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Consent
Item No. 5.
| MEETING DATE: 07/21/2025 |
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| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Adam Foster, Chief of Police |
| SUBJECT: | APPROVE AMENDMENT NO. 3 FOR A THREE-YEAR EXTENSION TO JUNE 30, 2028, FOR THE PROFESSIONAL SERVICES AGREEMENT WITH ALLIED UNIVERSAL FOR JAILER SERVICES
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RECOMMENDATION:
That the City Council waive formal bid procedures per La Habra Municipal Code Section 4.20.080 (B) and approve and authorize the City Manager to execute Amendment No. 3 for a three-year extension to June 30, 2028, for the Professional Services Agreement with Allied Universal for jailer services.
DISCUSSION:
The La Habra Police Department has contracted for jailer services within the City's jail since May 2001. The current agreement with Allied Universal (Allied) expired June 30, 2025, but a side letter agreement executed on June 16, 2025, extended the term of the agreement to July 31, 2025, to allow both parties additional time to execute a third amendment (see Attachment 1, Extension Letter).
Allied provides 24/7 custodial services for the City's jail, including transporting arrested individuals to the Orange County Jail. According to the Board of State and Community Corrections, contract custody officers must be certified by Title 15, allowing them to work in the City's jail. As one of Allied's first contract cities, the City of La Habra is considered a "legacy" agency, a designation allowing the City to negotiate modest annual contract cost increases over the life of the agreement. Most recently, staff have used this relationship with Allied to negotiate a three-year contract Amendment (see Attachment 2, Amendment No. 3).
During Fiscal Year 2024-25, the La Habra Police Department paid $334,289.27 to Allied Universal for jail services. If approved by the City Council, Amendment No. 3 will extend the agreement with Allied to June 30, 2028, and increase the contract amount for Fiscal Year 2025-26 to $356,562.30, which reflects a 6.7% or $22,272.93 increase in the annual cost.
Staff evaluated the proposed Amendment and researched jailer services throughout Orange County's 34 cities. Research revealed that six other Orange County agencies, including La Habra, were under contract with Allied Universal, fifteen utilized City employees to staff the jails, and the remaining Orange County cities were under contract with the Orange County Sheriff's Department. Staff researched the potential of securing competing bids from other companies for jailer services and the option to staff the jail with City employees. Neither option appears financially superior to extending the existing contract agreement with Allied Universal. The analysis of staffing the jail with City employees found no net cost savings, as it would require staffing up to six new full-time employees, with pay, benefits, training, and equipment. Also, insurance costs would increase for Workers' Compensation and General Liability coverage if the City staffed the jail operations. No other independent contractor was found to offer custodial services that would meet the Police Department's needs and standards. Throughout the agreement, Police Department staff have been satisfied with Allied Universal's services and ability to deliver .
Based on Allied's past success and ability to deliver the level of service necessary to meet the Title 15 certification and City standards, staff recommends that the City Council approve Amendment No. 3 with Allied to continue jailer services. If approved, the Amendment will cover the period July 1, 2025, to June 30, 2028, for an amount not to exceed $1,120,796.14 over the course of the three-year Amendment.
Allied provides 24/7 custodial services for the City's jail, including transporting arrested individuals to the Orange County Jail. According to the Board of State and Community Corrections, contract custody officers must be certified by Title 15, allowing them to work in the City's jail. As one of Allied's first contract cities, the City of La Habra is considered a "legacy" agency, a designation allowing the City to negotiate modest annual contract cost increases over the life of the agreement. Most recently, staff have used this relationship with Allied to negotiate a three-year contract Amendment (see Attachment 2, Amendment No. 3).
During Fiscal Year 2024-25, the La Habra Police Department paid $334,289.27 to Allied Universal for jail services. If approved by the City Council, Amendment No. 3 will extend the agreement with Allied to June 30, 2028, and increase the contract amount for Fiscal Year 2025-26 to $356,562.30, which reflects a 6.7% or $22,272.93 increase in the annual cost.
Staff evaluated the proposed Amendment and researched jailer services throughout Orange County's 34 cities. Research revealed that six other Orange County agencies, including La Habra, were under contract with Allied Universal, fifteen utilized City employees to staff the jails, and the remaining Orange County cities were under contract with the Orange County Sheriff's Department. Staff researched the potential of securing competing bids from other companies for jailer services and the option to staff the jail with City employees. Neither option appears financially superior to extending the existing contract agreement with Allied Universal. The analysis of staffing the jail with City employees found no net cost savings, as it would require staffing up to six new full-time employees, with pay, benefits, training, and equipment. Also, insurance costs would increase for Workers' Compensation and General Liability coverage if the City staffed the jail operations. No other independent contractor was found to offer custodial services that would meet the Police Department's needs and standards. Throughout the agreement, Police Department staff have been satisfied with Allied Universal's services and ability to deliver .
Based on Allied's past success and ability to deliver the level of service necessary to meet the Title 15 certification and City standards, staff recommends that the City Council approve Amendment No. 3 with Allied to continue jailer services. If approved, the Amendment will cover the period July 1, 2025, to June 30, 2028, for an amount not to exceed $1,120,796.14 over the course of the three-year Amendment.
FISCAL IMPACT/SOURCE OF FUNDING:
The total three-year cost of the Amendment is $1,120,796.14. The first-year cost is $356,562.30, the second-year cost is $373,539.76, and the third-year cost is $390,694.08. The cost of the first year of the Amendment was included in the Police Department's proposed Fiscal Year 2025-26 General Fund budget submission. There is sufficient funding in the budget for this request.
GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:
This Amendment is consistent with the following areas of the General Plan:
PS1.3 Non-Sworn Staffing
This Amendment is also consistent with the following Fiscal Year 2025-26 City Council Goals & Objectives:
Goal 2, Objective A: Regularly review and evaluate programs, services, and professional agreements to assess effectiveness and identify opportunities for greater efficiencies and cost containment.
PS1.3 Non-Sworn Staffing
This Amendment is also consistent with the following Fiscal Year 2025-26 City Council Goals & Objectives:
Goal 2, Objective A: Regularly review and evaluate programs, services, and professional agreements to assess effectiveness and identify opportunities for greater efficiencies and cost containment.