American Friends Service Committee's
Michigan Criminal Justice Program 
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Phone Update
June 24, 2011
1414 Hill Street, Ann Arbor, MI 48104 P/734-761-8283 F/734-761-6022 www.prisoneradvocacy.org
Important Updates on the New Telephone Contract from MI-CURE and CAPPS
Analysis of New Phone System from Citizens Alliance on Prisons and Public Spending
Analysis of New Phone System from MI-CURE
A Note from AFSC
Dad says spike in telephone fee at MI prisons will make communicating with son more difficult
Analysis of Prisoner Telephone Rates
from Citizens Alliance on Prisons and Public Spending

Increased prisoner telephone rates: a summary of the issues

PDF of summary--CAPPS Analysis 

 

 prepared by the Citizens Alliance on Prisons & Public Spending

June 23, 2011

 

Being able to maintain contact during incarceration is critical for both prisoners and their loved ones.  It helps keep families unified, positively affects prisoners' behavior and greatly increases the chances for success when people return to the community.  In-person visits are limited by prison rules, cost and distance.  Letter writing is difficult for many prisoners and family members, especially young children.  For many people, telephone calls are the primary means of communication.  

 

Until August 2008, Michigan prisoners and their families paid extremely high rates for telephone calls because the price included a substantial surcharge that yielded millions of dollars for the MDOC budget.  After much effort by prisoner advocacy groups, corrections appropriations subcommittee chairs Sen. Alan Cropsey and Rep. Alma Wheeler Smith agreed to prohibit the surcharge.  Boilerplate in corrections appropriations bills now states that fee schedules for prisoner telephone calls must be the same as fee schedules for calls placed from outside of correctional facilities except for surcharges "necessary to meet special equipment costs."  Rates plummeted so that, for example, a 15-minute in-state call that previously cost $7.52 became $1.50 or $.10/minute when made by a prisoner using a debit card.  Phone usage by prisoners attempting to maintain contact with their loved ones increased.

 

As the result of a five-year contract awarded to Public Communications Services, Inc. or PCS, beginning on Feb. 9, 2011, phone rates are nearly doubling.  The $0.10/minute in-state debit call now costs $0.18/minute, or $2.70 for 15 minutes.  There are similar increases for collect and interstate calls.  These increases are occurring despite the fact that all the bidders who passed the initial screening offered base rates that were substantially lower than the rates in the expiring contract.  For an intrastate debit call, these bids ranged from a high of $0.085/minute to a low of $0.030/minute.  

 

It is estimated that the minimum amount this increase will generate is $11.2 million.  That would assume a nearly 40% drop in call volume. If call volume stayed constant, the increase would yield $18.4 million.  The proceeds are to be split between the MDOC and PCS, with the department's share increasing as the volume of calls goes up.  At a minimum, 70% ($7.8 million) would go into a special equipment fund controlled by the MDOC and 30% would go to PCS.  At current call volume, the MDOC would receive 72.5%. or $13.3 million.

 

The rationale being offered is that the special equipment fund is to be used for cell phone detection equipment.  There are numerous problems with this rationale, most of which are evident from the bid documents.

 

  1. While preventing prisoners from possessing cell phones is an important goal, it is unclear that cell phones constitute a major problem in Michigan prisons.  Some have been found, but none has resulted in charges for criminal conduct.  Cell phones, like drugs, alcohol and weapons, are contraband that can be discovered in searches of prisoners and their living areas.  However, the additional benefit to be gained from investing millions of dollars in high tech detection equipment is unclear, especially since that technology is still not mature.  Purchasing less sophisticated but far less expensive equipment that could be piloted at selected facilities would help determine how widespread the problem is and whether a more complex system is actually necessary. 

 

  1. Even if purchasing cell phone detection equipment is warranted, it cannot possibly cost the amount that the state would derive from the special equipment fund.  Five of six bidders addressed cell phone detection as an optional service.  None proposed prices anything near $8 million a year for five years.  In fact, PCS proposed the option of cell phone detection/control for an additional $0.01/minute. 

 

3. Neither the budget bill boilerplate language nor any reasonable logic supports using the Special Equipment Fund to enhance PCS's profits

by 4 to 5 ½ cents a minute.    

 

It is worth noting that in its original proposal, PCS gave a base rate of $0.059/minute for collect calls and $0.049/minute for debit calls.It also proposed a rate of $0.005/minute to generate each $500,000  for a special equipment fund.  In a subsequent pricing clarification, it  reduced the base rate to $0.0393/minute for collect calls and $0.0343 for debit calls but raised the special equipment fund rate to $0.0075 for each $500,000.  The result of adding an average of $0.1487/minute to each call is to make PCS's share of the total per minute rate between $0.0789 and $0.08391.  (See contract Change Notice No. 1, Special Equipment Fund (per Month) Revised V2.)

 

  1. It is difficult to distinguish the special equipment fund from the statutorily prohibitedsurcharge in light of the following passage in the Executive Summary to PCS's Telephone Pricing Clarification:

 

"Understanding that budgets are shrinking for all State agencies, as part of our Best and Final Offer, PCS is also willing to work with the MDOC to create a Special Equipment Fund to help bridge any potential budget shortfalls.  The amount of this fund can be set at the discretion of the MDOC."

 

CAPPS urges the Legislature to examine these issues.  The inevitable outcome of increased phone rates will be less contact between prisoners and their loved ones.  The Legislature should determine whether giving tens of millions of dollars to the MDOC for cell phone detection and millions more to PCS, apparently for pure profit, is worth this result.  

 

This analysis is based on research conducted by CAPPS and MI-CURE.


Analysis of New Phone System  

by Kay Perry of

Michigan CURE 

Kay prefaced this analysis with the following short statement:  

"We have received inquiries from many individuals who are extremely upset about the MDOC's new phone system.  Working with CAPPS, we have just completed an analysis of the contract that will hopefully provide answers to some of the questions we have been asked.

 

There are essentially two issues.  One set of problems deals with start-up problems related to lack of prior notice, account transfers, setting up new accounts, etc.  While we know those issues are annoying, this analysis does NOT deal with those issues.  Such problems are somewhat common during a changeover and will hopefully, in time, go away.

 

The more serious problems relate to the rate increases which we believe are unjustified.  The attached analysis deals with those issues.

 

You are receiving this either because you have contacted us or because we believe you may want to forward it to others in your network.  There is a need for advocacy, and we hope that the attached will help you to do so."


 

ANALYSIS OF NEW PHONE SYSTEM FOR

MICHIGAN DEPARTMENT OF CORRECTIONS

 

PDF of MI-CURE Analysis 

 

The Michigan Department of Corrections has entered into a new telephone contract with PCS.  Rates are nearly doubling as is evident from the chart below.     

 

EMBARQ Per Minute Rates

PCS Per Minute Rates

Increase

Intrastate Collect

$0.12

$0.20

67%

Interstate Collect

$0.15

$0.23

64%

Intrastate Debit

$0.10

$0.18

80%

Interstate Debit

$0.12

$0.21

75%

 

 

The per-minute base rates on the new contract are actually quite low.  Most of the increase is attributable to charges for the creation of a Special Equipment Fund.  The chart below shows the breakdown of the per-minute rates under the new contract and the portion of the rate that is attributable to the new fund.

 

 

Base Rate Per Minute

Key Word Search Per Minute

Special Equipment Fund Per Minute

Total Per Minute Rate

Special Equipment Portion of Base Rate

Intrastate Collect

$0.0393

$0.0075

$0.1532

$0.20

76.6%

Interstate Collect

$0.0393

$0.0075

$0.1832

$0.23

79.7%

Intrastate Debit

$0.0343

$0.0075

$0.1382

$0.18

76.8%

Interstate Debit

$0.0343

$0.0075

$0.1682

$0.21

80.0%

 

 

Collecting funds for special equipment was authorized by the legislature in the following language that is part of the MDOC budget bill:

 

"Any contract for prisoner telephone services entered into after the effective date of this act shall include a condition that fee schedules for prisoner telephone calls, including rates and any surcharges other than those necessary to meet special equipment costs, be the same as fee schedules for calls placed from outside of correctional facilities."

 

We have been told by the MDOC that the fund will be used for a system that will detect contraband cell phones in the system.  The department plans to take some time to determine what sort of system is needed.  They expect the system to be installed in approximately 3 years using the $21-$30 million that will have accumulated in the Special Equipment Fund during the 3 years.

 

We are concerned about several aspects of this proposal.

 

  1. It is not clear that Michigan has a serious problem with contraband cell phone usage.  While there have been cases of contraband cell phones, no one in the state has ever been charged with committing a crime using a cell phone.   
  2. There are inexpensive methods of detecting cell phones in the system, using portable devices or battery-sniffing dogs.  Obviously, the MDOC is not considering such an option.  The more sophisticated systems are reported to be very expensive and not reliable.  For example, we have been told by the Colorado Department of Corrections that they "are not currently using any cell phone detection systems,  (because such systems) are very expensive and the technology continues to evolve."   
  3. There is no commitment from the MDOC to cease collecting these funds if and when a cell phone detection system is installed.   
  4. The per-minute special equipment fund charges are expected to generate revenue of $10 to $14 million per year.  PCS will receive 30% of those funds or $3-$4 million per year!  There is nothing in the contract to justify giving PCS this portion of the revenue.   
  5. Nearly every company that bid on the contract offered some form of cell phone detection services at a lower cost than is incorporated into this contract.  There is no way for us to know the precise configuration of each detection proposal, but, as we pointed out earlier, it is unclear how much protection the MDOC needs.  The chart below summarizes per-minute rates in the original bids that would have included a cell phone detection component:

 

 

EMBARQ

GTL *

PCS

Unisys

Securus

Collect

 

 

 

 

 

Intrastate

$0.10

$035 - $0.37

$0.69

$0.063

$0.054

Interstate

$0.12

$035 - $0.37

$0.69

$0.063

$0.054

Debit

 

 

 

 

 

Intrastate

$0.09

$035 - $0.37

$0.59

$0.053

$0.054

Interstate

$0.11

$035 - $0.37

$0.59

$0.053

$0.054

 

*Cell phone detection in one vs. two facilities.

 

Adding to our distrust of this process is the following statement in the Executive Summary of PCS's Telephone Pricing Clarification: "Understanding that budgets are shrinking for all State agencies, as part of or Best and Final Offer, PCS is also wiling to work with the MDOC to create a Special Equipment Fund to help bridge any potential budget shortfalls.  The amount of his fund can be set at the discretion of the MDOC. "

 

We don't know if this contract represents an expensive solution looking for a problem or a commission disguised as a "special fund," or a way to help the state balance its budget.  Whatever it is, we believe these rates are indefensible. 

 

Please consider contacting your state representative, state senator, and the governor to ask that the MDOC pursue a less expensive solution to the "problem" of contraband cell phones.  You may also want to write a letter to the editor.  By eliminating the special fund, we can enjoy per-minute rates $0.0418 - $0.0468.

 

This analysis is based upon research conducted by MI-CURE and CAPPS.

A Note from AFSC


We encourage you to contact your legislators about the hardship the new rate increase may cause your family.  Both MI-CURE and CAPPS have provided well-researched background information and talking points.  Please review these documents before talking with your legislator.  You can easily print out both summaries and provide them for you representative and/or senator. 

Below find a quick guide for identifying your legislator and preparing to talk with him/her.

Getting Your Legislator to Listen

 

Your state legislators need to hear your views about the hardship caused by increased telephone rates within the Michigan prison system. 

 

Identifying your Elected State Representative or Senator

 

The quickest way to identify your elected official is on the Web. You can find your state representative's name by going to the House of Representative Web pate at

 

            http://house.michigan.gov/find_a_rep.asp 

 

or your state senator's name by going to the Senate Web page at

 

http://senate.michigan.gov/ 

 

These sites will easily guide you through the steps to identify your elected officials and how to contact them, i.e., it will give you their name, address and phone number. Additional information about the Michigan House of Representatives and the Michigan Senate is available at

 

            http://house.michigan.gov/   

 

and 

            http://senate.michigan.gov/ 

 

If you do not have a personal computer/access, you may call the Clerk of the House at (517) 373-0135 or the Secretary of the Senate at (517) 373-2400 for further information.

 

Contacting Your Legislator

 

Most legislators are not experts in prison issues.You will need to discuss your concerns with this in mind. Your contacts will be an essential element to their education on how the prison experience truly affects you and your loved ones.

 

Begin your contact by identifying yourself and your relationship with the individual/concern (in this case, high telephone rates) you wish to discuss. If you are part of an organization involved with prison issues, be sure to make this known.

 

Be ready to give the prisoner's name, prison number and location. You can verify this information on the MDOC web site at http://www.state.mi.us/mdoc/asp/otis2.asp. Be prepared to offer a concise, factual statement of your concerns. It would be helpful if you made an outline of the most important points you wish to make before calling or writing to the legislator.

 

Try to avoid becoming emotional or angry if the legislator or their aide does not appear to be as helpful as you desire or disagrees with your views. Stay focused on the facts underlying your concern and listen carefully to the legislator's views. Answer any of their questions as fully and accurately as you can. Write down their answers so you can accurately relate them to others.

 

If the legislator or their aide agrees to look into your concern, be sure to give them specific information and times when they may respond to you by telephone or email or mail.

 

If you wish to share your experience after contacting your legislator, whether positive or negative, or need further guidance, feel free to write or call AFSC with your questions and comments.

 

People can make a difference by getting and staying involved; legislators are there to represent everyone in their districts and that includes you and those in prison.

 

Dad says spike in telephone fee at Michigan prisons will make communicating with son more difficult

Jackson City Patriot:

by Aaron Aupperlee 


By the end of the month, the cost of a 15-minute phone call between Robert Avery and his incarcerated son will increase by 67 percent.

 

Under a contract with a new company, telephone calls from Michigan's prisons will jump from between 10 and 12 cents per minute to 18 to 20 cents.

 

The new contract, signed with Alabama-based Public Commutations Services, PCS, allows the prison system to maintain a relatively inexpensive phone system while paying for technology upgrades and better security, said John Cordell, spokesman for the Michigan Department of Corrections.

 

"This rate is still very good," Cordell said. "We understand there is a great cost burden for families. We totally get that."

 

But for Avery, the rate increase will make it more difficult to talk with his son, Aaron Avery, currently serving five to 15 years in prison for criminal sexual conduct.

 

"It's not going to be easy," Robert Avery said. "I'm retired, and I'm on a pension, but I'll do what I have to to keep the phones open."

 

Robert Avery, who lives in Jackson, is in a wheelchair and considers a visit to see his son at the Pugsley Correctional Facility in northern Michigan unlikely. Phone calls, he said, are his only way of staying in touch with his son.

"The phone call and the writing," he said. "And I'm a lousy writer."

 

In 2008, Aaron Avery, then 31, met a woman over the Internet, his father said. The woman told Aaron Avery she was 19 and the two arranged a visit in Cheboygan County. Police came looking for Aaron Avery, who lived in Jackson at the time, shortly after the two met in person. The woman, Aaron Avery later learned, was only 15 years old.

 

"He knew he did wrong," Robert Avery said. "He turned himself in. It was too late to do anything about it. He'd already committed the sin."

Aaron Avery pleaded guilty to third-degree criminal sexual conduct with a person 13- to 15-years-old. He was sentenced in October 2008.

 

He calls his father nearly every day, Robert Avery said, at least five times a week. Prisoners are allowed to talk for 15 minutes at a time.

"Sometimes he'll call me two or three times a day, if he gets irritated," Robert Avery said.

 

Under the old contract, Robert Avery would send his son money to call him collect. At 12 cents a minute, each 15-minute call cost Robert Avery $1.80. Five calls a week, a low week, ran Avery $9. A retired U.S. Postal Service employee living on a pension, Avery has built phone calls to his son into his budget.

 

Under the new contract, phone calls will cost Robert Avery 20 cents a minute. That 15-minute phone call now runs him $3; a week's worth of calls costs $15. He will find the money somewhere and still talk to his son as much as he can. Talking with his son will help Aaron Avery when he is released.

 

"If you can make life more comfortable for my son or who is ever up there, do it, because they got enough problems as it is," Robert Avery said.

 

The corrections department had contracted with Kansas-based EMBARQ. That contract expired in 2009 but the company agreed to continue service until the department found a new vendor, Cordell said. EMBARQ offered the department the fifth cheapest phone rate for prisons in the country. The new contract with PCS gives Michigan prisoners the 11th cheapest phone rate in the country.

 

The contract is a zero-dollar contract. The corrections department contracts with PCS for the service and the users pay for it. It does not generate a profit for the department, Cordell said.

 

The new rate is still much cheaper than collect calls placed outside of the prison system. According to rate information on AT&T's website, collect calls using 800-CALL-ATT cost $1.49 per minute with a $5.99 to $8.50 service charge per call. It costs $3.99 per minute and a $9.99 connection fee to make a call using 800-COLLECT, according to rates on their website.

 

The rate increase will go toward providing more phones in prisons and upgrading existing technology. About 29 percent of the per minute rate goes into a fund to equip the prison to detect and jam cell phones within facilities, Cordell said.

 

Across the country, inmates using smuggled cell phones is becoming a growing problem. It has not gotten out of hand in Michigan, Cordell said, with about eight to 10 cell phones confiscated each year. Michigan law makes it a felony to bring in a cell phone as contraband. But the trend has prison officials concerned. They search for cell phones everyday, and the new technology will allow prisons to jam cell phone signals.

 

"They are a huge security issue - especially a smart phone. You can run your criminal empire. You can run and organize escapes. You can put hits out on people," Cordell said. "We take them very, very seriously."

The new phone system will be phased into Michigan's prisons throughout the month. People can go to www.pcsdailydial.com for more information.


 

If you have questions or concerns, please email or call.  For Natalie: nholbrook@afsc.org or 734-761-8283 ext. 5
For Pete: pmartel@afsc.org or 734-761-8283 ext.2
 
In Peace,
 

Natalie Holbrook, Program Director
American Friends Service Committee
Michigan Criminal Justice Program
 
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