Nye County will examine the cost of building a federal detention center and renting beds to the U.S. Marshals Service and the Immigration and Naturalization Service.

County commissioners, meeting by a special conference call Tuesday, appointed Nye County Manager Ron Williams, Comptroller Pam Webster and Assistant Sheriff Rick Marshall to study the financial implications of having Nye County build the facility and then lease bed space to the federal government.

A handful of firms are currently studying Pahrump as a site for the 350-bed detention facility, which must be built within 75 road miles of the Lloyd D. George Federal Courthouse in Las Vegas.

Commissioners voted to pay environmental consultant Mary Ellen Giampaoli up to $40,000 to perform a first-phase environmental study for a possible detention facility site on 40 acres of county-owned property on East Mesquite Avenue, near the landfill. That study will examine whether there are any problems with wetlands or endangered species at that site.

The deadline for the environmental survey is March 30. The county has considered building a new jail at that site in the past. Commissioner Butch Borasky said the site will have to be studied regardless, since it may be a federally built detention facility or a county jail in the future.

Sheriff Tony DeMeo said the Mesquite Avenue location would be "far enough out of the way" of downtown Pahrump. It's also an industrial area, he added.

A few firms have proposed building the detention center, which would house federal prisoners awaiting sentencing and deportation.

Nye County Attorney Ron Kent thought it a golden opportunity. Kent said over the past several years, different firms have approached county officials about solving the detention problem. But he said they all required taxpayers to bear the burden of the cost.

"This is the first time that I have actually seen something that is reliable with providing a unique, golden opportunity, as it were, for the county to solve its housing detention problems in Pahrump with some degree of certainty as well as the ability to relieve the taxpayers of the burden of having to potentially pay for the entire weight of this project," Kent said.

Marshall said a survey of 10 counties across the country that lease beds to the federal government showed they were paid from $65 to $97 per bed. Assuming $80 per day, the federal government would pay $10.2 million per year for a 350-bed facility, he said.

Kent said past estimates to build a new county jail have ranged from $15 million to $35 million. There is a concern a privately-built detention center wouldn't include beds for more county prisoners. DeMeo said Corrections Corporation of America talked a year ago about building a $122 million prison.

Nye County Commissioner Joni Eastley had concerns about the county building the facility. She cited language in the pre-solicitation for companies interested in bidding on the project.

"They will award a firm, fixed price contract for an estimated term of 20 years, base period of five years. But there's no guarantee that they will award to Nye County the additional three five-year option years," Eastley said. "If Nye County is able to secure a five year contract but someone builds a facility right in Clark County, there's no proof we would not be underbid and lose the option on the additional three five-year contracts."

The sheriff said Nye County routinely enters into five-year renewal contracts with the federal government to provide law enforcement on the Nevada Test Site. It would allow the county the chance to renegotiate the contract for more money for salaries and upkeep of prisoners, DeMeo said.

Kent also sought to reassure Eastley.

"The reason these people, these private sector individuals, are scampering around attempting to secure this contract, number one, it's very valuable. Number two, they believe that long-term option will be something that is honored as long as there is sufficient performance to satisfy the federal government," Kent said.

"When you're dealing with the federal government, as long as you meet the terms and conditions of their contract, they typically, as we know from our other dealings with them, they typically will honor their contract. As a matter of fact, there's probably far more security in a federal contract," he said.

Commissioner Butch Borasky encouraged county officials to investigate the costs from an economic development standpoint.

"We're going to have to build that jail sooner or later, and if the county does it and the county provides extra beds and can bring in $10 million per year, if the numbers were crunched and brought back and feasible and the possibility of a further guarantee every five years, it's worth looking at," Borasky said.

He said water and sewer lines have now been extended nearer to the proposed site, to Mesquite Avenue and Blagg Road.

"That would also open up an economic corridor along Mesquite on both sides of (Highway) 160. Overall, to me it would be a great plus to Pahrump to bring in the economic development to open up the corridors, to provide jobs, to bring money into the community rather than a private firm that would put it in their pocket."

Eastley was still nervous about the project.

"I'm not assuming there's a free lunch with this. There's a tremendous amount of risk, from what I can tell, for Nye County," she said.

Nye County Commissioner Roberta "Midge" Carver said it would be a wonderful opportunity if the county could pull off the project. But she wondered whether it would be financially lucrative to lease the beds to the federal government after all the detention costs are added up.

"We have before talked about expenses, this, that and the other thing, and particularly the jail where we forget about the employees, we forget about the sheets and towels, the dishes and the food and all that kind of stuff," Carver said.

Pahrump Town Manager Dave Richards and town economic development coordinator Al Balloqui were listening intently. The town has met with officials from Geo Group Inc., one of the firms interested in bidding on the contract.

Balloqui had concerns over the county's conflict of interest in competing with other companies to build the detention facility.

"I'm in favor of the county going forward with the operations," Balloqui said. But he added, "Should a private entity come to the county looking for either a zoning change or permission for a phase one, how would the county respond, since they would be competing with that entity?"

Pahrump Town Board Chairman Laurayne Murray had a copy of the pre-solicitation notice. She pointed to language requiring "a contractor-owned and operated facility" as well as the statement, "The offeror submitting the proposal must clearly demonstrate at the time of proposal submission it has corporate experience operating secure detention facilities over a continuous three-year period."

Murray said that wouldn't exclude the county from bidding on the contract, but it would have to be done professionally.