contra Costa Jail Project: The Contra Costa Jail Project (SB 844) is located at 5555 Giant Highway, Richmond, CA 94806. The project includes the construction of a stand-alone, one-story jail facility, on county-owned land in the city of Richmond. The facility provides space for housing; mental health; medical and dental health services; programs/programming; and administrative and building support. The facility consists of both standard housing and mental health housing with approximately 275 high-security beds in five housing units, four of which contain a mezzanine level. Each housing unit within the facility includes a dayroom, recreation space, classrooms, interview rooms, and a satellite meal reheating station. Programming and treatment space for medical, mental health, and dental services are provided, as well as space for vocational and reentry training, central control, holding cells, interview rooms, and both in-person and video visitation. This facility includes, but is not limited to, utilities; electrical; plumbing; mechanical; heating, ventilation, and air conditioning; communications; security systems; site improvements and landscaping; fire protection systems; security fencing; an emergency generator; and all necessary appurtenances. The housing unit portion of the building is constructed of structural precast concrete wall panels and double-tee roof members with interior reinforced block walls and poured-in-place concrete floors. The support portion of the building is built of insulated reinforced concrete masonry units and steel structural elements. The exterior walls at the main entry area are clad with attractive metal panels while small portions of the housing unit walls utilize an exterior insulation finish system. The entire facility is topped with a thermoplastic polyolefin roofing system designed for weather resistance and durability. High security doors, hardware, and controls are utilized throughout the building. The facility achieved a LEED Gold certification.