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Tennessee Doc and Metro Nashville Davidson County Contract Addendum 2004

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ADDENDUM
CONTRACT BETWEEN THE STATE OF TENNESSEE
DEPARTMENT OF CORRECTION AND STATE FUNDING BOARD
AND
METROPOLITAN NASHVILLE -- DAVIDSON COUNTY
GOVERNMENT

WHEREAS, on August 5,1991, the Metropolitan Government of Nashville -- Davidson County,
Tennessee ("Metro") and the State of Tennessee, Department of Correction and the State Funding
Board (" State") entered into a contract ("Contract") to assist Metro in the construction and operation
of a new correctional facility ("New Facility");

NOW, THEREFORE, the contract between Metro and the State is hereby amended as follows:

SECTION 2. COVENANTS OF THE STATE

Section 2.B(l) is hereby amended to read as follows:
,
The State will reimburse Metro for housing Locally Sentenced Felons pursuant to this Contract.
Such reimbursement shall be equal to Metro's reasonable allowable costs as provided in T.e.A. 418-106, as amended, and rules and regulations promulgated by the Department of Correction
thereunder. Pursuant to such regulations, "reasonable allowable costs" to be reimbursed hereunder
shall include Metro's annual debt service upon Debt Instruments and any replenishment of the debt
service reserve fund for such Debt Instruments which may be required in the event of a draw upon
said fund. Said reimbursement, excluding debt service on Debt Instruments, will begin upon
acceptance of Locally Sentence Felons at the New Facility. Provided, however, that in the event
Locally Sentenced Felons and other inmates are housed at the New Facility, the state per iliem
reimbursement to Metro shall be the aver:~ge male or female per diem, as appropriate. Should any
Locally Sentenced Felon be housed by Metro at other than the New Facility because other inmates

are utilizing beds at the New Facility, the State's per diem reimbursement for such Locally
Sentenced Felon to Metro shall be as if the Locally Sentenced Felon was housed at the New
Facility. The State agrees not to contract with any other government or for profit or non-profit
corporation for the housing of Locally Sentenced'Felons.
Effective this ~day of

Apr i 1

,199M 5

THE METROPOLITAN GOVERNMENT

~~
AND DAVIDSON COUNTY
Metropolitan County Mayor

THE STATE OF TENNESSEE

~~ Gt~b~~~\

Co
issioner
Department of Correction

ATI'EST:

~

'secretary~
State Funding Board

.

APPROVED AS TO AVAILABILITY OF FUNDS

APPROVED:

Director of Finance

ornmissioner, Departm t of
Finance and Administr ion
FilllM-*tsl~

LEGALITY

Comptroller of the
APPROVED AS TO F~R1?

Purch~'--'tl.3~~r+-=--.:c-=------Chief Deputy Sheriff

I

zt~!t'~~
Attorney General & Reporter

~ r- eEl \I t::. D
First Amendment
To The Contract
Between the State of Tennessee
Department of Correction
c:~ .. ~ c,~'~~~[l~37 ~f;:-IC::
State Funding Board and
H,',':,\~~r.'C';T S:il'il:ES
The Metropolitan Government of Nashville and Davidson County

Whereas, the Metropolitan Government of Nashville and Davidson County (Metro) and
the State of Tennessee (State) entered into a contract to provide housing for Locally
Sentenced Felons on January 12, 1989 ("Original Grant Contract"); and
Whereas, the parties determined that the Original Grant Contract should be amended by
an Amended and Restated Contract dated August 21, 1990; and
Whereas, the parties determined that the Amended and Restated Contract should be
-------,fiirther amended by a Ftrsrl\mentlrn-enrtOltIe--A.nrended-arrd-Restated--c-entract-dated-----February 19, 1991; and
Whereas, the parties executed a new document dated August 5, 1991 incorporating the
terms, covenants and conditions of the parties as expressed in the Original Grant
Contract, the Amended and Restated Contract and the First Amendment to the Amended
and Restated Contract (the "Contract") for the purpose of issuing limited obligation
bonds to finance construction of the New Facility to house Locally Sentenced Felons; and
Whereas, on April I, 1995, the parties executed an Addendum to the Contract
establishing the reimbursement rate for the Locally Sentenced Felons housed at facilities
other than the New Facility as a result of local inmates being housed at the New Facility;
and
Whereas, Metro and the State have worked cooperatively since 1989 to achieve their
mutual objectives under the Contract; and
Whereas, Metro has worked successfully to resolve a federal court order placed on its Jail
System; and
Whereas, the State has assisted Metro by making funds available for detailed planning to
meet the capacity needs of Metro and the State; and
Whereas, such plan includes construction to add approximately 700 beds to Metro's jail
capacity for local inmates; and
Whereas, the Metro Council has appropriated $20 million to implement these plans and
anticipates an additional appropriation of $13 million to complete the funding; and

Whereas, it is necessary to provide temporary additional capacity to meet Metro's present
and anticipated jail needs while this construction is underway; and
Whereas, the additional jail capacity can best be accomplished by the relocation of
Locally Sentenced Felons housed in Metro facilities pursuant to this Contract; and
Whereas, Metro's current operator of the facility in which Locally Sentenced Felons are
housed has available facilities within the state of Tennessee that are suitable to house
these Locally Sentenced Felons; and
Whereas, Metro and the State wish to amend this Contract to accomplish this change;
Now therefore the parties agree to amend the Contract as follows:
I.

Section I.F.2. is amended by re-designating Section I.F.2. as Section l.F.2.a. and
by adding the following new Section I.F.2.b. as follows:
2.b.

2.

In order to assls! Metro in lmusi:ng-any-ofits-tocahnmates-oNtse---------Locally Sentenced Felons that are in excess of Metro's existing
correctional capacity while Metro completes its current thirty-three
million dollar ($33,000,000) jail facilities construction/renovation
project, Metro may temporarily use up to three hundred (300) cellbeds of the New Facility's capacity to house its local inmates, as
needed. Metro's authority to use three hundred (300) of the New
Facility's capacity shall terminate within six months of substantial
completion. of its thirty-three million dollar ($33,000,000) jail
facilities construction/renovation project or three years from the
date of execution of this amendment, whichever first occurs. The
temporary use of three hundred (300) cell-beds of the New Facility
granted by this First Amendment to the Contract is in addition to
the authority previously granted Metro pursuant to the Addendum
to the Contract, restated in Paragraph 3 of this First Amendment
below, to house its other inmates at the New Facility provided
Metro is simultaneously housing Locally Sentenced Felons at its
other facilities. The authority granted by this subsection l.F.2.b
may be revoked without cause by the State of Tennessee with
ninety (90) days written notice to the Metropolitan Government of
Nashville and Davidson County.

Section I.F.3. is amended by adding a new Section I.F.3.c. as follows:
3.c.

In the event that Metro has contracted with a private management
firm to manage the "New Facility" as contemplated in Section I.T.
below, and, provided that the private management firm owns and
manages a facility in Tennessee which is accredited by the
American Correctional Association, and provided that Metro's

Locally Sentenced Felon population has exceeded ninety-five
percent (95%) of the "Facilities" capacity dedicated to housing
Locally Sentenced Felons for thirty (30) consecutive days, then
Metro may contract with the private management firm to house in
the private management firm's Tennessee facility that portion of
Metro's Locally Sentenced Felon population that exceeds the
"Facilities" current use capacity dedicated to housing Locally
Sentenced Felons in accordance with Sections I.F.2.a. and I.F.2.b.
above. The authority provided in this subsection is limited to the
period of construction/renovation described in Section l.F.2.b. and
shall terminate within six months of substantial completion of such
construction or three years from the date of execution, whichever
first occurs. For the purposes of this Section I.F.3.c, the current
use capacity of the "Facilities" is 1195. Any agreement to house a
portion of Metro's population of Locally Sentenced Felons in a
private management firm;s Tennessee facility is subject to the
prior written approval of the Commissioner of the Tennessee
-----------Depanmennlf-eo,re"Ctfo-rr:-A:ny-charrge--jnLhe'erms-orconditions-------to house Metro's Locally Sentenced Felons in the private
management firm's Tennessee facility must receive the prior
written approval of the Commissioner of the Tennessee
Department of Correction. The state shall incur no additional costs
associated with the transfer of Locally Sentenced Felons to the
private management firm's Tennessee facility or the housing of
Locally Sentenced Felons at the private management firm's
Tennessee facility. Prior to the transfer of Locally Sentenced
Felons to the private management firm's Tennessee facility, Metro
shall consult with TDOC concerning the factors to be considered in
selecting Locally Sentenced Felons for transfer. Metro shall
provide advance written notice to the Commissioner each time
inmates are transferred to the private management firm's
Tennessee facility. The authority granted by this subsection
l.F.3.c may be revoked without cause by the State of Tennessee
with ninety (90) days written notice to the Metropolitan
Government of Nashville and Davidson County.
3.

Section 2.8.1. is amended to restate and confonn to the Addendum to the
Contract by inserting the following two sentences before the last sentence in the
Section:
Provided, however, that in the event Locally Sentenced Felons and
other inmates are housed at the New Facility, the state per diem
reimbursement to Metro shall be the average male or female per
diem, as appropriate. Should any Locally Sentenced Felon be
housed by Metro at other than the New Facility because other
inmates are utilizing beds at the New Facility, the state per diem

reimbursement for such Locally Sentenced Felon to Metro shall be
as if the Locally Sentenced Felon was housed at the New Facility.
IN WITNESS WHEREOF, the parties have by their duly authorized representatives
,2004.
entered into this Amendment on this 6""« day of ~

THE METROPOLITAN
GOVERNMENT OF NASHVILLE
AND DAVIDSON CO
TY:

THE STATE OF TENNESSEE:

Purc asing Agent

B yL,L:..l.L....:....::...l,.AO-j...~'-=I--.-=~
Secretary
Approved: 3 / J... 2..120 4

~Director of Finance

APPROVED:

~d.~.__

DirectorIIlSU;ance '

---

APPROVED AS TO FORM AND
LEGALITY:

Metropolitan Attorney
APPROVED AS TO FORM A D
ATTEST:

~~.
~

Attorney General and Reporter