25E - AMENDMENT TO AGMT FOR PARKING ENCFORCEMENT

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 18, 2020 TITLE: APPROVE AN AMENDMENT TO THE AGREEMENT WITH SERCO INC. IN THE AMOUNT OF $705,553.53 FOR PARKING ENFORCEMENT SERVICES FOR THE POLICE DEPARTMENT (GENERAL FUND) /s/Kristine Ridge CITY MANAGER CLERK OF COUNCIL USE ONLY: UT00062wo, ❑ As Recommended ❑ As Amended ❑ Ordinance on V Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For weP►111►117g1iC07 FILE NUMBER RECOMMENDED ACTION Authorize the City Manager to execute an amendment to the agreement with Serco, Inc. for parking enforcement services, in the amount of $705,553.53, including a 10% contingency of $64,141.23 for the period of July 1, 2020 through June 30, 2021, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION On June 19, 2018, the Council approved agreement A-2018-158 with Serco, Inc (Serco). to provide parking enforcement services for the Police Department. Serco performs the enforcement of street sweeping violations and enforcement of other designated sections of the Santa Ana Municipal Code and California Vehicle Code, as authorized by the Chief of Police. Under this agreement, Serco provides Parking Ambassadors, a Parking Enforcement Supervisor, vehicles, fuel, uniforms, and other miscellaneous supplies. Before they are deployed, Serco employees are required to complete training related to Police Department parking procedures, equipment, vehicles operations, and traffic control. In addition, Serco employees receive training in basic customer service, including conflict resolution, handling difficult customers, and cultural diversity. The original term of the agreement covered the two-year period of July 1, 2018 through June 30, 2020. An extension letter was issued to extend the term of the agreement through June 30, 2021. At the conclusion of the initial two-year term of the agreement, Serco submitted a letter to the Police Department requesting a 23% increase to cover the increased cost of providing these services. Police Department staff met with Serco management and negotiated a more modest 5.5% CPI increase, which is more reflective of the U.S. Bureau of Labor Statistics CPI increase covering that same period. Asa result, this amendment will add funding in the amount of $705,553.53, including a 10% contingency of $64,141.23, to fund these services for the period of July 1, 2020 through June 30, 2021 (Exhibit 1). The amendment will also provide reimbursement in the amount of $6,120 for a separate annual lease agreement between the City and Serco, for office space and a parking stall at the City Yard, which was not part of Serco's original proposal. Lastly, the amendment clarifies that the original agreement provided for three one-year extensions, not three two-year extensions. Serco has been 25E-1