Report to Mayor and City Council
Tuesday, August 02, 2016
Consent
SUBJECT:
Title
CONSIDERATION OF RESOLUTION NO. 16-102, AMENDING THE FISCAL YEAR 2015-16 BUDGET TO PAY OUTSTANDING INVOICES FOR THE CROSSING GUARD CONTRACT (CITY COUNCIL)
Body
I. SUMMARY
On March 4, 2015, City Council awarded a three-year contract for professional crossing guards services to World Private Security, Inc. (Contractor) beginning July 1, 2015 through June 30, 2018, with two additional one-year extensions based on performance. In fiscal year 2015-16, the budget for this service was $148,000, which was based on ten permanent crossing guards and relief coverage as needed. However, the actual expenditure exceeded the allocated budget due to five city part-time crossing guards vacating their positions due to death and ill health. These five vacated positions were assigned to the Contractor to staff. The added cost for these relief crossing guards was to come from the salary savings of the Temporary Part-time Salaries as stated under the fiscal impact of the agenda presented to Council that evening (Exhibit No. 1).
On May 3, 2016, City Council authorized four new interim crossing guard warrants--two were assigned to Broadacres Elementary, and two to Stephen White Middle School. These four additional crossing guard sites were also assigned to the Contractor to staff; however, there was no additional funding allocated for the added cost for this service in that fiscal year (Exhibit No. 2).
There are three remaining invoices for fiscal year 2015-16 recently received from the Contractor. Staff is requesting City Council to authorize Resolution No. 16-102 to amend the Fiscal Year 2015-16 budget (Exhibit No. 3), and amend the Contract Purchase Order to pay for these outstanding invoices totaling $53,445.51.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. AUTHORIZE Resolution No. 16-102, a Resolution of the City Council of the City of Carson, California amending the Fiscal Year 2015-16 General Fund budget by appropriating $31,000 from the Temporary Part-time Salaries, account number 01-90-930-133/5004 to Crossing Guard Contract Services, account number 01-90-930-133/6005.
2. AUTHORIZE amendment of Contract Purchase Order No. C01810 in the amount of $42,040.42 to pay the three outstanding World Private Security, Inc. invoices for Fiscal Year 2015-16.
1.
Body
III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
On March 4, 2015, City Council awarded a three-year contract for professional crossing guard services to World Private Security, Inc. (Contractor) to augment the City’s pedestrian safety program effective July 1, 2015 through June 30, 2018 totaling $380,700. This fiscal year, the budget for this service was $148,000, which was based on ten permanent crossing guards and relief coverage as needed.
At the same time, there were eleven part-time city crossing guards assigned to provide the same service with a budget of $85,000. It had been the practice of the City to contract out services when city employee-held positions decrease due to attrition. There were five city part-time crossing guards who vacated their positions after the contract was awarded. The vacancies were due to deaths and ill health. The Contractor actually provided crossing guard service to fifteen sites, instead of ten, from when the contract commenced. The expenditure exceeded the allocated budget in the contract services account because of these vacancies, which were assigned to the Contractor to staff. The added cost to the crossing guard contract was to come from the salary savings as previously approved by Council at its March 4, 2015 meeting. The annual budget adjustments would have resolved this issue, but due to procedural changes initiated by the new senior management, staff was requested to prepare a Resolution and obtain Council approval to adhere to the new established procedure.
On May 3, 2016, City Council authorized four new interim crossing guard warrants--two were assigned to Broadacres Elementary, and two to Stephen White Middle School. These four additional crossing guard sites were also assigned to the Contractor to staff; however, there were no additional funding allocated for the additional expenditure even though the number of sites to be serviced increased from ten to nineteen.
There are three remaining invoices for fiscal year 2015-16 recently received from the Contractor (Exhibit No. 4).
Service Month Received Amount
April 2016 May 27, 2016 $20,145.32
May 2016 July 13, 2016 $23,845.50
June 2016 July 18, 2016 $ 9,454.69
Total Due $53,445.51
Staff is requesting City Council to authorize Resolution No. 16-102 amending the Fiscal Year 2015-16 general budget and amend the Contract Purchase Order C01810 to pay for these outstanding World Private Security, Inc. invoices totaling $53,445.51.
V. FISCAL IMPACT
The budget amount available in the Temporary/Part-Time account number 01-90-930-133/5004 is $37,593 from which staff is requesting to transfer $31,000 to add to the contract services account (Exhibit No. 5). This addition to the budget amount currently available in the contract services account number 01-90-930-133/6005 of $22,540 will bring total budget to $53,540.
The remaining balance in the Contractor’s Contract PO C01810 is only $11,405.09. Should the City Council approve staff’s recommendation to authorize Resolution 16-102 to amend FY 2015-16 budget and with the total available budget balance, then Contract PO balance will be $53,445.51, which is the amount needed to pay for the outstanding invoices the Contractor presented to the City.
As addressed in the July 19, 2016 staff report to the City Council, the contract services account budget and compensation amount for Fiscal Year 2016-17 and subsequent years would be adjusted accordingly for the remainder of the term of the contract with World Private Security, Inc. should there be a need for an increased or decreased number of crossing guard sites assigned to the Contractor (July 19, 2016 Minutes unavailable at the time of writing).
VI. EXHIBITS
1. Council Agenda and Minutes, March 4, 2015. (pgs. 4-8)
2. Council Minutes, May 3, 2016. (pg. 9)
3. Resolution 16-102. (pgs. 10-11)
4. World Private Security, Inc. Invoice summary sheets for April, May, and June 2016. (pgs. 12-17)
5. IFAS Monthly Expenditure Report on account 01-90-930-133, dated June 30, 2016. (pg. 18)
Prepared by: Virginia Aguada, Senior Administrative Specialist