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Corrections Corporation of America Message Board

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  • tmacker tmacker Jun 17, 1999 4:55 PM Flag

    Deleted Message

    If you are still out there, DMILL, your
    thoughtful comments from about 10 days ago from stuck in my
    mind...anything you might care to contribute on the spec-built
    sites in CA vis a vis the political opposition (State
    AG, particularly)?

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    • Tmakder, I am still reading all the posts. In my
      opinion, PZN's spec prisons are in trouble here in Calif.
      You have to really understand the the power and
      paranoia of the California Correctional Officers union.
      They contributed bigs bucks to the govenor's and the
      Attorney General's political campiagn. Both won and are in
      debt to the union. The union is the most powerful
      public employees union in the state. They are spreading
      misinformation out to cities all over the state.

      The
      state budget was just passed with an appropreation of
      325 millon bucks to build a new prison in Delano. A
      lot of pressure to get that passed by the
      union.

      The union is adamatly opposed to any private facility
      over 500 beds. The spec prisons in Calif. are 1100
      beds in Mendota and 2100 beds in California. They are
      single and double cell living units. Very expensive to
      build and operate. The California Dept of Corrections
      are only issusing RFPs (Request for Proposals) to the
      privatge sector for 500 bed facilities. Consequently, the
      spec prisons do not meet the stringet RFP
      stipulations. Thus, IMO, the spec prisons are out of the
      running for any CDC contracts.

      From what I heard
      CCA came into California saying they might buy San
      Quintin from the State and run it. This really paniced
      the union and mobilized them into action against all
      private companies. The size of the two spec prisons has
      them worried that if CDC contracts with them it might
      start the ball rolling to privatize all their prisons.


      (Continued)

    • (continued #2)
      Kern County Sheriff, Carl
      Sparks, is presently in discussions with CCA (PZN)
      regarding the leasing of the California City facilty with
      the prospect of trying to get contracts with other
      county sheriffs to fill the facilty with county inmates
      doing time or waiting for trial. Carl Sparks motivation
      for doing this is the profit factor. He needs more
      money to run his department. He feels that the profit
      he could make on the above arrangement would solve
      is money problems. He mentioned, in a newspaper
      article a few days ago, that he understood the cost of
      building the California City facility was 110 million. I
      have heard the cost could be as high as 120 million.
      Maybe someone ought to contant the Information Officer
      at PZN and see if they can get the correct figures.
      Knowing how the system works here in Calif. leads me to
      believe that it will take many months for any type of
      contract for the above arrangement to come to fruition, if
      it does at all.

      Mendota in is Frenso County.
      A few months ago I attended a meeting which the
      county sherrif and the county attorney conviened. They
      were upset at CCA because they felt that CCA was
      trying to jam the facilty down their throats. They felt
      that CCA attitude was "we are here, get use to it".
      Them folks didn't like that. Consequently, they are
      the ones who brought up the issue to the State
      Attorney General.

      CCA and WHC were the two major
      players in bidding for the San Diego facility. I know
      that WHC bids pretty close to the bone. CCA got the
      contract. It might be a good project for some of you number
      crouncers out there to see if you can find out how much, if
      any profit CCA is making in that venture. I had heard
      that CCA was determined to get into California at any
      cost. I hope that determination didn't cause them to
      "cut into the bone" on that paticular bid.

      As I
      communicated in my earlier post, I think that there is money
      to be made by buying this stock but my concern for
      not doing so at present is because of the stones
      hanging around CCA (PZN) neck here in Calif. I am waiting
      to purchase some stock after I see what is the
      outcome of the spec facilites here in
      Calif.

      Tmaker, this is what I know at present. For all you spell
      checkers out there, please excuse any mistakes. It is late
      and I am tired.

      For all you posters, realize
      this, Cities, counties, and states are out of money to
      build prisons and the prison population continues to
      grow. They are going to have to come to the private
      sector. Here in Calif. WHC has a good reputation with
      CDC, however they are a little antsy about CCA at
      present. I think it would be a good idea if PZN did a lot
      of PR work in Calif.

      Hope this
      helps.

      Dmill

    • Just read my two posts. Can't believe the
      misspelled words. Oh well, the spell checkers will have a
      field day <g>.

      One final point I failed to
      make regarding the RFPs that Calif. puts out to the
      private sector. They are only for 500 bed DORMITORY style
      living units. The PZN spec facilities are single and
      double cell living units; thus they would be out of the
      running. Also California does not want out of state
      inmates unless they are feds and does not want the
      private prison staff to have any access to guns. That is
      why the RFP are for low custody level inmates. The
      type of inmates you will generally find in fire camps
      which are not under gun towers.

      Dmill

      • 1 Reply to dmill
      • Dmill,

        Thank you for your input. Your
        clear and detailed description of the scenario in these
        CA instances brings light where there was mostly
        just noise, smoke, and mirrors. While it is not
        particularly encouraging to see another example of PZN
        management mishandling some of the 'human factors' by being
        a bit heavy-handed in their dealings, it is no
        surprise.

        Tailoring the product/service and the approach to regional
        requirements should not be too much of a stretch. I agree with
        your view about the semi-inevitability of private
        facilities. Arrogance in presenting PZN capabilities
        certainly seems to have alienated the folks we should be
        cozying up to.

        A 'service mentality' dictates a
        better focus on meeting customers' needs. This is a
        service business, in my mind, and the bricks and mortar
        are not the same kind of product as Mrs. FIeld's
        cookies, just to put on a shelf and wait for someone to
        come and buy. Sometimes it seems they are selling the
        service like insulin to a diabetic: "You need it, we have
        it, come and get it!"

        The good news is, there
        is plenty of room for improvement, and Mike Q. has a
        grand opportunity facing him. If CCA was doing the very
        best it could, and maximizing every transaction to its
        advantage, there would be little anyone could do to improve
        operating results. This is certainly not the
        case.

        Once again, thanks for your valuable insights. Lets
        hope this can be turned into a vehicle you can safely
        and confidently 'ride' to reap the benefits you seek,
        and spoil those grand kids just one inch this side of
        rotten!

 
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