HomeMy WebLinkAboutAgenda - 09-06-2016 - 7-a - Agreement with United States Marshals Service on Federal Inmate Reimbursement 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 6, 2016
Action Agenda
Item No. 7-a
SUBJECT: Agreement with United States Marshals Service on Federal Inmate
Reimbursement
DEPARTMENT: County Manager and Sheriff
ATTACHMENT(S): INFORMATION CONTACT:
Sheriff Blackwood, 919-245-2308
Bonnie Hammersley, 919-245-2300
PURPOSE: To authorize the County Manager and other appropriate County officials to execute
an agreement with the U.S. Marshals Service for housing federal inmates in the Orange County
Detention Facility from a current reimbursement rate of $66 per day to a negotiated rate of $93
per day for a term of three years.
BACKGROUND: The Orange County Sheriff has historically provided secure housing for
federal inmates under a contract with the U.S. Marshals Service. The Marshals Service is
responsible for housing and transporting federal prisoners from the time they enter federal
custody until they are either acquitted or convicted and sentenced to a designated federal
Bureau of Prisons facility. During the time that court proceedings are underway, the Marshals
Service relies on state and local governments to provide secure housing for federal prisoners.
The Marshals Service reimburses these state and local detention facilities for the cost of
housing based on facility costs and other factors through a negotiated rate determination
process. A reimbursement rate of$66 per day has been in place since 2008.
The County engaged a consultant to determine the daily cost of housing an inmate in the
Orange County detention facility. That cost study calculated daily cost of housing an inmate to
be $111.02 based on FY 2015 costs to operate the detention facility. This rate was submitted to
the U.S. Marshals Service to begin the negotiation process. Although the initial rate offer from
the Marshals Service was $77 per day, staff was able to negotiate a final rate of $93.00 per day
for a period of three years. Near the end of that initial three year term, the County may submit a
request to renegotiate the rate based on the cost of housing at that time. Given the current
construction schedule for the new detention facility, the County will likely have a different cost
profile by that time in the new facility.
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The primary reason the Marshals Service did not authorize a full cost reimbursement rate is due
to the rates being paid to other counties in the region. Alamance County is receiving $66 per
day. Person County is paid $55 per day. Caswell receives $60.05 per day, and Durham is
compensated at $52 per day.
The total amount of revenue collected from housing federal inmates depends on the daily rate
and the number of inmates housed during the fiscal year. The number of federal inmates
housed in the jail has been declining in recent years from an average daily population of 66 in
2012 to an average daily population of 37 for FY 2015-16. The Sheriff's Office believes that the
average daily population will stabilize at approximately 35 federal inmates per day. Assuming
an average daily population of 35 federal inmates, the County will receive approximately $1.19
million in total revenue or an increase of $345,000 over a twelve month period compared to the
current rate of$66 per day.
FINANCIAL IMPACT: The FY2016-17 Budget contemplated an increase in revenue, so no
additional action is required to adjust revenue projections.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to
this item:
• GOAL: CREATE A SAFE COMMUNITY
The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang
activity, substance abuse and domestic violence.
Assisting the U.S. Marshals Service in housing federal inmates promotes public safety and the
efficient operation of the criminal justice system.
RECOMMENDATION(S): The Manager recommends that the Board authorize the County
Manager and other appropriate County officials to execute a contract with the U.S. Marshals
Service to house federal inmates at a daily rate of $93 for a term of three years pending final
contract review by the County Attorney.