HomeMy WebLinkAboutItem 11r - Jail Services
DATE: June 16, 2020
TO: 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
G4S SECURE SOLUTIONS (USA), INC. FOR JAIL SERVICES IN THE
AMOUNT OF $314,750
Recommendation: Approve
SUMMARY
The existing Professional Services Agreement (“Agreement”) with the G4S Secure
Solutions (USA), Inc. (“G4S”) for jail services 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 G4S from July 1,
2020, through June 30, 2021, in the amount of $314,750.
DISCUSSION
The Arcadia Police Department (the “Department”) began contracting its jails services in
July 2012. G4S was awarded its second PSA with City in 2017, with an option to renew for
three additional years on a year-by-year basis.
The services provided by G4S include all labor, tools, equipment, materials, and
supervision necessary to provide for a safe, efficient operation of the Department’s Type I
Jail Facility. The company is also responsible for recruitment, background checks, training,
scheduling, discipline, termination, and uniforms for their personnel.
The City's current Agreement requires the City to pay $286,349; however, to extend
services for FY 2020-21, the fee will be $314,750, which includes a 9.92% increase. The
contract price has been constant over the past three years and the increase supports labor
rate increases to keep up with California’s rising minimum wage, as well increases
experienced by G4S in the areas of licensing fees, taxes, insurance, and healthcare costs.
Initially, G4S proposed a 14.11% price increase but staff was able to negotiate the
increase down by 4.19%. As a result, the billing and wage rates will be as follows:
Professional Services Agreement Amendment for Jail Services
June 16, 2020
Page 2 of 2
Position
Current
Labor
Rate
FY19-20
Proposed
Labor
Rate
FY20-21
Labor
Rate
Variance
%
Increase
Current
Billing
Rate
FY19-20
Proposed
Billing
Rate
FY20-21
Billing
Rate
Variance
%
Increase
Portion
retained
by G4S
(Billing
Rate-Labor
Rate)
Jail Custody
Officer $17.00 $19.00 $2.00 11.76% $30.09 $33.26 $3.17 10.54% $14.26
Jail Supervisor $25.00 $26.00 $1.00 4.00% $41.38 $44.89 $3.51 8.48% $18.89
Based on the Agreement cost and scope of experience, G4S is most qualified to provide
the best jail services to the Department. This extension will serve as the first of three
extensions allowed under Agreement.
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
For the term of the Professional Services Agreement, from July 1, 2020, to June 30, 2021,
the fee for jail services will be $314,750. This amount has been budgeted in the City’s
Operating Budget for FY 2020-21.
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 G4S
Secure Solutions (USA), Inc. for jail services in the amount of $314,750.
Attachment: Proposed Amendment No. 1 to Professional Services Agreement
1
AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT
FOR THE OPERATION OF THE ARCADIA POLICE DEPARTMENT’S TYPE 1 JAIL
FACILITY WITH G4S SECURE SOLUTIONS (USA), INC.
This Amendment No. 1 (“Amendment No. 1”) 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 G4S Secure Solutions (USA), Inc., a Florida Corporation,
with respect to that certain Professional Services Agreement between the parties dated
July 5, 2017 (“the Agreement”).
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.1 on the date
set forth below.
[SIGNATURES ON NEXT PAGE]
2
In witness whereof the parties have executed this Amendment No. 1 on the date set
forth below.
CITY OF ARCADIA G4S SECURE SOLUTIONS (USA), INC.
Dominic Lazzaretto Mark I. Tsuji
City Manager Senior Vice President
ATTEST:
___________________________
City Clerk
Date: ______________________________
___________________________________
Bradley Van Hazel
Executive Vice President
Date:
Stephen P. Deitsch
City Attorney
CONCUR:
_________________________________
Robert Guthrie
Chief of Police
3
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 three-hundred
fourteen thousand seven-hundred forty-nine dollars and seventy-six cents
($314,749.76), as referenced in the attached letter from the G4S Secure Solutions, Inc.
dated March 13, 2020.
Proposal for Custody
Officer Services for the
Arcadia Police Department
Presented by
G4S Secure Solutions (USA) Inc.
Sharon Asadoor
4929 Wilshire Blvd, Suite 601
Los Angeles, CA 90010
323.401.9216 • sharon.asadoor@usa.g4s.com
i
G4S Proposal to Provide Custody Officer Services
Confidential, Financial and Proprietary Information
March 13, 2020
Dear Chief Guthrie:
On behalf of G4S Secure Solutions (USA) Inc. (G4S), we thank the City of Arcadia’s Police
Department for our trusted partnership. Our goal is to continue to help the City of Arcadia achieve its
goals through supplying qualified and trained officers combined with our proven management and
operations processes.
Key elements of our overall solution that we will continue to provide are:
• Staffing the City’s Custody Officer positions with G4S’ premier Custom Protection Officer®
Program, the most qualified and highest caliber of officers in the industry.
• Comprehensive and documented background checks, including reference, credit and
fingerprint checks.
• State standard training for all Custody Officers to operate in a Type I Jail Facility including
Title 15, Section 1024 Court Holding and Temporary Holding Facility Training.
• Compliance with Title 15 of the California Code of Regulations and accurate records
demonstrating compliance for the purpose of state inspections and audits.
It is paramount to G4S to provide a fair and equitable pricing to ensure the highest quality of service
to the City of Arcadia. On the pages to follow we provide our price proposal that illustrates the value
will continue to provide the City.
We look forward to the chance to carry on our partnership with you. Please contact me and/ or
Quintin Ridley if you have questions about this proposal or require further information.
Sincerely,
Sharon Asadoor
Sharon Asadoor
Manager, Business Development
Sharon Asadoor
Manager, Business Development
G4S Secure Solutions (USA) Inc.
323.401.9216
sharon.asadoor@usa.g4s.com
4929 Wilshire Blvd, Suite 601,
Los Angeles, CA 90010
www.g4s.us
Robert T. Guthrie
Chief of Police
City of Arcadia, Police Department
250 W Huntington Drive
Arcadia, CA 91066
1
G4S Proposal to Provide Custody Officer Services
Confidential, Financial and Proprietary Information
PRICING
The purpose of the Custody Officer Program is to increase the City of Arcadia’s total value through
the strategic application of available resources to specific dangers. Helping to strike this balance by
supplying the right services is a challenge G4S has helped organizations such as Arcadia meet for
decades.
We propose the following pricing based upon our assessment of Arcadia Police Department’s
needs:
POSITION
HOURS
PER
WEEK
WAGE
RATE
BILLING
RATE
HOLIDAY /
OVERTIME
RATE
EST.
WEEKLY
COST
AVERAGE
MONTHLY
COST
EST.
ANNUAL
COST *
Custody
Officer 128 $19.00 $33.26 $46.56 $4,257.28 $18,448.21 $221,378.56
Custody
Supervisor 40 $26.00 $44.89 $62.85 $1,795.60 $7,780.93 $93,371.20
Estimated Totals 6,052.88 26,229.15 $314,749.76
Table 1. Position and Wage Summary
* Based on 52 weeks per year
PRICING NOTES
Based on our review and our knowledge of providing security to similar customers in like
environments, G4S has proposed a security solution which combines our quality security officer
program to ensure the scope of work and Post Orders are adhered to above and beyond the
expectations of Arcadia PD.1
In order to provide a transparent view of our pricing, the following notes provide additional details on
our proposed pricing structure:
TOPIC PRICING NOTES
Validity and
Taxes
The proposed pricing is valid for 90 days and does not include sales or use
taxes where applicable.
The rates quoted will remain in effect for 1 year and will be automatically
adjusted to fully recover any change in costs mandated by law, including but
not limited to licensing fees, Federal Insurance Contribution Act (FICA), Federal
Unemployment Tax Act (FUTA), State Unemployment Insurance (SUI),
Worker’s Compensation, Collective Bargaining Agreements, Union Activities,
regulatory costs associated with compliance with the Patient Protection and
Affordable Care Act (PPACA), and/or Federal or State minimum wage laws. In
addition, these rates may be adjusted each November 1 for any increased
1 For the following pricing details, amounts shown in the specified categories are based on our assumptions and are
projections used to formulate the proposed bill rates. G4S' contractual commitment will relate to the total bill rate
only and not the components thereof.
2
G4S Proposal to Provide Custody Officer Services
Confidential, Financial and Proprietary Information
TOPIC PRICING NOTES
costs for medical insurance premiums, participation rates or both.
The pricing submitted reflects G4S’ calculations from its understanding of
Arcadia PD’s current security schedules and coverage needs. If such
schedules and staffing levels are not sufficient to comply with California law
mandating off-duty meal periods and/or off-duty rest periods, G4S reserves the
right to revise and/or increase these rates, at any time, to comply with
California’s requirements for off-duty meal periods and/or off-duty rest periods.
These revisions may include modifying schedules, providing additional
staffing/personnel, or taking other actions deemed necessary by G4S. G4S
agrees to use best efforts to minimize such additional costs to the extent
operationally feasible while still meeting the requirements of California law.
Incumbent
Retention
G4S pricing is based on retaining incumbent G4S personnel currently assigned
to the Arcadia PD account who have the knowledge and experience of the
security program, to which newly hired personnel would not be privy. From
experience, we know that reducing the wage rates or hiring all new officers will
cause a high rate of turnover and will not provide the consistent security
program that Arcadia PD has grown accustomed to. G4S would be happy to
discuss this methodology with Arcadia PD in further detail.
Union Note
Please note that the rates quoted are based on non-union security personnel.
Should our employees become represented by a union organization and we
negotiate a collective bargaining agreement, then the wages and employee
benefits would be adjusted accordingly, along with our bill rates.
Pre-
employment
Screening
Quoted rates include the following background investigation and screening
elements for new hire personnel:
Identity verification: Social Security trace report
Criminal searches (based on 7-10 years of address history or in
accordance with state law)
- Statewide criminal search (where available)
- County criminal search (when state not available or historically
incomplete)
- Multi-jurisdictional and sex offender search including OFAC SDN
search (terrorist watch list)
7 years of activities (employment, unemployment, education)
- Review, investigation and resolution of all gaps 90 days or longer
Driver’s license (DMV) check (annual for driving positions)
Drug screen (10-panel)
Physical exam (CPO only)
Psychological evaluation (MMPI-2) (CPO only)
3
G4S Proposal to Provide Custody Officer Services
Confidential, Financial and Proprietary Information
TOPIC PRICING NOTES
Training
The quoted rates include the following training for new-hire personnel; all
officers receive annual in-service training.
Custom Protection Officer®
Pre-assignment Training: 40 hours
On-the-Job Training: 24 hours
Incumbent New-Hire Orientation: 8 hours
Annual In-Service Training: 16 hours
Additional pre-assignment training is direct billed at 1.33 times the straight-time
pay rate and post-assignment training at 1.40 times the straight-time bill rate,
unless personnel are in a billable posture.
Benefits
Eligibility
Employees with 32 or more hours per week are eligible for the identified
benefits program.
Holidays
G4S recognizes the following six (6) holidays: New Year’s Day, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Holidays
pay is time-and-one-half for hours worked. Holidays are billed separately at
1.40 times the straight-time bill rate.
Vacation
G4S provides the following vacation, which has been included in the bill rates.
1 week (40 hours) after 1 year
2 weeks (80 hours) after 2 years (CPO only)
3 weeks (120 hours) after 5 years (CPO only)
Should incumbent personnel retained on the account be eligible for additional
vacation, G4S will direct-bill for vacation in excess of one week at 1.33 times
the straight-time pay rate, if the client approves the grandfathering of current
earned benefits.
Sick Time One (1) day of sick time after every four (4) months worked (24 hours annually)
or paid time off as otherwise required under state law.
Health
Insurance
Plan
G4S has a clear understanding of the requirements of the Affordable
Healthcare Act (ACA), and our plans provide the health coverage that our
employees need and deserve. G4S pricing is inclusive of our Comprehensive
Major Medical PPO Plan administered by BlueCross BlueShield.
Plans are renewed each year on November 1; if any changes in cost or
changes due to legislation or the interpretation of same, we request the
opportunity to revisit our rates. The costs of insurance are influenced by a
multitude of factors including, but not limited to, employee participation, claims
history and other factors outside of our control. These factors are universal for
all employees regardless of their industry and are not G4S-specific, so any
increases would be experienced with any provider.
4
G4S Proposal to Provide Custody Officer Services
Confidential, Financial and Proprietary Information
TOPIC PRICING NOTES
Life Insurance $10,000 Life and AD&D, after one year of service
Dental
Insurance Dental Insurance administered by Delta Dental (optional, employee paid)
Vision
Insurance Vision Insurance administered by Vision Service Plan (optional, employee paid)
Uniforms
G4S will furnish each officer at a location with a complete complement of police
style uniforms and foul weather gear. Personnel are required to maintain their
uniforms in a neat and orderly manner at all times. Uniforms are provided with
no payment or deposit required of the employee. Please note that in order to
comply with statutory requirements, all personnel assigned to California sites
receive a uniform maintenance allowance.
Other
Employee
Benefits
The following employee benefits have also been factored into our proposed
pricing:
Standard 401(K), after one year of service
Standard Incentive and Recognition Awards
Employee Assistance Program
Equipment Any additional equipment needed (such as radios, vehicles, PPE, etc.) can be
direct-billed as incurred.
Overtime
Quoted rates are based on a 40-hour workweek schedule. Overtime billing
rates will apply when personnel are placed in an overtime posture for pay
purposes as a result of scheduling over 40 hours per week (or more than 8
hours per day in California) or if additional hours are required outside the
regular schedule. G4S will endeavor to use part-time personnel whenever
possible to avoid overtime rates. Personnel will be paid time-and-one-half base
pay rates for overtime, and the corresponding bill rate is 1.40 times the straight-
time bill rate. Personnel in California will be paid double time if required to work
more than 12 hours per day. The corresponding bill rate for double time is 1.85
times the straight-time bill rate.
Salaried
Personnel
Salaried personnel are exempt from overtime. Exempt personnel will be paid
and billed on a weekly basis, 40 hours each week and are not replaced in the
event of paid leave.
Permanent
Service
Quoted rates are for regular or permanent service. The following applies to
short-term and disaster/emergency services:
Short-term service: Additional personnel will be provided at overtime
rates for sites that have permanent coverage. For sites that have no
permanent coverage, G4S will use short-term rates of $48 per hour for
unarmed requests.
5
G4S Proposal to Provide Custody Officer Services
Confidential, Financial and Proprietary Information
TOPIC PRICING NOTES
Disaster/Emergency services: Disaster and emergency services
involve the deployment of large groups of personnel and include
complicated operational issues such as travel, communications,
equipment and lodging in sometimes challenging environments.
Because needs vary, G4S requires the mutual development of the
operations plan in order to ensure the highest probability of successful
deployment in the event there is a need to activate this service. G4S
has a well-established and documented Disaster/Emergency
Operations Plan developed from extensive experience in providing
these services.
Table 2. Pricing Notes