In January 2015, the Board received and approved the Jacobs Group Strategic Space Utilization Study indicating specific space and infrastructure needs in Yolo County. In November 2015, the Board received and approved the inaugural, rolling three-year Capital Improvement Plan identifying specific projects and investments for capital improvement. In April 2016, the Board received a presentation from KNN Public Finance of conceptual bond financing scenarios to address the priority capital improvement projects. In the April 2016 meeting, the Board requested the opportunity to review and comment on the scope of projects that would be used in pursuit of a formal bond financing plan.
Projects were prioritized through an iterative process. The Capital Improvement Committee (CIC) identified Accumulated Capital Outlay (ACO) funds to support the debt service. However, some of these funds were previously committed to approved projects. In a bond financing model, the costs associated with those committed projects could be paid by bond proceeds and included in the financed amount thus freeing the ACO funds to be available for debt service.
The CIC considered many factors in prioritizing projects for consideration in the initial financing model. Factors including construction costs, additional identified revenue or financing, severity of infrastructure needs as identified in the Jacobs Study, and Board input were all weighed at length.
There are three capital projects the County is currently committed to. These project are all largely funded with state grant funds requiring a county match. These projects are identified as "Tier 1" projects. Tier 1 projects include:
1. Sheriff's Detention Expansion A: Monroe (Total Cost: $44,940,000; Amount Financed: $1,619,000)
Renovation and expansion of the existing jail facilities, which includes a new housing addition, new kitchen and laundry facility, new health and mental health treatment areas and electronics not funded through the state grant.
2. Sheriff's Detention Expansion B: Leinberger (Total Cost: $45,000,000; Amount Financed: $5,000,000)
Replaces the Leinberger Center with a modernized facility better able to accommodate inmate programs for a population of individuals with long-term sentences. This amount will fund the County's required state grant match.
3. Probation Treatment, Gym, and Visitor's Center (Total Cost: $8,040,000; Amount Financed: $2,088,000)
Construction of a new multipurpose recreation facility and visitor center near the existing Juvenile Hall. This amount will fund the additional cash needed for security electronics and cost escalations not funded through the state grant.
Tier 1 Projects
(Committed) |
Total Construction
Cost |
Total Construction
Amount Funded |
Total Construction
Amount Bonded |
Estimated Annual
Debt Service
(25 years) |
|
Sheriff Detention Expansion A: Monroe |
$44,940,000 |
$43,321,000 |
$1,619,000 |
$103,942 |
|
Sheriff Detention Expansion B: Leinberger |
$45,000,000 |
$40,000,000 |
$5,000,000 |
$320,250 |
|
Probation Treatment, Gym, and Visitor Center |
$8,040,000 |
$5,952,000 |
$2,088,000 |
$134,010 |
The amount needed for these three projects alone would not support a bond financing model. Lease bond financing presents an opportunity for the County to make additional capital improvements. The priority list of projects being considered would be financed in combination with the Tier 1 committed projects in an initial bond issuance. The Tier 2 projects are those projects that have been determined as priority projects by the CIC for an initial bond issuance but do not have an existing County commitment or Board approval. Tier 2 projects include:
1. Historic Courthouse Renovation (Total Cost: $5,000,000; Amount Financed: $5,000,000)
Renovation of the Historic Courthouse to accommodate staff space and special event capacity, as consistent with those uses identified in the Jacobs Space Study and the Historic Reuse Plan.
2. 600 A Street, Davis (Total Cost: $1,700,000; Amount Financed: $1,700,000)
Davis co-location for Health and Human Services staff with Service Center accommodations for Davis community members, as well as remodeled office space for District 2 and District 4 Supervisors.
3. Library Archives (Total Cost: $6,500,000; Amount Financed: $6,500,000)
New facility for the Archives with adequate preservation requirements and collection space.
4. Yolo Library (Total Cost: $1,460,000; Amount Financed: $1,381,400)
Construction of a new building to replace the existing Yolo Library.
Tier 2 Projects
(Proposed for
first bond issuance) |
Total Construction
Cost |
Total Construction
Amount Funded |
Total Construction
Amount Bonded |
Estimated Annual
Debt Service
(25 years) |
Historic Courthouse:
Renovation for staff occupancy |
$5,000,000 |
$0 |
$5,000,000 |
$320,250 |
|
600 A Street, Davis |
$1,700,000 |
$0 |
$1,700,000 |
$109,029 |
|
Library Archives |
$6,500,000 |
$0 |
$6,500,000 |
$416,183 |
Library Yolo (funding estimated from
Development Impact Fees) |
$1,460,000 |
$78,600 |
$1,381,400 |
$88,423 |
In the initial financing concept presented to the Board in April 2016, a second bond issuance was proposed to follow in the second or third year after the first bond issuance. A second bond issuance was considered for several reasons. Primarily, the County must reasonably expect to be able to spend the bonded funds within three years of issuance. Taking on multiple, ongoing capital projects at one time would be challenging. Under the bond financing model, the debt service of the combined first and second bond issuance would still be within affordability limits for the County based on the ACO fund. A second bond issuance is proposed to best coordinate construction schedules and cash flows, but a second bond issuance is not required.
In the financing plan concept presented to the Board in the April 2016 meeting, one project, a new Probation Administration building, was used for a second bond issuance. Since the time the CIC identified that project for a second bond issuance, in part based on earlier ideas for the Historic Courthouse and the Library Archives, new priority projects have received interest. These potential projects for a second bond issuance are identified as "Tier 3" projects. Tier 3 project options include:
1. Probation Administration Building (Total Cost: $18,706,000; Amount Financed: $18,706,000)
Construction of a new building to consolidate all probation services and administration units into one location. Probation could also remain in the renovated Historic Courthouse until additional funds for this project are available.
2. South Davis Library (Total Cost: $25,800,000; Amount Financed: $25,800,000)
This model does not include the contribution of the development impact fees to the amount financed, which would reduce the overall financed amount for a new branch of the Library in South Davis. Requests for development estimates to local building officials were made, but responses were unavailable for inclusion in the staff report.
3. New Animal Shelter (Total Cost: $7,000,000; Amount Financed: $3,500,000)
The Animal Shelter project has been escalated to a priority project in this model at the direction of the Board in the April 2016 meeting due to the momentum of a community group committing to raise funds toward construction and operating costs.
4. Adult Day Health Center (Total Cost: $1,900,000; Amount Financed: $1,900,000)
With the completion of a new Library Archives building, the County would have a vacant site that has an adequate footprint on which to renovate a space dedicated to the Adult Day Health Center. An important consideration for this specific project, as well as the Animal Shelter project, would be the requirement to spend bond proceeds within three years of issuance. Given that this project could not start until the Archives new facility is complete and the current location is fully vacated, the second bond issuance would be a more appropriate timing for the project.
Tier 3 Projects
(Options for a potential
second bond issuance) |
Total Construction
Cost |
Total Construction
Amount Funded |
Total Construction
Amount Bonded |
Estimated Annual
Debt Service
(25 years) |
|
Probation Administration |
$18,700,000 |
$0 |
$18,700,000 |
$1,379,451 |
|
South Davis Library |
$25,800,000 |
$0 |
$25,800,000 |
$2,133,476 |
|
New Animal Shelter |
$7,000,000 |
$3,500,000 |
$3,500,000 |
$276,057 |
|
Adult Day Health Center |
$1,900,000 |
$0 |
$1,900,000 |
$140,114 |
Tier 3 projects are not exclusively considered for a second bond issuance. Should the Board determine that a Tier 2 project should wait and it is reasonable that the Tier 3 project could be completed within three (3) years of the bond issuance, projects can move forward or back. The scope of the projects pursued in a formal financing plan by the CIC will align with Board direction. Staff has prepared four (4) scenarios of project scopes for the Board's consideration. Staff recommends the Board support Project Scope 1 for inclusion in the final financing plan.
Project Scope 1:
Project Scope 1 includes the Tier 1 and Tier 2 projects for the first bond issuance, and the Tier 3 projects of the New Animal Shelter and the Adult Day Health Center for the second bond issuance. The CIC had prior identified the Tier 2 projects as priorities. The need for a new Probation Administration building is somewhat lessened after the renovation of the Historic Courthouse for staff space, than in prior project scope models where the Historic Courthouse is used for the Library Archives. The Tier 3 Adult Day Health Center is of high priority, but planning that project for a second issuance as in Project Scope 1 is a more appropriate timing of fund issuance and construction schedules, given the three (3) year rule.
|
First Bond Issuance Projects |
Total Construction
Amount Bonded |
Estimated Annual
Debt Service
(25 years) |
|
Sheriff Expansion: Monroe (Tier 1) |
$1,619,000 |
$103,942 |
|
Sheriff Expansion: Leinberger (Tier 1) |
$5,000,000 |
$320,250 |
Probation Treatment, Gym, Visitor's Center
(Tier 1) |
$2,088,000 |
$134,010 |
|
Historic Courthouse (Tier 2) |
$5,000,000 |
$320,250 |
|
600 A Street, Davis (Tier 2) |
$1,700,000 |
$109,029 |
|
Library Archives (Tier 2) |
$6,500,000 |
$416,183 |
|
Yolo Library (Tier 2) |
$1,318,400 |
$88,423 |
|
TOTALS |
$23,225,400 |
$1,492,087 |
|
Second Bond Issuance Projects |
Total Construction
Amount Bonded |
Estimated Annual
Debt Service
(25 years) |
|
New Animal Shelter (Tier 3) |
$3,500,000 |
$276,057 |
|
Adult Day Health Center (Tier 3) |
$1,900,000 |
$140,114 |
|
TOTALS |
$5,400,000 |
$416,171 |
Total Amount Financed: $28,625,400
Total Estimated Annual Debt Service after both bond issuances: $1,908,258
Project Scope 2:
The second proposed model, Project Scope 2, excludes from the first bond issuance the Tier 2 project, 600 A Street, Davis, but includes the Tier 3 project for the South Davis Library in the second bond issuance. The first bond issuance in this project scope is reduced, but the subsequent overall debt balance and annual debt service higher due to the inclusion of the South Davis Library project.
|
First Bond Issuance Projects |
Total Construction
Amount Bonded |
Estimated Annual
Debt Service
(25 years) |
|
Sheriff Expansion: Monroe (Tier 1) |
$1,619,000 |
$103,942 |
|
Sheriff Expansion: Leinberger (Tier 1) |
$5,000,000 |
$320,250 |
Probation Treatment, Gym, Visitor's Center
(Tier 1) |
$2,088,000 |
$134,010 |
|
Historic Courthouse (Tier 2) |
$5,000,000 |
$320,250 |
|
Library Archives (Tier 2) |
$6,500,000 |
$416,183 |
|
Yolo Library (Tier 2) |
$1,318,400 |
$88,423 |
|
TOTALS |
$21,525,400 |
$1,383,058 |
|
Second Bond Issuance Projects |
Total Construction
Amount Bonded |
Estimated Annual
Debt Service
(25 years) |
|
South Davis Library (Tier 3) |
$25,800,000 |
$2,133,476 |
|
New Animal Shelter (Tier 3) |
$3,500,000 |
$276,057 |
|
Adult Day Health Center (Tier 3) |
$1,900,000 |
$140,114 |
|
TOTALS |
$31,200,000 |
$2,549,647 |
Total Amount Financed: $52,275,400
Total Estimated Annual Debt Service: $3,932,705
Project Scope 3:
The third model, Project Scope 3, continues the exclusion of the 600 A Street, Davis project, and accelerates the Adult Day Health Center project into the first bond issuance. Project Scope 3 also excludes the South Davis Library and the Probation Administration building. This gives the Board the option to forego a second bond issuance altogether, should they direct. The challenge with Project Scope 3 is meeting the requirement that bond proceeds expect to be spent within three (3) years of the issuance of the bond. Should the plan for the Adult Day Health Center renovation be dependent on the vacated space currently housing the Library Archives, Project Scope 3 would be committing to completing both those projects, in sequence, within three (3) years.
|
Sole Bond Issuance Projects |
Total Construction
Amount Bonded |
Estimated Annual
Debt Service
(25 years) |
|
Sheriff Expansion: Monroe (Tier 1) |
$1,619,000 |
$103,942 |
|
Sheriff Expansion: Leinberger (Tier 1) |
$5,000,000 |
$320,250 |
Probation Treatment, Gym, Visitor's Center
(Tier 1) |
$2,088,000 |
$134,010 |
|
Historic Courthouse (Tier 2) |
$5,000,000 |
$320,250 |
|
Library Archives (Tier 2) |
$6,500,000 |
$416,183 |
|
Yolo Library (Tier 2) |
$1,318,400 |
$88,423 |
|
Adult Day Health Center (Tier 3) |
$1,900,000 |
$140,114 |
|
TOTALS |
$23,425,400 |
$1,523,172 |
Total Amount Financed: $23,425,400
Total Estimated Annual Debt Service: $1,523,172
Project Scope 4:
The final option, Project Scope 4, presented for the Board's consideration, includes all projects listed in all three tiers. Staff does not recommend this approach as the estimated annual debt service exceeds that which the CIC decided collaboratively to be affordable based on the ACO fund.
|
First Bond Issuance Projects |
Total Construction
Amount Bonded |
Estimated Annual
Debt Service
(25 years) |
|
Sheriff Expansion: Monroe (Tier 1) |
$1,619,000 |
$103,942 |
|
Sheriff Expansion: Leinberger (Tier 1) |
$5,000,000 |
$320,250 |
Probation Treatment, Gym, Visitor's Center
(Tier 1) |
$2,088,000 |
$134,010 |
|
Historic Courthouse (Tier 2) |
$5,000,000 |
$320,250 |
|
600 A Street, Davis (Tier 2) |
$1,700,000 |
$109,029 |
|
Library Archives (Tier 2) |
$6,500,000 |
$416,183 |
|
Yolo Library (Tier 2) |
$1,318,400 |
$88,423 |
|
TOTALS |
$23,225,400 |
$1,492,087 |
|
Second Bond Issuance Projects |
Total Construction
Amount Bonded |
Estimated Annual
Debt Service
(25 years) |
|
Probation Administration |
$18,706,000 |
$1,379,451 |
|
South Davis Library |
$25,800,000 |
$2,133,476 |
|
New Animal Shelter |
$3,500,000 |
$276,057 |
|
Adult Day Health Center |
$1,900,000 |
$140,114 |
|
TOTALS |
$49,906,000 |
$3,929,098 |
Total Amount Financed: $73,131,400
Total Estimated Annual Debt Service: $5,421,185
Recommendation:
Staff recommends the Board designate Project Scope 1 as the model for development of the final financing plan. Designation of a specific project scope option does not constitute approval of any specific project or construction amounts. Each project will still adhere to the customary processes to secure the Board's approval. The Project Scope option selected, or other scope of projects designed by the Board today, will be used by staff in development of the final financing plan as part of the Capital Improvement Plan, and brought back to the Board for approval.
|