Agenda Item AGENDA STAFF REPORT ASR Control 11-001718
MEETING DATE:	12/06/11
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	All Districts
SUBMITTING Agency/Department:	Probation (Approved)
Department contact person(s):	Chris Bieber (714) 937-4707
	Brian Wayt (714) 937-4728

Subject: Cost Recovery Fee Hearing-Continuous Electronic Monitoring

ceo Concur	County Counsel Review		Clerk of the Board
Concur	Approved Resolution to Form		Public Hearing
			3 Votes Board Majority
Budgeted: N/A		Current Year Cost: N/A		Annual Cost: N/A
Staffing Impact: No		# of Positions:		Sole Source: N/A
Current Fiscal Year Revenue: N/A
Funding Source: N/A
Prior Board Action: N/A

RECOMMENDED ACTION(S):

1.	In accordance with Public Resources Code Section 20180 (b) (8) and 14 CCR Section 15273 of the California Environmental Quality Act (CEQA), find that the proposed application fee and administrative fee for the Supervised Electronic Confinement Program (aka. Continuous Electronic Monitoring) are only for the purposes of meeting operating expenses and expenses to purchase and lease supplies, equipment and materials, and are therefore statutorily exempt from the provisions of CEQA.
2.	Find that the proposed project is excepted from the provisions of Proposition 26 pursuant to Section 1 of Article XIII C, subdivision (e)(2) of the California Constitution.
3.	Hold a public hearing pertaining to the application fee and administrative fee for the provision of Continuous Electronic Monitoring [hereinafter "CEM"] services that is proposed in the Resolution; and, after the public hearing, adopt the Resolution.

SUMMARY:

The Probation Department requests that the Board of Supervisors (1) make CEQA findings; (2) find the fees associated with the proposed Resolution are excepted from the provisions of Proposition 26 pursuant to Section 1 of Article XIII C, subdivision (e)(2) of the California Constitution; (3) hold a public hearing on the proposed Resolution; (4) after the public hearing, adopt the proposed Resolution.

BACKGROUND INFORMATION:

Statutory Authority for Supervised Electronic Confinement Program and Fees

Penal Code section 1203.016 provides for the establishment of a home detention program for "minimum security inmates and low-risk offenders" as an alternative to county jail detention. Pursuant to this statutory authority, your Honorable Board, by Resolution No. 89-425, designated the Chief Probation Officer as the County correctional administrator of the Supervised Electronic Confinement ("SEC") program.

Further, Penal Code section 1208.2 authorizes your Board to prescribe program administrative and application fees for participation in electronic home detention programs. Such program fees may not exceed the pro rata cost of the electronic monitoring device and the program administration cost, to be paid by home detention participants according to their ability to pay.

SEC Program:

In effect since 1986, the SEC program provides services for monitoring low-risk, non-violent adult offenders outside of jail. The contracted SEC vendor provides full case management, including program orientation, enrollment, equipment hook-up and installation, and monitoring services. Over the years, the SEC contractor has recovered its costs by charging participants on a sliding fee scale, with daily fees based on their gross monthly income. The SEC contractor reimburses the Probation Department for the costs of administering the program, to offset officer salaries, benefits, and other operational costs.

On average, 251-300 participants are monitored daily under the SEC program. Presently, the SEC program uses a passive global positioning satellite (GPS) system tracking device that emits a signal at least every five minutes, indicating the participant's position points. Tampered equipment and other violations are known at the actual time of occurrence.

Proposed SEC Fees

The Probation Department anticipates continuing public and officer safety benefits from administering the entire SEC program by department staff. With the operating experience and technical knowledge the department has gained over the years from supervising adult low-risk and high-control offenders using contracted electronic monitoring, the department has developed the capability to fully operate the SEC program with its own resources. By taking over the entire operations of the SEC program the department will be able to have greater control over all aspects of the program as well as providing additional revenue to offset positions to assist the department in these tight fiscal times.

As a start, the Probation Department launched an in-house Monitoring Center in March 2010. The Monitoring Center has allowed the department to increase the number of GPS-monitored probationers in a caseload, and to implement graduated sanctions with various populations.

Next, the department conducted an economic and financial study to determine the program administrative and application fees that will need to be recovered from totally providing and operating its own SEC program (Continuous Electronic Monitoring or "CEM"). The results of the study indicated that the cost recovery fees should be set at: (a) $31.55 per day for the administrative fee; and (b) $65.00 for the application fee.

The proposed fees are based upon the model of costs currently incurred for the Department to operate the existing GPS program. The administrative fee is based upon staff, services and supplies, and indirect costs for expansion of the Department’s operation to include all SEC activity. It is anticipated that additional FTEs would be assigned to this expanded function. Because terms and conditions of what is ordered by the court may differ, so might requirements for Drug and Alcohol testing vary among those assigned to CEM. The administrative fee is the maximum fee that could be charged per participant, and includes full drug and alcohol testing protocols. Those costs are presented separately in the fee study. The application fee is based upon 7.10 FTE personnel, services and supplies, and indirect costs required to process applications for current levels of participants.

CEQA Compliance: The proposed application fee and administrative fee for Continuous Electronic Monitoring services for the Supervised Electronic Confinement Program are statutorily exempt from the provisions of CEQA pursuant to Public Resources Code Section 21080(b)(8) and Title 14 of the California Code of Regulations Section 15273, since the fees are for the purpose of meeting operating expenses, including employee wage and fringe benefits, and for the purpose of purchasing and leasing supplies, equipment and materials.

PROPOSITION 26 COMPLIANCE: Section 1 of Article XIII C, subdivision (e)(2) of the California Constitution excepts from the definition of the term tax any “charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.” The CEM program fees are not a tax because the cost study submitted demonstrates that the charges imposed do not exceed the reasonable costs of to the County of Orange for the service provided.

Accordingly, the Probation Department requests adoption of the proposed Resolution after holding a public hearing.

FINANCIAL IMPACT:

N/A

STAFFING IMPACT:

N/A

REVIEWING AGENCIES:

OC Public Works/Environmental Planning

EXHIBIT(S):

Proposed Resolution of the Board of Supervisors of Orange County, California, December 6, 2011

ATTACHMENT(S):

1. CEM Fee Checklist for ASR Submission
2. FY11-12 Probation Continuous Electronic Monitoring (CEM) Rates Study #057-2011CEM