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HomeMy WebLinkAboutItem 32 - Approve Fourth Amendment to the Agreement with LAZ Parking for Parking Enforcement Services Police Department www.santa-ana.org/pd Item # 32 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report June 21, 2022 TOPIC: Approve Fourth Amendment to the Agreement with LAZ Parking for Parking Enforcement Services AGENDA TITLE: Approve Fourth Amendment to the Agreement with LAZ Parking in the amount of $826,255 for Parking Enforcement Services (General Fund) RECOMMENDED ACTION Authorize the City Manager to execute the fourth amendment to the agreement with LAZ Karp Associates, LLC, for parking enforcement services for the period of July 1, 2022 through June 30, 2023, in an amount not to exceed $826,255, including a 10% contingency ($75,114), subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION On June 19, 2018, the City Council approved agreement A-2018-158 with Serco, Inc. to provide parking enforcement services for the Police Department. The City consented to LAZ Karp Associates’ (LAZ) acquisition of Serco’s parking business in January 2021. LAZ 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, LAZ provides Parking Ambassadors, a Parking Enforcement Supervisor, vehicles, fuel, uniforms, and other miscellaneous supplies. Before they are deployed, LAZ employees must complete training related to Police Department parking procedures, equipment, vehicle operations, and traffic control. In addition, LAZ 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. The first one-year extension included an amount of $705,553, including a 10% contingency ($64,141), to fund these services for the period of July 1, 2020, through June 30, 2021. The second one-year extension remained the same as the first one-year extension at $705,553, included a 10% contingency ($64,141) that funded these services for the period of July 1, 2021 through June 30, 2022. The Department is electing Approve Fourth Amendment to the Agreement with LAZ Parking for Parking Enforcement Services June 21, 2022 Page 2 2 7 6 2 to exercise the third and final one-year extension for the period of July 1, 2022 through June 30, 2023. During this contract extension, LAZ will include the purchase of an additional enforcement vehicle. In addition, one additional Parking Ambassador (PA) will be hired to increase existing staff ratios. The existing PAs will receive a modest increase to their salaries. This will allow LAZ to remain competitive in their respective market in regards to hiring and retaining employees. LAZ has been accommodating, professional and consistent in its provision of parking enforcement services, and staff recommends approval of this agreement amendment. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds in the amount of $826,255 will be available in the Police Department’s Traffic Division, Contract Services account no. (01114405-62300) upon City Council adoption of the FY 2023-23 annual budget. EXHIBIT(S) 1. Amendment to Agreement with LAZ Parking Submitted By: David Valentin, Police Chief Approved By: Kristine Ridge, City Manager Exhibit 1 FOUTH AMENDMENT TO ENFORCEMENT SERVICES AGREEMENT WITH LAZ PARKING THIS FOURTH AMENDMENT to the above-referenced agreement is entered into on June 21, 2022, by and between LAZ Karp Associates, LLC, a Connecticut limited liability company (“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. On June 19, 2018, the City entered into Agreement No. A-2018-158 (“Agreement”) with SERCO, Inc., to provide parking control enforcement services for the City. B. The Agreement was subsequently amended on August 21, 2018 (A-2018-222) to amend selected terms and conditions to the Agreement. This was followed up by a Second Amendment to the Agreement dated August 18, 2020 to increase the overall compensation and clarify terms and conditions within the Agreement and the Scope of Work. C. On June 10, 2020, SERCO and the City exercised the first of three one (1) year options to extend the Agreement on June 10, 2020 (#A-2018-158-01) until June 30, 2021. D. On January 21, 2021, the City consented to a request from LAZ Karp Associates, LLC (“Consultant”) to be assigned the duties and responsibilities related to the above referenced Agreement, as amended (A-2020-169-01). Effective January 21, 2021, Consultant became a party to this Agreement, as amended. E. On June 1, 2021, the parties entered into a Third Amendment to the Agreement (#A-2021-083) to increase the overall compensation reflective of Consumer Price Index (“CPI”) increases, and exercised the second option to extend the Agreement, as previously allowed under the terms of the Agreement, as amended, through June 30, 2022. The Agreement is current and in effect. F. The parties now wish to further amend the agreement to increase the overall compensation to cover increased services provided by the Agreement, as amended, and exercise the third and final option to extend the Agreement. The Parties therefore agree: 1. Section 2, Compensation, is amended to increase the overall compensation of the Agreement. Compensation provided for the third and final extension to the Agreement, as detailed below, includes costs to cover this final extension of the Agreement, and includes additional costs and services detailed in Exhibit A to this Fourth Amendment. The total amount to be expended during this final one-year term of the Agreement, as detailed in this Fourth Amendment, shall not exceed $826,255, including a 10% contingency ($75,114) for services to be provided at the sole discretion of the City. The compensation detailed for this Fourth Amendment, shall be added to the not-to-exceed amount for the Agreement, as amended. Page 1 of 2 2. Section 3, Term. The parties agree to extend the term of the Agreement for an additional one (1) year period from July 1, 2022 through June 30, 2023. The parties agree and understand that no further term extensions are available to exercise. No other changes are contemplated to this section. 3. Except as modified by this Fourth Amendment, all terms and conditions of the Agreement, as amended, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Fourth Amendment to the Agreement on the date and year first written above. ATTEST CITY OF SANTA ANA _______________________________ DAISY GOMEZ ______________________________ KRISTINE RIDGE Clerk of the Council City Manager APPROVED AS TO FORM LAZ KARP ASSOCIATES, LLC SO ney By _ TAMARA BOGOSIAN Senior Assistant City Attorney Jared Svendsen Title: Regional Vice President RECOMMENDED FOR APPROVAL ________________________________ David Valentin Chief of Police Page 2 of 2 EXHIBIT A to 4th Amendment Included in the proposed budget will be one (1) additional Parking Enforcement Ambassador and one (1) additional vehicle. We respectfully submit our request to increase the annual budget and subsequent hourly billing rate as follows: 1 Supervisor 1 Lead Enforcement Checker 5 Enforcement Checkers (Day Time, Street Sweeping Detail) 2 Enforcement Checkers (PM Shift, Downtown Meter and General Enforcement Detail) Proposed Hourly Rate: Checker (PA) Rate - $38.00 Supervisor Rate - $52.80 Not to Exceed Budget of $826,255, this includes a 10% contingency. FY 2023 December JanuaryRatesJulyAugustSeptemberOctoberNovember February March April May June Total Hourly Rate Income - SUP Hourly Rate Income - CHK TOTAL GROSS REVENUE 53.80 38.00 8,651 8,651 8,651 8,651 8,651 8,651 8,651 8,651 8,651 8,651 8,651 8,651 103,818 53,944 53,944 53,944 53,944 53,944 53,944 53,944 53,944 53,944 53,944 53,944 53,944 647,323 751,14162,595 62,595 62,595 62,595 62,595 62,595 62,595 62,595 62,595 62,595 62,595 62,595 TOTAL NET REVENUE 62,595 62,595 62,595 62,595 62,595 62,595 62,595 62,595 62,595 62,595 62,595 62,595 751,141 TOTAL PAYROLL AND BENEFITS Labor 49,832 36,459 1,823 3,637 1,531 383 49,832 36,459 1,823 3,637 1,531 383 49,832 36,459 1,823 3,637 1,531 383 49,832 36,459 1,823 3,637 1,531 383 49,832 36,459 1,823 3,637 1,531 383 49,832 36,459 1,823 3,637 1,531 383 49,832 36,459 1,823 3,637 1,531 383 49,832 36,459 1,823 3,637 1,531 383 49,832 36,459 1,823 3,637 1,531 383 49,832 36,459 1,823 3,637 1,531 383 49,832 36,459 1,823 3,637 1,531 383 49,832 36,459 1,823 3,637 1,531 383 597,988 437,503 21,875 4,361 Vacation/Sick 5.00% 9.50% 4.00% 1.00% Payroll Taxes Worker's Compensation 401k Company Match Health Insurance 18,375 4,594 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000 ADMINISTRATIVE COSTS Audit Fees 908 292 83 908 292 83 908 292 83 908 292 83 908 292 83 908 292 83 908 292 83 908 292 83 908 292 83 908 292 83 908 292 83 908 292 83 10,894 3,500 1,000 1,800 4,594 $ 292 $ 83IT Fees Employee Hiring Costs, Background Checks Payroll Processing $150 1.00% 150 383 150 383 150 383 150 383 150 383 150 383 150 383 150 383 150 383 150 383 150 383 150 383 CAPITAL EXPENDITURES Transportation 3,000 2,000 1,000 3,000 2,000 1,000 3,000 2,000 1,000 3,000 2,000 1,000 3,000 2,000 1,000 3,000 2,000 1,000 3,000 2,000 1,000 3,000 2,000 1,000 3,000 2,000 1,000 3,000 2,000 1,000 3,000 2,000 1,000 3,000 2,000 1,000 36,000 24,000 12,000 $2,000 $1,000New Vehicle CONTRACTED THIRD PARTY SERVICES LIABILITY INSURANCE 0 200 2,557 0 0 200 2,557 0 0 200 2,557 0 0 200 2,557 0 0 200 2,557 0 0 200 2,557 0 0 200 2,557 0 0 200 2,557 0 0 200 2,557 0 0 200 2,557 0 0 200 2,557 0 0 200 2,557 0 0 2,400 30,683 0 $200 PROFIT + OVERHEAD $2,557 REPAIRS AND MAINTENANCE UNIFORMS $250 250 250 250 250 250 250 250 250 250 250 250 250 3,000 SUPPLIES 4,918 70 4,918 70 4,918 70 4,918 70 4,918 70 4,918 70 4,918 70 4,918 70 4,918 70 4,918 70 4,918 70 4,918 70 59,016 840Computers$70 $20Time Clock 20 20 20 20 20 20 20 20 20 20 20 20 240 Fuel $1,500 $250 $2,428 $350 $100 1,500 250 2,428 350 100 0 1,500 250 2,428 350 100 0 1,500 250 2,428 350 100 0 1,500 250 2,428 350 100 0 1,500 250 2,428 350 100 0 1,500 250 2,428 350 100 0 1,500 250 2,428 350 100 0 1,500 250 2,428 350 100 0 1,500 250 2,428 350 100 0 1,500 250 2,428 350 100 0 1,500 250 2,428 350 100 0 1,500 250 2,428 350 100 0 18,000 3,000 29,136 4,200 1,200 0 Vehicle R&M Vehicle Insurance Radios- GPS Office Supplies Body Cam Communication/Cellular $200 200 200 200 200 200 200 200 200 200 200 200 200 2,400 OFFICE EXPENSE Rent 930 810 120 930 810 120 930 810 120 930 810 120 930 810 120 930 810 120 930 810 120 930 810 120 930 810 120 930 810 120 930 810 120 930 810 120 11,160 9,720 1,440 $810 $120Telephone/Internet TOTAL OTHER EXPENSES 12,763 62,595 12,763 62,595 12,763 62,595 12,763 62,595 12,763 62,595 12,763 62,595 12,763 62,595 12,763 62,595 12,763 62,595 12,763 62,595 12,763 62,595 12,763 62,595 153,153 751,141TOTAL OPERATING EXPENSES