ORDER NO. 30571 CORNERSTONE PROGRAMS CORPORATION LETTER OF INTENT TO LEASE PORTION OF KERR COUNTY JUVENILE DETENTION FACILITY Came to be heard this the 8th day of October, 2007, with a motion made by Commissioner Williams, seconded by Commissioner Baldwin. The Court unanimously approved by vote of 4-0-0 to: Approve the transmittal of the Letter of Intent, as indicated. 3 b571 ~.! 5 COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: Commissioner Williams OFFICE: Precinct 2 MEETING DATE: October 8, 2007 TIME PREFERRED: Executive Session SUBJECT: (Please be specific). Consider, discuss and take appropriate action, is any, an pending proposal(s) by Letter of Intent, to lease a portion of the Kerr County Juvenile Detention Facility to Cornerstone Programs Corporation. EXECUTIVE SESSION REQUESTED: YES. NAME OF PERSON(S) ADDRESSING THE COURT: Commissioners Williams, Judge Tinley. ESTIMATED LENGTH OF PRESENTATION. IF PERSONNEL MATTER-NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 55I and 552, Government Code, is as follows: Meeting scheduled for Mondays: 5:00 P.M. previous Tuesday THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: @ All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court meetings. Your cooperation is appreciated and contributes toward your request being addressed at the earliest opportunity. See Agenda Request Rule adopted by Commissioners Court. ~ ~ f s~ Memorandum Date: October 4, 2007 To: Commissioners' Court From: William H. Williams, Kerr County Commissioner, Precinct 2 Subject: Proposed Cornerstone Programs Corporation Memorandum of Intent to Lease. Attached is a proposed "Memorandum of Intent" to lease the main Juvenile Detention Facility from Ken County by Cornerstone Programs Corporation of Englewood, Colorado. Judge Tinley and I have had discussions with this group on more than one occasion since TYC advertised for RFP's to provide detention and programming services. It appears that Cornerstone will be awarded a contract by TYC. Cornerstone currently operates a facility in Post, Texas (Garza County) under contract to TYC. Some questions have been raised by Cornerstone with regard to certain aspects of a proposed lease agreement: • Paragraph #4. We have proposed lessee be responsible for "all" repairs to facility. Cornerstone is seeking a modification of "normal and routine" repairs. • Paragraph #5. Cornerstone is asking for lease payment abatemeYrt to assist their cash flow situation for the first three months of the lease. This could be considered provided there is recovery of the abated portion of the lease payment at some time during the course of the initial lease period. • The issue of providing outside educational services; thus relieving KISD of this responsibility has been resolved. • The issue of "taxation" on the estimated value of the leasehold has been referred to KCAD for review. I should have some information to share with the Court by the time we get into this discussion. x Oo6n1Y of ~g~ COUNTY JUDGE PAT TINLEY COMMISSIONERS COURT H.A. KBUSTER'~ BALDWIN, PCT. i WILLIAM H. WILLIAMS, PCT. 2 JONATHAN LETZ, PCT. 3 BRUCE DEALER, PCT. 4 THE COUNTY COURT OF KERB COUNTY, TEXAS 700 Main, Kemille, Texas 78028 Tel: (830) 792-2211 Fax: (830) 792-2218 E-mail: commissioners@co.ken.tx.us October 10, 2007 Mr. Gary Miller, Chief Operating Officer Cornerstone Programs Corporation 9110 East Nichols Avenue Suite 160 Englewood, CO 80112 Dear Gary: CLERK JANNETT PIEPER COURT COORDINATOR JODY GRINSTEAD The matter of leasing our Juvenile Detention Facility to Cornerstone Programs Corporation was thoroughly discussed at Commissioners' Court on Monday, October 8, 2007. Attached hereto please find a revised Memorandum of Intent, which embodies the intent of Commissioners' Court, signed by Ken County Judge Pat Tinley. Also attached, is a letter for your use stating our support for your proposal to TYC to use ow facility for the purposes outlined by your organization. I have forwarded both of these documents to Dr. Dan Troxell, Superintendent, Kerrville Independent School District, for his information and use in discussing this matter with the KISD Board of Trustees. Si erely William H. Williams, Commissioner, Precinct 2 ~~~,'SE pp~ w x coO~N of ~e4 COUNTY JUDCE PAT TINLEY COMMISSIONERS COURT H.A. KBUSTER" BALDWIN, PCT. I WILLIAM H. WILLIAMS, PCT. 2 JONATHAN LETZ, PCT. 3 BRUCE OEHLER, PCT. 4 THE COUNTY COURT OF KERB COUNTY, TEXAS 700 Main, Kemille, Texas 78028 Tel: (830) 792-2211 Fax: (830) 792-2218 E-mail: commissioners@co.kerctx.us October 10, 2007 To Whom It May Concern: CLERK JANNETT PHSPER COURT COORDINATOR ~TODY GRINSTEAD This letter is in regard to Cornerstone Programs, Inc., and its proposal to operate A youth facility in apre-existing building owned by Kerr County. Kerr County Officials have met with Cornerstone representatives and reviewed RFP #2008-34. We specifically were made aware of the following points: 1. The Kerr County facility will house up to 48 at-risk TYC youthful male offenders, ages 10-13; and 2. Educational services will be provided at the facility through the John H. Woods Charter Schools. This letter is not contractual by nature. It's purpose is to state that Kerr County Officials have been notified and are in support of the project which Cornerstone Programs, Inc., is pursuing in our county. Should you have any questions with regard to this letter or its purpose, please feel free to contact me. Sincerely, ~~ Pat" in y County Judge c. Kerr County Commissioners KISD Board of Trustees ~~Q,'TE t7F.~ W x c~OnN of yea COUNTY JUDCE PAT TINLEY COMMISSIONERS COURT H.A. uBUSTER" BALDWIN, PCT. I WILLIAM H. WH.LIAMS, PCT. 2 JONATHAN LETZ, PCT. 3 BRUCE OEHLER, PCT. 4 THE COUNTY COURT OF KERB COUNTY, TEXAS 700 Main, Kemille, Texas 78028 Tei: (830) 792-2211 Fax: (830) 792-2218 E-mail: commissioners@co.ken.tx.us CLERK JANNETT PIEPER COURT COORDINATOR JODY GRINSTEAD October 10, 2007 Memorandum of Intent Cornerstone Programs Corporation, hereafter called "CPC," and the County of Kerr, State of Texas, hereafter called "County" have indicated their intent to enter into a lease agreement for the use of the Kerr County Juvenile Detention Facility, based on the terms stated herein: 1. CPC will lease from County its Juvenile Detention Facility (main original building, including its furniture and equipment in place at the facility. 2. County will make ready the facility for lease 30 days after TYC awards a contract to CPC. 3. The lease term shall coincide with the TYC contract terms of a 24 month service period renewable for two additional 24 month service periods. 4. CPC will pay the costs of all repairs and maintenance, utilities, insurance and taxes, if any, for the facility during the lease period. 5. The lease will be paid in monthly increments as follows: a. During the period (not to exceed sixty days) before clients are placed in the facility, there will be no monthly lease payment. b. The lease payment for the first month of client occupancy will be $1,000. c. The lease payment for the second month of client occupancy will be $2,000. d. The lease payment for the third month of client occupancy will be $3,000. e. The lease payment from the fourth month of client occupancy forward will be $7,500 per month 6. The total amount of abated lease payments for months 1 through 3 of client occupancy totals $16,500. CPC agrees to pay County that amount in two equal increments on the first and second anniversary dates of the initial lease period . 7. CPC agrees that the annualized lease payments for each of the two 24- month lease extensions will increase by an amount as may be mutually agreed in the final lease agreement. Memorandum of Intent Page 2 8. CPC will provide for all necessarty education through an agreement with the John H. Woods Charter Schools. Therefore, CPC will stipulate that all education of the clients will be the sole responsibility of CPC and that the Kerrville Independent School District will at no time be financially or educationally accountable for youth placed at the Kerr County Facility. 9. The main JDF has an annex building currently used by the County for educational purposes during evening and weekend hours. CPC agrees that this use will continue for as long as County desires. 10. Such other terms and conditions as CPC and County may negotiate in a final lease agreement. ...-- 1 ey Kerr County Judge Joseph Newman, President Cornerstone Programs Corporation