Construction of South Facility Wyoming State Penitentiary, WY Department of Administration and Information, 2016
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STATE OF WYOMING Matthew H. Mead Governor DEPARTMENT OF ADMINISTRATION AND INFORMATION Construction Management Division 700 West 21st Street Cheyenne, WY 82002 Phone: (307)777-7769 Dean Fausset Director Mel Muldrow Administrator Members of the Task Force: Per your request, the following is a summary of information and a timeline of events related to the construction of the South Facility at the Wyoming State Penitentiary: Key Players ● State Entities ○ State Building Commission: oversight entity/ all contracts in SBC name ○ Governor: Jim Geringer (chief of staff: Rita Meyer) ○ Dept. of A&I ■ Art Ellis & Frank Galeotos: directors (exact dates unknown) ■ Steve Mollenhauer & Mike Abel: A&I General Services Administrators/ SBC secretary (exact dates unknown) ■ Dave LaPlante: lead project manager ■ Ken Burnett: assistant project manager ■ Daniela Lucero: construction clerk ○ DOC ■ Judy Uphoff: DOC director ■ Doug Shope: former DOC facilities manager ● Contractors: ○ High Country ■ dirt work, water lines, some drains ○ KK Mechanical ■ HVAC, sprinklers ○ Intermountain Electric (IME) ■ Site electrical and building electrical ○ CCC Group ■ signs, doors, some windows ○ Mask ■ security, some fencing ○ Custom Fence ■ Security fencing ○ Groathouse: AI.WYO.GOV ■ general construction (but not necessarily general contractor) for south facility, A unit, Central Production Facility (CPF), K unit ■ Project manager: James Mackey, superintendent: Rick Nelson ■ subcontractors: Elco Drilling, Barton Construction, Custom Fence, Mobile Concrete, others to be determined ○ Kloefkorn/ Ballard: ■ general construction (admin/ warehouse building only) ● Design Professionals ○ Plan One (south facility including A unit, not CPF/ K unit) ■ Subcontractors: Terracon (soils testing, etc.), Bay & Lower (structural), others to be determined ■ Lead design: Skip Young ○ Tobin (CPF/ K unit) ■ Subcontractors: to be determined ○ Terracon ■ Geo-tech (generally subbed out, but some direct contracts with SBC) ● Bonding/ Funding Entities ○ Wyoming Building Corporation (WBC): quasi-public facility lessor, site lessee, funding source (i.e. floated bonds to finance construction) ○ Hanihen Imhoff: investment/ bonding team: (also local teams) ○ Kutak Rock: bond counsel (also some local counsel) ○ Wyoming Bank & Trust: trustee/ depository of various bonds and available construction funds Key Dates: ● October 1977: BLM grants 640 acres to State for development of penitentiary ● 1980: north facility opens (housed about 500 medium security inmates) ● Late 1980s/ Early 1990s (approximate): State sued by federal Bureau of Prisons for prison conditions at north facility ● Late 1980s/ Early 1990s (approximate): SBC sues design professional of north facility ● Early/ Mid 1990s (approximate): re-grouting project undertaken to repair structural issues at north facility, due to spread footing/ pad design ● October 1995: initial bond counsel & investment bankers’ correspondence with details of lease revenue bond financing, for south facility construction ○ State will convey title to facilities to public nonprofit corporation (separate entity from State), which would then lease facilities back to State ○ State must make periodic rent payments subject to appropriations ○ Corporation will issue certificates of participation (through indenture of trust) in amount equal to sale price, secured by interest on the facilities AI.WYO.GOV ● ● ● ● ● ● ● ■ Trustee would be assignee of all rights of corporation, and administer the financing program/ collateral ■ If default, State would have to vacate leased facilities December 1995: DOC contracts with Criminal Justice Institute for study of prison needs & capacity ○ Study finds north facility has expanded beyond capacity/ outside of safe operating conditions ○ Many inmates housed out-of-state at high costs to the State March 1996: legislature appropriates $41.7 million for new construction, per section 300(b)(i) of budget bill October 1996: SBC contracts with Plan One for design services at south facility December 1996: letter from Plan One to Director Uphoff, explaining information from soils report ○ Handwritten notes: “Existing prison is spread or pad type [foundation] we don’t recommend” February/ March 1997: because of proposed lease bond revenue financing, legislature removes $41.7 million appropriation for new construction October 1997: letter from Plan One to LaPlante w/ copy of Terracon proposal for soils testing ○ Plan One recommends go-ahead, question of direct billing v. subcontracting ○ Scope of services: evaluate subsurface soil & groundwater conditions, provide recommendations for foundations, slab, and dirt work October 1997: original Terracon soils report prepared for Plan One ○ Geo-tech report & recommendations for subsurface soil/ groundwater/ bedrock conditions, foundation/ floor slab/ pavement design & construction, lateral earth pressures, earthwork, and drainage ○ 23 test borings drilled with groundwater, bedrock & soil testing ○ “Site appears suitable for proposed construction” but expansive bedrock & soils “will require particular attention in the design and construction” ○ Grade beam/ drilled pier foundation recommended ○ Structurally independent slabs may lessen floor movement due to bedrock moisture changes ○ If owner selects slab on grade, recommends fill of non-expansive soil & gravel, isolation joints, contraction joints, and isolation of partition walls ○ Also contains recommendations for surface drainage (including grading) gutters with 10 foot offset for gutters/ sprinklers, no planters, etc. ○ Recommends Terracon review final design specs for geo-tech issues AI.WYO.GOV ● November to December 1997: SBC retains investment bankers and private bond counsel for lease bond revenue financing ● December 1997 to January 1998: SBC selects trustee, approves draft legislation, approves $47.36 million in lease bond revenue financing (approximately $5million in capitalized interest), prepares legal documentation for various entities ● February 1998: dirt work addendum from Plan One, includes moisture control ● February to April 1998 (approximate): legislature approves prison bill for lease bond revenue financing, WBC formed, bonds advertised/ rated/ underwritten ● March 1998: LaPlante hired as A&I’s lead project manager ○ Dave LaPlante required to: (1) act as A&I’s on-site project representative; (2) review all quality and technical issues with A&I and design professionals; (3) review all inspection reports, pay applications and other correspondence with A&I and design professionals; (4) attend pay application meetings; and (5) provide written progress reports as requested by A&I. ○ LaPlante was primary State contact point for all construction and design issues. A&I’s directors/ administrators had a lesser degree of involvement with day-to-day issues ○ SBC required change order approval/ escalation for higher amounts through LaPlante, A&I director, then governor ● March 1998 (approximate): HB0054 signed, approving lease bond revenue financing for south facility ○ Background info: Existing north facility designed for only 541 inmates, but total statewide prison population of 1,286 as of February 1998 ○ Statement of intent: relating to leasing of correctional facility, authorizes SBC to approve the formation of a Wyoming nonprofit corporation from which the State may lease prison facilities ○ Authorizes DOC, subject to SBC approval, to execute a lease agreement with a private party to obtain use of prison facilities ■ DOC cannot pledge state’s full faith/credit for lease payments ■ Lease obligations for State can be terminated if no appropriation ■ Lessor will be a nonprofit corporation, separate from the State, but its organization is subject to SBC approval ■ Bond financing scheme subject to independent consultant’s review ● March 1998: public AG opinion issued on financing plan, concludes WSP financing/ legislation did not create an unconstitutional public debt ○ SBC would approve the formation and an initial, self-perpetuating board of directors of the WBC, a nonprofit entity AI.WYO.GOV ● ● ● ● ● ● ● ○ State would continue to own the land for the new facility, which would be leased to the WBC for a 24-year term. ○ The WBC would float 20-year bonds for approximately $72 million in WSP construction costs. ○ The SBC (through A&I) would construct/ equip WSP for a fixed price, as part of a construction agreement with WBC ○ WBC would own the WSP facilities, and lease the facilities to the State for 19 years subject to a non-appropriation clause. ○ The WBC would use its lease payments to service the bond debt and purchase general liability insurance. ○ After 19 years, the State could exercise an option to purchase the WSP facilities. March 1998: bid packages opened for south facility, No. E-0144A-I ○ $44.7 million total (with 5% contingency) ○ Dirt work split into phases, Phase I package bid in Feb. 1998, Phase II bid later April 1998: SBC approves WBC articles of incorporation & initial organization, selects board of directors ○ WBC acts as a public benefit corporation under W.S. 17-19-1804 ○ Upon dissolution, all assets go to the State ○ State’s default may result in foreclosure on leased facility ○ Substantial completion set for October 2000 May 1998: Groathouse provides proof of liability insurance ($2 million general, $5 million umbrella) May 1998 (approximate): dirt work at south facility begins May 1998 (approximate): WBC/ SBC facility lease executed ○ WBC pays taxes, utilities, general liability insurance ○ State pays rent, provides public liability insurance ○ WBC holds title, but State can modify/ remodel at its own expense ○ Standard State non-assignment/ destruction/ sovereign immunity clauses May 1998 (approximate): WBC/ SBC site lease executed ○ Begins at date of execution, terminates October 2023 (bond maturity date), subject to early purchase option or default ○ Standard state right of entry/ destruction/ sovereign immunity clauses ○ WBC pays rent, also provides general liability insurance May 1998 (approximate): WBC/ SBC agreement to construct executed ○ WBC= facility owner ○ SBC= general contractor & site owner AI.WYO.GOV ■ SBC required to construct improvement on land, acquire/ install improvements, meet completion dates, process change orders if no material adverse effect to value ● SBC must require 1 year warranty period from subcontractors (i.e. prime contractors) ● SBC assigns rights to proceeds from bonding claims to WBC ● SBC requires subcontractors to carry builder’s risk insurance until WBC insures for these purposes ● WBC can enforce construction contracts if necessary ■ As consideration for improvements of prison, WBC has paid SBC $55 million from 1998/ 2000 bonds, will pay additional $8.5 million from 2001 bonds (but actual issue closer to $50.4 & $12.9 million) ■ SBC can request payment (if lien waiver) as project proceeds ■ If default, State consents to use of leased property as a private prison ● May/ June 1998: SBC contracts with various prime contractors executed ○ IME: $3.5 million for electrical services ○ Custom Fence: $1.3 million for fencing ○ Kloefkorn- Ballard: $ 3.4 million for general construction of admin./ warehouse buildings ○ Groathouse: $13.95 million for general construction of south facility (including Pod A later via change order) ○ KK Mechanical: $7.95 million for mechanical work for south facility & admin./ warehouse buildings ○ High Country Construction: $1.058 million for rough grading, dirt work, construction of building pads/ roads ○ Mask Systems: security systems (not bid until July 1998) ● June 1998: first agreement to construct between SBC/ WBC executed ○ SBC will construct improvements/ acquire & install equipments promptly, in exchange for payment from construction account ○ Requires performance & payment bonds from all subcontractors (i.e. prime contractors), also contains insurance requirements ○ Pre-construction design services complete, paid from State funds but will be reimbursed to State from portion of bond funds ● June 1998: $50.4 million in AAA-rated bonds issued to fund construction+ design of south facility ○ Several funds created, including construction fund with project account ○ Bond issue secured by interest in leased property (total of 16 acres leased) ○ 404 bed facility of around 170,000 sq. ft. ○ All bids finalized except finish site work (security, etc.) AI.WYO.GOV ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ○ No GMP set for primes’ contracts ○ SBC will use standard construction contracts, builder’s risk insurance required ○ WBC holds general liability/ public liability insurance for leased property ○ State required to pay attorneys’ fees for certain WBC litigation June 1998: prime contractors mobilize on site, i.e. build phase begins July 1998: correspondence from investment bankers to A&I ○ WBC’s EIN 83-0322325 established under “governmental organization” ○ $50.4 million in tax-exempt bonds issued that month, approximately $44 million on deposit with trustee for paying construction costs, etc. July 1998 (approximate): some (most?) piers completed at south facility August 1998: formation of grade beam for C/D/E units Fall 1998 (approximate): floor slabs poured/ some foundation work continues September 1998: inter-agency A&I memo re: deductible for builder’s risk insurance ○ appears as though State holds E&O insurance on project ○ but no reference to policy number/ insurer October 1998: letter from Lower to LaPlante re: foundation system ○ Drilled piers used b/c shallow bedrock & expansive soil conditions April 1999: $3.5 million in general funds appropriated (during build phase) for taut-wire fence and re-lighting June 1999: Plan one design contract amended for additional testing services through Terracon (original amount maxed out) June 2000 (approximate): legal survey/ title search conducted, no issues August 2000: SBC contracts with Tobin for $408k in design services for CPF facility August 2000: south facility 98% complete, admin/ warehouse building 100% complete September 2000: certificate of occupancy issued for South Facility October 2000: design stage for CPF begins, construction will begin early spring 2001, substantial completion set for April 2002 October 2000: change order log for Groathouse completed ○ Includes additional $6.5 million for Pod A construction ○ Final amount: $22 million February/ March 2001: $9.13 million appropriated for CPF, and $994k appropriated to rehab water service to bring new buildings online March 2001: SBC contracts directly with Groathouse for general construction of CPF, $8.023 million April 2001: substantial completion of south facility AI.WYO.GOV ● April 2001: SBC contracts directly with Terracon for soil testing/ inspection services at CPF ● May 2001: certificate of occupancy issued for admin/ warehouse building ● May 2001: WBC/ SBC agreement to construct amended (second time) to reflect new construction/ additional projects ● July 2001: all inmates moved from north facility, study of that facility commences ○ North facility fully vacated at this time aside from kitchen/ laundry ● December 2001: North facility study completed & presented to legislature ○ Prepared by Plan One, in association with Criminal Justice Solutions, Rosser, Lower & Co., TST Consulting Engineers, Terracon, and Groathouse ■ Prepared for DOC/ A&I (and ultimately legislature) to determine whether to repair or abandon facilities ■ Looks at structural integrity, life safety, security, overall systems, and compliance issues ○ Difficult to staff additional facility at Rawlins for projected inmate populations ○ Numerous geo-tech & structural problems ■ Slab on grade floors in fair condition (except in mechanical rooms, poor condition there) ■ High failure rate for buried metals (reactive soils) ■ Very poor, sometimes non-existent internal drainage systems ■ Could overall be rehabilitated with full replacement of mechanical room slabs (including structural fill) & drainage systems ■ Significant deterioration of ceiling and floor tiling, cracked interior masonry walls, total failure of precast exterior walls ○ Numerous code violations, window & door leaks, etc. ○ Plumbing/ HVAC/ electrical systems in fair to good condition ○ Overall poor to fair condition assessment ■ Full renovation to bring buildings up to code, etc.: $89 million ● January 2002: letters from LaPlante to Director Uphoff re: reinforcement & structural issues at south facility ○ Lower found non-structural issues in corridors 165, 183 and cell H-130 ○ LaPlante concerned about slab curl in gym (where floor is bonded to grade beam at south end), Lower diagnoses as “differential curing strain,” ○ No major issues found with rebar/ reinforcement testing ● August 2002: certificate of occupancy issued for CPF ● August 2002: CPF opened, north facility kitchen/ laundry vacated ● January 2003: Governor Freudenthal sworn in (replaces Gov. Geringer) AI.WYO.GOV ● December 2003 (approximate): GSG contracted for K Unit design services ● February/ March 2004 (approximate): WSP bonds paid off by State ○ State had $1.2 billion surplus in mineral tax funds at this time ● Early 2004 (approximate): design phase for K Unit begins ● May 2004: WBC registered as “inactive” with Secretary of State ● 2003 or 2004 (approximate): some windows began cracking ○ Floor slabs heaving, but superstructure not moving ● May 2008: south facility architect’s professional liability insurance expires ○ i.e. end of claim deadline under extended discovery period ○ DPIC policy no. PPL878581 ● 2010 (approximate): cracks observed on exterior stucco (EFIS) ● December 2011: Gym wall stress fractures noted by WSP staff to WDOC central office and A&I ● December 2011: structural engineer (Lower, P.C.) contacted to visit the site & evaluate the situation ● December 2011: Lower, P.C. engineer submits site observation report to DOC ● July 2012: Lower, PC. engineer visits WSP for an additional observation of continued cracking ● August 2012: Lower, P.C. engineer consults with Terracon engineer regarding movement in the Gym ● August 2012: Discussions with Terracon regarding soil borings within the building in the area of the cracking ● October 2012: Soil borings initiated inside the building ● January 2013: Terracon recommends a baseline survey for the facility to monitor movement over time ● January 2013: Terracon Geo-tech report on October 2012 borings submitted ● January 2013: Cracking observed in the K unit (constructed in 2005-06), GSG Architecture contacted by WSP, who then contacted the structural engineer on that project, S.A. Miro. ● March 2013: S.A. Miro responds with findings ● May 2013: Terracon site visit to observe further cracking issues ● July 2013: Building survey plan developed ● August 2013: N.T.P. issued 8-16-13 to Coffey Engineering for WSP surveying ● September 2013: Discussion with Terracon regarding groundwater monitoring wells ● October 2013: Terracon drilled and completed three monitoring wells at WSP ● October 2013: Design contract for drainage correction project ● December 2013: Terracon Groundwater study submitted to WDOC ● January 2014: Lower Co. submits cost estimate for drainage correction work AI.WYO.GOV ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● February 2014: Bid advertisement for WSP drainage correction work February 2014: Cracking observed in the “A” Unit area February 2014: Terracon/lower Co. forwarded photos of cracking in area “A” February 2014: Lower Co. scheduled for site observation of “A” unit cracking March 2014: Coffey Engineering contract amended to continue site survey at WSP March 2014: certain sewer lines videotaped for breaks March 2014: Began discussion/ investigation of soil stabilization potential at WSP March 2014: Bid results in for drainage correction work, only 1 bid April 2014: Conference call with CST to discuss potential soil stabilization techniques at WSP August 2014: A Pleasant under contract for drainage correction work at WSP August to November 2014: A Pleasant construction work proceeds on certain courtyards/ side of facility November 2014: Work shutdown due to winter conditions December 2014: Wall/beam support issue identified in certain corridor December 2014: Lower Co. site inspection of certain corridor wall/beam support issue December 2014: Lower Co. observation report of certain corridor issue December 2014: Contact made with Martin/Martin Wyoming for possibility of third party validation of what A&I/ DOC were finding at WSP December 2014: Received design recommendations from Lower Co. regarding the certain corridor issue January 2015: Meeting with Martin/Martin to discuss their proposal for structural investigation of the South Facility January 2015: Martin/Martin engineers visited the facility for a tour of the affected areas February 2015: A&I requests assistance from AG representatives February 2015: Discussion begins about destructive testing in certain areas of WSP to determine the cause(s) of the damage March 2015: Terracon engineers at WSP for site observations March 2015: Martin/Martin continue to review WSP reports and documentation April 2015: Destructive testing starts at WSP May 2015: Discussions regarding destructive testing at WSP to include: additional areas and selected pier testing June 2015: Additional destructive testing at WSP July 2015: Door & Window issues become a growing issue at the facility July 2015: Concerns with certain control room voiced to structural engineer by J. Heier AI.WYO.GOV ● July to August 2015: Discussions begin with a detention contractor regarding potential repairs to security doors and windows ● August 2015: Discussions with DOC regarding repairs to other systems, fireproofing, etc. caused by the continued movement ● August 2015: Proposal received for door and window repair from detention contractor. Being reviewed by DOC, A&I and State Fire Marshal’s office. ● September 2015: Additional soil samples taken from inside the facility to determine the swell potential of the soils under the affected areas ● September 2015: Discussion and contract negotiations begin with UL regarding door & window design & repair at WSP ● October 2015: A&I contracts with CTL Thompson for soils testing ● November 2015: Roof repairs made over the certain control room to insure roof membrane integrity over the winter. ● November 2015: Cost Estimator engaged by Martin/Martin to establish preliminary repair estimate for the facility ● December 2015: Martin/Martin WSP Structural report received ● December 2015: full review of 80-100 archived “bankers’ boxes (original WSP construction/ project documents) begins ● December 2015 through January 2016: review of report by DOC and A&I. ● January 2016: Report findings to SBC. Presentation to SBC by John Lund, Martin/Martin ● March 2016: Senate File 0091/ SEA0054 enacted (state penal facilities review) ○ Creates temporary task force to analyze/ recommend overall solutions for WSP structural problems and related inmate housing issues. ● March 2016: Structural engineer site visits to view new areas of DOC concern ● March 2016: Discussion regarding placement of permanent survey benchmarks at the WSP site to insure accurate survey data for ongoing monitoring of movement ● March 2016: AG’s office contracts with Martin/ Martin for non-testimonial consulting services ● Apr. 2016: Water monitoring wells measured AI.WYO.GOV