AB900 New Jail Project

Final Project Description & Cost Estimate

AB 900 Grant Award AmountGAP AB 900 (award) $26,985,422 Jail with kitchen $37,774,000$9,366,578 Jail without kitchen $34,774,000$6,366,578

SALES TAX INITIATIVE Funding Option Purpose  Finalize Project Description  On-site or off-site kitchen  Determine Sales Tax Initiative Structure  General tax  Special tax

Funding Process  Auditor-Controller and Treasurer-Tax Collector to concurrently pursue financing options.  USDA Loan  Certificate of Participation  I-Bank  Pursue voter approved sales tax initiative to provide revenue source for debt service

Project Description  After pursuing all off-site kitchen options, the Sheriff supports pursuing funding for a jail project that would build an on-site kitchen.  Mobile food facility  Gap funding remains at $6.4 million  Must construct or purchase additional trailer units for dry food goods, refrigerated foods, frozen foods and dish washing.  Increase jail construction costs approx $1 million; increases gap to $7.4 million  Purchase and install multiple trailer units- redesign exterior to add security features. Method of operation inefficient and impractical. Recommend using existing jail.  Use existing jail  Gap remains $6.4 million  Must build receiving facility at new jail- estimated cost $2 million  Jail staff and operational costs increase significantly

PROJECT DESCRIPTION On-site kitchen  On-site kitchen - $9.4 million gap based on today’s figures.  Construction costs will increase between now and project establishment date.  Assume financing need of $10 million.

Project Description Off-site kitchen  Off-site kitchen-$6.4 million gap based on today’s figures  Assume trailer unit can be purchased and installed for $500,000  Construction costs will increase between now and project establishment date.  Assume financing need of $7.5million

DECISION TIME  On-site Kitchen?  Off-site kitchen?

SALES TAX INITIATIVE  County sales tax revenue is approximately $800,000 per year  Current sales tax rate is 7.5%  Increase.25% or.5% .25% generates approx $200,000 per year .5% generates approx $400,000 per year

$10,000,000 Debt Service 30 yrs20 yrs 4.5%$608,000$760, %$681,000$825,500

$7.5 Million Debt Service 20 yrs30 yrs 4.5%$570,000$456, %$619,100$511,000

Debt Service Scenario Annual Debt Service $700,000 Funding SourceAmount.5% Sales Tax$400,000 Redirect Court Split Repay- $100,000 Siskiyou Power Authority $200,000 Total$700,000

TAX INITIAVE STRUCTURE  Structured as a general tax-  requires 50% + 1 to pass  Add advisory measure  Add sunset provision  Structured as a special tax to fund jail construction  Requires 2/3 majority or 66.67% to pass  Add sunset provision  No cost to the County to put on June 2016 ballot unless a two page ballot is required

DECISION TIME  Structure as a General Tax?  Structure as a Special Tax?  Advisory measure?  Sunset provision?

Next Steps  Board to approve resolution directing County Clerk to put initiative on the ballot  Counsel to draft impartial analysis for ballot measures  Measure placed on June ballot  Discuss regulations related to activities that can and cannot be funded with public funds.

Use of Public Funds  We could contract for County-sponsored Public Information Program.  Public funds can legally be spent to educate and assess your community.  Educates/updates the public on the essential needs in a legally permissible manner.