09-0901_ALL CITY MANAGEMENT SERVICES, INC._G2a_Agenda Report• 0 9/112009
AGENDA REPORT G2a
TO: Joe Tait, Interim City Manager
FROM: Michael Cantor, Senior Management Analyst
SUBJECT: Consideration of Agreement for School Crossing Guard Services, and
Appropriation of Funds (All City Management Services, Inc.).
RECOMMENDATION:
By Motion,
1. Approve a one-year Agreement with All City Management Services, Inc., in the
amount of $72,221.20 for servicing seven crossing guard locations from
September 8, 2009 through July 29, 2010;
2. Approve an appropriation to account 01-40900-62506-0000-000 in the amount of
$2,632.40 to cover the additional costs of the public school crossing guards;
3. Approve discontinuing crossing guard services at one or more of the crossing
guard locations;
4. Approve the cancellation of crossing guard services for the 2010 summer school
session.
SITUATION:
Since September 1993, All City Management Services, Inc. (ACMS) has provided
crossing guard services at all of the public elementary and middle schools located within
the City of San Juan Capistrano. The crossing guards assist the students as they
traverse various intersections while en route to their respective schools. Historically, the
services provided under this contract have proven to be reliable as well as cost
effective.
Prior to the use of City contracted crossing guards, the Orange County Sheriff's
Department managed this service. However, whenever a hired crossing .guard was
unable to staff a post, a deputy sheriff was assigned to fill in. The utilization of a deputy
sheriff, whose primary duties include preventative patrol, emergency response, public
safety, and/or traffic enforcement, is not a satisfactory use of police resources. ACMS
has consistently provided reliable and capable personnel to staff those intersections
deemed to require the services of a crossing guard. Outsourcing has been the most
cost effective method for providing this service.
Agenda Report •
Page 2
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September 1, 2009
Under the terms of this contract, San Juan, Del Obispo, Ambuehl and Kinoshita
Elementary Schools and Marco Forster Middle School will be provided crossing guard
services for the regular school year and as needed for summer school. On average,
crossing guard service is provided for approximately 45 minutes in the morning and
another 45 minutes in the afternoon. The rule of thumb in the crossing guard business
is to charge a minimum of 3 or 4 hours per location per day to cover the overhead
associated with assigning personal to a location.
The five schools and seven locations are as follows (Chart A):
#
School
Location
Hours
Type
Charged
1
Del Obispo
Camino Del Avion and
3
Crosswalk
Elementary
Avenida Descanso
2
Marco Forster
Camino Del Avion and
3
Crosswalk
Middle School
Avenida Descanso
3
Kinoshita
Via Positiva in front
4
Crosswalk
Elementary
Kinoshita Elementary
School
4
Kinoshita
Via Positiva and Alipaz
4
Signalized
Elementary
Street
crosswalk
5
San Juan
EI Camino Real and
4
Crosswalk
Elementary
Spring Street
6
San Juan
Camino Capistrano and
4
Signalized
Elementary
La Zanja Street
Crosswalk
7
Ambuehl
San Juan Creek Road
4
Crosswalk
Elementary
and Calle Cartegena
Agenda Report •
Page 3
9
September 1, 2009
Staff has conducted several surveys with other Orange County Cities to solicit
competitive bids for this service, but has failed to obtain any substantial leads.
The following South County Cities currently contract with ACMS (Chart B):
City
Hourly rate
Last RFP
Laguna Niguel
$13.50
More than 14 years
RSM
$13.50
More than 7 years
Mission Viejo
$13.84
More than 5 years
Aliso Viejo
$14.05
Unknown
Dana Point
$14.25
More than three years
Laguna Hills
$14.25
Unknown
Lake Forest
$14.39
More than 6 years
San Clemente
$14.52
Unknown
The City of Aliso Viejo conducted an Orange County survey on July 21, 2009 and found
that most cities contract with ACMS or use part-time City employees (Attachment 2).
Staff has asked ACMS to reduce their hourly rate increase of $14.20, or maintain the
same rate as last year's ($13.59), but ACMS has held fast to the increased rate of
$14.20. The above survey of other cities that contract with ACMS indicates that the
hourly rate varies from city to city. ACMS contends that the rate formula is based on the
number of locations being served in a city.
The primary reason that most cities use ACMS is that competitive bids are difficult to
obtain. The City of Diamond Bar recently entered into a short term agreement with
ACMS as their current crossing guard company went out of business. While contracted
for the short-term, Diamond Bar processed a request for proposal and received two
bids, one from ACMS and one from Preferred Response Security Services. After all the
criteria was evaluated, Diamond Bar selected ACMS to provide the crossing guard
services for the 2009-2010 school year for $130,000 based on a hourly rate of $12.79.
One major reason for selecting ACMS was that the other bidder had no previous
crossing guard experience.
ACMS continues to maintain a successful business plan backed up by many years of
experience. The recommended agreement for all intents and purposes is a "sole
source" contract as ACMS is the only reliable company that provides crossing guard
services in our area.
For City Council consideration, staff offers the following options to reduce the costs of
the crossing guard service:
• Of the seven locations, five are crosswalks and two are signalized intersections
(see Chart A). Consideration might be given for the removal, of one or more of the
seven locations. Removal of an intersection with a four-hour minimum coverage
would reduce the contract by $10,280.80. Removal of a three-hour location would
reduce the annual contract by $7,710.60.
Agenda Report •
Page 4
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September 1, 2009
• Summer session is for four weeks or 20 school days from approximately the end of
June to the end of July. Historically, the following five crossing guard locations have
been used for the summer session corresponding to the schools that were open for
the summer session (see Chart C):
Chart C
#
School
Location
Hours
Type
Charged
1
Del Obispo
Camino Del Avion and
3
Crosswalk
Elementary &
Avenida Descanso
Marco Forster
Middle School
2
Kinoshita
Via Positiva in front
4
Crosswalk
Elementary
Kinoshita Elementary
School
3
Kinoshita
Via Positiva and Alipaz
4
Signalized
Elementary
Street
crosswalk
4
San Juan
EI Camino Real and
4
Crosswalk
Elementary
Spring Street
5
San Juan
Camino Capistrano and
4
Signalized
Elementary
La Zanja Street
Crosswalk
■ Based on budget constraints, Capistrano Unified School District has not committed
to the June 2010 summer session. If it is canceled, the contract would be reduced
$5,396. If the school district commits to the summer session, the City has the
option of not providing crossing guards for the summer session, and thereby
reducing the contract $5,396.
An ACMS representative was requested to attend tonight's meeting to be available to
address questions from the City Council.
COMMISSION/BOARD REVIEW AND RECOMMENDATIONS:
Not Applicable.
Agenda Report •
Page 5
FINANCIAL CONSIDERATIONS:
September 1, 2009
Funds in the amount of $70,668 have been allocated in the fiscal year budget 2009-
2010 for ACMS to provide services. The City is invoiced monthly based on the number
of hours required at each location. The new contract is increasing from $13.59 per hour
to $14.20 per hour. This is about a 4.5% increase. From 2002 to 2007, it was $12.80
per hour, and in 2007 it was increased to $13.59. The $72,221.20 includes
appropriating an additional $1,553.20 from the General Fund as the approved budget
was for $70,668.00 (based on calculations at $13.59 per hour). An additional $1,079.20
is requested to be appropriated from the general fund to off -set the costs of the past
summer school session that ran from June 22, 2009 to July 23, 2009 and was partially
funded out of the 2009-2010 budget. The total requested appropriation from the
general fund is $2,632.40.
NOTIFICATION:
All City Management Services, Inc.
Capistrano Unified School District
RECOMMENDATION:
By Motion,
1. Approve a one-year Agreement with All City Management Services, Inc., in the
amount of $72,221.20 for servicing seven crossing guard locations from
September 8, 2009 through July 29, 2010;
2. Approve an appropriation to account 01-40900-62506-0000-000 in the amount of
$2,632.40 to cover the additional costs of the public school crossing guards;
3. Approve discontinuing crossing guard services at one or more of the crossing
guard locations;
4. Approve the cancellation of crossing guard services for the 2010 summer school
session.
Respectfully submitted,
`2�6VXF�F
Michael Cantor
Senior Management Analyst
Attachment:
1. Agreement
2. July 21, 2009 City of Aliso Viejo Crossing Guard Memorandum
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PERSONAL SERVICES AGREEMENT
THIS AGREEMENT is made, entered into, and shall become effective this 1 st day of
September 2009, by and between the City of San Juan Capistrano (hereinafter referred to
as the "City") and All City Management Services, Inc. (hereinafter referred to as the
"Consultant").
RECITALS:
WHEREAS, City desires to retain the services of Consultant regarding the City's
public school crossing guard services; and
WHEREAS, Consultant is qualified by virtue of experience, training, education and
expertise to accomplish such services.
NOW, THEREFORE, City and Consultant mutually agree as follows:
Section 1. Scope of Work.
The scope of work to be performed by Consultant shall consist of those tasks as set
forth in Exhibit' A," attached and incorporated herein by reference. To the extent that there
are any conflicts between the provisions described in Exhibit "A" and those provisions
contained within this Agreement, the provisions in this Agreement shall control.
Section 2. Term.
This is an eleven month Agreement and shall commence on September 1, 2009 and
services required hereunder shall be completed by no later than July 31, 2010.
Section 3. Compensation.
3.1 Amount.
Total compensation for the services hereunder shall not exceed Seventy -Two
Thousand Two -Hundred Twenty -One Dollars and Twenty cents ($72,221.20) as set forth in
Exhibit "B," attached and incorporated herein by reference
3.2 Method of Payment.
Subject to Section 3. 1, Consultant shall submit monthly invoices based on total
services which have been satisfactorily completed for such monthly period. The City will pay
monthly progress payments based on approved invoices in accordance with this Section.
ATTACHMENT
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3.3 Records of Expenses.
Consultant shall keep complete and accurate records of all costs and
expenses incidental to services covered by this Agreement. These records will be made
available at reasonable times to City.
Section 4. Independent Contractor.
It is agreed that Consultant shall act and be an independent contractor and not an
agent or employee of City, and shall obtain no rights to any benefits which accrue to City's
employees.
Section 5. Limitations Upon Subcontracting and Assignment.
The experience, knowledge, capability and reputation of Consultant, its principals and
employees were a substantial inducement for City to enter into this Agreement. Consultant
shall not contract with any other entity to perform the services required without written
approval of the City. This Agreement may not be assigned, voluntarily or by operation of
law, without the prior written approval of the City. If Consultant is permitted to subcontract
any part of this Agreement by City, Consultant shall be responsible to City for the acts and
omissions of its subcontractor as it is for persons directly employed. Nothing contained in
this Agreement shall create any contractual relationships between any subcontractor and
City. All persons engaged in the work will be considered employees of Consultant. City will
deal directly with and will make all payments to Consultant.
Section 6. Changes to Scope of Work.
For extra work not part of this Agreement, a written authorization from City is required
prior to Consultant undertaking any extra work. In the event of a change in'the Scope of
Work provided for in the contract documents as requested by the City, the Parties hereto
shall execute an addendum to this Agreement setting forth with particularity all terms of the
new agreement, including but not limited to any additional Consultant's fees.
Section 7. Familiarity with Work and/or Construction Site.
By executing this Agreement, Consultant warrants that: (1) it has investigated the
work to be performed; (2) if applicable, it has investigated the work site(s), and is aware of
all conditions there; and (3) it understands the facilities, difficulties and restrictions of the
work to be performed under this Agreement. Should Consultant discover any latent or
unknown conditions materially differing from those inherent in the work or as represented by
City, it shall immediately inform the City of this and shall not proceed with further work under
this Agreement until written instructions are received from the City.
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Section 8. Time of Essence.
Time is of the essence in the performance of this Agreement.
Section 9. Compliance with Law: E -Verify.
9.1. Compliance with Law.
Consultant shall comply with all applicable laws, ordinances, codes and regulations of
federal, state and local government.
9.2. E -Verify.
If Consultant is not already enrolled in the U.S. Department of Homeland Security's
E -Verify program, Consultant shall enroll in the E -Verify program within fifteen days of the
effective date of this Agreement to verify the employment authorization of new employees
assigned to perform work hereunder. Consultant shall verify employment authorization
within three days of hiring a new employee to perform work under this Agreement.
Information pertaining to the E -Verify program can be found at htta://www.uscis.gov, or
access the registration page at his://www.vis-dhs.com/emploverregistration. Consultant
shall certify its registration with E -Verify and provide its registration number within sixteen
days of the effective date of this Agreement. Failure to provide certification will result in
withholding payment until full compliance is demonstrated.
Section 10. Conflicts of Interest.
Consultant covenants that it presently has no interest and shall not acquire any
interest, direct or indirect, which would conflict in any manner or degree with the
performance of the services contemplated by this Agreement. No person having such
interest shall be employed by or associated with Consultant.
Section 11. Ownership of Documents.
All reports, information, data and exhibits prepared or assembled by Consultant in
connection with the performance of its services pursuant to this Agreement are confidential
to the extent permitted by law, and Consultant agrees that they shall not be made available
to any individual or organization without prior written consent of the City. All such reports,
information, data, and exhibits shall be the property of the City and shall be delivered to the
City upon demand without additional costs or expense to the City. The City acknowledges
such documents are instruments of Consultant's professional services.
Section 12. Indemnity.
To the fullest extent permitted by law, Consultant agrees to protect, defend, and hold
harmless the City and its elective and appointive boards, officers, agents, and employees
from any and all claims, liabilities, expenses, or damages of any nature, including attorneys'
fees, for injury or death of any person, or damages of any nature, including interference with
use of property, arising out of, or in any way connected with the negligence, recklessness
and/or intentional wrongful conduct of Consultant, Consultant's agents, officers, employees,
subcontractors, or independent contractors hired by Consultant in the performance of the
Agreement. The only exception to Consultant's responsibility to protect, defend, and hold
harmless the City, is due to the negligence, recklessness and/or wrongful conduct of the
City, or any of its elective or appointive boards, officers, agents, or employees.
This hold harmless agreement shall apply to all liability regardless of whether any
insurance policies are applicable. The policy limits do not act as a limitation upon the
amount of indemnification to be provided by Consultant.
Section 13. Insurance.
On or before beginning any of the services or work called for by any term of this
Agreement, Consultant, at its own cost and expense, shall carry, maintain forthe duration of
the agreement, and provide proof thereof that is acceptable to the City, the insurance
specified below with insurers and under forms of insurance satisfactory in all respects to the
City. Consultant shall not allow any subcontractor to commence work on any subcontract
until all insurance required of the Consultant has also been obtained for the subcontractor.
Insurance required herein shall be provided by Insurers in good standing with the State of
California and having a minimum Best's Guide Rating of A- Class VII or better.
13.1 Comprehensive General Liability.
Throughout the term of this Agreement, Consultant shall maintain in full force
and effect Comprehensive General Liability coverage in an amount not less than one million
dollars per occurrence ($1,000,000.00), combined single limit coverage for risks associated
with the work contemplated by this agreement. If a Commercial General Liability Insurance
form or other form with a general aggregate limit is used, either the general aggregate limit
shall apply separately to the work to be performed under this agreement or the general
aggregate limit shall be at least twice the required occurrence limit.
L!
13.2 Comprehensive Automobile Liability.
Throughout the term of this Agreement, Consultant shall maintain in full force
and effect Comprehensive Automobile Liability coverage, including owned, hired and non -
owned vehicles in an amount not less than one million dollars per occurrence
($1,000,000.00).
13.3 Worker's Compensation.
If Consultant intends to employ employees to perform services under this
Agreement, Consultant shall obtain and maintain, during the term of this Agreement,
Worker's Compensation Employer's Liability Insurance in the statutory amount as required
by state law.
13.4 Proof of Insurance Requirements/Endorsement.
Prior to beginning any work under this Agreement, Consultant shall submitthe
insurance certificates, including the deductible or self -retention amount, and an additional
insured endorsement naming City, its officers, employees, agents, and volunteers as
additional insureds as respects each of the following: Liability arising out of activities
performed by or on behalf of Consultant, including the insured's general supervision of
Consultant; products and completed operations of Consultant; premises owned, occupied or
used by Consultant; or automobiles owned, leased, hired, or borrowed by Consultant. The
coverage shall contain no special limitations on the scope of protection afforded City, its
officers, employees, agents, or volunteers.
13.5 Errors and Omissions Coverage [FOR PROFESSIONS/WORK
EXCLUDED FROM GENERAL LIABILITY]
This section has been deleted as it is not applicable to the service provided.
13.6 Notice of Cancellation/Termination of Insurance.
The above policy/policies shall not terminate, nor shall they be cancelled, nor
the coverages reduced, until after thirty (30) days' written notice is given to City, except that
ten (10) days' notice shall be given if there is a cancellation due to failure to pay a premium.
13.7 Terms of Compensation.
Consultant shall not receive any compensation until all insurance provisions
have been satisfied.
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13.8 Notice to Proceed.
Consultant shall not proceed with any work under this Agreement until the City
has issued a written "Notice to Proceed" verifying that Consultant has complied with all
insurance requirements of this Agreement.
Section 14. Termination.
City shall have the right to terminate this Agreement without cause by giving thirty
(30) days' advance written notice of termination to Consultant.
In addition, this Agreement may be terminated by any party for cause by providing
ten (10) days' notice to the other party of a material breach of contract. If the other party
does not cure the breach of contract, then the agreement may be terminated subsequent to
the ten (10) day cure period.
Section 15. Notice.
All notices shall be personally delivered or mailed to the below listed addresses, orto
such other addresses as may be designated by written notice. These addresses shall be
used for delivery of service of process:
To City: City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: Michael Cantor, Senior Management Analyst
To Consultant: All City Management Services, Inc.
1749 South La Cienega Blvd.
Los Angeles, CA 90035
Attn: Baron Farwell, General Manager
Section 16. Attorneys' Fees.
If any action at law or in equity is necessary to enforce or interpret the terms of this
Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs and
necessary disbursements in addition to any other relief to which he may be entitled.
Section 17. Dispute Resolution.
In the event of a dispute arising between the parties regarding performance or
interpretation of this Agreement, the dispute shall be resolved by binding arbitration under
the auspices of the Judicial Arbitration and Mediation Service ("JAMS").
r:
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Section 18. Entire Agreement.
This Agreement constitutes the entire understanding and agreement between the
parties and supersedes all previous negotiations between them pertaining to the subject
matter thereof.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement.
CITY OF SAN JUAN CAPISTRANO
0
Mark Nielsen, Mayor
CONSULTANT
M
ATTEST:
Margaret R. Monahan, City Clerk
APPROVED AS TO FORM:
LaD Jam A'4 [?) �
Omar Sandoval, City Attorney
7
General
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EXHIBIT "A"
Project Overview and Scope of Work
All City Management Services, Inc. (Consultant) will provide school
Crossing Guards to serve San Juan, Del Obispo, Ambuehl and Kinoshita
Elementary Schools and Marco Forster Middle School at the following
designated locations:
• Camino Del Avion and Avenida Descanso
• Via Positiva in front Kinoshita Elementary School
• Via Positiva and Alipaz Street
• EI Camino Real and Spring Street
• Camino Capistrano and La Zanja Street
• San Juan Creek Road and Calle Cartegena
2. Consultant shall provide Crossing Guards services at the designated
hours on all days on which the designated schools in the City of San Juan
Capistrano are in session.
3. Consultant shall provide supervisory personnel to oversee the activities of
the Crossing Guards to make sure that they are at the required places and
times and in accordance with all items of this agreement.
4. Consultant shall maintain adequate reserve personnel to be able to furnish
alternate Crossing Guards in the event that any person fails to report for
work at the assigned time and location.
5. Consultant shall provide personnel properly trained as herein specified for
the performance of duties of Crossing Guards as well as the laws and
codes of the State of California and the City of San Juan Capistrano
pertaining to general pedestrian safety and school crossing areas.
6. Consultant shall provide all Crossing Guards with apparel by which they
are readily visible and easily recognized as Crossing Guards. Such
Apparel shall be uniform for all persons performing the duties of Crossing
Guards and shall be worn at all times while performing said duties.
7. Consultant shall provide all Crossing Guards with hand held Stop Signs
and other safety equipment as needed.
8. Consultant shall provide City a Crossing Guard Assignment Schedule two
times each year; in September reflecting the regular school year and in
June reflecting the summer session with the following information:
Site #, Supervisor, School, Intersection, Minimum Days and
Regular Days Schedule and Hours, and Number of hours the City
is invoiced for Site #.
•
EXHIBIT "B"
Compensation and Payment
1. The City agrees to pay All City Management Services, Inc. up to
$72,221.20 for all services performed from September 8, 2009 to
July 31, 2010.
2. Consultant shall submit monthly invoices for services based on an hourly
rate of $14.20 for actual crossing guard duties performed.
3. The City shall make payments within 14 days of receipt of Consultant's
bill.
4. Payments shall be made to All City Management Services, Inc.
5. The parties understand and agree that the City's payments to Consultant
as compensation under this Agreement shall not exceed Seventy -Two
Thousand Two Hundred Twenty -One Dollars and Twenty Cents
($72,221.20).
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City of Aliso Viejo
MEMORANDUM
DATE: July 21, 2009
TO: City Mgr Mark Pulone
FROM: Sgt. DJ Haldeman
SUBJECT: Crossing Guard Services
At your request, I have conducted a study with all Orange County cities regarding
crossing guard services in their respective cities. At the conclusion, I found that cities
will either use part-time city employees hired from within or contract with All Cities
Management Services. Laguna Beach reported that they do not have a crossing guard
service at their schools and that duty is left up to the school district. Anaheim used a
company that has since gone out of business. They have posted for crossing guard
services out to bid in the private sector. Nancy Galicinao from Anaheim will keep me
posted if they come across any companies other than All Cities Management.
A breakdown of the cities is as follows:
All Cities Management Services
Brea
Costa Mesa
Cypress
Dana Point
Fountain Valley
Fullerton
Garden Grove
Huntington Beach
Laguna Hills
Laguna Niguel
Lake Forest
La Palma
Mission Viejo
Newport Beach
Placentia
Rancho Santa Margarita
San Clemente
San Juan Capistrano
Santa Ana
Stanton
Tustin
Yorba Linda
Part -Time City Employees
Buena Park
Irvine
La Habra
Los Alamitos
Orange
Seal Beach
Westminster
ATTACHMENT