The
following are responses from Rick Reyes,
a consultant to the commissioners court
doing business as Innovative Government Strategies.
The letter is presented
here in full.
November 1, 2002
Ms. Donna Lednicky
P.C. Box 48
Encinal, Texas 78014
Re: Letter of October
15, 2002 to LaSalle County Commissioner's Court
Dear
Ms. Lednicky:
Thank you so much
for your letter of Tuesday last. The County Judge,
through his individual discussions with the members
of the Commissioners Court, has requested that I answer
the public policy issues so well detailed in your
letter. The law firm of Akin Gump, Strauss, Hauer,
and Feld will answer all legal questions or issues
you have raised, under a separate cover. While I have
attended all of the La Salle County Commissioners
Court, in regard to the proposed Encinal Facility
and two public hearing in Encinal, in that regard,
I can only glean the majority view and Public Policy
of the Court in forwarding the project. With that
in mind, let's begin.
Under your General
Questions we find the first Public Policy issue. Why
build another correctional facility? The United States
of America, Department of Justice subcomponent, the
U.S. Marshal's Service (USMS) drives the need. In
other words, the US government in fiscal year 2000-2001
issued an exploratory Request for Proposals (RFPs)
indicating a need for 2000 prisoner beds for the USMS
within fifty (50) miles of the Federal Courthouse
in Laredo, Texas. Several private operators including
Corrections Corporations of America (CCA), Wackenhut,
Correction Service Corporation (CSC), and Management
Training Corporation (MTC) all indicated a desire
to build the facility within that 50-mile corridor.
The Companies were proposing to build without a public
sector component. When the RFP was withdrawn for what
we garnered were budgetary issues, myself with representatives
of the La Salle County Commissioners Court (LSCCC)
visited the then U.S. Marshal for the Southern District
of Texas, the Honorable Art Contreras, and proposed
that any such USMS facility should and must have a
public component to guarantee public input and benefit
to local residents. It is important to note that my
initial thought was to build the facility in Catarina,
Dimmit County, Texas. Understanding the economic benefit
that a multi-million dollar facility can have for
the community, the LSCCC requested that I represent
them in those negotiations. Therefore, the answer
to your question is: the facility would be built anyway
with or without the County's involvement based on
an overriding Federal need and possibly in the same
place with no public input nor benefit.
Under Questions regarding
Public Participation the rules of logic dictate that
I take all four questions as one. There have now been
three public hearings in regard to the proposed facility.
The LSCCC would love to have as much participation
as possible. All negotiations and LSCCC discussions
have been made in open court with no less than a 72
hours public notice. However, we understand that in
a County with no newspaper of General Circulation
getting the information out can sometimes be difficult.
The LSCCC has a standing policy to include all residents
of the County and the more input the better. As the
Attorney General of Texas has promoted, the media
plays an integral part in public participation and
information. The County could use a center for informational
dissemination, however no one has come forward to
offer such services. I am assured that some such mechanism
or an individual public servant is being sought after
to be developed as a conduit for the Distribution
of information. As good Public Policy any such individual
should of the highest moral character and have no
political agenda or underlying motive they would promote
under the guise of public service.
Your Questions regarding
the non-profit organization, are legal interpretations
and the Law Firm, above stated, will answer.
Your Questions regarding
the process of securing funds and building the facility
are again legal interpretations and Akin, Gump, ET.
Al. will answer, however much of the underpinning
of your questions seem to be in regard to the possibility
that the taxpayers may be stuck with a bill for a
facility they don’t need. After you have had
the opportunity to read the response by Akin Gump,
no such condition can exist for a multitude of reasons.
The Cooperative Agreement Program (CAP) grant is a
relationship with the Federal Government. As a proposed
operative arm for the Federal Government under this
agreement, LSCCC is confident that we are serving
the Federal Government in a capacity no other can
serve. For the LSCCC it is the underlying guarantee
that the facility and its operation will be successful.
Simply stated the prison industry, for the Federal
Government, is a growth industry and a Federal responsibility
that they, by law, and through this agreement cannot
turn away from. There seems to be a belief that the
process to construction has been finalized. Not quite
yet. Once our Legal Counsel (Akin, Gump, et. al.)
has reviewed all proposed documents, by all the players
in the project, and composed our position and protections
under the law we will arrive at that point. Such documents
will comprise an Official Statement, and will be published
and made available for review. As soon as available,
a copy will be held as public file in the office of
the County Judge. The $3 million dollars provided
by the Federal Government through CAP Grant will be
used in construction only.
Your Questions regarding
the facility and its operation can be best answered
by explaining the bid process and how the award took
place. While Akin, Gump will answer the legal process;
I will relate to you how it came about. After our
visit to the Marshal of the Southern District of Texas
we were sure that another RFP would soon be issued
by the Federal Government and would more than likely
guarantee that your local government would not have
had input or a chance to participate in revenues.
We issued an RFP in accordance with Texas State Law
requesting prospective bidders to bring what is commonly
called a “Design-Build” proposal. Concurrently,
we informed the US Marshal’s service that La
Salle County would like to file a Cooperative Agreement
Program grant requesting partnership funds for the
construction of the project and a bed guarantee that
the Federal Government would use the beds. This process
staved any attempt by private companies to offer the
same deal since they cannot receive grant funds and
partner with the Federal Government. A Design-Build
proposal, in lay terms, means that the bidders must
bring all the elements necessary to bring the project
to fruition. Our initial bid had stated that we sought
a 2,000-bed facility. When the U.S. Marshall told
us that their initial guarantee for beds could only
be a total of 300 beds, I called the Texas Attorney
General’s (AG) office and explained that while
the Federal need clearly showed a 2,000 bed requirement,
their guarantee would be only for the total of 300.
The AG’s office recommended that we reissue
the bid announcements so all bidders could adjust
their bids to reflect a 500-bed facility with possible
expansions. Management Training Corporation (MTC)
had initially been the successful bidder. At this
point we started all over again. New notices went
out and we waited well beyond the statutory time allotted
to get the best bids possible. MTC decided not to
bid the smaller project. We received bids from Design-Build
teams headed by Wackenhut and Emerald. These bidders
brought packages, which required them to identify
and option the land, bring the Architect, Engineer,
Construction Company, Investment Banker, and Underwriter.
As a public policy it is best done to insure that
all costs, hard and soft, can be calculated to ascertain
the economic viability of the project. The LSCCC clearly
stated what it was bringing to the table. It’s
ability to access financial markets, its partner in
the Federal government and their guarantees of both
$3 million dollars and a 300-bed guarantee, my service
as consultant to the County, and Akin, Gump as legal
Counsel. We received two bids, both bidders, with
no input by the LSCCC, identified land within the
same tract of property. They both optioned separate
parcels and assured the LSCCC that an environmental
review showed no impact and if awarded would complete
not just and environmental impact study but a more
stringent environment audit. At this point the LSCCC
appointed an ad-hoc committee composing of Commissioners
Landrum and Martinez with the County Sheriff to review
the bids. The bids were studied and negotiations with
the bidders spanned almost a month. The committee
recommended the Emerald group of bidders. The committee
was discharged and the LSCCC took up the matter for
discussion and award. After much discussion a motion
was made to make the award to the Design-Build team
consisting of Emerald Correctional Management of Shreveport
LA, as Operator, CORPLAN and FC CUNY of Dallas, TX
As Design, Hale Mills Construction Co. of Houston,
TX as Builder and Municipal Capital Markets of Dallas,
TX As Investment Banker.
Many of the questions
in regard to the bid and proposal for design and construction
can be answered by reviewing the bids on file in the
office of the County Judge. The County Judge has requested
that you please come by his office to review the bid
documents to your satisfaction. Details on the experiences
and capabilities of both bid teams can be answered
by the review of these documents. For information
for the classification and types of detainees and
prisoners held by the USMS, you may acquire that information
by accessing the Bureau of Justice Statistics (BJS)
via the US Department of Justice at http:/www.usdoj.gov.
Neither myself, nor
Akin Gump will be able to answer a question where
the answer is held or controlled by a third party.
Please send your request to each subject individual
for a specific answer to his or her intent or supposed
position.
A Detention Center
is for detaining individuals not yet finally convicted
of a crime including material witnesses. A prison
detains individuals finally convicted and are serving
a fixed sentence.
When the Design Team
finishes the final drawings for the proposed facility
you will be able to review them in the County Judges
office. It is currently expected that the facility
will recycle or reuse graywater as provided by law
or permit as needed. All the lighting will be directed
to the ground. To point the lights to the air would
be a violation of jail standards, the Jail Standards
Commission would not think that the detainees would
be floating in the air.
Your Questions about
economic development are in fact purely Public Policy
and therefore the LSCCC has instructed me to answer
your questions and explain their policy and purpose.
1.) This facility,
through its construction and operation, was specifically
qualified because it will hire and construct and operate
with people and supplies purchased in the local market
place. One of the highlights of the Emerald Group
proposal is that they would in fact do that. Where
the other bidder specifically performed the most profitable
of services in-house, the Emerald Group guaranteed
that they will buy here so the dollar stays here.
What that means, in real economic terms, is that almost
$10,000,000.00 a year will be pumped into the local
economy. Using any multiplier you would like, a six
times or seven times revolver signifies that real
push-economics will take place. Clearly the LSCCC
has made it clear that they wish their children to
have an opportunity to stay home. All the commissioners
lament that the children of our citizens, our most
valuable resource, are for the most part forced to
move from their homeland due to the lack of economic
opportunity at home.
2.) The Commissioners
Court is confident that no reduction in land values
will take place. One member of the Court is a fully
Texas licensed real estate Broker, former employee
of the Federal Reserve and a former local banker.
His view is that the formally depressed land values
will receive a much needed boost when La Salle residents
can now afford to build and have that home that for
many years have been denied them through the pull-economics
of colonia development and the minimum wages offered
by most employers in the area. Truly the needs of
the whole outweigh the needs of the few. Notwithstanding,
the LSCCC anticipates no harmful effect to any industry
in the local community or area.
3.) The Texas Workforce
Commission currently has the list of local individuals
currently qualified to hold positions . Many have
been contacted to work in Cotulla pending the opening
of this facility. For a complete list of those available
for work from your area, please contact the Texas
Workforce Commission. Should you find difficulty in
getting the requested information, please contact
Mr. Adrian Lopez, La Salle County Director of Economic
Development.
4.) Several classifications
of jobs will be available. Office work, data processing,
MIS, Detention Officers (Large Majority) maintenance,
equipment repair, administration, food handling, medical
assistant, x-ray technician, clerical.
5.) Other than detention
officers the job qualifications and the number for
each position, at the Detention Center, will be posted
by Emerald Correctional Management 120 days prior
to opening. Detention officer qualifications can be
ascertained from the Texas Commission on Law Enforcement
Officer Standards and Education at: http://www.tcleose.state.tx.us.
6.) See answer above.
7.) Training for certifiable
positions will be provided free of charge to the employee.
8.) See answer above.
9.) The Commissioners
Court has directed the successful bidder to pay a
rate comparable to positions in a Federal Facility.
Specific salaries and classifications of positions
will be made available approximately 120 days prior
to opening.
10.) See answer above.
11.) Yes, the members
of the Court have visited with other leaders of other
communities including Frio County. With no exceptions,
all have stated that the facility, in their community,
has had a significant positive economic impact to
the business community and the governmental budget.
Several other communities have competed with La Salle
in its applications for like facilities.
I hope that my approach
to answering your questions is satisfactory. Should
you have any additional questions, please feel free
to contact me.
Sincerely,
Richard A. Reyes, II
For The La Salle County
Commissioners Court
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