Q&A
Increase in monthly costs for Keefe Group contract
1:10:04
ยท
127 sec
Council Member Julie Won questions James Conroy about the significant increase in monthly costs for the Keefe Group contract, from an initial $583,000 to $2,750,000.
- Conroy attributes the cost increase to post-COVID price changes and an unexpected increase in inmate population.
- He explains that contrary to initial projections of population decline, the current census is higher than pre-pandemic levels.
- Won expresses concern about the fourfold increase in costs and requests a detailed breakdown of the budget.
- Conroy agrees to provide updated budget lines for the current contract, as the subsequent renewals did not include itemized budget lines like the initial emergency contract.
Julie Won
1:10:04
Okay.
1:10:05
It is our understanding that the initial emergency contract with Keith, Keith had an annualized monthly cost of $583,000.
1:10:13
When Keith was granted a negotiated acquisition contract, the annualized monthly cost rose to 2,250,000.
1:10:21
And with renewal, it has now risen to 2,750,000.
1:10:25
Can you help us account for the rising monthly costs?
James Conroy
1:10:29
I think I mean, a couple of things, obviously, you know, coming out of, the the COVID, pandemic, you know, diff different costs and issues rose.
1:10:39
But also, I think our initial look into this was when when we entered into the emergency contract, there were projections that our population would decline, and that has not been the case.
1:10:53
And in fact, we're higher now, our census, than we were pre 2020, pre pandemic.
1:11:00
So, some I can't, again, I'll be more detailed.
1:11:03
I'll look into that and and get back to you on on specifically what you're talking about.
1:11:07
I know some of the associated costs were exactly that reason because the staffing that they were required to provide the services had to increase because our populations and the housing areas that were actually being utilized increased, contrary to initial projections of a decrease in population.
Julie Won
1:11:23
So you believe that your population has increased by fourfold because it went from 583,000 to 2,750,000.
James Conroy
1:11:31
I don't know that those would necessarily commensurate.
1:11:34
Like, it's not dollar for dollar.
1:11:35
I mean, there's other things associated with it, and we're you know?
Julie Won
1:11:39
Okay.
1:11:39
Please make sure you give us the breakdown because there's a significant increase in costs.
1:11:44
The initial 3 month emergency contract with Keefe Group provided itemized budget lines for staffing both on-site and at warehouses, commissary products, IT warehouses, build out, and freight.
1:11:55
The contract subsequent renewals have not included itemized budget lines.
1:11:59
Can you provide us with updated budget lines for the current contract?
James Conroy
1:12:04
Yeah.
1:12:04
We'll we'll follow-up with that.
1:12:05
I don't have those the the budget lines with us, but that's certainly, documentation we can provide to you.