Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  16-001059

 

MEETING DATE:

09/13/16

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

3

SUBMITTING Agency/Department:

Probation   (Approved)

Department contact person(s):

Dana Schultz (714) 645-7005 

 

 

Sean Barry (714) 645-7004

 

 

Subject:  SB 81 Juvenile Hall Multipurpose Rehabilitation Center

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Resolution to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

 

 

 

    Staffing Impact:

See Staffing Impact Section

# of Positions:

Sole Source: N/A

    Current Fiscal Year Revenue: N/A

  Funding Source: N/A

County Audit in last 3 years: No

 

 

    Prior Board Action: 5/20/2014 #31, 12/09/2014 #37

 

RECOMMENDED ACTION(S):

 

 

1.

Find that the Mitigated Negative Declaration No. IP 16-036 reflects the independent judgment of the County of Orange as lead agency, and satisfies the requirements of CEQA for the Juvenile Hall Multipurpose Rehabilitation Center Project.  Its adoption is recommended for the proposed project based upon the following findings:

 

a.

The Mitigated Negative Declaration and comments on the Mitigated Negative Declaration received during the public review process were considered and the Mitigated Negative Declaration No. IP 16-036 was found adequate in addressing the impacts related to the project;

 

b.

On the basis of the whole administrative record, there is no substantial evidence that the project, with the implementation of the mitigation measures, if any that are included in the Mitigated Negative Declaration, will have a significant impact on the environment; and

 

c.

Pursuant to Public Resources Code Section 21081.6 and CEQA Guidelines Section 15074(d), the Mitigation Monitoring and Reporting Program is adopted.

 

d.

Mitigated Negative Declaration No. IP 16-036 is adequate to satisfy the requirements of CEQA for the Juvenile Hall Multipurpose Rehabilitation Center Project.

 

2.  Adopt Resolution to:

 

 

a.

Amend Resolution No. 14-105, replacing Paragraph 1 with the following: “Designates the Orange County staff members to act in specific capacities as follows, for purposes of participating in the SB 81 Local Youthful Offender Rehabilitative Facility Construction Funding Program administered by the Board of State and Community Corrections: County Construction Administrator – Scott Dessort; Project Financial Officer – Dana Schultz; Project Contact Person – Scott Chandler; and”

 

 

b.

Amend Resolution No. 14-105, replacing Paragraph 4 with the following: “Assures the County of Orange has appropriated Cash/In-Kind Match in an amount up to $5,834,000, for a total project cost not to exceed $23,334,000, with said Match located in Non-General Fund 104, the Capital Project Fund for Criminal Justice Facilities, for architectural, CEQA, construction management and State Agency fees, and assures that state and cash matching funds will not replace funds otherwise dedicated or appropriated for construction activities; and”

 

 

c.

 

Amend Resolution No. 14-105, replacing Paragraph 8 with the following: “Attests that $1,840,000 is the fair market land value of the Multipurpose Rehabilitation Center project site.”

 

 

d.

 

Approve the Staffing and Operating Cost Analysis for the Juvenile Hall Multipurpose Rehabilitation Center following the determination made by the Board of State and Community Corrections that the preliminary staffing plan complies with California Code of Regulations, Title 15, Section 1321 and the operational program statement contains the required elements outlined in Title 24, Part 1, Section 13-102(c)3.

 

 

e.

 

Approve the form Project Delivery and Construction Agreement, the Board of State and Community Corrections Facility Construction Agreement, the Ground Lease, the Right of Entry for Construction and Operation, the Easement Agreement for Grants of Access, Utilities and Repairs and the Facility Sublease (collectively, the "State Agreements") for the SB 81 Juvenile Hall Multipurpose Rehabilitation Center Project.

 

 

f.

 

Authorize the Chair of the Board of Supervisors, the County Executive Officer and the Chief Operating Officer of the County of Orange or their designees (collectively, the "Authorized Officers"), acting alone, for and in the name of the County to execute, and authorize the Clerk of the Board of Supervisors to attest, the Project Delivery and Construction Agreement, the Board of State and Community Corrections Construction Agreement, the Ground Lease, the Right of Entry for Construction and Operation, the Easement Agreement for Grant of Access, Utilities and Repairs and the Facility Sublease, in substantially the form hereby approved, with such additions thereto and changes therein as are required by the Board of State and Community Corrections or the State Public Works Board to effectuate the SB 81 Financing Program and as a condition to the issuance of bonds.  Approval of such changes shall be conclusively evidenced by the execution and delivery thereof by any one of the Authorized Officers, each of whom, acting alone, is authorized to approve such changes.

 

 

g.

 

Authorize each of the Authorized Officers to execute the State Agreements at such time and in such manner as is necessary within the SB 81 Financing Program, and to execute, acknowledge and deliver any and all documents required to consummate the transactions contemplated by the Project Delivery and Construction Agreement, the Board of State and Community Corrections Construction Agreement, the Ground Lease, the Right of Entry for Construction and Operation, the Easement Agreement for Grants of Access, Utilities and Repairs and the Facility Sublease.

 

 

h.

 

Affirm that all other provisions of Resolution No. 14-105 not expressly amended herein shall remain in full force and effect.

 

 

 

 

SUMMARY:

 

Adoption of Mitigated Negative Declaration No. IP 16-036 and the resolution containing Board of State and Community Corrections-required elements will allow the County to submit to the State Public Works Board the request for Preliminary Plan Approval for the Juvenile Hall Multipurpose Rehabilitation Center.

 

 

 

BACKGROUND INFORMATION:

 

On December 9, 2014, the Board authorized the submittal of a proposal by the Orange County Probation Department (Probation) to the Board of State and Community Corrections (BSCC) for SB 81 Round Two Construction Financing for the construction of a Multipurpose Rehabilitation Center (MRC) consisting of a visitation facility, program space and a gymnasium, and adopted Resolution No. 14-105, making certain assurances required by the BSCC.

 

The BSCC approved the recommendations of their Executive Steering Committee on April 9, 2015, conditionally awarding up to $17,500,000 to the County of Orange for construction of the MRC.  Project Establishment, previously to be authorized by the State Public Works Board (SPWB), has now been delegated to the California Department of Corrections and Rehabilitation (CDCR), whose staff has informed Probation that they anticipate Project Establishment in September 2016.  Once Orange County obtains Project Establishment from the CDCR, Probation is expected to enter into both a Project Delivery and Construction Agreement and the BSCC Construction Agreement.  Prior to Preliminary Plan approval by the SPWB, anticipated on October 14, 2016, the County is required to show evidence that it has completed the California Environmental Quality Act (CEQA) process for the project; Mitigated Negative Declaration No. IP 16-036 for the MRC Project is shown as Attachment B. 

 

A new resolution is now required by the BSCC to update the County's cash/in-kind match requirements based on the most recent cost estimates and identify the fund names or coding that will hold the funds appropriated for the project; the County is required to provide at least a 25% match for the project.  Board Resolution No. 14-105 included an attestation that $863,000 was the current fair market land value for the project site, based upon a proration of the land value for the larger Juvenile Hall parcel.  Since this time, with the project site better defined, the revised fair market value for the project site has been appraised at $1,840,000, a valuation which has been reviewed and accepted by the California Department of General Services. The County's appraisal specialist has determined that the appraisal performed by CBRE is adequate and relevant for valuing the project site, corroborating the State’s finding that the appraisal is supported and acceptable for its intended use.

 

California Code of Regulations (CCR), Title 15, Section 1850, requires the County to submit a preliminary staffing plan and operational program statement to the BSCC for review.  On March 11, 2016, the BSCC notified Probation that the operational program statement was found to contain all of the required elements outlined in Title 24, Part 1, Section 13-102(c)3, and that the staffing plan was determined to have no compliance issues with respect to CCR, Title 15, Section 1321, Number of Personnel; no new personnel will be hired to operate the MRC.  Following the determination by the BSCC that the preliminary staffing plan complies with regulations, the plan is required to be submitted to the Board for review and approval along with an operating cost analysis which is to include the following: (1) staffing requirements under the proposed design capacity; (2) shift and post identification of staff for the proposed facility, delineated by custody and support staff; (3) transition team costs; (4) analysis of thirty-year lifecycle operating costs and maintenance and energy costs for the proposed facility; and (5) identification of, and revenue sources for, sufficient County funds needed to support the staffing levels and operating costs for the proposed facility.  The proposed Staffing and Operating Cost Analysis is included as Attachment D for the Board’s review and approval.

 

Orange County Public Works anticipates returning to the Board in April 2017 with a recommendation for award of the MRC construction contract.  Prior to the start of construction, the BSCC and County will execute a Ground Lease, a Right of Entry for Construction and Operation and an Easement Agreement for Grants of Access, Utilities and Repairs. The standard form Ground Lease provides in Section 10 (Term and Extension) that it will co-terminate on the same date as the Facility Lease (between the BSCC and the bond-issuing State Public Works Board), unless the Ground Lease is extended by the parties or is terminated sooner as provided therein; however, no termination shall occur until all bonds and other indebtedness incurred by the State Public Works Board for the project have been fully repaid.  After the completion of construction, the BSCC and County will execute a Facility Sublease which will allow the County to occupy and operate the MRC; the Facility Sublease will also terminate on the same date as the Facility Lease and Ground Lease, at which time the County will own the MRC.

 

Except for references to different authorizing legislation, all state agreement documents for the project are the same as those approved by the Board on May 20, 2014 for the Sheriff-Coroner's Phase II 512-bed expansion at the James A. Musick Facility funded by AB 900.  The state agreements are non-negotiable and are in the same form as those previously approved by the Board.     

 

The form BSCC Construction Agreement provides that in the event of the County's breach of a material term of the Construction Agreement or other State Agreements and the County's failure to cure the breach, or the County's refusal or inability to complete the project in a manner consistent with the State Agreements, including all timelines, plans and specifications approved by the BSCC, the BSCC may terminate the Construction Agreement.  In the event the BSCC terminates the Construction Agreement, and unless the parties agree in writing otherwise, upon notification by the BSCC, the County must refund the BSCC an amount equal to all the state financing previously disbursed to the County for the project. 

 

The form Project Delivery and Construction Agreement, BSCC Construction Agreement, Ground Lease, Right of Entry and Facility Sublease all require the County to indemnify, defend and save harmless the State for any and all claims and losses arising at any time out of the acquisition, design, construction, operation, maintenance, use and occupancy of the project, except where claims arise out of the gross negligence or willful misconduct of the State.  These non-standard, unilateral indemnification provisions have been reviewed and approved by CEO Risk Management as shown on Attachment L.

 

Pursuant to the terms of the form Project Delivery and Construction Agreement, the County is also required to agree that if the project is damaged or destroyed due to a peril covered by insurance, that the State Public Works Board has the discretion to use the insurance proceeds from the insurance procured by the County to repay the financing and related costs first, with any remaining insurance proceeds distributed to the County. 

 

Compliance with CEQA:  Mitigated Negative Declaration (MND) IP 16-036 (Attachment B) has been prepared to address the environmental impacts of the Project.  It was posted for a 20-day public review period from July 15, 2016 to August 4, 2016, and no comments were received from the public on its appropriateness or adequacy.  Based on the MND, and the administrative record as a whole, the County finds that the project will not have a significant unavoidable impact on the environment.  The project incorporates all appropriate mitigation measures to reduce impacts to a level of insignificance.

 

Therefore, the adoption of Mitigated Negative Declaration No. IP 16-036 will satisfy the requirements of CEQA for the Juvenile Hall Multipurpose Rehabilitation Center Project.

 

 

 

FINANCIAL IMPACT:

 

The Recommended Actions have no immediate financial impact on the County.  Appropriations and revenue for the cash and in-kind match identified in the resolution as well as the anticipated project costs have been included in Fund 104, Criminal Justice Facility - ACO's, FY 2016-17 Adopted Budget and will be included in the budgeting process for future fiscal years.  Approval of the resolution is an overall decrease in anticipated match submitted with the proposal approved by the Board on December 9, 2014, increases the in-kind match and reduces the anticipated cash match.

 

 

 

STAFFING IMPACT:

 

Staffing identified in the Staffing and Operating Cost Analysis are not new positions for the County.  Once the project is completed, programming and events currently conducted at other Probation facilities will be relocated to the Multipurpose Rehabilitation Center.

 

 

 

REVIEWING AGENCIES:

 

OC Public Works

 

ATTACHMENT(S):

 

Attachment A - Project Vicinity Map and Site Plan
Attachment B - Mitigated Negative Declaration No. IP 16-036
Attachment C - Draft Resolution
Attachment D - Staffing and Operating Cost Analysis
Attachment E - Form Project Delivery and Construction Agreement
Attachment F - Form BSCC Construction Agreement
Attachment G - Form Ground Lease
Attachment H - Form Right of Entry for Construction and Operation
Attachment I - Form Easement Agreement for Grants of Access, Utilities and Repairs
Attachment J - Form Facility Sublease
Attachment K - Real Property Conveyance Questionnaire
Attachment L - Risk Assessment or Modification of Insurance Terms
Attachment M - Resolution No. 14-105
Attachment N - BSCC Letter of Compliance dated March 11, 2016
Attachment O - California Code of Regulations, Title 15, Section 1321
Attachment P - California Code of Regulations, Title 15, Section 1850
Attachment Q - California Code of Regulations, Title 24, Part 1
Attachment R - Public Resource Code Section 21081.6