Marion County Justice Center Frequently Asked Questions. Section One Project Overview Page 2. Section Two The Proposed Deal Structure Page 5
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1 Marin Cunty Justice Center Frequently Asked Questins Sectin One Prject Overview Page 2 Sectin Tw The Prpsed Deal Structure Page 5 Sectin Three Bidding Teams, Selectin Prcess and Prject Timeline Page 8
2 SECTION ONE PROJECT OVERVIEW What are the City s gals fr the Marin Cunty Justice Center prject? The gals f the City fr this prject are as fllws: Cnslidate justice peratins nt ne campus Retire lder facilities Reduce peratinal and cntractual expenses Imprve efficiencies between curts and detentin and cmmunity crrectins peratins Increase access t alternatives t incarceratin Imprve safety and security Imprve access t medical and mental health treatment Enhance size and peratins f cmmunity crrectins within justice system Create campus that is expandable and flexible Limit cnstructin and perating risks t the City Ensure that the prject is fiscally respnsible in the lng term by establishing certainty in the City budget prcess fr bth the cnstructin f a new facility and its peratin and maintenance fr the next thirty-five years Maximize ecnmic develpment ptential fr the area surrunding the selected site as well as dwntwn areas vacated by facilities Why d we need a new criminal curt and a new jail facility? The current curt and jail facilities are aging and incurring rapidly increasing maintenance csts. Als, the facilities designs are inefficient, creating unnecessary safety risks fr emplyees and the general public. These inefficiencies als create additinal perating expenses that culd be eliminated by a mre efficient facility. In additin, bth the curts facility and the jail facilities meet capacity, leaving n rm t expand at current lcatins. A recently passed state law (EHA 1006, 2014) nw requires cunties t accmmdate level 5 and level 6 felns at cunty detentin facilities. Previusly, these inmates were hused at staterun facilities. This will result in additinal detainees in the Marin Cunty jail annually, further exacerbating the existing jail capacity issue. The City has previusly faced a judicial mandate fr nn-cnfrming facilities. If cnditins in the current detentin facilities cntinue t deterirate with age, the City culd again face federal interventin. Additinally, the cnstructin csts assciated with a new facility are expected t duble every 20 years. What gvernmental entities are the main prject stakehlders? The key gvernmental stakehlders related t the prject include: the Marin Cunty Sheriff s Office 2
3 the Marin Cunty Superir Curt City-Cunty Cuncil Cmmunity Crrectins Marin Cunty Prsecutr Marin Cunty Public Defender What will the new Marin Cunty Justice Center include? The new Justice Center will include the fllwing: A 3,000 bed detentin facility with an n-site medical facility; A criminal curt facility with 28 curtrms and 10 hearing rms; A 960 bed minimum security, transitinal cmmunity crrectins facility; Office Space t huse the Marin Cunty Sheriff s Office peratins; and Parking facilities fr the public and fr cunty emplyees. The prject als encmpasses site develpment, including n-site utilities, public plaza, hardscape/landscape imprvements, rad and traffic cntrl imprvements, and verall site security upgrades and utility imprvements frm the prperty bundary t supprt the cmplex. The Prsecutr and Public Defender will als be relcated t new ffices n the Justice Center campus. Because these ffices wuld be nn-specialized, Class A ffice space, the cnstructin f thse ffices will be handled in a separate prcurement prcess that will take place within the next year. What will be the lcatin f the new Justice Center? The City, alng with the prject s stakehlders, has selected the western half f the parcel lcated at the frmer GM Stamping Plant as the lcatin f the prpsed Marin Cunty Justice Center. What kind f impact will the Justice Center have n the lcal neighbrhd? In rder t accmmdate the 2,500 emplyees and 1,100 daily users at the new facility, additinal cmmercial grwth is expected in the surrunding area. Infrastructure imprvements t the surrunding area will be necessary t accmmdate increased traffic. Greater presence f law enfrcement and an expected decline f the crime rate in the surrunding area. The City will be cmmunicating with lcal residents and business wners thrughut this prcess t prvide updates and t receive input n hw the Marin Cunty Justice Center can best benefit the area. What will happen t the current justice facilities nce the new Justice Center pens? 3
4 The City expects t backfill ther gvernmental ffices int the City-Cunty Building in the space created by this relcatin. This will result in a reductin f utside leases and prvide lwer rent payments fr thse agencies. The current jail facilities will be made available fr redevelpment t their highest valued uses and return t the prperty tax rlls. This will help the varius ther taxing units f Marin Cunty wh share the prperty tax revenues, such as IPS and libraries. 4
5 SECTION TWO THE PROPOSED DEAL STRUCTURE What is Perfrmance Based Infrastructure (PBI)? Perfrmance based infrastructure (PBI) invlves partnering with private parties t share the risk and reward f develping, cnstructing, financing, perating, and maintaining publicly-wned assets in rder fr prjects t be cmpleted faster, n budget, and at enhanced value fr mney t the wner. Uses cmpetitive tensin t incentivize and reward the lwest ttal cst f wnership while still delivering the full prgram WMB Heartland Justice Partners and the equity spnsrs accept the respnsibility and risk related t design, cnstructin, peratins and maintenance Service fee payments d nt start until the Justice Center is available fr use and subject t deductins if perfrmance is substandard Leverages private sectr innvatin and efficiencies Prvides budget certainty and predictability t public spnsr What is the nature f the prpsed PBI prject agreement? Under the prject agreement, the City will wn the facility and WMB Heartland Justice Partners will design, build, finance, perate, and maintain the new Justice Center n behalf f the City fr 35 years. In exchange, the City will prvide WMB Heartland Justice Partners with an annual Service Fee cmmencing nce the Justice Center is pen and ccupied. The Service Fee is linked t the perfrmance f WMB Heartland Justice Partners, meaning that deductins t the service fee can be made when space r functinality within the facility are unavailable r ther predetermined perfrmance criteria are nt met. The term f the agreement is anticipated t be 35 years. At the end f the term the facility will be handed back in full wrking cnditin. Why is the City pursuing a PBI delivery methd fr the new Justice Center? Given its gals fr this prject, the City recgnizes that there are several advantages in utilizing a PBI delivery mdel t build and perate the new curt and jail facilities: Due t the nature f a PBI agreement, the risks assciated with design, finance, cnstructin and maintenance f the facility wuld be allcated t WMB Heartland Justice Partners. This results in greater certainty f csts fr the City and allws the stakehlder cunty agencies t accurately budget fr its annual service fee payments t ccupy the facility ver the term f the agreement. As it is subject t deductins, the service fee culd be less, but nt mre, than what is specified in the prject agreement. The PBI prcess requires an unwavering cmmitment t schedule and an ability t balance the demands f the date and price-certain cntract while respnding t stakehlder input. This requires the WMB Heartland Justice Partners t wrk tgether cllabratively t make decisins that are in the best interest f the prject, withut 5
6 cmprmising the fast-track schedule, the effective peratin f the cmpleted facility, r the functinality f the space fr the building tenants, staff, and visitrs. Under a PBI agreement, integratin f the facilities management service prvider and the design-build cntractr ensures maximizatin f the efficiency and perfrmance f the building systems. Since whle life csts thrughut the cntract perid are imprtant cnsideratins in a PBI prject, invlving facilities management service prvider early n in the prcess helps guide decisins arund building peratins, energy usage, and lifecycle maintenance. Additinally, early invlvement allws facilities management service prvider t plan delivery methds and develp mdels that will deliver quality results fr the key perfrmance indicatrs fr the prject. Under a PBI agreement, the City pays n mney until the new facility is built and peratinal. The upfrnt capital csts fr the prject will be financed by WMB Heartland Justice Partners. Under the PBI agreement, WMB Heartland Justice Partners will be cntractually bligated t maintain the facility t a high quality level thrughut the entire term f the agreement. The service fee is subject t deductins that are tied t established perfrmance standards, which are measured peratinally and accrding t ccupant satisfactin. Operatinal cnsideratins might include rm air temperature, cleanliness, and lighting levels. Occupant satisfactin measures custmer service, perfrmance, the cmpletin f preventative maintenance, testing f equipment, and inspectin f space. Prescribed methdlgies f measuring the key perfrmance indicatrs means that perfrmance and any resulting deductins t the service fee are self-evident and therefre self-reprting. At the end f the term f the agreement, the City retains cntrl f a well-maintained and fully peratinal facility. What is the expected cst f the prject? The cnstructin cst f the facility is $408 millin. The annual service fee payment is $46.8 millin fr the first full year f peratins in 2019 ($45.4 millin in 2014 dllars). The present value f service fee payments the City will make t WMB Heartland Justice Partners ver 35 years is $717.7 millin. Hw will the cunty pay fr the new facility? The facility will be financed privately by the successful bidding team. The affected City and Cunty agencies will make annual service fee payments ver the 35-year term t the winning bidder starting in the first year f peratins. Where will the City find the funds t pay fr the cnstructin? The City will nt pay fr the upfrnt cnstructin, as this will be financed by WMB Heartland Justice Partners. The mney t pay fr the annual service fee payments will cme frm the existing budgets f the cunty agencies lcated at the Marin Cunty Justice Center and the savings achieved frm mdern design and ecnmies f scale. 6
7 Hw lng will it take fr the City t pay back the winning bidding team? The term f the prpsed public-private partnership agreement will be 35 years starting when the city-cunty ccupies the new facility. Hw will this prject affect taxpayers? In a PBI delivery mdel, the taxpayer impact is shifted t nt just the lwest design and cnstructin cst but als t the lwest net-present-value life-cycle cst. Gvernments typically under spend n asset management which makes high perating cst taxpayers greatest financial risk in the delivery f public building services. Gd facilities management can save far mre public dllars than lw-bid cnstructin. Can the city and cunty build a new mdern curt and jail facility n its wn? The City culd fllw a mre traditinal way f building a new facility by brrwing mney and wrking thrugh a traditinal bidding prcess t cnstruct a new jail and curthuse. Hwever, under this apprach: The City wuld be respnsible fr the csts assciated with delays and cst verruns f the prject The City wuld bear the risks f perating and maintaining the facility There wuld be less certainty that the City culd finance the entire prject withut raising taxes. Will all jail functins be privatized as a result f this prject? N, the Marin Cunty Sheriff will be respnsible fr guarding and transprting inmates at all times and fr security at the Marin Cunty Justice Center. Operatin f fd services, medical facilities, laundry services, and ther similar functins will als be the respnsibility f the Marin Cunty Sheriff. 7
8 SECTION THREE BIDDING TEAMS, THE SELECTION PROCESS, AND THE PROJECT TIMELINE What is the selectin prcess fr a winning bidding team? The City initially released a request fr qualificatins (RFQ) fr the Marin Cunty Justice Center in December f Five teams respnded t the RFQ, and the City evaluated their respnses based n the teams experience, resurces, and ability t design, build, finance, perate, and maintain a large facility like the prpsed Justice Center. The City then selected the three strngest teams t respnd t a request fr prpsal (RFP) t design, build, finance, perate, and maintain the new facility. In Nvember and December 2014, a review cmmittee and subcmmittees made up f the varius stakehlders evaluated the respnses and selected a final bidding team. The WMB Heartland Justice Partners prpsal had the lwest financial price and met the rigrus technical requirements utlined by the City. Wh are the teams that were shrtlisted fr this prject submitted final prpsals t the city? The three shrt-listed teams are listed belw in alphabetical rder: Indy Justice Partners Equity Members: Fengate Capital Management Ltd., AECOM Glbal Fund I LP, Shiel Sextn Cmpany, Inc. Plenary Edgemr Justice Partners Equity Members: Plenary Grup USA Ltd., Edgemr Infrastructure & Real Estate LLC WMB Heartland Justice Partners Equity Members: Meridiam Infrastructure Indy Justice, LLC, Balfur Beatty Investments, Inc., Walsh Investrs, LLC Hw were the prpsals evaluated? The evaluatin was divided int tw categries: financial and technical. The financial evaluatin fcused n the cst t the city-cunty in the frm f annual service fee payments made ver the curse f the agreement and the financial feasibility f the prpsal. The technical evaluatin fcused n hw well the prpsals fit the needs f the cunty agencies that will be lcated at the Justice Center. Des the preferred bidding team have the required experience t design, build, finance, perate, and maintain the Justice Center? The preferred bidding team, WMB Heartland Justice Partners, that has been selected is amng the wrld s leaders in the design and cnstructin f detentin facilities and curthuses, and has built and perates similar facilities all ver the wrld. Recent prjects delivered by the 8
9 cmpanies n this team include the new curthuse in Lng Beach, Califrnia and the Ohi River Bridge in suthern Indiana. PROJECT TIMELINE What is the prject timeline? December 20, 2013: Issue RFQ/P February 11, 2014: RFQ/P Respnses Due March 2014: Shrtlisting f Prpsers Nvember 21, 2014: Prpsals due December 12, 2014: Selectin f a winning bidding team December/January 2014: Final negtiatins with the winning bidding team February 2014: Expected City Cuncil vte t apprve the prject March 2015: Cmmercial and Financial clse June 2015: Cnstructin begins June 2018: Cnstructin cmpleted and facility becmes peratinal 9
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