Carl Neusel, Undersheriff and Interim Chief of Correction

Transcription

1 County of Santa Clara Department of Correction DATE: February 28, 2017 TO: FROM: Board of Supervisors Carl Neusel, Undersheriff and Interim Chief of Correction SUBJECT: Inmate Welfare Fund and Inmate Services RECOMMENDED ACTION Consider recommendations relating to the Inmate Welfare Fund (IWF) and inmate services. (Sheriff's Office and Department of Correction) Possible action: a. Receive report relating to the fiscal implications of eliminating commissary commissions and moving IWF expenditures to the General Fund. b. Approve recommendation by the Finance and Government Operations Committee (FGOC) to eliminate commissary commissions and move all salary, program, and service costs currently funded by the IWF to the General Fund; and approve proposed budget modifications to the IWF Fiscal Year (FY) 2017 Modified Financial Plan to allow use of the IWF's fund balance to support the elimination of the County's commissary commissions beginning March 1, c. Provide direction relating to the IWF's fund balance for FY d. Approve recommendation by the FGOC to move forward with Requests for Proposals for inmate services, which includes inmate telephone services, tablet computers for inmates, and commissary services. e. Provide direction relating to a two-year extension of the Commissary Services Contract. COMMITTEE RECOMMENDATIONS The Finance and Government Operations Committee (FGOC) considered this item on January 26, 2017 and made a favorable recommendation to forward to the Board of Supervisors for consideration. FISCAL IMPLICATIONS Recommended Action A and B: Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian Page 1 of 9

2 An itemized line item budget for IWF is attached, along with a breakdown of the amount of impact to the General Fund in the attachment, IWF Analysis. For FY 2017, approval of the recommended actions would decrease Inmate Welfare Fund (IWF) revenues for 2017 by approximately $551,500 from $2,000,000 to $1,448,500. This is a reduction in commissary commissions from March 1, June 30, 2017 and is outlined in the attachment, FY 2017 IWF Financial Plan. Since IWF revenues comes in at an uneven pace, with Thanksgiving and Christmas being the high points during the year, the reduction of IWF commissary commissions from March 1- June 30, 2017 would be less than a quarter of the total revenue. On October 26, 2016 the Inmate Welfare Fund Committee (IWFC) approved shifting the following items from the IWF to the General Fund beginning January 1, 2017: Commissary Staff: $394,202 Incentive Beverages: $10,000* Incentive Meals: $80,000* *Incentive Beverages and Meals cost is prorated for FY The ongoing cost of this expense will be $180,000. This will have a total impact of $484,202 on the General Fund for FY The Sheriff s Office and Department of Correction (SO/DOC) will work with the Office of Budget and Analysis (OBA) to bring forward the appropriate budget actions through an F85 as soon as possible following the Board s consideration. By reducing the IWF revenues and expenditures to zero in FY 2018, the anticipated ongoing impact to the General Fund would be approximately $2.3 million annually to maintain programs and partial positions currently funded through the IWF. The SO/DOC will work with OBA to incorporate this into the SO/DOC base budget for FY Recommended Actions C, D, and E: There are no current fiscal implications associated with the recommended actions. Future fiscal implications will be brought to the Board for consideration. CONTRACT HISTORY Commissary Services Contract: Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian Page 2 of 9

3 On June 24, 2014 the Board of Supervisors approved an Agreement with Aramark Commissary Network for the provision of commissary services in the jail facilities for period July 1, 2014 through June 30, 2017, with the option to extend for an additional two years. Inmate Telephone Services Contract: Under delegation of authority from the Board of Supervisors, the Chief of Correction entered into an Agreement with Global Tel Link (GTL) Corporation for the provision of inmate telephone services in the jail facilities for period December 1, 2010 through November 30, The Agreement was subsequently amended three times to amend the telephone rates and services, and extend the end date to November 15, REASONS FOR RECOMMENDATION On January 26, 2017, the FGOC considered recommendations presented by the SO/DOC to revise the delivery of inmate services to align with services that should be provided by a 21 st century jail. The recommendations also coincide with the Board President s Year of Compassion, by lowering the cost for inmates and inmates families to obtain telephone and commissary services. The goal of reduced prices is to have an impact on recidivism by increasing an inmate s ability to remain in contact with their families and support network while they are incarcerated so they can plan for discharge and reintegration into the community, with the ultimate goal of reducing recidivism. Recommended Actions A and B: On January 26, 2017, the FGOC considered the recommendations presented by the Sheriff s Office and Department of Correction (SO/DOC) and made recommendations to: (1) Renegotiate the current Agreement with Aramark Commissary Network to eliminate commissary commissions and obtain the lowest possible commissary prices based on a break-even proposition that allows full cost recovery with no profit. (2) Backfill all IWF salary, program, and service expenditures with the General Fund. (3) Provide information regarding the fiscal implications to the IWF and General Fund if commissary commissions are eliminated. In an effort to facilitate immediate relief to inmates and their families through the reduction of commissary prices, the SO/DOC recommends using the IWF s FY 2017 fund balance to offset the cost of eliminating commissary commissions starting March 1, The IWFC established a subcommittee to review jail reform recommendations concerning the IWF and IWFC. The subcommittee specifically reviewed the recommendation to reduce commissary prices and concluded, "In response to BRC recommendations related to the commissary, the IWFC should direct staff, to the extent possible, to minimize prices while maintaining or maximizing the income for the fund when negotiating a vendor contract for the SCC jail." The recommended actions will accomplish the reduction in prices while maintaining programming with a General Fund allocation. Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian Page 3 of 9

4 If commissary commissions are eliminated beginning March 1, 2017, commissary prices would immediately be reduced by 50%. However, the SO/DOC has also worked with the current contractor for an additional reduction in the sale price of items by an overall total reduction of 52.5%. Additionally, icare packages friends and families of inmates can purchase will be reduced in sale price by an overall total of 37%. Recommended Action C: If Recommended Action B is approved, IWF would have no projected expenses for FY 2018 and would have an ending fund balance for FY 2017 of approximately $1.5 million, as demonstrated in the attachment, IWF Analysis, and delineated under the FY 2017 Modified Plan 2/28/2017. Use of the fund balance is limited to allowed expenditures pursuant to Section 4025(e) of the California Penal Code. The options the Board may consider are as follows: (a) Refer the matter to the IWF Committee for a decision, provided the planned expenditure is in compliance with Section 4025(e) of the California Penal Code; OR (b) Refer the matter to the Sheriff or Chief of Correction for a decision during the FY 2018 budget process, provided the planned expenditure is in compliance with Section 4025(e) of the California Penal Code; OR (c) Direct the SO/DOC to use the fund for a specific purpose, such as the acquisition of inmate tablet computers, provided the planned expenditure is in compliance with Section 4025(e) of the California Penal Code. Currently, IWF contains interest income revenue, which must remain in the IWF. The SO/DOC will provide an update on the remaining funds in IWF during the FY 2018 budget process. The SO/DOC recommends the fund balance be utilized to establish a Vocational Training Fund in FY This will allow the SO/DOC to procure equipment that can be utilized to provide all inmates with the opportunity to gain a skill while they are in custody that can lead to employment at reentry. The SO/DOC would work with the IWF Committee to prepare a budget proposal for FY 2018 for the Board s review to establish a Vocational Training Fund. Currently, an Associate Management Analyst serves as the IWF Manager and works exclusively on IWF-related issues. This position would continue to manage inmate program and service contracts, commissary services, invoicing, and inventory. The position would also be utilized to assist with developing an Inmate Vocational Program. Recommended Action D: Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian Page 4 of 9

5 On January 26, 2017, the FGOC considered the recommendations presented by the SO/DOC and approved moving forward with an RFP for telephone services with the following objectives: (1) The best value to the County in the form of an inmate telephone security system and security support, including call monitoring, call recording and storage, and call recording management and retrieval system. (2) The lowest possible per-minute inmate telephone call cost. (3) No IWF commission. (4) The lowest possible called party costs. (5) Full cost recovery only. (6) No County subsidy. FGOC also approved moving forward with the procurement of tablet computers that include the following selection criteria: (1) County revenue neutral. (2) Lowest possible inmate or other payer cost model for these services. Staff will work with Procurement to release an RFP that allows companies to meet the County s stated objectives and to bid on one or both components. Recommended Action E: Since the current contract with Aramark Commissary Network will expire on June 30, 2017, staff will vigorously renegotiate the contract to lower prices even further beginning July 1, Staff will also draft a two-year extension with Aramark to lock in the reduced prices while we study alternative models and prepare an RFP for commissary services. CHILD IMPACT The recommended action will have no/neutral impact on children and youth. SENIOR IMPACT The recommended action will have no/neutral impact on seniors. SUSTAINABILITY IMPLICATIONS The recommended action will have no/neutral sustainability implications. BACKGROUND Commissary Services Commissary services are provided to inmates to give them the opportunity to obtain food, beverage, and other items that would otherwise not be available to them through the jails. Section 4025 of the California Penal Code authorizes the establishment, maintenance, and operation of a commissary store, but does not mandate it. Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian Page 5 of 9

6 Commissary Commissions Prices for commissary items are negotiated during contract negotiations. Once an agreement on pricing is reached, IWF staff negotiates the commission rate IWF would receive. It must be noted that the commission rate is not added to the agreed upon cost of a commissary item. Instead, it is simply deducted from the sale price. For example, if the agreed upon price of an item is $1, staff would negotiate how much of that amount would go to IWF. If the agreed upon commission rate is 50%, then $0.50 would go to IWF and $0.50 would go to the contractor. The contractor would then have to absorb all costs for providing commissary services such as the product, labor, and packaging costs from their $0.50 share of the sale price. Currently, the contractor and the IWF Commission are each 50% of the sale price. The SO/DOC are proposing this be reduced effective March 1 st to the IWF Commission at 0% and the contract receiving 100% of the sale price, but the overall sale price to inmates would be reduced by an overall total of 52.5%. Below are tables demonstrating the current commission structure and proposed structure to take effect March 1, 2017: Price of Commissary Item $ 1.00 IWF Commission $ % Sales Tax (if applicable)* $ 0.09 Contractor $ 0.50 Amount Inmate Pays: $ 1.09 Proposed Price of Commissary Item $ 0.50 Proposed IWF Commission $ % Sales Tax (if applicable)* $ 0.04 Proposed Contractor $ 0.50 Amount Inmate Pays: $ 0.54 * Sales tax is applicable on all non-food commissary items. IWF Funding Sources Pursuant to Section 4025 of the California Penal Code, the following shall be deposited in the Inmate Welfare Fund (IWF): (1) All profits from the sale of articles to inmates; (2) Ten percent (10%) of all gross sales of inmate hobby craft; (3) Any money, refund, rebate, or commission received from a telephone company or pay telephone provider when the money, refund, rebate, or commission is attributable to the use of pay telephones used primarily by inmates while incarcerated; and (4) Interests earned from depositing or investing any part of the IWF in excess of that which the treasurer deems necessary for immediate use. Use of the Inmate Welfare Fund Pursuant to Section 4025(e) of the California Penal code: (1) The money and property deposited in the inmate welfare fund shall be expended by the sheriff primarily for the benefit, education, and welfare of the inmates confined within the jail. (2) Any funds that are not needed for the welfare of the inmates may be expended for the maintenance of county jail facilities. Maintenance of county jail facilities may Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian Page 6 of 9

7 include, but is not limited to, the salary and benefits of personnel used in the programs to benefit the inmates, including but not limited to, education, drug and alcohol treatment, welfare, library, accounting, and other programs deemed appropriate by the sheriff. (3) Inmate welfare funds shall not be used to pay required county expenses of confining inmates in a local detention system, such as meals, clothing, housing, or medical services or expenses, except that inmate welfare funds may be used to augment those required county expenses as determined by the sheriff to be in the best interests of inmates. Oversight of the Inmate Welfare Fund: Pursuant to Section 4025(e) of the California Penal Code, The money and property deposited in the inmate welfare fund shall be expended by the sheriff primarily for the benefit, education, and welfare of the inmates confined within the jail. Pursuant to Section 4025(f) of the California Penal Code, The operation of a store within any other county adult detention facility which is not under the jurisdiction of the sheriff shall be governed by the provisions of this section, except that the board of supervisors shall designate the proper county official to exercise the duties otherwise allocated in in this section to the sheriff. In Santa Clara County, the decision on how IWF should be expended is made by the IWF Committee (IWFC) which reports to the Board of Supervisors through the Public Safety and Justice Committee. Pursuant to the Rules of the Santa Clara County Inmate Welfare Fund Committee, the committee shall be composed of the following nine members representing the following areas, as directed by the Board of Supervisors: (1) Chief of Correction (2) Assistant Sheriff (3) Main Jail Complex Commander (4) Elmwood Complex Commander (5) Support Services Commander (6) Administrative Commander (7) Public Defender or designee (8) Custody Health Director or designee (9) One person who is not a County employee and has expertise in working with inmates and inmate programs, unless a person with such expertise is not available, in which case the Chief of Correction shall appoint a person who is interested in the welfare of inmates and is not a County employee. Inmate Telephone Services: Prior to the current Agreement with GTL, the Department of Correction contracted with Securus Technologies. The Agreement with Securus began in Until August 2015, the Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian Page 7 of 9

8 inmate telephone call fees and rates charged for calls placed from the Santa Clara County Jail were unchanged since being established as part of the Securus Agreement in In December, 2010, the Department of Correction executed an Agreement with GTL for provision of Inmate Calling Services (ICS) following completion of a competitive vendor selection process and under a Delegation of Authority to the Chief of Correction. The Delegation of Authority expired on June 30, The Agreement executed with GTL had a term of December 1, 2010 through November 30, 2015 and included terms for two single year extensions at the sole discretion of the County. The Agreement included a table of the specific rates to be charged for calls placed from the jails and established those rates based upon the call destination and the time of the call; evenings and weekends, for example, being less costly than weekdays between 8:00AM and 7:00PM. Additionally, the Agreement established a 61% commission to be paid to the County s Inmate Welfare Fund (IWF) for all revenues generated by inmate telephone calls. Beginning in May 2015, the County began negotiations with GTL to amend the Agreement to extend the term and reduce certain telephone call rates and fees. Effective August 1, 2015 the Agreement with GTL was amended to extend the term of the Agreement through November 15, 2017 to: Add PIN Debit calling in the jails; Change the rates charged for inmate telephone calls to be equal to those charged in the County of San Francisco jails (an overall rate reduction); Reduce certain ancillary fees, along with changes to and addition of certain other terms; Add a pilot program to introduce tablet computers for use by inmates in the jails; and Increase the percentage rate used to calculate IWF commission payments, from 61% to 71% of ICS call revenue. In June 2016, GTL asserted that pursuant to an FCC mandate, it would discontinue the payment of inmate telephone call commission to the IWF. The IWF has not received commission payments from GTL since June 20, CONSEQUENCES OF NEGATIVE ACTION Recommended Action A: The Board would not receive the report regarding the fiscal implications of eliminating commissary commissions and moving IWF expenditures to the General Fund. Recommended Actions B and C: IWF would continue receiving commissary commissions to fund the cost of inmate programs and services. Recommended Action D: The SO/DOC would not be able to move forward with RFPs for inmate services, which includes: inmate telephone services, tablet computers for inmates, and commissary services. Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian Page 8 of 9

9 Recommended Action E: The SO/DOC would not be able to move forward with a two-year extension of the Commissary Services Contract. LINKS: Linked To: : Linked To: : Linked To: : ATTACHMENTS: IWF Analysis (PDF) FY17 IWF Financial Plan (PDF) Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian Page 9 of 9