A resolution accepting $5,300,468.76 in compromise and settlement of the Metropolitan Government's claim against the State of Tennessee, Department of Correction.

Whereas, on October 1, 1994, the Tennessee Department of Correction (TDOC) capped its reimbursement payments for housing convicted felons for non-contract counties and facilities to $35.00 per day and then later determined that the Metropolitan Government was therefore only entitled to be reimbursed $35 per day for housing convicted felons at any of its detention facilities except the Metropolitan Davidson County Detention Facility / Corrections Corporation of America (MDCDF/CCA); and

Whereas, in 1995, the Metropolitan Government began requesting TDOC to fund the cost of planning, programming and designing additional correctional capacity at the old Deberry Facility site in Antioch as anticipated in the contract between the Metropolitan Government and TDOC executed under the County Correctional Incentives Act on January 12, 1989; and,

Whereas, on April 9, 1996, the Department of Law filed a claim against the TDOC before the Tennessee Claims Commission requesting reimbursement of the difference between its actual per diem cost of housing convicted felons in its facilities other than the MDCDF/CCA and the $35.00 per day cap reimbursement rate imposed by TDOC; and,

Whereas, after investigation, the Department of Law believes that the settlement outlined in Sections 1 through Section 3 is fair and reasonable, and recommends that the claim be compromised and settled in the amount of $5,300,468.76.

Now, therefore, be it resolved by the Council of The Metropolitan Government of Nashville and Davidson County:

Section 1: The Metropolitan Department of Law is authorized to accept the amount of $5,300,468.76 in compromise and settlement of its claim against TDOC in accordance with the attached Settlement Agreement.

Section 2: The payment shall be in two installments, with the first installment of $2,585,471.35 due on November 15, 2000, which shall be used to employ consulting services to prepare bid specifications, including physical design and programming, for the construction and operation of additional correctional capacity on the old DeBerry property site deeded to the Metropolitan Government by the State of Tennessee, TDOC, pursuant to the County Correctional Incentives Act.

Section 3: The second installment of $2,714,997.41 shall be due on July 1, 2001.

Section 4: This resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Howard Gentry & Janis Sontany


Referred to: Budget & Finance Committee
Introduced: October 17, 2000
Adopted: October 17, 2000
Approved: October 18, 2000
By: mayor1.gif (1554 bytes)