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HomeMy WebLinkAboutItem 2e - Agreement for Parking Enforcement ServicesGgLTF O R.Vj�"i 1r 3 Ie<orpor 1903 Augua[ 5� %Unity 0 STAFF REPORT Police Department DATE: January 7, 2014 TO: Honorable Mayor and City Council FROM: Robert Guthrie, Chief of Police By: Jennifer Brutus, Management Analyst SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH INTER -CON SECURITY SYSTEMS, INC. FOR OFFICIAL PARKING ENFORCEMENT SERVICES FROM JANUARY 8, 2014, THROUGH JUNE 30, 2017 Recommendation: Approve SUMMARY The City has a professional services agreement with Inter -Con Security Systems, Inc. for parking enforcement services, and the current agreement expires on January 7, 2014. It is recommended that the City Council approve and execute a new professional services agreement with Inter -Con for the period of January 8, 2014, through June 30, 2017, with the option to renew on a year -to -year basis for a maximum of three additional one -year periods. BACKGROUND Inter -Con has been the City's parking enforcement services provider since 2007. The company has been responsible for providing overnight parking, daytime street sweeping, and general parking enforcement throughout the City. Even though Inter - Con's performance has been positive and adequate over the past six years, a Request for Proposals was conducted in November 2013 to ensure the best and most qualified parking enforcement services company was being utilized to meet the needs of the City. Given that it had been over six years since the City last bid the contract for parking enforcement services, it was appropriate to evaluate whether other parking enforcement services companies could provide superior service. While past practice has provided preference to local vendors, the City's purchasing policy states that proximity to the City and convenience alone are not acceptable reasons for awarding a bid to a company other than the lowest responsive, responsible bidder. Official Parking Enforcement Services Agreement with Inter -Con January 7, 2014 Page 2 of 4 After a two week submission period during which a Notice Inviting Proposals was published four times in the Arcadia Weekly, and nine vendors were sent a Request for Proposal, four parking enforcement proposals were received on December 3, 2013. A committee comprised of four City staff members convened to review and rate the proposals using a 100 point evaluation system. The proposals were evaluated according to thoroughness and understanding of work, related experience, references, quality of proposal, and costs. Figure 1.1 is a summary of the average scores and final rank. Figure 1.1 — Average Scores for Parking Enforcement Proposals Though cost were considered as part of the evaluation of all proposals, it was not the sole deciding factor. An analysis of scores revealed that Inter -Con is the most qualified and best - suited parking enforcement company for the City. Inter -Con is a San Gabriel Valley based company with its headquarters located 7.6 miles from the City. The company has over 40 years of experience in providing customized security and parking enforcement solutions for federal, state, and local governments. Other cities that have contracted with Inter -Con for parking enforcement services include Alhambra, Pasadena, South Pasadena, San Gabriel, La Verne, Glendora, and Covina. 2 THOROUGHNESS & Company Name and UNDERSTANDING RELATED PROPOSAL SUB COST GRAND Headquarters Location OF SCOPE OF WORK EXPERIENCE REFERENCES QUALITY TOTAL PROPOSAL TOTAL (1) Inter -Con Security Systems, Inc. 23.75 18.75 15 19.5 77 18 95 Pasadena, CA (2) SP Plus Municipal Services 15.5 12.25 11.75 13.75 53.25 9.5 62.75 Los Angeles, CA (3) ACE Parking 18.25 11.25 12.5 14.25 56.25 5.75 62 San Diego, CA (4) G4S Secure Solutions (USA) Inc. 10.75 10.5 12 11.25 44.5 12.25 56.75 Los Angeles, CA Though cost were considered as part of the evaluation of all proposals, it was not the sole deciding factor. An analysis of scores revealed that Inter -Con is the most qualified and best - suited parking enforcement company for the City. Inter -Con is a San Gabriel Valley based company with its headquarters located 7.6 miles from the City. The company has over 40 years of experience in providing customized security and parking enforcement solutions for federal, state, and local governments. Other cities that have contracted with Inter -Con for parking enforcement services include Alhambra, Pasadena, South Pasadena, San Gabriel, La Verne, Glendora, and Covina. 2 Official Parking Enforcement Services Agreement with Inter -Con January 7, 2014 Page 3 of 4 DISCUSSION The utilization of parking enforcement will enhance public safety and traffic flow in the community and assist with distributing limited parking resources to a variety of users. Inter -Con's parking enforcement services via an electronic citation system will generate approximately $550,000 in annual revenue for the City. This equates to over $1.9 million in fines collected over the next 3.5 years. The proposed project staffing plan is comprised of four contract employees. Inter -Con will provide one full -time Senior Parking Enforcement Representative (SPER) and two full -time and one part -time Parking Enforcement Representatives (PER). The company will also have available a minimum of two part -time Reserve Force Parking Enforcement Representatives to ensure post coverage at all times. According to the Professional Services Agreement, Inter -Con will pay the City $50 per quarter hour (15 minutes), up to a maximum of $200 for each unfilled 8 -hour shift. This clause remains because an unfilled shift by Inter -Con equates to a lack of enforcement and revenue for the City. In addition, Inter -Con will pay $5.00 for each voided citation due to an unsatisfactory or unjustified citation. This provision is to prevent over - zealous employees from issuing unwarranted citations and to cut down on administrative reviews of citations. Inter -Con Security will continue to be responsible for their own hiring, training, and scheduling; as well as any discipline and termination of staff members. The company will supply properly marked uniforms and two vehicles. The contract will cover a period of 3.5 years: January 8, 2013, through June 30, 2017, which will bring the contract schedule back into alignment with the City's fiscal year. The current contract was only extended through January 2014 due to uncertainties brought about by the Affordable Care Act (ACA). The proposed agreement reflects a negotiated compromise given continued uncertainties in the ACA. The ACA mandates that, effective January 1, 2015, all employers provide affordable healthcare plans to their full -time employees. Inter -Con will provide and pay all of its employees' healthcare premiums beginning January 1, 2015; thus, the associated costs are reflected in the Agreement. The pricing factored into the fully burdened billing rates in this Agreement are based on current medical insurance pricing using the best information available; however, due to the uncertainty surrounding the effects of the ACA on medical insurance plan costs as reported by industry experts, actual premium rates for Year 2015 -16 may vary from the premium rate proposed in the Agreement. Therefore, it is anticipated that the total cost per year, beginning Year 2015 -16, may increase or decrease due 3 Official Parking Enforcement Services Agreement with Inter -Con January 7, 2014 Page 4 of 4 to the specific demographic information of Inter -Con's employees, or the volatile nature of insurance rates. Inter -Con has agreed to discuss pricing options prior to January 1, 2015, and the parties will develop an agreeable plan for the following year. The total cost for year one is $163,720.96 with an additional $4,911.63 allocated for contingencies. The contract price will not exceed $168,632.59 and this price will remain the same for year two and three if there are no changes in medical costs. Any changes will result in a modification of the proposed fully burdened bill rates and an amendment to the Agreement. Inter -Con has performed successfully in the City of Arcadia for the past six years and their proposal rates highest among those submitted. It is therefore recommended that the City Council approve Inter -Con as the Department's provider of official parking enforcement services for the period of January 8, 2014, through July 30, 2017, with the option to renew on a year -to -year basis for three additional one -year periods. FISCAL IMPACT On an annualized basis, the total cost for year one is expected to not exceed $168,632.59. Annual revenues to the City as a result of Inter -Con's efforts are expected to be approximately $550,000. The six month period of January 8, 2014, to June 30, 2014, has been budgeted in the FY 2013 -14 Operating Budget. The remaining three years will be budgeted annually as part of the budget adoption process. RECOMMENDATION It is recommended that the City Council authorize and direct the City Manager to execute a Professional Services Agreement with Inter -Con Security Systems, Inc. for official parking enforcement services from January 8, 2014, through June 30, 2017. Approve Dominic Lanza City Manager 4