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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 Page 2 of 3 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