1. AB900 New Jail Project

2. AB 900 Grant Award Award/ApplicationAmount AB 900 (award)$26,985,422 Does not includekitchen Note: Received written confirmation that County has no obligation to maintain, use or operate existing jail upon completion of new jail.

3. New Cost Estimates From Nacht & Lewis

4. Final Project Description & Cost Estimate

5. AB900  Cash Match - $1,422,000  County has expended over $800,000 to date of which $600,000 can be applied to the match.  For purposes of this presentation, County is estimating in-kind funds to be approximately $500K; the Sheriff’s Department alone is estimating over $418K  Gap Funding- $9,400,000  Nacht and Lewis Revisions  Project description –reduce site footprint, down size project approx 1000 sq ft and add kitchen  project cannot be built with AB900 award ($26,985,422)

6. Operational Increases  Staffing  Correctional officers  Support staff (cook, booking, fiscal)  Medical  Supplies  Proportionate increase in food, clothing and medical care  Utilities

7. Staff Operational Increase March 10, 2015  Minimum additional staffing needed to meet all State requirements is: 2 New Correctional Officers 1 New Fiscal position  Estimated costs, based on hiring in FY19/20 is: $223,076  Services & Supplies – $175,000 line items expected to increase once new jail is at 180 bed capacity, based on Nacht & Lewis Feasibility Study include food, household, office supplies, etc.  Potential funding source for Operational staff costs:  AB109

8. Operational Cost Increase assumes occupancy of 150 StaffSupplies Food$100,000 Medical$170,000 Clothing$5,000 Cook (0.5 FTE)$19,000 Correctional Nurse (0.5 FTE)$40,000 Correctional Officer (1 FTE)$74,000 Fiscal Tech$64,000 Total$197,000$275,000

9. Cash Match$1,422,000 Allowable Expenditures to date($600,000) In-kind($500,000) Project GAP$9,400,000 Additional Funds Needed $9,722,000

10. Possible Funding Sources Fund OptionAmountRemaining Fund Balance Notes Accumulated Capital Outlay $320,0000 Geothermal Fund$350,000 *$129,000 *currently funds portion of APCD staff. Closer review needed. Siskiyou Power Authority $1,000,0000 (+$1.5M Emergency Reserve) Gold Theft Insurance set aside $1,000,0000 (+remaining gold collection) These funds are in an Agency Fund SB 863 committed$113,0000 CCP Funds$250,000 CCP committed to contributing these funds Total$3,033,000 There is potential buyer interested in the Moonlit Oaks property the proceeds would be used- approx $285,000. Available Funding Sources

11. Financing  The Treasurer-Tax Collector and Auditor- Controller have explored financing of gap funding.  Need complete project description to determine viability- 6-12 months to complete process  Amount to finance approx $9 million

12.  Pooled Fund loan- long term loan for gap funding is not a legal (GC 53601) per County Treasurer-Tax Collector.  iBank- still researching.  USDA  6-8 months to complete process  Revenue source to pay debt service?  NEPA  Retain 10% annual debt service pmt.  Certificate of Participation (COP)  Cost $275,000- could be rolled into amt. financed  Min 5 months  Collateral?  30 years  Annual pmt of $570,000-640,000.

13. Financing $9,400,000 4.5%5.5% 30 Yrs$572,000 per yr.$641,000 per yr. 20 yrs$714,000 per yr.$776,000 per yr.  Annual increase in operational costs $472,000 (min.)  Best case- increase apprx. $1,000,000 per year

14. Financing $7,000,000 4.5%5.5% 30 Yrs$426,000 per yr.$480,000 per yr. 20 yrs$528,000 per yr.$576,000 yr.  Annual increase in operational costs $472,000 (min.)

15. Financial Considerations There’s no crystal ball!  Cons  GASB 68 Unfunded Liability Requirements  GASB 45 OPEB Liability  PERS rate increases  Annual Health Insurance Increases-  Secure Rural School funding uncertainty  Employee COLAs  Economy fluctuations?  Pros  Final Payback of Court Revenue audit end December 2016- $112,000  Triple Flip Swap Expires December 2015. County will receive 1% of Bradley-Burns local sales and use taxes. Est revenue  El Nino?  Economy fluctuations?

16. Project Establishment  Timeline  Time is money- Costs escalate every day we fail to establish the project.  Cannot establish the project until financing is approved. Approx 6-12 month process to establish the project.

17. Project Management  CAO (.25FTE)  Auditor-Controller/Assistant Auditor Controller/ Accountant Auditor (.1FTE)  Treasurer (.1FTE)  Sheriff, Jail Lieutenant, Jail Sgt., Jail Fiscal staff (1.5 FTE)  Director Public Works(.25FTE)  Project cost includes hiring construction manager