3.A.
San Luis Facility Development Corporation
- Meeting Date:
- 07/02/2024
- Department Head:
- Kay Macuil
- Submitted By:
- Janet Taylor, Legal Secretary, Attorney's Office
ITEM:
Discussion and possible action on any and all matters regarding options for the operating and management agreement with LaSalle Corrections which is expiring on November 30, 2024. (Kay Marion Macuil, San Luis Facility Development Corporation General Counsel)
SUMMARY:
Backgroud
LaSalle Corrections has been operating the San Luis Regional Detention and Support Center for over seven (7) years since April 2017, when the prior operator left with only a week's notice.
The current agreement with LaSalle started on December 1, 2019, after a request for qualifications process. LaSalle Corrections was the only provider who responded. Under Section 2.01 of the attached Operating and Management Agreement, the agreement ends on November 30, 2024, ending the "Primary Term." The Operating Agreement was changed with the intent that the Operating Reserve/Repair/Contingency Account would be funded. The plan succeeded. As of the writing of this Agenda, there is a balance of $527,281.35 even after replacing aging commercial grade A.C.s and water softeners.
Below is the history of the bed count from January 1, 2019, through May 31, 2024:
2019
AVERAGE = 737
CAPACITY = 84.70%
2020
AVERAGE = 517
CAPACITY = 59.40%
2021
AVERAGE = 572
CAPACITY = 65.80.10%
2022
AVERAGE = 655
CAPACITY = 75.30%
2023
AVERAGE = 542
CAPACITY = 62.30%
January through May 2024
AVERAGE 378.95
CAPACITY = 43.56%
(A graph is attached.)
The Options
(1) Under Sections 2.01 and 2.02, the agreement may be extended to November 30, 2029, if both the Board of the San Luis Facility Development Corporation and LaSalle Corrections agree to extend the agreement before Friday, August 2, 2024.
(2) Under Sections 2.01 and 2.02, the agreement may be terminated on November 30, 2024, if the Board of the San Luis Facility Development Corporation or LaSalle Corrections gives notice to the other of termination before Friday, August 2, 2024, which would allow negotiation of new terms with LaSalle Corporation.
(3) Under Sections 2.01 and 2.02, the agreement may be terminated on November 30, 2024, if the Board of the San Luis Facility Development Corporation or LaSalle Corrections gives notice to the other of termination before Friday, August 2, 2024, which would allow going out for a request for qualifications.
The previous operators (CiviGenics-CEC and Emerald) are no longer in business. Nation-wide, there continue to be only four (4) providers for detention center operations and management:
LaSalle Corrections has been operating the San Luis Regional Detention and Support Center for over seven (7) years since April 2017, when the prior operator left with only a week's notice.
The current agreement with LaSalle started on December 1, 2019, after a request for qualifications process. LaSalle Corrections was the only provider who responded. Under Section 2.01 of the attached Operating and Management Agreement, the agreement ends on November 30, 2024, ending the "Primary Term." The Operating Agreement was changed with the intent that the Operating Reserve/Repair/Contingency Account would be funded. The plan succeeded. As of the writing of this Agenda, there is a balance of $527,281.35 even after replacing aging commercial grade A.C.s and water softeners.
Below is the history of the bed count from January 1, 2019, through May 31, 2024:
2019
AVERAGE = 737
CAPACITY = 84.70%
2020
AVERAGE = 517
CAPACITY = 59.40%
2021
AVERAGE = 572
CAPACITY = 65.80.10%
2022
AVERAGE = 655
CAPACITY = 75.30%
2023
AVERAGE = 542
CAPACITY = 62.30%
January through May 2024
AVERAGE 378.95
CAPACITY = 43.56%
(A graph is attached.)
The Options
(1) Under Sections 2.01 and 2.02, the agreement may be extended to November 30, 2029, if both the Board of the San Luis Facility Development Corporation and LaSalle Corrections agree to extend the agreement before Friday, August 2, 2024.
(2) Under Sections 2.01 and 2.02, the agreement may be terminated on November 30, 2024, if the Board of the San Luis Facility Development Corporation or LaSalle Corrections gives notice to the other of termination before Friday, August 2, 2024, which would allow negotiation of new terms with LaSalle Corporation.
(3) Under Sections 2.01 and 2.02, the agreement may be terminated on November 30, 2024, if the Board of the San Luis Facility Development Corporation or LaSalle Corrections gives notice to the other of termination before Friday, August 2, 2024, which would allow going out for a request for qualifications.
The previous operators (CiviGenics-CEC and Emerald) are no longer in business. Nation-wide, there continue to be only four (4) providers for detention center operations and management:
- LaSalle Corrections,
- GEO Group,
- CoreCivic (who purchased some facilities from CEC), and
- Management and Training Corporation (MTC).
RECOMMENDATION / SUGGESTED MOTION:
Alternative Motions
I MOVE TO RENEW THE OPERATING AND MANAGEMENT AGREEMENT WITH LASALLE CORRECTIONS THROUGH NOVEMBER 30, 2029.
I MOVE TO GIVE LASALLE CORRECTIONS NOTICE OF INTENT TO NOT EXCERCISE THE RENEWAL PROVISION AND ENTER INTO NEGOTIATIONS OF A NEW CONTRACT WITH LA SALLE CORRECTIONS.
I MOVE TO RENEW THE OPERATING AND MANAGEMENT AGREEMENT WITH LASALLE CORRECTIONS THROUGH NOVEMBER 30, 2029.
I MOVE TO GIVE LASALLE CORRECTIONS NOTICE OF INTENT TO NOT EXCERCISE THE RENEWAL PROVISION AND ENTER INTO NEGOTIATIONS OF A NEW CONTRACT WITH LA SALLE CORRECTIONS.