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Adopt a resolution authorizing the execution and delivery of a facility sublease for, and ratifying all previous actions with respect to, the Solano Jail Project, known as the Rourk Vocational Training Center at 2456 and 2458 Claybank Road in Fairfield; and Authorize the County Sheriff to execute the sublease and any other documents necessary to effectuate this intent
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board of Supervisors:
1. Adopt a resolution authorizing the execution and delivery of a facility sublease for, and ratifying all previous actions with respect to, the Solano Jail Project, known as the Rourk Vocational Training Center at 2456 and 2458 Claybank Road in Fairfield; and
2. Authorize the County Sheriff to execute the sublease and any other documents necessary to effectuate this intent.
SUMMARY/ DISCUSSION:
On May 13, 2014, the Board approved the acceptance of a conditional award in an amount up to $23,037,000 from the State of California Board of State and Community Corrections (BSCC) to construct a 46,000 sq. ft. vocational training facility (Facility) at 2456 and 2458 Claybank Road in Fairfield, known as the Rourk Vocational Training Center. Under this funding program (SB1022 Adult Local Criminal Justice Facilities Construction Financing Program), the County-owned land was ground leased to BSCC for the construction of the Facility with the intention that BSCC would sublease the land and Facility back to the County upon the completion of construction, so the County can operate the Facility.
BSCC, in conjunction with the State of California Public Works Board (SPWB), intends to provide long-term financing for the Facility through the issuance and sale of SPWB’s 2019 Lease Revenue Bonds. The ground lease and sublease terms run as long as the lease revenue bonds are outstanding, but not to exceed 35 years. After all lease revenue bonds are paid, the leases will terminate, and the County will assume ownership of the Facility.
The Office of the State Marshall issued the Certificate of Occupancy on December 20, 2018. Notice of Completion for the construction of the Facility is anticipated to be issued in March 2019. As such, SPWB intends to issue its bonds in early April. Prior to the issuance of the bonds, SPWB and BSCC require the Board to adopt a Resolution (Attachment A) authorizing the execution of the Facility Sublease from BSCC to the County (Attachment B) and all previous actions associated with the SB 1022 financing and construction of the Facility.
FINANCIAL IMPACT:
There is no cost to the County other than staff time incurred with the preparation of the resolution and sublease. Information pertaining to the financing of the Facility will be presented to the Board with the Notice of Completion for the construction of the Facility. There is no General Fund Impact. The costs associated with preparing the agenda item are nominal and absorbed by the department’s FY2018/19 Adopted Budget.
ALTERNATIVES:
1. The Board could elect to not adopt the Resolution authorizing the execution of the Facility Sublease from BSCC to the County.
2. The Board could elect to modify terms and conditions of the Resolution and/or Facility Sublease, which would require acceptance and approval by BSCC and SPWB.
3. The Board could elect to not delegate contractual signing authority to the County Sheriff-Coroner. This action is not recommended because it would increase complexity of contract administration.
OTHER AGENCY INVOLVEMENT:
Representatives of BSCC, SPWB, State Board Counsel, Sheriff-Coroner, and County Counsel have reviewed and approved the resolution and sublease as to form.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION