Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  26-000101

 

MEETING DATE:

04/14/26

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

3, 5

SUBMITTING Agency/Department:

Sheriff-Coroner   (Approved)

Department contact person(s):

Brian Wayt (714) 647-1803 

 

 

Noma M. Crook (714) 834-6681

 

 

Subject:  Performance Audit Assembly Bill 900 & Senate Bill 1022 James A. Musick Project

 

     ceo CONCUR

County Counsel Review

Clerk of the Board

          Concur

No Legal Objection

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost:  N/A

Annual Cost: N/A

 

 

 

    Staffing Impact:

No

# of Positions:           

Sole Source:   N/A

    Current Fiscal Year Revenue: N/A

   Funding Source:    N/A

County Audit in last 3 years: No

   Levine Act Review Completed: N/A

 

    Prior Board Action:         N/A

 

RECOMMENDED ACTION(S):

 

 

1.

Receive and File Audit Report for Assembly Bill (AB) 900, Chapter 7, Statutes of 2007) and Senate Bill (SB) 1022, Chapter 42, Statutes of 2012 related to the James A. Musick Facility Project and direct the Sheriff-Coroner and designees to distribute the Audit Report to required state or local agencies and take all necessary actions to ensure compliance with the County’s AB 900 and SB 1022 agreements and financing programs.

 

2.

Authorize Sheriff-Coroner Department to submit Audit Report for Assembly Bill (AB) 900, Chapter 7, Statutes of 2007) and Senate Bill (SB) 1022, Chapter 42, Statutes of 2012 to the Board of State and Community Corrections.

 

 

 

 

 

 

SUMMARY:

 

Pursuant to the Board of State and Community Corrections Agreement, Section 4(C) and Titles 15, Section 1770, Audits (for local adult detention facilities) and 1870 Audits (for local juvenile facilities) within 90 days of completion of the construction project, the County must obtain and submit a final audit to the Board of State and Community Corrections.

 

BACKGROUND INFORMATION:

 

On May 3, 2007, the Public Safety and Offender Rehabilitation Services Act of 2007 became law (AB 900, Chapter 7, Statutes of 2007) and provided up to $1.2 billion total, in two phases, for financing the construction of local jail facilities. Although the County of Orange could not accept funding from the first phase of allocations due to certain project requirements, those requirements were changed for the second phase of funding, which permitted the County to participate in seeking funding for the expansion of the James A. Musick Facility (JAMF).

 

The Sheriff-Coroner submitted the Request for Application and received a conditional award in the amount of $100 million on March 8, 2012.  On March 8, 2013, the State Public Works Board (SPWB) approved the action to allocate funding to complete design and construction for this JAMF project. The establishment of the project by the SPWB allows the County to commit funding to design and construction that is reimbursable from the AB 900 Phase II $100 million award.

 

On July 23, 2013, the BSCC on behalf of the State of California issued a Request for Proposals (RFP) to establish conditional awardees and allocate financing as authorized by SB 1022 for the construction of program and treatment space for adult local criminal justice facilities.  For large counties such as Orange County, $80 million was established as the maximum amount of state financing available. On January 16, 2014, Orange County received a conditional award for $80 million for the construction of program, treatment, and housing space at the JAMF.

 

On January 20, 2016, the County Executive Officer (CEO) executed the BSCC Jail Construction Agreement for the Orange County AB 900 Jail Financing Program. Total eligible project costs were $235,636,814, including the State’s AB 900 share of $100 million. 

 

On November 1, 2019, the CEO executed the BSCC Jail Construction Agreement for the Orange County SB 1022 Adult Local Criminal Justice Facility Construction Financing Program. Total eligible project costs were $123,808,968, including the State’s SB 1022 share of $80 million.

 

The overall project budget was modified due to an expanded scope of the project and other reasons. The AB 900 budget was modified on December 16, 2020, to adjust the State’s share between budgeted categories. The State’s total AB 900 share was unchanged. Also, on December 16, 2020, the SB 1022 budget was modified to increase the total budget to $102,817,928. The State’s total SB 1022 share was unchanged.

 

The table below details pertinent dates related to the JAMF expansion:

 

Board Approved

Amendment Number or Contract

Contract Term

Contract Amount

Comments

3/12/2019

N/A

N/A

N/A

Approve plans specifications and bid document for the JAMF.

5/5/2020

Multiple Contracts

N/A

$288,017,460

Approve Construction contract with Bernards Bros., Inc.; Approve Project management contract with Vanir Construction Management, Inc.; Approve Service Agreement with Irvine Ranch Water District for sewer and water connections. 

6/2/2020

Resolution

N/A

N/A

Adopt Resolutions confirming funding sources for AB 900 and SB 1022.

1/10/2023

One

N/A

$13,055,900

Increased contract with Bernards Bros., Inc. for construction contingency; Adopt Resolutions for AB 900 and SB 1022 for JAMF Phase 2 for construction financing.

8/27/2024

Resolution

N/A

N/A

Board adopted resolution authorizing the execution and delivery of the Facility sublease for the Project and authorized other actions and the execution of other documents.

 

On June 22, 2023, County issued a service contract to Eide Bailly LLP for Independent Auditing and Related Services to perform the requirements specified in the BSCC Audit Guide of the construction financing program of AB 900 and SB 1022.

 

Pursuant to the BSCC Agreement, Section 4(C) and Titles 15, Section 1770, Audits (for local adult detention facilities) and 1870 Audits (for local juvenile facilities) within 90 days of completion of the construction project, the County must obtain and submit a final audit to the BSCC. The BSCC granted an extension to the County until May 20, 2026.

 

The performance audit covered the period starting with the execution of the agreement with the BSCC (AB 900 – January 20, 2016, and SB 1022 – November 1, 2019) through the project completion date of June 30, 2025. Attachment A.

 

The audit was finalized on February 24, 2026, and consisted of all state financing as well as all County contributions, and determined the following:

 

That the State financing and County’s contribution (cash/hard and/or in-kind/soft match funds) were expended in accordance with applicable laws, regulations, and BSCC Agreement and Project Delivery

and Construction Agreement Requirements:

 

A.

That the State financed projects are within approved scope and budgeted costs;

B.

That the State financed projects are in compliance with applicable laws, regulations, and

established criteria; and

C.

That the State financed projects achieved their intended outcome(s).

 

The audit report concluded the County expended grant proceeds only for eligible costs in accordance with applicable laws, regulations, BSCC Agreement and Project Delivery and Construction Agreement requirements, including the match requirements. Attachment A.

 

Sheriff now asks the Board to receive and file Audit Report for AB 900/SB 1022 and grant authority to send the final report to the BSCC.

 

 

 

FINANCIAL IMPACT:

 

N/A

 

STAFFING IMPACT:

 

N/A

 

ATTACHMENT(S):

 

Attachment A – Performance Audit Report for AB 900/SB 1022 James A. Musick Facility Project
Attachment B – AB 900 Board of State and Community Corrections Agreement
Attachment C – SB 1022 Board of State and Community Corrections Agreement