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Home My WebLink AboutItem 10d - Jail Operations Agreement Amendment DATE: February 6, 2024 TO: Honorable Mayor and City Council FROM: Roy Nakamura, Police Chief By: Amber Abeyta, Management Analyst SUBJECT: AMENDMENT TO THE JAIL OPERATIONS PROFESSIONAL SERVICES AGREEMENT WITH ALLIED UNIVERSAL INCREASING THE HOURLY PAY RATE IN ACCORDANCE WITH SENATE BILL 616 (SICK DAYS: PAID SICK DAYS ACCRUAL AND USE) IN AN AMOUNT NOT TO EXCEED $13,453 OVER A THREE-YEAR PERIOD CEQA: Not a Project Recommendation: Approve SUMMARY On October 4, 2023, Governor Newsom signed Senate Bill (“SB”) 616, amending California's Paid Sick Leave Law and increasing the number of paid sick leave days for eligible employees from three days to five days. The law became effective on January 1, 2024, and the City's jail operations contractor, Allied Universal, has requested an increase in their hourly pay rate to account for the additional cost of providing more sick leave pay for their employees that work in the City. It is recommended that the City Council approve Amendment No. 1 to the Jail Operations Professional Services Agreement with Allied Universal, increasing their hourly pay rate in accordance with Senate Bill 616 (Sick Days: Paid Sick Day Accrual and Use) in an amount not to exceed $13,453 over a three-year period. BACKGROUND The existing California Paid Sick Leave Law (Healthy Workplaces, Healthy Families Act of 2014) mandates that California employers provide employees up to three days of paid sick leave upon their 90th day of employment, if the employee: (1) worked in California for the same employer for 30 or more days within a year from the commencement of employment, and (2) was taking sick leave for a qualifying reason. SB 616, which amends the law, increases the number of paid sick leave days from three to five, and went into effect on January 1, 2024. In addition, SB 616 preempts local ordinances, and is Amendment to Jail Operations Agreement February 6, 2024 Page 2 of 3 applicable to charter cities including Arcadia. Furthermore, SB 616 applies to private companies and their employees that provide services to a City. DISCUSSION The City has a Professional Services Agreement (“Agreement”) with Allied Universal (“Allied”) for jail operations services. Senate Bill 616 has resulted in changes that impact Allied's costs, specifically sick pay. As a result, Allied must adjust their billing rate for the first three years of their fixed-rate Agreement with the City. Based on the current Agreement with Allied, sick leave is built into the regular Security Professional hourly bill rate; therefore, the hourly bill rate will be adjusted to incorporate the additional sick leave pay. This adjustment is specifically intended to account for the additional 16 hours/two full workdays of extra sick pay per year per employee, as stipulated in SB 616. The hourly rate increase for the three-year billing period is outlined below: Current Billing Rate New Billing Rate *Year 1 (FY 2023-24) Custody Officer $41.76 $42.01 Custody Supervisor $52.20 $52.45 Year 2 (FY 2024-25) Custody Officer $43.50 $44.01 Custody Supervisor $53.94 $54.45 Year 3 (FY 2025-26) Custody Officer $45.24 $46.02 Custody Supervisor $55.65 $56.46 Assuming Allied’s employees work the entirety of their scheduled hours, the projected yearly increase is as follows: Year 1 (Fiscal Year 2023-24) - $2,184 Year 2 (Fiscal Year 2024-25) - $4,455 Year 3 (Fiscal Year 2025-26) - $6,814 Total Cost Increase: $13,453 It should be noted that Year 1 covers a six month period from January 1, 2024, to June 30, 2024. Amendment No. 1 (attached) to the Professional Services Agreement with Allied provides a breakdown of the total cost for each year. Amendment to Jail Operations Agreement February 6, 2024 Page 3 of 3 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 Sufficient funds to accommodate the Year 1 increase ($2,184) have been budgeted in the Fiscal Year 2023-24 General Fund Operating Budget. The funds for Year 2 and Year 3 will be accounted for in their respective Fiscal Year budget. RECOMMENDATION It is recommended that the City Council determine that this action is exempt under the California Environmental Quality Act (“CEQA”); and approve an amendment to the Jail Operations Professional Services Agreement with Allied Universal, increasing their hourly rate in accordance with Senate Bill 616 (Sick Days: Paid Sick Days Accrual and Use) in an amount not to exceed $13,453 over a three-year period. Attachment: Amendment No. 1 to the Professional Services Agreement Page 1 of 3 AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT REGARDING OPERATION OF THE ARCADIA POLICE DEPARTMENT’S TYPE 1 JAIL FACILITY 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 Allied Universal, a Limited Partnership, with respect to that certain Professional Services Agreement between the parties dated August 1, 2023 (“Agreement”). The parties agree as follows: 1. Section 2. (b) Compensation and Exhibit “B” of the Agreement is amended to adjust the billing rate for the first three years of the Agreement from Fiscal Year 2023-24 to Fiscal Year 2025-26 as outlined below. It should be noted that Year 1 covers a six month period from January 1, 2024, to June 30, 2024. This adjustment is specifically intended to account for the additional 16 hours/two full workdays of extra sick pay per year per employee as required by Senate Bill 616 (2023). Current Billing Rate New Billing Rate *Year 1 (FY 2023-24) Custody Officer $41.76 $42.01 Custody Supervisor $52.20 $52.45 Year 2 (FY 2024-25) Custody Officer $43.50 $44.01 Custody Supervisor $53.94 $54.45 Year 3 (FY 2025-26) Custody Officer $45.24 $46.02 Custody Supervisor $55.65 $56.46 Assuming Allied's employees work the entirety of their scheduled hours, the projected yearly increase is as follows: Year 1 (Fiscal Year 2023-24) $2,184 Year 2 (Fiscal Year 2024-25) $4,455 Year 3 (Fiscal Year 2025-26) $6,814 Total Cost Increase: $13,453 2. All 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. Page 2 of 3 CITY OF ARCADIA ALLIED UNIVERSAL __________________________ _______________________________ Dominic Lazzaretto Richard Dirmandzhuan City Manager General Manager Date: _____________________ Date: __________________________ ATTEST: _______________________________ Steve Claton __________________________ President City Clerk Date: __________________________ APPROVED AS TO FORM: CONCUR: __________________________ ______________________________ Michael J. Maurer Roy Nakamura City Attorney Chief of Police Page 3 of 3 EXHIBIT “B” Schedule of Charges/Payments Consultant will invoice the city on a monthly cycle. Consultant will include with each invoice a detailed progress report that indicates the amount of budget spent on each task. Consultant will inform city regarding any out of scope work being performed by consultant. The total compensation shall not exceed $1,228,748 over the first three years. As listed in the table below and as follows: The total cost for Year 1 (FY 2023-24) shall not exceed $391,919. The total cost for Year 2 (FY 2024-25) shall not exceed $409,551. The total cost for Year 3 (FY 2025-26) shall not exceed $427,278. These rates are subject to review upon renewal at the end of year three. The parties will review cost during the city's budget preparation process during the first quarter of 2026.