Adopt resolution authorizing the execution and delivery of a Facility Sublease for and ratifying all previous actions with respect to the Yolo Jail Project (Leinberger Project) and authorizing certain actions in connection therewith related to the Lease Revenue Bond financing through the State Public Works Board and the Board of State and Community Corrections. (No general fund impact) (Pistochini)

Adopt resolution authorizing the execution and delivery of a Facility Sublease for and ratifying all previous actions with respect to the Yolo Jail Project (Leinberger Project) and authorizing certain actions in connection therewith related to the Lease Revenue Bond financing through the State Public Works Board and the Board of State and Community Corrections.

The County embarked on a construction project to replace the Leinberger Jail Facility ("Project" or "Facility") in 2020.  This $30 million dollar Project is largely financed by a grant from the Board of State and Community Corrections (BSCC) through the SB 863 (2014) Adult Local Criminal Justice Construction program, which will ultimately be paid for by State Public Works Board (SPWB) lease revenue bonds.  The Project is nearly complete, and thus the Project is eligible to be included in the upcoming State bond cycle.  The Board of Supervisors has authorized prior agreements to facilitate the Project's financing, including approval of a Project Delivery and Construction Agreement dated as of December 4, 2017 and a Ground Lease dated as of July 28, 2020 between the County, as landlord, and BSCC, as tenant, of the site on which the Project is located.

The final step for the long-term financing is approval of the lease revenue bond financing, which involves various agreements, including a Site Lease and Facility Lease between BSCC and SPWB, as well as a Facility Sublease between BSCC and the County.  Payment of the principal and interest on the bonds will be made through rental payments under the Facility Sublease.  Pursuant to the proposed Facility Sublease, BSCC will make the rental payments and the County will be responsible for the all maintenance and operation costs of the Project.  As part of this process, the Board of Supervisors must adopt the attached Resolution (Attachment A) authorizing execution of the Facility Sublease (Attachment B) in substantially the form presented.  The Facility Sublease requires approval from BSCC and SPWB for any future subleases or use agreements for the Facility.

The resolution further designates the County Administrator and the Chief Financial Officer as "Authorized Officers" who may execute the Facility Sublease in substantially the form presented in Attachment B, with such additions thereto and changes as may be required by BSCC or SWPB as conditions to the issuance of the lease revenue bonds. The Resolution further authorizes the Authorized Officers to take any additional actions and execute all documents, certificates (including tax certificates), and agreements necessary to complete the issuance of the lease revenue bonds. This will include minor actions such as amending at least one existing agreement (for inmate phone services) to include a 50-day termination provision, as is customary for certain agreements that involve facilities financed by state bonds.

The SPWB is anticipated to authorize the State Treasurer to sell the bonds (Lease Revenue Bonds 2023 Series D (Various Capital Projects) and approve the related agreements at its meeting on October 13, 2023.

The department collaborated with the County Counsel's Office, the California Board of State & Community Corrections, and the California State Public Works Board.