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Tuesday, June 9, 2009
Resolutions part 1 - It starts with a tip
This is the story behind the story, a rare glimpse into how a newspaper investigation unfolds.
The story is this one, about $1.4 million that Butler County spent on utility payments at the county’s Resolutions minimum security jail without a vote from commissioners, and reportedly without commissioners’ knowledge. It was a deal to save the county money that ended up costing it dearly.
In the days, and possibly weeks, that follow, I will walk you through the process of this newspaper investigation, how it got here and where it’s going from here. So far, it has led to some interesting revelations. And I think there will be more to this story before we’re done.
I also don’t know if this has ever been done before. Newspapers are generally pretty guarded about their investigations. We don’t want our competition to know what we are working on, lest they swoop in and try to break the story first. We don’t usually want all our sources to know what we’re looking into, lest they start formulating a response.
So needless to say, I’m taking a chance here. But I think the payoff to our readers is worth it.
I plan to give you the information as I receive it, take you with me as I craft the story. And you may possibly even play a part.
It starts with a tip.
In this case, it was an anonymous tip. A former editor of mine used to say, “A reporter is only as good as his sources.” I have lots of them. Some work for the county. Some don’t. Some of them, I don’t even know who they are; I just get the occasionally phone call or letter with no return address nudging me in some direction.
The tip was that there was something funky going on between the county and Resolutions, Community Solutions, the company that manages the county’s jails. There weren’t a lot of details, but enough to capture my interest.
So the first step was to find out what county leaders were talking about. I put in a public records request for all e-mails to and from all three county commissioners and County Administrator Tim Williams regarding Resolutions.
Tomorrow, I will let you know what I received.
Permalink | Comments (5) | Post your comment | Categories: Butler County, Butler County Sheriff's Department, Butler County blog, County Commission, Resolutions
Botched jail savings deal cost nearly $400,000
First, this story:
Butler County commissioners say an unapproved deal struck by the former county administrator to pay for utilities at a now-closed jail in exchange for lower prisoner-boarding rates backfired, costing taxpayers more than $380,000.
Former county administrator Derek Conklin — who resigned last year amid questions about raises given to his wife — struck the deal in October 2007, which commissioners say they never approved.
It called for the county to take over utility payments at the minimum-security jail from Resolutions, Community Solutions, in exchange for lower rates to house prisoners. The county paid $1.4 million before commissioners realized the county was making the payments.
After the savings from the rate change are subtracted, it still cost the county roughly $382,385, according to current County Administrator Tim Williams.
Resolutions runs the 200-plus-bed jail and provides services at all the county jails.
Williams was finance director then, but said he played no part in the deal — “I don’t recall being involved at all,” he said — but he has since reviewed the numbers and said they didn’t add up.
“When I look at the history prior to the change in the rates, it doesn’t bear out,” he said. “We were probably at a loss at the get-go.”
Commissioners say they approved the rate change, but were unaware of the utility change. It only came to light during budget meetings in the fall, they said.
“It was agreed to by the administration and Resolutions, but never came to the commission for discussion or analysis,” said Commissioner Gregory Jolivette.
Resolutions officials said they sent a letter to the county requesting the change, and that commissioners agreed to it. They can’t vouch for what was communicated to whom in the county.
“Everything we’ve ever done in 20 years has been submitted up there and they either act on it or don’t,’ said Resolutions Vice President Steve Best. “As far as we were concerned, everything was OK.”
Then, this story:
With Butler County’s budget roughly $7 million in the red, county officials are trying to figure out if they can get back any of the roughly $382,285 lost in a 2007 deal that was supposed to save money.
This is just one issue being hashed out in closed-door negotiations between the county prosecutor’s office and the Millikin and Fitton Law Firm, which is representing Resolutions, Community Solutions.
In the 2007 deal, then-county administrator Derek Conklin agreed for the county to take over utility payments at the Resolutions minimum-security jail in exchange for Resolutions dropping their per-prisoner boarding rate. Commissioners say they were never apprised of the full deal, which cost roughly $1.4 million in utilities and lost the county money.
It’s still unclear who is responsible for the utility payments. County officials say Resolutions put the utilities back in their name in April, then switched it back to the county this month. Resolutions officials say the utilities are currently in both entities’ names. Hamilton utilities would not release the billing details Monday, June 8, citing privacy concerns. Conklin could not be reached for comment.
This is also just one factor in the county’s decision to re-bid the contract with Resolutions, which is worth more than $5 million a year.
Sheriff Richard K. Jones made the surprise decision to close the Resolutions jail Thursday, June 4, to give commissioners more leeway in their negotiations, he said. This caused the night-time relocation of roughly 300 prisoners, and the opening of the county-owned Court Street jail, which had been closed for more than a year.
Jones did not cite the utilities as an issue, but Chief Deputy Anthony Dwyer said it was part of the sheriff’s calculation along with all other parts of the Resolutions contract.
In addition to owning part of the jail, Hamilton-based Resolutions provides services at all the county jails such as food service, maintenance, counseling, supplies and running the commissary.
“We provide everything in the jails except security and medical,” said Resolutions Vice President Steve Best. The company employs roughly 150 people in the county, he said.
In exchange, they are paid $14.41 for every county prisoner up to 500, $13.21 for the next 400 prisoners and $12.79 each for every inmate over 900. With 1,040 inmates in the county’s jails in April, the county’s May bill for Resolutions was $428,490.
Commission President Donald Dixon said the present contract with Resolutions is nearly 20 years old and has ballooned from the original plan to provide a 70-bed drug and alcohol treatment program.
“It’s clear that we should be doing competitive bidding. It’s clear we should know what we’re paying for each service they’re providing,” Dixon said. “The goal is to get the best, lowest price for our taxpayers to provide those services.”
The contract may yet go to Resolutions, he and other commissioners said. “At no time is anyone dissatisfied with the work Resolutions has done,” said Commissioner Gregory Jolivette.
“We’ve had a great, 20-year relationship with Butler County,” said Resolutions President Jean Glowka. But she wouldn’t comment on whether that means they will lower their rates or take over utilities.
“I can’t answer any of that. Right now we’re in negotiations with the county,” she said.
