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HomeMy WebLinkAboutItem 11d - Jail ServicesDATE: June 1, 2021 TO: Honorable Mayor and City Council FROM: Roy Nakamura, 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 $329,376 Recommendation: Approve SUMMARY The existing Professional Services Agreement (“Agreement”) with the G4S Secure Solutions (USA), Inc. (“G4S”) for jail services expires on June 30, 2021. 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 for Fiscal Year 2021-22 in the amount of $329,376. 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 $314,750; however, to extend services for Fiscal Year 2021-22, the fee will be $329,376, which includes a 4.6% increase. The contract price is increasing to support 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. As a result, the billing and wage rates will be as follows: Professional Services Agreement Amendment for Jail Services June 1, 2021 Page 2 of 3 Position Current Labor Rate FY20-21 Proposed Labor Rate FY21-22 Labor Rate Variance % Increase Current Billing Rate FY20-21 Proposed Billing Rate FY21-22 Billing Rate Variance % Increase Portion retained by G4S (Billing Rate-Labor Rate) Jail Custody Officer $19.00 $20.00 $1.00 5.3% $33.26 $34.87 $1.61 4.8% $14.87 Jail Supervisor $26.00 $27.00 $1.00 3.8% $44.89 $46.77 $1.88 4.2% $19.77 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 second of three extensions allowed under Agreement. The proposed Amendment to the Agreement will also revise the Scope of Services of the contract as a result of Assembly Bill 32 (Detention Facilities), which prohibits the operation of a private detention facility within the State of California. Thus, the Amendment clarifies that G4S does not operate or manage the City Jail, rather G4S’ services are limited to the staffing of security officers who comply with the directives provided by the City. 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, 2021, to June 30, 2022, the fee for jail services will be $329,376. This amount has been budgeted in the City’s Operating Budget for Fiscal Year 2021-22. 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 G4S Secure Solutions (USA), Inc. for jail services in the amount of $329,376. Attachment: Proposed Amendment No. 2 to the Professional Services Agreement 1 AMENDMENT NO. 2 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. 2 (“Amendment No. 2”) is hereby entered into on this ____ day of ______ 2021, 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”), as amended by Amendment No. 1, dated July 29, 2020. The Parties agree as follows: 1. Section 3.1.2 of the Agreement, the Term is amended by extending the term from July 1, 2021 through June 30, 2022 (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. Section titled Scope of Services of the Agreement is amended as follows to provide clarification on G4S’s service responsibilities. Whereas, City and G4S acknowledge that Assembly Bill 32 prohibits the operation of a private detention facility within the State of California. (Cal. Penal Code § 9501.) Whereas, City and G4S agree that G4S does not operate or manage the City Jail as defined under AB 32 and Cal. Penal Code §§ 9500(b) and 9501. Now therefore, in consideration of accords made herein, and the exchange of such good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and G4S agree to the following amendments of the Agreement as follows: i. City maintains all decision-making authority and responsibility for the operation and management of the City Jail. City’s responsibilities include, but are not limited to: a. Creating and implementing the City’s Jail Manual; b. Providing G4S with copies of all relevant policies and procedures; c. Managing the food services contract and inventory; d. Managing linen and janitorial responsibilities; and e. Maintaining responsibility for any maintenance or repair obligations. 2 ii. City shall identify and employ the Facility Administrator and Facility Manager required by Title 15, Minimum Standards for Local Detention Facilities, issued by the Board of State and Community Corrections. As defined in Title 15, the Facility Administrator means the sheriff, chief of police, chief probation officer, or other official charged by law with the administration of a local detention facility. The Facility Manager means the jail commander, camp superintendent, or other comparable employee who has been delegated the responsibility for operating a local detention facility by a facility administrator. iii. City and G4S agree that the scope of G4S’s services provided to the City are limited to the staffing of security officers who shall comply with directives provided by City. G4S personnel are classified as security officers or custody officers, not detention officers. G4S’s responsibilities include, but are not limited to: a. Receiving, processing and monitoring individuals at the Jail in accordance with Jail policies and procedures; b. Weekly ordering and receipt of prisoner meals to maintain designated inventory; c. Daily washing of jail linen; d. Spot cleaning workspaces, prisoner cells, and common areas; e. Identifying and reporting any maintenance and repair issues; f. Ensuring there is appropriate staffing at the Jail as requested by City; and g. Other duties as requested by City. iv. City and G4S agree that any and all language referencing “Operate”, “Manage”, or any variations thereof contained in any existing Agreement, Exhibit to any Agreement, and Request for Proposals between City and G4S regarding the scope of G4S’s services provided to the City are to be stricken. v. All other terms and conditions of the Agreement remain in full force and effect. vi. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument. 4. All of the remaining terms and provisions of the Agreement are hereby reaffirmed. [SIGNATURES ON NEXT PAGE] 3 In witness whereof the Parties have executed this Amendment No. 2 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 ___________________________ Stephen P. Deitsch City Attorney Date: ______________________________ ___________________________________ Bradley Van Hazel Executive Vice President Date: ______________________________ CONCUR: _________________________________ Roy Nakamura Chief of Police 4 Exhibit "C" COMPENSATION The Agreement is amended to provide that the total compensation for the Extended Term, from July 1, 2021, through June 30, 2022, shall not exceed three hundred twenty- nine thousand three hundred seventy-six dollars and thirty-two cents ($329,376.32), as referenced in the attached letter from the G4S Secure Solutions, Inc. dated March 16, 2021. 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 16, 2021 Dear Chief Nakamura: 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 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 Chief Roy Nakamura 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 $20.00 $34.87 $48.82 $4,463.36 $19,341.23 $232,094.72 Custody Supervisor 40 $27.00 $46.77 $65.48 $1,870.80 $8,106.80 $97,281.60 Estimated Totals $6,334.16 $27,448.03 $329,376.32 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