To: BOARD OF SUPERVISORS
From: Executive Office and Sheriff-Coroner
Meeting Date: September 1, 2026
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Department Contact: |
Sara Pierce |
Phone: |
707-463-4441 |
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Department Contact: |
Greg VanPatten |
Phone: |
707-463-4423 |
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Item Type: Consent Agenda |
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Time Allocated for Item: N/A |
Agenda Title:
title
Adoption of a Resolution Authorizing the Execution and Delivery of a Facility Sublease for the Mendocino Jail Project and Authorizing Certain Actions in Connection Therewith
Vote Requirement: Majority
End
Recommended Action/Motion:
recommendation
Adopt a Resolution authorizing the execution and delivery of a facility sublease for the Mendocino Jail Project and authorizing certain actions in connection therewith; and authorize the Chair to sign same.
End
Previous Board/Board Committee Actions:
On February 7, 2017, Resolution 17-019 authorized the Sheriff’s Office submittal of a proposal for funding through the Adult Local Criminal Justice Facilities Construction Financing Program (Senate Bill 844) for additional specialty housing and expanded program, training, and mental healthcare space at the County jail and authorized an appropriation for the local match portion of the project of approximately $1.047 million. The County’s proposal was ultimately successful in securing $25 million in state reimbursement.
On December 19, 2017, an agreement was approved with Nacht & Lewis, in the amount of $2.901 million, for architectural services related to this project.
On April 24, 2018, a modification to the project location was approved; an increase to the local match of approximately $1,000,000 was also approved. FY 19-20 budget included an additional $500,000 appropriation to increase the local match to this project.
On February 9, 2021 the Board approved modification of land pledged by the County as security for Certificates of Participation issued in 2012, so the footprint of this new project was not otherwise encumbered and available as security for the State’s new funding.
On September 28, 2021 the Board accepted the presentation of updated cost estimates for the project including a projected budget shortfall of $3.6 million.
On March 15, 2022 the Board of Supervisors adopted a resolution finding that prime contractors submitting bids for the SB844 Jail Project must be pre-qualified and approved the pre-qualification process.
On October 31, 2023 the Board of Supervisors adopted a resolution assuring the necessary matching funds and conditionally approved the award of the SB844 Mendocino Jail project to Broward Builders, Incorporated.
Summary of Request:
The long-term financing for the Mendocino County SB844 Jail Project will be through lease revenue bonds issued by the State Public Works Board (the “SPWB”). These bonds will be secured, in part, by base rental payments under a series of leases and subleases of the Jail Project Site. In 2021, the County entered into a Ground Lease for the Jail Project Site with the BSCC, as well as related access and utility easements, for the purpose of construction, operation and maintenance of the new jail. In connection with the issuance of the SPWB bonds, the BSCC will lease the Jail Project Site to the SPWB under a Site Lease, and the BSCC will lease the Jail Project Site and the project back to the BSCC under a Facility Lease. The BSCC will then enter into a Facility Sublease with the County. The County will be responsible for all the maintenance and operations costs for the Jail Project under the Facility Sublease. Payment of the principal and interest of the SPWB bonds will be made through rental payments made under the Facility Sublease by the BSCC from annual appropriations made to the BSCC included in the State budget.
The BSCC provided the County $25,000,000 in short term financing for the construction of the new Jail Project which the County constructed under the terms of the Project Delivery and Construction Agreement executed in 2018.
With the approval of this resolution, the County is approving and authorizing the execution of the Facility Sublease whereby the County agrees to operate the Jail Project under terms that comply with the requirements of the lease revenue bonds financing the Jail Project. The resolution also authorizes the Chief Executive Officer or the Treasurer-Tax Collector (or any acting or interim of such positions or their designees) to execute the Facility Sublease, approve changes that may be required for issuance of the bonds and deliver any and all such documents required to consummate the transactions contemplated in the Facility Sublease.
While the County is not obligated to make rental payments to the BSCC under the Facility Sublease, the County agrees to operate and maintain the Jail Project without encumbering the property or facility or otherwise jeopardizing the tax-exempt status of the lease revenue bonds issued by the SPWB. Just like the existing Ground Lease, there shall be no termination of the Facility Sublease until all indebtedness incurred by the SPWB for the Jail Project has been fully repaid.
In accepting the SB844 program funding and agreeing to the Project Delivery and Construction Agreement in 2018, the County has previously acknowledged and agreed to enter into this Facility Sublease.
Alternative Action/Motion:
Provide alternate direction to staff.
Strategic Plan Priority Designation: A Safe and Healthy County
Supervisorial District: All
Supplemental Information Available Online At: N/A
Fiscal Details:
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source of funding: Previously authorized Matching funds. |
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current f/y cost: Yes. |
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budget clarification: Rental payments are not due to BSCC under this agreement, however the County is obligated to complete final project fit out and compliance requirements under the Capital Project CP915 and occupy and operate the new facility which is budgeted under the Jail budget unit. |
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annual recurring cost: Yes. |
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budgeted in current f/y (if no, please describe): Yes |
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revenue agreement: No |
AGREEMENT/RESOLUTION/ORDINANCE APPROVED BY COUNTY COUNSEL: Yes
CEO Liaison: Sara Pierce, Interim CEO
CEO Review: Yes
CEO Comments:
FOR COB USE ONLY
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Executed By: Deputy Clerk |
Final Status: Item Status |
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Date: Date Executed |
Executed Item Type: item |
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Number: |
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