HomeMy WebLinkAboutF-19 Staff Report - Inter-Con Security CONSENT ITEM
F-19
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MICHAEL BERTELSEN, CHIEF OF POLICE
DATE: JUNE 21, 2021
SUBJECT: APPROVE A 1-YEAR EXTENSION AGREEMENT BETWEEN THE CITY OF
AZUSA AND INTER-CON SECURITY SYSTEMS, INC. FOR ONGOING PARKING
ENFORCEMENT SERVICES
BACKGROUND:
Since 2018 Inter-Con Security Systems, Inc. has been contracted to provide parking enforcement in the
City of Azusa. The service has proven to be reliable, with Inter-Con staff issuing approximately 900
parking citations monthly.
The current agreement between the City of Azusa and Inter-Con Security Systems expires on June 30,
2021 and a contract extension for the 2021-2022 fiscal year is required. This action approves a contract
extension between the City of Azusa and Inter-con Security Systems, for parking enforcement services.
RECOMMENDATIONS:
Staff recommends the City Council take the following actions:
1)Approve a 1-year extension agreement between the City of Azusa and Inter-Con Security
Systems, Inc. for parking enforcement services in an amount not to exceed $177,946.72
annually; and authorize the City Manager, or designee, to execute the agreement, in a
form acceptable to the City Attorney, on behalf of the City; and approve subject to non-
substantive changes approved by the City Attorney and City Manager.
APPROVED
CITY COUNCIL
6/21/2021
Inter-con Security Systems Agreement for Parking Services
June 21, 2021
Page 2
ANALYSIS:
Inter-Con Security Systems, Inc. is a leading U.S. owned Security Company which provides a full range
of physical security services to government and commercial customers. Parking enforcement is one of
the many services they offer. In addition to providing parking enforcement services to the City of Azusa,
they continue to contract with several other cities in the region as well.
On June 18, 2018 City Council approved a 3-year agreement with Inter-Con Security Systems, Inc. to
provide parking enforcement in the City of Azusa. The contract and franchise agreement include an
option for it to be extended for two separate one year extensions by mutual agreement of both parties.
The parking enforcement conducted by Inter-Con employees under this agreement is limited to
Municipal Code violations such as, parking in excess of 72 hours, prohibited signs/markings, limited or
restricted parking and parking in alley’s just to name a few. Any Vehicle Code violations they encounter
will be reported to a Police Department Community Service Officer or Police Officer for enforcement
action.
The service has proven to be reliable, with Inter-Con staff issuing approximately 900 parking citations
monthly.
FISCAL IMPACT:
Approval of this contract is expected to have a positive impact on the General Fund. The annual cost of
the service agreement with Inter-Con Security Systems, Inc. will not exceed $177,946.72. Citation
revenues generated by this program is expected to fully cover the cost of the contract and likely generate
additional revenues above the contract cost. $168,488 was included in the FY2021-22 Proposed Budget
under account 10-20-333-000-6498, and the difference of $9,458.72 ($177,946.72 - $168,488) will be
added to the FY 2021-22 budget after adoption.
Prepared by: Reviewed and Approved:
Chris Grant Mike Bertelsen
Administrative Captain Chief of Police
Fiscal Impact Reviewed by: Reviewed and Approved:
Talika M. Johnson Sergio Gonzalez
Director of Administrative Services City Manager
Attachments:
1. 2018 agreement between the City of Azusa and Inter-Con Security Systems Inc. for parking
enforcement services
2. Proposed Inter-Con Security Systems, Inc. parking enforcement extension
Attachment 1
CONFIDENTIAL FOR OFFICIAL USE ONLY PROPRIETARY/SOURCE SELECTION INFORMATION
This proposal includes data that shall not be disclosed outside City of Azusa and shall not be duplicated, used, or disclosed – in whole
or in part – for any purpose other than to evaluate this proposal. If, however, a contract is awarded to Inter-Con Security Systems,
Inc. as a result of – or in connection with – the submission of this data, City of Azusa shall have the right to duplicate, use, or disclose
the data to the extent provided in the resulting contract. This restriction does not limit City of Azusa’s right to use information
contained in this data if it is obtained from another source without restriction. The data subject to this restriction are contained in all
sheets of this assessment.
Inter-Con provides Equal Employment and Affirmative Action opportunities to minorities, females, veteran, and disabled individuals, as well as other
protected groups.
Parking Enforcement Extension Years 1 & 2 | Inter-Con Security Systems, Inc.
July 1st, 2021
Attachment 2
1
Post Exhibit
Labor Classification Schedule* Sun Mon Tues Wed Thur Fri Sat Total
HPW
Parking Enforcement Representative 06:30 – 16:30 - 10 10 10 10 - - 40
Parking Enforcement Representative 06:30 – 16:30 - - 10 10 10 10 - 40
Total Hours per Week 80
*Schedule includes a 30-min. unpaid meal break.
Inter-Con Option Year Extension
The initial term of our signed contract with the City of Azusa for Parking Enforcement Services is coming to an end on
June 30th, 2021. Inter-Con has been honored to have been the City’s chosen service provider, and we would be happy
to continue our relationship under the two available extension periods per Section 13 of our signed contract
which provides, “This Contract can be extended for two separate one-year extensions by mutual agreement of
both parties.”
In anticipation that the City would like to exercise these extensions, we have provided the following modification to our
rates for the next two years. Our modification adjusts our wages for employees by +$0.50/hour, which is in-line
with the scheduled raises they have received each year over the last three years of the contract.
Proposed Pay & Bill Rates
Inter-Con’s original awarded contract with the City was for a fixed bill rate over the length of a three-year contract.
Within that fixed rate, Inter-Con had accounted for $0.50/hour increases to personnel compensation each year.
As shown in the table below, we propose to continue this trend, which will allow us to maintain our wage premium
versus the nearby Los Angeles Minimum Wage as it was at the start of the contract. This premium at the start of the
contract was 13%, and under our proposed adjustment for the extension period, the premium will be 10%. We believe
this is an adequate premium to continue to attract and retain quality personnel who are a notch above the rest.
*Minimum wage for Los Angeles will adjust by CPI on 07/01/22. We have adjusted by an estimate of 2.5%.
$13.25
$14.25
$15.00 $15.00 $15.38 *
$15.00 $15.50 $16.00 $16.50 $17.00
$10.00
$11.00
$12.00
$13.00
$14.00
$15.00
$16.00
$17.00
$18.00
$19.00
$20.00
7/1/2018 7/1/2019 7/1/2020 7/1/2021 7/1/2022
Wage Compression -ICSS Proposed Wage
Los Angeles Minimum wage Covina Parking Wage
2
Our proposed pay and bill rate changes are shown below. Because our three-year bill rate was a comprehensive rate
weighted across three years of varying wages, the City has had the benefit of a bill rate in the third year of the contract
that was lower than it otherwise would have been under a contract with a separate rate for each year. In order to
illustrate the reasonableness of our bill rate increase in the extension periods, we have provided a table below:
Bill Rate Change
Period Underlying
Pay Rate
Associated
Bill Rate
Pay
Increase
%
Bill
Increase
%
Notes
Year 1 $15.00 $37.71 - -
Year 2 $15.50 $38.54 3.33% 2.23% The City has paid this rate for three years
Year 3 $16.00 $39.38 3.23% 2.15%
Extension
Year 1 $16.50 $40.22 3.13% 2.13%
The Extension Year 1 rate represents the 4th
year rate the City would have paid had the
City not been under a 3-year fixed rate.
Extension
Year 2 $17.00 $41.06 3.03% 2.09%
The Extension Year 2 rate represents the 5th
year rate the City would have paid had the
City not been under a 3-year fixed rate.
Pass-Through Medical Cost Estimate
Due to the enactment of the Affordable Care Act (“ACA”) and the mandate that employers provide medical insurance
to all employees working more than thirty hours per week, the City agrees to pay 100% of the direct pass-through costs
for all employees working more than thirty hours per week who enroll in the medical plan. The current plan offered to
employees is ACA-compliant and provided by Cigna.
Position Full Time
Employees
Monthly
Premium*
Annual
Cost
Parking Enforcement Representative 2 $442.98 $10,631.52
*Subject to change every January 1st
Extension Year 1 Cost Estimate – Effective July 1, 2021
Position
Hours
Per
Week
Hours
per Year
Bill
Rate
Annual
Cost
Parking Enforcement Representative 40 2,080 $40.22 $83,657.60
Parking Enforcement Representative 40 2,080 $40.22 $83,657.60
Subtotal Labor 80 4,160 $167,315.20
Medical Estimate $10,631.52
Total Annual Cost Estimate $177,946.72
Extension Year 2 Cost Estimate – Effective July 1, 2022
Position
Hours
Per
Week
Hours
per Year
Bill
Rate
Annual
Cost
Parking Enforcement Representative 40 2,080 $41.06 $85,404.80
Parking Enforcement Representative 40 2,080 $41.06 $83,404.80
Subtotal Labor 80 4,160 $170,809.60
Medical Estimate $10,631.52
Total Annual Cost Estimate $181,441.12