HomeMy WebLinkAboutItem 13j - Official Parking Enforcement Services
DATE: June 18, 2019
TO: Honorable Mayor and City Council
FROM: Robert Guthrie, Chief of Police
By: Dr. Jennifer Brutus, Sr. Management Analyst
SUBJECT: AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT
WITH INTER-CON SECURITY SYSTEMS, INC. FOR OFFICIAL
PARKING ENFORCEMENT SERVICES IN THE AMOUNT OF $209,402
Recommendation: Approve
SUMMARY
The City has a Professional Services Agreement (“Agreement”) with Inter-Con
Security Systems, Inc. for parking enforcement services, which expires on June 30,
2019. It is recommended that the City Council approve, and authorize and direct the
City Manager to execute an amendment to the Professional Services Agreement with
Inter-Con in an amount not to exceed $209,402.
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 head quarters 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 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
Alhambra, Pasadena, South Pasadena, San Gabriel, La Verne, Glendora, and
Covina.
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
Professional Services Agreement Amendment
for Official Parking Enforcement Services
June 18, 2019
Page 2 of 3
enhance the City’s aesthetics. The program brings in approximately $500,000
annually.
DISCUSSION
The City's current annual Agreement with Inter-Con requires the City to pay $192,494;
however, to extend services for FY 2019-20, the fee will be $209,402. The contract
price is increasing by $16,908, which reflects an 8.78% increase in the billing rate
(which includes a 7.5% increase in labor pay rates).
Similar to the contract’s price increase last year (7%), the cost is rising again due to
California’s annual minimum wage increase. LA County’s Minimum Wage will continue
to increase by $1.00 every year and by January 1, 2022, minimum wage will be $15.00
per hour.
Inter-Con projects that by increasing their labor rate to a premium above current
minimum wage, parking enforcement officers will be less inclined to 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.
Thus, Inter-Con has experienced increased pressure to raise their labor rate in order to
attract and retain qualified employees, and ensure effective levels of staffing for this
program as the labor market continues to evolve.
It should also be noted that parking enforcement revenue has been slightly under
budget in some quarters due to high employee turnover. Turnover reached an all-time
high in FY 2016-17 at 56% and decreased significantly in FY 2018-19. By the end of
March 2019 (quarter 3), turnover was equal to 8.3%. Overall, the Police Department’s
Traffic Unit and Inter-Con are continuing to work together to improve turnover rates and
get the parking enforcement program back to full-staffing.
Therefore, due to increases in minimum wage and the difficulty in hiring and retaining
quality personnel, it is recommended that the City honor the contract price 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.
Professional Services Agreement Amendment
for Official Parking Enforcement Services
June 18, 2019
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FISCAL IMPACT
For the extension term of the Agreement, from July 1, 2019 to June 30, 2020, the fee
for parking enforcement services will be $209,402. This amount has been budgeted in
the City’s FY 2019-20 Operating Budget.
RECOMMENDATION
It is recommended that the City Council approve, and authorize and direct the City
Manager to execute an amendment to the Professional Services Agreement with
Inter-Con Security Systems, Inc. for official parking enforcement services, in the amount
of $209,402.
Attachment: Proposed Professional Services Agreement Amendment No. 4