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HomeMy WebLinkAbout25E - AMENDMENT TO AGMT FOR PARKING ENCFORCEMENTREQUEST 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 Agreement Amendment with Serco, Inc. August 18, 2020 Page 2 accommodating, professional, and consistent in its provision of parking enforcement services, and staff recommends approval of this agreement amendment. FISCAL IMPACT Funds in the amount of $705,553.53 will be expended as follows: Fiscal Year Accounting Unit- Accounting Unit, Account Amount Account # Description FY 2020-21 01114405 62300 Traffic Division — Contract Services $705,553.53 Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director — Finance and Management Services Agency Submitted By: David Valentin, Chief of Police - Police Department Exhibit: 1. Amendment to Agreement with Serco, Inc. 25E-2 AGREEMENT WITH SERCO, INC. THIS SECOND AMENDMENT to the above -referenced agreement is entered into on August 18, 2020, by and between Serco, Inc. ("Consultant") and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. The parties entered into Agreement No. A-2018-158, dated June 19, 2018 ("Agreement"), for Consultant to provide parking control enforcement services for the City. B. The parties entered into a First Amendment to the Agreement on August 21, 2018 (A-2018- 222) to amend selected terms and conditions to the Agreement. On June 10, 2020, the parties exercised the first of three one (1) year options to extend the Agreement until June 30, 2021 (#A-2018-158-01). The Agreement is current and in effect. C. The parties now wish to further amend the Agreement to increase the overall compensation reflective of Consumer Price Index ("CPf') increases, and to amend term language provided in Exhibit A, Scope of Work, and clarify Section 3 of the Agreement. The Parties therefore agree: 1. Section 1, Scope of Services — Exhibit A, is amended to remove the term language on page 17 of the Scope of Work. The parties agree that the term language provided in Section 3 of the Agreement is the controlling language. 2. Section 2, Compensation, is amended to increase the overall compensation for additional services provided in the first extension to the Agreement, #A-2018-158-01, for the period until June 30, 2021. Additional compensation, reflected by CPI increases, in the amount of $705,553.53, including a 10% contingency ($64,141.23) for services to be provided at the sole discretion of the City, shall be added to the not -to -exceed amount for the Agreement. 3. Except as modified by this Second Amendment, all terms and conditions of the Agreement, as amended, shall remain in full force and effect. Parties also agree and understand that pursuant to Section 14 of the Agreement, in the event of a conflict between the terms of the Agreement, as amended, and any attachments hereto, the terms of the Agreement shall prevail. IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to the Agreement on the date and year first written above. ATTEST CITY OF SANTA ANA DAISY GOMEZ Clerk of the Council KRISTINE RIDGE City Manager Page 1 of 2 25E-3 APPROVED AS TO FORM SON R. CARVALHO, City Attorney By: _��uwl— � T GOSIAN Senior Assistant City Attorney David Valentin Chief of Police SERCO, INC. Da-�Cu--A By: David Cornell Title: Sr. Manager, Contracts Page 2 of 2 25E-4