That the City Council waive formal bid procedures requirements per La Habra Municipal Code Section 4.20.070 (B) and approve and authorize the City Manager to execute Amendment No. 2 for a one-year extension to June 30, 2025, of the Professional Services Agreement with Allied Universal Corporation for custody officer services. 

The La Habra Police Department has contracted with Allied Universal (Allied), formerly G4S Solutions Corporation (G4S), for jailer services within the City's jail since May 2001. The current Amendment No. 1 with Allied will expire on June 30, 2024. Allied Universal provides 24/7 custodial services for the City's jail, including the transportation of arrestees to the Orange County Jail. The contract custody officers are required to be Title 15 certified, according to the Board of State and Community Corrections, allowing them to work in the City's Type 1 jail facility.

During Fiscal Year 2023-24, the La Habra Police Department paid $319,597.34 to Allied Universal for jail services.  If approved by the City Council, the extension with Allied for Fiscal Year 2024-25 will be $334,289.27, which reflects a 4.6%, or $14,691.93, increase in annual cost.  As one of Allied Universal's first contract cities, the City of La Habra is considered a "legacy" agency, a designation that allows the City to negotiate modest annual contract cost increases over the life of the agreement.  However, continued annual cost increases associated with this agreement have prompted staff to begin to explore other options. Jailer services is one of the Police Department's largest contracts, and approval of a one-year contract extension will allow staff sufficient time to evaluate other potential cost-saving measures, such as staffing the jail with City employees or partnering with a neighboring police agency for jailer services.

In evaluating the proposed amendment, staff researched jailer services throughout Orange County's 34 cities. Research revealed that six Orange County agencies, including La Habra, were under contract with Allied Universal, fifteen utilized City employees to staff the jails, and the remainder of Orange County cities were under contract with the Orange County Sheriff's Department.  No other independent contractor was found to offer custodial services that would meet the Police Department's needs or standards. Over the course of the agreement, Police Department staff have been satisfied with the services provided by Allied Universal and their ability to deliver the level of service necessary to meet the Title 15 certification and City standards.

The total one-year cost of Amendment No. 2 is $334,289.27, representing a 4.6%, or $14,691.93, annual increase in cost, and is a General Fund expense. If approved, the cost of Amendment No. 2 will be included in the Police Department's proposed Fiscal Year 2024-25 budget submission.