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

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

INCARCERATION AGREEMENT

by and between

STATE OF TENNESSEE, DEPARTMENT OF CORRECTION

and

HARDEMAN COUNTY, TENNESSEE

INCARCERATION AGREEMENT
THIS INCARCERATION AGREEMENT is made and entered into this I 8 day of
5e.9tcMD e.. f" ,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, construction and equipping
of a 1,504 bed medium security correctional facility with no dormitory 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
"Department");
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
"ACA" means the American Correctional Association.
"ACA 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.

"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 Tennessee 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 connection
with litigation that are applicable to the operation, management or maintenance of the
Facility or relate to the care and custody of Inmates 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 defined 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 thereof that 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.
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"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 of shift
assignment and number of days covered, relief factors and total staffmg.
"State" means the State of Tennessee, 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 of origin to provide aCCllrdl:e and timely information
to those who use it.

ARTICLE 2
TERM AND SCOPE OF THE CONTRACT
Section 2.1. Term. 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 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.

4

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, of the 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 normal 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. Prooertv 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 performance of Hardeman 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 Commissioner, the
Liaison(s) shall be the designated recipient of all information 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 County 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 County 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 of compensation 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
tn-provide the Liaison(s) upon request with a copy of the document within three working
days of the request.
(c)
to

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

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. Requests 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 of this 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)

(c)
Upon written request by the Liaison(s) or Commissioner, Hardeman
County shall compile information in the requested form and provide documentation
substantiating said information.
(d)
During construction of the facility, Hardeman County shall report in
writing monthly to the State concerning the status of the 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 State employee,
and any visitor at the Facility.

In addition to any other right of access provided herein, the State shall
(b)
have a right of access to the property and facility at all times during construction.
Section 4.9. Immediate Compliance.
If the Commissioner determines that Hardeman County is not
(a)
operating in compliance with a term or condition of this Contract which in the opinion of the
Commissioner adversely affects the security of the Facility or which may present a hazard
to the safety or health of Inmates 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 immediately correct the noncompliance.
(b)
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.
If the Commissioner disagrees with the proposed corrective action or
(c)
if Hardeman County fails to notify the Commissioner immediately of its proposed corrective
action, the Commissioner shall specify corrective action which Hardeman County shall
immediately 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.

In the event Hardeman County disagrees with the determination of
(e)
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.
(f)
Upon examination, if the Commissioner determines in his sole
discretion that noncompliance did not exist or that the corrective action required by the
Department 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.
8

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

ARTICLE 5
OPERATION OF FACILITY
Section 5.1. Obligations of Hardeman County. Hardeman County will perform all
a ts and service and (.; mply ~lh all duti and prQmise - d cribed and .in conformance
with 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;
_ 1 1 unUH~ and D partmen '1 policies, or in the discretion of
(b)
the State, policies approved by the Department which may not be identical to State or
Department policies;
Such other policies as the Department may make applicable to
(c)
Hardeman County in writing during the term of this Contract as same may be amended
during the term of this Contract. Any change in the scope of services as a result of this 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 of this 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 perform its obligations

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

(b)
In the event of disagreement between Hardeman County and the
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 ofInmates.
(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 1,
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 Departmental policies. Hardeman County will be
provided an opportunity to review the records and comment to the State on the first
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 Inmate 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 (1) riot and disturbance control
and contingency plan, and (2) disaster preparedness plans to the State within 60 days of
execution of this agreement. Hardeman Comity 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, fire 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 of execution of this
agreement. Said plans shall address Hardeman County searching for any escapee off the
grounds of the Facility and coordination with local and State authorities. Hardeman County
shall implement said plans regarding any search off the grounds of the Facility only if so
requested by the Commissioner.
(d)
During the term of this 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.
(e)
All plans required under this Section must be submitted to the State
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 implef!lentation 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.

(f)

All 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 term of this Contract.

(b)
The physical health, mental health, and dental services shall include
but not be limited to:
)
24 hour-a-<iay, 7 day-a-week on-call emergency medical 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 normal workday schedule;

(7)

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

(8)

maintenance of health 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 emphasizes 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 Inmate'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 of services described above.

12

(d) Hardeman County shall be responsible for security services for inpatient
care during a confinement period for which Hardeman County is financially responsible.
Hardeman County shall provide security at an off-site medical facility after the Department
assumes responsibility, if requested to do so by the Department and to be reimbursed by the
Department 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 term will be fixed for that term at an hourly rate
equal to the previous term'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
(I)
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 comes first. The Department will decide on the location of care 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.
(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 (l0) 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 1

$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 term's hourly rate multiplied by the inflator rate which shall be
calculated by averaging the consumer price indices for the immediately preceding three (3)
years.
Section 5.10.

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.

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

(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 of Inmate
mail in compliance with the Standards. Hardeman County will furnish first class pc...;.age to
14

Indigent Inmates for the mailing of legal documents to courts or legal counsel and otherwise
as required by federal or state constitution, statutes, or regulations.
Section 5.12. 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 Inmates
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 firearms and chemical agents, tactical unit procedure, inspections,
housing unit assignment plans, and internal and external movement control procedures and
periodic shakedowns.
Section 5.15. 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 of a 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.
(b)
Hardeman County agrees that no Inmate will be disciplined except as
in accordance with this Section.

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

15

Section 5.18. Use of Force. Notwithstanding any provision contained herein to the
contrary, no use of force shall be allowed by Hardeman County except as in accordance with
the Standards.
Section 5.19. Sentence Reduction Credits. Hardeman County shall submit sentence
credit reports to the Liaison(s) monthly with the decision on awarding or forfeiture of
sentence credits remaining solely with the Department.
Section 5.20. Sentence Computation. Hardeman County shall provide the State with
essential data and information relating to sentence computation. All sentence computations,
including calculation ofInmate release and parole dates, shall be done by the Department and
copies furnished to Hardeman County and Inmates. All other record keeping functions (e.g.
posting of disciplinary reports, filing, updating Inmate assignments, custody levels, etc.) are
the responsibility of Hardeman County.
Section 5.21. Records and Reports.
(a)
Hardeman County shall provide for comprehensive operations and
Inmate record and reporting systems for the Facility in compliance with the Standards to
include use of and data entry on TOMIS.
(b)
All computer equipment and communication lines necessary to
interface with TOMIS will be provided by the Department at no cost to Hardeman County.
(c)
Hardeman County will incorPorate all new systems developed to
report and track Inmate record information designated by the Commissioner.
(d)
Upon request, all records, reports and documents will be made
available immediately to the Liaison(s) for review. At the conclusion of the Contract, all
records shall be turned over to the Department.
(e)
Hardeman County shall prepare and submit to the Liaison(s) such
reports as are required by the State and will promptly notify the Liaison(s) whenever an
Inmate leaves the Facility on Court Order.
(f)
Documentation required to be maintained by Hardeman County shall
include: complaints against Hardeman County's staff; the number and nature of violent or
other disruptive incidents among Inmates or against staff; the number and nature of
disciplinary actions against staff; the rate at which Inmates complete programs successfully;
and, the number of Irunates productively active and the level of production.

Section 5.22. Escapes and/or Number ofEscapees. Hardeman County shall exercise
its best efforts to prevent escapes from the Facility. If the frequency of escapes (an escape
is defined as one prisoner vacating the premises, so that five prisoners escaping in a group
will 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 of the general public, the State may terminate
this Contract for cause. Said determinations shall be within the sole judgment of the
Commissioner.
Section 5.23. Policy Audit. Hardeman County shall 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 procedures 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 11.1) by Hardeman County, the State
shall have available the remedies set out in Article 11.
Section 5.24. Inmate Work.
(a)
Any minimum restricted or higher custody 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 in 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 assignments and re-assignments shall be made by
Hardeman County only after the job description has 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 shall 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 parties. In the
event an industry program is established pursuant to this section, 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 Departmental policies regarding
classification and reclassification services.
(b)
Hardeman County shall. be required to maintain classification
information which confonns to the Department's system.

'0:

.

or ' . 'g

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 5.31. 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 responsibility of the
Department.
__
Section 5.32. Assumption of Control.
. (a)
Hardeman County shall review and comment on the Department's
plan for assumption of control within fifteen (15) days following its receipt by Hardeman
County. The plan will provide for the orderly transfer of inmates from Hardeman County
to the Department under any conditions of tennination. Hardeman County agrees to
implement said plan upon written 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 Facility. The
Commissioner shall detennine whether and to what extent an emergency circumstance exists
in his sole discretion. The plan shall address Hardeman County's resumption of control after
the circumstances 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 County 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, uniforms, fingerprinting and photographing.
Section 5.35. Inmate Personal Property Space. Hardeman County shall follow
Departmental policy on Inmate personal property.
Section 5.36. Library. A general Inmate 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 of Paroles/Institutional 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 (15) 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 6
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 Inmate actually at the Facility for the
service period of July I, 1997 through June 30, 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 at the Facility.

Per Inmate Day
Per Diem Rate

Inmate Population

$36.75
$26.52
$25.76
$22.35

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

Assuming a total State Inmate population at the Facility of 1,504, the blended Per
Diem Rate per Inmate is $32.28.
During the initial term, after the first fiscal year, the 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 written notice of the change. The State may lower or raise the
State Bed Days in its sole discretion, for any reason or no reason including, but not limited
to, the State's dissatisfaction with any management subcontract. Notwithstanding any
provisions herein to the contrary, Hardeman County shall make available to the State all or
part of the Facility's capacity upon notice described herein and shall enter into no agreement
to the contrary. 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 assignment.
(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 Per 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 inmates 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 County 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 of an 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 of any 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
made in confonnance 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 above, 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. If a 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 of the 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 detennination
under Section 4.9(f), or disagrees with any other aspect or amount of payment 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 of the disputed bill or refuses the disputed bill in its entirety. Failure of Hardeman
County to submit said claim and grounds to the Commissioner in writing within the time

22

period described herein shall be an absolute waiver of said 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.

In the event Hardeman County timely provides the notice described
(b)
in subsection (a), then Hardeman County may file a claim against the State before the
appropriate forum in Tennessee with jurisdiction 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 7
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 of Hardeman 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 performance by Hardeman County
hereunder, provided, however, performance 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 of America to construct and manage the prison and a copy of said contract shall
be delivered to the State within 60 days of the execution of this Contract. Hardeman County
shall not modify said contracts without the prior written approval of the 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

the prior written approval of the 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 performance 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 part of the total subcontract amount shall be paid directly or indirectly to an employee or
official of the State of Tennessee as wages, compensation, or gifts in exchange for acting as
officer, agent, employee, subcontractor, or consultant in connection with any work
contemplated or preformed subject to the subcontract.
(b)
Hardeman County shall provide that all subcontractors agree that no
person on the grounds of handicap, disability, age, race, color, religion, sex, national origin,
or any other classification protected by Federal andlor Tennessee State constitutional andlor
statutory law shall be excluded from participation in, or be denied benefits of, or be
otherwise subjected to discrimination in the performance under the subcontract or in the
employment practices of the subcontractor. The subcontractor shall, upon request, show
proof of such non-discrimination, and shall post in conspicuous places, available to all
employees and applicants, notice of non-discrimination.
(c)
Hardeman County shall provide that all subcontracts for the
performance in whole andlor part of the duties and obligations of Hardeman County shall
contain provisions for the maintenance of documentation and auditing similar to section 14.1
herein.

ARTICLE 9
INSURANCE AND DEFENSE OF CLAIM
Section 9.1. Types of Insurance. Hardeman County andlor 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 immunity 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 the State.
(b)
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 and/or eliminated.
Section 10.3. Job Descriptions.
(a)
Hardeman County shall provide as part of the 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.
(b)
Any revisions or modifications ofthe job descriptions require the prior
written approval of the State.
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
information;
(a)
the name of employees hired, indicating position;
(b)
the name of each employee whose employment has been terminated
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 offive (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 receive 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 of a drug free work force
and the employee assistance program.

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

Breach.
A party sliall 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."

In the event of a Breach by Hardeman County, the State shall have
(b)
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(s)'s 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.
In the event ofa Breach by the State, Hardeman County shall notify
(a)
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 part of the State excuse Hardeman County from
full perfonnance under this Contract.
In the event of Breach by the State, Hardeman County may bring an
(d)
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.
(f)
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 tenninate the Contract upon ninety (90) days
prior written notice to the Commissioner, provided, however, Hardeman County may
tenninate this contract only upon the State's failure to pay an amount which is not in dispute.

In the event the provisions of this Article are in conflict with the
(g)
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 subcontractor(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.
(b)
The State shall notify Hardeman County in writing of the Breach and
the amounts to be withheld as liquidated damages.

(c)

Liquidated damages shall be assessed in c~nfonnance with Section

(c).

(d)
The parties 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 D as said amounts are likely to be uncertain and not easily
proven. Hardeman County hereby represents and covenants that it has caref.llly r~ -;iewed

28

the amounts contained in Exhibit D 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 of breach 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 sustain~d by a third
party.
(f)
The State is not obligated to assess liquidated damages before availing
itself of any other remedy.
(g)
The State may elect to discontinue liquidated damages and avail itself
of any other remedy under this Contract in law or equity.
(h)
In the event Hardeman County disagrees with the State's assessment
ofliquidated 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 terminate for convenience by giving
written 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 the 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 termination.
Section 11.5. Termination 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 Department rea~l"\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 not 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 termination 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

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, goverrunental license or permit, or
other agreement or instrument to which it is a party or by which any of its properties are

31

bound and which default would materially and adversely affect Hardeman County's ability
to perform 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 Incorporation 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 of any of the terms and provision of,
or constitute a default under any indenture, mortgage, deed or trust, lease, loan agreement,
license, security agreement, contract, governmental license or permit, or other agreement or
instrument to which Hardeman County is a party or by which its properties are bound, or any
order, rule, or regulation of any court or any regulatory body, administrative agency, or their
governmental body applicable to Hardeman County or any of its properties, 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
perform its obligations under this Contract, or any such action, suit, or proceeding related t~
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 perform 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 of Contractor'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,
affirm 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
perform the terms of this Contract except as noted expressly herein and affirm the
enforceability of this Contract in accordance with its terms.

32

ARTICLE 14
MISCELLANEOUS
Section 14.1. Audits. Hardeman County shall maintain documentation of all 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 of three (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 of the 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
performance under this Contract or in the employment practices of Hardeman County.
Hardeman County shall, upon request, show proof of such 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 Performance Bond to the extent
required herein.

Section 14.4. Invalidity and Severability.

In the event that any provision of this Contract shall be held to be
(a)
unlawful, invalid or unenforceable, all parties agree that all other terms and conditions of
this Contract shall remain in full force and effect except as specifically provided in this
section.

(b)
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 of competent 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.

33

(c)
In the event a court of competent jurisdiction finds provision(s) of
this Contract to be unenforceable the Commissioner may terminate 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. Terminology 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 shall include the plural and the plural shall include the
singular.
Section 14.7. Interpretation and Venue. This Contract shall be governed 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 of Tennessee
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 final 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 shall contain,
at a minimum, Sections 14.1 and 14.2 of this contract. .
Section 14.11. Research Projects. Hardeman County and/or its subcontractors 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 of Tennessee 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 performed 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

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 of the hand delivery or on the third day
after mailing.
Section 14.14. Amendments. The terms and provisions of this Contract may be
waived, altered, modified, amended, supplemented or revised only by v..TItten 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 terms 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
terms 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 of the Contract and no third party beneficiary rights
are created hereby. Third parties shall mean all 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 performance 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.

35

Section 14.19. Approvals. Any policies, procedures or other documents
contained or referenced in this Contract subject to the State's approval under the teImS 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
<Jf all records required by the Standards.
Section 14.22. Implied Covenants or Agreements. The state shall be bound only
by the express, written teImS contained herein and shall not be bound by any implied
covenants or agreements.
Section 14.23. Notices. Failure of the State to provide any notice to Hardeman
County described 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
perfoIm in accordance with this Contract and shall not be a waiver or excuse for any
failure to perfOIm.
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 1
Year 2
Year 3

$20,472,000
$22,728,000
$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 changes made to this Section and the addition of Exhibit F have been approved by the following parties which have
previou~ executed the Contract:

JJ~on W. Clift, COUDty Executive
This AUgus~ 1996

£

~John Ferguson, Conunissioner, De~ent of
- Finance & Administration, This August¥ 1996

--Donal Campbell, Conunissioner, Department ofCorreetion,
This August~ 1996.

36

IN WITNESS WHEREOF, intending to be legally bound, the parties have caused
day of
their authorized representatives to execute this Contract as of the , E
e. e.m\-,q,.r , 19-1.£-.

-.5 pt

STATE OF TENNESSEE

HARDEMAN COUNTY

BY: t - ' - - - - - - - - - = - -

37

STATE OF TENNESSEE
COUNTY OF Dell d;:YY'')

)

)

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,

this5fu- day of ~

1996.

My Commission Expires:

I -~s-q'l

STATE OF TENNESSEE
IDC\ (\
COUNTY OF

ltrdc

)
)

Before me, th~ undersigned, a Notary Public of the State and County aforesaid, personally
appeared l \ \ (V) I \f{-t
, with.whom I am personally acquainted (or proyed to me on
th. basis of satisfactory evidence), and who, upon oath, acknowledged 1::l.LE.self to be
I
[~l llYi:'
of Hardeman County, Tennessee, the within named barg~or, a
,
L
and that _he, as such
Cit ob+- EX~(1 (ll-.It£ ,
being autho .
so to do, executed the foregoing instrument. for the p\lfPOses ther-em contained,
as . (l [>II oh 1 E\Leru.J,\K--.
by signing the name of Hardeman County, Tennessee, by

e

_r

b.2self

WITNESS my hand, at office, this

I S't.i-day of

1\1 0. \ lJ

Notary Publid

My Commission Expires:

_.5· A.~_·C)...:.9...l.-

_

38

\.JU_tl
l

' 1996.

~ \.~l~· J~61l.---_ _
I

~

APPROVED:
STATE OF TENNESSEE

/l~~~"~

\fuhn Ferguson
Commissioner of Finance and Administration

VViliiam R. Snodgrass
Comptroller of the Trea

39

LIST OF EXHffiITS

Exhibit A

Description ofFacility and Real Property

ExhibitB

Purchase Price Schedule

Exhibit C

Description oflnsurance

Exhibit D

Daily Liquidated Damages Schedule

ExhibitE

Disclosure of Pending Litigation

ExhibitF

State's Maximum Liability

40

EXHIBIT A
Land in the Third (3rd) Civil District of Hardeman County, Tennessee, described
as follows:
Beginning at a '/2 inch rebar set in the westerly line of Old New Castle Road, said
point being the southeasterly corner of the Roben Young tract (W5-492); 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 112 inch rebar set at the northeasterly comer of out
parcel "S"; thence South 83 degrees 23 minutes 27 seconds West along the nonherly line
of said out parcel "s" a distance of 910.63 feet to a '/2 inch rebar set at the nonhwesterly
corner of said out parcel "B"; thence South 25 degrees 33 minutes 20 seconds West along
a westerly line of said out parcel HB" a distance of 1019.33 feet to a '12 inch rebar set;
thence South 41 degrees 30 minutes 08 seconds West along a westerly line of said out
parcel "B" a distance of 5 11.12 feet to a '/2 inch rebar set; thence South 18 degrees 01
minutes 40 seconds West along a westerly line of said out parcel "B" a distance of 5 10.0 I
feet to a '12 inch rebar set at the southwesterly comer of said out parcel "S"; thence South
55 degrees 53 minutes 41 seconds East along the southerty line of said out parCel "B" a
distance of 702.70 feet to a '12 inch rebar set in the westerly line of said Old New Castle
Road, said point being the southeasterly comer of said out parcel "B"; thence South 34
degrees 06 minutes 19 seconds West along said westerly line a distance of 474.70 feet to
a '12 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 50 seconds West along a northerly line
of said out parcel A" a distance of 116.10 feet to a fence comer~ thence Nonh 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 degrees 07 minutes 32 seconds West along
a northerly line of said out parcel"A" a distance of 254.72 feet to a fence corner at the
northwesterly comer of said out parcel "A"; thence South 28 degrees 01 minutes 21
seconds West along the westerly line of said out parcel "A" a distance of 452.40 feet to
a fence
the southwesterly comer of said out parcel" A"; thence South 86 degrees
50 minutes 33 secoods East along the southerly line of said out parcel"A" a distance of
369.49 feet to. (ence comer in the westerly line of said Old New Castle Road, said point
being the southeaSterly eorner of said out parcel "A"; thence South 44 degrees 26 minutes
30 seconds West along said westerly l.ine a distance of 313.56 feet (C-313.0 feet) to a '12
inch rebar set~ thence South 24 degrees 56 minutes OS seconds West along said westerly
line a distance of 309.12 feet (C-264.0 feet) to a '12 inch reba! set~ thence South 42
degrees 02 minutes 17 seconds West along said westerly line a distance of 810. 17 fC(.,~
(C-759.0 (eet) to a 'h inch
set at the northeasterly comer of the Ruth Crowder tract;
thence North 42 degrees 34 minutes 38 seconds West along a northerly line of said
Crowder tract a distance of 328.21 feet (C-327.0 feet) to a fence comer; thence NOM 87
degrees 54 minutes 19 seconds West along 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
of said Crowder tract I di.swtce of 1394.41 feet (C-1410.0 feet) to a '12 inch rebar set at
a southeasterly comer of the Claude E. Blalock tract (Z3-4M/465); :..'1ence North 13
degrees 41 minutes 41 seconds East along an easterly line of said Blalock tract a distance
of 1596.86 feet (C-1592.0 feet) to a fencecomer~ thence North 48 degrees 14 minutes
58 seconds East along 3D easterly line of said Blalock tract a distance of 478.88 f~t
(C-462.0 feet) to a metal T-past; thence North 20 degrees 28 minutes 54 seconds West
along an easterly line of said Blalock tract a distance of 516.97 feet (C-565.0 feet) to a
'/2 inch ~ebar set; thence North 34 degrees 38 minutes 12 seconds.West along an easterly
line of said BlaJock tract a disunce of 96.50 feet to a metal T-post in a southerly line of
the Clifford Keller Estates: thence South 87 denees 03 minutes 03 seconds East alon~ a
H

comer.

rew

past; thence North 38 degrees 55 minutes 3S seconds East along a southerly line of said
Keller tract a distance of 524.09 feet (C-S2S.0 feet) to a meloal T-Pos~ thence South 38
degrees 03 minutes 14 seconds East along a southerly line of said Keller tract a disunce
of S6S.10 feet (C-S68.0 feet) to a metal T-pest; 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 at the southeasterly comer of said Keller tract; thence North 03
degrees 41 minutes 31 seconds East along the easterly line of said Keller tract a distance
of 1138.90 feet (C-13S9.93 feet) to a 30-inch oak at the southwesterly comer of the said
Robert Young Tract; thence North 82 degrees 47 minutes 03 seconds East along the
southerly line of said Young tract a distance of 1609.91 feet (C-1611.89 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 Ashworth, m, Tennessee No. 1344, Ashwonh-Vaughan, Inc., 195 Center
Street, Collierville, Tennessee 38017, Job No. 3832.

Being a ponion of the same property conveyed to Joe R. Keller and wife.
Jinunie E. Keller, by deeds from A. Duncan Williams and wife, Carolyn Williams, of
record in Deed Book C5, page 122, Register's Office for Hardeman County, Termessee,
and from Catherine Freeburg, of record in Deed Book NS, page 212, said Register's
Office.

EXHIBIT B
Dale ot F Jrctlase

PURCHASE PRICE SCHEDULE

(Refers To Last Day of Month)

Jul
Aug

1991

Sep
Oct
Nov

Dec

Jan

1998

Feb

47.638,218.52
41,415,802.24

JuJ

46.964,48312

Aug

46.850,266,70

Sap

46,735.538.32
46.620,235,33

Oct
Noy

46,~04.37~,04

Dec
1999

f:eb
Mar

Apr
May

46.367,954.76
46,270,911.7B
46.153.423,38
46.035.306,83
45.916.619.39

45.797.358.29

Jun
Jul
Aug
Sap
Oct
Nov

45.677.e20.76
40.557.104.02
45,436.10~.26__

45.314,521,67

45.192.350.43
45.069,5~e.70

2000

Feb
Mar

44.946.233.62
44,822.282.32
44,697,731 .92
~4,~72.~T9.03

Apr

-4~,446,a22.24

May

44.320,457.12

Jun
Jul

44.193,481.24
44.065.891.64

Aug

-43,937.6eS.35

Sep
Oct

43,808.ae9.40
43.679.410.80

Nov

43,~49.33e.~2

Dec
Jan

4S, 1e4.ge~.40
48.076,66797
47.967.847,10
41,858,500.27
47,748,624.93

41,303.781.19
41,191.230.73
41.079.130.25

MAy
Jun

Dec
Jan

$48,292,741,91

47.527,278.48

Mar
Apr

Jan

Purchase Price

2001

Feb

Mar
Apr

43,418.633.55
43,287.298.96
43.155,329,31
43.022.722.04

42.889.473.77
42.755,581.46

May

Jun
Jul

42,621,042.01

Aug
Sao
Oct

42.350,009.1 ~

42,48~,8~2.29

4~ ~13,509.43

412.078.349.97

Nov
Cec

Jan

Feb

Mar
Apr
May

2002

41.938.527.56
41.800.039.02
41,660,881.11
41,521,050.61
41,J80,~44,26

41.239,308.80
41.091,490.94
dn

Q~A.

Q1738

tlY',,'8/%

Jul
Aug
Sep

Oct
Nov
Dec
Jan

2003

FeD
Mlr
Apr

Jut

Aug
Sep

Oct
Nov

Dec
2004

Aug
Sep

Oct
Nov
Dec
Jan

2006

Feb
Mar

May

Jul

Aug
Sep

Oct
Nov

Dec
Jln

Feb
~r

N>r
Mly
Jun

Jut

33,O~,e21.31
32,875,~09.84

Aug

Sep

oct
HoY
Dec
2007

~y

Joo
J~

S.p

Oct
Nov

Mar

N>r

32.892.915.06
32.S09.739.39
32.325,678.37
32.140,727.n
31.9S4,883.14
31,768,140.32
31.5$0,4;4.90
31,391.042.153
31.202.418.83
31.012.099.38
:~.820.799.77

Aug

Feb

39.340.633.03
39.189.58199
39.037.812.91
38.885.304.24
38.732,058.45
38.:578.071.97
38,4Z3,341.Z3
38,267,862.62
38.111,832.53
37.954.847.32
37.796.903.36
37,638,396.96
37,479,124.45
37.319.082.13
31,1 :l8.Z6e.2e
36,996.813.12
36. 834.29S.ge
36.671,139.97
36,e<J7,192.38
36.342,452.39
36.118,916.15
36.010,51IU1
35.675,491.38
35.506.731.50
35.337.155.9<4
35,166,760.77
34,996.S42.02
34,823,495.71
34.15~,017 .84
34,476.9O<t.40
34,302,3151.315
34,128.9!504.82
33,950.710,14
33,773.813.81
33,!596,661.e2
33,416,849.12
33.237, 1T2.~

Jun

Dec
Jan

40.811.694.82
40.661.7:59.92
40.523.129.33
40.317.1GG.70
40.231.767.63
40.085.029.75
39.937.582.63
39,789.422.86
39.640.:546.97

3~.84:3,439.~

~

Jifl
Feb
Mar
ApI

Il.'. Oc.l

39.490.9:51.:52

May
Jun

Jgn
Feb
Mar
Apr
May
Jun
Jut

LJ:"J

2008

30.628,515.54
30,438,422.23
30.241,335.34
30,0415,310.31
29,9150.342.79
2g.853.428.00
29.41515.581.49
29,256,138.60
29,056.9504.74
?A A"A'M 28

1.1.

~b'

.:.l:l,':t;.

1 j; c!~

tUw

..

~"~
.. , . .;;.~' .,
JUI
AUl:/

28,451,790.75
28.248.116.31

Sep

28.~3,"57.44

Oct
Nov

Dec

Jan

2009

Feb
Mar
Apr
Mey

2f3.T94,~e3.23

Jun
Jul
Aug

Sap
Oct

Nov
Dec
Jen

2010

Feb
Mar
Apt
May

Jun
Jul

Sep
Oct

Nov
Dec
2011

Fib
Mar
Apr
May

Jun
Aug

Sep
OCt
Nov

o.c

2012

Mer
Apr
May

Jun
Jut

Aug

0cI
New
Dtc

Jan

23.282.023.03
23,053.361.38
22.823.!59A 54
22.592.717.1 ~
22.360,723.86
22.127,609,26
21,693,367,94
21,eC57,994.4e
21,<421,483.~

Jul

Jan
Feb

26,1582,878.88
26,370,171.34
26,156.435.75
25,941.667.09
25,725,860.39
25,509,010.62
25,291,112.74
25.072,161.69
24,8152,1152.38
24.631.079.69
2.U08.938.48
24,185,723.59
23:961,429.83
23,736,0!51.98
23.~9,~4.80

Aug

Jan

27.831.809.39
27,631,167.38
27.423,!526.:59
27,21 <4,882.21
21,005,229.38

2013

21.183,829.08
20.945.026.18
20,70!5,069.03
20,463,952.10
20,221 ,ee9. 78
19.978,216.42
19,T33.08e.3T
19,481,n3.ge
19,240,n3.43
18.992.579.07
18,743,18S.11
18,492, 58e. 7"
18,240,775.1S
17,987,747.47
11 ,T33,4ge.82
11,478,017.29
17,221.302.ge
16,963.347.82
16,704,1otS.91
16,443,691.18
18,181,977.60

1',91 8,999,06

flit)

1!5,~,74;.4e

Mw

15,389.222.66
15,122,412.41
14,854.312.71
14,!584.917.12
14,314,219.46
14,042,213.43

AfK
May

Jun
Jut

Aug

13.768,8~.70
13,4~,2~.92

8ep
Oct
Nov

13,218,281.71
12,~O.g78.6<4

Dec

Jan
Feb
Mar
Apf
U .. v

2014

12,662.335.28
12,382,34~,

14

12,101,001.71
, 1.818.296.4e
, 1,534,228.81
- . - _....

- .-

Jut .

Aug
Sep
Oct

Nov

Dec

Jan

201~

FeD
Mlr

Apr
May

Jun
Jut

7.713.932.0~

Aug
Sep
Oct
Nov

Dee
Jan

10.ge1.ge3.Be
10.873.755.26
10.38-4.153.1515
10.093.152.30
9.800.7..... 4..
9.506.923.27
9.211.1581.98
8.9115.013.88
8.818.911.48
8.317.36846
8.018.371.65

2016

Feb

Mar

AfK

May

Jun
Jul

7.410.02".63
7.104.648.32
6.797.796.02
6.489.460.61
8.17;.834.g1
5.868.31172
:1.555.48380
5.241,143.87
4.925.284.64
4.607.898.76
4,288,978.804
3,968.517.48
3,~8,507.22

Aug

3.322.940.~

Sap

Od

2.997.810.03
2.671.108.02

Nov
Dec

2.012.9159.18

Jan

Feb
MIt
~

M.y
Jun

2.342.826.~

2017

1.e81.497.oe
1.346,432.86
1.013,7S8.e8
877.487.'27
339.550.27

After this point in time, if the Contract is still in force,
the State may purchase the facility for $1.00. In addition,
after ~~y of the Year 2017 no debt service per diem will be
paid.

0.00

EXHIBIT C

Description of Insurance

ACQBP.~... "~RT~~~.Jl_.:.:~::,:,:~.~YIY",;.~~'::;'AGE'1OF::'t:

;~OLOULI~CORROON CORPOAATldN OF

T'EYE$$E!'

NASHV I LLE OFF I ~
P. O. BOX 305025

~S=y

BLVD.

~

60480

~A_~~YJ

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ONL Y AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AWEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.

37230-&025

(615) 872.3700
Muou i t. A. Neolev

CCIroF AN'(

INIUllle

CCIroFAN'(

COW'ANIES AFFORDING COVERAGE
~eny

Na t i on. I Un i on Fir e I nsur ence

A
Roy.1 I nd.., i ty

ee.p."y

B
alRRECTIONS CORPORATION OF AlERICA
SUITE 800
102 IOClOMONT BLVD.
~SHV I LLE
TN

COt.f>AN'(

CCM'/IHf

37205

Nor th lend In.ur enc. eo.r"eny

C
In.urence Co. of the Sute of PA

0

jCOV£RAGES=t\',::,:t?:m:ii:::::i:;:\::;:::;::\::t::}J/:'::;::::::::::::::)}=;,{:::,:r::;:;:;:::?:\%it:::::::::::::,=}:,///::i::\:::::):::':';::ti:::::Itt::f~I:.~:CIif;::~';.~;1""\':(::::\·:=\\i,:::::::::::
THIS IS TO CERTIFY THA T THE POLICIES OF INSURANCE LISTED BELOW HA VE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INOICA TED,NOTWITHS TANDING ANY RE OUIREMENT, TERM ORC ONOITION OF ANY CONTRACT OR OTHERDOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICA TE MA Y BE ISSUED OR MA Y PERT AIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF.SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS .

I

. OINIIIA&.UA.Lm_

txl
C

rTI
~

-

-

r--;
L..-i
,

ae~RAl LIABILITY j
w.c.e ~ OCOP iKA960029

COt.M!ACIAl

rx:

CUIl.lS

5,000,000
5,000,000

01.APR.1996

01-APR-1997

I

O~R'S 1 CONTRACTOR'S ~T;

PERSONAl.

fot)'I

,I

1$
i$

5.000,000
5,000,000
10<1,000

I

I

,

~OMOIU UAILrTY

; X I /IHT AUTO
,....-,
!
AI.L O~C
A! : SOEcu.EO

-l

AUTOS

RIIICA01353379

AUTOS

!01-APf'·1996

01-""'·1997

iX' H!A:C AUTOS
~
I X I 'ClH-O'*"EO AUTOS
~

;•

' BOOILY IN..U'tf
:(P.. per-I

:.

BOOILY ~
(P.- ac:cidlntJ

S

IPROPERTY
AN'(

one

AUTO

fA ACCQNT

1eA~

, IIC. .I UAILrTY

1l.WRL.J..A ~

! OnER

THAN ~L.J..A

PHN010177

i'
.- ..

THAN .-uTO Ofol. Y:
ACCIOENT

il

AOCRQAT£

I.

eA~

i..!

~

OCQ.,A:£NCE

01·""'-1997

AOQAEQAT£

01.APf'-1997

El.

EA~

a.
a.

DlSEASl!~1CY

~0R.l

i WOIIKIIII CO_INUTION AND
: 1tJPL0TPI' UAILm

Di

01-""'·1996

I, PAlmERSlExEOJTI'I!
M PROPRIETORI
; OI"'ICl:RS WE;

1,000,0001

e-aE

AUTO Ofol. Y •

: 01011&01 UA.Lm

Cl

I

eot.eif'EO SII'Q..E LUT

--'

I

IH..UlY

EA~ OC~NCE

ACCmNT

LMT

DISEASE -EA 9of'I.ovte

25.000,

2!5,ooo,
---_.-

•
•

I•

__

..
.. -.
1,000,000
1,000,000
1,000,000

,000.000 Exce•• Li8bility over

0Tt4111

B EX~SS AlITO LIABILITY

/11.-' 10172

1.~,ooo

01.""'·1997

01·APR-1996

Pri . .ry Auto Liebility

SEE ATTACHED
CANCSJ.;.A'1'JOtIf .:.·.·.x_&J~~,or~.,m."t·.·.:>:\.··.·.· ..·.·

C£Rl1flC,t.TE HOLDP

SMOI.Ul A'"

TO IHOIIII IT IIAY CONCERN:

C/O

~CTIONS

30

CORP.

ew

TMS 10.0'11 MKII.art ~ • •1 CANC:CJ.IO 1"0111 Ttll

IIPlIII&TlClII DATI ntGIIO', TMI

.IU..

O CC........ Y WU IIWOIAVOII TO MAL

DAn"'rnD "OTa TO 'n41 c.lI~ll:An HOLOPIlA.-o TO Ttll UP'T.

Of AMERICA

IUT 'ALURI TO MAL IUCIlIIOTa SMAU. IWO. . 110 OaJOATlClIl 0.11 WIL1TT

102 IOOOIIONT BL YO., .eo<)

o

NASHY ILLE

TW

3nOS

JiiO"

TMI

CO........ T,

IT

0 IJIfTS

011

1I1Jtt1. .111T & TTYlI.

·_.----------------HIS CERTIFICATE IS ISSUED AS A WATTER OF INFORWA TlON ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
OLDER. THIS CERTIFICATE DOES NOT AWEND, EXTEND OR ALTER _THE COVERAGE AFFORDED BY THE POLICIES BELOW.

60480

",DDUCaIl

IILLIS CORROON CORPORATION OF TENNESSEE
NASHVILLE OfFI~

P. O. BOX 305025
CORRECT IOMS CORPORAT ION OF

SUITE 800

26 CENTURY BLVD.
NASHVILLE
TN

102 IOOOIIONT BLYO .

(615) 872-3700

NASHV I LLE

.

AlE' I CA

TN

37230·5025

"rg.rit. A. NeQley

37205

I
.

.

5 IS TO CERTIFY TIoIAT TIoIE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSueD TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOO
ICATED, NOTWITHSTANDING ANY REOUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER OOCU'-4ENT WITH RESPECT TO WHICH THIS
~TIFICA TE '-41. Y BE ISSUED OR '-41. Y PERTAIN, THE INSURANce AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TER'-4S,
:LUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS '-4AY HAVE BEEN REDUCED BY PAID CL=A:::IM:::S:,:.---,I

I!

" " 01' ".UIIA"~

Commercia

I'OUC'" ~III

!

I
.

I'OUCT .....CTMI r'OUCT IXJtIll...no"l
D... n (.......-oD/YY)
o...n (.......-oD/'l'Y)

UliIrn

Property
00239
04/01/96

Issuing Carrier: Aff

04/01/97

iated FM Insurance Company

:SCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS
,neral Liabi I ity pol icy Self-Insured Retention: 526,000 Each Occurrence
operty pol icy provides "Special" form coverage on r.al and p.rsona
operty and business income, including flood and quake, subject to
I icy terms. conditions and exclusions.
Blanket Po icy Limit:

5 40,000,000. Blanket Per Loss Per Location

Earthquak. SubLimit:

5 25,000,000. (.xcluding CALIFORNIA .arthquake)
5 2,600,000. Puerto Rico
S 25,000,000. (.xcluding locations ins 600 year
Flood plain as det.rmined by FEMA

Flood Sub imit:
Deductible

510.000
526,000
560,000
S 1.000
1% Wind
2% Wind
3% Wind

al I 10 ••••• xcept:
Flood & Earthquake
Vandalism and Mal iciou. Mischief
for 10 •••• to content. at corporate office.
or 125.000. minimum in Brook.ville. FL.
or 160.000. minimum in Bay County State, Panama City
or 160.000. minimum in Bay County Annex, Penama City
and Guayama. Puerto Rico .

.::.:~~~:. ~.~.~!.~~.~"~_Ql'.~.!~ :.:.:.:. : .:

lTIFICATI HCLD£R

IMOlLD ........

cw 1M.....OW

c.u.c:a.a

DlfCII.1D ~ . U

co..........

.
""0111 TMI

TO IHOII1 IT IIAY CONCSUf:
C/O ~CT'CIIS taVJ.

~Ano.

OF AllIER I CA

IUT 'ALU'l1 TO MAL IUCM ..once '"AU. ...-0....0 OIUOAno.. 011 UA.Lm

»cw

102 WlXDIONT 8lYO., .eGO

MSKV I LLE

TN

3720!

A

DAn TMIII.OI', 1M. ,.IUINQ

WLL. . .DlAVOII TO ..... L

OA n WltrTTIJI IIIOnce TO TM' CPTW'1CAn MOUIO NAaCl TO TM' Ul'T,

......
•

1M.

OO"A."'. ""AQDrTI

otI

" " ".....Unw•.

EXHIBITD
Daily Liquidated Damages
Daily Liquidated Damages will be calculated in accordance with the following fonnula:

v x B x $25.00 where
v =Relative value of Service Area
B =Relative value of the Breach
Service Area 1 - Value = 5: Imnate Classification, Custody and Movement, Access to Courts, Disciplinary
Procedures, Inmate Relations, Sentence Reduction Credits, Sentence Computation, Imnate Records:
Contractor Breach:

B

Failure 9f Staff
Failure to Document
Failure to Report
Failure to Comply with Other
Applicable Standards

5
4

3
5

Service Area 2 - Value =4: General Administration, Personnel and Training, Security and Control, Use of Force,
HealtblMedicallMental HealthlDental, Imnate Work and Education, Transportation, Inmate Drug Testing:
Contractor Breach:
Failure of Staff
Failure to Document
Failure to Report
Failure to Comply with Other
Applicable Standards

B

5
3
2
5

Service Area 3 - Value =3: Equipment, Supplies and Perishables, Sanitation and Hygiene, Facility Management,
Maintenance, and Utilities:
Contractor Breach:
Failure of Staff
Failure to Document
Failure to Report
Failure to Comply with Other
Applicable Standards

B
4
2
1
4

=

Service Area 4 - Value 2: Personal Property, Visitation, Food Service. Laundry and Clothing, Recreation,
Library, Commissary. Religious Services, Volunteer Services, Released Inmates, Telephone and Correspondence,
Inmate Trust Fund. Community Relations, and other requirements of the Standards:

Contractor Breach

B

Failure of Staff
Failure to Docwneot
Failure to Report
Failure to Comply with Other
Applicable Standards

4
1
1

4

EXHIBIT E

Concerned Citizens Against Prison et at. v. Hardeman County, Tennessee et a/.,
U.S.D.C., Western District of Tennessee, Eastern Division, No. 96-1019.

EXHIBIT F
Incarceration Agreement - Hardeman County, Tennessee

FY97-98

Inmate
Operating Per
Population
Diem Rate
@$32.28

31
July
31
August
30 September
31 October
30 November
31 December
31 January
28 February
31
March
April
30
31
May
June
30
365

Total

FY98-99

31
July
August
31
30 September
31 October
30 November
31 December
31 January
28 February
March
31
April
30
May
31
June
30
365

500
1000
1504
1504
1504
1504
1504
1504
1504
1504
1504
1504

Total

FY99-20

31
31
30
31
30
31
31
29
31
30
31
30

July
August
September
October
November
December
January
February
March
April
May
June

366

Total

569,625.00
1,120,175.08
1,456,473.60
1,505,022.72
1,456,473.60
1,505,022.72
1,505,022.72
1,359,375.36
1,505,022.72
1,456,473.60
1,505,022.72
1,456,473.60

115,630.00
231,260.00
336,595.20
347,815.04
336,595.20
347,815.04
347,815.04
314,155.52
347,815.04
336,595.20
347,815.04
336,595.20

16,400,183.44

3,746,501.52

Inmate
Operating Per
Population
Diem Rate
@$33.33
1504
1504
1504
1504
1504
1504
1504
1504
1504
1504
1504
1504

Operating Per
Diem Rate
@$32.28

16,400,183.44-

Debt Service
Per Diem Rate
@$7.46

3,746,501.52

Misc. Officer
Travel

75,000.00

Misc. Medical

250,000.00
$20,471,684.96

Debt Service
Per Diem Rate
@$7.46

1,553,977.92
1,553,977.92
1,503,849.60
1,553,977.92
1,503,849.60
1,553,977.92
1,553,977.92
1,403,592.96
1,553,977.92
1,503,849.60
1,553,977.92
1,503,849.60

347,815.04
347,815.04
336,595.20
347,815.04
336,595.20
347,815.04
347,815.04
314,155.52
347,815.04
336,595.20
347,815.04
336,595.20

18,296,836.80

4,095,241.60

Inmate
Operating Per
Population
Diem Rate
@$34.41
1504
1504
1504
1504
1504
1504
1504
1504
1504
1504
1504
1504

Debt Service
Per Diem Rate
@$7.46

Operating Per
- Diem Rate
@$33.33

18,296,836.80

Debt Service
Per Diem Rate
@$7.46

4,095,241.60

77,437.50

Misc. Officer
Travel (3.25% inflator)

258,125.00

Misc. Medical
(3.25% inflator)

$22,727,640.90

Debt Service
Per Diem Rate
@$7.46

1,604,331.84
1,604,331.84
1,552,579.20
1,604,331.84
1,552,579.20
1,604,331.84
1,604,331.84
1,500,826.56
1,604,331.84
1,552,579.20
1,604,331.84
1,552,579.20

347,815.04
347,815.04
336,595.20
347,815.04
336,595.20
347,815.04
347,815.04
325,375.36
347,815.04
336,595.20
347,815.04
336,595.20

18,941,466.24

4,106,461.44

Operating Per
Diem Rate
@$34.41

18,941,466.24

Debt Service
Per Diem Rate
@$7.46

4,106,461.44-

Misc. Officer
Travel (3.25% inflator)
Misc. Medical
(3.25% inflator)

79,954.22

266,514.06
$23,394,395.96

FIRST 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
Correction, entered into Contract No.
on September 18, 1996, relating to the housing by
Hardeman County of felons sentenced to the care, custody and control of the Tennessee
Department of Correction, 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:
1

Article 1 is amended as follows:
a.

By deleting therefrom the following:
"Service Commencement Date" is July 1, 1997.

b.

By substituting in lieu thereof the following:
'Service Commencement Date" is June 1, 1997.

Section 5.5 (a) is amended as follows:
a.

By deleting therefrom the following:
July 1, 1997

b.

By substituting in lieu thereof the following:
June 1, 1997

3,

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

By deleting therefrom the following:
July 1, 1997 through June 30, 2000, provided, however, after September
30, 1997,

b.

By substituting in lieu thereof the following:
June 1, 1997 through May 31, 2000, provided, however, after August 31,
1997,

4.

Section 6.1(a) is further amended as follows:
a.

By deleting from the last paragraph the following:
During the initial term, after the ftrst fiscal year, the Operating Per Diem
Rate shall be increased by three and one-quarter percent (3.25%) for each
ftscal year.

b.

By substituting in lieu thereof the following:
During the initial term, beginning Fiscal Year 1998-1999, the Operating
Per Diem Rate shall be increased by three and one-quarter percent (3.25%)
for each ftscal year.

5.

Section 6.1 (b) is amended as follows:
a.

By deleting therefrom the following:

Bed Availability Time-Line
Beds
Ayailable
7/1/97
8/1/97
9/1/97

Total
Population

500
500
504

500
1,000
1,504

2

b.

By substituting in lieu thereof the following:

Bed Availability Time-Line
Beds
Ayailable
500
500
504

6/1/97
7/1/97
8/1/97
6.

Total
Population
500
1,000
1,504

Section 6.2 is amended as follows:
a.

By deleting therefrom the following:
September 30, 1997

b.

By substituting in lieu thereof the following:
August 31, 1997

7.

Section 6.3 is amended as follows:
a.

By deleting therefrom the following:
July 1, 1997

b.

By substituting in lieu thereof the following:
June 1, 1997

8,

Section 14.24 is amended as follows:
a.

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

$20,472,000
$22,728,000
$23,395,000

3

b.

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

9.

10.

1.

$690,200
$21,687,000
$22,777,000
$21,476,400

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 F.

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

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

HARDEMAN COUNTY

STATE OF TENNESSEE

DEP~OF~ION
BY:

~_~

Donal Campbell, Co

State of Tennessee
County of OaVl'dbOC\

~iOI1ef\

)

)

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

4

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

Joti? day of ~ , 1997.

My Commission Expires:

State of Tennessee
County of HARDEMAN
Before me, the undersigned, a Notary Public of the State and County aforesaid, personally
appeared Don W Cl; ft:.1With 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§putive of
Hardeman County, Tennessee, the within named bargainor, a
, and
that _he, as such CO)) n ty Exec}] t ; vd>eing authorized so to do, executed the foregoing
instrument for the purposes therein contained, by signing the name of the ~~6SS& by
himself as County Executive.
County of Hardeman
Witness my hand, at office, this

9th day of

April

,1997.

n~.sJ~
Notary Publi
My

Cornmission-~~pires:

512-4/-99
.
.

~.

APPROVED~

STATE OF TENNESSEE

L:'\~J';,. 5I~

fuhn Ferguson
Commissioner of Finance and Administration

5

h,.,r~ ~ ~~//~ (;
_h£~~'
William R. Snodgrass/7
Comptroller of the Msury

~

t{-cJ?-97

6

LIST OF EXHIBITS
Revised Exhibit B

Purchase Price Schedule

Revised Exhibit F

State's Maximum Liability

7

EXHIBIT B

HARDEMAN COUNTY CORRECTIONAL FACILITY
PURCHASE OPTION PRICES
ASSUMPTIONS:
Purchase Option Price - Based on remaining principal due at the end of the month denoted under the month column.
Month
(Refers to last day of month)
Jun-97
Jul-97
Aug-97
Sep-97

Oct-97

1
3

4
5
6

9
10
11
12
13
14
15
16

Oct-98

17

Nov-98
Dec-98
Jan-99
Feb-99
Mar-99
Apr-99
May-99
Jun-99
Jul-99
Aug-99
Sep-99
Oct-99
Nov-99
Dec-99
Jan-OO
Feb-OO
Mar-OO
Apr-OO
May-OO
Jun-OO
Jul-OO
Aug-OO
Sep-OO

18
19
20
21

Oct-oo

Oct-Ol
Nov-01
Dec-Ol
Jan-02
Feb-02
Mar-02
Apr-02
May-02
Jun-02
Jul-02
Aug-02
Sep-02
Oct-02

$48,292,741.91
48,184,965.40
48,076,667.97
47,967,847.10
47,858,500.27
47,748,624.93
47,638,218.52
47,527,278.48
47,415,802.24
47,303,787.19
47,191,230.73
47,078,130.25
46,964,483.12
46,850,286.70
46,735,538.32
46,620,235.33
46,504,375.04
46,387,954.76
46,270,971.78
46,153,423.38
46,035,306.83
45,916,619.39
45,797,358.29
45,677,520.76
45,557,104.02
45,436,105.26
45,314,521.67
45,192,350.43
45,069,588.70
44,946,233.62
44,822,282.32
44,697,731.92
44,572 ,579.53
44,446,822.24
44,320,457.12
44,193,481.24
44,065,891.64
43,937,685.35
43,808,859.40
43,679,410.80
43,549,336.52
43,418,633.55
43,287,298.86
43,155,329.37
43,022,722.04
42,889,473.77
42,755,581.46
42,621,042.01
42,485,852.29
42,350,009.15
42,213,509.43
42,076,349.97
41,938,527.56
41,800,039.02
41,660,881.11
41,521,050.61
41,380,544.26
41,239,358.80
41,097,490.94
40,954,937.38
40,811,694.82
40,667,759.92
40,523,129.33 /
40,377,799.70
40,231,767.63

2

Nov-97
Dec-97
Jan-98
Feb-98
Mar-98
Apr-98
May-98
Jun-98
Jul-98
Aug-98
Sep-98

Nov-OO
Dec-OO
Jan-01
Feb-01
Mar-Ol
Apr-01
May-01
Jun-Ol
Jul-Ol
Aug-Ol
Sep-Ol

Purchase Option
Price

7
8

22
23
24
25
26
27
28
29
30
31
32

33
34
35
36
37
38
39
40
41
42
43

44
45
46
47
48
49
50
51
52
53
54

55
56
57
58
59
60
61
62
63
64
65

Page 1

EXHIBIT B

HARDEMAN COUNTY CORRECTIONAL FACILITY
PURCHASE OPTION PRICES
ASSUMPTIONS:
Purchase Option Price - Based on remaining principal due at the end of the month denoted under the month column.
Month
(Refers to last day of month)
Nov-02
Dec-02
Jan-03
Feb-03
Mar-03
Apr-03
May-03
Jun-03
Jul-03
Aug-03
Sep-03
Oct-03
Nov-03
Dec-03
Jan-04
Feb-04
Mar-04
Apr-04
May-04
Jun-04
Jul-04
Aug-04
Sep-04
Oct-04
Nov-04
Dec-04
Jan-05
Feb-05
Mar-05
Apr-05
May-05
Jun-05
Jul-05
Aug-05
Sep-05
Oct-05
Nov-05
Dec-05
Jan-06
Feb-06
Mar-06
Apr-06
May-06
Jun-06
Jut-06
Aug-06
Sep-06

Oct-06
NoV-06
Dec-06
Jan-07
Feb-07
Mar-07
Apr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07

Oct-07
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08

Purchase Option
Price

66

40,085,029.75
39,937,582.63
39,789,422.86
39,640,546.97
39,490.951.52
39,340,633.03
39.189,587.99
39,037,812.91
38,885,304.24
38,732.058.45
38,578,071.97 {
38,423,341.23
38,267,862.62
38,111.632.53
37,954,647.32
37,796,903.36
37,638,396.96
37,479,124.45
37.319.082.13
37,158,266.26
36,996,673.12
36,834,298.95
36,671,139.97
36,507,192.38
36,342,452.39
36,176.916.15
36,010,579.81
35,843,439.52
35,675,491.38
35,506,731.50
35,337,155.94
35,166,760.77
34,995,542.02
34,823,495.71
34,650,617.84
34,476,904.40
34,302,351.35
34,126,954.62
33,950,710.14
33,773,613.81
33,595,661.52
33,416,849.12
33,237,172.46
33,056,627.37
32,875,209.64
32,692,915.06
32,509,739.39
32,325,678.37
32,140,727.72
31,954,883.14
31,768,140.32
31.580,494.90
31,391,942.53
31,202,478.83
31,012,099.38
30,820,799.77
30,628,575.54
30,435,422.23
30,241,335.34
30,046,310.37
29,850,342.78
29,653,428.00
29.455,561.48
29,256,738.60
29.056,954.74

67
68
69
70
71

72
73
74
75

76v
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108

.j

109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130

Page 2

EXHIBIT B

HARDEMAN COUNTY CORRECTIONAL FACILITY
PURCHASE OPTION PRICES
ASSUMPTIONS:
Purchase Option Price - Based on remaining principal due at the end of the month denoted under the month column.
Month
(Refers to last day of month)
Apr-Oil
May-{)8
Jun-{)8
Jul-08
Aug-{)8
Sep-{)8
Oct-08
Nov-{)8
Dec-{)8
Jan-{)9
Feb-{)9
Mar-{)9
Apr-09
May-{)9
Jun-09
Jul-{)9
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan·10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10

Dec-1O
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oc\-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13

Purchase Option
Price

131
132
133

28,856,205.26
28,654,485.49
28,451,790.75
28,248,116.31
28,043,457.44
27,837,809.39
27,631,167.38
27,423,526.59
27,214,882.21
27,005.229.38
26,794,563.23
26,582,878.86
26,370,171.34
26,156,435.75
25;941,667.09
25,725.860.39
25,509,010.62
25,291.112.74
25,072,161.69
24,852,152.38
24,631,079.69
24,408,938.48
24,185,723.59
23,961,429.83
23,736,051.98
23,509,584.80
23,282,023.03
23,053,361.38
22,823,594.54
22,592,717.15
22,360,723.86
22,127,609.26
21,893,367.94
21,657,994.46
21,421,483.34
21,183,829.08
20,945,026.16
20,705,069.03
20,463,952.10
20,221,669.78
19,978.216.42
19,733,586.37
19,487,773.95
19,240,773.43
18,992,579.07
18,743,185.11
18,492,585.74
18,240,775.15
17,987,747.47
17 ,733,496.82
17 ,478,017.29
17 ,221,302.95
16,963,347.82
16,704,145.91
16,443,691.18
16,181.977.60
15,918,999.06
15,654,749.46
15,389.222.66
15,122,412.47
14,854,312.71
14,584,917.12
14,314,219.46
14,042,213.43
13,768,892.70

134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195

'age 3

EXHIBIT B

HARDEMAN COUNTY CORRECTIONAL FACILITY
PURCHASE OPTION PRICES
ASSUMPTIONS:
Purchase Option Price - Based on remaining principal due at the end of the month denoted under the month column.
Month
(Refers to last day or month)
Sep-13
Oct-13
Noy-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct·14
Noy-14
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Sep-15
Oct-15
NoY-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Noy-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17

Purchase Option
Price

196
197
198

13,494,250.92
13,218,281.71
12,940,978.64
12,662,335.28
12,382,345.14
12,101,001.71
11,818,298.46
11,534,228.81
11,248,786.15
10,961,963.86
10,673.755.26
10,384,153.65
10,093.152.30
9,800,744,44
9,506.923.27
9,211,681.98
8,915,013.68
8,616,911.48
8,317 .368.46
8,016,377.65
7,713,932.05
7,410,024.63
7,104,648.32
6,797,796.02
6,489,460.61
6,179.634.91
5,868,311.72
5,555.483.80
5,241.143.87
4,925.284.64
4.607,898.76
4.288.978.84
3.968,517.48
3.646,507.22
3,322.940.58
2,997,810.03
2,671,108.02
2,342,826.94
2,012,959.18
1.681 ,497.06
1,348,432.86
1.013,758.86
677,467.27
339,550.27
(0.00)

199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240

Page,

xhib

Incarceration Agreement - Hardeman County, Tennessee

FY96-97

30

30

June

31
JUly
31
August
30 September
31 October
30 November
31 December
31 January
28 February
31
March
30
April
31
May
30
June

31
JUly
31
August
30 September
31 October
30 November
31 December
31 January
28 February
31
March
30
April
31
May
30
June

551,250.00

551,250.00
Inmate
Operating Per
PopUlation
Diem Rate
@$32.28
1000
1504
1504
1504
1504
1504
1504
1504
1504
1504
1504
1504

Total

FY98-99

365

500

Total

FY97-98

365

Inmate
Operating Per
Population
Diem Rate
@$36.75

Total

111,900.00

Operating Per
Diem Rate
@$36.75

551,250.00

Debt Service
Per Diem Rate
@$7.46

111,900.00

Misc. Officer
Travel

6,250.00

Misc. Medical

20,800.00

111,900.00

$690,200.00

Debt Service
Per Diem Rate
@$7.46

1,120,175.08
1,505,022.72
1,456,473.60
1,505,022.72
1,456,473.60
1,505,022.72
1,505,022.72
1,359,375.36
1,505,022.72
1,456,473.60
1,505,022.72
1,503,849.60

231,260.00
347,815.04
336,595.20
347,815.04
336,595.20
347,815.04
347,815.04
314,155.52
347,815.04
336,595.20
347,815.04
336,595.20

17,382,957.16

3,978,686.56

Inmate
Operating Per
Population
Diem Rate
@$33.33
1504
1504
1504
1504
1504
1504
1504
1504
1504
1504
1504
1504

Debt Service
Per Diem Rate
@$7.46

Operating Per
Diem Rate
@$32.28

17,382,957.16

Debt Service
Per Diem Rate
0$7.46

3,978,686.56

Misc. Officer
Travel

75,000.00

Misc. Medical

250,000.00
$21,686,643.72

Dobt Service
Per Diem Rate
@$7.46

1,553,977.92
1,553,977.92
1,503,849.60
1,553,977.92
1,503,849.60
1,553,977.92
1,553,977.92
1,403,592.96
1,553,977.92
1,503,849.60
1,553,977.92
1,552,579.20

347,815.04
347,815.04
336,595.20
347,815.04
336,595.20
347,815.04
347,815.04
314,155.52
347,815.04
336,595.20
347,815.04
336,595.20

18,345,566.40

4,095,241.60

Operating Per
Diem Rate
@$33.33

18,345,566.40

Debt service
Per Diem Rate
0$7.46

4,095,241.60

Misc.Olficer
Travel (3.25% inflator)

Misc. Medical
(3.25% inflator)

77,437.50

258,125.00
$22,776,370.50

FY99-20

31
July
31
August
30 September
31 October
30 November
31 December
31 January
29 February
31
March
April
30
31
May

Inmate
Operating Per
Population
Diem Rate
0$34.41
1504
1504
1504
1504
1504
1504
1504
1504
1504
1504
1504

1,604,331.84
1,604,331.84
1,552,579.20
1,604,331.84
1,552,579.20
1,604,331.84
1,604,331.84
1,500,826.56
1,604,331.84
1,552,579.20
1,604,331.84

Debt Service
Per Diem Rate
@$7.46
347,815.04
347,815.04
336,595.20
347,815.04
336,595.20
347,815.04
347,815.04
325,375.36
347,815.04
336,595.20
347,815.04

Operating Per
Diem Rate
@$34.41

17,388,887.04

Debt Service
Per Diem Rate
@$7.46

3,769,866.24

Misc. Officer
Travel (3.25% inflator)
Misc. Medical
(3.25% inflator)

336
Inmate
Pop.
940
58
338
168
1504

Total
Per Diem
Blended
Rate 97-98 Per Diem
FY97-98
36.75 34,545.00
26.52
1,538.16
25.76
8,706.88
22.35
3,754.80
32.28

17,388,887.04
Per Diem
Rate 98-99
plus 3.25%
37.94
27.38
26.60
23.08

3,769,866.24
Blended
Per Diem
Per Diem
Rate 99-20
FY98-99
plus 3.25%
35,667.71
39.18
1,588.15
28.27
27.46
8,989.85
3,876.83
23.83
33.33

73,291.37

244,304.56
$21,476,349.20

Blended
Per Diem
FY 98-99
36,826.91
1,639.77
9,282.02
4,002.83
34.41

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
Correction, entered into Contract No.
on September 18, 1996, relating to the housing by
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
a.

is amended as follows:

By deleting therefrom the following:

"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.
b.

By substituting in lieu thereof the following:

"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.

1

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 of2,016 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 1,
1998, if the State provides written notice by July 1, 1997 ofits 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 6.1(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 1, 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
effect.

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

HARDEMAN COUNTY

STATE OF TENNESSEE
DEPARTMENT OF CORRECTION

State of Tennessee
County of _OovfdcoC\
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 ~1:4 day of ~ , 1997.

a~~ <{Y)O~

My Commission Expires:

Notar)4>ublic

II - ~S- a,ooO
4

State of Tennessee
County of Hardeman

Before me, the undersigned, a Notary Public of the State and County aforesaid, personally
appeared Don w. Cliff;twith whom I am personally acquainted (or proved to me on the basis
of satisfactory evidence), and who, upon oath, acknowledged himself to be County EXEQfutive of
Hardeman County, Tennessee, the within named bargainor, a
,and
that _he, as such County Executi v~being authorized so to do, executed the foregoing
instrument for the purposes therein contained, by signing the name of the StMti~lPrfS~stie by
him self as County Executive .
County of Hardeman

Witness my hand, at office, this 9th day of

My Commission Expires:

5/24/97

APPROVEU
STATE OF TENNESSEE

~~~. \s~~~

Jbhn Ferguson
Commissioner of Finance and Administration

William R. Snodgra
Comptroller of th

5

April

, 1997.

LIST OF EXHWITS

Exhibit B

Purchase Price Schedule

Revised Exhibit F

State's Maximum Liability

6

EXHIBITB

HARDEMAN COUNTY CORRECTIONAL FACILITY
PURCHASE OPTION PRICES
ASSUMPTIONS:
Initial Principal- Based on Bonds being issued on June 1,1997 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. Annual rate of 5.80% utilized for debt service.
Adjusted Principal - Based on ending balance of principal remaining January 1, 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 at the end of the month denoted under the month column.

Month
(Refers to last day of month)
Jun·97
Jul·97
Aug·97
Sep·97
Oct-97
NOY·97
Dec-97
Jan·98
Feb-98
Mar-98
Apr-98
May-98
Jun-98
Jul-98
Aug-98
Sep-98
OcI-96
NoY-96
Dec-96
Jan-99
Feb-99
Mar-99
Apr-99
May-gg
Jun-gg
Jul-99
Aug-99
Sep-gg

Oct-gg
NoY-99
Dec-99
Jan-OO
Feb-OO
Mar-OO
Apr-OO
May-OO
Jun-OO
Jul-OO
Aug-OO
Sep-OO
Ocl-OO
Noy-OO
Dec-OO
Jan-Ol
Feb-Ql
Mar-Ql
Apr-Ol
May-Ol
Jun-Ol
Jul-Ol
Aug-01
Sep-Ol

Purchase Option
Price

1
2

3
4

5
6
7
8
9
10
11
12
13
14
15
16
17
16
19
20
21
22
23
24
25
26
27
28
29
30
31
32

33
34
35
36
37
38

39
40
41
42
43

44

Nov-Ql

45
46
47
46
49
50
51
52
53
54

Dec-Ol

55

Jan-Q2
Feb-02

56
57
56
59
60
61
62
63
64
65

Oct-Ql

Mar-Q2
Apr-Q2
May-Q2
Jun-02
Jul-02
Aug-02
Sep-Q2

OcI-02

$46,292.741.91
46,164.965.40
46.076.667.97
47,967.647.10
47,856.500.27
47,746,624.93
47,638,216.52
56,161,717.16
56,025,297.61
57,888,216.70
57,750,477.24
57,612,070.03
57,472,993.85
57,333,245.47
57.192,621.63
57,051,719.09
56,909,934.55
56,767,46471
56,624,30627
56,460,455.90
56,335,910.26
56,190,665.97
56,044,719.67
55,898,067.97
55,750,707.45
55,602,634.66
55,453,646.23
55,304,338.64
55,154,108.42
55,003,152.10
54,851,466.15
54,699,047.05
54,545,891.26
54,391,99522
54,237,355.34
54,081,966.04
53,925,629.70
53,766,936.70
53,611.265.37
53,452,672.07
53,293,693.10
53,133,744. 76
52,973,023.35
52,811,525.11
52,649,246.29
52,466,183.13
52,322,331.63
52,157,666.59
51,992,249.57
51,826,010.92
51,656,966.79
51,491,119.29
51,322,45651
51,152,982.55
50,982,667.44
50,811,569.25
50,639,623.98
50,466,647.65
50,293,236.23
50,116,765.66
49,943,491.96
49,767,350.99
49,590,356.67
49,412,510.69
49,233,803.50

Page 1

EXHIBITB

HARDEMAN COUNTY CORRECTIONAL FACILITY
PURCHASE OPTION PRICES
ASSUMPTIONS:
Initial Princlpal- Based on Bonds being issued on June 1, 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. Annual rate of 5.80% utilized for debt service.
Adjusted Princlpal- Based on ending balance of principal remaining January 1, 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 at the end of the month denoted under the month column.

Purchasl! Option
Price

Month
(Refers to last day of month)

Nov-Q2

Oct-Q4

66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89

Nov-04

90

Deo-04

91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121

De0-02
Jan-Q3
Feb-03
Mar-03
Apr-03
May-03
Jun-Q3
Jul-Q3
Aug-Q3
Sep-Q3
Oct-03

Nov-03
Deo-03
Jan-04
Feb-04
Mar-04
Apr-04
May-04
Jun-04
Jul-04
Aug-04
Sep-04

Jan-OS
Feb-OS
Mar-Q5
Apr-OS
May-05
Jun-05
Jul-05
Aug-05
Sep-05
Oct-05

Nov-05

Dec-OS
Jan-06
Feb-06
Mar-Q6
Apr-Q6
May-06
Jun-06
Jul-06
Aug-06
Sep-06
Oct-06
Nov-06
Dec-Q6
Jan-07
Feb-Q7
Mar-Q7
Apr-Q7
May-Q7
Jun-Q7
Jul-07
Aug-Q7
Sep-07
Oct-07

Nov-07

Dec-07
Jan-Q8
Feb-08
Mar-08

49.054,232.37
48.873,793.31
48,692,482.13
48,510,29461
48,327,226.51
48,143,273.59
47.958,431.56
47.772.696.13
47.586,062.98
47,398,527.76
47.210,08613
47.020,733.70
46,830,466.06
46,639,278.79
46,447,167.46
46,254,127.58
46,060,154.68
45,865,244.24
45,669,391.74
45,472.592.62
45,274,842.30
45,076,136.18
44.876,469.66
44,675,838.08
44,474,236.78
44,271,661.07
44,068,106.25
43,863.567.58
43,658.040.30
43,451.519.65
43,244,000.81
43,035,478.96
42,825.949.26
42,615.406.83
42,403.846.78
42,191,264.18
41.977,654.11
41.763,011.59
41.547,331.63
41,330,60921
41,112,839.31
40,894,016.84
40,674.136.74
40.453,193.88
40,231,183.14
40,008,099.34
39,783,937.30
39,558.691.81
39.332,357.64
39,104,929.52
38.876.402.16
38,646,770.25
38,416,028.46
38,184.171.41
37,951,193.72
37.717,089.97
37.481,854.73
37.245.482.51
37,007,967.82
36,769,3OS.15
36,529,48894
36,288,51362
36,046,37358
35,803,063.20
35,558,576.82

122
123
124
125
126
127
128
129
130
Page

EXHIBITB

HARDEMAN COUNTY CORRECTIONAL FACILITY
PURCHASE OPTION PRICES
ASSUMPTIONS:
initial Principal- Based on Bonds being issued on June 1,1997 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. Annual rate of 5.80% utilized for debt service.
Adjusted Principal- Based on ending balance of principal remaining January 1, 1998 ($47.638,218.52) plus
additional principal (Bonds issued on January 1, 1998) amortized on a monthly basis ror 233 months beginning In the 8th month.
Purchase Option Price - Based on remaining principal due at the end or the month denoted under the month column.

Month
(Refers to last day of month)
Apr.Q8
May-DB
Jun-08
Jul-08
Aug-DB
Sep-DB
OCt-DB
Nov-DB

0ec-08
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
OCI-09
Nov-09

Dec-09
Jan-10
Feb-10
Mar-l0
Apr·l0
May-10
Jun-10
Jul-l0
Aug-10
Sep-10
OCt-l0
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-l1
Jun·11
JUI-ll
Aug-l1

Sep-ll
0Ct-11

Nov-11
Dec-ll
Jan-12
Feb-12
Mar-12
Apr·12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
OCI-12
Nov-12

Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13

Purchase Option
Price
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189

35,312,908 76
35.066,053.30
34.818,004.71
34.568,757.21
34,318,30502
34,066,642.31
33,813,763.23
33,559,661.91
33,304,332.42
33,047,768.84
32.789,96521
32,530,915 52
32,270,613.76
32,009,053.88
31.746,229.79
31,482,13538
31,216,764.52
30,950,111.03
30.682,168.72
30,412,93135
30,142,392.66
29.870,546.38
29,597.386.17
29,322,90568
29,047,09854
28,769,958.34
28,491.478.62
28,211,652.91
27,930,474.72
27,647,937.49
27,364,034 67
27,078,759.66
26,792,105.81
26,504,066.47
26,214,634.94
25,923,804.49
25,631,568.36
25,337,919.76
25,042,851.86
24,746,357.79
24,448,43067
24,149,063.56
23,848,249.52
23,545,981.54
23,242,252.60
22,937,05564
22,630,383.56
22.322,229.23
22,012,585.48
21,701,445.13
21,388,800.93
21,074,645.62
20.758,971.89
20,441,77240
20,123,039.78
19,802,766.62
19,480,945.48
19,157,568.86
18,832,629.26
18,506,119.12
18,178,030.84
17,848,35681
17,517,089.35
17,184,220.76
16,849,743.31

190
191
192
193
194

195
Page 3

EXHIBITB

HARDEMAN COUNTY CORRECTIONAL FACILITY
PURCHASE OPTION PRICES
ASSUMPTIONS:
Initial Principal - Based on Bonds being Issued on June 1, 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. Annual rate of 5.80% utilized for debt service.
Adjusted Prlncipal- Based on ending balance of principal remaining January 1, 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 at the end of the month denoted under the month column.

Month

Purch~SI!

(Rerers to tnt d~y or month)
5ep-13
Oct-13
Nov-13
Oec-13
Jan-14
Feb-14
Mar-14
Apr·14
May-14
Jun-14
JUI-14
Aug-14
Sep-14
Oct-14
Nov·14

Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
JUI-15
Aug-15
5ep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
5ep-16
Oct-16
Nov-16

Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17

196

Option
Price

16.513.649.22
16,175.930.68
15.836.579.82
15.495.588.78
15.152.949.60
14,808.654.34
14,462.694.99
14,115,063.50
13.765.751.79
13.414.751.73
13,062,05518
12.707,653.93
12.351,539.74
11.993,704.33
11,634,139.39
11.272,836.54
10.909.787.40
10.544,983.52
10,178,416.43
9,810,077.59
9.439.958.45
9.068.050.39
8,694.344.79
8.318.832.94
7.941.506.11
7,562,355.54
7.181,372.41
6.798,547.86
6.413,872.99
6.027.338.86
5.638.936.48
5,248.656.82
4.856,490.81
4.462,429.33
4.066,463.22
3,668.583.28
3,268,780.24
2,867,044.83
2,463,367.70
2.057.739.46
1.650.150.68
1,240,591.89
829.053.57
415,526.14
(0.00)

197
198
199

200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219

220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240

Page 4

Exhibit F

Incarcerallon Agreement- Hardeman County, Tennessee

FY96·97

30

30

June

31
July
31
August
30 September
31
October
30 November
31 December
31
January
28 February
31
March
30
April
31
May
30
June

31
July
31
August
30 September
31
Oclober
30 November
31 December
31
JAnuary
28 February
31
March
30
April
31
May
30
June

july
31
31
August
30 September
31
October
30 November
31 December
31 January
29 February
31
March
30
April
31
May

336

Inmate
Operating Per
Population
Diem Rale
@$30.34
1000
1504
1504
1504
1504
1504
2016
2016
2016
2016
2016
2016

2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016

Total

Debl Service
Per Diem Rate
@$4.90

111,900.00

Operating Per
Diem Rale
@$36.75
Debt Service
Per Diem Rate
@$7.46

Debt Service
Per Diem Rate
@$7.46

6,250.00

Misc. Medical

20,800.00

Debt Service
Per Diem Rate
@$4.90

19,679,010.28

4,670,019.68

453,243.26

1,957,999.68
1,957,999.68
1,894,838.40
1,957,999.68
1,894,838.40
1,957,999.68
1,957,999.68
1,768,515.84
1,957,999.68
1,894,838.40
1,957,999.68
1,956,528.00

466,220.16
466,220.16
451,180.80
466,220.16
451,180.80
466,220.16
466,220.16
421,102.08
466,220.16
451,180.80
466,220.16
451,180.80

23,115,556.80

5,489,366.40

Debt Service
Per Diem Rale
@$7.46

2,021,745.60
2,021,745.60
1,956,528.00
2,021,745.60
1,956,528.00
2,021,745.60
2,021,745.60
1,891,310.40
2,021,745.60
1,956,528.00
2,021,745.60

466,220.16
466,220.16
451,180.80
466,220.16
451,180.80
466,220.16
466,220.16
436,141.44
466,220.16
451,180.80
466,220.16

21,913,113.60

5,053,224.96

Operallng Per
Diem Rate
@$32.28
Debt Service
Per Diem Rale
@$7.46
@$4.90
Misc. Ofllcer
Travel
Misc. Medical

940
58
338
168
512
2016

Per Diem
Blended
Rale 97·98 Per Diem
FY 97·98
36.75 34,545.00
26.52
1,538.16
25.76
8,706.88
22.35
3,754.80
24.66 12,625.92
30.34

Per Diem
Rate 98·99
plu93.25%
37.94
27.38
26.60
23.08
25.46

19,679,010.28

4,670,019.68
453,243.26
75,000.00

250,000.00
$25,127,273.22

Debt Service
Per Diem Rate
@$4.90
77,627.30 Operating Per
23,115,556.80
77,627.30
Diem Rate
75,123.19
@$33.33
77,627.30
75,123.19 Debl Service
77,627.30 Per Diem Rale
@$7.46
77,627.30
5,489,366.40
ct$4.90
70,114.98
913,998.84
77,627.30
Misc. Officer
77,437.50
75,123.19 Travel (3.25% Inflator)
77,627.30
75,123.19
Misc. Medical
258,125.00
913,998.84 (3.25% Inflator)
$29,854,484.54
Debl Service
Per Diem Rate
@$4.90
77,627.30 Operating Per
21,913,113.60
77,627.30
Diem Rale
@$34.41
75,123.19
77,627.30
75,123.19 Debt Service
77,627.30 Per Diem Rate
@$7.46
77,627.30
5,053,224.96
72,619.09
@$4.90
841,379.75
77,627.30
Misc. Officer
73,291.37
75,123.19 Travel (3.25% Inflator)
77,627.30
Misc. Medical
244,304.56
(3.25% Inflator)
841,379.75
$28,125,314.24

Tolal Three Year Contract Liability

Inmate
Pop.

111,900.00

$690,200.00

77,627.30
70,114.98
77,627.30
75,123.19
77,627.30
75,123.19

Debl Service
Par Diem Rate
@$7.46

551,250.00

Misc. Officer
Travel

111,900.00

231,260.00
347,815.04
336,595.20
347,815.04
336,595.20
347,815.04
466,220.16
421,102.08
466,220.16
451,180.80
466,220.16
451,180.80

Inmate
Operating Per
Population
Diem Rale
@$32.35
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016

Debt Service
Per Diem Rate
@$7.46

1,120,175.08
1,505,022.72
1,456,473.60
1,505,022.72
1,456,473.60
1,505,022.72
1,896,128.64
1,712,632.32
1,896,128.64
1,834,963.20
1,896,128.64
1,894,838.40

Inmate
Operating Per
Populallon
Diem Rate
@$31.33

Tolal

FY99·20

551,250.00

551,250.00

Total

FY98·99

365

500

Total

FY97·98

365

Inmate
Operating Per
Populallon
Diem Rale
@$36.75

$83,797,272.00

Blended
Per Diem
FY 98·99
35,667.71
1,588.15
8,989.85
3,876.83
13,036.26
31.33

Per Diem
Rate 99·20
plus 3.25%
39.18
28.27
27.46
23.83
26.29

Blended
Per Diem
FY98·99
36,826.91
1,639.77
9,282.02
4,002.83
13,459.94
32.35

THIRD 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:

I

Delete following Section in its entirety:
Section 2.1.

Term. 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.

Term. 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 tenhs 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 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
and insert the following in its place:

F:\Contracts\HCCF Amend3.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 ofthe exercise of
the option, the Commissioner, in the Commissioner's sole discretion, detennines 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 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 1 (State's FY ending June 30, 1997)
Year 2 (State's FY July 1, 1997 - June 30, 1998)
Year 3 (State's FY July 1, 1998 - June 30, 1999)
Year 4 (State's FY July 1, 1999 - May 31,2000)

$ 690,200
$25,127,300
$29,854,500
$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 1 (State's FY ending June 30, 1997)
Year 2 (State's FY July 1, 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 1,2001- June 30,2002)
Year 7 (State's FY July 1,2002 - May 31, 2003)

F:\Contracts\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 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, 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:\Contracts\HCCF Amend3.doc

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 the right to pay the provider and deduct the amount from payments due
from the State to the 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 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, 29 th 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
4 th 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
201 Fourth Avenue North, Suite 1420
Nashville, Tennessee 37219

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

F:\Contracts\HCCF Amend3.doc

4

IN WITNESS WHEREOF:
COUNTY, TENNESSEE:
DATE:

tNljoJ/••

y Nuckolls, County Executive
State of Tennessee
Countyof ~

)
)

Before me, the undersigned, a Notary Public of the State and County aforesaid, personally
appeared Sammy Nuckolls, 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, 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 ~ day of

Jl.b1lUD.Cj_ _---", 1999.

DEPARTMENT OF CORRECTION:

~~C~~I~\~"'\""""""~r-,- -.,..--

Donal Campbell, Commissio~er
State of Tennessee
County ofl)a.V l'~

DATE:~

)
)

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 County of Hardeman himself as County Executive.

Witness my hand, at office, this

IO~yof~o.ry

,f~

My Commission Expires:

JJ-JS- ~c:x::o
F:\Contracts\HCCF Amend3.doc

5

APPROVED:
DEPARTMENT OF FINANCE AND ADMINISTRATION:
DATE:

G. Morgan, Comptroller of e Treasury

F:\Contracts\HCCF Amend3.doc

:s- 3- crU

DATE:~

6

,
Inmate
Pop.

Per Diem

Blended

Rate 97·98 Per Diem

940
58
33tl
168
512

36.75

34545

26.52

1538.16
8706.68
3754.6
1262592

25.76
22.~5

24.e6

2(l16

Per-Diem

Blended

Rate 98-99 Per Clem
pll.lS 3.25%
37.94 35667J13
27.38 1566.1502

Per Diem

Blended

Rate 99-00

Pcr Diem

23.08 3816.831
25A6 13036.262

ZO.34264

39.18 36626.9132
28.27 \639.7 6508
27.46 9282.02364
2~.83 4002.82601

26.29 1345t:.9409

31.32ffl75

otalver Diem payment:

eDt service Per Diem Rate:

lise. Medical
Iisc. O1fiCer I Travel:

hree (3) Year COntract Extenstt;n

01504 beds
C512l::eds

$. c.,~'\

$7.40
$4.90

Fer Diem
Rate 01-02

Blended

I'er Diem

Per Diem

Rate 02·03

Bexed
PerDem

pus 2.5%
plus 2.5%
4219 3965t.5575
41.16 18691.2756
30.45 1765.34.764
29.70 1722.'1819
29.57 999512446
28.15 9514.07444
28.65 9751.926~
25.66 43·O.OO7~5
24.42 4102.89a71
25.03 4205.4711f!
2831 144904.8642
26.95 137~.43·~5
27.62 14141.3504

plus 2.5%

plus 3.25%

26.60 8969.8536

Blended
Per Diem
Rate {j{}01 ,. Per Diem

40.16 '3U47.586
28.96 16&).75921

l2.34695~

33.'556338

33.9845247

34.8341378

~3.867,39f.

$24.397,242

$25,007,173

$25,632.352

4,106,461
918.221
$5,024.682

",095.242

4,og5,242

".095.242

915.712
$5,010,954

$15.712

915,712

$5,om.95-4

$f.OD,954

$2$6,51,(

$273,177

$2&0,006

$287.(06

$1$,~

$81,953

$84.002

$85,102

29,238,549
1mo.

29,163.325
12 mos.

30.382.1~

$2;• •602

$29,76~.325

31.016,414
11 mos.
$28,40/,120

12 mos.
S30.312.134

TDoe ADMIN

Fax:615-741-4605

Mar 13 '00

DO.N SUNDQUIST
GOVERJIIOll

15:36

P.02

DONAL CAMPBELL
COMMIS$JONI:;R

. STATE or TEl'fNESlStr.

,DEPAllTMEN'!:OI' COR.llECTION

roTmTH n.oo~·R.\CHU "AeJaioN sffiLDINC
. NASHVILLE. TENNESSEE )7243-6465

(615) 7.1.tioo~~.0ftIft (61!5}!31-81IU Fa

March 13, 2000

The Honorable JOhnn.Fer~soD .•.•. ..
Commissioner of Finance and AdminiStratw11'
First FlnoY',. ~tftterftllHni .. "",,', ;:' ::,~ "
Nashville, TeIli1~s~~)724~
" . :,':'
and

The Honorable JObn:G.Morgatl
Comptroller oithe Treasury
First Floor, StateCapitol·' "

Nashville, Tennes~~~7243
Gentlemen:

The DepartmenU)fc::oIj~tjun I~lfullYfequests ·yow: approval of anamcndmont to
renew the contract. between the :State:ofTennessee~ Department of Correction, and
Hardeman, COtlnty; Tennessee; tc>'· hQuse inmates·· sentenced to the care, custody, and
c:ontl'ol of the dq,artnient at the Hardeman County Correctional Facility. Pursuant to

Article 2, Section 2. ofthe,subject,conlract, I !l.lve detennined that the available facilities

and institutions of the Department of Correction lU'e at ropacity.

fhallk you for yourconsideralton:ofthisimportanl IDtlll.t:r.

Sincerely,

~~l-~

G....
. ..

Donal Campbell
DC:RR

.,.,

•...

:~

'.. ~.

~·'l· ,..

.,:

?:.,,:

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. Term. 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
Year
Year
Year
Year
Year
Year

1 (State's
2 (State's
3 (State's
4 (State's
5 (State's
6 (State's
7 (State's

FY ending June 30, 1997)
FY July 1, 1997 - June 30,
FY July 1, 1998 -June 30,
FY July 1, I999--::--'June 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

05/30/2003

13:11

05/30/2883

12:48

7316586806

DENTON AND CARY
TN CORR ADMIN SERV

615-741-46135

PAGE

03/05

PAGE

03/05

IN WITNESS WHEREOF:

HARDEMAN COUNlY, TENNESSEEi

~~. ~~

DATE,5/30/03

/

State of Tenn~
County of BARDEMAN

)
)

May

-----1

2003 .

Jl-eJuft

N~ry Public

alAO

DEPARTM~N:

a

1. White, Commissioner

'd

st:lteOfT~
- L I:Y:D

County Of

)
)

6efore me, the undersigned, a Notary Public of ttJe State and County aforesaid, personally
appeared Quenton 1. White, with whom I elm personally aCXlualnted (or proved to me on the basis rft.
satisfelctory evidence), and who, upon OClth, ecknow!edged himself to be Commissioner of ttle
Department of Correction for the state of Tennessee, the within named bargainor, and that he, as such
Commissioner, being iEluthori~e.d so to dOl executed the foregQins instrument for the purpose:s therein
contained, by slgning the name of the County of Hardeman himself as County Executive.

Witness my hand, at office,

My Commission Expires:

My Commission expires SEP. 25, 2004

thi~ay of

(Y\O

l(

,2003.

O{\(d.p)~ ~, 717~

Notary ~lic

APPROVED:
DEPARTMENT OF FINANCE AND ADMINISTRATION:

h
John G.

DATE:~
DATE:~

3

EXHIBIT F

04/16/03

I: .
Source:

I

I

Cfl

u.s.

Consumer Price Index
All Urban Consumers - (CPI-U)
U.S. City Average
All Items

Department of Labor
Bureau of Labor Statistics
Washington, D.C. 20212

Annual Percent Change:
2000
2001
2002

I

3.36%
2.85%
1.58%

COMPOUND ANNUAL

166.6
172.2
177.1
179.9

~ROWTM

Per Diem Rate
6/1/02 - 5/31/03

940
58
338
168
512

$41.60
$30.01
$29.16
$25.30
$27.91

I

PI~R DIEM CA:lCULrmoNs
Blended
Per Diem
$39,104.00
$1,740.58
$9,856.08
$4,250.40
$14,289.92

Per Diem Rate
6/1/03 - 5/31/04
$42.68
$30.79
$29.92
$25.96
$28.64

Blended
Per Diem
$40,120.70
$1,785.84
$10,112.34
$4,360.91
$14,661.46
$35.24

$34.35

.1
Per Diem Rate
611/04 - 5/31/05
$43.79
$31.59
$30.70
$26.63
$29.38

0.033613
0.028455
0.015810
0.077879 Total Growth for 3 Years
0.025960 Compound Annual Growth

[ FISCAL YEAR CONTfl:A:CT c,'l,l.,cm,AnONS

Inmate
Population

2,016

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

BL.ENDED

II

Blended
Per Diem
$41,163.84
$1,832.27
$10,375.26
$4,474.29
$15,042.66

Per Diem Rate
6/1/05 - 5/31/06
$44.93
$32.41
$31.49
$27.33
$30.14

$36.15

Blended
Per Diem
$42,234.10
$1,879.91
$10,645.02
$4,590.63
$15,433.76
$37.09

I
S2.,j31.~31.3S

Total Per Diem Payment:
Debt Service Per Diem Rate:

1504 beds
512 beds
Total Debt Service
@

@

Miscellaneous Medical:
Miscellaneous Officer Travel Expenses:
TOTALS BY FISCAL YEAR:

$7.46
$4.90

$26.1}56,50a.~2. $~UG1 ,08a,91

336.595..20
221.088,00
5~ ,6&3.2.0:

4,100,461,44918.220.80
5,(124;682.24

4.095,241'.60
915;712,.00
5,01'O,g5:U)D

3,75fl.645.40
840.448.00

ta,OiXlOP

12'0,000.00.

120ImlO'.OQ.

11:0.0(J~MIO

SD,OOO.OO

GO, QtlO.(lll

55,000:00

4j599.Q9~. 40'

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:
L

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 Couhty 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
Year
Year
Year
Year
Year
Year
Year
Year
Year

$
690,200
1 (State's FY ending June 30, 1997)
2 (State's FY July 1, 1997 - June 30, 1998) $25,127,300
3 (State's FY July 1, 1998 - June 30, 1999) $29,854,500
4 (State's FY July 1, 1999 - June 30, 2000) $30,561,700
5 (State's FY July 1, 2000 - June 30, 2001) $29,763,300
6 (State's FY July 1, 2001 - June 30, 2002) $30,382,100
7 (State's FY July 1, 2002 - June 30, 2003) $31,171,000
8 (State's FY July 1, 2003 - June 30, 2004) $31,261,200
9 (State's FY July 1, 2004 - June 30, 2005) $31,852,100
10 (State's FY July 1, 2005 - May 31, 2006) $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-Contracts\3292I \HCCF Amend 5 Simple.doc

1

The other terms and conditions of this Contract not amended hereby
and effect.

shall remain in full force

IN WITNESS WHEREOF:

DATE:

1-/~-OS

State of Tennessee
HARDEMAN
County of
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 satisfi,'lctory
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, executed the foregoing instrument for the purposes therein contaIned, by signing the name of the
County of Hardeman himself as County Executive.

~~

. l+k

Witness n'Y Mild,

at office, tili' _1'1+_'--_ day of ~_J_~_l..:..Y,--'--'----1\\' ~OO3.~

(~OrAR:r.·t \
PU~LlMy <to~Jnission Expires:

4

j~~ .b ~ \JJa .
NotarYp~~lf'
k , .~--

::J:

-J:;'

~

~ LARGE/I:~:7

~NCOI.l~\~

-ItI'

3/21/07

~,

COM/,(. EXP. ~rz;.

CORRECTION:

DATE:

a

)
)

eOfTj)lsee
County of
vi dScc\

Before me, the undersigned, a Notary Public of the State and County aforesi.'lid, personally
i.'Ippeared 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 i.'Iuthorized 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:

11~y of ~--'

0ec1D1
a
NO~blic

2003.

.

.

--{Y), .jV}cxct:--f

<

-

MyCommJsslon &pIres SEP. 25, 2004
H:\fi5c~l-eonIJ'llCts\32921

\HCCF Amend 5 Simple,doc

2

APPROVED:
DEPARTMENT OF FINANCE AND ADMINISTRATION:

DATE:

r of the Treasury

AUG

e 6 2883

DATE:~

r

H:\Fiscal-Contracts\32921\HCCF Amend 5 Simple.doc

3

EXHIBIT F

04/16/03

[
Source:

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

I

I

~
Consumer Price Index
All Urban.Consumers· (CPI-U)
U.S. City Average
All Items

Inmate
Per Diem Rate
Population 6/1/02 - 5/31/03

II

940
58
338
168
512

II

Annual Percent Change:
2000
2001
2002

3.36%
2.85%
1.58%

II

166.6
172.2
177.1
179.9

$43.79
$31.59
$30.70
$26.63
$29.38

0.033613
0.028455
0.015810

FISCAL YEAR CONTRACT CALCULATIONS

II

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

Blended
Per Diem

S2.131.2J.1·..36
$7.46
$4.90

Miscellaneous Officer Travel Expenses:

i
~

:'l~

"H

~1..!

:J
Blended
Per Diem
$40,120.70
$1,785.84
$10,112.34
$4,360.91
$14,661.46
$35.24

Per Diem Rate
6/1105 - 5/31/06
$44.93
$32.41
$31.49
$27.33
$30.14

Blended
Per Diem
$42,234.10
$1,879.91
$10,645.02
$4,590.63
$15,433.76

$37.09

~-

Modica

TOTALS BY FISCAL YEAR:

$42.68
$30.79
$29.92
$25.96
$28.64

$41,163.84
$1,832.27
$10,375.26
$4,474.29
$15,042.66

I

Debt Service Per Diem Rate:

Per Diem Rate
6/1103 - 5/31/04

$36.15

Total Per Diem Payment:

i sc:ellaMO L1&

Blended
Per Diem

$34.35

Per Diem Rate
6/1/04 - 5/31/05

0.077879 Total Growth for 3 Years
0.025960 Compound Annual Growth

I

$41.60
$30.01
$29.16
$25.30
$27.91

2,016

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

BLENDED PER DIEM CAlCULATIONS

...it... ml'

$016,05 6: ,5Q8~ 02 $26.6&1,Cl88.9'1

336.5M.20
221,088.00
657,683.2'0

4,106,46144

(09:5,241.60

918,Z20.80
~.024,6 82.24

915.712.00
5.01 U,S S3 .60

10,000.00

120,000.00

120,000.00

O,ilOO.'OO

!i,ODO.OO

60,000,0(1

G'Q,OOO.oo

55,000.00

RFS 329.21-001

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 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.

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 ending June 30, 1997)
(Period July 1, 1997 – June 30, 1998)
(Period July 1, 1998 – June 30, 1999)
(Period July 1, 1999 – June 30, 2000)

$ 690,200
$25,127,300
$29,854,500
$30,561,700
1

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:
I

State of Tennessee
County of IUrdelW1.'"
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 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, executed the foregoing instrument for the purposes therein contained, by signing the name of the
County of Hardeman himself as County Executive.

J I"

I"

-.!.~

&. ,---{lyuJlJ1,,-,---~otary Public

DATE:

Ie &AY ¢h

_ _ _,200tD.

D~{Y).~~
(J
Notary Public

RFS 329.21-001

APPROVED:
DEPARTMENT OF FINANCE AND ADMINISTRATION:

DATE:

I-/(-()C,

4

Exhibit F

1

Exhibit G

FEDERAL BUREAU OF INVESTIGATION
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 government 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 governmental 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. State and federal Inspectors General Offices are included.

1

Exhibit G

1.08 Noncriminal Justice Agency (NCJA) - a governmental 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 government agency and a
private 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

Exhibit G
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 shall 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 CGA 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, and/or 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 CGA.

3

Exhibit G

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 FBIINCIC 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. State and
national record checks by fingerprint identification must be conducted 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 state 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 turn notify the
Contractor-appointed Security Officer.

4

Exhibit G

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 CGA 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
governing 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;

5

Exhibit G

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 CTO 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.

6

Exhibit G

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

7

Exhibit G

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) Title 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

8

AMENOK011609

RFS No. 329.21-001
SEVENTH AMENDMENT TO INCARCERATION AGREEMENT
by and between
THE STATE OF TENNESSEE, DEPARTMENT OF CORRECTION
AND
HARDEMAN COUNTY, TENNESSEE
TO GU-97-'12466-'10
This Contract Amendment is made and entered 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." It is mutually understood and agreed by and between said,
undersi9ned contracting parties that the subject Contract 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 fifteen (15) 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 two (2) 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 th'e Commissioner's sole discretion, detenmines 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 Liabilitv. Notwithstanding any provision contained herein to
the contrary, in no event shall the maximum liability of the State exceed:
(Period ending June 30, 1997)
(Period July 1, 1997 - June 30, 1998)
(Period July 1, 1998 - June 30, 1999)
(Period July 1, 1999 - June 30, 2000)
(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)
(Period June 1, 2009 - June 30, 2009)
(Period July 1, 2009 - June 30, 2010)
(Period July 1, 2010 - June 30, 2011)
(Period July 1,2011 - May 31,2012)

GU-97-02466-'10 Amendment #7

$ 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
$ 2,732,648
$33,308,817
$34,183,219
$31,963,555
$ 2,942,865
$35,885,376
$36,898,292
$34,847,597

1

AMENDK011609

RFS No. 329.21-001
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 revisions set forth herein shall be effective JUNE 1, 2009. All other terms and conditions not
expressly amended herein shall remain in full force and effect.
IN WITNESS WHEREOF,
HARDEMAN COUNTY, TENNESSEE:

State of Tennessee
County of Hc>ed.e"",o"t
Before me, the undersigned, a Notary Public of the State and County aforesaid, personally
appeared Willie Spencer, 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, 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.~lJ~~/?"'3u.oe,

My Commission Expires:

::::

~~~~%
l ~SSl'£ \ %~

~C'I~~IJ« J:~

,20

oq .

_~_",l1,,",_G II-nn~l8""aJ--

_

~tc

~~~......;:~~
~
_.' ..~q~.i'
~

OF",~

.s'

~... :t/II/II ft\\'\' '\.,'"
CO.\f~. EXP. ,,,,,<,"DEPARTMENT OF CORRECTION:

DATE

GU-97-02466-00 Amendment #7

2

AMENOK011609

RFS No. 329.21-001
State of Tennessee
County of 04 1 ;-'0 <X'>
1

J

Before me, the undersigned, a Notary Public of the State and County aforesaid, personally
appeared George M. Little, Commissioner, 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 Commissioner of the Department of Correction.
Witness my hand, at office, this ~ day of _~~""'::L..:===---,--

My Commission Expires:

2f.l" 02~

"202!L.

~e~_

Notary PUbiir------v-=----

,;)0(;8

APPROVED:

DATE

DATE

GU-97-02466-09 Amendment #7

3

EXHIBIT F
Hardeman County Correctional Center Contract
Inflation Factors for 06/01/09 - 05/31/12 Contract Amendment
03/17/09

Source:

Consumer Price Index
All Urban Consumers - (CPI-U)
U.S. City Average
All Items

U.S. Department of labor

Bureau of Labor Statistics
Washington, D.C. 20212

Inmate
Per Diem Rate
Population 6/1108 - 5/31/09
940
58
338
168
512

Annual Percent Change:

2006
2007
2008

. 3.23%
2.85%
3.84%

Blended
Per Diem

$48.78
$35.19
$34.19
$29.67
$32.72

$45,853.20
$2,041.02
$11,556.22
$4,984.56
$16,752.84

2,016

-~::{OMP9IND~AIiN~~~GR;o'kfit.~

. .,..

195.300
201.600
207.342
215.303

Per Diem Rate

Blended
Per Diem

6/1/10 - 5/31/11
$52.05
$37.55
$36.48
$31.66
$34.92

0.032258
0.028482
0.038398
0.099136 Total Growth for 3 Years
0.033045 Compound Annual Growth

Debt Service Por Diem Rato:

@1504 beds
@ 512 beds

Total Debt Service

Miscellaneous Medical:
Miscellaneous Officer Travel Expenses:

TOTALS BY FISCAL YEAR:

$7.46
$4.90

Per Diem Rate

6/1/11 - 5/31/12

$53.77
$38.79
$37.69
$32.71
$36.07

711109 - 6/30/10

$47,386.36
$2,108.37
$11,937.58
$5,149.05
$17,305.48

Blended
Per Diem

$50,544.12
$2,249.82
$12,738.46
$5,494.50
$18,466.48
$44.39

$42.97

6/1/09·6/30/09

Blended
Per Diem

$41.60

$48,929.45
$2,177.95
$12,331.52
$5,318.97
$17,876.56

II

Total Per Diem Payment:

$50.39
$36.35
$35.32
$30.65
$33.80

$40.27

-: .... _

The compound annual growth In the consumer price Index for 811 urban consumers
over the past three years (2006 to 2008) Is 3.30-/•.

2005
2006
2007
2008

Per Diem Rat.

6/1/09 - 5/31/10

7/1110·6130/11

7/1111 ·5/31/12

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[~!~~~~~:~fu.~')l:.:,htL.~~~£"~~:._£:t,~:.~:c,~~~_~1\:·"
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$2,942,864.16

$35,885,375.49 $36.898,291.41

$34,847,596.71