Board OKs two detention-officer positions and hires bond counsel to advise on $7M means-of-effort payback and possible refinancing

During a jail-district session on May 13 the Santa Cruz County Board of Supervisors authorized two budgeted detention-officer positions requested by the sheriff and approved letters of engagement with Marter and English LLP to serve as the district’s bond counsel.

Valdez, the county manager, told the board the contracts with bond counsel would provide legal advice on statutory "means-of-effort" obligations and on the structure and possible refinancing of pledged revenue related to the district’s 2017 refunding obligation. “That total has gone up to about $7 million now of additional means of effort that the general fund has provided,” Valdez said, describing a goal to have the jail district pay back the general fund and to explore refinancing to improve the district’s cash flow.

The engagement letters describe an hourly senior-attorney rate of $500 with other rates for additional staff as outlined in the documents presented to the board. Both the staffing authorization and the bond-counsel engagements were moved, seconded and carried unanimously in jail-district session.

The county manager and finance staff said engaging bond counsel will allow the county to review options and legal requirements for a repayment structure and for potential refunding of pledged revenues. The sheriff’s office had requested the two detention positions; the board confirmed both are budgeted.

Next steps: bond counsel will provide legal analysis and options for repayment and refinancing; staff will return with recommended structures if appropriate.