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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.
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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
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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
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