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Wadoc Contract Documents With Wa Marketing Group 1999

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STATE OF WASHINGTON

DEPARTMENT OF CORRECTIONS
OFFIC~ OF

CORRECTIONAL OPERATION$
Olympia. Washington 98504-1187
iJ60J ,-53-570] • FAX (]60J 586-6582

~ 10 W. 5th • ,\itS: ~ 1 718 •

September 17, 1999

Paul Wright DOC# 930783
Washington Slate Reformatory
PO Box 771
Monroe,. WA 98272
Dear Mr. Wright

Enclosed are the documents you requested conceming the Department of Corrections contract
with the Washington Marketing Group.
Per Statue 4217255 I have redacted the information for private citizens and businesses.

ab
Enclosure
cc: Cathy Carlson, Class I Program Manager
Dennis Thaut. Associate Superintendent

00000001

Exhibit 7

EXHJBJT_'__

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STATE OF WASHINGTON

DEPARTMENT OF CORRECTJONS
OFF1CE OF CORRECTIONAL OpeRATIONS
CORRECllONAL.INDUSTRIES
P.O. Box 41115· Olympia. Washington 98506-1115· (360) ;53-4006
FAX (360) 7S3-G219

August 2, 1999

Paul Wright DOC# 930783
Washington State Reformatory
PO BOX 777
Monroe, WA 98272
Dear Mr.·Wright
I have received your Public Disclosure Ad request for documents involving the Department of
Corredions contrad with Washington Marketing Group.
Per Department of Corrections polic,! 280.510, enclosed, the charge for sending 57 copies to
you is as follows:
Cost of photocopying 57 copies @ $0.35 per page
Envelope @ $0.08 per envelope
Postage
Total

$19.95
$ 0.08
$ 2.53

$ 22.56

Payment for photocopying must be received by the Department before any documents will be
sent to the requester, and only a Money Order will be accepted as payment
Please send payment to: Howard E. Yarbrough, Administrator
Office of Correctional Operations - Correctional Industries
Post Office Box 41115
Olympia, WA 98504-1115

Howard E. Yarbrough, Administrator
Correctional Industries
ab
Enclosure
cc:

Cathy Carlson, Class I Program Manager
Dennis lhaut. Associate Superintendent

"Working Together for SAFE Communities"

00000002
Exhibit 7

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EXhibit 7
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00000005

Exhibit 7

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Exhibit 7

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Exhibit 7
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Specialty Foods Order P~ge
We ask for your patience while we work on our shopping cart Cor the future.

1.....$_ _
I would like 0 ofMutiny Bay Spice Pack(S16.95 ea) ::: I: $
I would like

0

oC'Comet Bay Sauce(S3.95 ea) =

I would likeD ofMutiny Bay Recipi~s($S.9S e&)=[:"
I would like

0

.,

'::::"J

of Strawberry - Rhubarb Jam(S3.2S ea) == [J-:=J

={$ I
I would like 0 of'Bumble Beny lam(S3.2S ea) I: $
l
I would l~e 0 of Marion Blackbeny Jam(S3.25 ea)::II l $
I would like 0 of Blueberry Iam(S3.25 ea)

::II

1 would likeD ofBOYlenbeny Jam(S3.25 ea) a

J

[_.$_......

I would like D of Marianberry Syrup(SS.95 ca) = I'

-'' 1

0 ofLoganbcrry Syrup(SS.9S ea) a-'-'
1 would like 0 ofLoganbeny Jam(S3.25 ea) = f$::J
I would like rVI ofRosemary & Thyme Vinegar(S6.95 ea) ::; [$-]
I would like mof Lemon Thyme & Dill Vinegar(S6.95 ea),::; (:! 6': 9.5 I
I would like

I would like

11:1

mof Chile

I would like

Pepper Vinegar(S6.95 ea) - ( $ 6 :9's"1

mof Blackberry Vmegar(S6.9S ea) = [$6~ 9~ I
Subtdtal = @Q':~

lrin WA. add 1.9% sales tax

=J $1. 6'5]

Shipping::ll S 3.50
Total ~

(i'!!:"og

18 this a Gift? (l2lYes)(DNo)
Please Check All That Applyl
IfYea.. .itls for(D a Birthday)(ClMyWife)(OMy Husband)(Oa Special
Friend)( 0 Something Different for Someone Different1)( til Just for Fun)

Your Name

~..,

Your Email (required) _ _ •

Ship To Name

f Mrs

Billy L AntJez:son

Ship To Address
City & Zip

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••• IMPORTANT •••
Print this out now before submitting. Please send your order and payment to:
Comet Bay Sheppe
175 Cornet Bay Road
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00000008

Exhibit 7

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MONROE CORRECTIONAL COMPLEX
SUPERINTENDENT
P.O.

BOX 777

MONROE, WA

98272

FACSIMILE TRANSMITTAL. SHEET

ToTAL. NO. OF PAOElI INCLUClINQ coveR:

PHONS NUMBER:

SENDER'S PHONe NUMBER:

A!:

lENDER'S flAX NUr.deR:

(380) 79..Z&10
Oi1URGENT

qJ FOR REVIEW

0

PLEAS! eOMMENT

[J PLEASE REPLV l:] PLEASE RECYCLE

P.O. BOX 777, MONROE, WA 118272-D777

00000004

Exhibit 7
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STATE OF WASHINGTON

DEPARTMENT OF CORRECTIONS
CORRECTIONAL INDL:STRIES
P. O. 80X .J 1115 • OL Y.",PIA. Washington 9850.J·. (3fiO' .-53-5703

May 19,1999
Jim Paton, President
Washington Marketing Group
PO Box 547
.
Monroe, WA 98272
Mr. Paton:
This is a follow up to the dosure of your telemarketing operation on Thursday, May 13,1999.
The Secretary of the Department is terminating your contrad dated August 3. 1992. and
extended June 20,1997. The contract is terminated under Clause VII. Termination:
-Either party may terminate this Agreement by providing thirty (30) days' written notice to
the other party. The notice period shall begin to run on the second day following the
postmark thereof or upon the same day which personal delivery is accomplished:
Provided, however, this Contract may be terminated immediately by the Department if, in
the discretion of the Secretary of the Department, its continuance would jeopardize the
safety of WSR."
.You are hereby instnJcted not to conduct any further business. telemarketing or otherwise, from
the institution; to do so. would further jeopardize the safety of WSR.
Please contact Cathy Cartson. Class I Program Manager, and Superintendent Ken Ducharme,
immediately to make arrangements for your equipment to be removed from the institution not
later than May 31, 1999. There will be a walk-through inspection performed by the
management of the Monroe Correctional Complex, Correctional Industries staff, and you at the
dose of business May 31, 1999. All keys, badges and any other Department of Corrections
identification issued to you and your staff shall be tumed in May 31,1999.

If you have any questions, contact Ca1hy Cartson at (360) 586-7552

Sj~~,

~~~t~inistrate
OCO-Correctfonallndustries

HEY:sp
Cc:
Joseph D. Lehman, Secretary
Dave Savage. Deputy Secretary
Patria Robinson-Martin, Assistant to the Secretary for Govemmental
And Constituent Affairs

,. .... ,........"........

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00000003

Exhibit 7

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STATE OF WASHINGTDN

DIPAATMENT OF CORRECTIONS
COMEcmclUa. tNGU1ITRlES -MONROI CORAEC'nCNAL COMPLEX

PO IICDC 771 • Wanra.. W.."ingtDn 118112 • (aO) 1'''·1517

April IPt

1m

Jim,&taD, PlI.tdcat
WI~CZl MaJ:kdiDg Otoup

PQBaxS47

Maarge, WA 91212
:DEr Mr. Psta1,

It baa came to d:Le attmrian tilth. ~ gfOm8dicm (D(X) that m aifmder~ tar
Wallbi:agtan MarkCins Gtvup (WMG) hal a _ to D81JWIIIDd phazle D1II2lIHn of residsmial
III the pel 6. mmp afbia jab daIi~ he dGwD1aads the &IIJIItGm8ra' pcsaaaI
mt"orml!tiOl1 (natr- sad phJme mmmcn) ~ by WMO's G1i. .~

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WMl:i"~ amtrBt wish the D~ of Omud:icma stms in sectian II. Omdiria of
Oe:rupeacy. H. s-,..... Caatn=r lIball ackDGwltdp ~ at documcaratian at sud1
pzoc:edar8s aDd q;ree in writiDc to oc=pJy with all sw:h proc:adur•••
0

. A aamt directive £ram. DOC Deputy SCTISaIY. Dave Sa....88J limits imDate 8C1Ca11 to the public.
1'1Iis bas t'IIUkecI in die Raf''''''''''''Iy ~ teI"",,,,,- vCIe papa flam jmmte 3ftDS.
In liFt olthe ed.,sve cbmp made tar taJem·rkitlra to eUminltlJ1UCh &CCBI&, th8 Dtpan:aIsIt
reqn.... that ,au eaI8 i'bi'iediatAl1y fi'OIIl, . . of!'III.c5m ibt Joacinl.DllDa ml phaao JIIZIIIhn
iIm y<Iut iyitaIL A ciWim . .wiJl.-l to dD this talk. Thia is and. . with athsr aecurity
thIIt an in pIaQJ c WMO a."MIll u the imcmt al])ave Sawp'1 maio aD ratddiDg
Kalla t.o the po1:dic.
I am alia cc1C1ing a coPY at a ~ &am 199'1 hlBJ&lcius
AcICIu to Blec::aaaia Dm.
"Ibm'e ia~ cfiswt aClCllU 1D the mtl!llN!t by afFcmd.n. n. ~ ' a8lIpCflrilQQ ia1Ut tbiI

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paIicyia still bJiDsIaUCMId.
JtthmJ is all isNa wi1h tr.Iiaiq c:iWiaD Ilaff'tD do this taaJc, pIsase eactaetme 10 \MI caD mllCUll
timaiiamaI. You am Mlch 1IID 3t 3~194-2.361,

cc:

lWwardB. YaIbrausb. c.au.:ziaaal !nda,llCrieallUSlain AcimjnjstDtar

DamiI'DIamt ~ SupedDtSlda

Cathy Carlsan, CJau l1Iugaam MmrgCl'

00000010

Exhibit 7
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STATE OF WASH II'lCTON

DEPART""ENT OF CORRECTIONS
OIVISICN OF <':(jRREC71(J;-',.\L ."OL"j ;"~lcS
PO Box': j " 5 • Ol,·mp'J. WJ~hlf'g",n ~8ilJ.J • Jill}':-S J.;;'JJ

October 21, 1997

James C. Paton. President
Washington Marketing Group
PO Box 547
Monroe, WA 98272
Dear Mr. Paton:
A question has been raised by one of the private sector partners regarding the ability for
offenders to have access to the Internet in the course of daily business activities. I have
enclosed for your review a copy of Department of Corrections Policy 280.925, Offender
Acces~ to Electronic Data. which specifically addresses this issue.
Policy 280.925, Section II C, states that physical security barriers must be in place to
ensure that offenders are restricted from accessing the Internet, LANIWAN (Local Area
Networks and Wide Area Networks), dial-in access (modems), E-Mail, and on-line
services. Only Civilian staff is allowed to have access to these areas. If these
applications are necessary for your operation, please let me know prior to installation so
that I can work with appropriate institution staff to ensure that proper security barriers
will be in place.

If you have any questions regarding use of computers by offenders. please give me a
call at 360-586-7552.
Sincerely,

Q:~X~I~~anager
Correctional Industries
Enclosure

00000011
Exhibit 7

Ap~

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99 01:43p

Correctional

Industries

(360)

794-2870

p. 1

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STATE OF WASHINGTON

DEPARTMENT OF CORRECTIONS
LJIVISION OF CORRECTIONAL INDUSTRIES
P.O. Box 4' , '5 • Olympia. Washington 98504- 11 r 5 • (36m 586-48'

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TELEFAX TRANSMISSION

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DoC/CI • 01-YMPIA
FAX No.: (360) 753-02 t 9

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DATE: 4- -I;" -99
FROM:

No. OF PAGES:

CLASS f COORDINATOR

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(INCLUDING THIS COYER SHE£r)

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III PLEASE COMMENT/REPLY

COMMENTS:

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01: 43p

Correctional

Industries

13S01

794-2870

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APR 12 1999
INTElliGENCE OfF1CE
WASHINGTON STATE RefORMATORY

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(A COllY WAS MAILED TO EACU UN MARCH ,11.19IJ9)

'':':UTC·TV
The Sc:atrh: Tim~1
SC:ltrlc:: rU!lr-ll\r~IIi,.c:n~cr
'111c l)twy Olyn1pmn
1 am an inmate confined at the W2ahington Sate llefermatacy. Cuercndy. J '\IIOck
within rh~ inltiNtien :af ch~ Wuhinpn M2dceang Group. W.M.G. i. nothing more than a
doale for Lepc:y Enterprises: a ~lematkering company that employs inmttet for labor.
\v.M.G 2nd W.5.R. have enjoyed a history spanning approximately IS yean. Within thi.
perind. they have: eentt2Cted. foe boch lab.or ('~au:~) and working .spa~~ ~ithin the
ul.riruriun ;at ~~c:ptionally rmc;ol.ll\tce.t l,n~e. nu:rc II hardly any thinK IUic:&( abour l.1.lt-cate
prices givc:n by it prupric:tor to :L lcueholdcr. Howe:-tet, then: is • quelbon of dlC: crhic:aJ
bua.ine.. practice. this particular lea-cholder uctc:ilcL 'Innl! quc:stionable pnctices arc the
suujcc:r uf the fullowing paragraph..

JhY1Ci.,ttl~ fZC.l~

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Whcn 1initially began wurking with ~M .. , rhe comp:any rccaincu only twu wurking
Kcounm. The primary acl:ount ~ t h e ·
. This account ourlined
relephone soliciotion (Ol donations. The second account dalr principally wirh ~ wholesale
magazine distziburor. In this account, ~ marketed .ewn1 magujnc subsaiprions and
secured payment plans. In both or thete accounts, we u inmate relemulcetcn gathered
reuonable infortmbon that would aUow the company to follow ~p and lecure che
donati9ns and payment! of the ':lJbscriptiona. 11\e information collected included: fUll
namcs.l&ddrealca, telephone numher of n:sidcncc And information regarding the parrieul:ar
pu-yment l,lan. Scarcely iUl uffense yet. u.u~..tiunitblc: unce you plRL"C '01 convicted rclon into
the equation and uk him to baJ;utce IUch information.
01. ",."."

In April of 1997, Legacy Enterprilcs was un£ortunate/fo~~:(dq2cnding on your view)
.: •
=ou~;p.be spotlighted ·Cor 1S seconds in the clOling ~fS6BC'1 'JJJ/20
.
.••.•...
.~~
newsmagazine. The spotlight was a result of the newlrn-Pzjne feature "port on :a naaon
- '.J
wide tnnd involving the uriliuOon of prisoners by companies ~ tclemukemn. 'Thae 15 .
t
seconds proved be a rmjor mi.fonune for W...'!.G. Cons~quendy, the American hd
l
Cro•• W'JI (orced to wicbdQW its account from the W.M.G. p",on banch. Thil was in
..... ~r ..: .
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capons~ to th~ agency's .cnmbl, to hcad-off' 21\)' que.aan:o~~ 2genc:y'. propriety within. " I • • " •. , " :. . . • { { '
the public's nund. (W.M.G. however. continues to openu: me-account on the autJide with....: ' ..:'.:'...•.. '.' •
its "Iegitimate tc1emarketr:n".)
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A;Jth~ugh with les. fan-&;te then .:he J\menc:an Red Cto~., the ~holcsa1e mapzine

;.

dIStributor also canceled Its cantr2Ct with W.M.G. Now. well ~e of the public's
perception regvding the use of inMate. 11 teJemwetcrs, W.M.G. bepn ro initiate "rule. of-

cQnductlO to their inma.re employees. ·!ltc.e Nics were implemFted in concert wich the
.company's new clients. (Rainier ~erican Monpge Company and Jona Mortgage

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Exhibit 7

Apr 12,99 01:43p

Correctional

Industries

13601

794-2870

P.3
W.M.G 3nl/99

Company) '!he "Nics of conduct" ~,tttute:u were: far the benefit of bath p~v,dl:r and
client, with no ~d for the pUb,lie's Inl~~t. 1'h~sc NI,es proved to be nothsn~.~re ~3n
5ubdc thrL"lolts by W.M.G. to rhe: llImatc:s lob secunty. (Undentand tha.t W.M.G. III classIfied
hy rhc Department or CotTecnons :Lot a aus 1 indunry employment_ For us inmateS. thi...
:>imply mC'MS minIm",", ~e, the highcst paying jobs and ther.:fnre. the !J11!'~test
employment opportunity we win ever sec in prison.) The following are thc three: major
\nsUuctions given to us uy the owner Jim "Patton and the prison E\qu~ supervisur Stan.
1.) Nevu admit to the: customers 118 being employed 8 .. 1111 inmate: tdemGdceter.
Z-) Always ".kin» or Mtap-d3JIcc" the: quaMIIS surrounding VII .M.Go's exact caUiDI

location.
3.) When prl!8I1ed, di,c1ollc to being employed u dther RaiDer or 10n ah Ma.....ae
.companics' reprcllent:auve,
.
Wc cold·aUed randumly the sta~ of Washington, Utah, Oregon, and Chiago for
refinancing. Superficially, nul' targets wc:rc: only reSidents ...,ho elCprc:ssed an interest.
HCJoMever, esscnri~y we were encouraged by Jim Patton and Stan to eugct those residents
who had "b:u:i credit", older mo~ holders 2I1d those individuals who we "felt" were not
ton knowledgeable ~d would be suc;c;e:S!lf\aJ an f-dSt-f21king mum into a ,dl, The information
IP'thcnd by \JS inm:tes for murtstall.C refinancin~ were as f'ulloW1l:
1.) Addressc' of reSilience or bUSiness
2.) Appr-ais~ V2lue a f' home:
3.) Outstlnding halan.:c of
home
4.) FinanCial lnlititution utili2cd
5.) Cucrent percentage r.ate on lo:m
6.) Payment plan currendy in effect
7.) .Amount of all debt owed (credit card, vehicles, boat, loans ett.)
8.) .Any infocmarion to further ensure: the: unmediate c:all b..ck of the Rainier or Jonah's
Loan Officus (i.e. bx number, ceD phone number, work number, etc.)

me

1\ critical point th~t ncc:ds :0 be stated i, mat this ulformation . . . and ia currently tlowing
through the hands of inmato who hue: been "pre.screened". W.5,R. and W.M.G. will have
the public: believe mat the "pre-screen" guarantccs that no in~teS convicted of a sexual
telatc:d uffc:nsc would be c.alling the c:ommuna~ or is privy to the: sensitive information
gathered frum the C"~ls. In reality. the screening pro&:c" docs not include inmates who pleabargained their ;nsant sexuO\! oa'cnscs down fa lesser offenses.inmate.s who were initially
cha.rged for r".lPC huwever. hcc:aUf~ of 1:lck of evidence. were only charged for <ItlSiult were
not included. Othen inJm'e~ who were initially booked for child mole.sution only U) be
later charged with a lesser-included uffense were not in.:ludcd. 1111: same scenario plaY1 out
for st2llccn, vOycuES. and all cl~sc:s of pedophiles.
'
~th

.this stated: this le:ds to DoO.C.', imposinon upon W.MoO. the nU~ SQting, "Nn paper
or wntmg utensils were to be brought up to the W.M.G. work ate'.L" This WM 0au
cnforcsd. Rcmindetl maybe. however no me-L,uro W.l:l ~ pbced into effect as to compel
the rule.
It wu a cnnvnon as a ritual foc 2ft inmaa:/a:lemarla:ter tu assemble aad discuss "business"
on the o'13lg Yw" with his .:c-workers and rricnds. The subjct't m:uter dealt with the fcm1l1c=
and male I.:ontaets (willinR or unwilling)
inmate telemarlc:eter made over. the telephone

me

00000014

Exhibit 7

p.3

Rpr- • 12. 99

01: 43 10

Cor-r-ectional

Industr-ies

(3601

794-2970

P.4
3

W M, Q 3/31/99

and ofrhe: inform~t1on he possessed un it. $100,000.00- homcs (3ddrt.'1>1; and humcowners
work schedule r~r-.ul at il RCncrous cost here in pnson). Pn:sently the: sy:ul::m that 15 engaged
i1l1oW'J Inmate telemarlcetc:,..~ fO C::lUblick :I customer at _ desired orne:. ·nIU!I. aidinK
(adve:rte:ndy/in:uivertently) me ntm2te teJern2rlcefer in speaking with the: individual At Icuurc:
and at W.M.G,'s expenlle. Of more meaning tu the: inmate, the calli t':ll:llcd unscreened by
O.OC.
w.:vt.G. and D.O.C. !ltate that all 0.111 an and arc: screCl'1ed t"41nJomly. In part, thIS
j;ratemc:nt is true. D.O.c.:. al1d W.M.G. on l;creen aU calJs made: by the ,nmatl: tdc:markctm
however. the system employed then 2I1d now, alerts the inmate telc:nurkc:ter to the prccnce:
of a third patty on line:. 1\ sharp echo on the spC2kt:f/he:.1dphone unit punetUiue~ this
prl:scnCI:. ~'\s,dc hom this. W.M.G. alw-ays alerted the inmate te1c:marke:tt:rs nnt only to when
the prison was scheduled to mnmtor but'Nhcn W.M.G.'s. clients (Rainer :sndJona) were:
scheduled to monitor.
Now cntt:n the use of"the Wocld Wide Web by inmart: Tc:c:hnit:31 Supervisor John F.
AncJc:non. As lin IOmate 1'echnloJ Supet'Villor he is responsible for maint:llnmg the:
telephonic system and alJ equipment cmplny1:d by W.M.C. 11l1s include, nor unly the
operator's equIpment but 1111 the scnllirive intormaaon g'3thcred by the inmatl: teiematketen
and ~ve Information ptOvlded on CD's by the clients of W..M.G:s. In thIS mannc:r,
Mr. - , - a l s o c~...teS and inCOrpUl'"oltes the methuds of employment for these CD
uatab3.!l:S (Suclt 3.lI the: c:aJlb:u:k technique). The CD's thcmsdves CDnt;lln the esscori:a1
tc:1ephone numbc:n and addr\:ue! necr:ssary foc the inmate telc:muke:c:rs, to conduct thesr
(,;,,115. Inmate Anderson alsu mllk~'5 use of the five computers provided by W.M.G. foC' the:
lIupcrvisurs. It i~ on th~e cumpute" ::h~t he cruises and m·"kcli purchases on the Internet.
Ostensibly, fur the business end ofW.M.G. lbis is In direct violarion of the Washingtnn
Annotated Code, which forblCis inmates to access or be In conaCt wtth the Internet.
In light l)~ technical s II and indispensnbJe working knowledgl:. W.M.G.
looles the·~ it comes en
cursions on the Incenu:t. Evidence
of this is C11\ be observcu by his generous cuI eetiun 0 music: CO'!I he h29 unassed in his
office and oft~lW1ces'Nhich ue incump2.ublc with the running ofW_'tf.G.'s
daily funl:tlUn..C~.",kJll&" 2.nd influence II not just restrtcted to \V.M.G.
Accurding to the Seatde Pust.Jntcllig~nccr.C-..4ptatn eV3nll, thc 3cnlur Co~ec:tiuna1 Dffacer
(or W.s.R.., sVltetl that the efficient' d:a: to day operation ofW.S.R. was uependent an the
information pro\"1dc:d lly two inmates.

Fana1Iy, 0" the: third week ofJanuary 1999. the W.M.G. was· closed down for an undJsclosc:d
period of rime. fn the meetinR fulluwing the closure, the owner, jim Patton, inioaJJy st2ted
that he was heing blade· mailed by Dqnrtment of Com:c:tionl senior offiQal, in Olympia.
As the: meeting ptowessed. it beame clear and plainly obvious. that W.M.G. would be
closed for the duranon of the rematning Icgisllltive se"ion. Mr. Patton ~tated that this was
ncc:es~ary .bec,:lusc: of the increasing interest ?f the legislators, in closing down the: prisun
tdemakean~ Industna W1thln me: unly two lnstirutions :allOWIng them. He sfated chat if we
dU$eu down fur now. during t~c SCSlilon, that the: Icgislaton would breathe lighter iU'\d pass
on a. bIll callsng foc the bOl" of Inmate celemarkcn:n. We dosed du\V'n. No such blll was
introduced.

00000015

Exhibit 7

Rpr 12 99 01:44p

.

~

12 ''39

Correctional

Industries

(360)

794-2970

09: 04RM WSR _

P.S

W.M.O 3/31199

J\s clu~kwork, once the putcnda1lc:gisJ~tion had dir.d unly a select f~ of
inmllte!telcm:arutl:rs were: :u:lcC:ted ro conMue wodung :It W.M.G. According ro Jim
l':lttnn the rest of the: worlc:en wuuld be aUed baA:x once the: legisJature: wu rcces~c:d.
CI)nduc:tinJ; the: sante: type oC"hu.qincss prACtice". "'e h~vc in the put. Only. now we are
muce SCI:Cl:trve than c:vet of rhe accounts we maintain, J',;Ot eYen D.C.C. is privilcge:u to
what we nuw marker. Attounn: uc as fullnws: mortgage.1. ceJJ-phanc/21r-time u...e.,
t'uhllcnpnun5, moving v-m-Iine:s, Intetnet Web Site 5Ct-up~ and supcrvLSinn of the: W.M.G's
numdt: ht'"dl\ch ~d Cmss opct:ltor!'. Mr. Andenon, Mr.. Gary Isaacs and I conduct the
screening of the civilian oulSide bnnch operator.. Inmatcs monitorine civilian
operators. Quite the par",dux.
All that 1 have disclosed in the: paragt'llphs above ~ 3n.-a., that I ha.,e personally been
invulved wich, witnessed or was told. None of the ;\buve information is second hand or
thied party generated. Theee: ate hu.....ever. twu det2iJs that I wish to disclose yet. atn unabJe:
to directly :lttClit to.
fliNt, is the W.•\f.G. IOmntc: teletnarutt!J'" bonus fund. For r::vc:ry refinancr that is initially
p;enct'",stc:d hy the U1Jrn&te ~lcmarkc:t(;Q tJy rhe R;inc:r :u,d Jon~ mo~c: comp-olnteS, the
inm~re:l Me givc:n 11 $30.00 du/lar and !S20.00 uaUar bonus, respet:tively. The numbers of
Of,ver3gc leads generated by an indivld\\a1 inmate tclemmet!:r arc 9(}·140 11 month (90 -14U
It:"oldtl·for refinanCIng)_ Of rho~c. u!lu~ly only 15·30 % is :letu.uly dosed. 'Twenty-four
inmatc:/tdem~kctc" are full-rime employees. Taking the mc:d1an the ma-th indi'l\ta that
'here ate un average 2760 icads fur refinant:lng in the: cuttre room f~r :l Due-month pc:riod.
Applym~ the: average uf 15-30% fC) d\c aver-Age numb!:r o£leads gives us 621 c)o,ed
cdiniU\C:cs. ClCLlc:d rcfm:u\c:c:s timc!! the :l1m:1te telemarkcten bonus fee account! for
St8. 631l.00 in totll1 pay-out fur W.M.G. to the snmate telt:frnttkc:tc:n. -The tol2l number of
btlnu$CS to be paid \l\ :u:cocdancc: to the law uf averages lS obscenely short of what h~ been
al:tu~Uy paid to chc: inmate rdcm:&cketcn in rhe last 2 yean.

Second. is the lay-off and in othel' Umes of outright firing of senior inmau: tl:lem~kc:tcrs by
W.M.G. On sc:veal occ:a:-ionsinmatc tc:lemarketl::cs h~vle been laid-nff or fiteu for reason."
fatally unjustifiable:. It is believed by many that. this systemauc termination of se:niot
employees i~ duc to W.M.G:J ~t:Lchaave1li~ netd to exhaust the old contracts use:d at the:
tune these senior cmployt:t::l were hlrc:d. The cnntn.el:3 pcm,;slon gr-antec! Jnmatl::
telt:marlcetn to profit shari: with the company as It progre,sed. W.M.G. has neYer presented
a lCgJnmatC rC25un for the: fiang of theae Inmare teJemarlcet~. Then ag»n as prisoners.
what right do we h~ve to question?
In dosing. I believe it best to state the rc::&Sons for my c:fisclosun: of the "behind the scenes
business prurices" of the W.~.G. Then: IS only one rcuun 2nd it is to me ,imply
undecstal\I,bblc. I am uflenly gay. Hecausc of rh~ admission the company and the
inmllte/tclemarkcters h...ve. burh rrcatcd me with di~dain and disgu6t. In the end. I know
they are no better than I am. Perhaps, It i~ jU$t the reckoning.

00000016

Exhibit 7

p.s

Ap~

12 99 01:44p

....

I=PR lZ "99

09:~

Co~~ectional

Industries

(3S0)

794-2870

WSR

p.s

P.6

s

W MG 3131199

A copy of chi~ letter \JI2$ forwarded in t:lndem to the WS.R.·~ Jntema.llnvestiptionll
division officer, Mrs. Vick1 Huwin. In five days rime 11111111 ;Uso submit 1 copy to the: three
maior national tdevisinn broadastCtS in chis area.
) ask that my narne be kept Ul the strica:sr uf cunfidcnc:e.

RcspeafUlly,

00000017

Exhibit 7

Jan ~O 99 03i47p

.

Jim Paton

425-355-0812

p.2

uJrnq,

~.

Washington Marketing Group, Inc.
PO Box 547
Monroe, WA 98272
(800) 488-4609
(360) 794-4929 (Fax)

\-"V

,1'1\
,

~

(q . "f-:>/' (V'dffl

I \, J

\7

January 19, 1999
Ms. Ida BaUasiotes
JLOB 401
Olympia, WA 98504
Dear Ms. Ballasiotcs:
This letter is to ensure communication betWeen you. Correctional Industries. and me
regarding the activity at Washington Marketing Group's office at the Reformatory in
Monroe..
As agreed, we have ceased all marketing activities for our mortgage customers at this
facility.

..

Owing our teleconference of August 5, 1998 you stated that your concerns were
specifically Inmates... "dealing with information of people on the outside."
You also stated that you could support the industry if we were doing something else.
I have been working with the manufacturer ofour computerized dialing equipment at the
Reformatory to develop internal call transfer technology. This would allow us to.transfer
calls internally to a civilian supervisor. For campaigns that require the gathering of
information those calls would be transferred to a civilian supervisor and only the
supervisors would be allowed to gather information.
Inmates would not document information or have access to any of the gathered
infonnation.
This solution addresses your original concerns and also goes beyond those concerns. We
would apply this policy across the board and build all campaigns around the call transfer
capabilities. Any and all data to be documented would be performed by civilian
supervisory staff' only.

1

00000018

Exhibit 7

Jan

2~

99 03:47p

Jim Paton

425-355-0812

p.3

We would like to proceed with the installation ofthe call transfer technology as soon as
possible and apply its added security to all of our campaigns immediately.
I would like your feedback before incurring the expense to ensure that we have your
support once we institute this policy change.

Please communicate with me at your earliest convenience. I would like to proceed as
soon as possible.

~;1i$;

James . Paton, Presidem
Washington Marketing Group, Inc.

. ce.

Joseph D. Lebman, Secretary
Cathy Carlson, Class 1 Program Manager

2

00000019

Exhibit 7

.Jan 14 99 03:13p

.Jim Paton

425-355-0812

p.2

Washington Marketing Group, Inc.
PO Box 547
Monroe, WA 98272
(800) 488-4609
(360) 794-4929 (Fax)
January 14. 1999
Mr. Howard E. Yarbrough
Correetiona1lndustries
410 W Sdl
MS: 41118
Olympia, W A 98504-1181
Dear Mr. Yarbrough:
This letter is to confirm our commitment to the agreement made on August 5, 1998
between you, Secretary Lehman. Representative Ballasiotes. Cathy Carlson. and me to
transfer the telemarketing mortgage activity to our civilian call center outside of the
department's facility,

As discussed in the August S. 1998 meeting the transfer of the telemarketing mortgage
activity to our civilian call center outside of the department's facility would require the
construction of a larger call center.
During our quanerly compliance meeting on November 18, 1998 I informed Cathy
Carlson that our contractors, building the larger space for our civilian call center
necessitated by our agreement of August 5, 1998, were running 2-4 weeks behind
schedule.

In compliance with your request in your letter dated January 7. 1999 there will be no
mortgage activity at the Monroe Correctional Complex after January 19, 1999.

Res~

tL~~·

lames C. Paton, President
Washington Marketing Group, Inc.

00000020
Exhibit 7

STATE OF WASHINGTON

DEPARTMENT OF CORRECTIONS
OFFICE OF CORRECTIONAL OPERATIONS
470 W.5th • MS: 41118 • Olympia, Washington 98504-1187
(360) 753-5703 • FAX (360) 586-.6582

January 7, 1999
Mr. James C. Paton
Washington Mar1<eting Group, Inc.
Post Office Box 547
Monroe, Washington 98272
Dear Mr. Paton:
It has come to the attention of the Department of Corrections that Washington Marketing
Group, Inc. continues to sell refinanced mortgages to the general pUblic via telemarketing.
The agreement between you, Secretary Lehman, Representative Ballasiotes, Cathy Carlson,
and me on August 5, 1998, was this telemarketing activity would be transferred to your
civilian call center outside of the department's facility by January 1999. Your commitment
was to transition this operation systematically between August 1998 and January 1999.
Washington Marketing Group, Inc.'s continued telemarketing of refinanced mortgages is
contrary to the spirit and intent of the agreement made August 5, 1998. The department
requests written assurance by January 19, 1999 from Washington Marketing Group, Inc. that
the company is no longer offering this prodUct. If Washington Marketing Group, Inc. does not
cease from telemarketing refinanced mortgages at the Monroe Correctional Complex, the .
department will have no other option than to tenninate Contract No. CDC12761. If you have
any questions, please call me at (360) 753-4001.
Respectfully,

~~re::;£
~.

Correctionallndustries

•

HEY: aim
ce.

Ida Ballasiotes, Representative 41 It District
Joseph D. Lehman, 5eaetary
David A. Savage, Deputy Secretary
Kenneth DuChanne, Superintendent
Thomas J. Young, Assistant Attomey General
Cathy Carlson, Class I Program Manager

00000021

Exhibit 7

WASHINGTON
MARKETING
GROUP, INC.

Memo
To:

ALL EMPLOYEES

From: STAN MAITBEWS

CC:

JIM PATONDENNIS THAtrr

CPT. EVANSJOYCE LEEBERG

nate: 11105/98
He:

PAPER, PENS, PENCILS IN PHONE ROOM

REMINDER
PER DEPARTMENT OF CORRECTIONS GUIDELINES, W.M.G.
EMPLOYEES ARE NOT ALLOWED TO BRING ANY WRmNG
INSTRUMENTS (pENS, PENCaS, ETC) OR ANY PAPERWORK
FROM OUTSIDE OF THE PHONE ROOM. NO PERSONAL
PROPERlY ALLOWED AT WORK.
PAPER INCLUDES MAGAZINES, NEWPAPERS~ CATALOGS, POST
CARDS OR SIMILAR ITEMS.
THE ONLY PAPERWORK ALLOWED AT YOUR WORK AREA ISTBAT
ISSUED BY WASBlNGTON MARKETING GROUP. FAll..URE TO FOLLOW
THESE GUIDELINES WILL RESULT IN IMMEEDIATE TERMINAnON WITH

NO QUESTIONS ASKED.

IF YOU DO NOT COMPLETELY

UNDERSTAND THE RULES THAT WE MUST FOLLOW RELATED TO PENS,
PENCILS AND PAPERWORK. ASK!!!!!

• Page 1

00000022

Exhibit 7

W/YtC) .

STATE Of WASHINGTON

DEPARTMENT OF COR~ECTIONS
P.O.

,J"0' • Olymp'd. Wd$hinsron 98SlJ,J·" 0' .
13601 7S3·25cJO • F.U' 3601 66,J·,JOS6

BOJ4

August 14,1998

The Honorable Ida Ballasiotes
Washington ~tate Representative
Post Office Box 71 4
Mercer Island, Was~ington 98040
Dear Representative Ballasiotes:
Thank you for your time during our recent conference call regarding the
Washington Marketing Group. I understand your concerns and decision on
this issue.
Mr. Patton has made a commitment to transfer the refinancing telemarketing
program currently operating at the Washington State Penitentiary to his
civilian call center outside of the Department's operations. Mr. Patton's
commitment is to transition the operation systematically between now and
January of 1999. He will be looking at replacing this business with a
suitable telemarketing activity.
I will keep you advised as to the progress he is making.
Siner

Jose h D. Lehman
Secretary
JDL:clh
cc:
Patria Robinson-Martin, Assistant to the Secretary, Legislative
and Constituent Affairs
Howard E. Yarbrough, Program Administrator, Correctional Industries
Cathy Carlson, Class I Manager, Correctional Industries

-

\,.1

, IldP",

00000023

Exhibit 7

STATE OF WASHINGTON

DEPARTMENT OF CORRECTIONS
CORRECTIONAL INDUSTRIES
P.O. 80X 41115 • OL Y,\"PIA. Washington 98504 • (360) 753-5703

July 28, 1998

Jim Paton, President
Washington Marketing Group
Post Office Box 547
Monroe, Washington 98272
Dear Mr. Paton:
This letter is to confirm the meeting on August 5, 1998 at 9:00 AM. The meeting will be
held in Secretary Joseph- Lehman's office on the 6111 floor of the Capitol Center Building.
Directions are enclosed. Other attendanfs are as follows:
Joseph Lehman, Department of Corrections Secretary;
Ida Ballasiotes, Member, House of Representatives;
Howard Yarbrough, Correctional Industries Program Administrator;
Cathy Carfson, Class I Industries Program Manager.
If you have any questions, please give Cathy Carlson a call at (360) 586-7552.
Thank you.
Sincerely,

~.~'-'t:
Michelle Leedy, Class I Industries Secretary
Enclosure
cc:
Howard Yarbrough, Correctional Industries Program Administrator
eitlthyCarlsor1, Class I Industries Program Manager
G:IPOLEX\CATHY\ClJ\SS 1\WMG1C80598 meeting canfilmalion.dOC

00000 024

Exhibit 7

til

DEPARTMENT
OF
CORRECTIONS

POLICY

PCUcYNUMBS

280.925

OF~=NceR ACCSSS TO ELE~ONIC DATA

EFFECTIVE DATE:

Pa~e

t of 2

December 31, 1996

SUPERSESSION:

None.
AUTHORITY:

General authority of the Secretary of Correc::ions to manage and direct the Department. RCW
72.09.050.

.

PURPOSE:

To establish guidelines f.or the access of electrenic data by offenders..
APPLICABILITY:

Department-wide.
DEFINITIONS:

Electronic Data - Data stored electronically by a computer or data that is accessible by a computer.
Intonnation Technology System -Indudes LAN. WAN. or stand aJone computer as defined below.

local Area NetworK (LAN) - A data transmission facility connecting computers and other
communicating devices over a short distance (typicaJly within a building or campus) under some form
of standard control.
Administrative LAN - A LAN used to support genera! office and facility operational applications.
Correc:ionallndustries LAN - A LAN used to support operations of correctional industries operations.
Educational LAN • A LAN designed to support the Departmenfs educational programs for offenders.
It includes o,:,-Une testing of offenders and provides on-line instruetfon.
.

t·..

-.

Offender - Those persons committed to the custody/supervision of the Department and offenders
. transferred from other states or the ladera! govemment.
i

Stand Along Computer· Any computer ncit physicaUy or logically connected to any other computer•

..."".

System Administrator - A person resPonsible for administering/controlling the locaJ area network. by
assigning logon ids. establishing logical baniers, etc.
Wide Area NetworK - A data transmission facirlty connecting geographicaIty dispersed (typically across
the state. nation, or wortd) computers and peripheraJ devices under some form of standard contrel.
Physically separate tANs are often logically linked through a WAN to aJlow transparent access to
remote information (i.e•• OBTS. AFRS. rTAS. EMS).
_
POLICY:

L

Offenders using infonnation technology systems shall not h~ve direct access. either physically
or 10gicaHy, to information technology systems that WIll allow access to any outside or non-local.
electronic media. such as, but not limited to. mainframe applfcatio·ns. Internet. electronic bulletin
boards. E-MaU. or on-ii.ne services•

.- .

. Access will be granted to locaJ information technology systems as outlin.!d below.

00000025

Exhibit 7
sl

,3Wi

mt.

.t.¥.C":;IQ

W;J!(4Pi.&iJ..&\&5..Ji.&QQ,3(W"'$,UW:

..... diS.d"Q,MJ(

... tAJJM.t.t.,J.£.«.w"",#:X!(

.... mn.4X®WhMe.A&Qw<&t

.IX.. " t\.- C.t4&SMC.·..

G

OEPARTMENT
OF

CORRECTIONS

POLICY

POUCY NUMBEA

280.925

lUCIE

Page 2012

OFFENDER ACCESS TO EL!CTRONIC DATA .
A.

Offenders may have. upon local superviSory approvat. access to local information
technology systems for the purpose of perfonning their assigned wone dudes or
education functions.

B.

If the locaJ information technology system is cannected logically or physicaJly to the
U\NIWAN. access rights to those applications available on the LANlWAN will be restricted
by the system administrater for any offender having direct access to the local information
technology system.

C.

ArJy site where offenders are granted' access must have in place appropriate physical and
logical security protocols. such as password protection, keyboard locks, or other physical
or logical barriers that are stJictIy enforced.

O.

Offenders will wane only on designated worXstations that will be physically and 10gic:alJy
restricted from any outside applications referenced in I. above

REVIEW:

The Policy Coordination C"mmittee shafl coordinate the review of Department poliaes at least every
two years and update as needed.
.
REFERENCES:

DOC Policy 801.001.
ATTACHMENTS:

None.

(

~~uk

Chase Riveland. Secretary ..

.-

. .:

.. '. •"-f\ .: ...., '~M nOl - .
'.

~'~.

ftI~

Date'

00000026
Exhibit 7

1

WASHINGTON

STATE REFORMATORY

P.O. BOX 777
MONROE, WA
'1272
(310) 794.2101

FACSIMILE TRANSMITTAL SHEET

.

FReM:

TO:

cathy Car1sen

Kenneth DuCharme, Superintendent
DATe:

COMPANY:

Carrectfonallndustrfes

Febl'\Jary 12, 1998
ToTAL NC. C' PAGEl INCLUDING covER:

FAXNUMlIR:

1.

(380) 753-0219

SENDER'S PHoNe NUMBeR:

(380) 794-2801
SENDER'S FAX NUM!I~R:

WASHINGTON MARKETING GROUP
[J URGENT

[:J FOR REVIEW

NOTES/COMMENTS:

(380) 794-2680

[:J PLEASE COMMENT

C PLEASE REPLY

!K:,--L

G2-.

[:J PLEASE RECYCLE

eX ./C;

tfA./~

P.o. BOX 771, MONROE, WA •• 272.0777

t"d

00000027

Exhibit 7

F'ab • 11 S8 Q3: QSp

Pa~an

J

4

-355-0812

p,.l

RECEIVED
FEB

WuhinatGn Marbdal Graap, IDe.

1,

1991
,

P.O. Box 541

.:"

Nmne. WA.. 91271

Fax Cover Sheet
DAT!:

Flbr\lary 11. 1"8

TIME:

TO:

Mike \NIIiama

PHONI!:

FROM:

D.O.C.

PAX:

JIm PltDn

PMON!:

Wlahlngton Mlrl.tln;

PAX:

RE:

Paper trail forWMG retireinent plan

cc:

Captain Evans

......g..

Numller of paps including cowr 1IIMt: 14

3:D2 P.M

(380) 784-2808
(38a) 7t4-28IC

.

1-1C0.411 ~eat

1-3ee..7~821

,

Plase .6ftd ltUChed. in obrollOlosi,al on;Sor, the c:orraponclence I.bact with D.O.C. prior
to CODtn"butfD; to thetltitemem pIan we dilCUlHd y....day.
11/16/94: Com:spondence tram Lorraine Hen1Wl co Daty Deniae; NO RBSPONSB.
11/30/94: Correspcmdenc:C ft'om LomiDe Herman to Shannon Morpn. NO RESPONSE.
6112195: Cornspoadeace !'am Naomi Lieurance to lim PatoIL PIRST 1U!SPONSB TO
DAm.
.'
6/1S19S: Rapcmae to 6/12195 above from Tam Paton to Tan W"dL
10/1319': It.elpOnIC ~m Jill Win to my c:onwspoculcnc:e above. Diltn'lNtians to the .
plan were made in August 1995 u outlined (Note date of nil Willa rcspol1se).1tead this
. responsec1oaelyl
2/5196:
Pile 2 cfib. minutes to tho quarterly compUlI1cc meetiDg: Jim Paton, Mike
Williau attlftdiq. ItIIIl D. ,.- puqraph dJleunca the pip.
5/30/97: Memo &om lafteen Wadsworth reptdids redl'ement pJazm: Pase 2
IpecificaJly state. that"... lNMATES MUST NOT. SOLBI.YBY T.BEI'R STATUS AS
OFFENDERS, HAW BEENDEPlUVED OF nmlUGHT TO PAllTICJPATB IN
BBNEFlTS MADS AVAILABLE BY fEDE.A&AL Ok STAn! GOVERNMENT TO
OTHEB.INDIVIDU~S

ON THE BASIS OF THIBlUlBMPLOYMBNT..."

OK Mike. now tell me I did not make & goad f:Uth drart to get an answer aut ofD.O.C.
ThrcusD out all allhis commUDicattan. 1atil1 did not gelID au.ver. Even tbough I tried
for 10 montha.
' .

00000028

Exhibit 7

.Fe~.11 ~8

C3aOBp

SITE MGR

~ROM

Pa~o"

-355-0812

OS,ll~/SS

~SR

15:41

p.s

Pol

FAX

D.w:

06I12JH

t

N&II'Il!Icl at..... isJudlq eovar sbClllt:

.",.:

Ihn PIIcon. WA )61a. 0"9'

P!!a!e:

3tg-"ifl2J ..

raJ( phppo:

FUp!laae:.

cc:

U~

J'"

.rt11Wifl

,0

Uts.-

rm

C

Par 1GUl rewillW

ItIplY ,.,AP

0

PlAID Cil;IftIaJent

VtUh JIU ....dins)'GW' 8hapliftcdZIDJII.a1ce ~ 8INI~)'OII ave J'G1 imo pJam. J lateS her UIa1
.
1m . . . . . . if)W w=ld Idadly f'AdlIM to II« (H04~.oaJ')'" iIdbnaItltn on tbiI A&nd. 11Ikl.bDr U\a)'OQf UI1ds
an uOll-.IIIe
find,
to 11II tbl,.",.,., Oeanl', cd!.- kftaw of'bDdL7GUf~IQ"s
1tt...&laN.lIeS
',
JUI
w.at Ia 'JIIFIdI waAC
"III. lb. aaly -Ontl eo ... -.bl DGDe af'UI
PI ttdA snbI_,..1II ~

Jim:

AIIpI\ 1 "1M cDcWlII when ftaadI waul41:1141pDsi1ld iatD Ute nwI.

)'GU'"

,.au nn- )'OUt

If,. !law..,. ~ ......... DfjUL,.,..1A cha& with hit, )'GIl CIA
UliIlUaJ.
lAt',IChaduIe. time IIIl:X& week CJYI\D "-22).

?a 0

-

TSJ -62.{~

00000029

Exhibit 7
gOd

!..OT.~

J.df1S

Pol

~M WdSt:20

86.

aT

83.:1

Pe~

...

•
11 S8 03:QSp

."

p_a

-3SS-oiu2

Washington Marketing Group. Inc.
PO BaxS41
Manro-. WI\. 982.7%

Fax Cover Sheet
.

TIM!!

DATE: . . June 15. ·1995

TO:
PRCM:

RE:

Jill Will
D,O.e.

3:52PM

PHONE:
F~

Jim PausnWMG'

PHaNE:
-FAX:

(310)-713..0219
800-488-4808

3SO-7;4a429

WMa retirement plan

Number of pages IncludiftG cover
.hHt
.
. 4

Moslage:
PluIa :&nci attadlci4 iI 2 pas-I..- from ~ KQOUDWlt that autIiDu qu,Ufigation
l'I'luinnumtl for eJiaibIe employe. far the SIP-IRA.

_"la

Pase 4 oU1Unu 1hose
1'Ilma&c: emproyeel (Nota, 2 afthae: inznatea hava ainco boon
OOUR ancS WMG MJl ~ their ~ dir=dy iato jD acocnmt in tbcit ZL1ZD8I).

Cheeks will be made out by WMG cfiRcdy iDto Jl:;OUDII ~ in c:ach imnatel name:. I
think 2 signatut=l can be placed on ach ac~unt~ any direct withdrawals by m

Imn'tc.

.

00000030

Exhibit 7
I · _1

Feb

i.

~1

·

S8 03a07p

..

Me(ang, HOpps .. 'Company

~

-388-0812

".e.

CER:flF1EO PUBI.IC ACCOUNTANTS

June 2. 1.995

Mr. Jim Paten
Washingt:.cn Marketing Grcup, Inc.
P.O. Box 547

Monroe, WA

'

'8~72

Dear Jim:
Thank you tor your recent:. fax. The charges shewn on Invoice
inclu~e oDly app~x~ma~ely $60.00 for the SSP-IRA discussians
which would ce included as a Washington Marke~ing Group, Inc. expense.

'9973

Instead of amending our invoice., may I BUgg•• t I of~set any fihal
~D40 preparation fee with t~i. $'0.00 and =111 it to the
corporation? t project thac the final Form 10.0 bill w111 noe be mueh
lIlora than this amount, making the preparation af the 19" return
Porm

comparaple to the

~9'3 re~uZ'ft.

In Qrder to calculate the SIP-IRA £0% 1994, and in order tc
m!nimize your accouneing costs, we would appreciate the following
information:

~

First of all, a SEi'- IRA fer 1"4 ",oulcl require a 2 O\1t of 5 year
rule 80 thae you could participate! You will need to leok a~ the
emplayes8 who ~rke= for Washingten Ma:kec1ng G~up, In~. in 1992,
1993 and 1994 to make this caleula~1cn.
1.

tJt.e1.!1
'

We will need a copy ot all the Porm W-.'8 for 1"2 anc1 1993 and

2.

1993.

(~e

have your 1994 files.)

3. A typed written summazoy by employee, alphabet.ic:al ~ last. name,
showing che employee name, and the 9%088 wages e~ed each year. We
.u99.e~ a columnar format fer 8xa~le:

Kame of employee

1992 gross

wages

1"3 groBs

----------.----_ .. -_.--.--_ .. __ .. -----.--_ ..
Paton, Jim

wages

1.9'4 gro8s

wages

_-_._~._-----_._----------

s

$

Eligible particpants are thoae who havs earned aeleast the
following during these years:

4.

$ 3'74
$ 38S'
$ 396

1992
1"3

1'94

00000031
Exhibit 7
,

,

1900 112th A".nue N.E•• S.UevlJe, WA

c·""

'8004. (206) 454-9950 • FAX (208) 454-9957
lcf1S ~ Wo'9t:20

86. 2t fD..:f

F.b.~l

.

98 03:07p

,

•

-355-0812

p.8

M:-. Jim Pat:cft

Washingeon Marketing Group, Inc.
Page Two

.:une

2, 1996

Those people mee~ing the wage requirement for ~"3 an4 1993 will
be eligible fer 1'94. We then take tneir 1994'gro88 wages and
muleiply it ay a predetermined percentage, Anyone meeting the wage
requi~ement. fer 1"3 ana 1'94, O~ 1"2 and 1994 will be e11gible for a
contribution for 1995.

4.

.

Cur procedures would consist of a quick verification of wage

amount.s to the Form W- 2' S, (apprcximat.ely 1.0hr). We would then
calculate the eligible wages and use decermined percentage. If you
a~e maximizing your contribution, you mus~ eontriD~ce 15' for every
ether eligible employee.

s. Once the cont~ibutiQns are determined, W8 can let you know the tax
savings. In addition, you need to .e~,up a plan, and we can 'assist in
you: prepara~ion of the required documents. (Approximately 4. Obrs 0%
less)
Please lee us know if you have any queseiona. You may need to
pick up your 1996 records to complece the 1'9~ column of you~
8pr8.daheet. Let us know when you wiah eo begin this calculation.
The .ooner the employee information 18 ccmplec.a, cbe soons: you may
make scme tax ~roj.ctions for the August: 15th deadlina. Please feel
free to call if you have any questions.
Sincerely,
MELAoNG, HOPPS II COMPANY,' p. c.

BY'~·7/1.6Jf;,U. Mez-i Melang qilbert,

e. P . A.

, mmg/1'BM

1IMG, '~8'730/12

00000032

Exhibit 7
c:.'.J

•

Feb ·11 88 032D7p

I

P.~an

W~GTON'MARIarINGGROUP,

J-3SS-CS12

p.s

'.

INC.

1"4 PROFIT SHARING. CALctnA.nONs.
lU IGtBLE BMI'LOyPS Q4PL0YiD IN 19n 129], 1994i.

GROSS WAGES
----"

"-.

-

~

--~

-

_

__

J

•

.12ft

~

illfa

2200.15

9629.38

6596.15

1197.59

361?18
6639.23
4316.11
!447.10

919.43
4692.95
573.09

'''.42
137.92

1~44.84

.1481.2'2.

S:

191 34

-

-

---. --'..:"

~~"~-l.

..

.

-~.

CONTRIBUTION

1331.06

703.94
15.96
199.66

NQ

9.78
1916.11

%482.64'

635.10

'535.12

6563.72

984.56

1795:59

.5"4.80

6024.13

203·n

Tal Contributton;

00000033

Exhibit 7
...

- -- -- --

-,

.

"

'Feb

. '~1 S8 03:C8p
,

•

CHASE RIYELAND
S.crctary

p.I0

-355-0812

IANEEN WADSWORTH
Dlreetar

STAT! OF WASHINGTON

DEPARTMENT Of CORRECTIONS

•
DI'IISION or CORRECTIONAL INDUSTRia
P.O. 80"47175 • Olympia. W.,hi".,oft985D4.7115 • (360J753-5703

Oe:tober 13, tgg!

t.

Jamol :Pdon
Praident
,
Wuh1qtoll Marklihll Group, Izsa.

P. O. Box 541
Monro., Waabiftstol1 98272
Dear Mt: patC:Jn:
I IPOkc with aur AIai,tam AUomey General, Tom YCND& rwganIiDs tha issue of401X pJiUIS tbr
your iDm&te employeea. The tax 1&wl sovemiDa the retiremmt plana an: quito complex lUU1 thu..

cut olthe area olexpertiJe atthe Attcmay Gancr&l9, OfIiCCl.

.

Mr. YOWlS NgpstI tha~ you ~ advice ttam your tax advisor or attorDay in this muter. Ityou'
have any questioas. please ~ me at 3~586-5264..

JW:cl~

00000034

Exhibit 7
•

.,.,...

, ....... I.I...JIT.~

OC

?T

cr:IJ

J

Paton

...

-355-0812

Washingtan Marketing Group. Inc.
Quarterly CampUance Meeting

Febru.ry 5, 199B

PagEi2

Mr. Williams discussed the Illue at Mr. PalOn bringing In donuts for hI. weekend work
craw. Mr. Williams agreed that It was a dennllelncentive for the workers. but stated
that bringing in food items for the work crew pasi. a significant security problem and is
net permissible,
.

n.

OTHER

Mr. Williams Informed Iveryen. of the new neld Instrudlen update. res;srdln; the hiring
and t1l1ng process for Class J awnera. The policy will now allow fer a pre-sere In of .
applicationa procels in the evant of numerous lipp"~tions receJved for a pOlitlon. The
proc.ess for terminating an employee will now only Involve the Class I company,
Employess wishing to appeal the firing will now use outside sources only, as any
employee on the outsIde would do. The Cepartment of Corrections win net be Involved
In the appeal precess.
)

(.~

h~

Mr. Paton mentioned
wtllagaln tie contributing to the profit sharing/retirement pian
_this year fer his offender employses.
'

. Ms. Canson mentioned the January 19. 1998 memo frQm Janeen Wadsworth regarding
FIrst AId/CPR tralnln; for inmate worker.. Mr. P8tcn received the memo and stated he
Will nave each af his employ,es .isn the Inmate Werlesr Universal Precautions
.
statement.and kGep a siGned copies on fl18.

wu

Mr. Paton asked Mr. WilUams whether the Institution
goinG to remain medium .
custcdy ~r dose custady. Mr. William responded by saying the.institution may have
close custody. but win malntaJn medium custody offenders. Mr. Paten is looking for a
better paot,of emplcyeeslnd uprasaed I'll. desire to InCr8858 his employee numbers
,to approximately 30 by the end of the year by changing hI, area te acccmmCldate about

20 warkel'l dUring ':he clay.

00000035

Exhibit 7

..... ,

··-t· ---r----.

..,

'. Cal Auck.rman, Cal', Custom Uphollte;ry

Steve Crounse, Custom Camera Deshan, Ino.

Cheryl Ray, ~rth Ray
Chris Mlchaelscn. Elliott Bay Metal Fabricating. Inc.

Chuck Egner, Exmar1< Corporation
Joan Lobdell, Inside Out, Inc. :

.

Ken Piel. MicrcJBt
Bert Atwater, Omega Pacific, Inc,
Gary Mulhair, Pioneer Industries
John Haus"'ney, 'Redwood Outdoors

Jim Piton, Washington Marketing Group, Inc.
Jim Grubb, Windmill Ranch

.

.

FROM:
RE:

,

~aneen M. Wadsworth, Director

'I' CiviSIon ~ CorreCtlonallndultrie.
401 (k) Benefits to Offender Works... ,

Recenllnqulries into the ability to offer offencer wor1C8rs 401 (k} benefits have prompted
the Cepartment of Ccrrectic:ms to reeeive clarification rram the United States Department
of JUltlGe. Below. the "l'anse from Thomal Albrlll;ht, Chl.f. Corrections Branch,

Bureau of Justice Aallll.blnce, for ule II guldanCi en this 'slue.
"I am writing in reaponS8 to. YClur recent inquIres regarding the Prison Industries
Enhancement Certification Program (pteCp). SpeclflcaUy, you have queltioned
Whether Title 18 U.S.C $1781 requires the provisIon of the lame benefits to Plecp
Inmates as are prOvided by the private sector partner to its private leotar

=

employeea••••

o ,..,s'84 ,.".,
CT"..J

00000036

Exhibit 7

~

.'

.

,Feb',.11 88 03: OSp

oJ

"'a1:.o"

,
If

-35&-0812

p. 13

-'

401(k) Response
May 30, 1887

Page 2

,
,

, .•. PI.sa. be adVIsed that Tilt. 18 U.S.C. 51761 0 specifically states that
PIECP Inm.te~ mult not,' Isofely by their staWI 81 offendeta, [have} been deprived of
the nght to partlci~ In benefit8 mads aV8l1abl. by Federal or State Govemment to
other Indlvlduall ~n the bail of thllir omployment ••• ' In this Ngard, the statute
.xprel.ry~qLlires the provision of werkera' compensation to PIECP Inmates. Other

benefit. typIcally .8c!JrBd by govemment Indud. lodat security benafits and
unemployment JnlUraftce.

nil bsn,ftts requfrem1nt deS! Dot 9RrnP" XSut ROy!t! smer etecp partner to
proYid. 401ls"Pf,n benlfltl tq fSs PlliC;P !nrng wqlilCl; ,uctLbinefl19 ,re'npt
'by .tat. or fad'ra' govemment fer Rrlvata lectar M'rkeCl . , I ,. (EmphaaJ. added.) .

'''cu.

cc:

JClej:lh Lahman. Secretary. Department of Correction. '
Jill Will, Policy & &lemal RelatiClna Manacer
'Ralph Lovelace, BUlin••• ReCNitar

Cathy Carlson, Cllss I Coordinator

00000037

.'

Exhibit 7

AMENDMENT NO.3 TO CONTRACT AGREEMENT NO. CDCI2761

THIS AMENDMENT is made by the state of Washington, Department of
Corrections, hereinafter referred to as UDepartment' or uDOC" and Washington
Marketing Group. Inc., hereinafter referred to as ·Contractor" for the purpose of
amending Contract Agreement No. CDCI2761, heretofore entered into between
DOC and Contractor.
Section VI, Period of Performance, is amended in part to read: "The period of
performance of this Contract shall commence on JUly 1,1993 and terminate on
(June aD, 1997) June 30. 2002, unless terminated sooner as provided herein."
Section VIII, Hold Harmless, is amended to add the following as paragraph three:
"The Contractor understands that the Washington State Reformatory may change
from a 'medium custody' institution to a 'close custody' institution and that
Contractor staffing may be subject to change due to the 'close custodv' status.
The Contractor agrees to protect. defend. save. and hold harmless the state of
Washington. DOC. or any employees or agents thereof. for any liability or claims
for damage. including consequential damages. related to the change of custody
status of the institution."
Section III.E., Materials, Equipment, and Storage, is amended in part to add the
following as the last sentence: "Contractor must follow all institution policies and
procedures for the daily use and storage of eqUipment."
Paragraph 5 of Section IX, Notice, is amended in part to read: UAny change in
corporate status or corporate entity shall be considered an assignment under the
Non-assignability clause, General Terms and Conditions, Exhibit IIA", and as
such requires the written authorization of the Department In the event an
assignment is approved by the Department. the new owners of record will be
required to go through the Departmenfs contract approval process."
Additions to the text of this Contract Agreement are shown by underline and
deletions by (stril<eout). All other terms and conditions of the Agreement shall
remain in full force and effect.
.

State of Washington
Department of Corrections

CDCI276 t (3)

Page t of 2

00000038

Exhibit 7

IN WITNESS WHEREOF. the parties have affixed their signatures in execution
thereof.
WASHINGTON MARKETING
GROUP. INC.

STATE OF WASHINGTON
DEPARTMENT OF CORRECTIONS

SIGNED Gladg-J
Date

Gary Banning. Administrator
Date
'Office of Contracts & Regulations

THIS AMENDMENT' HAS BEEN APPROVED AS TO FORM ONLY
BY THE OFFICE OF THE ATTORNEY GENERAL.

State of Washington
Department of Corrections

COCl2761 (3)

Page 2 of2

00000039

Exhibit 7

AMENDMENT NO.2 TO CONTRACT AGREEMENT NO. CDCr2761
THIS AMENDMENT is made by the state of Washington, Department of
Corrections, hereinafter referred to as II DOC", and Washington Marketing Group,
Inc., hereinafter referred to as "Contracto~, for the purpose of amending that
document entitled Contract Agreement, bearing Contract No. CDC12761,
. heretofore entered into between DOC and Contractor.
THEREFORE, the parties hereto agree to the changes made herein as follows:
1.

Section VI, PERIOD OF PERFORMANCE is amended as follows:
The period of performance of this Contract shall commence on July 1,
«1098))1995 and terminate on June 30, «109SH 1997, unless sooner
terminated as provided herein.

Additions to the text of this Agreement are shown by underline, deletions by
( (s t ri IE eo u t».
All other terms and conditions of this Agreement shall remain in full force and
effect.
IN WITNESS WHEREOF, the parties have affixed their signatures in execution
thereof.
STATE OF WASHINGTON
DEPARTMENT OF CORRECTIONS

CONTRACTOR

~/5bf

--_·_------~/'

Date

S ~~~~I:r::D
~il j ~ i'iaI.

_~

...;;.?'+j;=:;l..N9S-

Gary Banning, Administrator
Date
Office of Contracts & Regulations

THIS AMENDMENT HAS BEEN APPROVED AS TO
FORM BY lHE OFACE OF THE ATTORNEY GENERAL

State of WaShington
Department of Corrections

COCI2761

Page 1 of 1

00000040
Exhibit 7

IN WITNESS WHEREOF. the parties have affixed their signatures in execution
thereof.
WASHINGTON MARKETING
GROUP, INC.

STATE OF WASHINGTON .
DEPARTMENT OF CORRECTIONS

THIS AMENDMENT HAS BEEN APPROVED AS TO FORM ONLY
BY THE OFACE OF. THE ATTORNEY GENERAL.

Slate of Washington
Department of Corrections

.COC12761 (3)

. Page 2 of2

00000041

Exhibit 7

AMENDMENT NO.1 TO CONTRACT AGREEMENT NO. CDCI2761

THIS AMENDMENT is made by the state of Washington, Department of
Corrections, hereinafter referred to as ·DOC·, and Washington Marketing
Group, Inc., hereinafter referred to as ·Contractor-, for the purpose of
amending that document entitled Contract Agreement, bearing Contract No.
CDC12761, heretofore entered into between DOC and Contractor.
It is mutually agreed that the above-referenced Agreement is hereby
amended as set forth below:

1.

SECTION VI, PERIOD OF PERFORMANCE, is amended as follows:
The period of performance of this Contract shall commence on July
1, «(1992)) 1993, and terminate on June 30, «(1 ggan 1995. unless
sooner terminated as provided herein.
This Contract may be extended for like periods or portions thereof
by mutual consent of the parties. However, this Contract carries no
expressed or implied right of extension after the initial, or
extended, contract period(s).

Additions to the text of this Agreement are shown by underline, deletions
.by ((stril<eo ut)).
All other terms and conditions of this Agreement shall remain in full
fo rce and' effect.

State of Washington
Department of Corrections

CDCI2761

Page 1 of 2

00000042

Exhibit 7

IN WITNESS WHEREOF, the parties have affixed their signatures in
execution thereof.

STATE OF WASHINGTON

CONTRACTOR

DEPARTIMENTOFCORREC~ONS

Date

Chase Riveland
Secretary

Date

THIS AGREEMENT HAS BEEN APPROVED
AS TO FORM BY THE OFACE OF THE
ATTORNEY GENERAL

Slate of Washington
Department of Corrections

COCI2761

Page 2 of 2

00000043

Exhibit 7

IN WITNESS WHEREOF, the parties have affixed their signatures in
execution thereof.
CONTRACTOR

STATE OF WASHINGTON
DEP
OF CORRECTIONS

Date

Chase Riveland
Secretary

Date

THIS AGREEMENT HAS BEEN APPROVED
AS TO FORM BY THE OFFICE OF THE
ATTORNEY GENERAL

State of Washington
Department of Corrections

CDCI2761

Page 2 of 2

00000044

Exhibit 7

CONTRACT AGREEMENT
THIS CONTRACT is entered into between the State of Washington. Department of
Corrections, hereinafter referred to as "Department" or "DOC", and Washington.
Marketing Group, P.O. Box 7179, Bellevue, Washington 98008, hereinafter referred to
as "Contractor", for the purPose of providing work training and/or vocational training for
offenders of the Washington State Reformatory (WSA), hereinafter referred to as
"Institution" or "WSR". and is entered into pursuant to Section 72.09.100 RCW "Free
Venture Industries".
I.

GENERAL
Contractor shall operate Class I telemarketing and/or data entry service in an
area 400 square· feet located on the classification floor at "WSR" (hereinafter .
referred to as "direct marketing room") and in connection therewith shall employ
offenders of the Institution, all in accordance with the terms contained herein\
By agreement of the parties, the square footage of the direct marketing room
may be increased or decreased depending on the needs of the Department and
the Contractor and the number of offenders employed.

II.

CONDITIONS OF OCCUPANCY

A

General: Nothing herein shall be construed as creating either a rental
agreement or a lease. and the Contractor shall not have the right to
sublet, sublease, assign, transfer, or enter into any other agreement
regarding the occupancy herein granted. The occupancy of the industry
area shall at aU times be consistent with the terms of this Agreement
regarding the work authorized and hours.
Contractor and Superintendent, or Superintendent's designee. shall
meet quarterty to review contract performance. The parties also agree to
nonscheduled meetings within seven (7) days of receipt of a written
request of either party.

B.

premises to be Occuoied: The Department shall provide approximately
400 square feet located on the classification floor at WSR.
Contractor acknowledges the Direct Marketing Room is in good and
usable condition, specifically that it meets Contractor's electrical,

State of Washington
Department of Corrections

CDCI2761

Page 1 of 12

0000 0045

Exhibit 7

plumbing and ventilation requirements. and assumes occupancy of same
as is.
In the event that the Department requires Contractor tc vacate the direct
marketing room in order to renovate the area. the Department shall
provide Contractor a suitable work site as mutually agreed by the
Department and the contractor. The. Department shall bear the expense
of providing a.suitable work site. Contractor and the Department shall
share the cost of moving Contractor's operations. including telephone
line installation.
C.

Maintenance: The Contractor shall keep the Direct Marketing Room
clean, neat and orderly, and shall report any damage to the building
structure, interior fixtures, or unsafe conditions to the Institution
Superintendent. The Department shall be responsible for the structural
maintenance of the building in which the Direct Marketing Room is
located.

D.

Utilities: The Department shall provide to the Contractor water, trash
removal, electricity and steam directly related to the Contractor's use in
the Direct Marketing Room. The Contractor shall reimburse the
Department for utilities in accordance with the Utilities Reimbursement
Schedule Type 8 attached hereto as Exhibit B.
The Contractor may, with the prior approval of the Institution
Superintendent or designee, install a telephone system in the Direct
Marketing Room, which must be secured at all times in accordance with
the Institution guidelines. The cost of installing and maintaining such a
system will be at the Contractor's sole expense. The Department will be
responsible for prOViding an institutional telephone line.

E.

Materials. Equipment and Storage: The Contractor shall provide all raw
materials, machinery, and eqUipment necessary to produce the products
contemplated by the Agreement. The Contractor shall be responsible for
the maintenance and safe condition of such machinery and equipment
at all times. Should the Contractor wish to use any existing eqUipment
owned by the Department, said equipment and terms for use thereof
shall be by written approval of the Superintendent or designee. Title to
all equipment shall at all times remain in the respective owners.
Contractor shall have the right to remove Contractor owned equipment at

State of Washington
Department of Corrections

CDCI2761

Page 2 of 12

00000046

Exhibit 7

the convenience of the Contractor or upon termination of the agreement.
Any equipment owned by the Contractor but not removed within ten days
after termination of this agreement shall become the property of the
Department.
F.

Liability: All raw materials, personal property, inventory, machinery,
equipment, improvements and/or fixtures or other property of any kind or
description whatsoever, installed or brought into the industry area by the
Contractor or the Contractor's employees or agents, shall be at the
Contractor's sole risk and neither the state of Washington, the
Department nor any employees or agents thereof, shall be liable for any
damage or loss suffered by the business or occupation of the Contractor
arising from any acts or occurrence whatsoever, including, but not
limited to, fire, malicious mischief, theft, and water damage.

G.

Alterations; The Contractor shall not make, or cause to be made, any
alterations or improvements whatsoever to the Direct Marketing Room
without the prior written approval of the Institution Superintendent or
designee and the Department's Capital Program Facilities' Administrator..
Such approval shall not unreasonably be withheld. The cost of such
alterations or improvements shall be mutually negotiated between the
Superintendent or designee and the Contractor. No third party will be
hired to make such alterations or improvements until the Superintendent
or designee and the Capital Program Facilities' Administrator have
approved such hiring, which approval shall not be unreasonably
withheld. Any alterations or improvements niade by the Contractor to the
Direct Marketing Room or any equipment or. fixtures perman.ently
installed in or affixed to the industry area shall become the property of the
Department at the termination of this Contract Agreement except for any
shelving, brackets, equipment bolted to floor and compressed air.
Contractor shall repair any damage caused by the removal of such
materials~

H.

Security: The Department shall provide an orientation session, including
written documentation, to the Contractor and the Contractor's employees
regarding WSR security procedures. Upon completion of the security
orientation session, Contractor shall acknowledge receipt of
documentation of such procedures and agree in writing. to comply with all
such procedures. Failure to comply with WSR security procedures is
grounds for termination of this Contract Agr.eement.

Slate of Washington
Department of Corrections

CDCI2761

Page 3 of 12

00000047

Exhibit 7

The Contractor understands that its deliveries and employees are sUbject
to search before entering or leaving WSR. The Department shall
maintain security during the course of the Contractor's workday, at the
work site, on a walk through basis and will provide other custody support
as determined by the Institution Superintendent or designee.

III.

J.

peliveries and Pick-uos; All delivery of goods and materials to and
pick-up of goods and products of the Contractor shall be conducted in
accordance with procedures approved by the Superintendent or
designee, which approval shall not be unreasonably withheld and shall
take into account Contractor's ~equirements.

J.

Surrender of Premises: At the termination of this Contract Agreement,
the Contractor will surrender the Direct Marketing Room and return same
to the Department in the same condition it was received from the
Department, normal wear and tear excepted.

CONDITIONS OF EMPLOYMENT OF OFFENDERS

A.

General: The Department shall provide referrals through the unit team
process to the Contractor who in turn shall interview and hire. The
Contractor shall provide written requests for referrals to the
Superintendent or designee when Contractor requires applicants for
employment. The Contractor will use the Department's job descriptions,
as approved for Contractor's operation by the Division of Correctional
Industries.
The Contractor shall initially employ a minimum of ten (10) offenders, 3.5
hours per day, as Telemarketing Sales Representatives and/or Data
Entry Operators. with the minimum level of employment increasing to
twelve (12) offenders, 4.0 hours per day, at the beginning of the second
contract year. July 1, 1993. The Contractor will be afforded the
necessary hours and days of operations which can be reasonably
prOVided by institutional scheduling.
Offenders will be available for employment from 7:00 am to 4:00 pm.
Monday through Friday, less meal time and offender population counts.
Should the Contractor desire to change these hours. Contractor must
provide written notice to the Superintendent or designee at the earliest
possible time, but not later than seven (7) days in advance.

State of Washington
Department of Corrections

COCI2761

Page 4 of 12

00000048

Exhibit 7

The employment requirements stipulated above shall be measured
according to the following definitions and formulas.
Definitions:
Work Days Per Pay Period: Actual number of work days Monday
through Friday (excepting State holidays) offenders are available for
employment during the pay period. (Varies)
Contract Work Hours: Number of work hours per day offenders are
available for employment per the contrad agreement~

Jt: ..::)

Contract .Target for Offenders Employed: Number of offenders
employed per the contrad agreement. ~ta) i?-

'"

.",

Total Hours Worked: Sum of all hours worked by offender employees
per pay period. as shown on offender payroll.
Target Hours Per Pay Period: Work Days Per Pay Period x Contract
Work Hours x Contract Target for Offenders Employed.
Formula for calculation of minimum employment requirements:
Actual Versus Target Hours:
Total Hours WorkedfTarget Hours Per Pay Period. Must equaJ a fador of
one (1) or greater.
Adjusted Number Employed:
Total Hours WorkedIWork Days Per Pay Period/Contrad Work Hours.
B.

Nondjscdminatjon; In connedion with the Contractor's hiring of offenders,
the Contractor shall adhere to the nondiscrimination provisions of the
General Terms and Conditions, attached hereto as Exhibit A and made a
part hereof. Contractor shall have the authority to hire and fire
.
employees. but in all events Contrador will comply with the
nondiscrimination provisions referred to hereinabove.

Slate of Washington
Department of Corrections

CDCI2761

Page 5 of 12

00000049
Exhibit 7

C.

Qn Site Supervision: The Contractor shall provide an on-site supervisor
at aU times offenders are working in the industry area, and will provide
job supervision and job instruction to all offenders hired hereunder. The
Contractor shall give safety instructions to all offenders working
regarding the Contractor's equipment.
The Contractor shall provide, within two weeks of signature of this
Contract Agreement, the Superintendent, the Division of Correctional
Industries and each offender employee with a copy of the Contractor's
company policies and procedures; and retain in each offender
employee's personnel file a form signed by the offender employee stating
that the policies and procedures have been received and understood.
Each new offender employee shall receive a copy of such policies and
procedures upon their first day of work, and shall sign a'form to be
maintained in their personnel file stating that they have received and
understood said policies and procedures.

D.

Wage Schedule: At a minimum, the Contractor will pay employed
offenders in accordance with the "Offender Job Description and
Announcement" as approved by the Director. Correctional Industries,
Department of Corrections. Nothing herein shall be construed as limiting
the Contractor's right to pay more.
Wage payments shall be made to the Department as trustee for the
individual offender employed and be sent or delivered to the Institution
Business Manager. Such payments shall be made at least monthly on a
date determined and agreed to in writing by the Superintendent or
designee and the Contractor.
The Contractor shall be responsible for all employee taxes and/or
benefits required by the State or Federal Government to be paid and/or
provided.
Contractor agrees to participate in, and abide by any decisions by, the
offender grievance process regarding any wage or employment disputes.

E.

Safety and Insurance: The Contractor shall comply with Washington
Dangerous Waste Regulations and be responsible for the cost of
disposing of any hazardous waste it may generate. The Contractor shall
provide unemployment compensation and industrial insurance for each

Slate of Washington
Department of Corrections

CDCI2761

Page 6 of 12

00000050

Exhibit 7

offender hired hereunder in accordance with state and federal laws. The
Contractor shall comply with Washington Industrial Safety and Health Act
standards and permit inspection of the Direct Marketing Room as
required. The Contractor shall submit to an inspection when required to
verify compliance with these requirements. The Contractor shall comply
with aU applicable Department of Corrections policies, directives and
instructions relating to safety.
F.

Schedule of Work Hours: All work schedules of offenders hired
hereunder shall be established by the Superintendent or designee of
WSR; Provided, however, such offenders will be available from 7:00 am
to 4:00 pm, ' for a minimum of 3.5 hours, less meal time and offender
population counts, each day Monday through Friday. Overtime hours
may be a'rranged with the prior approval of the Superintendent or
designee.

G.

Interstate Commerce: The Contractor shall abide by all local, state and
federal laws and regulations governing the employment of offenders
producing goods for sale in interstate commerce should the Contractor
engage in interstate commerce. Contractor assumes the responsibility of
informing itself of these laws and regulations. Provided, however, that
the Department shall furnish copies of Federal Register Prison Industry
Enhancement Certification Guidelines governing employment of
offenders engaged in interstate commerce.

H.

Default and Remedies: If the Contractor is found to be in default of any
provision(s) of this Contract Agreem'ent, the Department shall promptly
notify the Contractor, in writing, of such default, and shall request a
written response detailing the Contractor's plan to remedy the default.
The Department shall grant Contractor reasonable time to remedy any
default, in any event to be not less than five (5) work days.
Should the Contractor,fail to remedy any defaUlt, the Department may
exercise one or more of the following remedies:
• Close designated industry space to all of Contractor's employees
and/or institution's offenders.
• Restrict industry area access to specific Contractor employees and/or
institution offenders.

State of Washington
Department of Corrections

CDCI2761

Page 7 of 12

00000051
Exhibit 7

- Require mandatory attendance at appropriate training for specified
Contractor's employee(s).
The Contractor and or Contractor's employees will be eligible for training
in the various State-sponsored training courses on a space available
basis. If training is requested by the Contractor, the Contractor will
reimburse the Department for any applicable charge back fees. If the
Department requires the Contractor, or employees, to attend training, the
Department will bear the cost of any applicable charge back fees. Under
all circumstances, the Contractor will bear the cost of any associated
travel, lodging, per diem or overtime incurred.
- Reduce industry space based on Contractor's actual employment level
or operational requirements.
- Correct deficiency and charge back to Contractor.
. Contractor shall receive notice prior to the implementation of any of these
measures.
These measures shall not be exclusive and are in addition to other rights
and remedies provided in law and under this Contract Agreement.
IV.

WORK STOPPAGE; LOCKDOWNS; DOWNTIME

A.

General: Neither the state of Washington nor the Department nor their
employees or agents shall be liable for any damages to Contractor or
any third party growing out of or related to any work stoppage regardless
of the reason therefor.

8.

Lockdowns; In the event of a lockdown, the Superintendent will
immediately advise the Contractor as to the disposition Qf Contractor's
offender employees. If ordered by the Superintendent, Contractor's
offender employees will immediately be returned to their housing units.
In the event of an extended lockdown and with the prior approval of the
Superintendent, Contractor may place a representative in the Direct
Marketing Room. and/or obtain temporary assistance from the community
outside WSR.

State of Washington
Department of Corrections

CDCI2761

Page 8 of 12

00000052

Exhibit 7

C.

V.

Oowntime; The Contractor shall be permitted ten percent (10%) of annual
target work hours for downtime. Contractor agrees to notify the
Superintendent at least 24 hours in advance of any scheduled downtime,
as well as the anticipated length of downtime and a 24 hour notice prior
to work commencing.

TRAINING
The Contractor and its civilian supervisors will participate in a minimum of five
{5} days training at WSR prior to commencing operations in the Direct
Marketing Room. This training will be conducted by the WSR staff and will
cover those SUbjects necessary for the Contractor to conduct the operations
contemplated herein within WSR in a consistent, secure and effective manner
in accordance with the policies and procedures of WSR.

VI. .

PERIOD OF PERFORMANCE
The period of performance of this Contract shall commence on July 1, 1992 and
terminate on June 30, 1993, unless sooner terminated as provided herein.
This Contract may be extended for like periods or portions thereof by mutual
consent of the parties. However, this Contract carries no expressed or implied
right of extension after the initial, or extended, contract period{s).

VII.

TERMINATION'
Either party may terminate this Agreement by providing thirty (30) days' written
notice to the other party. The notice period shall begin to run on the second day
following the postmark thereof or upon the same day which personaJ delivery is
accomplished; Provided. however. this Contract may be terminated immediately
by the Department if. in the discretion of the Secretary of the Department, its
continuance would jeopardize the safety of WSR. .

VIII.

HOLD HARMLESS
The Contractor agrees to protect, defend, and hold harmless the state of
Washington. the Department, or any employees or agents thereof, from any
liability or claims for damage, including injury to the Contractor's employees or
agents, except where such liability or claim is due to the sale negligence of the
state of Washington, the Department or employees or agents thereof, arising

State of Washington
Department of Corrections

CDCI2761

Page 9 of 12

00000053

Exhibit 7

•
out of the performance of this Contract.
The Contractor further agrees to protect, defend, and hold harmless the state of
Washington, the Department, or any employees or agents thereof, for any
product liability claims relating to the products produced under this Contract.
.The Contractor expressly understands that neither the Department, nor its
employees or agents, is a guarantor of the work perfol1'J:1ed by the WSR
offenders hired by the Contractor hereunder.
IX.

NOTICE
All notices required to be given by the terms of this Contract, including options,
terminations, amendments and disputes, shall be sent to the Department as
follows:
Department of Corrections
Office of Contracts and Regulations
P.O. Box 41114
Olympia, Washington 98504·1114
RE: Contract No. CDCI2761
To the Contractor as follows: The following also provides corporate information
regarding the Contractor:
Washington Marketing Group, Inc.
P.O. Box 7179
Bellevue, Washington 98008
(206) 643-3626
Wa. Tax Registration Number

601-383':067

Fed. Employer Identification Number

91~155-9037

PrincipaJ Owner

James C. Paton

Any legal change in Corporate status or Corporate entity shaJl be considered an
assignment under the "Nonassignability" clause, General Terms & Conditions,
Exhibit "An, and as such requires the written authorization of the Department.
The Department shall also be notified if there is a change in the name of the
State of Washington
Department of Corrections

CDCI2761

Page 10 of 12

00000 054
ExhilJit 7

Corporation, or of any of the principal operating officers listed above. Failure to
so notify the Department will not relieve previous officers of their contractual
obligations with the Department and maybe grounds for immediate deniat to
industry space and/or contract termination.

X.

TERMS AND CONDITIONS
Mandatory compliance shall be required of all Department policies and
as well as all applicable federal, state and local laws, ordinances
and regulations.
.
proce~ures

All rights and obligations of the parties to this Contract shall be subject to and
governed by the "Terms and Conditions" contained in the text of this Contract
Agreement and the "General Terms an.d Conditions". attached hereto as Exhibit
"A" and made a part hereof.
XI.

ALL WRITINGS CONTAINED HEREIN
This Agreement contains all the terms and conditions agreed upon by the
parties. No other understandings. oral or otherwise. regarding the subject
matter of this Agreement shall be deemed to exist or to bind any other parties
hereto.

XII.

ORDER OF PRECEDENCE
In the event of an inconsistency in this Contract, unless otherwise provided
herein, the inconsistency shall be resolved by givi~g precedence in the
follOWing order:

A.

Those Terms and Conditions as contained in the basic Contract
Agreement; and

8.

The General Terms and Conditions, attached hereto and 'incorporated
herein.

Slate of Washington
Department of Corrections

COCI2761

Page 11 of 12 .

00000055

Exhibit 7

•

•

XIII.

RIGHTS IN DATA
Data entry, survey, software tapes, records of customer contrads and
sUbsequent results shaJl remain exclusively the property of the Contrador and
its assigns and shall not be reproduced by the Department or its agents in any
form.
.

IN WITNESS WHEREOF. the parties have executed this Contrad Agreement.

DEPARTMENT OF CORRECTIONS

CONTRACTOR

~
Date

State of Washington
Department of Corrections

W

Chase Riveland
Secretary

CDCI2761

Date

Page 12 of 12

00000056

Exhibit 7

, ,

XIII.

RIGHTS IN DATA
Data entry, survey, software tapes, records of customer contracts and
subsequent results shall remain exclusively the property of the Contractor and
its assigns and shall not be reproduced by the Department or its agents in any
form.

IN WITNESS WHEREOF, the parties have executed this Contract Agreement.

DEPARTMENT OF CORRECTIONS

CONTRACTOR

RdAz

Date

State of Washington
Department of Corrections

.~

Chase Riveland
Secretary

COCI2761

Date

Page 12 of 12

00000057

Exhibit 7

-----_._--••

I

..

. ., ,

•

POUCY: 280.510
APPENDIX B
COST STA~ENT AND COST SHEET
Pursuant to recent changes is RCW 42.17, the Department will now charge the actual cost of providing
copies of public record, including applicable postage.

saJmy:

2,718.33 median salary per month represents the catagories of staff who are most
commonly involved in processing pU~lic disclosure request throughout the Department.
2,718.331divided by 174 average hours in a month = 15.62 hourly rate! divided by 60
minutes =.2Ei cents per minutes.

=

Benefits:

70Ei.76 per month/divided by monthly salary 2718.33 26% of salary is benefits. .2599
or .26 cents per minute x 26% for benefits = 7 cents per minute. Benefits can range from
26% to 40% of salary. We chose the lower percentage which more accurately reflects the
perCentage paid for benefits of this salary group.

Costs:

.26 cents salary + 07 cents benefits per minute = 33 cents per minute salary and benefits.

CQpjertpacer!Enveiope Expenses
The following amounts reflect the actual cost the Department is charged for purchasing these items:
These cost are added together to come up with a total cost.
Payment for photocopying must be received by the Department before any documents will be sent to the
requester and only a Money Order or company check will be accepted as payment, no personal checks or

cash.
Description

~

The number of pages
of documents fQr
either 8 1/2 X 11 or
81/2 x 14 paper.

at SO.01 per page

Add
The number of
minut~s of salary time.

at SO.33 per minute

Add
The number of minutes
of phQtocopies cost.

at $0.01 per minute

= .35 cents per page

Add
10 x 13 kraft envelope.

At $0.08 per envelope one time cost only unless more that one
envelope is needed
Or

Plain franked envelope.

At $0.01 per envelope one time cost only same as above.

Add
Postage

at

_

Total costs for request

00000058

Exhibit 7
3

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'"

••ilt/.1 . 10M 13141

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sea

CnlQ

153 Gilt

o~
sTATe Of WASHINCTON

OEPARTMENT Of CORRECTIONS
PO

DlVISlCN l)f r;O••lCTfCIN4'L I~D~~T:lIE:
~u. ':!If.~ • Qlft"III.. 1v.u11'It;,rm JI';"" • ·1A111 :011.);~J

Cctaber 21. 1.,

James C. P1Itan, P"sdent

Walhingtotl Markatfno Group

POBca547
MatWe. WA 18272
Deaf MI. Patan:
A qu8Itfaft has been nJised ~ one at the privIItIt sedGr partners ragardln; the ilbiIitV for
crfrendln te hiWe IICC888 to the tntemM in the ca~ of daily buaineu adJVltfeI. I t\av&
.•"dosed far your nm.w a copy at ~enr 0# Con&diums Palicy 280.925, Off&i1det"
Ac::au to Eledranlc DaIB. wtllch ap:dfically mcltaUa this issu8.
~Ucy 280.f2!. Sec:ticn II C. &tala t,tIat phyEaJ security b8rrienI mUle be in placa to
enswe that oft'eaidetl ani ~ fiam K'CWUiIIg the IntenMIt bANNVAN (Lacaf Area

N8tWotICa Iftd WIda AlIa Netwarb). dIaJ.in 8CCIS8 (maduw). E--MaiI. md an..nne
~ eJvlDlln ataft'r. afIawIId CD have III: C..I tD __ . . . . If Ihes8
applkationa ate ~.'fV~ your ....... pteaa 1st m.1cnaw prfatfa iMlJtalladan m
Itat , ClIft ,.n with qpraprisle lNeIlfon Sfaff fD enan tNt IXQPI!!t 88CUI'itY barriera
wiD be ill place.
.
II8McaI.

·If you hIM wry questions J98arQing UI8 of campara by atrendetI. plUM give me a
cd. 380-5. .7552, -c

6lnCBref1.

~~r~

__

Catrecticne' Indusrrfes
Encto.ure

Illi

O~

nUl...

$._

....

.......

00000059

Exhibit 7

 

 

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