Item No. 8.
| MEETING DATE: 05/03/2021 |
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| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Adam Foster, Interim Chief of Police |
| SUBJECT: | APPROVE AMENDMENT NO. 1 FOR A THREE-YEAR EXTENSION TO JUNE 30, 2024, FOR THE PROFESSIONAL SERVICES AGREEMENT WITH G4S SECURE SOLUTIONS (USA), INC. FOR JAILER SERVICES |
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. 1 for a three-year extension to June 30, 2024, for the Professional Services Agreement with G4S Secure Solutions (USA), Inc. for jailer services.
DISCUSSION:
The La Habra Police Department has contracted with G4S Solutions Corporation (G4S) for jailer services within the City's jail since May 2001. The current agreement with G4S will expire June 30, 2021. As one of G4S' first contract cities, the City of La Habra is considered a "legacy" agency, a designation that has allowed the City to negotiate modest annual contract cost increases over the life of the agreement. Most recently, staff has been able to use this relationship with G4S to negotiate a three-year contract amendment with a six percent cost reduction in the first year.
In evaluating the proposed agreement, staff researched the potential to secure competing bids from other companies for jailer services, as well as the option to staff the jail with City employees, but at this time neither option appears to be financially superior to extending the existing agreement with G4S. The analysis to staff 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. As an example of the potential labor cost the City could incur, the City of Tustin pays up to $34 per hour to their Custody Officers, excluding benefits. Additionally, it is anticipated that City insurance costs would increase for both Workers Compensation and General Liability coverage if the City staffed the jail operations.
As for other outside contractors, staff is unaware of any qualified vendors currently operating in Orange County that are capable of providing jail services. In researching possible alternatives, staff learned that a few years ago the City of Westminster issued a "request for proposal" (RFP) for the provision of contract Custody Officers within their jail facility, soliciting bids from three vendors. Of the three vendors who were contacted, only G4S submitted a proposal and the City of Westminster subsequently issued a contract to G4S. Despite the few companies that evidently provide these types of services, G4S is considered the industry leader in this field and staff has been satisfied with the level of service provided by G4S over the term of their contract. G4S currently has jail contracts with Police Departments in the cities of Fullerton, Whittier, Buena Park and Costa Mesa.
In evaluating the proposed agreement, staff researched the potential to secure competing bids from other companies for jailer services, as well as the option to staff the jail with City employees, but at this time neither option appears to be financially superior to extending the existing agreement with G4S. The analysis to staff 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. As an example of the potential labor cost the City could incur, the City of Tustin pays up to $34 per hour to their Custody Officers, excluding benefits. Additionally, it is anticipated that City insurance costs would increase for both Workers Compensation and General Liability coverage if the City staffed the jail operations.
As for other outside contractors, staff is unaware of any qualified vendors currently operating in Orange County that are capable of providing jail services. In researching possible alternatives, staff learned that a few years ago the City of Westminster issued a "request for proposal" (RFP) for the provision of contract Custody Officers within their jail facility, soliciting bids from three vendors. Of the three vendors who were contacted, only G4S submitted a proposal and the City of Westminster subsequently issued a contract to G4S. Despite the few companies that evidently provide these types of services, G4S is considered the industry leader in this field and staff has been satisfied with the level of service provided by G4S over the term of their contract. G4S currently has jail contracts with Police Departments in the cities of Fullerton, Whittier, Buena Park and Costa Mesa.
FISCAL IMPACT/SOURCE OF FUNDING:
The total three-year cost of Amendment No. 1 is $918,852.80 and is a General Fund expense. The first year cost of Amendment No. 1 is $299,517.19, which includes a staff negotiated six percent reduction compared to the Fiscal Year 2020-2021 contract cost. If approved, the cost of Amendment No. 1 will be included in the Police Department's proposed Fiscal Year 2021-2022 budget submission.
GENERAL PLAN RELEVANCE:
PS 1.3