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CC - Approval of a Professional Services Agreement with Absolute International Security for Veterans Memorial Complex Security Guard Services for a Term up to Three Years (Ending on December 31, 2019) with an Aggregate Amount Not-to-Exceed $132,498 Over the Three-Year Term.
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Meeting Date: December 12, 2016
Contact Person/Dept: Armando Abrego/Susan Obrow - PRCS Department
Phone Number: (310) 253-6724/(310) 253-6628
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (12/07/16)
Department Approval: Daniel Hernandez, PRCS Director (12/01/16)
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RECOMMENDATION
Staff recommends the City Council approve a professional services agreement with Absolute International Security for security guard services for Veterans Memorial Complex (VMC). The agreement for professional security guard services would be for a term of three years (ending on December 31, 2019) with an aggregate amount not-to-exceed $132,498 over the three-year term.
BACKGROUND
The current security guard services agreement with California Panther Security expires on December 31, 2016 after five (5) years of continuous service for the City. On October 27, 2016, a Request for Proposals (RFP) for professional security guard services was released. The RFP was posted on the City’s website. A Mandatory Job Walk was provided to interested security firms on November 10, 2016 and proposals were submitted by the deadline of November 17, 2016.
The general provisions of the RFP were to provide as-needed services for the VMC Rental Operation, which includes Veterans Memorial Building, Culver City Teen Center and Culver City Senior Center (Senior Center), and for the City’s daytime programming, Monday through Saturday, at the Senior Center. Also, services would be provided for overnight equipment protection in Veterans Park for Fiesta La Ballona. The RFP’s Scope of Services (Scope) included requirements for the contractor to supply trained, uniformed, and unarmed security guards who would assist in the enforcement of federal, state and municipal policies and procedures and who are specifically experienced in crowd control and interacting with people who are unruly and/or inebriated.
The RFP provided for a term of three (3) years, with the option for the agreement to be renewed twice for additional one (1) year terms each.
DISCUSSION
Six proposals were received. The proposals were evaluated by staff with emphasis in the areas of qualifications and experience, questions and responses to the Scope, fee schedule, references, and insurance.
California Panther Security and Absolute International Security submitted extensive proposals which provided more than general responses. The two firms were invited for oral interviews with representatives of the PRCS Department, including the Senior and Social Services/Facilities Manager, the Special Events Coordinator and the Disability and Social Services Specialist. Detailed questions were asked by the panel to assess training, field supervision, comparable facility and event experience, methods of negotiating in challenging situations, chain of reporting during incidents, and procedures for replacing guards quickly without impacting service.
Subsequently, staff contacted references for both firms and reviewed the results of the multi-level review with PRCS Director, Daniel Hernandez. Both firms are comparable in their approach which is modeled on community oriented policing programs and both are licensed by the State of California Department of Consumer Affairs, Bureau of Security and Investigative Services. California Panther Security provided the lowest quote; however, staff recommends that the City Council approve an agreement with Absolute International Security the best qualified to serve the PRCS Department as it continues to expand its services to the public. Pursuant to the Culver City Municipal Code, price alone shall not be the determining factor but shall be considered along with other factors, including, but not limited to, prior experience and the particular needs of the City for the services to be provided.
Absolute International Security
Absolute International Security is a certified minority and woman owned business. President Lucy Lin is currently moving the firm’s headquarters from Covina to El Monte. The firm was established in 2008 and has provided multi-level customized security protection to federal, state and local governments including the Cities of Azusa (recreation center events), Garden Grove (community and cultural center events), Monrovia (library, historical museum, city events), Monterey Park (Lunar New Year Festival), Torrance (library and farmers market), Riverside (homeless shelter), the Orange County Fair and Los Angeles County’s Marina Del Rey Summer Concert Series. The firm has its own training center allowing staff to continuously conduct in-house training for guards and others interested in a career in security service. The Director of Operations, General Manager, Training Manager and Quality Control Manager have law enforcement and/or military experience and Field Supervisors regularly visit sites to review the work effort and provide guards with refreshments or fresh uniforms. Guards are required to complete reports at the end of every shift as well as independent incident reports. The firm carries additional insurance which includes the Terrorism Risk Insurance, a program within the United States Department of Treasury, under which the government shares the risk of loss from terrorist attacks.
The current agreement with California Panther Security provides a $17.19 hourly rate. Absolute International Security proposes the following rates for the three-year agreement:
2017 2018 2019
Straight Time Bill Rate $17.18 $18.78 $20.48
Holiday Bill Rate $25.75 $28.15 $30.70
All rates are fully burdened to include all direct costs, indirect costs, overhead and profit and would remain fixed. The Holiday Bill Rate is for any work performed outside of the normal scope hours, including holidays, extra coverage requirements, and short-term notice requirements (less than two-hours notice).
For the purpose of comparison, California Panther Security, the company that staff is not recommending for approval, submitted the following rate schedule:
2017 2018 2019
Straight Time Bill Rate $15.45 $16.10 $17.19
Holiday Bill Rate None provided.
California Panther Security has served the PRCS Department well; however, staff did not realize how modest the service was, especially when it comes to qualified and trained security guards, until the proposal from Absolute International Security was reviewed, and the leadership of that company was interviewed. The PRCS Department has expanded the services provided to the public by the VMC Rental Office, and staff feels that the City should contract with the best trained security guards possible. Further, Absolute International Security could be an excellent resource for the entire city.
The PRCS Department recommends that Absolute International Security be retained to provide professional security guard services for Veterans Memorial Complex.
FISCAL ANALYSIS
The VMC Rental Operation recovers the security guard costs by requiring renters to pay an hourly fee for security guards. Guards are deployed at events that serve alcohol and/or are in rooms with multiple exits. Staff will recommend rate increases to the Security Guard fee during the annual Fees & Charges process. Staff will create a new fee for the Holiday charge to also be included. Staff believes that 720 hours of security guard service will be used annually at a cost of:
1. FY 16-17 - $6,185 (360 hours January through June)
2. FY 17-18 - $13,522
3. FY 18-19 - $14,746
4. FY 19-20 - $7,373 (360 hours July through December)
Annually the Senior Center requires a security guard for 1,468 hours. These costs are not recoverable. The cost per fiscal year is as follows:
1. FY 16-17 - $12,610 (734 hours January through June)
2. FY 17-18 - $28,321
3. FY 18-19 - $30,884
4. FY 19-20 - $15,033 (734 hours July through December)
Annually Fiesta requires a security guard for 64 hours. These costs are part of the Fiesta budget. The cost per fiscal year is as follows:
1. FY 16-17 - not applicable
2. FY 17-18 - $1,202
3. FY 18-19 - $1,311
4. FY 19-20 - $1,311
Total amounts, per Fiscal Year, are as follows:
1. FY 16-17 - $18,795 (January through June)
2. FY 17-18 - $43,045
3. FY 18-19 - $46,941
4. FY 19-20 - $23,717 (July through December)
$132,498 Total Contract Amount
There are currently sufficient funds in the Fiscal Year 2016-17 Veterans Memorial Building (10130110.619800), and Senior Center (10130400.619800) budgets for the first six months of the Absolute International Security agreement. Staff will request General Fund budget enhancements during each fiscal cycle to balance the operating budget, including the Fiesta La Ballona (10130285.619800) budget. The total not-to-exceed amount for the three-year term is $132,498 and will be incorporated into future budgets.
ATTACHMENTS
None.
RECOMMENDED MOTIONS
That the City Council:
1. Approve a professional services agreement with Absolute International Security for professional security services for a term of three years (ending on December 31, 2019), with an aggregate amount not-to-exceed $132,498 over the three-year term; and,
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City; or
4. Provide other direction to the City Manager as deemed appropriate.