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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:

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■ 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
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■ 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

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● 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

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○ 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

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■ 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.)

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○ 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

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● 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)

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● 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

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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

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● 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

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