COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Sheriff’s Office

 

DATE:

November 17, 2010

BOARD MEETING DATE:

November 30, 2010

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Sheriff Greg Munks

SUBJECT:

Amendment One to the Agreement with Global Tel*Link

 

RECOMMENDATION:

Adopt a Resolution authorizing the President of the Board to execute Amendment One to the Agreement with Global Tel*Link for the provision of operating an inmate telephone system for the County’s correctional facilities, extending the contract term 28 months, from November 30, 2010 to March 31, 2013, with a $125,000 annual payment for each year of renewal, a guaranteed minimum commission of $620,000 annually, and a commission rate of 50% on collect calls and prepaid calling cards to the Inmate Welfare Fund.

 

BACKGROUND:

On November 27, 2007, the County entered into a contract (Resolution No. 069121) with Global Tel*Link (GTL), an inmate telephone service provider, to install and maintain telephones in the County’s correctional facilities, allowing inmates to maintain contact with their attorney or others as necessary. The contract provided for two one-year contract renewal options. The Board authorized the Sheriff to execute either or both of the optional two one-year contract renewals for and on behalf of the County, and to negotiate additional revenue enhancements.

During this contract period, GTL agreed to pay a contract execution payment of $400,000 paid over three years and a minimum annual guaranteed commission of $600,000 to the Inmate Welfare Fund. Apart from this GTL also agreed to pay a commission rate of 50% for both the collect calls and prepaid phone calling cards.

After the approval of this contract, it took GTL 4 months to completely install new phones and take over from the former contractor. This gave GTL only two years and eight months of their initial three year contract. GTL’s initial proposal was based on having a full three year contract so that they could recover their capital investment and generate some profit.

 

DISCUSSION:

GTL’s initial three year contract is expiring on November 27, 2010. The Sheriff’s Office would like to exercise the option to extend this contract for an additional two years; however, GTL has requested the Sheriff’s Office consider extending the term an additional four months to recover the time lost during the process of finalizing the original contract. Therefore the Sheriff’s Office would now like to combine the two one-year renewals as originally approved into one 28 month term from November 30, 2010 to March 31, 2013

Based on a 28 month extension through March 31, 2013, GTL has proposed the following: 1) $125,000 annual payment for each year of renewal plus a guaranteed commission of $620,000 annually paid to the Inmate Welfare Fund; and 2) no change to the commission rate (50%) on collect calls and prepaid calling cards.

County Counsel has reviewed and approved the Resolution and Amendment as to form.

Approval of this Amendment contributes to the Shared Vision 2025 outcome of a Healthy Community by supporting the Inmate Welfare Fund which funds essential programs and services provided to inmates in the County’s correctional facilities.

 

PERFORMANCE MEASURE:

Measure

FY 2009-10
Actual

FY 2010-11
Projected

Revenue from Inmate Telephone System for use by Inmate Welfare Fund

$868,422

$890,000

 

FISCAL IMPACT:

The Amendment extends the term of the contract by 28 months, from November 30, 2010 to March 31, 2013 and guarantees a minimum annual commission (revenue) of $620,000 and a $125,000 annual payment for each year of renewal to the Inmate Welfare Fund. The commission rate on collect calls and prepaid calling cards will remain at 50%.

In Fiscal Year 2009-10, the Inmate Welfare Trust Fund received a total of $868,422 in inmate telephone revenue from GTL. All revenue generated from the GTL contract is used to fund programs and services provided by various organizations to inmates in the County’s correctional facilities. There is no Net County Cost.