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Approve a contract amendment between the County of Solano and Aramark Correctional Services, LLC to extend the contract through June 30, 2022 to continue providing commissary services to inmates; and Delegate authority to the County Administrator, pending County Counsel concurrence, to execute the amendment
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Sheriff’s Office recommends that the Board of Supervisors:
1. Approve a contract amendment between the County of Solano and Aramark Correctional Services, LLC to extend the contract through June 30, 2022 to continue providing commissary services to inmates; and
2. Delegate authority to the County Administrator, pending County Counsel concurrence, to execute the amendment.
SUMMARY:
Commissary services in the jails provides inmates, their friends, and family the opportunity to purchase products such as drinks, snacks, specialty hygiene items, writing supplies, postage and phone time. Pursuant to California Penal Code section 4025, revenue from commissary sales is deposited to the Inmate Welfare Fund (IWF) and shall be expended by the sheriff primarily for the benefit, education, and welfare of the inmates.
The current contract with Aramark Correctional Services, LLC (Aramark) for inmate commissary services expires on August 31, 2020. The proposed amendment reflects agreed upon changes resulting from the sharp decrease in the inmate population brought on by the Coronavirus pandemic (COVID-19). The primary changes include a five percent (5%) reduction in commission percentage of commissary sales (from 45% to 40%) and a $300,000 reduction of the minimum annual guarantee of revenue (from $600,000 to $300,000). The previous percentage and minimum guarantee were agreed to when the daily inmate population was above 900. These changes are necessary for Aramark to sustain current operations so that the commissary service may continue to be provided to the inmates.
FINANCIAL IMPACT:
Board approval of the amendment will not have any impact to the General Fund as all commissions received from commissary sales are deposited into the IWF and provide services and supplies such as chaplain services, inmate legal assistance, substance use disorder treatment, vocational programming services, basic hygiene supplies, televisions and reading materials.
The agreed upon changes and their impacts are:
• Commission percentage reduction of 5% (from 45% to 40%) is projected to decrease commission revenue by $39,000.
• Reduction to the minimum annual guarantee of $300,000. The current contract assumed the average daily population would remain at or above 900. The lower daily population necessitated this change. Without this change, Aramark would stop providing services when the current contract expires on August 31, 2020.
• Rental income of County warehouse and office space is projected to decrease by $10,000 (10 months @ $1,000 per month). Aramark will now store their product at an off-site location. This revenue loss is to the Sheriff’s operating budget and will be reflected in the Sheriff’s Supplemental Budget Adjustments.
• Delivery schedule changes reducing deliveries to weekly, down from three times per week, is not expected to impact commissary sales. Previously, Aramark delivered weekly to each facility on separate days. This change allows Aramark to make deliveries to all three jail facilities on the same day.
• Removing the provisional technology requirement to install kiosks in each inmate housing area to allow for checking commissary account balances and ordering commissary items. This initial requirement was deferred by County due to ongoing capital projects within the jail facilities including a wi-fi project. These projects have not been completed and to require Aramark to comply with this provision for the remaining contract term would not allow Aramark to recoup its investment.
The IWF Working Budget reflects $465,488 in revenues and $767,484 in expenditures. With the expected revenue shortfall of $39,000, expenditures are projected to exceed revenues by $340,996. The IWF fund balance is more than sufficient to cover the projected exceedance.
The cost associated with preparing the agenda item is nominal and absorbed by the department’s FY2020/21 Preliminary Budget.
DISCUSSION:
The IWF is a private purpose trust fund intended for the benefit of inmates housed in the Solano County jail system. California Penal Code section 4025 allows the County to establish, maintain and operate a store (commissary and vending services) at the jails so that inmates may purchase confectionary items, postage, writing materials, toiletries, and supplies. Fund revenue is derived predominately from commissary commissions. Other revenue sources include video visitation commissions, bail bond advertisements, marriage ceremony security fees, and interest income.
The IWF Committee, chaired by the Sheriff’s Director of Administrative Services, provides fiscal and policy oversight of the IWF, establishes a budget, and makes recommendations to the Sheriff to ensure funds are expended properly and that an appropriate fund balance is maintained. IWF Committee meetings are open to the public to attend in compliance with regulations set forth in the Brown Act. The Sheriff’s Criminal Justice Program Services Manager is responsible for day-to-day operations, including providing mental health, legal, religious, education, and library services. The Sheriff makes all final decisions regarding IWF expenditures.
On June 27, 2017, as the result of a Request for Proposal administered by General Services Purchasing, the Board of Supervisors approved a three-year agreement with Aramark to provide commissary services to adult inmates housed in Solano County jails effective August 31, 2017. Aramark also provides the County with an inmate accounting system (CORE banking) which establishes inmate accounts, records purchase and replenishment transactions, and interfaces with the current jail management system.
As a result of a decrease in the Average Daily Population in Solano County jails, from 950 inmates in August 2017 at the beginning of the contract to approximately 450 inmates in June 2020, Aramark requested several changes to the agreement. These changes include a reduction in commission percentage, a reduction in the minimum annual guarantee of revenue, vacating County warehouse and office space, a reduction in the frequency of commissary deliveries, and removal of the provisional requirement to install in-mod kiosks for ordering commissary items. After conferring with the Inmate Welfare Fund Committee and negotiations with Aramark, the Sheriff is willing to accept the changes.
ALTERNATIVES:
The Board of Supervisors could choose not to approve the contract amendment; however, this action is not recommended as inmate commissary services and revenue from commissary sales directly benefit the inmates housed in Solano County jail facilities.
OTHER AGENCY INVOLVEMENT:
County Counsel reviewed and approved the contract amendment as to form.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION