3.B.
San Luis Facility Development Corporation
- Meeting Date:
- 04/09/2019
- Department Head:
- Janet Taylor
- Submitted By:
- Janet Taylor, Legal Secretary, Attorney's Office
ITEM:
Discussion and possible action on any and all matters regarding Request for Proposals for Operations. (Kay Marion Macuil, Corporation Attorney)
SUMMARY:
The operating agreement with LaSalle Corrections expires December 1, 2019.
Background
The San Luis Facility Development Corporation has never separately solicited bids for operators. At the start of the project, SLFDC sent out a Request for Qualifications for design-build-operator. Only one written response was received. The first operator Civigenics was part of that package design-build-operate contract. In March of 2007, Civigenics began operating after the construction was complete. Also in 2007, CEC bought out Civigenics. The contract with CEC/Civigenics ended. In 2009, the acting City Manager negotiated a contract with Emerald without an RFP. SLFDC approved the contract. Emerald was the operator during the expansion, which began occupancy in April of 2012. Sam Youngblood purchased Emerald's stock and changed ownership. The Youngblood management took over in January of 2015. Due to low occupancy in the detention center, the Board negotiated and entered into a forbearance agreement on the bond payments in 2016. As part of this agreement changes were made to the operating agreement. Then, Emerald left suddenly in April of 2017, and LaSalle agreed to assume the Emerald contract and the Board approved. The Trustee ended the forbearance agreement which triggered the termination of the operating agreement. In 2018, SLFDC approved a one-year negotiated contract with La Salle.
The Market
There are only four (4) known detention facility operators. LaSalle Corrections, MTC, Core Civic (formerly CCA) and GEO.
For Board Consideration
With the operating agreement with LaSalle expiring December 1, this item is to give the Board the opportunity to discuss and act on whether it would like to go out to bid to allow all potential operators to submit proposals for the Boards consideration. The SLFDC has owned and operated the facility for twelve (12) years and has had, for all practical purposes, five (5) different managements of the managing operator without seeking bids other than the original one in 2004/2005. A draft request for proposal is attached.
For Board Consideration
With the operating agreement with LaSalle expiring December 1, this item is to give the Board the opportunity to discuss and act on whether it would like to go out to bid to allow all potential operators to submit proposals for the Boards consideration. The SLFDC has owned and operated the facility for twelve (12) years and has had, for all practical purposes, five (5) different managements of the managing operator without seeking bids other than the original one in 2004/2005. A draft request for proposal is attached.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE THE REQUEST FOR PROPOSAL AS PRESENTED.