REGULAR MEETING OF THE BOARD OF COUNTY COMMISSIONERS
Tuesday April 1, 2025
ALL PRESENT: Commissioner Morse, Chair; Commissioner’s Waters and Ostlund; Board Clerk Erika Guy; Clerk and Recorder Jeff Martin.
PLEDGE: MOMENT OF SILENCE, Held.
9:00 a.m. RECOGNITION – Jason Valdez – Detention Facility – Retirement 26 Years of Service.
Commissioner Ostlund made a MOTION to switch Items C and D under the Commissioners on the Regular Agenda, Commissioner Waters seconded. Passed Unanimous.
9:00 a.m. PUBLIC HEARING – Resolution 25-51 to Grant Tax Abatement to Par Montana, LLC on Class Eight Property. Ms. Dianne Lehm, Big Sky Economic Development stated that the application was received from Par Montana on February 28, 2025. This tax abatement is for Class Eight Property and is a five-year tax abatement. Commissioner Morse opened the Public Hearing. Two people spoke in favor of the proposed tax abatement. Hearing no other comments Commissioner Morse closed the Public Hearing. Commissioner Ostlund made a MOTION to approve the Par Montana, LLC Tax about at 80%, Commissioner Waters seconded. Passed Unanimous.
9:00 a.m. ZONE CHANGE PUBLIC HEARING – This is an amendment to the County Zoning Regulations. The amendments cover 12 sections of the 2020 Yellowstone County Zoning code. The Planning staff drafted the amendments to the Yellowstone County Zoning Code to correct errors, cross-references and generally make housekeeping amendments to the code. The code was adopted in late 2020 and needs cleanup. Ms. Nicole Cromwell, Zoning Coordinator stated this is an amendment to the County Zoning Regulations. The amendments cover 12 sections of the 2020 Yellowstone County Zoning Code. The Planning staff drafted the amendments to the Yellowstone County Zoning Code to correct errors, cross-references and generally make housekeeping amendments to the conde. In addition, the County Board of Adjustment and the County Zoning commission have suggested several amendments over the last four (4) years to improve the code and align it with county growth policy goals. Some of the amendments mirror the updates to the city’s zoning code adopted over the last four (4) years, especially the urban zoning districts available through the Planned Neighborhood Development zoning process. Commissioner Morse opened the Public Hearing. Hearing no comments Commissioner Morse closed the Public Hearing. Commissioner Waters made a MOTION to approve Resolution of Intent 25-49, County Zone Change 727- Text Amendments to County Zoning Regulations, Commissioner Ostlund seconded. Passed Unanimous.
PUBLIC COMMENTS ON REGULAR, CONSENT AND FILED AGENDA ITEMS – Hearing no comments Commissioner Morse continued the Board Meeting.
COMMISSIONERS – A.) Proclamation – Child Abuse Prevention Month. Commissioner Waters read the Proclamation into the record. Commissioner Waters made a MOTION to approve the Proclamation, Commissioner Ostlund seconded. Passed Unanimous. B.) Downtown Billings BID Renewal. Ms. Katy Schreiner gave a presentation. Ms. Schreiner stated that the BID money covers the Clean Program, Safe Program, Public Art Program and has Community Engagement and Events. Ms. Schreiner noted that the Downtown Billings BID is managed by a Board of Directors that this appointed by the City Council. Commissioner Ostlund made a MOTION to approve the Downtown Billings BID Renewal, Commissioner Waters seconded. Passed Unanimous. D.) Agreement with US Marshals Service for Inmate Per Diem Rate. Mr. Scott Twito, Yellowstone County Attorney stated that the concern of the contact person has been addressed on the US Marshals contract. Mr. Twito stated that the Finance Director is the contact person. Mr. Twito stated he doesn’t have any concerns with this contract. Looking at page 1, box 12 which talks about period of performance, and it says perpetual. There have been concerns about that. It is not uncommon to consider the performance perpetual. You can temper that with both sections 6 and 24 of the agreement within the agreement, right around page 15. This is a contract to lock in a fixed rate for 36 months and it does make provision which is required under law. It says we can’t negotiate that rate but it says within the 36 months we can based on stringent emergent requirements. Section 6 of this contract talks about termination, and it allows either party to terminate at any time based on certain circumstances. Additionally, one of concerns that the Sheriff has, whether anyone agrees with that or not, it is his department to run. If you look at Box 14, if none of those boxes are checked the Sheriff’s Office is not committing to any of those things. So that means we don’t transport for medical or to the courthouse. This contract offers these services but does not bind us to them. This agreement seems standard. Obviously, there is a big change in the amount of reimbursement. It is not the amount that we had in our resolution, but that is for you to determine and not for me. Commissioner Ostlund asked if there were any other language issues. Mr. Twito replied, no. Commissioner Morse noted average daily rate off the US Marshal website for FY24 was $116.00 per day. Now the US Marshals want us to take $115.00 per day for FY25. Commissioner Waters asked if this was average daily rate based on Montana cost or nationwide. Commissioner Ostlund stated he believed it was based off cell size. Sheriff Linder stated typically it is based on what the State does. They have a formula they use, and we provide the data in their application. Commissioner Waters stated that it looks like this daily rate is based off a nationwide number. Commissioner Morse asked Sheriff Linder when we talk about the formula the US Marshals Service uses to determine this $115.00 rate, have you seen the formula? Sheriff Linder stated that they don’t get a copy of the formula they use, we only get a copy of the application. Commissioner Morse stated that we don’t know if the US Marshals Service did the math correctly. Sheriff Linder stated he could not answer that. Commissioner Morse stated that our Finance Department came up with a figure of $117.00 per day actual cost, is that correct? Sheriff Linder stated, yes. Commissioner Morse stated we determined that cost by using a formula that you provided to us that the state provided to you, I think 17 years ago. Sheriff Linder stated that was the State and we are talking about the US Marshals Service. Commissioner Morse stated that he understood that entirely. As part of our jail masterplan review the group that did that verified that the formula that we used to determine the $117.00 rat was a formula that is used nationwide. Sheriff Linder stated that he has not seen the jail masterplan. Commissioner Morse read these comments into the record.
Comments for Tuesday, April 1, 2025: Contract with US Marshal’s Service for prisoner reimbursement
I have a concern over the condition of the YCSO budget. I do not want to accept the $115 per day amount that is being proposed in current negotiations.
The sheriff’s current budget has been requiring general fund transfers to cover shortfalls. I have shared these concerns with my fellow commissioners, the sheriff, and other department heads and elected officials. We need to consider all options. One area of note is the reimbursement rate for federal and state prisoners.
Currently the county receives $85 per day per federal inmate. That amount does not cover daily county costs for that inmate.
Several months ago, shortly after the sheriff and finance director entered negotiations with United States Marshals Service (USMS), we issued resolutions so YC can be reimbursed our actual costs for an inmate by both the State and the Federal government.
We have received a contract from the USMS for $115 per day per inmate. That amount is an improvement over $85 but is still short of our cost of $117.
I do not agree with any contract not paying our actual costs. I think we need to look at other ways to help the YCSO budget as it has been taking a considerable portion of the general fund to make up for its budgetary shortfalls.
Here are some facts that support my concern:
1. Jen Jones, Yellowstone County (YC) Finance Director, determined YC’s actual cost at $117 per inmate day.
2. According to the USMS website, “$116 was the average daily prisoner detention cost in 2024.”
3. This proposed USMS contract is a fixed 3 year, no escalator document at $115 per inmate/day. In the ‘Period of Performance’ block (#12)’ Perpetual is typed in. A contract with no end date places YC in financial peril. The termination clause, section 6, places an onerous burden on YC to execute.
4. Over the life of this contract, with no escalator, it is possible this offer would put Yellowstone County at a continued deficit.
5. The current USMS contract is $85 per inmate day. It was signed in 2022 with no increase from the 2016 contract at $85 per inmate day.
6. Under the current USMS contract, YC taxpayers have been subsidizing federal inmates at $32 a day. YC taxpayers have also been subsidizing state inmates.
Here is a possible solution moving forward:
1. The USMS reimburses Missoula (MSO) at $138 per inmate day. MSO provides three additional services: medical appointments; hospital admissions and transport.
2. USMS personnel indicate the higher MSO inmate rate is tied to those 3 services.
3. YC could receive a higher rate if they provided those 3 additional services. FY24 population figures provided by local USMS personnel for federal inmates at YCDF: Daily inmate pop - 44; medical appt - 7/month; hospital - 3/yr; transports – 62/yr.
a. At $115 day X 44 inmates/day X 365 days = $1,846,900.
b. At $138 day X 44 inmates/day X 365 days = $2,216,280
c. Difference between the $115 and $138 rate is $369,380 annualized.
4. YCAO asked MSO Detention Facility the mechanics of the 3 additional services: medical appointments; hospital admissions and transport. MSO stated they negotiated a Sheriff’s Deputy rate of $52/hour (each Deputy) plus federal mileage reimbursement. All federal prisoner movement requires two (2) Deputies.
5. Supplying these three additional services could supply a substantial revenue stream to YCSO.
6. YC has an estimated census population of 171,583. MSO County has an estimated population of 122,946. Both counties are part of the US District Court of MT. Similarly situated facts can produce similar situated resolutions.
7. The USMS has prisoners requiring beds, YC can supply those beds. Taxpayers should not subsidize those beds.
8. Additionally, if YC accepts the $115 with USMS, it may compromise our position with the resolution for the State of MT.
9. For FY24, in addition to their budgeted allocation, the Yellowstone County Sheriff’s Office (YCSO) required a transfer of $2.5 million from the general fund and will likely need $2.5-3 million in FY25. Much of this has been for new deputies.
10. Alternatively, the BOCC could establish a Yellowstone County Department of Corrections (YCDOC) and run YCDF by a Detention Center Administrator. (MCA 7.32.2201).
YC needs to consider and make sure all options are on the table to protect our taxpayers. I am concerned the amount offered by the USMS is insufficient to contend with issues facing YC. Commissioner Waters asked in calculating the rate with the formula that was being used was based on State law, is that correct. Ms. Jen Jones, Finance Director stated that is correct. Commissioner Waters also asked if the Federal government is allowed to use the same formula we used, or do they use their own formula? Mr. Scott Twito, County Attorney stated that they can use their own formula. Commissioner Waters asked Sheriff Linder if the services that are outlined in the contract that we currently don’t provide, could they be provided later. Sheriff Linder stated yes. Sheriff Linder noted that currently he does not have the staffing to provide those services. Commissioner Ostlund stated that building a separate department to do transports is very difficult, because we cannot fully staff the Sheriff’s Office now and that does not appeal to him. Commissioner Ostlund stated that the contract has been negotiated and if we don’t take the contract, what is the Federal government going to do. Sheriff Linder answered that it is not what they say but what the Commissioners say, will we house federal inmates in our facility. Commissioner Ostlund gave some history regarding the federal prisoners and stated that we are not kicking the federal prisoners out because the money we receive from the federal government is helping to pay off the money we owe for the recent expansion of the jail. Commissioner Ostlund stated we are going to keep the federal prisoners at $85.00 dollars a day or $115.00 dollars a day. Ms. Jones, Finance Director stated that at $115.00 dollars per day roughly we would make $500,000 per year. Commissioner Ostlund stated that currently we have a shortfall in the Sheriff’s budget that is funded through the general fund so to keep the reimbursement at $85.00 per day and leave a half a million dollars or more on the table and not take it doesn’t make any sense to me. Commissioner Waters asked if we don’t accept the $115.00 rate that the federal government has proposed can we sue them for the $117.00 rate that we proposed. Mr. Twito, County Attorney said no. Commissioners Waters stated that he would like to sign the contract with the federal government for $115.00 a day reimbursement for federal prisoners. Commissioner Waters read the following comments into the record. Prior, we did pass a resolution for $117.00 rate for both the federal government and the State government, the federal government is paying $85, which is different from the state, the state is paying $82.00.
The Sheriff was communicating with the Marshall service to try and get an increased rate but prior to the resolution that brought us here to resolution 25-12 stating the $117.00 rate there was really no movement by the federal government to offer something closed to the $117.00 rate. Our calculation of costs was based on rated capacity and some overhead costs on a formula we based on state guidance and the state formula, but it does apply to our actual cost which is why we passed the resolution. After passage of our resolution for the US Marshall for Montana, Craig Anderson sent us a letter requesting us to rescind the resolution to allow for negotiations using current financial data. He stated that current negotiations were more difficult because the last agreement between the Marshall Service and Yellowstone County was dated November 2016 which established the $85.00 rate. He stated we were eligible to renegotiate that rate in November 2021 but failed to do so. This is before my time, I don’t know why that didn’t happen, but it didn’t. I believe we would have been in a better position today had that rate gotten the proper adjustment back in 2021, but here we are.
According to the Sheriff, the Marshall service stated back in January that our $117.00 rate is not supported by the data the federal government uses to calculate daily rates. We did separate resolutions for the state and federal government, they are different to deal with and the feds have been at the table, and the state of Montana has not been at the table to negotiate.
On March 20th the Marshall service came back with an offer of $115.00 per day. This is $30.00 a day more than we are presently getting. It is only $2.00 a day short of what we were asking based on our own formula.
For me, I had to ask the question of what it would cost us to refuse this offer. Since the new agreement would go into effect May 1st, refusing the offer would deny the county, as our finance director and Commissioner Ostlund said, over $500,000 a year. The $2.00 difference leaves us about $70,000 a year short of the asking $117.00 rate for the 3-year duration of the contract. For me, the over $500,000 boost to our budget is very significant to risk.
The options for us getting the full $117.00 a day as I see them are.
Therefore, for me, Commissioner Morse had his statement. He brought in a lot of other options that you know it’s the Sheriff’s, he’s the commander in the field and he doesn’t want to consider the transport and the medical things at this point so I believe it is in the best interest of Yellowstone County and its taxpayers to rescind resolution 25-12 and accept the agreement from the federal government at $115.00 a day with the understanding we will not miss the next opportunity to get a better rate when this agreement comes up. We’re not going to wait 9 or 10 years. We are going to keep on it. We have the opportunity now with some more access and our financial officer being a part of that future negotiation.
Commissioner Ostlund thanked Commissioner Morse on his research and work on this whole inmate process. Commissioner Ostlund stated that the government Board of Efficiency is rolling out contracts out of the Federal government quickly and I think it is important that we have a contract in place that guarantees our rate at $115.00 per day. Commissioner Ostlund made a MOTION to approve the US Marshals Service Agreement for Inmate Per Diem at $115.00 per day, Commissioner Waters seconded. Commissioner Morse asked Finance for the present value of the inmate per diem rate and the Finance Director stated that for FY25 it would be approximately $120.00. Commissioner Waters asked the Finance Director if those rates are debatable, and the Federal Government could say we take issue in the way you calculate daily per diem rate. Ms. Jones, Finance Director answered absolutely. Ms. Jones stated that she feels like that is what the Federal Government has done currently because she has provided them with $117.00 dollar rate and the $120.00 dollar rate, and the Federal Government came back with the rate of $115.00 dollars per day. Ms. Jones states she doesn’t know how the government is calculating the daily rate. Commissioner Ostlund stated that he does not disagree with Commissioner Morse regarding the transport and medical piece in the contract, however the challenge is hiring enough staff. Commissioner Waters stated that he commends Commissioner Morse on this effort, however he disagrees with the transport and medical piece. Commissioner Morse stated that he thinks the contract is an ok contract, it increases our rate from $85.00 to $115.00 but he thinks they can do better. We are similarly situated as Missoula. We have a federal court here in Yellowstone County. This is all about beds and I don’t think that the Federal Government is going to truck their prisoners up and down the road for what our actual costs are to house inmates. Commissioner Morse made an alternate Motion to refer this back to staff and the Yellowstone County Attorney’s Office to see if they can negotiate a better deal. I am not suggesting, nor have I suggested that we put the prisoners out, I just said I think we can do a better deal. Motion dies for lack of a second. Passed 2-1, Commissioner Morse voted against the agreement. C.) Resolution 25-50 Rescinding Resolution 25-12 which Allowed Discretion for Admittance of Federal Inmates to Detention Facility. Commissioner Waters made a MOTION to approve Resolution 25-50, Commissioner Ostlund seconded. Passed 2-1, Commissioner Morse voted against Resolution 25-50.
CLAIMS – 25-123, 25-124 & 25-125. Commissioner Ostlund made a MOTION to approve the Claims, Commissioner Waters seconded. Passed Unanimous.
CONSENT AGENDA – 1. COMMISSIONERS – A.) Lockwood Pedestrian District Letter of Support for Transportation Alternatives Funding. B.) Multi-Tenant Office Lease Agreement between WFC I LLC, and Yellowstone County. 2. FINANCE – A.) MDT Grant – Agreement between MDT and Yellowstone County DUI Task Force – State Highway Traffic Safety, 2025 Alcohol and Drug Symposium. B.) Bond for Lost Warrant. C.) Yellowstone Valley Animal Shelter FY25 PILT Request. D.) Notice of Award – Metra Forklift Purchase to Tractor and Equipment Co. 3. METRAPARK – Bond for Lost Warrant. 4. PUBLIC WORKS – A.) Yearly Fuel Tax Certification of Roadway Mileage – SFY 2026. B.) Recommendation of Award – Construction Manager at Risk (CMAR) Services for Duck Creek Road Bridge Scour Mitigation to Sletten Construction Company. 5. SUPERINTENDENT OF SCHOOLS – A.) Resolution 25-52, a Resolution Approving the Opening of Laurel Elementary School as Presented by the Yellowstone County Superintendent of Schools, Pursuant to Section 20-6-502(3), MCA. B.) Resolution 25-53, a Resolution Approving the Opening of Laurel Intermediate School as Presented by the Yellowstone County Superintendent of Schools, Pursuant to Section 20-6-502(3), MCA. 6. HUMAN RESOURCES – PERSONNEL ACTION REPORTS – Detention Facility – 2 Appointments, 2 Salary & Other, 1 Termination; IT – 1 Termination; Sheriff’s Office – 1 Termination.
FILE ITEMS – 1. AUDITOR – Payroll Audit March 1 – March 15, 2025. 2. CLERK AND RECORDER – Board Minutes – MetraPark Advisory Board Minutes – February 25, 2025, Lockwood Irrigation District – February 19, 2025. 3. HUMAN RESOURCES – A.) March 1st through 15th Payroll Audit. B.) Prism Health Group Letter. Commissioner Waters made a MOTION to approve the Consent Agenda and place the File Items to file, Commissioner Ostlund seconded. Passed Unanimous.
PUBLIC COMMENTS ON COUNTY BUSINESS – Hearing no comments Commissioner Morse adjourned the meeting at 10:08 a.m.
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