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HomeMy WebLinkAboutE-6 Staff Report - Inter-Con Security CONSENT ITEM E-6 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: ROCKY WENRICK, CHIEF OF POLICE DATE: OCTOBER 2, 2023 SUBJECT: APPROVE A 3-YEAR 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 expired on June 30, 2023. A contract for continued parking enforcement service is required. This action approves a 3-year Agreement between the City of Azusa and Inter-Con Security Systems for Parking Enforcement Services with the option for two (2) one (1) year extensions. RECOMMENDATIONS: Staff recommends the City Council take the following actions: 1) Approve a 3-year Agreement between the City of Azusa and Inter-Con Security Systems, Inc. for parking enforcement services with the option for two (2) one (1) year extensions. 2) 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 October 2, 2023 Inter-con Security Systems Agreement for Parking Services October 2, 2023 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, Inter-Con Security Systems provide unarmed security services to our city facilities. They continue to contract with several other cities in the region as well. On June 18, 2018 the 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 includes an option for it to be extended for two additional one-year extensions by mutual agreement of both parties. The first one-year extension was approved on July 1, 2021 and expired on June 30, 2022. The second and final extension allowed under the original 2018 contract and franchise agreement was effective July 1, 2022 and expired June 30, 2023. The parking enforcement conducted by Inter-Con employees under this agreement is limited to California Vehicle Code Sections and Azusa Municipal Code Sections related to on-street parking laws and posted off-street parking lot 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. Parking enforcement officers will be under the direct supervision and follow the direction of the police watch commander. The service has proven to be reliable, with Inter-Con staff issuing approximately 900 parking citations monthly. Inter-Con Security currently provides contact Security Services to the City of Azusa in addition to contract parking enforcement. By entering into this contract, it allows Inter-Con to cross train employees to handle both security services and parking enforcement services for the City of Azusa. 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 $202,800.00 in year one. Citation revenues generated by this program are expected to fully cover the cost of the contract and likely generate additional revenues above the contract cost. $196,042.00 was included in the FY2023-24 Proposed Budget under account 10-20-333-000-6498, and the difference of $6,758.00 will be transferred to the FY 2023-24 budget after adoption. Prepared by: Reviewed and Approved: Thomas Avila Rocky Wenrick Lieutenant Chief of Police Fiscal Impact Reviewed by: Reviewed and Approved: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager Attachment: Proposed Inter-Con Security Systems, Inc. parking enforcement extension 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 5-Year Cost Proposal| Inter-Con Security Systems, Inc. JULY 28, 2023 Attachment 1 1 EXECUTIVE SUMMARY On December 12, 2022, ahead of the end of our contract year on July 1st, 2023, and in anticipation of a contract extension, Inter-Con submitted a modification request representing a wage and rate increase in-line with inflation at the time. After July 1st, 2023, the City chose not to extend our contract for another year and requested a cost proposal for the next five years, which we are pleased to present here. Inter-Con’s proposal for a new five-year contract is based on a wage realignment with the local market. Azusa Parking personnel currently earn just $17.65/hour while the median wage for personnel in this industry has increased to $20.16/hour. Furthermore, many other parking programs in the Los Angeles County and the San Gabriel Valley now pay $20.00/hour, with grave shift positions paid as high as $27.00/hour. Given this significant shift in the labor market for parking enforcement, Inter-Con has proposed a starting wage of $20.00/hour in the first year of the program. Each year thereafter, we have increased wages by $0.75/hour, which represents between a 3.4% and 3.8% increase each year – a figure we believe should track with inflation over the next five years. PROPOSED RATES & BUDGET Our proposed rates and budget for the next five years is shown below. Year One Labor Categories Hourly Pay Rate Hourly Bill Rate Weekly Hours Annual Hours Weekly Cost Annualized Cost Parking Enforcement Rep. A $20.00 $48.75 40 2,080 $1,950.00 $101,400.00 Parking Enforcement Rep. B $20.00 $48.75 40 2,080 $1,950.00 $101,400.00 Totals 80 4,160 $3,900.00 $202,800.00 Year Two Labor Categories Hourly Pay Rate Hourly Bill Rate Weekly Hours Annual Hours Weekly Cost Annualized Cost Parking Enforcement Rep. A $20.75 $50.58 40 2,080 $2,023.20 $105,206.40 Parking Enforcement Rep. B $20.75 $50.58 40 2,080 $2,023.20 $105,206.40 Totals 80 4,160 $4,046.40 $210,412.80 Year Three Labor Categories Hourly Pay Rate Hourly Bill Rate Weekly Hours Annual Hours Weekly Cost Annualized Cost Parking Enforcement Rep. A $21.50 $52.40 40 2,080 $2,096.00 $108,992.00 Parking Enforcement Rep. B $21.50 $52.40 40 2,080 $2,096.00 $108,992.00 Totals 80 4,160 $4,192.00 $217,984.00 Year Four Labor Categories Hourly Pay Rate Hourly Bill Rate Weekly Hours Annual Hours Weekly Cost Annualized Cost Parking Enforcement Rep. A $22.25 $54.23 40 2,080 $2,169.20 $112,798.40 Parking Enforcement Rep. B $22.25 $54.23 40 2,080 $2,169.20 $112,798.40 Totals 80 4,160 $4,338.40 $225,596.80 2 Year Five Labor Categories Hourly Pay Rate Hourly Bill Rate Weekly Hours Annual Hours Weekly Cost Annualized Cost Parking Enforcement Rep. A $23.00 $56.06 40 2,080 $2,242.40 $116,604.80 Parking Enforcement Rep. B $23.00 $56.06 40 2,080 $2,242.40 $116,604.80 Totals 80 4,160 $4,484.80 $233,209.60 Grand Total 5-year Cost $1,090,003.20 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 Aetna. Position Full Time Employees* Monthly Premium** Annual Cost Parking Enforcement Rep. 0 $442.98 $0.00 *No employees are currently enrolled in the program. ** Subject to change every January 1st. Our expected cost for this program eff. January 1st, 2024, will be $460.70. POST EXHIBIT Labor Classification Schedule Sun Mon Tues Wed Thu Fri Sat Total HPW** Parking Enforcement Rep. A 06:30 - 04:30* - - 10 10 10 10 - 40 Parking Enforcement Rep. B 06:30 - 04:30* - 10 10 10 10 - - 40 Total Hours per Week 80 *Schedule includes a 30-min unpaid meal break. **Post exhibit reflects current staffing and hours per week, which are reduced due to COVID. PRICE ASSUMPTIONS • All full-time employees receive a holiday benefit of eight (8) paid hours, included in the bill rate. Inter-Con recognizes ten (10) holidays for City of Azusa Parking Enforcement employees: New Year’s Day, MLK Jr. Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day. • Forty (40) hours of paid time off (PTO) are provided to every full-time employee. • Sick leave of twenty-four (24) hours for part-time employees to match the requirements of CA sick leave law. • Forty (40) hours of new hire training included in the bill rate. • Uniform costs included in the rate. • Two (2) vehicles and all associated costs are included in the bill rate. • Overtime or Temporary Additional Services incurred outside the scope of the weekly hours quoted above will be billed out an OT rate at 1.5x the regular rate.