Item Number: 37.
MEETING DATE: 2/5/2019
DEPARTMENT: COUNTY ADMINISTRATION OFFICE
DEPT HEAD/DIRECTOR: Ray Espinosa
AGENDA ITEM PREPARER: Stewart Patri
SBC DEPT FILE NUMBER: 120.5
SUBJECT:
COUNTY ADMINISTRATION OFFICE - R. ESPINOSA
Receive update on jail financing sources and approve Budget Adjustment recommendation in the amount of $1,445,394.00. (4/5 vote)
SBC FILE NUMBER: 120.5
AGENDA SECTION:
REGULAR AGENDA
BACKGROUND/SUMMARY:
The County began construction on a jail expansion project in September of 2017. Housing for 72 beds, program space, medical area, intake/release functions, and administrative offices are included in the expansion project. Total cost of the project was estimated at $25,016,394. The outline of the Budget Summary is as follows:
| Line Item |
State AB900 |
Cash Match |
In-Kind Match |
Total |
| Construction |
13,000,000 |
8,146,844 |
|
21,146,844 |
| Misc. Costs |
625,000 |
90,000 |
|
715,000 |
| Architect |
1,428,000 |
136,510 |
|
1,564,510 |
| Const. Manage. |
|
954,040 |
|
954,040 |
| CEQA |
|
18,000 |
|
18,000 |
| Audit |
|
|
2,000 |
2,000 |
| Site Acquisition |
|
|
280,000 |
280,000 |
| Needs Assessment |
|
|
67,000 |
67,000 |
| County Admin. |
|
|
240,000 |
240,000 |
| Transition Plan |
|
|
19,000 |
19,000 |
| Real Estate Due Dil. |
|
|
10,000 |
10,000 |
| Total Cost |
$15,053,000 |
$9,345,394 |
$618,000 |
$25,016,394 |
Financing Sources:
Multiple sources will be used for the funding of this project including state AB900/AB109 funding and financing. The following information outlines the adopted FY18/19 budgeted funding sources for the project:
- AB900 (State aid): $13,000,000
- Financing: $9,516,394
- AB109: $2,500,000
Staff recommends a budget amendment to recognize the actual funding amount from AB900 as well as a decrease to the financing amount and an increase in General Fund Contribution to complete the project in FY18/19. The following table outlines the amendment:
| Funding Source |
Subtotal |
Total Amount |
| AB900 - State Funding |
|
$15,053,000 |
| Financing (COPs) |
|
$7,500,000 |
| General Fund 17/18 |
$400,000 |
|
| General Fund 18/19 |
$1,445,394 |
|
| Total General Fund |
|
$1,845,394 |
| In-Kind Match |
|
$618,000 |
| Total |
|
$25,016,394 |
The County was approved for AB900 funding in the total amount of $15,053,000 for the project. In FY17/18 $400,000 was contributed from the General Fund to help cover the cost of construction management. In-kind match was also required for the project in the total amount of $618,000. An additional $9,000,000 in funding is required to complete the project.
Staff has prepared a financing structure for board approval of $7,500,000 of Certificates of Participation (COPs) and is recommending the use of general fund balance for the additional $1,445,394. Total general fund contribution by the end of the project will be approximately $1,900,000.
The additional general fund contribution is recommended for the following reasons:
- Interest Savings over the life of the loan.
- Encumbrance of only one leased asset, Sheriff/RMA building. The building is worth approximately $7.5 million. This will leave additional County assets available for the bonding of potential future projects.
- Annual payments under $500,000.
- General fund will be reimbursed through Detention Facilities Impact Fees as they become available.
COP's Repayment Structure:
The annual financing payment is estimated to be $482,564 over 30 years. Staff has recognized two funding sources that will cover this ongoing cost: Detention Facilities impact fees and an agreement between the County and Community Corrections Partnership Committee to provide $250,000 for 20 years. Detention facilities impact fees are estimated to generate $21,403,600 by 2035 for Jail and Juvenile Hall Expansion projects.
Funding from the two sources will cover the annual financing payment as well as reimburse the general fund contribution of $1,900,000.
BUDGETED:
No
SBC BUDGET LINE ITEM NUMBER:
CURRENT FY COST:
STAFF RECOMMENDATION:
1. Accept presentation from staff; and
2. Approve budget amendment for general fund transfer to the CIP Fund in the amount of $1,445,394 for the construction of the County Jail expansion project. (4/5 vote)
ADDITIONAL PERSONNEL: No
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