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HomeMy WebLinkAbout65C - BED SPACE US MARSHAL'SREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 1, 2017 TITLE: APPROVE TERMS AND CONDITIONS FOR PROPOSED ADDITIONAL BED SPACE WITH THE US MARSHAL'S {STRATEGIC PLAN NO, 1, 4A} RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on V1 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Approve terms and conditions with US Marshal's for an additional 173 beds for a two-year period and provide direction to staff to return on August 15, 2017 with the necessary budget and staffing plan. DISCUSSION On June 22, 2017, the Police Department met with representatives from the US Marshal's (USM) to discuss their need for additional bed space. Significant renovations are taking place at the Bureau of Prisons (BOP) Metropolitan Detention Center (MDC) in Los Angeles, which affects their ability to house inmates. The renovation work is scheduled to begin in late September 2017 and anticipated to be completed in August 2019. The USM have requested immediate approval to transfer inmates to the Santa Ana Jail under the existing terms of their agreement with the City at the current rate of $105/day. Under the proposal, an estimated 138 inmates would arrive on or after September 1, 2017, followed by an additional 35 inmates over the following three months. The estimated new revenue from these inmates is $5,181,750 for the remainder of the Fiscal Year 2017/18. In addition, the USM general population has increased, as allowed under their current agreement with the City, by an average of 75 inmates and is projected to generate an additional $2,874,375 for the fiscal year. 65C-1 US Marshal's Terms and Conditions August 1, 2017 Page 2 Between the proposal for additional bed space to accommodate the USM construction needs and the additional general population that has been housed at the Santa Ana Jail, the estimated revenue from these inmates is $8,056,125 for FY 2017-18. Note that none of these inmates are Immigration and Customs Enforcement (ICE) related detainees. These inmates would be pre -trail inmates under the custody of the USM or Federal Bureau of Prisons. In order to accommodate the USM request and the increase in general population inmates, the Jail Operations budget would need to be increased by $6,183,121. The costs are attributed to adding back personnel positions and operating expenses that were removed from the FY 2017/18 budget. Table 1 below illustrates the revised net impact for FY 2017/18. If supported by the City Council, the net operating deficit for FY 2017/18 would be reduced by $4,034,195. This would reduce the amount of one-time funds necessary to balance the budget. For FY 2018/19, an additional $2,242,466 would be realized as deficit savings, which would represent a full year of revenue from all anticipated inmates. Table 1 — Partial FY 2017/18 Year Comparison Holding vs Type II Facility with USM Proposal* Net Change 10,217,316 6,183,121 4,034,195 *Compares current plan to transition to Holding Facility Jan. 1 vs. Housing Proposal thatwould include additional USM inmates effective Sept. 1. The proposal would require a budget adjustment to appropriate the revenue and allocate funding in the various salary and contractual accounts. Staff would return to the City Council with the staffing plan, appropriation adjustments and necessary action items at the August 15, 2017 Council Meeting. By continuing jail operations as a Type II Housing Facility, it will prevent the layoff of 26 correctional positions and provide additional time needed to implement jail reuse options, and/or negotiate housing agreements with Federal and State agencies. 65C-2 Holding Facility* Type II Facility with USM Increase Revenues 2,586,500 12,803,816 Expenditures 11,840,586 18,023,707 Net Operating Bal(Def) (9,254,086) (5,219,891) Net Change 10,217,316 6,183,121 4,034,195 *Compares current plan to transition to Holding Facility Jan. 1 vs. Housing Proposal thatwould include additional USM inmates effective Sept. 1. The proposal would require a budget adjustment to appropriate the revenue and allocate funding in the various salary and contractual accounts. Staff would return to the City Council with the staffing plan, appropriation adjustments and necessary action items at the August 15, 2017 Council Meeting. By continuing jail operations as a Type II Housing Facility, it will prevent the layoff of 26 correctional positions and provide additional time needed to implement jail reuse options, and/or negotiate housing agreements with Federal and State agencies. 65C-2 US Marshal's Terms and Conditions August 1, 2017 Page 3 STRATEGIC PLAN ALIGNMENT Approval of this item assists the City in meeting Goal #1 Community Safety, Objective #4 (ensure a sound fiscal model for jail operations), Strategy A (modify the Santa Ana Jail business model and identify short- and long-term goals to effectively meet the needs of the community through contract negotiations with outside agencies, evaluation of staffing needs and increasing operational efficiency). FISCAL IMPACT There is no fiscal impact associated with this action. However, if the US Marshal's terms and conditions are approved, an appropriation adjustment and resolution to modify the FY 2017-18 Jail Operating budget and staffing will be presented for Council consideration at the August 15, 2017 City Council meeting. That subsequent action would result in a net operating deficit reduction of $4,034,195 for FY 2017/18 and $6,276,661 for FY 2018/19. Exhibit 2 outlines the impact to the General Fund for both fiscal years. Acting Chief of Police Santa Ana Police Department Exhibit 1: US Marshal's Term Sheet Exhibit 2: General Fund Budget Impact FY 17/18 and FY 18/19 65C-3 Exhibit 1 1. Description: Request from US Marshal's to increase federal inmate population at Santa Ana Jail due to construction/remodel needs at their current facility. 2. Term: September 1, 2017 to August 30, 2019 3. Rate: $105/day 4. Number of new inmates: 173 estimated 5. Revenue Projection from Construction related inmates: USM (Special Handling Inmates) 138 4,347,000 Arr. Sept 1 (138x105x30x10mo(Sep- Jun) USM (Remodel) 20 504,000 Arr. Nov 1(20x105x3Ox8mo(Nov-Jun) USM (Other) 15 330.750 Arr. Dec. 1 (15x105x3ox7 (Dec -Jun) 5,181,750 6. Revenue from increase to general population: $2,874,375 7. Total New Revenue: $8,056,125 8. Total net deficit reduction for each fiscal year: • FY 2017/18:$4,034,195 • FY 2018/19: $6,276,661 9. Number of layoffs avoided: 26 10. Additional resources needed: a. 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