TO: Board of Supervisors
FROM: Alexander Alarcon, Interim Director of Corrections
REPORT BY: Sue Kuss, Staff Services Manager
SUBJECT: Amendment No. 2 to Professional Services Agreement No. 250334B
RECOMMENDATION
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Approve and authorize Amendment No. 2 to Agreement No. 250334B with Smart Communications Holding, LLC, to add contract language to conform to State of California leased revenue bond requirements. (No Fiscal Impact)
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BACKGROUND
The State of California pledged $22.8 million in funding for the construction of the replacement jail through SB 844 ($20 million) and SB 863 (2.8 million) legislation. On November 5, 2025, the State of California closed on its 2025 Series C tax-exempt Leased Revenue Bond sale to support these two legislative commitments for Napa County and other projects throughout the state. The Series C issuance partially funded the construction of the new $133 million Napa County detention facility.
As part of the Due Diligence process preceding the sale of the bonds, the State's bond counsel reviewed contracts that the Corrections Department currently had in effect and reviewed services the department intended to contract for in the future. Some vendors were deemed to have a third-party interest in the facility. In instances when a third-party interest may exist, the State provided staff with boilerplate language to incorporate in its contracts. The purpose of the new clauses is to allow the State Public Works Board, Board of State and Community Corrections (BSCC), or the County of Napa to cancel the contract, without cause or penalty, with 50 days' notice. In addition to the vendor and County signing the contract, a representative of the State Public Works Board and BSCC must also sign the agreement. Per the direction from the State Department of Finance, the State signatories must be last to sign.
State Bond Counsel determined that the new clauses ought to be included in the contract with Smart Communications Holdin...
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