Loading...
HomeMy WebLinkAboutItem 11m - Crossing Guard ServicesDATE: June 16, 2020 TO: Honorable Mayor and City Council FROM: Robert Guthrie, Chief of Police By: Dr. Jennifer Brutus, Sr. Management Analyst SUBJECT: AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH ALL CITY MANAGEMENT SERVICES FOR CROSSING GUARD SERVICES IN THE AMOUNT OF $242,367 Recommendation: Approve SUMMARY The City has a Professional Services Agreement (“Agreement”) with All City Management Services (“ACM”) for crossing guard services, and the current Agreement expires on June 30, 2020. It is recommended that the City Council approve, authorize, and direct the City Manager to execute an amendment to the Professional Services Agreement with All City Management from July 1, 2020 through June 30, 2021, in the amount of $242,367, which reflects an 6.3% price increase. BACKGROUND In 2000, as a long-term cost savings strategy, the City opted to enter into a Professional Services Agreement with All City Management Services to provide crossing guards for the City of Arcadia. Since the approval of the Agreement, All City Management Services has adhered to all conditions and has proven to be a responsible service provider. Prior to acquiring the crossing guard services, the Arcadia Police Department (the “Department”) was continually using staff members, including police officers, to fill vacant posts that occurred as a result of sickness or injury to crossing guards. For the past 20 years, the Department has not had to use any staff, nor been required to provide oversight to crossing guard operations, other than designating a staff member to monitor Agreement compliance. Further, the City has recognized a cost savings in the area of worker’s compensation insurance and liability management as a result of contracting for these services. All City Management Services provides crossing guard services to over 70 cities and school districts throughout the State. They are the only company with proven Professional Services Agreement Amendment for Crossing Guard Services June 16, 2020 Page 2 of 2 experience and infrastructure to provide such service. Thus, the Department considers the company to be a sole source provider for crossing guards. DISCUSSION The proposed amendment to the Agreement includes a substantial increase for FY 2020-21. Like many contract services, the cost of labor is increasing to keep up with California’s mandated minimum wage increases, which is slated for continuous $1.00 increases per year through January 1, 2022, when it will reach $15.00 per hour. Consequentially, the wage increases result in higher employer taxes, liability insurance, and worker’s compensation insurance, which amounts to $0.35 per $1.00 of wages for ACM. Thus, to extend services for FY 2020-21, ACM is requesting a 6.3% increase in costs. As proposed, the total cost of the contract shall not exceed $242,367, compared to the contract price of $227,909 for FY 2019-20. This is viewed as a reasonable cost for this service, given the change in the minimum wage environment. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), based on Section 15061(b)(3) of the CEQA Guidelines, as it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT The amendment to the Agreement will cost the City $242,367 for FY 2020-21. This amount has been budgeted in the City’s FY 2020-21 Operating Budget. RECOMMENDATION It is recommended that the City Council determine that this project is exempt under the California Environmental Quality Act (“CEQA”); and approve, authorize, and direct the City Manager to execute an amendment to the Professional Services Agreement with All City Management Services for crossing guard services in the amount of $242,367. Attachment: Proposed Amendment No. 2 to Professional Services Agreement 1 AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT FOR SCHOOL GROSSING GUARD SERVICES WITH ALL CITY MANAGEMENT SERVICES This Amendment No. 2 (“Amendment No. 2”) is hereby entered into by and between the City of Arcadia, a charter city organized under the Constitution and laws of the State of California, and All City Management Services, Inc., a California Corporation, with respect to that certain Professional Services Agreement between the Parties dated July 21, 2016 (the “Agreement”), as amended by Amendment No. 1, dated July 20, 2019. The Parties agree as follows: 1. Section 3.1.2 of the Agreement, the Term is amended by extending the term from July 1, 2020 through June 30, 2021 (the “Extended Term”). 2. Section 3.3.1 of the Agreement, the Compensation is amended for the Extended Term as referenced in the attached Exhibit “C”. 3. All of the remaining terms and provisions of the Agreement are hereby reaffirmed. In witness whereof the Parties have executed this Amendment No. 2 on the date set forth below. CITY OF ARCADIA ALL CITY MANAGEMENT SERVICES, INC. ____________________________ ________________________________ Dominic Lazzaretto Baron Farwell City Manager President Date: _______________________ Date: ___________________________ ATTEST: ________________________________ Demetra Farwell ____________________________ Corporate Secretary City Clerk APPROVED AS TO FORM: CONCUR ____________________________ ________________________________ Stephen P. Deitsch Robert Guthrie City Attorney Chief of Police 2 Exhibit "C" COMPENSATION The Agreement is amended to provide that the total compensation for the Extended Term from July 1, 2020, through June 30, 2021, shall not exceed Two Hundred Forty-Two Thousand Three-Hundred Sixty-Seven Dollars and Thirty Cents ($242,367.30), according to the price letter dated February 26, 2020.