HomeMy WebLinkAboutItem 13j - Official Parking Enforcement Services
DATE: June 19, 2018
TO: Honorable Mayor and City Council
FROM: Robert Guthrie, Chief of Police
By: Dr. Jennifer Brutus, Sr. Management Analyst
SUBJECT: EXTENSION TO THE PROFESSIONAL SERVICES AGREEMENT WITH
INTER-CON SECURITY SYSTEMS, INC. FOR OFFICIAL PARKING
ENFORCEMENT SERVICES IN THE AMOUNT OF $192,494
Recommendation: Approve
SUMMARY
The City has a Professional Services Agreement with Inter-Con Security Systems, Inc.
for parking enforcement services, which expires on June 30, 2018. It is recommended
that the City Council approve, and authorize and direct the City Manager to execute a
one year extension to the Professional Services Agreement with Inter-Con for the period
of July 1, 2018, through June 30, 2019, in an amount not to exceed $192,494.
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.
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. Inter-Con has had a good relationship with the Police Department (the
“Department”) and is the only local firm that provides parking enforcement services to
our area. Other cities that have contracted with Inter-Con for parking enforcement
services include the Cities of Alhambra, Pasadena, South Pasadena, San Gabriel, La
Verne, Glendora, and Covina.
PSA Extension for Parking Enforcement Services
June 19, 2018
Page 2 of 3
Cities utilize parking enforcement to enhance public safety and traffic flow, and assist
with distributing limited parking resources to a variety of users. The Arcadia Municipal
Code also prohibits parking on public streets between the hours of 2:30 a.m. and 5:30
a.m. These restrictions were enacted to increase safety and security, as well as
enhance the City’s aesthetics.
Since the start of the current parking enforcement contract in 2014, the program
generated $1.9 million in parking citation revenue as of the close of FY17-18 and the
program is projected to continue bringing in $500,000 annually.
DISCUSSION
The City's current annual Agreement with Inter-Con requires the City to pay $179,733;
however, to extend services for FY 2018-19, from July 1, 2018, through June 30, 2019, the
fee will be $192,494. The contract price is increasing by $12,761, which reflects a 7%
increase in bill and pay rates. Inter-con communicated that the increase is necessary for
an increase in employee pay rates to prevent additional employee turnover. Along with the
hourly wage, the company’s employee medical costs are rising.
L.A. County Minimum wage is rising to $13.25 effective July 1, 2018, and Inter-Con
speculates that if the City does not increase the hourly rate of its parking enforcement
officers to a higher premium above minimum wage, then employees may possibly go
elsewhere to perform less demanding and more desirable work. Parking enforcement
officers are required to work night time hours, have high a level of contact with the public,
and are constantly outdoors. The LA County minimum wage will continue to increase
annually over the next three years and by July 1, 2020, minimum wage will be $15.00 per
hour. Thus, the Department anticipates further requested increases in future years.
In addition, parking enforcement revenue has been slightly under budget in some quarters
due to high employee turnover. Turnover rose 0% in the first three years of the contract to
26% in FY2016-17 to now 56% for the current year. Therefore, due to increases in
minimum wage and the difficulty in hiring and retaining quality personnel, it is in the best
interest of the City to honor a 7% wage increase to retain good employees and stay
competitive. In accordance with the Agreement, Inter-Con employees will continue to
receive annual performance evaluations.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the
environment. Thus, this matter is exempt under CEQA.
PSA Extension for Parking Enforcement Services
June 19, 2018
Page 2 of 3
FISCAL IMPACT
For the term of the professional services agreement, from July 1, 2018, to June 30, 2019,
the fee for parking enforcement services will be $192,494. Sufficient funds have been
budgeted in the City’s Operating Budget for FY 2018-19.
RECOMMENDATION
It is recommended that the City Council approve, and authorize and direct the City
Manager to execute a one year extension to the Professional Services Agreement with
Inter-Con Security Systems, Inc. for official parking enforcement in the amount of
$192,494.
Attachment: Proposed Amendment No. 3 to Professional Services Agreement
1
AMENDMENT NO. 3 TO THE PROFESSIONAL SERVICES AGREEMENT
FOR OFFICIAL PARKING ENFORCEMENT SERVICES WITH INTER-CON
SECURITY SYSTEMS, INC.
This Amendment No. 3 (“Amendment No. 3.”) is hereby entered into by and
between the City of Arcadia, a charter city organized under the Constitution and laws of
the State of California, and Inter-Con Security Systems, Inc., a California Corporation,
with respect to that certain Professional Services Agreement between the parties dated
January 22, 2014 (“Agreement”), as amended by Amendment No. 1 dated July 6, 2016,
and further amendment by Amendment No. 2 dated July 5, 2017.
The Parties agree as follows:
1. Section 3.1.2 of the Agreement is amended by extending the term to July 1,
2018, through June 30, 2019 (“Extended Term”).
2. Section 3.3.1 of the Agreement is amended to provide that for the Extended
Term of July 1, 2018, through June 30, 2019, the City agrees to pay Inter-Con
Security Systems, Inc. a total sum not to exceed one hundred ninety-two
thousand four hundred ninety-four dollars and zero cents ($192,494.00) as
referenced in the attached “Exhibit C”.
3. All of the remaining terms and provisions of the Agreement are hereby
reaffirmed.
[SIGNATURES ON NEXT PAGE]
2
In witness whereof the Parties have executed this Amendment No. 3 on the date
set forth below.
CITY OF ARCADIA INTER-CON SECURITY SYSTEMS, INC.
Dominic Lazzaretto Enrique Hernandez
City Manager President and CEO
ATTEST:
___________________________
City Clerk
Date: ______________________________
___________________________________
Neil Martau
Chief Administrative Officer
Date:
Stephen P. Deitsch
City Attorney
CONCUR:
_________________________________
Robert Guthrie
Chief of Police
3
Exhibit "C"
COMPENSATION
The Agreement is amended to provide that the total compensation for the period from
July 1, 2018, through June 30, 2019, shall not exceed one hundred ninety-two thousand
four hundred ninety-four dollars and zero cents ($192,494.00).
The pay rate increases are as follows:
Position Classification Current Pay Rate Pay Rate %
Increase Variance Proposed Pay
Rate
Proposed OT
Pay Rate
Parking Enforcement Rep 12.87$ 7.0%0.90$ 13.77$ 20.66$
Senior Parking Enforcement Rep 15.00$ 7.0%1.05$ 16.05$ 24.08$
Position Classification Current
Bill Rate
Bill Rate %
Increase Variance Proposed Bill
Rate
Proposed OT
Bill Rate
Parking Enforcement Rep 26.25$ 7.0%1.84$ 28.09$ 42.14$
Senior Parking Enforcement Rep 28.66$ 7.0%2.01$ 30.67$ 46.01$
Proposed Increases and Budget for Arcadia Parking Enforcement Effective July 01, 2018
Hours per
Year Bill Rate Annual Cost Hours per
Year
Holiday/OT
Rate Annual Cost
Parking Enforcement Rep 88.00 4,372.57 28.09$ 122,825.53$ 128.00 42.14$ 5,393.92$ 128,219.45$
Senior Parking Enforcement Rep 40.00 1,981.71 30.67$ 60,779.18$ 64.00 46.01$ 2,944.64$ 63,723.82$
Subtotal 128.00 6,354.29 183,604.71$ 192.00 88.15$ 8,338.56$ 191,943.27$
550.73$
192,494.00$
Budget 2018-2019 Fiscal Year
Holiday
Estimated Medical Cost
Estimated Grand Total Cost
Total Annual
Cost
RegularHours per
WeekPosition Classification
The price increase is to accommodate a seven percent (7%) increase in employee pay-
rates as referenced in Section 1.6 of the Agreement under Exhibit “C” – Compensation.
Post Exhibit:
Post Type Number of Posts Days Covered Start End Avg. HPD Avg. HPW
Parking Enforcement Rep 2 M-F 6:00 14:00 16 80
Parking Enforcement Rep 1 Sa-Su 2:00 6:00 4 8
Senior Parking Enforcement Rep 1 M-Su 10:00 18:00 8 40