.' ,

This instrument was prepared by
Debra K. Inglis
General Counsel
State ofTennessee
Department of Correction
4th Floor, Racbael Jackson Bldg.
Nashville, Tennessee 37243

Charles M. Cary
Hardeman County Attorney
P.O. Box 306
Bolivar, Tennessee 38008

INCARCERATION AGREEMENT

0 ~

by and between

STATE OF TENNESSEE, DEPARTMENT OF CORRECTION

and

HARDEMAN COUNTY, TENNESSEE

/

INCARCERATION AGREEMENT
THIS INCARCERAnON AGREEMENT is made and entered into this 18 day of

Se.~t(N\hLr .1996, by and between the STATE OF TENNESSEE, DEPARTMENT
OF CORRECTION ("State") and HARDEMAN COUNTY, TENNESSEE.

WITNESSETH
WHEREAS, Hardeman County approved the creation of the Hardeman County
Correctional Facilities Corporation (HCCFC) for the purpose of constructing and operating
a prison, appointed its directors, and approved the indebtedness to be issued by HCCFC:
WHEREAS, HCCFC intends to finance the acquisition, constIUction and equipping
of a 1,504 bed medium security correctional facility with no donnitory housing (the
"Facility");

WHEREAS, Hardeman County desires to enter into this contract to reserve, keep
and maintain up to one hundred percent (100%) of the available beds for the State;
WHEREAS, the State desires to enter into this contract with Hardeman County to
house at the Facility, pursuant to the terms of this Contract, felons (hereinafter "Inmates")
sentenced to the care, custody and control of the Tennessee Department of Correction (the
"Depanment");

WHEREAS, the State agrees to compensate the county as indicated below for
reasonable allowable costs as defined by the contract associated with the housing of felons
and the operation and management of the Facility; and,

WHEREAS, the State is authorized to enter into agreements with local governments
to house State prisoners.
NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein, the State and Hardeman County hereby agree as follows:

ARTICLE 1
DEFINITIONS
UACA" means the American Correctional Association.
UACA Standards" means the standards for Adult Correctional Institutions (Third
Edition, January 1990. as the same may be modified, amended, or supplemente~ in the
future) published by the ACA.

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"Bed Day" means each calendar day that a bed at the Facility is made available to the
State pursuant to an allocation requested in writing by the Department for the placement of
an Inmate. including the first, but not the last day.
"Commissioner" means the Commissioner of the TeMessee Department of
Correction.
"Contract" means this document. together with all written attachments. exhibits,
amendments, renewals and modifications.
"Court Orders" means any orders, judgments or opinions issued by a court of
competent jurisdiction or any stipulations. agreements or plans entered into in cOMection
with litigation that are applicable to the operation, management or maintenance of the
Facility or relate to the care and custody ofInmates ofthe Facility, whether currently existing
or as may be rendered in the future.
"Debt Service Per Diem Rate" means the capital cost per Bed Day as defmed in
Section 6.2.
"Department" means the Tennessee Department of Correction.
"Effective Date of Contract" means the date stated in Section 2. of this Contract.
"Facility" means a 1,504 bed medium security correctional institution. with no
dormitory housing. to be located in Hardeman County. Tennessee, and real property as
specified in Exhibit A.
"Fiscal Year" means the period beginning July I and ending June 30 of each year.
"Indigent Inmates" means Inmates who are deemed indigent as defined by the
Departmental Policy 504.04, as said policy may be amended.
"Inmate" means any person committed to the custody and control of the Department
who is incarcerated in the Facility.
"Inmate Day" means each calendar day or part thereoftbat an Inmate is located at the
Facility, including the first, but not the last day of incarceration at the Facility.

"Liaison" means a person or persons appointed and paid by the Department to
monitor for the Department the implementation of this Contract and/or to act as the
Commissioner's designee. The Liaison will also be the official liaison between the State and
Hardeman County on matters pertaining to the operation and management services of the
Facility and may perform other functions described herein and described in Departmental
policies.
3

"Local Area" means Hardeman, Fayette, Haywood, Madison, Chester, McNairy and
Shelby Counties in Tennessee.
"Operating Per Diem Rate" means the operational cost per Inmate, per Inmate Day,
as defined in Section 6.1.
"Post Order" means standing orders which delineate the task and job duties of each
security position at the Facility.
"Staffing Pattern" means each functional area, by position, with an indication ofshift
assignment and number of days covered, relief factors and total staffing.
"State" means the State ofTeIUlessee, including, but not limited to, the Department.
·State Bed Days" means the State's total allocation of Bed Days.
"Service Commencement Date" is July ,1997.
"TOMIS" means the Tennessee Offender Management Information System, a
mainframe computer system that automates the management of information about offenders
under the supervision of the Tennessee Department of Corrections. TOMIS captures all
offender related information at the point oforigin to provide accurAte and timely information
to those who use it.
ARTICLE 2
TERM AND SCOPE OF THE CONTRACT

Section 2.1. Tenn. This Contract is effective with its execution by all parties and
continues for three (3) years after the Service Commencement Date unless terminated earlier
in accordance herewith.
Section 2.2. Renewals. The State shall have the option to renew this Contract upon
the same terms and conditions for six (6) additional three (3) year terms; provided, however,
that such option to renew may be exercised only if, at the time of the exercise of the option,
the Commissioner, in the Commissioner's sole discretion, determines that the available
facilities and institutions of the Department are overcrowded. The State may'exercise its
option to renew by giving Hardeman County 270 days advance written notice of its intent to
renew. If Hardeman County does not receive notice of the State's intent to renew 270 days
in advance, it shall notify the Commissioner ofCorrection and the Commissioner of Finance
and Administration of that fact by certified mail and the State shall have an additional 30
days from receipt of such notice within which to exercise its option to renew.

4

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Section 2.3

Requirements. This Contract is not binding until execution by all

parties.
Section 2.4.
Scope of Agreement. This Contract, including all exhibits attached
hereto which are incorporated herein by reference, shall constitute the entire agreement
between the parties and no statements, promises or inducements made by either party or
agents of either party that are not contained in this contract shall be valid or binding with the
exception of Opinion of Contractor's Counsel described in Section 13.9. No prior
agreements or understandings, verbal or otherwise, ofthe parties or their agents shall be valid
or enforceable unless embodied in this Contract

ARTICLE 3
MAINTENANCE
Section 3.1. Maintenance.
(a)
Hardeman County shall implement a plan, including a preventive
maintenance program, to maintain the Facility and all property, both real and personal,
contained therein.
,(b)
Hardeman County shall provide for maintenance, repair, and
replacement for the Facility and shall keep said Facility in good repair, working order and
condition, subject to nonnal wear and tear. Hardeman County shall be responsible for all
expenses incurred in said maintenance, repair and replacement.

Section 3.2. Expansion.
Hardeman County, at its expense, may expand the
facility by an additional 512 beds, subject to the prior written Commissioner's approval
which shall be at the Commissioner's sole discretion.
Section 3.3. Utilities and Taxes. Hardeman County shall pay all taxes associated
with this Contract and utility costs of the Facility, including, but not limited to, water, gas,
sewage and electric.
Section 3.4. Property Insurance. Hardeman County shall obtain and keep in force
casualty insurance on the facility and on all property to be located at the Facility.

ARTICLE 4
CONTRACT MONITORING
Section 4.1. Monitoring and Evaluation.
(a)
The Tennessee Department of Correction shall monitor the contract
and the perfonnance ofHardeman County. In addition, contract compliance monitonng will
5

be done by the Department of Finance and Administration through the Division of Resource
& Development.
(b)
Hardeman County shall maintain for the State data in accordance with
the Standards to include use of and data entry on TOMIS.

Section 4.2. Liaison.
(a)
The State shall provide a Liaison(s) to be located at the Facility.
Hardeman County shall be notified of the identity of the Liaison in writing signed by the
Commissioner. The hours worked and number of the liaison(s) assigned are within the sole
discretion of the State. The Liaison(s) will be an employee(s) of the Department and will be
paid by the Department. Hardeman County shall have no control over the activities of the
Liaison(s), supervisory or otherwise.
(b)
The Liaison(s) shall be the representative of the State at the Facility
to monitor for the Department Hardeman County's compliance with this Contract. The
Liaison(s) may act as the Commissioner's designee with functions as provided in writing by
the Commissioner. The State hereby expressly disclaims that the Liaison(s) has any
authority, apparent or otherwise, to bind the State under this Contract unless expressly stated
herein.
(c)
Unless otherwise specified in writing by the Cormnissioner, the
Liaison(s) shall be the designated recipient of all infonnation required of Hardeman County.
(d)
The Liaison(s) may be changed during the term ofthis Contract, at the
discretion of the Commissioner.
Section 4.3

Multiple Liaisons.

(a)
In the event that the Commissioner designates more than one
individual to act as Liaison, the State shall provide Hardeman CO\U1ty with a written
description executed by the Commissioner of the Liaisons' level of authority.
(b)
In the event Hardeman County believes it is receiving conflicting
instructions from the Liaison(s) or that the Liaison is acting beyond its level of authority
under the Contract or as provided in subsection (a), Hardeman County shall notify the
Commissioner in writing. The written response of the Commissioner shall be final.

Section 4.4. Office Space.
(a)
Hardeman COUDty shall provide, at its expense, adequate office space
and local telephone service for the Liaison(s) and for the staff of the Liaison(s), which may
include a secretary, in close proximity to other administrative offices.

6

(b)
Hardeman County also shall provide the Liaison(s) and staff with
access to all major office equipment at Hardeman County's expense.

(c)
Hardeman County shall not provide the Liaison(s) or Liaison(s} staff
with gifts or any form ofcompensation at any time.
Section 4.5. Liaison Access.
(a)
The Liaison(s} shall have immediate, complete. and unrestricted
access to all parts of the facility at any and all times.
(b)
The Liaison(s) shall have immediate, complete and unrestricted access
to all documents in any way pertaining to the obligations of Hardeman County under this
Contract, including but not limited to Facility records. Inmate files. and personnel files. In
the event that any such document is not located on the Facility site. Hardeman County agrees
to.provide the Liaison(s) upon request with a copy of the document within three working
days of the request.
(c)

The Liaison(s) shall have immediate, complete and unrestricted access

to all Inmates.
Section 4.6. Meetings with Liaison. Hardeman County agrees to hold meetings as
requested by the Liaison(s) to report on the operations of the Facility and to respond to any
questions raised by the Liaison(s). Hardeman County agrees that a representative of
Hardeman County having supervisory responsibility and authority to address the issues raised
shall be in attendance at said meetings.
Section 4.7. Reguests for Information.
(a)
Hardeman County shall provide the Liaison(s) with written responses
to any information requested by the Liaison(s) or Commissioner concerning Hardeman
County's performance oftbis Contract within the period prescribed in the State's request.
Hardeman County shall certify that said information is accurate and
if Hardeman County is unable to so certify then Hardeman County shall state the reason
therefor.
(b)

(e)
Upon written request by the Liaison{s) or Commissioner, Hardeman
County shall compile information in the requested fonn and provide documentation
substantiating said information.
(d)
During construction ofthe facility. Hardeman County shall report in
writing monthly to the State concerning the status ofthe construction.

Section 4.8. State Inspection.
(a)
The Commissioner or his/her designee(s) shall have the same access
as described in Section 4.5, Liaison Access, which access shall include but not be limited to
persons designated by the Commissioner to inspect or audit the Facility and/or Hardeman
County's performance under this Contract. Hardeman County is also obligated to provide
appropriate access to authorized inspection and regulatory agencies. Hardeman County shall
exercise due diligence for the safety and welfare of the Liaison(s), any other S~te employee,
and any visitor at the Facility.
(b)
In addition to any other right ofaccess provided herein, the State shall
have a right ofaccess to the property and facility at all times during construction.
Section 4.9. Immediate Compliance.
(a)
If the Commissioner detennines that Hardeman County is not
operating in compliance with a term or condition oftbis Contract which in the opinion ofthe
Conunissioner adversely affects the security of the Facility or which may present a hazard
to the safety or health ofinmateS or other individuals, Hardeman County shall be notified in
writing (or verbally ifit is believed an emergency situation exists). The notice shall direct
Hardeman County to inunediately correct the noncompliance.
.
Hardeman County shall immediately notify the Commissioner of the
proposed corrective action. If the Commissioner does not object to the proposed corrective
action, Hardeman County shall immediately implement said corrective action.
(b)

(c)
If the Commissioner disagrees with the proposed corrective action or
if Hardeman County fails to notify the Commissioner immediately of its proposed corrective
action, the Conunissioner shall specify corrective action which Hardeman County shall
inunediately implement.
(d)
Notwithstanding any provision contained herein to the contrary, in
such a circumstance, Hardeman County shall immediately implement the corrective action
specified by the Department before any appeal is taken.
(e)
In the event Hardeman County disagrees with the determination of
noncompliance or designated corrective action, a request for reconsideration may be taken
to the Commissioner. In no event shall the corrective action be delayed pending appeal.
Upon examination, if the Commissioner determines in his sole
discretion that noncompliance did not exist or that the corrective action required by the
Deparonent was excessive, the Commissioner shall authorize payment to Hardeman County
of the actual expense incurred in taking said corrective action or excessive corrective action
upon receipt of appropriate documentation substantiating said expense from Hardeman
County.
(f)

8

Section 4.10. Incident Reports. Hardeman County shall implement Departmental
policy regarding the reporting of incidents.

ARTICLES
OPERATION OF FACILITY
Section 5.1. Obligations ofHardeman County. Hardeman County ~11 perfonn all
JCts and services and ~ompiy wilh all duties and promises as described and in conformance
wiLh the following:
(a)
All applicable constitutional standards. federal, state and local laws,
court decisions, and Court Orders, consent agreements, whether currently existing or as may
be enacted or rendered in the future;
(b)
AU existing State and Departmental policies, or, in tbe discretion of
the State, policies approved by the Department which may not be identical to State or
Depanment policies;
(c)
Such other policies as the Department may make applicable to
Hardeman County in writing during the term of this Contract as same may be amended
during the term ofthis Contract. Any change in the scope ofservices as a result ofthis would
be compensated by an adjustment either upward or downward in accordance with Section
6.6, Compensation Adjustment for Change of Services;
(d)

ACA Standards; and

(e)

The terms oflhis Contract.

The standards articulated in (a) through (e) hereinafter collectively be referred to as
"Standards."
Section 5.2.
as described herein.

Obligations of the State. The State agrees to perfonn its obligations

Section 5.3. Conflicts.
In the event ofa conflict among the Standards, Hardeman County is
(a)
required to follow the Standard as detennined by the Liaison(s).

In the event of disagreement between Hardeman County and the
(b)
Liaison(s) regarding which item provides the standard of service, the Commissioner or his
designee shall make the fmal, binding decision.

9

Section 5.4. Policy and Procedures Manual and Operations Plan. Within 60 days
after the contract is executed, Hardeman County shall provide the State with a written Policy
and Procedures Manual which shall contain policies and procedures for all services to be
rendered by Hardeman County in accordance with the Standards. Within 60 days after the
contract is executed Hardeman County shall also submit an Operations Plan relating to all
areas covered by the contract, subject to the approval of the State. including but not limited
to a staffing pattern. security and post assignments. post orders for all security positions by
post and shift. and designation of critical posts. Said manual and plan shall·establish the
policies and procedures Hardeman County shall follow in all areas covered by this Contract.
Said manual and plan shall be subject to the written approval of the State and shall not be
altered, amended, modified, revised or supplemented without the prior written approval by
the State. Hardeman County shall implement the provisions of said manual and plan
throughout the term of this Contract.
Section 5.5. Assignment and Transfer oflnmates.
(a)
Hardeman County expressly recognizes that it is required to complete
the Facility and begin accepting inmates under the terms of this contract beginning July I.
1997. and that time is of the essence.
(b)
Beginning on the Service Commencement Date, Inmates will be
assigned to the Facility in accordance with Deparnnental policies. Hardeman County will be
provided an opportunity to review the records and comment to the State on the frrst
complement of inmates proposed to be assigned to the Facility'- Hardeman County may not
refuse to accept any Inmate assigned to the Facility, but if Hardeman County believes that
an Inmate has been erroneously assigned to the Facility or is presenting a discipline problem
sufficient to require closer custody status which cannot be provided adequately or safely in
the facility, it may request his transfer in writing through the Liaison(s) citing the appropriate
sections of Departmental policy.

(c)
Hardeman County's requests for reassignment of Inmates from the
facility to another institution for medical, psychiatric. disciplinary or administrative reasons
or for fumate furloughs will be made in writing through the Liaison(s) and evaluated by the
Department. Any decision by the Department on such request shall be final.
(d)
The State may transfer Inmates from the Facility with said decision
to transfer being within the State's sole discretion.
Section 5.6. Safety and Emergency Procedures.
(a)
Hardeman County shall submit written (I) riot and disturbance control
and contingency plan, and (2) disaster preparedness plans to the State within 60 days of
execution ofthis agreement. Hardeman County shall cooperate with the State in preparing
contingent Inmate relocation plans.

10

(b)
Hardeman County shall develop and submit to the State within 60 days
of execution of this agreement written guidelines for the prevention of fire. safety
inspections, maintenance of fire alarm and smoke detection systems. fue evacuation drills.
evacuation plans, a procedure to report job-:related injuries. and provisions for testing
equipment to maintain essential lighting. power and communications.
(c)
Hardeman County shall develop and submit to the State plans for the
search and apprehension of any escaped Inmate within sixty (60) days ofexecution of this
agreement. Said plans shall address Hardeman County searching for any escapee off the
grounds ofthe Facility and coordination with local and State authorities. Hardeman County
shaH implement said plans regarding any search off the grounds of the Facility only if so
requested by the Commissioner.
(d)
During the term ofthis Contract, Hardeman County shall develop and
submit to the State in writing any other emergency and control plans as may be requested in
writing by the Department within thirty (30) days of receipt of said request.
All plans required under this Section must be submitted to the State
(e)
and approved by the State in writing. Hardeman County agrees to make any revisions.
deletions or additions requested by the Commissioner or his designee. Upon written
approval by the State. Hardeman County shall begin immediate imple1!1entation of the plans
or in the case of contingency plans. certify that Hardeman County has the ability and shall
implement the plan if the contingency occurs. Said plans may not be revised, amended.
altered, or supplemented without prior written consent of the State.
(t)

AH plans must be in conformance with the Standards.

Section 5.7. Medical and Mental Health Services.
(a)
Hardeman County shall provide. in compliance with the Standards.
all physical health services. mental health services and dental services as specified in this
Section, utilizing the TDOC Health Services medical records forms. as said forms may be
revised or supplemented during the tenn of this Contract.
(b)
The physical health. mental health. and dental services shall include
but not be limited to:
)
24 hour-a-day. 7day-a-week on--call emergencymedical health
and mental health care;

(2)

24 hour-a-day. 7 day-a-week on-site nursing care;

(3)

initial health screening;

(4)

health appraisal examination;
11

(5)

daily triaging of complaints;

(6)

daily sick call per nonnal workday schedule;

(7)

infinnary operation with at least supervision by an RN 24
hours per day. 7 days per week;

(8)

maintenance ofbealth records;

(9)

special medical programs and services for, but not limited to.
Inmates with chronic needs or requiring convalescent care;
mental health, mental illness and substance abuse services to
include a sex offender aftercare program and a substance
abuse program that empbasizes relapse prevention and
provides for after-care and self-help treatment services;
health care specialists;
ancillary services - radiology, laboratory, etc.;

(13)

dental services - routine to include dentures;
pharmaceutical services and supplies;
optometry services to include eyeglasses;

(16)

hearing aids;
prosthesis, if it is the opinion of the Facility's Medical
Director that an hunate's health or well being would suffer or
be damaged if a prosthesis is denied the Inmate;

(18)

health education; and,
inpatient and outpatient hospitalization services.

(c)
Except as set out herein. Hardeman County shall be responsible for
the cost of providing all physical health, mental health, and dental services, including but not
limited to inpatient and outpatient treatment-any surgery and specialty services. medications.
specialty clinics, medically related transportation, medically related security services, and the
costs associated with the provision ofservices described above.
12

(d) Hardeman County shall be responsible for security selVices for inpatient
care during a confmement period for which Hardeman County is financially responsible.
Hardeman County shall provide security at an off-site medical facility after the Department
assumes responsibility, ifrequested to do so by the Department and to be reimbursed by the
Depanment at the following rates:

Year

$14.92 per hour

Year 2

$14.92 per hour

Year 3

$14.92 per hour

Such reimbursement rate for any renewal tenn will be fixed for that tenn at an hourly rate
equal to the previous tenn's hourly rate multiplied by the inflator rate which shall be
c!lculated by averaging the consumer price indices for the immediately preceding three (3)
years.
(e)

Exclusions and Limitations
If an inmate is hospitalized at a non-departmental facility,
Hardeman County shall not be responsible for inpatient hospital costs which exceed $4,000
per inmate per admission or for costs incurred after the third day of hospitalization,
whichever com~ first. The Department will decide on the location ofcare and confinement
following this initial period and may, in consultation with Hardeman County's
representative, decide to utilize departmental facilities during the initial period of inpatient
care. Hardeman County shall not have access to the Department's facilities without the
Department's approval. If an inmate is housed and treated at a departmental facility, the
Department will assume financial responsibility for expenses incurred within its facilities.
Provided, however, notwithstanding any provision contained herein to the contrary, any
inmate medical expenses resulting from the negligence or willful wrongdoing of Hardeman
County, its officers, agents or employees shall be fully paid for by Hardeman County.
(l)

(2)
Hardeman County shall not be responsible for any inpatienthospital cost, including any surgery or specialty services, associated with the treatment of
persons with Acquired Immune Deficiency Syndrome (AIDS), as defined by the Centers for
Disease Control. Hardeman County shall be responsible for hospitalization costs associated
with other HIV infected patients.
(3)
Hardeman County shall not be responsible for the cost of
providing AZT. or other medications therapeutically indicated for the treatment of inmates
with AIDS or HIV infection. Such treatment will be at the Department's discretion and
expense.
Section 5.8.

Food Service.
13

(a)
Hardeman County will provide food service for the Inmates and
volunteers in accordance with the Standards including but not limited to the provision of
special diets for medical or religious requirements.
(b)
Hardeman County shall not be required to follow the Department's
master menu, but the food service area must comply with State health regulations. At a
minimum the amount of daily calories must conform with the recommended dietary
allowances published by the National Academy of Sciences.

Section 5.9. Transportation. Hardeman County will be responsible for the
following inmate transportation: (a) all within the Local Area; and, (b) outside the Local
Area, as necessary when the Department's central transportation is unavailable or time
constraints restrict inter-institutional transfer; provided, however, in the event said
transportation outside the Local Area occurs more than ten (10) times in any twelve (12)
month period, Hardeman County shall provide said transportation if requested by the
liaison(s) and will be reimbursed for labor in accordance with the following:
Year I

$14.92 per hour

Year 2

$14.92 per hour

Year 3

$14.92 per hour

plus expenses and cost of transportation.
The reimbursement rate for any renewal term will be fixed for that term at an hourly rate
equal to the previous tenn's hourly rate multiplied by the inflator rate which shaH be
calculated by averaging the consumer price indices for the immediately preceding three (3)
years.
Inmate CommiSSary.
(a)
Hardeman County will provide a commissary for Inmates which shall
supply only those non-consumable items at a reasonable price approved by the Department
in writing and such consumable items as Hardeman County approves.

Section 5.10.

Hardeman County may not offer for sale to Tennessee Inmates
Commissary items which are prohibited by Departmental policy.
(b)

(c)
All profits derived from the Commissary operation shall be retained
.
by Hardeman County.
Section 5.11. Mail. Hardeman County will provide pick up and delivery ofImnate
mail in compliance with the Standards. Hardeman County will furnish first class pc.. ~ge to
14

Indigent Imnates for the mailing of legal documents to courts or legal counsel and otherwise
as required by federal or state constitution, statutes. or regulations.
Section S.12. Religion. Hardeman County will designate adequate space within the
Facility for religious services and provide religious programs and/or religious services in
compliance with the Standards.
Section 5.13. Inmate Grievance Procedure. Hardeman County will utilize
Departmental policies regarding Inmate grievance procedure and the Department's system
for maintaining grievance related records. as said policies and/or system may be revised
during the term of this Contract.
Section 5.14. Security.
(a)
Hardeman County shall provide Inmate security in accordance with
the Standards at all times in the Facility, and while Hardeman County is transporting Imnates
and all other times unless relieved of said obligation by the Commissioner in writing.
(b)
At a minimum, Hardeman County shall provide security, perimeter
control, Facility control. control center function, post orders, security patrols. security
inspections, continuing procedures, key control, procedure for search and control of
contraband, tool control. escape plan detection. appropriate use of security equipment, use
of restraints, use of fireanns and chemical agents, tactical unit procedure, inspections,
housing unit assignment plans, and internal and external movement control procedures and
periodic shakedowns.
Section 5.1S. Visitation. Hardeman County shall designate physical space and
provide appropriate security and supervision for indoor and outdoor visitation in accordance
with applicable Standards, no less frequently than at comparable Department facilities.
Section 5.16. Access to Courts. Hardeman County shall provide Inmates with
constitutionally required access to the courts by use ofa law library, persons trained in the
law, or any combination thereof.
Section 5.17. Inmate Discipline.
(a)
Hardeman County shall implement and strictly adhere to Department
Inmate disciplinary rules and procedures as they may be amended by the Department.
Hardeman County agrees that no Inmate will be disciplined except as
in accordance with this Section.
(b)

(d)
Hardeman County shall use the present or any future system
established by the Department for recording disciplinary information.

IS

Section 5.18. Use of Foree. Notwithstanding any provision contained herein to the
:ontrary. no use offorce shall be allowed by Hardeman County exeept as in accordance with
he Standards.
Section 5.19. Sentence Reduction Credits. Hardeman County shall submit sentence
:redit reports to the Liaison(s) monthly with the decision on awarding or forfeiture of
.entence credits remaining solely with the Department.
Section 5.20. Sentence Computation. Hardeman County shall provide the State with
~sential data and information relating to sentence computation. All sentence computations.
Dcluding calculation ofInmate release and parole dates. shall be done by the Department and
opies furnished to Hardeman County and Inmates. All other record keeping functions (e.g.
'Osting ofdisciplinary reports. filing. updating Inmate assignments. custody levels. etc.) are
be responsibility of Hardeman County.
Section 5.21. Records and Reports.
(a)
Hardeman County shall provide for comprehensive operations and
nmate record and reporting systems for the Facility in compliance with the Standards to
lclude use of and data entry on TOMlS.
(b)
All computer equipment and communication lines necessary to
uerface with TOMIS will be provided by the Department at no cost to Hardeman County.
~ort

(c)
Hardeman County will incorPorate all new systems developed to
and track Inmate record information designated by the Commissioner.

(d)
Upon request. all records. reports and documents will be made
vailable immediately to the Liaison(s) for review. At the conclusion of the Contract. all
~ords shall be turned over to the Department.
(e)
Hardeman County shall prepare and submit to the Liaison(s) such
=ports as are required by the State and will promptly notify the Liaison(s) whenever an
unate leaves the Facility on Court Order.
(t)
Documentation required to be maintained by Hardeman County shall
lclude: complaints against Hardeman County's staff; the number and nature of violent or
ther disruptive incidents among Inmates or against staff; the number and nature of
isciplinary actions against staff; the rate at which Imnates complete programs successfully;
tid, the number ofInmates productively active and the level of production.

Section 5.22. Escapes and/or Number ofEscapees. Hardeman County shall exercise
s best efforts to prevent escapes from the Facility. If the frequency of escapes (an escape
:defined as one prisoner vacating the premises. so that five prisoners escaping in a group
'ill be considered five escapes) or nearly successful attempted escapes and/or number of
16

escapees shall be in excess of the frequency from comparable State facilities without good
cause or shall exhibit a disregard for the safety ofthe general public, the State may tenninate
this Contract for cause. Said determinations shall be within the sole judgment of the
Commissioner.
Section 5.23. Policy Audit. Hardeman Countyshall audit, using personnel approved
by the State independent from Hardeman County and its subcontractors identified in this
contract, at least yearly, implementation of applicable Department and State policies and
procedures. Audit forms showing full. partial and noncompliance with every key area of
these policies and procedW'eS shall be developed and copies made available to the Liaison(s)
no later than six (6) months after the Effective Date of this Contract. Copies of completed
audit forms shall be forwarded to the Liaison(s) for review upon completion of each audit,
together with a report outlining the steps to be taken to correct any deficiencies. In the event
the audit(s) reveals a Breach (as defined in Section ILl) by Hardeman County. the State
shall have available the remedies set out in Article II.
Section 5.24. Inmate Work.
(a)
Any minimum restricted or higbercustody Inmate working outside the
secured perimeter must be under armed supervision.
(b)
Hardeman County will be allowed to use Inmate Labor for Facility
operations and maintenance to the same extent Inmate labor is utilized ill other State facilities
pursuant to State policy and not for the benefit of Hardeman County its subcontractors.
Hardeman County shall submit Inmate job descriptions for the State's written approval
before assigning jobs to Inmates. Job assigmnents and re-assignments shall be made by
Hardeman County only after the job description bas been approved in writing by the State.
No Inmate shall ever be placed in a position of authority or control over another.

or

(c)
Inmates shall not perform services or produce goods for use outside
the Facility except upon written consent of the Commissioner.
(d)
Hardeman County shall be responsible for establishing and
administering a compensation program at its expense, which will include Inmate pay. The
Department sball provide Inmates with sentence reduction credit
Section 5.25. Industries. An industries program may be established at the Facility
during the term of the Contract upon the mutual written agreement of the panies. In the
event an industry program is establisbed pursuant to this sectio~ unless otherwise agreed
Hardeman County shall be responsible for all associated costs, including but not limited to
security.
Section 5.26. Vocational and Academic Training. Hardeman County shall furnish
vocational and academic training as set forth in the Standards.

Section 5.27. Classification and Case Management.
.
.
(a)
Hardeman County shall comply with Depanmental policies regarding
classIfication and reclassification services.
(b)
Hardeman County shall be required to maintain classification
infonnation which confonns to the Department's system.
Scclion 5.28. Inmatc Trust Fund. Hardeman County shall maintain an Inmale truSt
fund according to departmental policies and the Standards.
Section 5.29. Sanitation and Hygiene. Hardeman County shall provide for sanitation
and hygiene in accordance with the Standards.
Section 5.30. Computer Software. The State shall retain proprietary rights to all
State provided software utilized in connection with this Contract.
Section 5.3!. Inmate Drug Testing. Hardeman County will conduct drug tests in
accordance with Departmental Policy 506.21 and will be responsible for all costs associated
with the testing. Selection of Inmates to be tested at random will be the responsibiliry of the
Department.
..
Section 5.32. Assumption of Control.
(a)
Hardeman Counry shall review and comment on the Department's
plan for assumption of control within fifteen (15) days following its receipt by Hardeman
Counry. The plan will provide for the orderly transfer of inmates from Hardeman Counry
10 the Department under any conditions of tennination. Hardeman County agrees to
implement said plan upon wrinen notice from the Commissioner.
(b)
Said plan will also provide for emergency assumption of control by
the Department of whole or part of the Facility under conditions of natural disaster, in the
event of riot or insurrection or other emergency circumstances wherein the Commissioner
deems it necessary for the State to assume temporary control of the Faciliry. The
Commissioner shall determine whether and to what extent an emergency circumstance exists
in his sole discretion. The plan sh.all address Hardeman County's resumption of control after
the circwnstances causing the emergency assumption has ended. The plan will provide for
the transfer of all records to the Department.
Section 5.33. ACA Accreditation. Hardeman Counry shall achieve and maintain, at
its expense, ACA accreditation of the Facility within thirty (30) months of the Service
Commencement date unless prevented from doing so by Departmental policies or action or
inaction by the State.

18

Section 5.34. Inmate and Staff Identification. Hardeman County shall comply with
the procedures in the Standards for Inmate and staff identification including but not limited
to, unifonns, fingerprinting and photographing.
Section 5.35. Inmate Personal Property Space. Hardeman County shall follow
Departmental policy on Inmate personal property.
Section 5.36. Libnuy. A generallmnate library will be provided and maintained by
Hardeman County in accordance with the Standards.
Section 5.37. Volunteer Services. Hardeman County shall implement a plan to
provide for volunteer service programs in accordance with the Standards. At a minimum,
Hardeman County shall provide for supervision and monitoring of the program and security
background checks for volunteer applicants.
_
Section 5.38. Release Payments for Inmates. Hardeman County shall follow
Departmental policy regarding transportation for discharged Inmates and discharge payments
to said Inmates. Hardeman County will be responsible for such payments.
Section 5.39. Space for Board ofParoleslInstitutional Parole Officer. Hardeman
County shall provide a hearing room for the Board of Paroles two (2) days per month or as
otherwise requested by the Board. The hearing room shall be large enough to comfortably
accommodate three (3) Board members and fifteen (l5) visitors. Hardeman County shall
provide local telephone service and furniture for the hearing room. Hardeman County shall
also provide furnished office space five (5) days each month, or as otherwise requested by
the Board, for the institutional parole officer.
Section 5.40. Post Conviction Actions. The State will defend any post conviction
action, including appeals and writs of habeas corpus, by any Inmate challenging the
underlying judgment of conviction or the administration of the sentence imposed.
Section 5.41. Legal Actions Against Contractor. Agents and Employees. The State
is not obligated to provide legal representation for any non-state employee or official in any
litigation arising from or based on this Contract, including but not limited to post conviction
actions, or any actions brought under the United States Constitution or the Federal Civil
rights acts.

ARTICLE'

COMPENSATION AND ADJUSTMENTS
Section 6.

Operating Per Diem Payments.

19

(a)
The State shall make operating per diem payments to Hardeman
County based on an Operating Per Diem Rate per [nmate actually at the Facility for the
service period of July I, 1997 through June 3D, 2000, provided. however, after September
30,1997, the State agrees to pay at least the Operating Per Diem Rate for 90% of State Bed
Days, regardless of the number of Inmates actually 3t the Facility.

Per Inmate Day
lnmate Population

Per Diem Rate

1-940
941 - 998
999-1336
1337-1504

536.75
526.52
525.76
522.35

Assuming a total State lnmate population at the Facility of 1,504, the blended Per
Diem Rate per lnmate is $32.28.
During the initial term, after the first fiscal year, tbe Operating Per Diem Rate shall
be increased by three and one-quarter percent (3.25%) for each fiscal year. The inflator rate
for any renewal period shall be calculated by averaging the consumer price indices for the
immediately preceding three (3) years. The Operating Per Diem Rate for each fiscal year
during the renewal term shall be increased by the inflator rate.
(b)
Hardeman County shall make available to the State beginning on
the Service Commencement Date, the following bed schedule:

Bed Availability Time-Line

Date
7/1/97
8/1/97
9/1/97

Beds
Available
500

500
504

Total
Population
500
1,000
1,504

The State may change the number of State Bed Days that Hardeman County makes available
to it before or after Service Commencement Date from time to time by giving Hardeman
County 270 days advance wrinen notice of the cbange. The State may lower or raise the
State Bed Days in its sole discretion, for any reason or no reason including, but not limited
la, the Stale's dissatisfaction with any management subcontract. Norwithstanding any
provisions herein to the contrary, Hardeman County shall make available to the State aU or
pan oflhe Facility's capacity upon notice described herein and shall enter inlo no agtttment
to the conrrary. Any beds not required to be made available to the State by this Contract may
20

be filled with inmates from other jurisdictions. Such inmates shall be kept completely
separate in housing assigrunent.
(c)
No Operating Per Diem will be paid for inmates housed and treated
at a State departmental Facility. Subject to the subsection (a) above, the Operating Per Diem
payment will be made only for inmates actually incarcerated at the Facility, except an
Operating Per Diem payment shall be made for any inmate hospitalized at a non-State
departmental Facility during the period when the contractor is responsible for said
hospitalization expense. No Operating Per Diem shall be paid for any inmate out on court
order.
(d)
Inmate Days and billings will be determined by the Midnight count
of each day, which count shall be periodically reviewed and signed by the Liaison(s).
Section 6.2 Debt Service Per Diem Payments. In addition to the Operating Per
Diem Payments, the State shall make monthly Debt Service Per Diem payments. From the
Service Commencement Date until September 30, 1997, the Debt Service Per Diem shall
be $7.46 P.er Inmate Day. Thereafter, the Debt Service Per Diem shall be $7.46 per State
Bed Days.
Section 6.3. Completion of Facility. Should Hardeman County fail to have the
Facility completed and prepared to accept imnates on July 1, 1997, the State, in its sole
discretion, may terminate the Contract Said termination shall not be deemed a breach by the
State.
Section 6.4. Billings.
(a)
Payment on monthly invoices shall be in arrears and shall be due
within thirty (30) days from receipt of the invoice and shall be made through the State's
automated clearinghouse wire transfer system. Hardeman County shall complete and sign an
"Authorization Agreement for Automated Deposits (ACH Credits) Form". All payments to
Hardeman COUilty under this or any other contract, shall be made through the State's
automated clearinghouse wire transfer system. Hardeman County shall not commence work
or invoice the State for services until it has completed this form and submitted it to the State.
The debit entries to correct errors authorized by the "Authorization Agreement for Automatic
Deposits Form" shall be limited to those errors detected prior to the effective date of the
credit entry. The remittance advice shall note that a correcting entry was made. All
corrections shall be made within two (2) banking days of the effective date of the original
transaction. All other errors detected at a later time shall take the form of a refund or, in
some instances, a credit memo if additional payments are to be made.
(b)
The payment ofan invoice by the State shall not prejudice the State's
right to object to or question any invoice or matter in relation thereto. Such payment by the
State shall neither be construed as acceptance ofany part of the services provided nor as an
approval of any of the costs invoiced therein. The County's invoice shall be subject to
21

reduction for amounts included in any invoice or payment made which are detennined by the
State, on the basis of audits conducted in accordance with this Contract. not to have been
ma.de in conformance with this Contract. Any payment shall be reduced for overpayments,
or Increased for under payments, on subsequent invoices.
Section 6.5. Billing Disputes. If the amount to be paid to Hardeman County is
disputed by the State, then the State, on or before the date the invoice is payable, shall advise
Hardeman County of the basis for the dispute and, in the manner provided at;K>ve, pay the
amount of such invoice which is not in dispute.
Section 6.6. Compensation Adjustment for Change of Services.
(a)
The parties recognize that each has entered into this Contract based
upon the Standards in effect as of Effective Date of Contract. Hardeman County agrees to
be bound by any applicable Standard change and said change shall not affect the validity of
this Contract. Ifa change occurs in the applicable Standard, either party may notify the other
in writing if it is believed said change shall affect the services delivered by Hardeman
County. The Commissioner shall make the final, binding decision regarding whether a
change has occurred in an applicable Standard and whether said change affects the services
rendered by Hardeman County. Any adjustment in the Operating Per Diem Rate due
Hardeman County shall be determined in accordance with subsection (b). In no event shall
the Debt Service Per Diem Rate be revised.
(b)
Within thirty (30) days ofthe notice required in subsection (a) above,
Hardeman County shall provide the State with the proposed adjustment the the Operating Per
Diem Rate and appropriate documentation in support thereof. The Commissioner shall
decide whether and to what extent an adjustment in the Operating Per Diem Rate is
appropriate. In the event the proposed adjustment decreases the Operating Per Diem Rate
then the Commissioner may agree to reduce said Operating Per Diem Rate; provided,
however, in the event the proposed adjustment increases the Operating Per Diem Rate then
the Operating Per Diem Rate may be increased only by amendment to this Contract as
described in Section 14.14.
Section 6.7. Failure to Agree on Billing Dispute or for Additional or Reduced
Services.
(a)
In the event Hardeman County disagrees with the State's failure to pay
a disputed amount under Section 6.5, disagrees with the detennination of the Commissioner
regarding whether and to what extent an adjustment in the operating per diem for change in
services is appropriate under Section 6.6, disagrees with the Commissioner's determination
under Section 4.9(f), or disagrees with any other aspect or amount ofpayment made by the
State then Hardeman County shall submit a claim and the grounds for said disagreement in
writing to the Commissioner within thirty (30) days of the date the State either makes partial
payment ofthe disputed bill or refuses the disputed bill ~ i~ entir~ty. ~~ilure .0f.Harde~an
County to submit said claim and grounds to the CommIssIoner 10 wnung WIthin the tIme

22

period described herein shall be an absolute waiver ofsaid claim. The State shall be afforded
a sixty (60) day period in which to effect a cure or take reasonable steps to effect a cure.
(b)
In the event Hardeman County timely provides the notice described
in subsection (a). then Hardeman County may file a claim against the State before the
appropriate forum in Tennessee witbjurisdiction to hear said claim. Failure by Hardeman
County to file a claim before the appropriate forum in Tennessee with jurisdiction to hear
said claim within one year of the notice described in subsection (a) shall operate as a waiver
of said claim in its entirety. It is agreed by the parties that this provision establishes a
contractual period of limitations for any claim brought by Hardeman County. Neither this
Section nor any other provision of this Contact creates or expands jurisdiction of any court
or commission over the State.

ARTICLE'
OPTION TO PURCHASE

Upon such time that State policy and statutes allow. the State shall have the right to
exercise an option to purchase the Facility and personal property used in connection with the
Facility for the amount listed in Exhibit B corresponding to the date of purchase. All
management contracts in effect at the time the option is exercised shall be assigned to the
State by Hardeman County. Upon exercise ofsaid option. Hardeman County shall. at its own
expense, deliver marketable, unencumbered title to the Facility and personal property, as
built drawings of the Facility together with plans and specifications, an assignment of all
warranties on the Facility and personal property, and a title insurance policy in form and
substance acceptable to the State.

ARTICLE 8
SUBCONTRACTING

Section 8.1. Subcontractors. It is acknowledged and agreed by the State and
Hardeman County that the duties and the obligations ofHardeman County hereunder may
be performed in whole and/or in part from time to time by subcontractors. Any performance
by a subcontractor shall constitute and be deemed perfonnance by Hardeman County
hereunder. provided, however. perfonnance by a subcontractor shall not release Hardeman
County of its obligation hereunder. Hardeman County is utilizing HCCFC for the
construction and operation of the prison. HCCFC has contracted with Corrections
Corporation ofAmerica to construct and manage the prison and a copy ofsaid contract shall
be delivered to the State within 60 days ofthe execution of this Contract. Hardeman County
shall not modify said contracts without the prior written approval ofthe State; said approval
shall not be unreasonably withheld. Hardeman County shall not enter into any other
subcontract, or modification, for operation and management of the prison without obtaining
23

4.51

&¥UHt..2.&.

. Ii

. J - ' ; _..

J4d

51

u::,... ~

'" W.SiX4JdWtM . Mt .. . /t,M4i4&..t.t.3Z$1.(, t

, t .....w.. t .... u.3A$z.:wU.P SN.£.&Z4k"''' iiQ.:"

the prior wrinen approval ofthe State. Hardeman County agrees to place in its subcontracts,
a provision allowing the State of Tennessee access to the Facility, inmates. personnel and
records regarding the perfonnance of any contractor or subcontractor for monitoring
purposes. Any such provision shall include, but not be limited to, the same access as
provided in Article 4 above.
(a)
Hardeman County shall provide that all subcontractors warrant that
no pan of the total subcontract amount shall be paid directly or indirectly to an employee or
official of the State ofTennessee as wages, compensation, or gifts in exchange for acting as
officer, agent, employee, subcontractor, or consultant in connection with any work
contemplated or prefonned SUbject to the subcontract.
(b)
Hardeman County shall provide that all subcontractors agree that no
person on the grounds ofhandicap, disability, age, race, color, religion, sex, national origin,
or any other classification protected by Federal and/or Tennessee State constitutional and/or
statutory law shall be excluded from participation in, or be denied benefits of, or be
otherwise subjected to discrimination in the perfonnance under the subcontract or in the
employment practices of the subcontractor. The subcontractor shall, upon request, show
proof of such non-discrimination, and sball post in conspicuous places, available to all
employees and applicants, notice of non-discrimination.
(c)
Hardeman County shall provide that all subcontracts for the
perfonnance in whole and/or pan of the duties and obligations of Hardeman County shall
contain provisions for the maintenance ofdocumentation and auditing similar to section 14.1
herein.

ARTICLE 9
INSURANCE AND DEFENSE OF CLAIM
Section 9.1. Types of Insurance. Hardeman County and/or one of its management
subcontractors shall maintain and pay for insurance substantially as described in Exhibit C.
The State shall be listed as an additional insured.
Section 9.2. DefenselImmunity. Notwithstanding any provision contained herein to
the contrary, the State does not waive any inununity defenses which may exist by operation
of law, including, but not limited to, limitations on the amount of damages which may be
awarded or paid

24

ARTICLE 10
STAFFINGIEMPLOYEES
Section 10.1. Personnel. Notwithstanding any provision contained herein to the
contrary, Hardeman County shall provide adequate staff to fulfill its obligations under this
Contract.
.
Section 10.2. Staffing Pattern/Security Post Assignment.
I (a)
Hardeman County shall implement a staffing pattern approved in
writing by tbe State.
Hardeman County shall implement a security post assignment
schedule approved in writing by the State. Said schedule shall detail by day and shift the
security positions and hours of work. Said security post assignment schedule shall include
designation of critical posts. Hardeman County shall also implement a plan regarding the
process for managing the security post assignment schedule including but not limited to how
the posts may be created andlor eliminated.
(b)

Section 10.3. Job Descriptions.
(a)
Hardeman County shall provide as part ofthe operations plan required
by Section 5.4 written job descriptions for each position in the staffing pattern including but
not limited to job title, responsibility and required minimum experience and education.
Any revisions or modifications ofthejob descriptions require the prior
written approval of the State.
(b)

Section 10.4. Personnel Records. On or before the fifth (5th) day of each month,
Hardeman County shall submit a report to the Liaison{s) providing the following
infonnation;
(a)
the name of employees hired, indicating position;
(b)
the name ofeach employee whose employment has been tenninated
for whatever reason whether voluntarily or involuntary, and position.
Section 10.5 Background Checks. Prior to employment with Hardeman County,
applicants shall be subjected to a thorough background investigation and, as to Correctional
Officer applicants only, psychological history. Criminal and employment histories must go
back a minimum oftive (5) years. Said background investigations shall be available to the
State upon request. The state shall not provide NCIC background checks.
Section 10.6. State Assistance in Training.
(a)
During the term of this Contract, Hardeman County shall send a
representative to participate in periodic meetings regarding departmental activities and shall
25

send a representative to sessions in which relevant policy modifications are being discussed
or presented.
(b)
Hardeman County shall recei.ve written notice of the time. place and
agenda of the meetings or sessions described in subsection (a) at the same time State
employees are provided notice.

(c)
Said meetings or sessions shall be held within the State, and
Hardeman County shall bear any and all expense associated with its representative being
present.
(d)
The Department shall supply Hardeman County with technical
assistance, consultation and informational support consistent with that provided other
comparable institutions in accordance with the Standards, provided, however, said support
shall consist solely of advice and consultation.
Section 10.7. Training. Hardeman County shall provide orientation and training
programs for all employees in accordance with the Standards. All costs incurred for said
orientation and training programs shall be borne by Hardeman County. The Liaison(s) shall
be permitted to review training curricula and other training-related records and to audit
training classes at any time.
Section 10.8. Drug Free Work Force. Hardeman County shall at all times maintain
a drug free work force and shall implement a plan for maintenance ofa drug free work force
and the employee assistance program.

ARTICLE 11
CONTRACT COMPLIANCE
Section 11.1
(a)
following occurs:

Breach.
A party s&all be deemed to have breached this Contract if any of the
(1)
failure to perform in accordance with any term or provision
of this Contract in whole or part;

(2)

any act prohibited or restricted by this Contract.

For purposes of this Article, subsections 1 and 2 shall hereinafter be referred to as
"Breach."

(b)
In the event of a Breach by Hardeman County. the State shall have
available the following remedies as described further herein:
26

(1)

actual damages and any other remedy available at law or

equity; or
(2)

Liquidated damages against the management subcontractor (s);

(3)

Termination of this Contract.

and/or.

(c)
In the event of Breach by Hardeman County. the Commissioner and/or his
written designee shall notify Hardeman County in writing and provide a reasonable period
to cure. In the event Hardeman County disagrees with the Liaison(sfs determination of
Breach or period to cure, Hardeman County shall notify the Department in writing; provided,
however. any appeal to the Department shall not toll or otherwise affect the period to cure.
The decision by the Department shall be final and binding. In the event Hardeman County
fails to cure the Breach within the time period provided, then the State shall have available
any and all remedies described herein. This subsection regarding notice and opportunity to
cure shall not be applicable in the event of successive or repeated Breaches of the same
nature. or in the event the Liaison(s) or Commissioner invokes the immediate compliance
provisions of Section 4.9, or in the case of a failure to have the Facility completed and
prepared to accept Inmates by the Service Commencement Date. In the event the Breach is
not cured.and in the event the State has notified Hardeman County in writing of the breach
within thirty (30) days of the· Breach, the State may elect to invoke liquidated damages. Said
liquidated damages shall commence on the date the cure period expires. provided. however.
if the Commissioner determines that the management team of Hardeman County·s
subcontractors, including but not limited to HCCFC and CCA, has concealed or misled the
State concerning the Breach, the liquidated damages shall commence on the date of the
Breach and notice shall not be required. For purposes stated herein. management team is
defined as consisting of persons in the rank of shift supervisor or above.
Section 11.2. State Breach.
(a)
In the event of a Breach by the State. Hardeman County shall notify
the State in writing within thirty (30) days of any Breach by the State. Said notice shall
contain a description of the Breach. The State shall be afforded a forty·five (45) day period
in which to effect a cure or in which to take reasonable steps to effect a cure; provided,
however, that ifthe alleged Breach concerns the State's failure to make payment under this
Contract, the State shall have sixty (60) days after the notice to effect a cure unless the
payment is the subject of a dispute between the parties.
(b)
Failure by Hardeman County to provide the written notice described
in subsection (a) shall operate as an absolute waiver by Hardeman County of the State·s
Breach.

27

(c)
With the exception of the provisions contained in subsection (f)
herein, in no event shall any Breach on the pan of the State excuse Hardeman County from
full performance under this Contract.
(d)
In the event of Breach by the State, Hardeman County may bring an
action in the forum with appropriate jurisdiction provided, however, failure by Hardeman
County to give the State written notice and opportunity to cure as described in this Section
operates as a waiver of the State's Breach.
(e)
Failure by Hardeman County to file a claim before the appropriate
forum in Tennessee with jurisdiction to hear such claim within one year of the date the notice
described in subsection (a) is provided shall operate as a waiver of said claim in its entirety.
It is agreed by the parties this provision establishes a contractual period oflimitations for any
claim brought by Hardeman County.
In the event the State fails to make payment due under this Contract
within the cure period specified herein and the amount due exceeds one hundred thousand
dollars ($100,000), Hardeman County may terminate the Contract upon ninety (90) days
prior written notice to the Commissioner, provided, however, Hardeman County may
terminate this contract only upon the State's failure to pay an amount which is not in dispute.
(f)

(g)
In the event the provisions of this Article are in conflict with the
provisions of Section 6.6, Section 6.6 shall control.
Section 11.3. Liquidated Damages.
(a)
Consistent with the provisions of Section 11.1 (c), in the event ofa
Breach described in Exhibit D, the State may direct Hardeman County to withhold from its
subcontractors, including but not limited to HCCFC and CCA as liquidated damages the
amounts designated on Exhibit D. In the event the State directs a withhold of liquidated
damages from a subcontraetor(s), the State shall not owe Hardeman County a corresponding
amount. Hardeman County agrees that it shall cause all subcontracts to contain provisions
whereby the liquidated damages may be assessed against said subcontractor(s) in accordance
with this Article.
The State shall notify Hardeman County in writing ofthe Breach and
the amounts to be withheld as liquidated damages.
(b)

(c)

Liquidated damages shall be assessed in c~nformance with Section

(c).

(d)
The panics agree that due to the complicated nature of the obligations
under this Contract it would be difficult to specifically designate a monetary amount for a
breach designated in Exhibit 0 as said amounts are likely to be uncertain and not easily
proven. Hardeman County hereby represents and covenants that it has carer.l1Iy I'!. ~iewed
28

the amounts contained in Exhibit 0 and agree that said amounts are the liquidated damages
resulting from negotiation between the parties, represent a reasonable relationship between
the amount and what might reasonably be expected in the event ofbreach by subcontractor,
and are a reasonable estimate of the damages that would occur from a breach by
subcontractor.
(e)
It is hereby agreed between the parties that the liquidated damages
assessed against subcontractors do not include any injury or damage sustained by a third
party.

The State is not obligated to assess liquidated damages before availing
itselfof any other remedy.
(t)

(g)
The State may elect to discontinue liquidated damages and avail itself
ofany other remedy under this Contract in law or equity.
(h)
In the event Hardeman County disagrees with the State's assessment
of liquidated damages, it may file a claim against the State before the appropriate forum in
Tennessee with jurisdiction to hear the claim. In the event Hardeman County prevails on
such a claim, Hardeman County shall have an option to tenninate for convenience by giving
wrinen notice to the State three (3) years in advance.
Section 11.4. Termination.
(a)
In the event of a Breach by Hardeman County which is not cured as
provided in Section 11.1 (c) hereof, the State may terminate the Contract immediately or in
stages.
(b)
Hardeman County shall be notified of the termination in writing
signed by the Commissioner. Said notice shall hereinafter be referred to as Termination
Notice.
(c)
The Termination Notice may specify either that the termination is to
be effective immediately, on a date certain in tbe future, or that Hardeman County shall cease
operations under this Contract in stages.
(d)

Hardeman County agrees to cooperate with the State in the event of

a tennination.
Section 11.5. Tennination Due to Unavailability of Funds.
(a)
This Contract is subject to the appropriation and availability of State
funds. The Department will include in its budget request to the Legislature for each Fiscal
Year the payments to become due thereunder in such Fiscal Year and will use all reasonable
and lawful means at its disposal to secure the appropriation of money for such Fiscal Year
sufficient to pay the payments thereunder coming due therein. The Deparnnent reaco'"'nably
29

believes that monies in an amount sufficient to make all payments due thereunder can and
will lawfully be appropriated and made available for this purpose.
(b)
In the event that the funds are not appropriated or are otherwise
unavailable, the State reserves the right to terminate the Contract upon written notice to
Hardeman County. Said termination shall not be deemed a breach by the State. Upon receipt
of the written notice, Hardeman County shall cease all work associated with the Contract.
Should such an event occur, Hardeman County shall be entitled to compensation for all
satisfactory and authorized services completed as of the termination date. Upon such
termination, Hardeman County shall have no right to recover from the State any actual,
general, special, incidental, consequential, or any other damages whatsoever of any
description or amount, and the State shall not be obligated to exercise its option to purchase
the Facility pursuant to the provisions of Article 7 hereof. The State presently intends to
continue this Contract for the entire term and to pay all payments due thereunder.
Section 11.6. Termination for Convenience.
(a)
The State may terminate this Contract without cause for any reason
with ninety (90) days advance written notice except as provided in (e) hereunder. Said
termination shall nol be deemed a Breach.
(b)
Hardeman County shall be entitled to receive compensation for
satisfactory authorized services completed as of the termination date, but in no event shall
the State be liable to Hardeman County for compensation for any service which has not been
rendered.
(c)
Upon such termination, Hardeman County shall have no right to any
actual general, special, incidental, consequential, or any other damages whatsoever of any
description or amount, except that the State shall pay for all supplies and equipment on order
and not yet delivered to the Facility as of the date of termination.
(d) This Contract requires Hardeman County to submit to the State certain
policies, documents and information, including but not limited to, a written Policy and
Procedures Manual pursuant to Section 5.4 and written Safety and Emergency Procedures
pursuant to Section 5.6 (collectively the "Required Information"), which Required
Information is subject to the State's written approval. If the State does not approve the
submitted Required Information and is unable to approve any re-submitted Required
Information, the State may terminate this Contract immediately without notice, penalty or
cost. Said tennination shall not be deemed a Breach but shall be deemed a termination of
convenience. Any such approval shall be in the sole discretion of the State.
Section 11.7. Performance Bond. If the State determines a performance bond is
necessary, then Hardeman County will obtain such bond acceptable to the State in form and
substance at the State's expense.
30

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ARTICLE 12
PROHIBITIONS
Notwithstanding any other provision of this Contract to the contrary, nothing
contained herein shall be interpreted to authorize, allow or imply authority of Hardeman
County to do the following:
(a)
develop or implement procedures for calculating Inmate release and
parole eligibility dates;
(b)
sentence credits;
(c)

develop and implement procedures for calculating and awarding
approve Inmates for furlough and work release;

(d)
approve the type of work an Inmate may perform, and the wages or
sentence credits which may be given to Inmates engaged in such work; and
(e)
grant, deny or revoke sentence credits; place an Inmate under less
restrictive custody or more restrictive custody; or take any disciplinary actions; provided,
however, that this Section shall not prevent Hardeman County from making
recommendations to the State with respect to any of the above in conformance with State
policy.
The Commissioner shall determine whether any action or proposed action violates the
provisions of this Article.

ARTICLE 13
HARDEMAN COUNTY'S REPRESENTATIONS AND WARRANTIES
Section 13.1. Authorization. This Contract has been duly authorized, executed, and
delivered by Hardeman County and, assuming due execution by the appropriate State
officials as indicated on the signature page of this Contract and delivery by State. constitutes
a legal, valid, and binding agreement enforceable against Hardeman County in accordance
with its terms.
Section 13.2. No Defaults under Agreements. Hardeman County is not in default,
nor is there any event in existence which, with notice or the passage of time or both, would
constitute a default by Hardeman County, under any indenture, mortgage. deed oftrust, lease,
loan agreement, license, security agreement, contract, governmental license or pennit, or
other agreement or instrument to which it is a party or by which any of its properties are

31

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bound and which default would materially and adversely affect Hardeman County's ability
to perfonn its obligations under this Contract.
Section 13.3. Compliance with Laws. Hardeman County and its appointed officials
are acting in compliance with all applicable laws, rules, and regulations.
Section 13.4. No Violation of Contract. Articles of IncOlporation by Bylaws. The
consummation of the transactions contemplated by this Contract and its fulfillment of the
terms hereof will not conflict with. or result in a breach ofany of the tenns and provision of,
or constitute a default under any indenture, mortgage, deed or trust, lease, loan agreement.
license, security agreement, contract, govenunentallicense or permit, or other agreement or
instrument to which Hardeman COWlty is a party or by which its properties are bound, or any
order, rule, or regulation ofany court or any regulatory body. administrative agency, or their
governmental body applicable to Hardeman COWlty or any of its propenies, except any such
conflict, breach, or default which would not materially and adversely affect Hardeman
County's ability to perform its obligations under this Contract.
Section 13.5. No Litigation. Except as noted on Exhibit E, there is not now pending
or. to the knowledge of Hardeman County, threatened, any action. suit, or proceeding to
which Hardeman County is or may be a party. before or by any court or governmental agency
or body, which might result in any material adverse change in Hardeman County's ability to
perfonn its obligations under this Contract, or any such action, suit, or proceeding related ~~
environmental or civil rights matters; and no labor disturbance by the employees of
Contractor exists or is imminent which might materially and adversely affect Hardeman
County's ability to perfonn its obligations under this contract.
Section 13.6. Disclosure. There is no material fact which materially and adversely
affects or in the future will (so far as Hardeman County can reasonably foresee) materially
and adversely affect Hardeman County's ability to perform its obligations under this Contract
which has not been accurately set forth in this Contract or otherwise accurately disclosed in
writing to State by Hardeman County prior to the date hereof.
Section 13.7. Opinion ofContractor's Counsel. Hardeman County shall furnish to
State an opinion of counsel in connection with this Contract dated as of the date of the
Contract. Such opinion shall address Hardeman County's compliance with applicable law,
affinn its authority to enter into this Contract, indicate that the Hardeman County is not
currently in litigation or have notice of litigation that could cause the Contractor not to
perfonn the terms of this Contract except as noted expressly herein and affinn the
enforceability of this Contract in accordance with its terms.

32

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ARTICLE 14
MISCELLANEOUS

Section 14.1. Audits. Hardeman County shall maintain documentation ofall charges
against the State under this Contract. The books, records. and documents of Hardeman
County, insofar as they relate to work performed or money received under this Contract, shall
be maintained for a period ofthree (3) full years from the date of the final payment, and shall
be subject to audit at any reasonable time and upon reasonable notice, by the State or the
Comptroller ofthe Treasury or their duly appointed representatives. These records shall be
maintained in accordance with generally accepted accounting principles.
Section 14.2. Non-Discrimination. No person on the grounds ofhandicap, disability,
age, race, color, religion, sex, national origin, or any other classification protected by Federal
and/or Tennessee State constitutional and/or statutory law shall be excluded from
participation in, or be denied benefits for, or be otherwise subjected to discrimination in the
perfonnance under this Contract or in the employment practices of Hardeman County.
Hardeman County shall, upon request, show proofofsuch non-discrimination, and shall post
in conspicuous places, available to all employees and applicants, notices of nondiscrimination.
Section 14.3. Binding Nature. The State may, but shall not be obligated under this
agreement to make payments hereunder until the State has received satisfactory evidence of
insurance required herein and has received a Payment and Perfonnance Bond to the extent
required herein.

Section 14.4. Invalidity and Severability.
(a)
In the event that any provision of this Contract shall be held to be
unlawful, invalid or unenforceable, all parties agree that all other tenns and conditions of
this Contract shall remain in full force and effect except as specific'ally provided in this
section.
With the exception of the provisions contained in Article 10, in the
event any or all provisions of this Contract are found to be unlawful, invalid or
unenforceable by the commission or court ofcompetent jurisdiction, both parties agree
that neither shall be in Breach or liable in any manner to the other for damages, costs, or
expenses of any nature which the other might sustain due to said finding; provided,
however, in the event said finding reduces the services rendered by Hardeman County,
the State may reduce the Per Diem Rate paid Hardeman County pursuant to Section 6.6
and said finding shall not excuse any other Breach.
(b)

33

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(c)
In the event a court ofcompetent jurisdiction finds provision(s) of
this Contract to be unenforceable the Commissioner may tenninate this Contract upon
thirty (30) days prior written notice without penalty or liability to the State.
Section 14.5. Headings. The headings contained in this Contract are for
reference purposes only and shall not affect the meaning or interpretation of this Contract.
Section 14.6. Tenninology and Definitions. All personal pronouns 'used in this
Contract, whether used in the masculine, feminine, or neuter gender, shall include all
other genders; the singular sball include the plural and the plural shall include the
singular.
Section 14.7. Interpretation and Venue. This Contract shall be govemed by and
construed in accordance with the laws of the State of Tennessee. Any legal proceedings
against the State regarding the Contract shall be brought in the State ofTennessee
administrative or judicial forum with appropriate jurisdiction. Venue shall be in
Davidson County, Tennessee.
Section 14.8. Duration of Services. Hardeman County agrees that the services
and programs set forth in this Contract will be maintained for the duration of the Contract
period.
Section 14.9. Release. Hardeman County, upon fmal payment of the amount
due under this Contract, releases the State, its officers and employees, from all liabilities,
claims and obligations whatsoever arising from or under this Contract. Hardeman County
agrees not to purport to bind the State to any obligation not expressly assumed herein by
the State.
Section 14.10. Assignment. Hardeman County shall not assign this Contract
without obtaining the prior written approval of the State. Any such assignment sball contain,
at a minimum, Sections 14.1 and 14.2 of this contract..
Section 14.11. Research Projects. Hardeman County andlor its subcontraetors shall
not publish or disseminate any findings based on data obtained from the operation of this
Contract or engage in any research projects without the prior written consent of the State.
Section 14.12. Prohibited Payment. Hardeman County warrants that no part of the
total Contract amount shall be paid directly or indirectly to an employee or an official of the
State ofTennessee as wages, compensation, or gifts in exchange for acting as officer, agent,
employee, subcontractor, or consultant to Hardeman County in connection with any work
contemplated or perfonned relative to this Contract.
Section 14.13. Notices. All notices shall be hand-delivered to Hardeman County
or the State's Liaison(s) or sent certified mail, return receipt requested to:
34

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State:
Commissioner
Department of Correction
4th Floor, Rachel Jackson Bldg.
320 6th Avenue North
Nashville, Tennessee 37243-0465
Hardeman County:
Hardeman County Correctional Facilities Corporation
c/o Weed, Hubbard, Berry & Doughty
424 Church Street, 29th Floor
Nashville, Tennessee 37219
The notice shall be deemed to be received on the date ofthe band delivery or on the third day
after mailing.
Section 14.14. Amendments. The tenns and provisions of this Contract may be
waived, altered, modified, amended, supplemented or revised only by written amendment
which has been executed and approved by the appropriate parties as indicated on the
signature page of the Contract. Neither the Liaison(s) nor any other employee or official of
the State is authorized to modify, amend or waive the tenns and provisions of this Contract
except as provided in this Section.
Section 14.15. Waiver. No consent, waiver or excuse of any Breach of any of the
tenns or conditions of this Contract shall be held to be a consent, waiver, or excuse of any
other or subsequent Breach, nor shall any such waiver or excuse be valid or binding unless
the same shall be in writing and approved and executed by the party alleged to have granted
the waiver as indicated on the signature page of this Contract.
Section 14.16. Third Party Beneficiary. Neither Hardeman County nor the State
intends to create rights for any third party ofthe Contract and no third party beneficiary rights
are created hereby. Third parties shall mean aU persons except the State and Hardeman
County, including but not limited to employees of Hardeman County, subcontractors of
Hardeman County and Inmates located at the Facility.
Section 14.17. Laws. Hardeman County shall comply with all applicable federal,
state, and local constitutions, laws, and regulations, court decisions, Court Orders, and any
applicable state and federal orders in the perfonnance of the Contract.
Section 14.18. Attorneys Fees. Hardeman County agrees that, in the event either
party deems it necessary to take legal action to enforce any provision of the contract and in
the event the State prevails, Hardeman County shall pay all expenses of such action,
including but not limited to the State's attorneys' fees and costs of all stages of the litigation.

3S

Section 14.19. Approyals. Any policies, procedures or other documents
contained or referenced in this Contract subject to the State's approval under the teIIDS of
this Contract shall remain subject to State prior written approval whenever they are
revised, amended, replaced or supplemented. Hardeman County agrees to accept and
implement any revisions, alterations or supplements suggested by the State to any
document, plan, policy or procedure which requires State approval.
Section 14.20. Set-Off. The State reserves the right to deduct from amounts
which are or shall become due and payable to Hardeman County under this or any
Contract between the parties any amounts which are or shall become due and payable to
the State by Hardeman County. The state may withhold any amounts which may
otherwise be due Hardeman County without waiver of any other remedy or damages
available to the State under this Contract or at law or at equity.
Section 14.21. ConfidentialitY. Hardeman County shall maintain the confidentiality
of all records required by the Standards.
Section 14.22. Implied Covenants or Agreements. The state shall be bound only
by the express, written tenns contained herein and shall not be bound by any implied
covenants or agreements.
Section 14.23. Notices. Failure of the State to pro~de any notice to Hardeman
County descnbed in this Contract whether or not the State had knowledge of the
appropriateness of said notice shall not relieve Hardeman County of its obligation to
perform in accordance with this Contract and shall not be a waiver or excuse for any
failure to perform.
Section 14.24. Maximum Liability. Notwithstanding any provision contained
herein to the contraIY, in no event shall the maximum liability to the State exceed:
Year 1
Year 2
Year 3

$20,472,000
522,728,000
$23,395,000

In the event that the State exercises its option to renew, the annual maximum liability for
each year during any renewal period shall be calculated unilaterally by the State in the

manner shown on Exhibit F. •
Section 14.25. Independent Contractor. Hardeman County is an independent
contractor for the purpose of this agreement. .
*The cballgcs made to Ibis 8eelion ad the addilioD or ExhIbit F have heeD IA'J'Oved by the following panics which have
the Contral::t:
~
JJ~on W. Clift, CollDty Ex~live
~obn Ferguson. Commissioner, De~t of
TIlls AUgusai' 1996
• Finance &; Administration. This August¥ 1996

previou~ ex~ted

-CoDal Campbell. Commissioner. Department of Correction,
lblsAugust_ 1996

36

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IN WITNESS WHEREOF, intending to be legally bound, the parties have caused
their llthoriZed representatives to execute this Contract as of the I E
day of
em\,g. r , 19-t.k-.

Sec

HARDEMAN COUNTY

STATE OF TENNESSEE
DEPARTMENT OF C RRECTION

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STATE OF TENNESSEE
COUNTY OF Dpt(f dbCC)

)

)

Before me. the undersigned. a Notary Public of the State and County aforesaid. personally
appeared Donal Campbell. with whom I am personally acquainted (or proved to me on the basis
of satisfactory evidence). and who. upon oath., acknowledged himself to be Commissioner of the
Department of Corrections for the State of Tennessee. the within named bargainor. and that he.
as such Commissioner. being authorized so to do. executed the foregoing instrument for the
purposes therein contained. by signing the name of the State of Tennessee by himself as
Commissioner of the Department of Corrections.
WITNESS my hand. at office. this 5{b.. day of ~ 1996.

My Commission Expires:
I -~~-q'l

STATE OF TENNESSEE
COUNTY OF .thr:dCIDQ ()

)
)

Before me. th-.: undersigned. a Notary Public of the State and County aforesaid. personally
appeared L( 'co fu.ff-t
. with.whom I am personally acquainted (or proyed to me on
th. basis of satisfactory evidence). and who. upon oath. acknowledged bLc:.self to be
I ,
[
~.,
of Hardeman County. Tennessee. the within named barg~or. a
.....li....L:.LlU-l~~......Jo..J.\-Iu....u...a..w:~.:::L;......
and that _he. as such
J,
being autho .
so to do. executed the foregoing instrument for the p9.JP05eS eEin contained.
by signing the name of Hardeman County. Tennessee. by lli...PSelf as [.II oh
'£fCu..:l~

JI

WITNESS my hand. at office. this

JS~daY of

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. 1996.

My Commission Expires:

_.5· a.'l_·99~

_

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APPROVED:
STATE OF TENNESSEE

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fohn Ferguson
Commissioner of Finance and Administration

William R. Snodgrass
Comptroller of the Trea

39

LIST OF EXHmITS

Exhibit A

Description of Facility and Real Property

ExhibitB

Purchase Price Schedule

ExhibitC

Description of Insurance

Exhibit D

Daily Liquidated Damages Schedule

ExhibitE

Disclosure ofPending Litigation

ExlnbitF

State's Maximum Liability

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EXHIBIT A

Land in the Third (3rd) Civil District of Hardeman Cowuy. TeMes5ee. described
as follows:
Beginning at a liz inch rebar set in the westerly line of Old New Castle Road. said
point being the southeasterly comer of the Robert Young tract (WS·492); thence South
02 degrees 58 minutes 53 seconds West along the westerly line of said Old New Castle
Road a distance of 1120.54 feet to a '12 inch rebar set at the northeasterly comer of out
parcel "B"; thence South 83 degrees 23 minutes 27 seconds Wes.t. along the northerly line
of said out parcel "B" a distance of 910.63 feet to a 112 inch rew set at the northwesterly
comer of said out parcel "B"; thence South 2S degrees 33 minutes 20 seconds West along
a westerly line of said out parcel "B" a distance of 1019.33 feet to a liz inch rebar set:
thence South 41 degrees 30 minutes 08 seconds West along a westerly line of said out
parcel "S" a distance of 511.12 feet to a liz inch rebar set; thence South 18 degrees 01
minutes 40 seconds West along a westerly line of said out parcel "8" a distance of 510.01
feet to a l/Z inch rebar set at the southwesterly comer of said out parcel "8"; thence South
5S degrees 53 minutes 41 seconds East along the southerly line of said out parcel "5" a
distance of 702.70 (eet to a 'Iz inch rebar set in the westerly line of said Old New Castle
Road. said point being the southeasterly comer of said out parcel "S": thence South 34
degrees 06 minutes 19 seconds West along said westerly line a distance of 474.70 feet to
a 112 inch rebar set; thence South 37 degrees 33 minutes 06 seconds West along said
westerly line a distance of 306.29 feet to a fence comer at the northeasterly comer of out
parcel"A"; thence North 55 degrees 48 minutes SO seconds West along a northerly line
of said out parcel "A" a diswlce of 116.10 feet to a fence comer; thence North 12 degrees
47 minutes 30 seconds West along a northerly line of said out parcel"A" a distance of
72.13 feet to a fence comer, thence North 68 degees 07 minutes 32 seconds West along
a northerly line of said out parcel "A" a discance of 254.72 feet to a fence comer at the
northwesterly comer oC said out parcel -A": thence South 28 degrees 01 minutes 21
seconds West alanl the wesaerly line of said out patcel "A· a dislance at 452.40 feet to
a fence
the southwesaerly comer of said out parcel -A"; thence South 86 degrees
50 minute::l 33 -=oDds Easl alanI the southerly line of said out parcel "A" a distance of
369.49 feet 10. (ace comer in the wesaerly line oC said Old New Castle Road. said point
beina the scucbe&iurly comer of said out parcel "A"; thence South 44 degrees 26 minutes
30 seconds West alan. said westerly line • distance of 313.56 feet (C-313.0 feet) to a V2
inch rebar set; thence South 24 depee:s 56 minutes 05 seconds West alona said westerly
line a distance of 309.12 feet (C-264.0 feet) to a 1.1.1 inch rebar set; thence South 42
dearees 02 minutes 17 seconds West along said waledy line a distance of 810.17 fee.'
(C-759.0 (eet) to a '.1.1 inch rebar set 11 the nonheasterly comer of the Ruth Crowder tract;
thence North 42 degrees 34 minutes 38 seconds West along a northerly line of said
Crowder tract. distance of 328.21 feet (C-327.0 feet) to a fence comer; thence NOM 87
degrees 54 minutes 19 seconds West alonl a northerly line of said Crowder tract a
distance of 600.82 feet (C-602.0 feet) to a fence comer at an interior comer of said
Crowder tract; thence Nonh 03 degrees 35 minutes 25 seconds West along an easterly line
at said Crowder tract I diswtce of 1394.41 feet (C-1410.0 feet) to • '.1.1 inch rebar set at
a southeasterly comer of the Claude E. Blalock tract (Z3-464!465); :.'1ence North 13
degrees 41 minutes 41 seeonds East along an easterly line of said Blalock tract a distance
at 1596.86 feet (C-l,592.0 feet) to a fencecomer; thence North 48 degrees 14 minutes
58 seconds East along ~ easterly line of said Blalock tract a distance of 478.88 feet
(C-462.0 feet) to a metal T·post; thence North 20 degrees 28 minutes 54 seconds West
along an easzerly line of said Blalock tract a distance of S16.97 feel (C-S6S.0 feet) to a
liz inch ~bar set; thence North 34 degrees 38 minutes 12 seconds.Wes.t. along an easterly
line of said Blalock tract a distance of 96.50 feet to a metal T·post in a southerly line of
the Clifford KeUer Estates; thence South 87 del!rees 03 minutes 03 seconds East alon~ a

comer.

pose; thence North 38 degrees 55 minutes 35 seconds East along a southerly Hne of said
Keller tract a distance of 524.09 feet (C-525.0 feet) to a mew T-Past; thence South 38
degrees 03 minutes 14 seconds East along a southerly line of said Keller tract a disWlce
of 565.10 feet (C-568.0 feet) to a metal T-post; thence South 86 degrees 26 minutes 14
seconds East along a southerly line of said Keller tract a distance of 689.49 feet (C-690.0
feet) to a metal T-post 11 the southeasterly comer of said Keller tract; thence NOM 03
degrees 41 minutes 31 seconds East along the easterly line of said Keller tract a disWlce
of 1138.90 feet (C-1359.93 feet) to a 3Q.inch oak at the southwesterly comer of the said
Raben Young Tract; thence Nonh 82 degrees 47 minutes 03 ~onds East along the
southerly line of said Young tract a distance of 1609.91 feet (C-161 1.89 feet) to the point
of beginning, containing 202.848 acres or 8,836,058.88 square feet, described according
to a Boundary Survey, dated December 4, 1995, last revised January II, 1996, prepared
by John Wesley Ashwonh, m, TeMessee No. 1344, Ashworth-Vaughan,lne., 195 Center
Sueet, Colliervillc, TeMcsscc 38017, Job No. 3832.
Being a ponion of thc same property conveyed to Joe R. Keller and wife,
Jimmie E. Keller, by deeds from A. Duncan WilUams and wife, Carolyn Williams, of
record in Deed Book CS, page 122, Registers Office for Hardeman County, TeMe5seC,
and from Catherine freebW'g, of record in Deed Book NS, page 212, said Registers
Office.

EXHIBIt B

Oa(8 of F Jrchase
(Refer~ To Last
Jul
1997
Aug
Sap

47.967.847.10
47.B!58.500.27

1998

Mar
Apr

47,191.230.73
47,078.130.25

46.964.48312
46,850,286.70
46. 735,~38.32

Sap

Oct

46.620.235.33

Nov
Cae

1999

Feb
Mar

48.153.423.38

45.916.819.39
45.797.358.29

4S.an,e20.78

Jul

4e.'~, '04.02
45.436.105.20
48.3 U.S21.sf·

Aug

Sep

Oct

45.192.350.43

Nov

Feb

2000

May
Jun
Jut

44.320,457.12
~4.065.8g1.e4
-i3,937.e8S.3~

SeD
Oct
Nov

43.808.859.40

2001

43.155.329.31

MIY
Jun

Jul

42.48!5t8~~.29

Aug

42.350.009.15
4' ~13.509.~3

Sea
Oct
Nov

42.078.349.91
41.938.527.~e

Oec

Feb

Mar
Apr

May

43.879.410.80
43.'49.3315.:52
43.~1 8.633.56
43.287.208.88

43.022.722.04
42.889.473.77
42.155.581.48
42.621.042.01

Apr

Jan

44,822.282.32

.u.193.481.24

Aug

Feb
Mer

45.089.5tle.70
44.946.233.62
44,697.731.92
44. '12.'19.'3
~,~.c 8.822.24

Mar
Apr

Osc
Jan

46.:504.37:5.04
4e.387.ge4.18
46.210.971.78

46.035.306.83

Apr
May
Jun

Oec
Jan

47,748.824.93
41.638.218.52
47.527.279.46
47.415.802.24
47.303,78T.19

Mlly
Jun
Jut
Aug

Jon

$46,292.141.91
48.1e4,ge~.40

Nov
Oec

Feb

Purchase Price

4a.078.667 97

Oct
Jan

PURCHASE PRICE SCHEDULE
Day of Month)

2002

"1.800.039.02
41.660.881.11
41.521.050.61
41.380.~44.26
"1.239.3~8.80
41.097.~90.~

tin a"4 a17 38

Uf:v'..' &,$
Jul

"0. 001.7:5 IUZ
40.523.129.33
40.37l'.1GG.10

Oct
Noy
Dec

2003

M.r

39.490.85' .:52
38.340.833.03

Jun
Jul
Aug

39,199.58199
39.031.812.91

Sep
Oct
Nov
Dec

Feb

2004

Mar
~r

37.479.12....15
31.319.082.13
37.1'8.2".28
38.996,873.12

Jun

Jut
Aug

S.p

38.83ot.208.oe

2005

Feb
Mar
Af)t

May

Jun
Jul

Aug
SIP
Oct
Nov

Deo
Jan

2001

Fib
Mlr

NK
MeV
Jun
JuI
Aug
SliP

oct
Nov

Dec
J....

'Ib

2001

Mar

ApI

Mly

J..,
JlA

30,828.1575.154

30."35,0422.23

Oc;t
Nov
C.c

Feb

Mit

~

38.871.13;.97
38,507.192.38
38,342.452.3;
38,118.918.11
38.otO.578.81
3!UM3.439.02
315,8115,491.38
35.508.731.50
35.337., SS,SM
35,188,780.77
34,9915,542.02
34,823,49l5.71
34,850,817.84
3<4,478,8CM.<W
34.302.311.315
34,128,9lW.82
33.950.710.1.
33,773.813.81
33.1598,881.52
33.418.849.12
33.231.171.40
33,050.821.37
32,878.209.84
32.892.915.08
32.509.739.39
32.325.871.37
32.140,727.72
31,954,883.1.
31,rGe.140.32
31,S80.•94.eo
31,381.0042.13
31.202.478.83
31.012.099.38
:~.820.799.n

Aug
S.p

Jan

38,885,304.2.
38,732,058.45
3B,518,011.91
38,4Z3.341.23
38,261.862.62
38.111,632.53
37.954.6&1.32
37,796.903.38

37.838.396.98

May

Oct
Nov
Dec
J8n

40.231.767.63
40.085,029.75
39.937.582.83
39.189.422.88
39.540.~46.91

Apr
May

JlIn

' .... _1

4Q.811.GlM.82

Aug
Sep

Jan
Feb

LJ:C:J

2008

30.Z41,33~.34
30,04e.310.37
29.880.342.78
28.853.•21.00
29.4615.S81.48
29,268.738.80
29.056.954.74
'A A~R '0" 1ft

"'.

SECOND AMENDMENT TO INCARCERATION AGREEMENT
by and between

STATE OF TENNESSEE, DEPARTMENT OF CORRECTION
and

HARDEMAN COUNTY, TENNESSEE
WHEREAS, Hardeman County, Tennessee and the State of Tennessee, Department of
on September 18, 1996, relating to the housing by
Correction, entered into Contract No.
Hardeman County of felons sentenced to the care, custody and control of the Tennessee
Department of Correction, and
WHEREAS, the said parties entered in a First Amendment To Incarceration Agreement
dated
,and
WHEREAS, the said parties desire to amend said Contract in the manner described below,
NOW, THEREFORE, the parties hereby amend said Contract as follows:
Article is amended as follows:
a.

By deleting therefrom the foUowing:

"Facility" means a 1,504 bed medium security correctional institution, with
no donnitory housing, to be located in Hardeman County, Tennessee, and real property as
specified in Exhibit A.
b.

By substituting in lieu thereof the foUowing:

"Facility" means a 1,504 bed medium security correctional institution, to be
expanded to 2,016 beds, with no dormitory housing, to be located in Hardeman County,
Tennessee, and real property as specified in Exhibit A.

2.

Section 3.2 is amended as follows:
(a)

By deleting therefrom the following:
Hardeman County. at its expense. may expand the facility by an additional
512 beds. subject to the prior written Commissioner·s approval which shall
be at the Commissioner·s sole discretion.

(b)

By substituting in lieu thereof the following:
Hardeman County, at its expense, shall expand the facility by an additional
512 beds. for a total of 2.016 beds. Beds 1505 through 2016 shall be
completed and available for use in housing prisoners by January 1,1998.
Beds 1505 through 2016 shall be allocated to the State beginning January I,
1998, if the State provides written notice by July I, 1997 of its intent to
reserve such beds. Any other change in the State's allocation of beds 1505
through 2016 shall be in accordance with the provisions of Section 6.l(b).

3.

Section 6. (a) is amended as follows:
a.

By deleting therefrom the following:
Per Inmate Day
Per Diem Rate
$36.75
$26.52
$25.76
$22.35

Inmate Population
1 - 940
941- 998
999-1336
1337-1504
b.

By substituting in lieu thereof the following:
Per Inmate Day
Per Diem Rate
$36.75
$26.52
$25.76
$22.35
$24.66

Inmate Population
1- 940
941- 998
999-1336
1337-1504
1505-2016

2

4.

Section 6.1 (a) is further amended by adding the following after $32.28:
Assuming a total State Inmate population at the facility of 2016. the blended Per
Diem Rate per Inmate is $30.34.

5.

Section 6.1 (b) is amended by adding the following language at the end:
"Hardeman County shall notify the Commissioner and the Select Oversight
Committee on Corrections of the source and nature of inmates from other
jurisdictions being housed at the Facility."

6.

Section 6.2 is amended as follows:
a.

By deleting therefrom the last sentence.

b.

By substituting in lieu thereof the following:
Thereafter. the Debt Service Per Diem shall be $7.46 for the fIrst 1504 State
Bed Days and $4.90 for State Bed Days 1505-2016.

7

Article 7 is amended by adding the following sentence at the end of the first
sentence:

If the State elects to exercise its option to purchase the Facility before January 1.
1998. the purchase price reflected in Exhibit B shall be increased to reflect the
actual expenditures for the construction of the 512 bed expansion at the time of the
purchase.
8.

Section 14.24 is amended as follows:
a.

By deleting therefrom the following:
Year 1
Year 2
Year 3
Year 4

b.

$ 690.200
$21.687.000
$22.777.000
$21.476.400

By substituting in lieu thereof the following:
Year 1
Year 2
Year 3
Year 4

(State's FY ending June 30.1997)
(State's FY July 1. 1997 - June 30, 1998)
(State's FY July I, 1998 - June 30. 1999)
(State's FY July 1. 1999 - May 31, 2000)

3

$

690.200
$25.127,300
$29.854.500
$28,125.300

9.

10.

11

Exhibit B is amended as follows:
a.

By deleting Exhibit B in its entirety.

b.

By substituting in lieu thereof the attached 4 pages labeled Exhibit B.

Exhibit F is amended as follows:
a.

By deleting Exhibit F in its entirety.

b.

By substituting in lieu thereof the attached 1 page labeled Exhibit E.

The other terms and provisions not amended hereby shall remain in full force and
effecL

IN WITNESS WHEREOF. the parties have by their duly authorized representatives set
their signatures.
HARDEMAN COUNTY

STATE OF TENNESSEE
DEPARTMENT OF CORRECTION

BY:~~\)~
Donal Campbell. Co missioner
State of Tennessee
County of J)a \If eboD
Before me, the undersigned. a Notary Public of the State and County aforesaid. personally
appeared Donal Campbell, with whom I am personally acquainted (or proved to me on the basis
of satisfactory evidence). and who, upon oath, acknowledged himself to be Commissioner of the
Department of Correction for the State of Tennessee, ,the within named bargainor, and that he. as
such Commissioner, being authorized so to do, executed the foregoing instrument for the
purposes therein contained, by signing the name of the State of Tennessee by himself as
Commissioner of the Department of Correction.
Witness my hand, at office, this ~-t:h. day of ~, 1997.

a~ ffloaA..Q

NOtaI)4ll1bii;

My Commission Expires:
11-~S-aOCO

4

State of Tennessee
County of Ha rdeman

Before me, the undersigned, a Notary Public of the State and County aforesaid, personally
appearedDon w. CliffFwith whom I am personally acquainted (or proved to me on the basis
of satisfactory evidence), and who, upon oath, acknowledged himself to be County EX~futive of
Hardeman County, Tennessee, the within named bargainor, a
,and
that_he, as such County ExecutiV~being authorized so to do, executed the foregoing
instrument for the purposes therein contained, by signing the name of the StWS~,,"dtt'Rt"lJatM by
haselfas County Executiye .
County of Hardeman

Witness my hand, at office, this -2..:th.. day of

My Commission Expires:
5/24/97

APPROVED;
STATE OF TENNESSEE

eC::\~.f').. ~~~

Jbhn Ferguson
Commissioner of Finance and Administration

William R. Snod
Comptroller of th

5

April

, 1997.

LIST OF EXHIBITS

Exhibit B

Purchase Price Schedule

Revised ExhibitF

State's Maximum Liability

6

EXHIBITB

HARDEMAN COUNTY CORRECTIONAL FACILITY
PURCHASE OPTION PRICES
IASSUMPTIONS:
llnltlal PrinclJHlI- Based on Bonds being Issued on June 1, 1997 In the amount of the inlllal principal ($48.400.000)
,
amortized on a monthly basis for 240 months or 20 years for monlhs 1 through 7. Annual rate of 5.80% utnlzed for debt service.

;purchase Opllon Price - Based on remaining principal due al the end of the month denoled under the monU, column.

Purchase Option

Month

Prle.

(R.'.n 10 lISt dly 01 monlh)
Jun·97
JuI·97
Aug-97
Sep-97
oct·97
New·97
oec.97
Jan.98
Feb-98
Mar·98
Apr·98

May·98
Jvn·98

JvI-98
Aug·gs
5ep-98

oct·98
Ncw·98

Deo-98

4

5
6
7

8
9

10
11
12
13
14
15
t8
17
18
19

Jan.99

20

Feb-99

21

Mar·99
Apr.99
May·99

22

Jun·99

JuI·99
Aug.99
Sep-99

oct·99

23
24
25
2$
27
28
29

NO\I·99

30

Deo-99

31
32
33
34
35

JlIn.OO

Feb-OO
Mar-OO
Apr-OO
May-OO

36

Jun.(l()
JuI.Ol)

37
38

Aug.OO
Sep.(l()
Od-OO
Ncw-OO

39

JlIn.Q'
JvI.Q'
Aug.Qt
5ep.Ot

40
41
42
43
44
45
48
47
48
49
!50
51
52

Od.Q'
NO\I.Q'

54

Ollc.()t
Jan.()2

58

oeo-oo
Jan.Ot
Feb-Q'

Mar·cn
Apr.o,

May·Cn

51.152.982.55
50.982.687.44
5O.611.S.25
50.639.82398
50.468.847.65
!lO.293.236.23
50.118.765.66
49.943.49'.96
49.767.350 99
49.590.358.67
49.412.510.89
49.233.80350

55

57

MlJr.()2
Apr.()2
May.()2
JlIn.()2
JvI.Q2
Aug-02

58

Oct.()2

5'.322.~51

53

Feb-02

sep.02

$48.292.741.91
48.184.96540
48.076.667.97
47.967.847.10
47.1158.500.27
47.748.62493
47.636.21652
58.161.717.18
58.025.297.81
!:l7.1188.21870
57.7!50.477.24
57.612.070.03
57.472.993.85
57.333.245.47
57.192.821.63
57.051.719.09
56.909.934.55
56.767.46471
58.824.306 27
58.480.45590
56.335.910.26
56.190.665.97
56.044.719.67
55.898.067.91
55.7!50.707.45
55.602.634.68
55.453.846.23
55.304.33884
55.154.108.42
M.OO3.152.10
54.851.466.15
54.699.047.05
54.545.891.26
54.391.995.22
54.237.355.34
54.081.968.04
53.925.829.70
53.768.936.70
53.611.265.37
53.452.Bn.07
53.293.693.10
53.133.744.76
52.973.023.35
52.811.525.11
52.649.246.29
52.468.183.13
52.322.331.63
52.157.668.59
51.992.249.57
51.82$.010.92
51.658.968.79
51.491.119.29

1
2
3

59

eo

6'
62

63
64
65
Page 1

EXHIBITB

HARDEMAN COUNTY CORRECTIONAL FACILITY
PURCHASE OPTION PRICES
ASSUMPTIONS:
Inilial Principal- Based on Bonds being Issued on June 1, 1997 In the amount of the Inilial principal ($48.400,000)
amortIZed on a monlhly basis for 240 months or 20 years for months 11hrough 7. Annual rale or 5.80% ulillzed for debt service.
Adjusted P,lnc'IHI'· Based on ending balance or principal remaining January I, 1998 (S47,6J8,218.S2) plus
additional principal (Bonds Issued on January I, 1998) amortized on a monlhly basts for 233 monlhs beginning In lhe 8Ih month.
Purchase Option Price - Based on remaining principal due allhe end olthe month denoled under Ihe monlh column.

MonUI

IRa'a,.. 10 'nl dav of monlh)
Nov.()2

66

0ec>02

67
68
69
70
71
72
73
74
75
76

Jan.03
Feb-ll3
Mar-ll3
Apr-ll3
May-03
Jun-03
JuI.03
Aug-ll3
5ep.()3

0Ct-ll3
Nav-ll3
Deo.()J

77
78
79

Jan-G4
Feb-04
Mar-04

60

Apr.Q4
May.Q4

83

Jun.()4

85

Jut.04
Aug-04

88
87
88
69
90
91
92
93
94

Sep.()4

0Ct-04
Nav-04
Dec-04
"-05

Feb-05
Mar.()5
Apr.()5
May.()5
Jun.05

Jul-05
Aug-05
5ep-05

0Ct-05
Nov·05

0l»05
Jan.06
Feb.Q6
Mar.()6
Apr.()6
Mey.()6
Jun.()6
Jul.08
Aug.()6

s.oa

0Ct.()6
Nov-o&
Dec-08
.ran-07
Feb-07
Mllr-07
Apr-07

Mey-07
Jun-07

JuI.01
Aug-07
6ep.()7
OCt-07
Nov-07

Det:-07
Jan-08

Feb-08
Ma,·08

al

82
84

95
96
97
98
99

100
101
102
103
104

105
106
107
108

109

"0
111

112
113
114
115
118
117
118

U9
120
121
122
123
124
125
126
127
128

129
130

49.054,232 37
48.873.783.31
48.692.462.13
48.510.29461
48.327.228.51
48.143.273.59
47.958.431.56
47.772.69813
47.588.062.98
47.398.527.76
47.210.088.13
47.020.733.70
46.830,466.06
48,639.278.79
48.447.187.48
48.254.127.58
48.0E0,154.ea
45.865,244.24
45.669.391.74
45.472.592.62
45.214,842.30
45,078.136.18
44.878.469.66
44,675.836.08
44,474,236 78
44.271.681.07
44.068.106.25
43.863.56758
43.658.040.30
43.451,51965
43.244.000.81
43.035.478.96
42.825.949.26
42.815.406.83
42..em.846.78
42.191,264.18

41,977.654. "
41.763,011.59
41.547.331.63
41.330.60921
41.112.83931
40,894,018.84
40.874,136.74
40.453,183.68
40.231,183.14
40.008.099.34
39,783,931.30
39,558,691.81
39.332.357.64
39.104.92952
38,876.402.18
3IUl48.770.25
38,418.028.48
38,184,171.41
37.951.18372
37.717,069.97
37.481,854.73
37.245,482.51
37.007.987.82
36. 769.305.15
38,529.488 94
36.288.51362
36.046.37356

35.803.083.20
35.558.57882

EXHIBITB

HARDEMAN COUNTY CORRECTIONAL FACIUTY
PURCHASE OPTION PRICES
ASSUMPTIONS:
Initial Princlpal- Based on Bonds being Issued on June t. 1997 In the amount of the Initial principal ($48,400,000)
amortized on a monthly basis for 240 months or 20 years for months t through 7. Annual rate of 5.80% ulllized for debt service.
Adjusted Prlnclpal- Based on ending balance or principal remaining January 1, 1998 ($47.638.218.52) pius
additional principal (Bonds Issued on January 1. 1998) amortized on a monthly basis for 233 monlhs beginning In lJle 8th month.
Purchase Option Price - Based on remaining principal due allhe end of the month denoled under !he monlh column.

PurWH OJltIon

Month

CR.'." 10 last d8y or month)
APt.Q8
May.Q8
Jun.Q8
Jul·08
Aug·08
Sep.()8

Oct·08
Nov·08
0IIc.Q8

PrIc.
131
132
133
134
135

138
137

138

May-09

139
140
141
142
143
144

Jun-09

145

Jul-09
Aug-09

5ep.09
Oct.()9
Nov.()9

146
147
148
149
150

[)ee.OO

151

Jan-09
Feb-09
Ma,.()9
A!lI.()9

Jan·l0
Feb-l0
Mar-l0
Apr-l0
May-l0
Jun. 10
Jul.l0
Aug-l0
5ep.l0
Od-l0
Nov-l0
0ec>10

Jan· 11
Feb-II
Ma,·l1
Apt-"
May. I 1

JlltI-ll
Jul·ll
Aug·"
Sep-11

Oct· 1I

Nov-II
0ec-11
Jan.12

Feb-12
Mar·12
A!lI.12
May.12
Jun.12
JuI-12
Aug.12
Sep-12

Oct·12
Hoy-12
oec.12

Jan-13
Feb-13
Mar.13
Apr-13
May-13

Jun.13
Jul.13

Aug.13

35.312.908 76
35.066.053.30
34.618.004.71
34.568,757.21
34.318.305.02
34.066.642.31
33.813.763.23
33.559.661.91
33.304.332.42
33.047.76684
32.789.96521
32.530.91552
32.210.613 76
32.009.053.88
31.146.22919
31.482.13538
31.216.76452
30.950.111.03
30.662.166.72
30.412.93135
30.142.392.66
29.870.546.38
29.597.36611
29.322.90566
29.041.ll!l8.54
26.769.958.34
28.491.47862
28.211.652.91
21.930.474.12
27.647.937.49
27.364.034 87
27.018.759.66
26.792.105.81
26.!04.06647
26.214.634.94
25.923.804.49
25.631.56838
25.337.919 78
25.042.851.66
24.146.357.79
24.448.430.67
24.149.063.56
23.848.249.52
23.545.98154
23.242.252.60
22.931.055 64
22.630.38356
22.322.229.23
22.012.58548
21.701.445.13
21.388.800.93
21.074.645.62
20.758.971.89
20.441.712.40
20.123.039.18
19.802.766.62
19.480.945.48
19. 157.S68 B6
18.832.629.26
1S.506.119.12
18.178.030.84
17.848.35881
17.517.089.35
17.184.220.76
16.849.743.31

152

153
154
155
158
151
158

159
160
161
162
163
164
1~

166
167
166
169
170
171
172
173
174
115
116

177
118
119
180
181
182
183
184
185

186
187
188
189
190
191
192
193
194
195
P~3

EXHIBITB

HARDEMAN COUNTY CORRECTIONAL FACILITY
PURCHASE OPTION PRICES
ASSUMPTIONS:
InlUal Prtnclpal - Based on Bonds being Issued on June " 1997 In the amount of the Initial principal ($48.400.000)
amortized on a monthly basis for 240 months or 20 years for months 1 through 7. Annuat rale of 5.80'1(, ulllized for debt service.
AdJusled Prfnclpat- Based on ending balance of principal remaining January I, 1998 ($47.638.218.52) plus
additional principal (Bonds Issued on January 1. 1998) amortized on a monthly basis for 233 months beginning In the 8th month.
Purchase Option Price· Based on remaining principal due althe end of the monlh denoted under the month column.

Purchase Option
Price

Monlh
IRefe,.. to last day of monthl
Sap-13
(lQ.13
Nov·13
0ee-13
Jan·14
Feb-14
Mar·14

196
199

200

Apt·14

201
202
103

May·14
Jun·14

204
205

Jul.14

106
207
208

Aug. 14
5ep-14
(lQ·14

Nov·14
Dec-14
Jan. 15
Feb-15
Mar·15

Apt·15

215
216
217
118
219
220
221
222
223
224
225
226

Jul·15

12.707.653 93
12.351.539.14
11.993.104.33
11.634.139.39
11.212.836.54
10.909.787 40
10.544.983.52
10.118,416.43
9.810.017.59
9.439.958.45
9.068.05039
8.694.344 79
8.318.832.94
7.941,508.11

209
110
211
212
213
214

May·15
Jun. 15
Aug·15
Sap-15
0cl.15

16.513.64922
16.115.930 68
15.836.57982
15.495.588 78
15.152.94960
14.808.65434
14.482.894.99
14.115.083.50
13.765.151.79
13.414,75173
13.062.055 18

198
197

7.562.155 54

Jut. 16

230

Auo-16
Sap-18
0cl·16
Nov· IS
Dec-1S
Jan.17
Feb-17

231
232
233
234
238
237

1.181.31Hl
6.798.541.86
6.413.812 99
6.027.338.86
5.638.936 48
5.248.658.82
4.85lI.49081
4.482.42933
4.066.46322
3.668.583.28
3.168.160.24
2.867.044 83
2.483.381.70
2.051,739.46
1.650.15068
1.240.59189

Mar·17

238

829.05357

Apt·17
May·17

239
240

415.528.14
10.00)

Nov.15
0ee-15
Jan. 18
Feb-18
Mar·18
Apt.18
May.18
Jun-16

221
228
229

235

Page 4

Exhibit F

Incarcerllllon Agreemenl • Hardeman Counly. Tennessee
FY98·97
30

30

June

31
31
30
31
30
31
31
28
31
30
31
30

July
August
September
October
November
December
January
February
Marcil
Aprtl
May
June

365

Tolal
FY9B·99
July
August
Seplember
October
November
Docomber
Jllnuary
February
March
April

30

May
June

385

Tolal

FV99·2O
31
July
31 Augusl
30 Seplomber
31 Oclober
30 November
3t December
31 January
29 February
Marcil
31
Aprl
30
31
May
338

500

Total
FV97·98

31
31
30
31
30
31
31
28
31
30
31

Operallng P.,
Inmate
Populallon
Diem Rale
0$38.75
551.250.00

551.250.00
Operating Per
Inmale
Population
Diem Rate
0130.34
1000
1504
1504
1504
1504
1504
2016
2018
2016
2018
2016
2016

Tolal

Operating Per
DIem Rale
0$36.76
DablSeMca
Par Diem Rate
0$7.48

111,900.00

Debt Service
Per Dlam Rille
0$7.48

6,250.00

Misc. MeulC8l

20.800.00

DeblSeMce
Por DIem Rale
014.90
Operellng Per
Diem Rale
0$32.28

19,679,0 IO.2B

4.870,019.68

453,243.28

1.957.999.68
1.957,999.68
1.894.838.40
1,957,999.88
1.894.838.40
1.957.999.88
1,957.999.88
1.768.5 I5.84
1.957.999.68
1.89".838.40
1.957,999.68
1.956,628.00

488.220.18
488.220.IS
451.180.80
488.220.16
451,180.80
466.220.18
488,220.16
421.102.08
488.220.16
451.180.80
468,220.16
"51.180.80

23,115,558.80

5.489.388.40
Debl Service
Per Dlam Rei.
0$7.48

2.021,745.60
2,021,745.80
1,958.528.00
2,021,7"5.80
1,958.528.00
2.021,7"5.60
2.021.7"5.60
1.891.310.40
2.021.745.60
1.958.528.00
2.021,7"5.80

468.220.18
488.220.18
451,IBO.BO
"88.220.18
451.tBO.80
488.220.18
488.220.18
438.141.44
466.220.18
451,180.80
488,220.18

21.913,113.80

5.053,224.98

Debt Service
Por Diem Rale
0$7.46
014.90
Mlsc.Olllcer
Tlavel
Misc. MOdlcsl

940
58
338
188
512
20lS

Per Diem Blondad
Rala97·8B PerOfem
FY97·9a
36.75 34.545.00
28.52
1.538.18
25.78 8.706.88
22.35 3.754.80
2"-88 12,625.92
30.34

Per Dfem
Allo98·99
ptus3.25%
37.84
27.38
26.60
23.08
25.48

19.679.010.28

4,670.019.68
"53.2"3.26
75,000.00
250,000.00
$25.127.273.22

Debt SelVlce
Per Diem Rale
0$4.90
77,627.30 Opelallng Pel
23,115,558.80
Diem Rele
77.827.30
76.123.19
0133.33
77,627.30
75.123.19 DeblSeMce
77.827.30 Per Diem Aolo
77,827.30
0$7.46
5,489.368.40
0$4.90
70,11".98
913,998.84
77.827.30 Misc. Ollicer
77."37.50
75, t23. t 9 TravoI13.25% Inllelorl
77.827.30
75,123.19
Misc. Medical
258,126.00
913.988.8" (3.25~ InilolOlt
$29.854,484.54
DebtSoMce
Per Diem Rile
0$4.90
77.627.30 Operallng Per
21.913,' 13.60
77,827.30
Diem Ral.
0$34.41
75.123.19
77,627.30
75,123.19 Debl SelVlce
77,827.30 Per Dlam Rala
77,827.30
0$7.48
5.053,224.96
72,819.09
0$4.90
841.379.75
77,627.30 Misc. Olllcer
73.291.37
75,123.19 TrovaI13.25% Innalol)
77,627.30
Misc. MedJcal
244.304.58
13.25% Inllalor)
841,379.75
128,125.31".2"

Tolal Three Veal Contract UabWIy
Inmale
Pop.

llt.900.00

$690.200.00

77,627.30
70.114.98
77.627.30
75,123.19
77.627.30
75,123.19

Debl Service
Pel Diem Ral.
0$7.48

651,250.00

Misc. Ofllcer
Traval

It 1.900.00

231.280.00
347.815.04
338.595.20
347,815.04
335.595.20
347,815.04
488.220.18
421.102.08
466,220.18
451.180.80
466.220.18
451,180.80

Operellng Per
Inmele
Populallon
Diem Rile
0$32.35
2018
2018
2018
2018
2018
2018
20'8
2018
2018
2018
2018

DebtSelVlc:e
Per DIem Rate
014.90

1,120,176.08
1,505.022.72
1,458,473.60
1.505,022.72
1.458.473.60
1,505.022.72
1.896, I28.84
1.712.832.32
1.898,128.64
1,834,963.20
1.896.128.84
1,694,B38.40

Operating Per
Inmale
Popuilitlorl
Diem Rete
0531.33
2018
20lS
20lS
201S
201S
2018
201S
20t8
2016
2018
2016
2018

Debt Service
Per Diem Ratll
0$7.48

$83,797.272.00
Blondod
PorDlom
FY98·"
35,887.71
1,588.15
B.98t.B5

3,876.83
13,038.28
31.33

PorDlom
Ralo99·20
plus 3.25%
39.18
28.27
27.48
23.83
28.29

Blanded
Per Diem
FY98099
38.628.91
1,839.77
9,282.02
4.002.83
13,459.94
32.35

TIlIRD AMENDMENT TO INCARCERATION AGREEMENT
by and between

THE STATE OF TENNESSEE, DEPARTMENT OF CORRECTION
AND
HARDEMAN COUNTY, TENNESSEE

lbis Contract, by and between the State ofTennessee, Department ofCorrection. hereinafter
referred to as the State. and Hardeman County. Tennessee. hereinafter referred to as the
Contractor. is hereby amended as follows:
Delete following Section in its entirety:
Section 2.1.

Tmm. This Contract is effective with its execution by all parties

and continues for three (3) years after the Service Commencement Date unless terminated
earlier in accordance herewith.
and insert the following in its place:
Section 2.

Tenll. This Contract is effective with its execution by all parties

and continues for six (6) years after the Service Commencement Date unless terminated
earlier in accordance herewith.
Delete following Section in its entirety:
Section 2.2.

Renewals. The State shall have the option to renew this Contract

upon the same terms and conditions for six (6) additional three (3) year tenns; provided,
however. that such option to renew may be exercised only if, at the time ofthe exercise of
the option, the Commissioner, in the Commissioner's sole discretion, detennines that the
available facilities and institutions ofthe Department are overcrowded. The State may
exercise its option to renew by giving Hardeman County 270 days advance written notice
of its intent to renew. If Hardeman County does not receive notice of the State's intent to
renew 270 days in advance, it shall notify the Commissioner ofCorrection and the
Commissioner of Finance and Administration of that fact by certified mail and the State
shall have an additional 30 days from receipt ofsuch notice within which to exercise its
option to renew
and insert the following in its place:

F:\ContradS\HCCF AmcndJ.doc

Section 2.2.

Renewals. The State shall have the option to renew this Contract

upon the same tenns and conditions for five (5) additional three (3) year tenns; provided,
however, that such option to renew may be exercised only if, at the time of the exercise of
the option. the Commissioner, in the Commissioner's sole discretion. determines that the
available facilities and institutions of the Department are overcrowded. The State may
exercise its option to renew by giving Hardeman County 270 days advance written notice
of its intent to renew. If Hardeman County does not receive notice of the State's intent to
renew 270 days in advance, it shall notify the Commissioner ofCorrection and the
Commissioner of Finance and Administration of that fact by certified mail and the State
shall have an additional 30 days from receipt of such notice within which to exercise its
option to renew
3.

Delete following Section in its entirety:
Section 14.24. Maximum Liability. Notwithstanding any provision contained
herein to the contrary, in no event shall the maximum liability to the State exceed:
Year I (State's FY ending June 30, 1997)
Year 2 (State's FY July I, 1997 - June 30, 1998)
Year 3 (State's FY July 1, 1998 -June 30,1999)
Year 4 (State's FY July I, 1999 -May 31,2000)

S 690,200
S25,127,300
S29,854,500
$28,125,300

In the event that the State exercises its option to renew, the annual maximum liability for
each year during any renewal period shall be calculated unilaterally by the State in the
manner shown on Exhibit F.
and insert the following in its place:
Section 14.24. Maximum Liability. Notwithstanding any provision contained
herein to the contrary, in no event shall the maximum liability of the State exceed:
Year I (State's FY ending June 30, 1997)
Year 2 (State's FY July 1, 1997 -June 30, 1998)
Year 3 (State's FY July I, 1998 -June 30, 1999)
Year 4 (State's FY July I, 1999 -June 30,2000)
Year 5 (State's FY July 1,2000 -June 30,2001)
Year 6 (State's FY July I, 2001-June 30,2002)
Year 7 (State's FY July 1,2002 - May 31, 2003)

F:\Contraets\HCCF Amend3.doc

$ 690,200
$25,127,300
$29,854,500
$30,561,700
$29,763,300
$30,382,100
$28,467,100

In the event that the State exercises its option to renew, the annual maximum liability for

each year during any renewal period shall be calculated unilaterally by the State in the
manner shown on Exhibit F
4.

Delete following Section in its entirety:
Section 10.5 Background Checks. Prior to employment with Hardeman County,
applicants shall be subjected to a thorough background investigation and, as to
Correctional Officer applicants only, psychological history. Criminal and employment
histories must go back a minimum of five (5) years. Said background investigations shall

be available to the State upon request. The State shall not provide NCIC background
checks.
and insert the following in its place:
Section 10.5 Background Checks.
(a) Prior to employment with Hardeman County, applicants shall be subjected
to a thorough background investigation and. as to Correctional Officer applicants only,
psychological history. Criminal and employment histories must go back a minimum of
five (5) years. Said background investigations shall be available to the State upon request.

(b) The Warden shall immediately cause a "Criminal History Request" from
the National Crime Information Center (NCIC) to be completed on each individual hired
to work at the Facility. The request shall be forwarded to the State and processed in
accordance with procedures established by the Commissioner. In no instance may an
employee be assigned to a post until the NCIC check has been completed; however, the
employee may participate in preservice training while the check is in process. The State
shall notify the Warden whether or not the employee is cleared for further consideration of
employment. The criminal history obtained from NCIC or FBI may be used solely for the
purpose requested, and may not be disseminated outside the Department of Correction or
the affected employee.
5.

Add the following as Section 6.8 and renumber any subsequent sections as necessary:
Section 6.8. Failure to Pay Health Care Providers. The Contractor shall be responsible for
making payments to the State's contract hospital and physicians providing services at the

F:\ContJllcts\HCCF AmendJ.doe

3

State's contract hospital within ninety (90) days of the invoice date for services to any
Inmate assigned to the Facility. When any such debt is more than ninety (90) days old, the
State reserves lite right to pay the provider and deduct the amount from payments due
from the State to lite Contractor hereunder.
6.

Delete following Section in its entirety:
Section 14.13. Notices. All notices shall be hand-delivered to Hardeman County or the
State's Liaison(s) or sent certified mail, return receipt requested to:
State:
Commissioner
Department ofCorrection
4'" Floor, Rachel Jackson Bldg.
320 6'" Avenue North
Nashville, Tennessee 37243-0465
Hardeman County:
Hardeman County Correctional Facilities Corporation
clo Weed, Hubbard, Berry & Doughty
424 Church Street, 29'" Floor
Nashville. Tennessee 37219
and insert the following in its place:
Section 14.13. Notices. All notices shall be hand-delivered to Hardeman County or the
State's Liaison(s) or sent certified mail, return receipt requested to:
State:
Commissioner
Department of Correction
4111 Floor, Rachel Jackson Bldg.
3206'" Avenue North
Nashville, Tennessee 37243-0465
Hardeman County:
Hardeman County Correctional Facilities Corporation
clo Weed, Hubbard, Berry & Doughty
201 Fourth Avenue North, Suite 1420
Nashville, Tennessee 37219

The other terms and conditions of this Contract not amended hereby shall remain in full force and
effect.

F:\Conl!aaS\HCCf AmcndJ.doc

4

IN WITNESS WHEREOF:
COUNTY, TENNESSEE:

DATE:

~;'J/..

y Nuckolls. County Executive

State of Tennessee
Countyof ~ o

)
)

Before me. the undersigned, a Notary Public ofthe State and County aforesaid, personally
appeared Sammy Nuckolls. with whom I am perwnally acquainted (or proved to me on the basis of
satisfactory evidence). and who. upon oath. acknowledged bimselfto be County Executive ofHardeman
County. Tennessee, the within named bargainor, and that he, as such County Executive. being authorized so
to do. executed the foregoing instrument for the purposes therein contained, by signing the name ofthe
County ofHardeman himself as County Executive.

Witness my hand, at office, this ~ day of

j~b\uQr~I--_"""1999.

... on ' ..~
i...:, t;a. 9:.",,";
.-"",.
...':
~
-:

......

~ ~ ~

-":

. ~tP>I!S~on Expires:
..:. -.... -

••••.. , ,;i,..I), ... L ...
"~.'

..

~

DEPARTMENT OF CORRECfION:

DATE:~
State of Tennessee
County of

..oa.v IdW""\.

)

)

Before me, the undersigned, a Notary Public ofthe State and County aforesaid, personally
appeared Donal Campbell. with whom I am personally acquainted (or proved to me on the basis of
satisfactory evidence), and who, upon oath. acknowledged himself to be Commissioner of the Department of
Correction for the State ofTennessee, the within named bargainor. and that he, as such Commissioner, being
authorized so to do, executed the foregoing instnunent for the purposes therein contained. by signing the

name ofthe County ofHardeman himselfas County Executive.
Witness my hand, at office, this

JO~YOf~o.r,/

.~

My Commission Expires:

-l.\-JS- ~OOO
F:\Ccntracts\HCCF Amcnd3.doc

s

APPROVED:
DEPARTMENT OF FINANCE AND ADMINISTRATION:

DATE:

o

G. Morgan, Comptroller of e Treasury

F:\ContnsclS\HCCF Amend3.doc

S- '3-oU

DATE:~

6

,
'",nate
Plip.

PorDie..
BeAded
Rate 97·98 PerDfem

940

36.75

34545

58

28.52

338

25.78

168

22.~

512

24.E6

1538.18
8706.88
3754.8
1282592

2018

Per Diem
Rille 98-99
piLe 3.25%
37.94
27.38
26.60

Blended

Per01em
35667.113

.588.1502
8989.8536
23.oe 3876.831
25A6 13036.262

30.34284

I"er Diem
81ended
Rakt 99-00 Per Diem
phIS 3.25'%
39.18 36826.9132
28.27 \639.16508
21.46 9282.02384
~.83

4002.82801

26.29

13lt5~.9409

QI604beda
0512~

lise. Med::aI

liSC. otIicer I Travel:

hree (3) Y~r Cormtt &leftSIC.n

$C?~\

BeR:cd

PerDera
396S6.5S7S
1765.~7S4

9995.72446
.3·O.eD7i5
14-1&4.8842

32.3469591!

33."556338

33.9845241

34.8341378

$23••7,396

$24.397.242

325,007,113

$25,831.3G2

$i.46

4.106.461

918,221
$5,024.882

".Q95.242
915.712
$5,010,964

4,,095.242
915.712
$5.01G.95£

4.OtS,242

.1.90

915.712
$f.01:).954

S2t8.S1£

$213,171

$210,006

1211,(06

$18,~

$81.953

$14,002

.,102

29.238.641
1d).
$2'-802

28,763.325

30.3&2.134
12 rna

a1.016.~14

$3O.3IZ.134

$28,461,120

31.328775

otaI per DIem Payment
ebI 6e1Viee Per DIem Rate:

PcrUiem
Per Diem
PCl~m
B~
Dlended
ReleGO-01 . PerDtem Rale01-02 PerDtem Rate D2·(J3
pkJI2.5%
plus 2.5%
pus2.SOA.
421.
40.16 37147.586
41.16 38891.2756
3O.4S
28.98 16&).75921
29.70 1722.77819
28.15 9514.07444
29.51
28.85 9751.9263
24.42 4102.89871
25.66
25.03 4205.4711e
26.95 137i6.4:tiS
28.3J
21.62 t4t41.~

12 ....
$29.763.325

111tOS.

TDOC ADMIN

Fax:61S-741-460S

Mar 13 '00

DON S1JM)QVIST
GOVERNOR

lS:36

P.02

DONALCAMPDELL
COMMISSIONER
srATEorD~ESSll

DEPARTMENT- OVCORUCTION
FOtJRTH PLOOR.KACJilLoMCJ(ioN affiLDINC
, .' NASIlVIU.i., TENNIS8IE3'1JG-046S
(615) '41S.II00 .st. 4IOOlI 0ft'Ift (6115)531-Dm Fa

Milich 13, 2000

The Honorable John D. F~soil
Commissioner ofF~ m;ui Ad~tion:
Pirst Flnnr, StsteiC-spiij)1 "

Nashville, Tenit~s~ 3724~'

"j;:'

',';.

'~:,'~

"

:;,'~.:;':-:',",'

and
The HonombJe lObO :0. Morgan'

Comptroller ofthe.treasury,'

.

First Floor. State',Capito}·',

"

Nashville, Tenn~.'~7243
Ocntlemen:

The Depamncm of CO~1jun ~~,ruUy requeata yo~"appn:)Yal :of All unmdmcnt to
renew the contractbetweeii· the :St.te'of Tennessee, Department of Correction, and

to

Hardeman, COtlDty; Tennenee,
hoUSe inmates sentenced to the care, custody, and
r.nntMl of the dep8l't1Jient at the Hardeman County Corr~tiopal Facility. Pununnt to
Article 2, Section 2, ofthe,subject'cOn~t, I p.lve detcnninQd that the available facilities
and institutions of the Dcpartmcn~ of COrrCction ore l11: capacity.
[hank you for yourconsiderattonofdtis,iri1portanl mll1lt:J:.

Donal Campben
DC:RR

FOURTH AMENDMENT TO INCARCERATION AGREEMENT
by and between
THE STATE OF TENNESSEE, DEPARTMENT OF CORRECTION
AND
HARDEMAN COUNTY, TENNESSEE
This Contract, by and between the State of Tennessee, Department of Correction, hereinafter
referred to as the State, and Hardeman County, Tennessee, hereinafter referred to as the
Contractor, is hereby amended as follows:
1

Delete Section 2.1 in its entirety and insert the following in its place:
Section 2.1. Ig[m. This Contract is effective with its execution by all parties
and continues for six (6) years and one (1) month after the Service Commencement
Date unless terminated earlier in accordance herewith.

2.

Delete Section 14.24 in its entirety and insert the following in its place:
Section 14.24. Maximum Liability. Notwithstanding any provision contained
herein to the contrary, in no event shall the maximum liability of the State exceed:
Year 1 (State's
Year 2 (State's
Year 3 (State's
Year 4 (State's
Year 5 (State's
Year 6 (State's
Year 7 (State's

FY ending June 30, 1997)
FY July 1, 1997 - June 3D,
FY July 1, 1998 - June 30,
FY July 1, 1999--=:-'Ji..irie 30,
FY July 1, 2000 - June 30,
FY July 1, 2001 - June 30,
FY July 1, 2002 - June 30,

$
1998)
1999)
2000)
2001)
2002)
2003)

690,200
$25,127,300
$29,854,500
$30,561,700
$29,763,300
$30,382,100
$31,171,000

In the event that the State exercises its option to renew, the annual maximum liability
for each year during any renewal period shall be calculated unilaterally by the State in
the manner shown on Exhibit F.
The other terms and conditions of this Contract not amended hereby shall remain in full force
and effect.

1

95/39/2903

13:11

7316586896

85/38/2883 12:48

615-741-46B5

DENTON AND C/:!RV

PAGE

93/ElS

TN CORR ADMIN SERV

PAGE

El3/1!J5

IN WITNESS WHEREOF:

HARDEMAN COUNlY, TENNESSEEi

oil?- ~
~~
ca1Mr

DATE: 5/30/03

,/

Stzlte of Tennessee

)
)

County of BARnEt'''N

May

~2003.

Jl·e1Jt

Notary PubIc

O,uAQ

DEPARTMENT OF C:O~CTION:

~~mm::
StateafT:L&V'd'
Countyaf
I ~

)
)

6er-on: me, the undersigned, B Notaay Pubhc of the Sta1e Bnd County aforesaid, personally
appeared Quenton I. White, With wham I am personally acquainted (Dr proved 10 me on the basis rX
satUifcJdory evidence), and wh~ upon oaUt, etkncwledged himself to be Commissioner of the
Department of Corred:ion for the State of Tennessee, the within named bargainor, and that he, as such
Comm~iQner, being C1Uthori~ed so to do, exeQIted tm! fbregoing Instrument for ttle purposes therein
contained, by signing the name of tI'le COUnty rZ Hardeman himself as County Executive.
WItness my hand, at office,

My Commission Expires:

~ily cI (Y\Q L(

,2003.

O{\~ -(Y). --(YJ~

Notary ~

My Comml$slon expIres SEP. 25.2004

2

APPROVED:

DATE:~

John G.

DATE:~

3

EXHIBIT F
•• I
_

.:

...

c .

~. ~.<- ,>"~f"·.-_~'~~~

'.

:-. i (1 {I·' .; I~< ~ ;, \_.

~'\

'

,',

•

~~

, :.

.
....

; . I:·:;;)~!~:::']i~')!~~' \;::.>::

I I :.

~

,-

~ ~ i~;: :,'j L···:·
, :

04116103

CPI
I ""-------------Source:

U.S. Department of Labor
Bureau 01 Labor Statistics
Washington, D.C. 20212

BLENDED PER OIEM CALCULATIONS

Consumer Price Index
All Urban Consumers· (CPI·U)

Inmate
Per Diem Rate
Population 611/02·5131/03

U.S. City Average
Allllems

940
58
338
168
512

Annual Percent Change:

2000
2001
2002

3.36%

2.85%

$41.60
$30.01
$29.16
$25.30
$27.91

Blended
Per Diem

Per Diem Rate
611/03·5131/04

$39,104.00
$1,740.58
$9,856.08
$4,250.40
$14,289.92

Blended
Per Diem

$40,120.70
$1,785.84
$10,112.34
$4,360.91
$14,661.46

$42.68
$30.79
529.92
$25.96
$28.64

1.58%
2,016

$34.35

$35.24

COMPOUND ANNUAL GROWTH

Per Diem Rate
611/04 - 5131105

The compound 8Mual growth in the consumer price index for all urban consumers
over the past three years (2000 to 2002) is 2.60%.

1999
2000
2001

2002

166.6
172.2
177.1
179.9

$43.79
$31.59
$30.70
$26.63
$29.38

0.033613
0.028455
0.015810

Blended

Per Diem Rate

Per Diem

6/1/05 - 5/31/06

541,163.84
$1,832.27
$10,375.26
$4.474.29
515,042.66

Blended
Per Diem
542,234.10
$1,879.91
$10,645.02
$4,590.63
$15,433.76

$44.93
$32.41
$31.49
$27.33
$30.14

0.077879 Total Growth for 3 YeafS
$36.15

0.025960 Compound Annual Growth

I

537.09

FISCAL YEAR CONTRACT CALCULA110NS

52,131.237.36

Total Per Diem Payment:

Debt Service Per Diem Rate:

@ 1504 beds

512 beds
Total Debt Service
@

$7.46
$4.90

Miscellaneous Medical:
M'scellaneous Officer Travel Expenses:
TOTALS BY FISCAL YEAR:

,

526.056,508.02 526t 661 ,098.91

S25,052,443.73

.t. 1C&.461 A.:

4.095,241.60

918.220.80

915.712.00

840.~.s8,OO

5,02-1.682.24

5.010,953.60

4,599.094.40

10,000.00

120.000.00

120.000.00

110.000.00

5,000.00

60.000.00

60,000.00

55,000.00

336.595.20
22'.068.00
557,683.20

:~ ;': .;~/::;~.~~:-.;

',',

,

:ilt~.=:·_:\~;V,-~·,

3.758.64640

~

.....

-

...

.... ~' ... 1 ~~.

FIFTH AMENDMENT TO INCARCERATION AGREEMENT
by and between
THE STATE OF TENNESSEE, DEPARTMENT OF CORRECTION
AND
HARDEMAN COUNTY, TENNESSEE

This Contract, by and between the State of Tennessee, Department of Correction, hereinafter
referred to as the State, and Hardeman County, Tennessee, hereinafter referred to as the
Contractor, is hereby amended as follows:
1.

Delete Section 2.1 in its entirety and insert the folloWing in its place:
Section 2.1. Term. This Contract is effective with its execution by all parties
and continues for nine (9) years after the Service Commencement Date unless
terminated earlier in accordance hereWith.

2.

Delete Section 2.2 in its entirety and insert the follOWing in its place:
Section 2.2. Renewals. The State shall have the option to renew this Contract
upon the same terms and conditions for four (4) additional three (3) year terms;
prOVided, however, that such option to renew may be exercised only if, at the time of
the exercise of the option, the Commissioner, in the Commissioner's sole discretion,
determines that the available facilities and institutions of the Department are
overcrowded. The State may exercise its option to renew by giving Hardeman County
270 days advance written notice of its intent to renew. If Hardeman County does not
receive notice of the State's intent to renew 270 days in advance, it shall notify the
Commissioner of Correction and the Commissioner of Finance and Administration of that
fact by certified mail and the State shall have an additional 30 days from receipt of such
notice within which to exercise its option to renew.

3

Delete Section 14.24 in its entirety and insert the follOWing in its place
Section 14.24. Maximum Liability. Notwithstanding any provision contained
herein to the contrary, in no event shall the maximum liability of the State exceed:
Year 1 (State's FY ending June 30, 1997)
Year 2 (State's FY July I, 1997 - June 30, 1998)
Year 3 (State's FY July 1, 1998 - June 30, 1999)
Year 4 (State's FY July 1, 1999 - June 30, 2000)
Year 5 (State's FY July 1, 2000 - June 30, 2001)
Year 6 (State's FY July I, 2001 - June 30, 2002)
Year 7 (State's FY July 1, 2002 - June 30, 2003)
Year 8 (State's FY July 1, 2003 - June 30, 2004)
Year 9 (State's FY July 1, 2004 - June 30, 2005)
Year 10 (State's FY July 1, 2005 - May 31, 2006)

$ 690,200
$25,127,300
$29,854,500
$30,561,700
$29,763,300
$30,382,100
$31,171,000
$31,261,200
$31,852,100
$29,816,600

In the event that the State exercises Its option to renew, the annual maximum liability
for each year dUring any renewal period shall be calculated unilaterally by the State in
the manner shown on Exhibit F.

H:\Fiscal-ComlUcts\3292I \HCCF Amend 5 Simole.doc

1

The other terms and conditions of this Contract not amended hereby shall remain in full force
and effect.

IN WITNESS WHEREOF:
AN COUNTY, TE~NESSEE:

M

L~
,..
---. .
Don difft, County Execu

DATE:

~

1- 1~·05

State of Tennessee
COunty of
HARDEMAN
Before me, the undersigned, a Notary Public of the State and COunty aforesaid, personally
appeared Don Clltn:, with whom I am personally acquainted (or proved to me on the basis of satisfactory
evidence), and who, upon oath, acknowledged himself to be County Executive of Hardeman COunty,
Tennessee, the within named bargainor, and that he, as such County Executive, being authorized so to
do, exeaJted the foregoing Instrument for the purposes therein contained, by signing the name of the
County of Hardeman himself as County Executive.
Witness my hand, at office, this

J4f! day of ~_J_u_l'::"Y
'-

--I

ission Expires:
,~--;~=.#-_ 3/21/07

DAiE:~
eorTermas~}~
)
County of ~V'~.....1.._ _-J)

Before me, the undersigned, a Notary PUblic of the state and County aforesaid, personally
appeared Quenton 1. White, with whom I am personally acquainted (or proved to me on the basis of
satisfactory evidence), and who, upon oath, acknowledged himself to be Commissioner of the
Department of Correction for the State of Tennessee, the within named bargainor, and that he, as such
Commissioner, being authorized so to do, executed the foregoing instrument for the purposes therein
contained, by signing the name of the County of Hardeman himself as County ExecutiVe.

Witness my hand, at office, this

My Commission Expires:

l'l-tbmy of ~ 2003.
.
n~'r\ J a dYl. .fV)ClD"---f
~IiC

<

-

~Commlsslon &PIres SfP. 26. 2004
H:\P!.cal-CODlJaCt$\32921\HCCF AJnead S Simple.doc

2

APPROVED:
DEPARTMENT OF FINANCE AND ADMINISTRATION:

M.

~J~9:'$---=-.-c-_----

r of the Treasury

DATE:

AU6 8 6 2993

DATE:~

:'

H:\Fiscal-ecntrac:u\3292I \HCCF Amend 5 Siml'le.dnc

3

EXHIBIT F

04/16/03

CPI
Source:

BLENDED PER DIEM CALCULATlONS

u.s. Department of Labor

Consumer Price Index

Bureau of Labor Statistia
Washington, D.C. 20212

An Urban Consumers - (CPI-U)
U.S. City Average

Per Diem Rate
Inmate
Population 6/1/02·5131/03

Blended
Per Diem

Per Diem Rate

611/03 - 5/31/04

Blended
Per Ofem

Aflltems
940

Annual Percent Change:

58

2000
2001

3.36%

2002

1.58%

338
168
512

2.85%

$41.60
530.01
$29.16
525.30
$27.91

2,016

W

CO_M_PO_U_N_O_A_N_N_U_A_L_G_R_O_WT_H

166.6
172.2
177.1
179.9

Per Diem Rate
6/1104 - 5131105
$43.79
$31.59
$30.70
$26.63
$29.38

0.033613
0.028455
0.015810

FISCAL YEAR CONTRACT CALCULATIONS

$28.64

$40,120.70
$1.785.84
510.112.34
$4,360.91
$14.661.46

$35.24

534.35

0.077879 Total Growth for 3 Years
0.025960 Compound Annual Growth

I

$42.68
$30.79
$29.92
$25.96

_

The compound annual growth in the consumer price index for all urban consumers
over the past three years (2000 to 2002) is 2.60%.
1999
2000
2001
2002

539,104.00
$1,740.58
$9,856.08
$4,250.40
514,289.92

Blended
Per Diem
$41.163.84
$1,832.27
$10,375.26
$4,474.29
515,042.66

Per Diem Rate

611/05·5/31/06
$44.93
$32.41
$31.49
$27.33
$30.14

Blended
Per Diem
$42,234.10
$1.879.91
510,645.02
$4,590.63
$15,433.76

$37.09

$36.15

I
$2.131.237.36

Total Per Diem Payment:
Debt Service Per Diem Rate:

$7.46
$4.90

"""i&collanoous Modica
Miscellaneous Officer Travel expenses:

TOTALS BY FISCAL YEAR:

i', j'

$26,056.508.02 $26,661.088.91

$25.052,443.73
~o

5.024,682.24

4.095.241.(1)
915.712.00
5,010.953.60

4,599,094.40

10.000.00

120,000.00

120,000.00

110,000.00

5,000.00

60,000.00

GO,aOD.OO

55,000.00

336.595.20
221.058.00
557,583.20

4,106.461 44
918,220,80

3.758,646

540,446.00

RFS 329.21..Q01

SIXTH AMENDMENT TO INCARCERATION AGREEMENT
by and between
THE STATE OF TENNESSEE, DEPARTMENT OF CORRECTION
AND
HARDEMAN COUNTY, TENNESSEE

This Contract, by and between the State of Tennessee, Department of Correction, hereinafter referred to
as the State, and Hardeman County, Tennessee, hereinafter referred to as the Contractor, is hereby
amended as follows:
1.

Delete Section 2.1 in its entirety and insert the following in its place:
Section 2.1. Term. This Contract is effective with its execution by all parties and continues for
twelve (12) years after the Service Commencement Date unless terminated earlier in accordance
herewith.

2.

Delete Section 2.2 in its entirety and insert the following in its place:
Section 2.2. Renewals. The State shall have the option to renew this Contract upon the same terms
and conditions for three (3) additional three (3) year terms; provided, however, that such option to
renew may be exercised only if, at the time of the exercise of the option, the Commissioner, in the
Commissioner's sole discretion, determines that the available facilities and institutions of the
Department are overcrowded. The State may exercise its option to renew by giving Hardeman
County 270 days advance written notice of its intent to renew. If Hardeman County does not receive
notice of the State's intent to renew 270 days in advance, it shall notify the Commissioner of
Correction and the Commissioner of Finance and Administration of that fact by certified mail and the
State shall have an additional 30 days from receipt of such notice within which to exercise its option
to renew.

3.

Delete Section 10.5(b) in its entirety and insert the following in its place:
(b) The Warden shall immediately cause a "Criminal History Request" from the National Crime
Information Center (NCIC) to be completed on each individual hired to work at the Facility. The
request shall be forwarded to the State and processed in accordance with procedures
established by the Commissioner. In no instance mayan employee be assigned to a post until
the NCIC check has been completed; however, the employee may participate in preservice
training while the check is in process. The State shall notify the Warden whether or not the
employee is cleared for further consideration of employment. The criminal history obtained from
NCIC or FBI may be used solely for the purpose requested.

4.

Insert the following as Section 10.5(c):
(c) A Security Addendum required by Title 28, Code of Federal Regulations Part 20, is appended
hereto as Exhibit G and incorporated by reference herein. The security addendum shall be
included in any subcontract for management of the facility.

5.

Delete Section 14.24 in its entirety and insert the following in its place:
Section 14.24. Maximum Liability. Notwithstanding any provision contained herein to the
contrary, in no event shall the maximum liability of the State exceed:
(Period
(Period
(Period
(Period

ending June 30, 1997)
July 1, 1997 - June 30,1998)
July 1, 1998 - June 30, 1999)
July 1, 1999 - June 30, 2000)

$ 690,200
$25,127,300
$29,854,500
$30,561,700

RFS 329.21-001

(Period July 1, 2000 - June 30, 2001)
(Period July 1, 2001 - June 30, 2002)
(Period July 1, 2002 - June 30, 2003)
(Period July 1, 2003 - June 30, 2004)
(Period July 1, 2004 - June 30, 2005)
(Period July 1, 2005 - May 31, 2006)
(Period June 1, 2006 -June 30, 2006)
(Period July 1, 2006 - June 30, 2007)
(Period July 1, 2007 - June 30, 2008)
(Period July 1, 2008 - May 31, 2009)

$29,763,300
$30,382,100
$31,171,000
$31,261,200
$31,852,100
$29,816,600
$ 2,732,648
$33,308,817
$34,183,219
$31,963,555

In the event that the State exercises its option to renew, the annual maximum liability for each year
during any renewal period shall be calculated unilaterally by the State in the manner shown on
Exhibit F.
The other terms and conditions of this Contract not amended hereby shall remain in full force and effect.

2

RFS 329.21-001

IN WITNESS WHEREOF:
AN COUNTY, TENNESSEE

State of Tennessee
County of tWdelWL 1'\
Before me. the undersigned. a Notary Public of the State and County aforesaid. personally
appeared Don Clifft. with whom I am personally acquainted (or proved to me on the basis of satisfactory
evidence). and who. upon oath. acknowledged himse" to be County Executive of Hardeman County.
Tennessee. the within named bargainor. and that he. as such County Executive. being authorized so to
do. executed the foregoing Instrument for the purposes therein contained. by signing the name of the
County of Hardeman himself as County Executive.
1--

• 20.!k-.

~ &. ~""ot-ary-p-Ub-h-C

My Commission Expire

DATE:

Ie &A;{r;h

Before me, the undersigned. a Notary PUblic of the State and County aforesaid, personally
appeared Gayle Ray, Acting Commissioner, with whom I am personaily acquainted (or proved to me on
the basis of satisfactory evidence). and who. upon oath. acknowledged himself to be Commissioner of the
Department of Correction for the State of Tennessee. the within named bargainor. and that he. as such
Commissioner. being authorized so to do. executed the foregoing instrument for the purposes therein
contained. by signlng,\p@\vpR;,'~~ County of Hardeman himself as County Executive.

'. ~~. --".00. ".

Witness rn fty.ld. at

,r,"",-

DffIC~~\ ~day Of~. 20~.

NOTARY
PUBUC ;'
I

II

bFTEll~CO
My ComrniuJon ExpInls SEP.

20. 2008

RFS 329.21-001

APPROVED:
DEPARTMENT OF FINANCE AND ADMINISTRATION:

DATE:

DATE:

Cf~

'-I(-()c,

4

Exhibit F

01m.u;

CPI
Sllurce

IJ S Department of L~bor
Bureau 01 L~o, SI~"'IIC'
W..honglon. DC 20212

BlENDED PER DIEM CAlQllAOONS
Consumer Pnce lnde.
All Urban Con.um.... · (CPfUj
US C,ly A..rag.

lnmmlO Po. Diem RaiD
PopulaUon 6/1.115 ·5J31m6

D1ondod
POI Diem

Po. Diem Rmlo
6J101l6 • 5J3UI1

Blendod
Per Diem

All horns

$4493
53241
13149
$2733
$30 14

940
58

Annual Perc en' Chaoge

33B
2003

2004
2lIl5

2 ~%
266%
339%

168
512
2,016

$4223420
11,ll7978
110,64362
14,591 44
$15,43168

$4618
13331
53237
1~09

$3098

131.ll9

S43,~31

11,932 04
110,93951
$4.719 oa
$15.860 8B
138.12

COIIPOUltD AIINUAL GRownt

The compoond annual grov.th in the consumer puco lndel ror all urban cnn\umer'l
..., Iho paSllhroe ye.,. (200310 2lIl5) os 2 78%
179.9
1840
1889
195 3

Per Diom Rele
6/11111 ,5iJ1iUl1
$4746
$34 24

0022790
00<e630
003300J

S33 27
~e7

S31B4
0083301 TOlal G,_h fa' 3 Years
0027767 Compound Annual GrO¥>1h

FISCAl YEAR CONmACT CALCULAnONS

Ubc:allaneo.. Officer Tr......1Expo_
TDTAlS BY FISCAl YEAR:

14878
$3519
$34 19
12967

532n

Blended
Po. Dlom
$45,ass 36
12.040 95
111.566 20
$4,9851t
116.754 79
540.11

\.

Telal Po. Diem Paymonl:

Ubc:allanoo.. Uodlu':

$44,61506
$1,96575
51124363
14,B50 21
116,3:)161

Pel Diem ROle
61tiUll . 5iJU19

$39.18

I

Dobl SOMtll Po. Diem RoIO: @1504 beds
@512bods
Tolal Delli SeMce

Blended
Po. Dlom

$2,Jl15.188.n

$746
$490

336,59520

128.117,1lSJJi9 $2B,978,53&.s2 S27.199046ll.41
4,095,241.60
915,712.00
5.010,953.&0

4.106,461 44
918.220 III
5,l12Ui82.24

3,750,646 Q)
BQl,448oo

ut,859.2tl
111,0011.110

1ZO,llllll.llll

1ZO,llllll.llll

110,Dllll.llll

6O,lIIII.lIlI

lilI,lIIII.lIlI

55,Dl1l1.m

75,284.00

5,l1111.l1l1

" .. ,

4,599,094040

FEDERAL BUREAU OF INVESTIGAnON
CRIMINAL JUSTICE INFORMATION SERVICES
SECURITY ADDENDUM
The goal of this document is to provide adequate security for criminal justice systems while under the
control or management of a private entity, the Contractor. Adequate security is defined in Office of
Management and Budget Circular A-130 as "security commensurate with the risk and magnitude of harm
resulting from the loss. misuse. or unauthorized access to or modification of information.•
The intent of this Security Addendum is to require that the Contractor maintain a security program
consistent with federal and state laws, regulations. and standards (including the CJIS Security Policy in
effect when the contract is executed), as well as with policies and standards established by the Criminal
Justice Information Services (CJIS) Advisory Policy Board (APB).
This Security Addendum identifies the duties and responsibilities with respect to the installation and
maintenance of adequate internal controls within the contractual relationship so that the security and
integrity of the FBI's information resources are not compromised. The security program shall include
consideration of personnel security, site security, system security and data security.
The provisions of this Security Addendum apply to all personnel. systems, networks and support facilities.
supporting and/or acting on behalf of the government agency.
1.00 Definitions

1.01 Administration of criminal justice· the detection, apprehension. detention, pretrial release, post·trial
release. prosecution. adjudication. correctional supervision. or rehabilitation of accused persons or
criminal offenders. It also includes criminal identification activities; the collection, storage, and
dissemination of criminal history record information; and criminal justice employment.

1.02 Agency Coordinator (AC) - a staff member of the Contracting Government Agency. who manages
the agreement between the Contractor and agency.

1.03 Contracting Government Agency (CGA) - the govemment agency. whether a Criminal Justice
Agency or a Noncriminal Justice Agency. which enters into an agreement with a private contractor
subject to this Security Addendum.

1.04 Contractor - a private business, organization or individual which has entered into an agreement for
the administration of criminal justice with a Criminal Justice Agency or a Noncriminal Justice
Agency.
1.05 Control Terminal Agency (CTA)- a dUly authorized state or federal criminal justice agency with
direct access to the National Crime Information Center (NCIC) telecommunications network
providing statewide (or equivalent) service to its criminal justice users with respect to the various
systems managed by the FBI CJIS Division.
1.06 Control Terminal Officer (CTO)- an individual located within the CTA responsible for the
administration of the CJIS network for the CTA.
1.07 Criminal Justice Agency (CJA)- The courts, a govemmental agency. or any subunit of a
governmental agency which performs the administration of criminal justice pursuant to a statute or
executive order and which allocates a substantial part of its annual budget to the administration of
criminal justice. Stale aM federal Inspectors General Offices are included.

1
;:;&W%.Qtw,X

""""""

.AMtl

tt

.~

.,~&:::: .3.:,:::!..),.&>.•

=, ..

;;;g...(

!F.hpll&

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.t PM

"-~"

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.-....4sa .. ~ ,...."",&.".~!r:;::::;iJ,,:*;;:w;UUI=

'$&iW.QiQiQ..Q. Q•QiQ /

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Z

Wb .."

1.08 Noncriminal Justice Agency (NCJA) - a govemmental agency or any subunit thereof that provides
services primarily for purposes other than the administration of criminal justice.
1.09 Noncriminal justice purpose· the uses of criminal history records for purposes authorized by federal
or state law other than purposes relating to the administration of criminal justice. including
employment suitability. licensing determinations, immigration and naturalization matters. and
national security clearances.
1.10 Security Addendum - a uniform addendum to an agreement between the govemment agency and a
priva~e contractor, approved by the Attorney General of the United States. which specifically
authorizes access to criminal history record information. limits the use of the information to the
purposes for which it is provided, ensures the security and confidentiality of the information
consistent with existing regulations and the CJIS security Policy. provides for sanctions. and
contains such other provisions as the Attorney General may require.
2.00 Responsibilities of the Contracting Government Agency
2.01 The CGA entering into an agreement with a Contractor is to appoint an AC.
2.02 In instances in which responsibility for a criminal justice system has been delegated by a CJA to a
NCJA, which has in turn entered into an agreement with a Contractor. the' CJA is to appoint an
Agency Liaison to coordinate activities between the CJA and the NCJA and Contractor. The
Agency Liaison shall, inter alia, monitor compliance with system security requirements. In instances
in which the NCJA's authority is directly from the CTA. there is no reqUirement for the appointment
of an Agency Liaison.
2.03 The AC will be responsible for the supervision and integrity of the system, training and continuing
education of employees and operators. scheduling of certification testing and all required reports by
NCIC.
2.04 The AC has the following responsibilities:
a. Understand the communications and records capabilities and needs of the Contractor which is
accessing federal and state records through or because of its relationship with the CGA;
b. Participate in related meetings and provide input and comments for system improvement;
c. Receive information from the CGA (e.g.• system updates) and disseminate it to appropriate
Contractor employees:
d. Maintain and update manuals applicable to the effectuation of the agreement, and provide them
to the Contractor;
e. Maintain up-to-date records of employees of the Contractor who access the system. including
name. date of birth. social security number. date fingerprint card(s) SUbmitted, date security
clearance issued, and date certified or recertified (if applicable);

f. Train or ensure the training of Contractor personnel. If Contractor personnel access NCIC,
schedule the operators for a certification exam with the CTA staff. Schedule new operators for
the certification exam within six (6) months of employment. Schedule certified operators for recertification testing within thirty (30) days prior to the expiration of certification. Schedule
operators for any other mandated class;
g. The AC will not permit an un-certified employee of the Contractor to access an NCIC terminal:

2
(

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;;:;::;z

i

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h. Where appropriate, ensure compliance by the Contractor with NCIC validation requirements;

i. Provide completed Applicant Fingerprint Cards on each person within the Contractor who
accesses the System to the CJA (or, where appropriate, CTA) for criminal background
investigation prior to such employee accessing the system; and

j. Any other responsibility for the AC promulgated by the FBI.
2.05 The CTA shall ensure that all NCIC hot file transactions and Interstate Identification Index (III)
transactions be maintained on an automated log for a minimum of six months. This automated log
must identify the operator on III transactions, the agency authorizing the transactions, the
requester. and any secondary recipient. This information can be captured at log on and can be a
name, badge number, serial number, or other unique number.
3.00 Responsibilities of the Contractor

3.01 The Contractor shall maintain a security program which complies with this Security Addendum.
3.02 The Contractor shall assign a Security Officer accountable for the management of this security
program. This person shall coordinate with the CGA to establish the security program.

3.03 The Contractor shall document the security program in a Security Plan. The Security Plan shall
describe the implementation of the security requirements described in this Security Addendum, the
associated training program, and the reporting guidelines for documenting and communicating
security violations to the CGA. The Security Plan shall be subject to the approval of the CJA. even
in instances in which the CGA is the NCJA.

3.04 The Contractor shalt provide for a Security Training Program for all Contractor personnel engaged
in the management, development, operation, and/or maintenance of criminal justice systems and
facilities. Annual refresher training shall also be provided.
3.05 The Contractor shall establish a security violation response and reporting procedure to discover,
investigate, document, and report on all security violations. Violations which endanger the security
or integrity of the criminal justice system or records located therein must be communicated to the
CGA immediately. Minor violations shall be reported to the eGA on a periodic basis, but in no
instance less than quarterly. See Section 8.01.
3.06 The Contractor's facilities will be subject to unannounced security inspections performed by the
CGA. These facilities are also subject to periodic FBI and state audits.
3.07 The security plan is subject to annual review by the CJA and the Contractor. During this review,
efforts will be made to update the program in response to security violations, changes in policies
and standards. andlor changes in federal and state law and technology.

3.08 The Contractor and its employees will comply with all federal and state laws. rules, procedures and
policies (inclUding the CJIS Security Policy in effect when the contract is executed) formally
adopted by the FBI and the CJIS APB, including those governing criminal history record
information.
4.00 Site Security

4.01 The Contractor shall dedicate and maintain control of the facilities, or areas of facilities, that support
the eGA.

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- - - - - - - - - - - - - - - -----.-_.

_

..

4.02 All terminals physically or logically connected to the computer system accessing NCIC and the
criminal justice files must be segregated and screened against unauthorized use or observation.

5.00 System Integrity
5.01 Only employees of the Contractor, employees of CGA. the Agency Liaison, and such other persons
as may be granted authorization by the CGA shall be permitted access to the system.
5.02 The Contractor shall maintain appropriate and reasonable quality assurance procedures.
5.03 Access to the system shall be available only for official purposes consistent with the appended
Agreement. Any dissemination of NCIC data to authorized employees of the Contractor is to be for
their official purposes.
5.04 Information contained in or about the system will not be provided to agencies other than the CGA or
another entity which is specifically designated in the contract.
5.05 All criminal history record information requests must be envisioned and authorized by the appended
Agreement. A current up-to- date log concerning access and dissemination of criminal history
record information shall be maintained at all times by the Contractor.
5.06 The Contractor will ensure that its inquiries of NCIC and any subsequent dissemination conforms
with applicable FBI/NCIC policies and regUlations, as set forth in (1) the Security Addendum; (2) the
NCIC 2000 Operating Manual; (3) the Policy and Reference Manual: (4) the CJIS Security Policy;
and (5) Title 28, Code of Federal Regulations, Part 20. All disseminations will be considered as
"Unclassified. For Official Use Only."
5.07 The Contractor shall protect against any unauthorized persons gaining access to the equipment,
any of the data. or the operational documentation for the criminal justice information system. In no
event shall copies of messages or criminal history record information be disseminated other than as
envisioned and governed by the appended Agreement.

6.00 Personnel Security
6.01 Appropriate background investigations must be conducted on all Contractor employees and the
Contractor's vendors which provide system maintenance support.
6.02 Thorough background screening by the CGA is required. This investigation includes submission of
a completed applicant fingerprint card to the FBI through the state identification bureau. Slate and
national record checks by fingerprint identification must be conducled for all personnel who
manage. operate. develop, access and maintain criminal justice systems and facilities. Record
checks must be completed prior to employment.
6.03 When a request is received by the CTA before system access is granted:
a. The CGA on whose behalf the Contractor is retained must check stale and national arrest and
fugitive files. These checks are to be no less stringent than those performed on CJA personnel
with access to NCIC.
b. If a record of any kind is found, the CGA will be formally notified. and system access will be
delayed pending review of the criminal history record information. The CGA will in tum notify the
Contractor-appointed Security Officer.

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c. When identification of the applicant with a criminal history has been established by fingerprint
comparison. the CGA's designee will review the matter. A Contractor employee found to have a
criminal record consisting of any felony convictions or of misdemeanor offenses which constitute
a general disregard for the law is disqualified. Applicants shall also be disqualified on the basis
on confirmations that arrest warrants are outstanding for such applicants.
d. If an adverse employment determination is made, access will be denied and the Contractorappointed Security Officer will be notified in writing of the access denial. This applicant will not
be permitted to work on the contract with the CGA. Disqualified employees and applicants for
employment shall be notified of the adverse decisions and the impact that such records had on
such decisions.
6.04 The investigation of the applicant's background shall also include contacting of employers (past or
present) and personal references.
6.05 The Security Officer shall maintain a list of personnel who successfully completed the background
investigation.
6.06 The CGA will ensure that each Contractor employee receives a copy of the Security Addendum and
executes an acknowledgment of such receipt and the contents of the Security Addendum. The
signed acknowledgments shall remain in the possession of the eGA and available for audit
purposes.
6.07 The CGA shall ensure that each Contractor employee authorized to access CJIS network terminals
or information provided therefrom is specially trained in the state and federal laws and rules
goveming the security and integrity of criminal justice information.
6.08 All visitors to sensitive areas of Contractor facilities must be escorted at all times by a Contractor
employee with clearance. Names of all visitors shall be recorded in a visitor log. to include date and
time of visit, name of visitor, purpose of visit, name of person visiting, and date and time of
departure. The visitor logs shall be maintained for five years following the termination of the
contract.
7.00 System Security

7.01 Transmission. processing. and storage of CJA information shall be conducted on dedicated
systems. Increased reliance should be placed on technical measures to support the ability to
identify and account for all activities on a system and to preserve system integrity.
7.02 The system shall include the follOWing technical security measures:
a. unique identification and authentication for all interactive sessions:
b. if warranted by the nature of the contract, advanced authentication techniques in the form of
digital signatures and certificates, biometric or encryption for remote communications;
c. security audit capability for interactive sessions and transaction based logging for messagebased sessions; this audit shall be enabled at the system and application level;
d. access control mechanisms to enable access to be restricted by object (e.g., data set, volumes.
files, records) to include the ability to read, write, or delete the objects;
e.ORI identification and access control restrictions for message based access;
f. system and data integrity controls;

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g.access controls on communications devices:
h.confidentiality controls (e.g., partitioned drives, encryption, and object reuse).
7.03 Data encryption shall be required throughout the network passing through a shared public carrier
network.
7.04 The Contractor shall provide for the secure storage and disposal of all hard copy and media
associated with the system to prevent access by unauthorized personnel.
7.05 The Contractor shall establish a procedure for sanitizing all fixed storage media (e.g., disks, drives)
at the completion of the contract and/or before it is returned for maintenance, disposal or reuse.
Sanitation procedures include overwriting the media and/or degaussing the media. If media cannot
be successfully sanitized it must be returned to the CGA or destroyed.
8.00 Security violations
8.01 Consistent with Section 3.05, the Contractor agrees to inform the CGA of system violations. The
Contractor further agrees to immediately remove any employee from assignments covered by this
contract for security violations pending investigation. Any violation of system discipline or
operational policies related to system discipline are grounds for termination, which shall be
immediately reported to the AC in writing.
8.02 The CGA must report security violations to the CTa and the Director, FBI, along with indications of
actions taken by the CGA and Contractor.
8.03 Security violations can justify termination of the appended agreement.
8.04 Upon notification. the FBI reserves the right to:
a. Investigate or decline to investigate any report of unauthorized use;
b. Suspend or terminate access and services, inclUding the actual NCIC telecommunications link.
The FBI will prOVide the CTO with timely written notice of the suspension. Access and services
will be reinstated only after satisfactory assurances have been provided to the FBI by the CJA
and Contractor. Upon termination. the Contractor's records containing criminal history record
information must be deleted or returned to the CGA.
8.05 The FBI reserves the right to audit the Contractor's operations and procedures at schedUled or
unscheduled times. The FBI is authorized to perform a final audit of the Contractor's systems after
termination of the Security Addendum.
9.00 Miscellaneous provisions
9.01 This Security Addendum does not confer. grant, or authorize any rights, privileges. or obligations on
any persons other than the Contractor. CGA, CJA (where applicable), CTA, and FBI.
9.02 The following documents are incorporated by reference and made part of this agreement: (1) the
Security Addendum; (2) the NCIC 2000 Operating Manual; (3) the Policy and Reference Manual;
(4) the CJIS Security Policy; and (5) Title 28, Code of Federal Regulations, Part 20. The parties are
also subject to applicable federal and state laws and regulations.

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9.03 The terms set forth in this document do not constitute the sole understanding by and between the
parties hereto: rather they provide a minimum basis for the security of the system and it is
understood that there may be terms and conditions of the appended Agreement which impose
more stringent requirements upon the Contractor.
9.04 This Security Addendum may only be modified by the FBI, and may not be modified by the parties
to the appended Agreement without the consent of the FBI.
9.05 All notices and correspondence shall be forwarded by First Class mail to:
Assistant Director
Criminal Justice Information Services Division, FBI
1000 Custer Hollow Road
Clarksburg, West Virginia 26306

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FEDERAL BUREAU OF INVESTIGATION
CRIMINAL JUSTICE INFORMATION SERVICES
SECURITY ADDENDUM
CERTIFICATION
I hereby certify that I have read and am familiar with the contents of (1) the Security Addendum; (2) the

TIME Manual; (3) the CJIS Security Policy; and (4) ntle 28, Code of Federal Regulations, Part 20, and
agree to be bound by their provisions.
I recognize that criminal history record information and related data, by its very nature, is sensitive and
has potential for great harm if misused. I acknowledge that access to criminal history record information
and related data is therefore limited to the purpose(s) for which a government agency has entered into
the contract incorporating this Security Addendum. I understand that misuse of the system by, among
other things: accessing it without authorization; accessing it by exceeding authorization; accessing it for
an improper purpose: using, disseminating or redisseminating information received as a result of this
contract for a purpose other than that envisioned by the contract, may subject me to administrative and
criminal penalties. I understand that accessing the system for an appropriate purpose and then using,
disseminating or redisseminating the information received for another purpose other than execution of the
contract also constitutes misuse. I further understand that the occurrence of misuse does not depend
upon whether or not I receive additional compensation for such authorized activity. Such exposure for
misuse includes, but is not limited to, suspension or loss of employment and prosecution for state and
federal crimes.

Signature of Contractor Employee

Date

-Signature of Contractor Representative

Date

---------_.
Organization and Title

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