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
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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.