CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: January 17, 2023 Action Required: None. This is an informational report. Presenter: Courtney Rogers, Roland Kooch, Stephen Geisz, A.J. Allen, Col. Martin Kumer Staff Contacts: Ashley Marshall, Deputy City Manager Title: Albemarle-Charlottesville Regional Jail Authority: Jail Renovation Project - Plan of Finance Background Davenport & Company (“Davenport”), in our capacity as Financial Advisor to the Albemarle-Charlottesville Regional Jail Authority (the “Authority”), is providing the enclosed Plan of Finance Briefing to each Member Jurisdiction with respect to the proposed Jail Renovation Project. The projects mission statement is: "To receive, consider, and incorporate meaningful community and stakeholder input regarding the anticipated renovation of the physical facilities of the Albemarle-Charlottesville Regional Jail, and giving particular attention to inmate capacity, physical and mental well-being, gender equality, alternatives to 24/7 incarceration (including HEI), and re-entry programming while respecting the financial contributions of the taxpayers." Additional information can be found on the Jail's website at: https://www.acrj.org/renovationproject Discussion The current jail facility opened in 1975 to combine Albemarle County and Charlottesville City Jails. The facility's rated capacity increased to 209 after two additions in the 1990s to the facility. In 1997, Nelson County became the third jail member. Finally, in 2000 the final physical expansion was completed, bringing the total capacity to 329 persons. The average daily population has been as high as 600 in 2008, and as low as 265 in January 2020 with that month registering the lowest average daily population in 20 years. In September of 2019, a flooring and HVAC replacement project was submitted to the ACRJ Board totaling $1.2M in costs. The ACRJ Board consists of representatives from every member jurisdiction, including three representatives from the City of Charlottesville composed of one City Council Member, one representative for the Office of the City Manager, and one appointed member from the community. The September 2019 project submission moved the board to further action in January 2020 when they began to formally address issues of maintenance, repair, and replacement issues with the original 1974 facility by approving a Facility Condition Assessment (FCA) to be conducted. The FCA's goal was to identify, prioritize, and guide future projects and the report determined that the facility required significant upgrades and replacements to its HVAC, electrical systems, and other major mechanical systems over the next 10 years, in addition to other interior fixtures, lighting, and security needs. The FCA did not determine staff, inmate or public needs. After analyzing the FCAC, the Board determined in January 2021 that a comprehensive plan should be developed to address all of the Jail's needs. Further, in order to seek state reimbursement for 25% of the costs to address identified concerns, a formal Community-Based Corrections Plan (CBCP) would need to be conducted. In March 2021, the Board hired Mosely Architects to conduct the CBCP. Public engagement was held in July and August 2021 to collect feedback from the community and stakeholders. The CBCP found that there were necessary improvements needed to the physical structure, such as additional toilets and showers to comply with ADA and new building codes, a redesigned imamate housing area that creates an environment that encourages mental and physical well-being, a dedicated mental health and segregation unit that is conducive to improving an inmates mental health, replacement of major mechanical systems serving the original facility to improve climate control and air quality, additional inmate classrooms and programming space, and a larger public vision area that will meet the needs of the public and professional visitors. The proposed renovation and expansion meet three identified goals and objectives for the inmates, community/stakeholders, and employees: to create a space conducive to inmate rehabilitation that reduces recidivism using trauma-informed design; update heating, ventilation, and air conditioning systems; and conserve resources by adding energy and utility-efficient fixtures and increasing the use of natural daylight. Further, the CBCP found that there are no indications in the historical data that suggest the inmate population will increase substantially in the future. Therefore, while renovations are recommended, they will occur using approximately 56,000 square feet of the existing 152,900 square feet footprint and the rated capacity will not be increased with this renovation. The CBCP was also presented to all localities in October 2021 during public meetings. In December 2021, the Board approved authorization for Mosley Architects to submit the Community- Based Correction Plan to the State Board of Local and Regional Jails for review in consideration of the 25% reimbursement. In January 2022 the Board authorized the Jail to contract with Davenport Financial Advisors to determine the cost share for the localities. Davenport has analyzed the project based on the following set of assumptions and projected each locality's share of debt: • The project adheres to the schedule presented by Mosley Architects. • The total project cost of $49M • The state reimburses 25% ($12.5M) of eligible costs • Debt Service is allocated based on the locality share of inmate days • Debt is based on a 20-year bond at 4% • Locality share remains constant Alignment with City Council's Vision and Strategic Plan Community Engagement Mosley Architects and ACRJ engaged with the public in July and August 2021 to collect feedback from the community and stakeholders. Budgetary Impact Any renovation to the ACRJ will have a budgetary impact on the City as a partner locality in the regional jail. The currently projected allocation based on FY 2023 estimate of inmate days would have the City carrying 41.3% of the costs less the 25% state reimbursement. Albemarle County would carry 45.7% of the project, and Nelson County would carry 13% of the project costs. Recommendation This presentation by Davenport Public Finance in an information report with no resolution attached at this time. Alternatives N/A Attachments 1. Charlottesville - Final Plan of Finance - Albemarle-Charlottesville Regional Jail Authority 12.22.2022