Action 37.
Regular Board of Supervisors Meeting
Facilities
- Meeting Date:
- 12/20/2016
- Title:
- Department of Corrections Water Lease at BDI
- Submitted By:
- Nike Noack, Board of Supervisors
- Department:
- Board of Supervisors
Presentation:
No A/V Presentation
Recommendation:
Approve
Document Signatures:
BOS Signature Required
# of ORIGINALS
Submitted for Signature:
Submitted for Signature:
3
NAME
of PRESENTER:
of PRESENTER:
Nike Noack
TITLE
of PRESENTER:
of PRESENTER:
Financial Services Manager
Mandated Function?:
Not Mandated
Source of Mandate
or Basis for Support?:
or Basis for Support?:
Not Mandated
Docket Number (If applicable):
Information
Agenda Item Text:
Approve Amendment No. 8 to Arizona Department of Corrections Agreement No. 090098DC extending the Lease Agreement 7044 to June 30, 2017 with the Arizona State Department of Corrections Facilities for the Water System Improvement Project for a payment of $242,000 to the County.
Background:
On November 28, 1983 the Board of Supervisors approved a lease agreement with the Arizona Department of Corrections for the lease of property at Bisbee-Douglas International Airport to build a prison complex to house Arizona inmates. The term of the contract was for twenty five years and was extended through January 1, 2017.
Amendment 8 is an extension for a period of six months through June 30, 2017 to allow time for a new long term lease to be negotiated and final water system improvements to be completed. DOC currently pays a lease payment of $1.00 (one dollar) per year and $2.30 per 1,000 gallons of water used. This rate will continue through June 30, 2017. In addition, DOC has agreed to make an upfront contribution this fiscal year in the amount of $242,000 representing a portion of their capital improvement costs.
This water rate is anticipated to increase as of July 1, 2017 to include repayment of water system improvements. The anticipated rate will increase to $4.08 per 1,000 gallons of water used pending final construction costs. This rate will allow DOC to repay 95% of capital improvement costs over a 5 year term ending June 30, 2022.
Facilities Management, Finance, and Procurement Departments recommend approval.
Amendment 8 is an extension for a period of six months through June 30, 2017 to allow time for a new long term lease to be negotiated and final water system improvements to be completed. DOC currently pays a lease payment of $1.00 (one dollar) per year and $2.30 per 1,000 gallons of water used. This rate will continue through June 30, 2017. In addition, DOC has agreed to make an upfront contribution this fiscal year in the amount of $242,000 representing a portion of their capital improvement costs.
This water rate is anticipated to increase as of July 1, 2017 to include repayment of water system improvements. The anticipated rate will increase to $4.08 per 1,000 gallons of water used pending final construction costs. This rate will allow DOC to repay 95% of capital improvement costs over a 5 year term ending June 30, 2022.
Facilities Management, Finance, and Procurement Departments recommend approval.
Department's Next Steps (if approved):
Sign the lease extension and complete negotiations for a new lease agreement.
Impact of NOT Approving/Alternatives:
The Department of Corrections will vacate the Arizona State Prison Complex - Douglas
To BOS Staff: Document Disposition/Follow-Up:
After approval/signature return 3 originals to Procurement to fully execute. The lease agreement extension will be hand carried to the BOS office, negotiations will continue to establish a new long term lease agreement.
Fiscal Impact
- Fiscal Year:
- One-time Fixed Costs? ($$$):
- Ongoing Costs? ($$$):
- County Match Required? ($$$):
- A-87 Overhead Amt? (Co. Cost Allocation $$$):
- Source of Funding?:
Fiscal Impact & Funding Sources (if known):
This is a revenue generating agreement.