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Agenda Item
ASR
Control 10-000491 |
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MEETING DATE: |
04/20/10 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
All Districts |
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SUBMITTING
Agency/Department: |
County Executive Office (Approved) |
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Department contact
person(s): |
Bob Franz (714) 834-4304 |
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Frank Kim (714) 834-3530 |
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Subject:
Capital Project Financing
Reimbursement Resolution
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ceo Concur |
County
Counsel Review |
Clerk of the Board |
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Concur |
Approved Resolution to Form |
Discussion |
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3 Votes Board Majority |
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Budgeted: N/A |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A |
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Funding Source: N/A |
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Prior Board Action: Board
Resolution No. 10-003, 1/12/10. |
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RECOMMENDED ACTION(S):
Adopt Resolution authorizing reimbursement of expenditures from proceeds of potential financing for Sheriff-Coroner capital improvement projects including: the Sheriff-Coroner’s Maintenance and Repair Plan (MRP), Electric Sliding Door Operators Replacement, and Digital Closed Circuit Television (CCTV) Upgrades at various Sheriff-Coroner Criminal Justice Facilities.
SUMMARY:
The County Executive Office (CEO) requests that the Board of Supervisors ("Board") adopt a resolution authorizing reimbursement of expenditures from proceeds of potential financing for the following Sheriff-Coroner capital improvement projects: the Sheriff-Coroner’s Maintenance and Repair Plan (MRP), Electric Sliding Door Operators Replacement, and Digital Closed Circuit Television (CCTV) Upgrades at various Sheriff-Coroner Criminal Justice Facilities.
BACKGROUND INFORMATION:
The Sheriff-Coroner Department is facing significant challenges due to the decline in Prop 172 Revenues, including a funding gap for critical capital projects. In order to glide down to a lower level operating budget without abruptly impacting front-line public safety services, the Department diverted funds previously dedicated to capital projects to maintain core public safety services, resulting in insufficient funding for capital projects. While it was necessary to divert those funds, some of the deferred capital projects are critical to the Department’s core operations. The information below provides additional information and justification for these projects:
A.
Sheriff-Coroner 2010 Maintenance and Repair Plan (MRP)
The projects identified in this plan are for sustaining facilities that are critical to the Sheriff’s operations. Health and safety mandates pertaining to the jails and other public safety facilities, require action on the work identified to avoid unplanned shutdown of facility functions, punitive actions by regulatory agencies and to minimize health and safety risks to staff, inmates and the public. The work has been identified by Sheriff/R&D/Facilities Operations and reflects observations of deteriorated conditions discovered during regular maintenance inspections, or “end of lifecycle” equipment that must be replaced. This plan is made up of 10 different maintenance projects at five different Sheriff-Coroner facilities. Life cycles for these various projects vary and are subject to conditions that are not always predictable. Several of the projects listed in this plan address original equipment/installations to their respective facilities and have been in service from 15 to 40 years. The Department expects to proceed with these projects in priority order, with projects running in parallel based on project manager scheduling. The estimated cost of these projects is $3 million. The project descriptions are as follows:
· Refurbish shower stalls in Central Men’s jail. (variable life cycle)
· Replace in-ground basement sewage holding tank at Headquarters. (15 year minimum life cycle)
· Replace penal lavatory valves, waste piping, and supply piping at Central Men’s and Women’s jails. (variable life cycle)
· Waterproof and seal pipe chases in the Central Men’s and Women’s jails. (15 year minimum life cycle)
· Replace water-damaged sub-floors and refurbish showers at the Musick West Compound. (variable life cycle)
· Perform 10-year roof maintenance, reseal, and renew coatings at Headquarters. (variable life cycle)
· Re-coat outdoor recreation deck at Theo Lacy. (variable life cycle)
· Rehabilitate handicap restroom and shower at Central Men’s jail. (15 minimum year life cycle)
· Restore main steam-pressure reducing station bypass distribution and controls at Central Men’s jail. (15 minimum year life cycle)
· Replace roof and HVAC ductwork at Theo Lacy (15 minimum year life cycle)
B. Central Jail Complex (CJX) Sliding
Doors
The Solicitation of Qualifications (SOQ) to support the design process has begun on this project and Sheriff has provided the design funding in the FY 2009/2010 capital budget process. Sheriff expects the design phase to last approximately two-months and project installation to go out to bid the latter part of 2010. Total estimated construction budget is $5.5 million of which $1.8 million is planned for phase-1 and will include 156 sliding security doors. Phase-1 will be the first of three planned phases of construction, with the remaining two phases each having estimated construction budgets of $1.85 million. The total retrofit will ultimately include 466 existing sliding security doors at the Central Jail Complex. The incremental cost to retrofit each door is between $10,000 and $11,000 per door. The project consists of the removal and retrofitting of existing obsolete sliding door movements and locking mechanisms with newer and updated components. The existing mechanisms are beyond their life expectance. Originally installed in 1968, the door components have been in service in excess of 40 years and are worn and failing and replacement parts are no longer obtainable. Sheriff will bid out phases II and III later as separate projects. Based on the original door’s useful life, the useful life of these new components are expected to exceed 15 years.
C. Digital CCTV Upgrade
The Sheriff’s Department currently makes use of analog recording CCTV surveillance systems that have become obsolete. Manufactures no longer produce analog tape recording media for these systems and replacement tapes are in very limited supply. This project would convert the current analog recording system to a digital system. The estimated construction budget for phase-1 implementation is $3.8 million. A second phase with an estimated construction budget of $4.4 million will complete the project by adding additional cameras and recording equipment, which is not including in $13 million financing amount. This project will add new equipment to provide air conditioned and improved electrical capacity to the CCTV equipment rooms, construct a fiber optic communication network, convert existing analog cameras to enable digital recording and replace existing analog video recorders with new digital equipment. This project will add additional cameras to provide additional video coverage throughout the jails, as well. Furthermore, the project will modify and expand an existing CCTV equipment room to accommodate the new digital equipment. The project will provide conversion equipment for four hundred forty analog cameras to enable digital recording and add eighteen new cameras. The increase in air conditioning and CCTV power requirement will require modifications to electrical distribution at Theo Lacy Jail and Central Jail Complex to support the increase loads. Construction will install new infrastructure components including transformers, switchgear, conduit and wiring as part of phase-1 implementation. The infrastructure components implemented as part of phase-1 activities will support the cameras and recording equipment included in phase-1 in addition to cameras and recording equipment that will be installed as part of the subsequent phase. Infrastructure improvements are expected to exceed 15 years useful life, and camera and recording equipment are expected to attain 15 years of useful life noting that advances in technology could supersede this useful life.
a) Theo Lacy Jail Facility (TLF)
TLF phase-1 implementation includes a new enterprise digital CCTV/digital
recording system, installation of eighteen new cameras and required
wiring. This project includes the
conversion of ninety-one existing cameras to enable digital recording and
installation of a fiber optics communication network. Furthermore, the project will include new air conditioning
equipment and expansion of the existing equipment space. Infrastructure upgrades will include new
power transformers, panels, conduit, wiring for HVAC and CCTV equipment.
b) Central Jail Complex (CJX)
CJX phase-1 implementation includes a new enterprise digital
CCTV/digital recording system, conversion of three hundred forty-nine existing
cameras to enable digital recording and installation of a new fiber optics
network. Furthermore, the project will
include new air conditioning equipment and associated wiring and equipment for
CCTV equipment rooms. Infrastructure
upgrades will include new power transformers, panels, conduit and wiring for
HVAC and CCTV equipment.
Should the Board decide to finance, through the issuance of debt, approximately $12.3 million will be required to complete these capital projects. Approval of the attached Resolution will allow for reimbursement of project expenditures beginning 60 days before the date of adoption of the Resolution. Section 1.150-2 of the Treasury Regulations requires that the County declare its reasonable official intent to reimburse prior expenditures for a project with proceeds of a subsequent borrowing. The Resolution does not bind the County to make any expenditure or to incur any indebtedness. Should the County decide to finance the project through the use of reserves or some other mechanism, the adoption of the attached Resolution would not prohibit such decision or action. The County is considering funding these capital projects using proceeds from either: 1) Recovery Zone Economic Development Bonds created in 2009 under the federal government’s economic stimulus plan; 2) other County financing; or 3) a combination of these two options. Periodic debt service payments would be made from the Criminal Justice Facilities Fund 104. Fund 104 receives revenue from Court fines, fees, and penalties.
The County Executive Office requests that your Board adopt the Resolution authorizing reimbursement of expenditures in connection with various Sheriff-Coroner Criminal Justice Facilities capital project upgrades from proceeds of a potential financing.
FINANCIAL IMPACT:
The estimated annual debt service payment for $13 million bond proceeds (20 year repayment) is $1 million to 1.3 million.
Sheriff-Coroner has identified an unencumbered asset (Coroner's Office & Training Facility Morgue located at 1071 W. Santa Ana Blvd, Santa Ana, CA 92703) for potential use in an "asset transfer" financing. We have identified the Criminal Justice Facilities Fund 104 for the annual debt service payments. Fund 104 receives revenue from Court fines, fees, and penalties.
STAFFING IMPACT:
N/A
REVIEWING AGENCIES:
Sheriff-Coroner Department and County Counsel Department