County staff and the Department of Corrections and Rehabilitation (DOCR) reported on Aug. 5 that they are close to finalizing an eight‑year contract for DOCR to lease up to 60 beds at the Grand Forks County Correctional Center, but important terms remained under negotiation.

County officials said the draft agreement would begin around Oct. 1, would set a base rate of $100 per bed per day and would require both parties to finalize staffing, equipment and facility modifications before DOCR could occupy beds. The draft before the board reduced the originally discussed 72‑bed figure to 60 beds; the $100 daily rate was retained and remains a negotiation point for future escalation.

Unresolved contract elements flagged at the meeting included:
- Escalation clause: County legal counsel urged an automatic escalation mechanism (for example, an annual CPI or fixed percentage) so the per‑bed rate keeps pace with comparable contracts; DOCR said rate adjustments must fit its biennial appropriation cycle and requested negotiation at the time higher costs arise. County officials described proposals ranging from fixed annual dollar increases to CPI indexing.
- Damage and reimbursement: The county seeks clarity on who bears the cost if fixtures or built‑in items in the minimum‑security pod are damaged. County staff noted the pod was built with fixtures not typical of higher‑security cells (porcelain sinks/tank‑in‑wall toilets, lightweight shower hardware) and warned of repeated replacement costs if higher‑risk detainees are placed there. County counsel proposed splitting liability—structural/fixture damage borne by DOCR until recovered from inmate accounts; consumable losses borne by county—language DOCR had not accepted in current drafts.
- Medical and transportation costs: The county sought limits on deputy/corrections‑officer time spent guarding DOCR inmates at off‑site medical facilities and proposed billing for extended transports or overtime when staff are held more than 12 hours; DOCR objected to the county’s proposed billing triggers. Sheriff’s Office representatives warned that long hospitalizations tied to transported inmates could require calling in extra staff and generate overtime costs.
- Release plans: The draft permits DOCR to return an inmate to a release plan based in the Grand Forks area when appropriate. County officials pressed for tighter language to reduce the risk that DOCR‑served inmates would be released into the county if their home residence is elsewhere; DOCR said release plans are created to facilitate safe community reintegration and are reviewed by DOCR case managers.

County staff said DOCR will perform any necessary interior modifications to create office space inside the selected pod and that DOCR will initially outfit inmates with clothing for intake, after which clothing and consumables become a county cost under the current draft. The draft includes termination provisions allowing either party to terminate the lease for funding or operational reasons.

Why this matters: If finalized, the agreement will shift prisoner housing and services between state and county systems, bring state corrections staff onto county property, and create recurring revenue at the $100‑per‑bed level while exposing both parties to operational and cost risks tied to transport, medical care and facility damage.

Next steps: County and DOCR negotiators said they will continue to refine escalation language, property‑damage and transportation clauses. DOCR representatives on Zoom indicated they are willing to continue discussions; county staff said the agreement is “90% plus” complete but asked the board for direction on unresolved items.