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JAIL RE-ENTRY FACILITY / ADMINISTRATION - Administrative Services Director Tom Provine
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Requested Action(s)
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a) RESOLUTION/AGREEMENT - Request approval and authorization for the Chairman to sign the Resolution authorizing the Chief Administrator or Designee to execute documents, including the facility sublease, required for the State’s Financing of the Tehama County Jail Project
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Financial Impact:
There is no additional financial impact resulting from this Resolution, as the Board has already made the necessary bond commitments.
Background Information:
This Resolution represents a necessary step in the process to enable the County to receive funding for the Jail Re-Entry Facility Project.
On June 27, 2012, the Adult Local Criminal Justice Facilities Construction Program (SB 1022) became law, authorizing up to $500 million in lease revenue bond financing for the acquisition, design, and construction of adult criminal justice facilities. The County’s participation in the program has resulted in $20 million in State funding for the Tehama County Jail Re-Entry Facility Project. Funding for SB 1022 is provided by lease revenue bonds issued by the State Public Works Board (SPWB). Payment of the principal and interest on the bonds will be made through rental payments from the Board of State and Community Corrections (BSCC). Upon the issuance of the bonds, the County and BSCC must execute a Facility Sublease, the form of which is substantially complete and before the Board for approval at this meeting. The County will be required to operate the Facility in accordance with the terms of the Facility Sublease until the bonds are repaid. The Facility Sublease is a key component of the overall financing and lease arrangement established under State law and is necessary to maintain eligibility for reimbursement and participation in the SB 1022 Financing Program.
The Facility Sublease will not alter the County’s ownership interest in the property or the Facility but will provide the necessary legal and financial framework for the State to issue bonds, secure financing, and ensure compliance with tax and financing covenants. Execution of the Facility Sublease is in the public interest, does not substantially interfere with the County’s use of the property, and is required to complete the State’s financing process.