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2012-27974 Reso RESOLUTION NO.! 2012 -27974 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER TO REJECT ALL PROPOSALS RECEIVED PURSUANT TO REQUEST - FOR PROPOSALS NO. 23 -11112 TO PROVIDE .SECURITY GUARD SERVICES .(THE RFP) AND, IN THE .ALTERNATIVE, - RETROACTIVELY APPROVING THE THIRD RENEWAL TERM OF SECURITY :AL'LIANCE'S CURRENT CONTRACT FOR SECURITY GUARD SERVICES, 'DATED APRIL :2, 2007, WITH SUCH THIRD RENEWAL TERM .BEING :EFFECTIVE .AS OF -MAY 1, 2012, TO APRIL 30, 2013; AND.FURTHER AUTHORIZING THE ISSUANCE OF A NEW REQUEST FOR PROPOSALS (RFP) FOR SECURITY GUARD SERVICES. WHEREAS, At its December 6, 2011 meeting, the Committee recommended - that the Administration proceed to issue a new Request for Proposals (RFP) for security guard services, but that the results of the new RFP .process be compared with the City's current agreement, and to determine whether it was in the City's best interest to award a new contract, or for security guard services with Security Alliance (the Current Agreement) exercise the last renewal term from under the Current Agreement; and WHEREAS, on January .11, 2012, the Mayor :and City .Commission authorized `the .issuance of RFP No. 23 -11/12 for Security Guard Services; and WHEREAS, RFP -No. 23 -11/12 was issued on January 30, 2012, with a , bid opening date of March 2, 201.2 in which ten (10) proposals were .received; and WHEREAS, on March 20, 2012, the City Manager via :Letter to Commission (LTC) No. 082 -2012, appointed an Evaluation Committee (the "Committee ") consisting of the - following individuals: • Lt. Eduardo Yero, -Community Affairs Unit and Contracts Administrator, Police Department; • Rocio Alba, Financial Analyst III, Parking Department; • Gabriel .J. Paez, Miami Beach Resident, Citizens Police Academy Graduate and Alumni; • Nick Pietrocarlo, Miami Beach Resident, Citizens Police Academy Graduate Alumni (Chair); Cornelius O'Regan,'Police .Support Services, Police ;Department; and • Carol Lang, Miami Beach Resident, Co- Treasurer of the Citizens-Police Academy; and WHEREAS, the Committee convened on April.2, 2012 to shortlist - the °.proposals and were also provided with an overview of the project, information relative :to the-City's Cone of Silence Ordinance - and the Government Sunshine Law, general information on the :scope of services, Performance Evaluation Surveys, and additional .pertinent information from all responsive proposers; and WHEREAS, the Committee unanimously ranked and short - listed - the following four (4) proposers and invited to return for interviews 1. Allied Barton; 2. Security Alliance; '3. G4S Secure Solutions; 4. Kent Security; and WHEREAS, on April 16, 2012, the Committee reconvened to listen to 10- minute presentations from each short- listed proposer, followed by a.20- minute Question and Answer (Q&A) session; and WHEREAS, the Committee unanimously recommended that the Administration enter into negotiations, with the -top top- ranked proposer, Security Alliance; and should the negotiations be unsuccessful, that it negotiate with the second ranked proposer, Allied Barton; and WHEREAS, an analysis was conducted :to compare the - results of the new RFP process .to the Current Agreement, in order to determine whether it would be in the City's best .interest to either authorize the negotiations and, if successful, award a new contract pursuant to the new RFP, or, in the alternative, reject proposals and renew the Current Agreement for the last and final one year renewal term; and WHEREAS, after considering the review and recommendation of the Committee, as well as reviewing the Administration's analysis with regard to the City's options (i.e. accept a proposal vs. rejection of all proposals and, in the alternative, exercise the third renewal .term under the Current Agreement), the City Manager has exercised her due. diligence and recommends that it would be in the City's best interest to authorize the .Administration to renew the Current Agreement for the third (and last) one year renewal term; and WHEREAS, in exercising the last renewal term under the Current Agreement, the City Manager further recommends that•the.Administration limit the adjustment of the billing rate to the straight dollar to dollar (plus'FICA/MICA) for the proposed living wage adjustment, effective October 1, 2013; and WHEREAS, - the Manager further recommends that the City Commission authorize the issuance of .a new RFP for security guard services. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY -OF MIAMI BEACH, -FLORIDA, that the Mayor and City Commission hereby accept the recommendation of the City Manager to reject all proposals received pursuant to Request for Proposals No..23- 11/12 Provide Security Guard Services (the RFP) and, in the alternative, recommends retroactively approving the third renewal term of Security Alliance's current contract for security guard services, dated April 2, 2007, with such third renewal being effective as of May 1, 2012 to April 30, 2013. The Manager further recommends authorizing the issuance of a new Request for Proposals (RFP) for security guard services. PASSED AND ADOPTED THIS W 'DAY OF 201.2. ATTEST: INCORP OWED Eb VEDAS TO , CITY - CLERK OR � FORM &LANGUAGE J9 �CH a, FOR EXECUTION T:\HGENDA \2012 \7- 18- 12 \RFP_23 -11 -12 Security Guard Services Reject and Renew -R d0cx w i A orn��, Date COMMISSION ITEM SUMMARY Condensed Title: A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, - Florida, Accepting The Recommendation Of The City Manager To Reject All -Proposals Pursuant To Request For Proposals No. 23 -11/12 To Provide Security Guard Services (The RFP) And, In The Alternative, Retroactively Approving The Third Renewal Term Of Security.Alliance's Current Contract For Security Guard Services, Dated April 2, 2007, With Such Third Renewal Term Being .Effective As Of May 1, 2012, To April 30, 2013; And Further Authorizing The Issuance Of A New Request For Proposals For Security Guard Services. Key Intended Outcome Supported: Maintain crime rates at or below national trends Supporting Data (Surveys, Environmental Scan, etc.): According to the 2009 Strategic Plan, 90% of the, residents responded that they feel very safe or somewhat safe in their neighborhoods during the night. Issue: Whether the City Commission should reject the RFP and exercise the existing renewal term under `the current contract? Item Summary /Recommendation: RFP 'No..23- 11/12 was issued on January 30, 2012, with a bid opening date of March 2, 2012; ten (10) proposals were received. A motion (which was unanimous) was made by the Evaluation Committee to recommend that the Administration enter into negotiations with the Committee's top- ranked proposer, Security Alliance; and should the negotiations be unsuccessful, that it negotiate with the second ranked proposer, Allied Barton. After considering the review and recommendation of the Committee, as well as reviewing the Administration's analysis with regard to the City's options (i.e., accept a proposal vs..negotiation of a third renewal term under the current agreement and reject all proposals), the City Manager has exercised his due diligence and recommends that it would be in the City's best interest to authorize the Administration to exercise the third (and last) one year renewal term under the current agreement (which is with Security Alliance); limit the adjustment of the bill rate to a straight dollar to dollar (plus FICA/MICA) ifor the proposed living wage adjustment; and reissue a new RFP_ Reject all proposals and -exercise third renewal option under current contract and authorize reissuance of - RFP Advisory Board Recommendation: The Finance and Citywide Projects Committee, at its January 27, 2011 meeting, retroactively approved the first -year renewal of Security Alliance's contract, from May 1,.2010 to April 30, 2011, and prospectively approved the second =year renewal of Security Alliance's contract, from May 1, 2011 to April 30, 2012. The Committee further authorized the issuance of the Request for Proposals RFP for security guard services. Financial Information: Source of Amount: , Account..: c Funds: $391,901.87 Parking Garages 480- 0463- 000349 $42,188.31 Parking -7th Street Garage 142- 6976 - 000349 $57,307.35 Parking - Anchor Garage 463- 1990 - 000349 $8,927.00 Parking-Pennsylvania Ave. 467- 1996 - 000349 2 ` $175,092.20 Police —City Hall, Boardwalk, Flamingo Park, North Shore Youth Center, Normandy Shore Pool, North Shore Open Space, North Beach Rec. Corridor 011.1120.000349 $ 91,944:66 RDA -South Pointe 011.1122.000349 $160,348.63 RDA -City Center 168.1124.000349 $ 2,680.83 Contribution Security Guard - Sanitation 178:6885.000343 OBPI ,Total . :$930 TOTAL FY 2011/2012 (July- September 2012) City Clerk's Office Legislative Tracking: Raul A uila 'Sign =Offs: t Department Director` AssistantmCi 1Mana er City'Manage 'RA &6 RM JGG PDW KGB AGENDA ITEM AM MIAMI BATE '7-15i JZ MIAMISEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Kathie G. Brooks, City Manager DATE: July 18, 2012 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, ;FLORIDA, :ACCEPTING THE RECOMMENDATION OF THE CITY'MANAGER TO . 'REJECT ALL PROPOSALS RECEIVED PURSUANT TO REQUEST :FOR 'PROPOSALS NO. 23- 11/12 TO PROVIDE SECURITY .GUARD SERVICES (THE .RFP) AND, IN THE ALTERNATIVE, 'RETROACTIVELY APPROVING THE THIRD RENEWAL TERM OF SECURITY ALLIANCE'S CURRENT CONTRACT FOR SECURITY GUARD SERVICES, DATED APRIL 2, 2007, WITH SUCH THIRD RENEWAL TERM BEING EFFECTIVE AS OF MAY 1, .2012, TO APRIL 30, 2013; AND FURTHER .AUTHORIZING THE ISSUANCE OF A NEW REQUEST FOR PROPOSALS (RFP) FOR SECURITY GUARD SERVICES. ADMINISTRATIVE 'RECOMMENDATION Adopt the Resolution. : FUNDING $930,390.85 Budgeted by Parking and Police Department for the remaining fiscal Year 2011/2012. : KEY - INTENDED OUTCOMES (KIO's) SUPPORTED Maintain crime rates at or.below national trends ' BACKGROUND Contract No. 34- 05/06, to provide Unarmed Security Guard Services, was awarded -to Security Alliance LLC (Security Alliance) on April 2,'.2007, with an initial term of three (3) years, and three (3).one -year renewal options (the Current. Agreement). The initial term of the `Current Agreement commenced on `May 1_2007, and expired on April 30, 2010. The Current Agreement was renewed for*two additional one -year terms, which expired on April 30, 201.2. At the City's sole option .and discretion, the .Current Agreement may be renewed for one (1) one -year term, through April 30, 2013. At its March 9_201 meeting, and concurrent with its discussion to exercise'.the first and second renewal - options under the Current Agreement, the Mayor and - City Commission also approved Finance and Citywide Projects Committee's recommendation to issue a new Request for Proposals (RFP) for the :aforestated - security .guard services, at least .six (6) months prior to -the expiration .of Current Agreement. At. its September .26, .2011 - meeting, the 'Finance and Citywide Projects .Committee discussed an investigation that involved Security Alliance and "Rooms To Go" employees. After being _briefed by "the City Attorney's Office, the Committee's Commission Memo RFP #23 -11112 Security Guard Services July 18, 2012 Page -2 of 9 recommendation was to issue a new RFP immediately. Subsequently, the item to approve the issuance of an RFP for security guard services was presented to the City Commission at its October 19, 2011 meeting, at which time it was again referred to , the Finance and Citywide Projects Committee. At its December 6, 2011 meeting, the Committee recommended that the Administration proceed to issue the new RFP, but that the results of the new RFP process be compared with the Current Agreement, and to determine whether it was in the City's best interest to award a new contract or exercise the last renewal term from under the Current Agreement. In a letter dated May 3, 2012, Security Alliance agreed to continue to perform under its current contract with the City, on a month to month basis pursuant to Section G of their Current Agreement, entitled "Term of Contract" until a final determination is made. RFP PROCESS On January 1 2012, the Mayor and City Commission authorized the issuance of Request for Proposals (RFP) No. 23- 11/1.2 for Security Guard Services. RFP No. 23- 11/12 was issued on January 30, 2012, with an initial term of three (3) years, and three (3) one -year renewal options. The bid opening date was March ,2, 2012. Ten (10) proposals were received from - the following contractors (See also attached Tabulation, Appendix A): 1. Kent Security, Inc.; 2. Florida Patrol Investigators, Inc. d /b /a FPI Security Services; 3. USI Security, Inc.; 4. U:S. Security (U.S. Security); 5. Allied Barton Security Services (Allied Barton); 6. Responsible Security Inc. (Responsible); 7. G4S Secure Solutions; 8. SM1 - Security Management Innovations, Inc.; 9.. SMI — Security Management, Inc.; and 10. Security Alliance, LLC (Security Alliance). The City 'Manager, via Letter to Commission (LTC) No. 082 -2012, dated March .20, :2012, appointed an .Evaluation Committee ( "the Committee ") consisting of the following individuals: • .Lt. Eduardo Yero, Community Affairs Unit and Contracts Administrator, Police Department; Rocio Alba, Financial Analyst III, Parking Department; .Gabriel J. Paez, Miami Beach Resident, Citizens Police Academy Graduate and Alumni; 'Nick Pietrocarlo, Miami Beach Resident, Citizens Police Academy Graduate and Alumni (Chair); Cornelius O'Regan, Police Support Services, Police Department; and • Carol Lang, Miami Beach Resident, Co- Treasurer of the Citizens Police Academy. On April 2, 2012, the Committee convened to shortlist proposers. Gabriel Paez was unable to attend. Commission Memo RFP #23 -11112 Security Guard Services July 18, 2012 Page 3 of 9 The following Evaluation Criteria was used to evaluate and rank the proposals received in response to the RFP: 1. The experience and qualifications of the Contractor (35 points); 2. The experience and qualifications of.the Management Team (20 points). 3. Past performance based on number and quality of - the Performance Evaluation Surveys (10 points); and 4. Financial strength as evidenced by financial statements (10 points); 5. Total cost (25 points) Additional Points, over the aforementioned potential 100 points were allocated, as appropriate: • Local Preference: An additional five (5) points would be assigned to 'Proposers, which are, or include as part of their proposal team, a Miami Beach -based vendor as defined in the City's Local Preference Ordinance. • Veterans Preference: An additional five (5) points would be assigned to Proposers, which are, or include as part of their proposal team, a °small business concern owned and controlled by a veteran(s) or a service- disabled veteran business enterprise, as defined in the City's Veterans Preference Ordinance. Accordingly, an additional five (5) :points were automatically added to Security Alliance LLC and 'SMI Security Management, Inc. for having local offices within the City. Please note that these - points are already accounted for in .the ranking of firms table.presented in the. following table. The Committee unanimously ranked and short- listed the four (4) proposers and invited them to return for interviews (See Appendix B- Scoring Sheet): 1. Allied Barton; 2. Security. Alliance; 3. G4S Secure Solutions; and 4. Kent Security. The Committee discussed the qualifications, past performance and experience of the proposers. The following proposers were not shortlisted, provided with the subsequent reasons: RESPONSIBLE SECURITY INC. Responsible.Security Inc. was the lowest proposal received. The Evaluation Committee discussed Responsible's qualifications, experience, references and past performance. The Committee concluded that the firm was _too small to handle the contract. References listed by Responsible include .Galt Tower Condominium, Congas Night Club, ATI Career Training Center and City of'Boca Raton, where they have one (1) guard staffed. -Reference provided by City .of Baca Raton was not favorable. FPI SECURITY SERVICES The Evaluation Committee discussed FPI's qualifications, .experience, references and past performance. The Committee noted that the - proposer had listed clients that were Commission Memo RFP #23 -11112 Security Guard Services July 18, 2012 Page 4 of 9 smaller in size and contract amount. Another concern expressed, was that the billing rates proposed for the unarmed guards and supervisors' classification were the same. References listed by FPI include Blue Lagoon Condo, Continucare MDHC, Fisherman's. Boat Group, Philips .International Holding Corp. (A retail mall and .largest contract listed with 1300 hours weekly) and Silver Lakes Community Association. USI SECURITY The :Evaluation Committee' discussed USI Security's qualifications, experience, references and past performance, - and concluded that the firm had listed small sized organizations as clients which did not include any similar size .government contracts. References listed by USI Security include, Mary Brickell Village, Coccia Realty, Keansburg Board of Education, Veterans Affairs Medical Center and Geraldine Thompson Healthcare Center. U.S. SECURITY U.S. Security was the highest proposal received. The .Evaluation Committee discussed U.S. Security's qualifications, experience, references and past performance, and concluded that the proposer lacked experience and the rates were the highest. References listed by U.S. Security include Resort World of Miami, Coca Cola Commercial Products, Klmco Realty Corp., Greyhound Terminal, and Aventine Condominium. SMI — SECURITY MANAGEMENT INNOVATIONS, INC. The Evaluation Committee discussed SMI Security Management Innovation's qualifications and experience. The Committee noted that the proposer had failed to provide past performance surreys for reference. The Committee expressed concern on the financial stability of the proposer, since all assets are located abroad. Billing rates proposed - for the unarmed guards and supervisors' classification were the same, which was a concern to the Committee members as well. References listed by SMI Security Management Innovation include United Parcel Services (UPS) Miami International Airport (MIA), Amerijet International (MIA), Catholic Housing Services, DUO Condominium, The Laurels at Jacaranda, Element Miami Airport Hotel, etc. SMI — SECURITY MANAGEMENT, INC. The 'Evaluation Committee discussed SMI Security Management's qualifications, experience, references and past performance. The Committee concluded that the proposer -a poor rating on a past performance survey, lawsuits pending, as well as negative equity on their financials. ..References listed by SMI Security Management include LAN Airlines, White Rock and Quarries, City of Miramar, Taca . Airlines and Courtyard by Marriott. 'During the Committee meeting, the Committee raised issues pursuant to an email sent to the members by SEIU (See Appendix C). The Committee liaison from the Procurement 'Division advised the Committee that she would follow up on the issues raised in the letter, and provide a subsequent response to the Committee. A motion was also made to have the following information available-prior to the next Committee Meeting: Commission Memo RFP #23 -11/12 Security Guard Services July 18, 2012 Page 5 of 9 • Follow up on the issues raised in the letter provided by SEIU on 4/2/12;. and • Identify.which short - listed companies have union bargaining agreements. On April 9, 2012, the Committee members were provided with staff's e-mail response lo SEIU's 4/2/1.2 letter (See Appendix D). As to its .second question, - three (3) of the four (4) short- listed proposers confirmed existing union bargaining agreements (i.e. Kent Security was the only contractor without a union bargaining agreement). . On April 16, 2012, the Committee reconvened to listen to 10- minute presentations from each short- listed proposer, followed by a 20- minute Question and Answer (Q &A) session. At the conclusion of the last proposer's Q &A session, the Committee members scored and ranked the proposers. A motion (which was unanimous) was made to recommend that the Administration enter into negotiations with the Committee 's.top - ranked proposer., Security Alliance; and should the negotiations be .unsuccessful, that it negotiate with the second ranked proposer, Allied Barton. The Committee's final rankings are as follows: FINAL RANKINGS �� LOW GRAND Nick Carol Gabriel Rocio Lt. Ed. Tim' AGGREGATE. TOTAL' PROPOSER,r. Pietrocarlo Lang Paez Alba Yero O'Re an TOTALS PRICING SECURITY ALLIANCE 93(l) 105(l) 98(l) 92 (2) 97(l) 104(l) 7 1 $3,039,500 ALLIED 'BARTON. 88 (2) 100 (2) 80 (2) 93(l) 89 (3) 85 (2) (12 )2 $3,005,000 KENT SECURITY 70 (4) 80 4 78 (3) 91 3 96 (2) 65 (4) (20 )3 $3,002,200 G4S SECURITY 80 3 90 3 68(4) 90 (4) 83 (4) 75 3 (21 )4 $3,098,200 When tabulating the costs, Security Alliance came in at $239,000 more than the lowest proposal received, and Allied Barton came in at "$205,000 more the lowest proposal received (See Appendix A). ANALYSIS An analysis of the two (2) Committee recommended :proposers and .the renewal of the Security Alliance contract: A. RFP "Proposed Rates �- The following provides a brief and review of the two (2) recommended proposers: 1. SECURITY ALLIANCE Security Alliance was founded in 2001 by former US Marine and current President, David Ramirez. Security Alliance has successfully .provided unarmed guard services to the City of Miami Beach since April 2007. Security Alliance has a Miami - Beach office located at 1234 Washington. Avenue. This strategically selected office location, and the personnel :assigned there, are dedicated to the services for the City of Miami Beach. The operation is active twenty -four (24) hours per day, seven (7) days per week, year round. In 2010, Security Alliance willingly completed a collective .bargaining .process with the Commission Memo RFP #23- 11112 Security Guard Services July 18, 2012 Page 6.of 9 'SEIU (Local 32BJ) - allowing its employees to organize to protect themselves = with the aid of Union representation. Security Alliance has certified that if will - pay the living wage rates and offer domestic partner benefits to its- employees. Security Alliance has recently 'completed its certification process for becoming and environmentally friendly company. As of December 2011, Security Alliance is certified through the 'ISO 14001:2004 program. for implementing an Environmental Management System. Security Alliance is a Pillar-Member of the Miami Beach Chamber of Commerce and has been a Gold or Silver Sponsor .of the fund raising golf tournament of the Chamber each - ,of_the last four years. Security Alliance also recently donated to a fund raising campaign for the Miami Beach Chamber benefiting Education. In addition, Security Alliance has developed a relationship with a local Miami Beach bicycle shop for the regular maintenance of these bicycles, which are subject to tremendous wear and,tear on a daily.basis. Other-contracts include Miami -Dade County, Johnson and Wales University, Homestead Miami Speedway, and Graham Companies of Miami Lakes. 1. UNARMED GUARDS -; II SUPERVISORS ; B0,000 IHRS /YRf y 30;000 HRS /YR ' Via` 3„i'" _ . Bill Rate /hour ' Total Bill Rate /hour Total GRAND TOTAL Secu rity Alliance $ 18.65 $2;424;500 $ 20:50 $615,000. $ 3,039,500 Proposed '1 . '`iRateS 2. ALLIED BARTON Allied. Security was founded in 1957 in Pittsburgh, PA; as a provider of uniform security services, and by 2000, Allied Security grew to 60 offices across the country with over 9,000 employees. In August 2004, Allied Security acquired Atlanta- based Barton Protective Services, forming Allied Barton :Security Services. Allied Barton's network consists of over 53,000 -employees,- serving more than 3000 clients. Allied Barton- .employs more than 2000 security officers in the South Florida tri- county area. They deliver' 30,000 man -hours of security service in the 'Miami -Dade County area. Allied Barton has local Miami -Dade Dispatch Center which provides a complete .24/7 dispatch .capability. 'They have two Service Assurance Centers that operate 24 - hours -a day, '7 days a week, 365 days per year .and are available 'through a toll free number at 866 - 703- 7666..Allied Barton also has two 24/7 national call centers providing redundancy in emergency situations. Other county and city contracts are: `Miami -Dade County; Hillsborough County, Broward County (Port Everglades and Fort Lauderdale International Airport); - the Government of the District of Columbia, Bexar and Harris County in Texas; the counties of San Bernardino, 'San Diego and San Mateo in California; Clark County, Nevada; and Charlotte /Mecklenburg County in North Carolina. Allied Barton has been named to Training Magazines Top 125 Training Companies for six consecutive years. They will create an on- the -job training checklist and a City of Miami :Beach- specific exam that their security staff will Commission Memo RFP #23 -11112 Security Guard Services July 18, 2012 Page 7 of 9 have 'to pass in order to be posted and remain at the site to ensure that their officers live up to the City's requirements and expectations. - Allied _Barton has certified that it will pay the living Wage rates and offer domestic partner benefits to its employees. Vi' UNARMED GUARDS- II SUPERVISORS'' 30;000 HRS .YR' 130'6000RS /yR / x ' a Bill Rate /hour Total Bill'Rate /hour Total GRAND TOTAL Allied Barton 18 f �� =v,„ � $ .53 $ 2,408,90Q $ d 19.87 $.596,000 $ 3,005,000 i,Propose m3s 3 5 Rates�.' B. Renewal Option In issuing the new RFP, the Mayor and City Commission also directed staff - to compare the results of new "RFP process, to the Current Agreement, in order to determine whether it would be in the City's _best interest to either authorize the negotiations and, if successful, award .a new contract pursuant to the new RFP, or to reject proposals and renew the Current Agreement for one year. The following chart compares the billing rates proposed by Security Alliance in its response to the new RFP, and latest rates (for FY 2012) under the Current Agreement: { I UNARMED GUARDS It. SUPERVISORS 130,000 HR5[YR 30,000.HRS /YR Bill Rate /hour Total Bill Rate /hour Total GRAND TOTAL Security... . Alliance $ 18.00 $ 2,340,000 $ 18.00 $540,000 $2,880,000 Current Rates The City's proposed Living Wage rate for Fiscal. Year, 2013 is $11.28 per hour, with benefits valued at no less than $1.64 per hour or $12.92 /hour, without health benefits. The increase to the proposed Living Wage rate for FY13 (plus FICA/MICA (7.65 %) - equates to a $0.81 increase. If applied on a straight dollar -to dollar (plus FICA/MICA) basis, the calculations described in the chart below results in $18.81 for unarmed . guards and .$18:4 for supervisors (it is important to note that .the increases .do not consider any ripple effect as a result of payroll compression (i:e. a similar percentage or dollar per hour increase for employees. who currently earn in excess of the .proposed living wage rate) but does include FICA at 6.20% arid MICA at 1.45 %, which has been the common practice in .offering increases during the implementation of thethree -year phase -in): Imo,.. "otal FY 12_ 0 13 FY 20 Pa 12 20 20 A PIA , FY 13 2 y y Increase , FICA/ Increase Bill Sill „ Elassification . � . Rate ,,,,,,, Rate TY;2013 MICA ;;'._ 2013 ._ Rate , Unarmed Guards $12.92 - $12.17 = $0.75 + 7.65 %. _ ..$ 0.81 + $18.00 = $18.81 Supervisor(s) $12.92 - $12.50 = .$0.42 + 7:65% $ 0.45 + $18.00 1 = $18.45 Commission Memo. RFP #23 -11112 Security Guard Services July 18, 2012 Page 8 of 9 Beginning October 1_2012 the remaining seven (7) months of the renewal year Would need to adjusted to the proposed Living Wage rate. I �� RFP�Proposed Rates from;August 1; 201'2 through April 30, 3 2013 3 i 3 3 L � .I. UNARMED GUARDS HOURS LI. SUPERVISORS HOURS 97,500 /year* . 22,500 /year* Bill „`3 Bill GRAND Rate /hour Total �......... _,, Rate/ our Total TOTAL ..:.. . Security .Alliance Proposed $18.65 $1;818,375 $20.50 $461,250 $2,279,625 Rates" -• { {' Renewal opt {on of oneJ1) yearwith Secur {ty A{liance FY201112012 fro %Au ust1, :20:12 throe h S,e tember 30, 2012 I. UNARMED GUARDS:HOURS II..SUPERVISORS HOURS 21,666* 5,000* Billf Bill GRAND Rate /hoe �. r , . Total Rate /hobr Totai TOjTAL Security Alliance FY2012 '$18.00 ` $389,988 $18.00 $90;000 $479,988 'Rates: FY,20;121131MO rri�, lotober 1, 2012 throe h ApriL.30, 2013' _,`, L UNARMED HOURS II. SUPERVISORS HOURS 75 17,500* . _ Security: Alliance :,: FY2013 $18.81 $1 $18.45 $322;875.00 '$1. . Rates �� • $2,229,288 *Assuming straight line usage of hours. TOTAL:DIFFERENCE.IN COST ($50,337) Although the $18.81 :bill rate , for unarmed guards is greater than •the new -RFP rate of $.18.65,,andthe hours-for unarmed guards are substantially more than for - supervisors, it is still a better option for the City to renew the Current Agreement for the remaining. nine (9) months . of the'term of contract, and limit the Living Wage adjustment ,to the straight dollarao dollar (plus FICA/MICA)'increase. Additionally, 'the - second ranked - proposer, Allied Barton Security Services proposed an -estimated annual amount of $3,005,000 (see Appendix A) which is .$34,500 less than Security Alliance's estimated annual amount of $3,039,500. . MANAGER'S "DUE DILLIGENGE ' After considering the - review 'and recommendation of the Committee, as, well as reviewing :the .Administration's..analysis with regard to the City's options (i.e. accept a proposal vs. rejection of all proposals and, in the alternative, -exercise the third renewal Commission Memo RFP #23 -11112 Security Guard Services July 18, 2012 Page 9 of 9 term under the Current Agreement), the City Manager has exercised her due diligence and recommends that it would be in the City's best interest to authorize the Administration to renew the Current Agreement for the third (and last) one year renewal term retroactively effective as of May 1, 2012 to April 30, 2013. Under the Current Agreement, the City has the option to renew the contract, at its sole discretion. The Current Agreement expressly states that "Renewal of the contract is of prerogative, not a right of the contractor. Such option will be exercised, if at all, only when it is in the best interest of the City of Miami Beach." In exercising the last renewal term under the Current Agreement, the City Manager further recommends that the Administration limit the adjustment of the bill rate to the straight dollar to dollar (plus FICA/MICA) for the proposed living wage adjustment date, effective. October 1;'2013. Additionally the Manager further recommends that the City Commission authorize the issuance of a new RFP for security guard services. CONCLUSION The Administration recommends that the Mayor and City Commission reject all proposals received pursuant to Request for Proposals No. 23- 11/12 to Provide Security Guard Services (the RFP) and, in the alternative, recommends retroactively approving the third renewal term of Security Alliance's current contract for security guard services, dated April .2, 2007, with such third renewal being effective as of May 1, 2012 to April 30, 2013. The Manager further recommends .authorizing the issuance of a new Request for Proposals (RFP) for security guard services. TAAGENDA\2012 \7 -18 -12 \RFP 23 -11 -12 Security Guard Services - Memo.docx O O O O, G O O C O O O O O O O O O O to O 'N N O O O I CD O O O> t!) N ao O N O M ti O 0 C ,p p 0 O, N" M M M CM N Cs N N M M d4 69. 6n- EA 64 64!)- . • , . 6C.� 613 . ft? ,.. O O O O O O O O O O O O O O O O O O O O O O O O O : O O. O O LO O p 00 . if) tn - 'ti ti N LO 00 CY) Cfl CD 2: O (fl to Lo (D .Lo LO LO Ul) , U') to .. p 0 o. . 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C 01 O O O �+ N cr M fn (1) N M (0 Lo 'I� 00 " 00 'p r 0> _ . _ CL CL W o a�.� L.� o 0 �a O z 0 'a Q o' " p.Q' O y ,� p C r (O , O r- ti 00 O O O N O •- O) 00 O co r- r- O (O '(o LO ' ~ ~ = O O N d � :� Q C9 CD m is N Y L) L) N C r -�- r O Lo .N . O Oo O 2 76 2 Q OL y Ru V C) , 0 Co • � r r m r I` .00 ..- W a) Q) , W .O U ci d d y� 1 O O o to > > U c c W Z c c L) E c N '' 'E :E U) o 0 O _ o O N N N Y / y U U 3 O U, C C to Z . c6 ;, U .. U 7 "O U C C (n n3 N la) 4 J LL CD V) (/) U N (0 (0 C �l :L '� fn U , (0 ft3 O m a) Q v c U) U) '� .� y O U c .U) .U) U) '� CO m m W \. U- I L N t- APPENDIX C -32BJ March 31, 2 0 1.' Dear Mea?tber oFth 'f5va €urstion c0mntiflee •: _ As you ccrnsidex propmmis 16 R1'P 23 - 1 - Sacurity Guard Semi :v%, we want to arge you SE IU .tC.e�onsider the following in:'ornnatior; about K�l_���L>� io € iake y.,)ttr ;IecisirTrs, 9EJU is engaged hi it n.aiorw•dc crin, pai p to increase standaws -in Flu security industrc. Stranger Together f 1 ortunately..the private sccu ity 'industr�, has h=i€ plksgued by w ! many continctors with rr€ inirna€ standards and a poor record in their relationship tc their cmp <ovecs. R'e 1 e €icve tl €nt ottc al'those °orrtractora is €ion: 't urim, which-, submitted a ro 3 tsal t€ r t €IC aforementioned MIC - p €n April'f311, ;� °itltt €rc itcl{rtal'l. :cTCal 3�ftJ f en mp €ny��,attllet it of it!lraml t€ec a KEVIN J. Donn complaint with the City's llurehasin& D recwt - allc ing violatiwv of hr. Cit y's 1 ivla Wage z•` r „- Or6nar :ct . The employees had bee.w. iUe_�.nl y underpaid for years, with sc, €tte geaing paid as HtC UWJ °A much as $1Z x.€ € our lwh 1w the mwidaw -d rates. Ater i?vera 1 mont1s, a period reheat worker; were € irved to go out on strike tv €riake their vnic• s heard rite Cm, agreed 11te Kent vrc . -p er v io1 t d he I,iVinS W age 1: aw by under€mying vvorkcrs. Jl€c,eai�, Keitt led a c:erti :xkltian r.Yt1 ern with f€€e CiC fake€ cla uuin = rtixas in cnm )Hance n ith the lar . As oft €re c i €e oftiris letter, ufrJCSCO l,Fr)zra y t. € E.FPJ[ €tF H.E; A..AE "A r]F.R neaj - h - a Year voter the eompialnt was filed. Kv it adjusai'tf,E payi:ag %age rrtei to - .. - r$f.1srJ tMhl3itrLi , i'.Ont w the law. 1-4G�v;3ver, has sfalf not rerd rlrti Crlf li3 '[7C:S iUr I. €Ir t'C.ar$. CTf .VFtl kr:il 10 p'� lr3 hLirSt: p } -- --- €llegrt undertlaymenr ha! they were subjected to. FLORIDA DISTRICT l.F'c Brasscr ttlilitiona%, Kent has a long himory of' serif it ed atair t if vn its affiliates for issues, W, t ineludi iig unpaid,wages a1 ± €1'ut; �rinaination, We have a w attachect an im-crt detailing tlwsv , issues but some of The most e irwil €dc: ices r t g . . rocat:32 Headquarters - Iu .1111y 20PS I?14 -n Greea geld. a. former luny x'1 of Sales, filed a lawsuit a sainst Y. Kent trust-, i g gs:'nde; ar;d pregr?aucy d64:rirnimtfon said harassr wt,. The plaintiff alleged that after inform ing Kent that sfic was she experienced harnsimeni. r +av rierrrcitrci pm Tn ;urn: it €a tee, and z ltimatelL construct;vol} discharged. Thec .'Cap"Ama Distr€vi w•as settled of Soptcnttrei * 09 wr .h € nk'uw.n terms. - Oil iwo sel?arrve caws'i €€ 2009. plaintif`s Russell Casxz mte and Jose l3rtir.. xrrecl K; . ,' -s Kent under the fair Labor Staodards, Act seeking to recover.un €raid wares, [ vcn as [v�enenprttt Dt s tritt rent denied any wrongdoing, it soiled the cnses for 56,1000 WILL S5,5?S :E50, respesaive:Iy.. a PlLmse des not hesitate to convict me 4 you hnvc any questions. Dl:trut tzoe S €ncerclv.. r ric €3rakken i•Ia[ €orrat[OrtFL1Ntlte4Y Florida District Dirc -;w' t]remen and OtlenOtstrter Sf:.tf! - .vvt 14 NE 1st Avc. Suite ptl_`: ^New.)eneyDrstrtct Miami. Fl ?313 Western P^eram)"anta APPENDIX D Delvat, Cristina -From: Delvat, Cristina Sent: Tuesday, April 03, 2012'2:51 PM To: Aquila, Raul Cc: Estevez, Maria Subject: RE: Citynet - Purchasing Website Question Per the email sent by the Purchasing'Director of the City of Miami, Kent.Security is currently in compliance. MIAMISEACH Cristina Delvat Contracts Compliance Specialist PROCUREMENT DIVISION 1700 Convention Center Drive, Miami Beach, FL 33139 Tel: 305 -673 -74961 Fax: 786- 394 40001 cdelvat @miamibeachfl:ooy We are committed to providing excellent public service and safety to all who live, work and play in our vibrant tropical, historic community. Think G reen. Keep it on the screen. From: Aguila,.Raul Sent: Tuesday, April 03, 2012 2:31 PM To: Delvat; Cristina Cc: Estevez,'Maria .Subject: RE: Citynet - Purchasing Website Question No closure from City of Miami ? —i.e. did they ever respond to Kent's last letter and was Kent found to be in compliance or not? MIAMI SEAC Raul J. Aquila, Chief .Deputy City Attorney OFFICE OF THE CITY ATTORNEY .1700 Convention Center Drive — Fourth Floor;, Miami Beach, FL 33139 Tel: 305- 673-7470.or 305 -673 -7000 1 Fax: 305 -673 -7002 1 www .raulaouilaCa)miamibeachfl.aov We are committed to providing excellent public service and safety to all who live, work and ploy in our vibrant tropical, historic community. - 'From: Delvat, Cristina Sent: Tuesday, April 03, 2012 1:46 PM : To: Aquila, Raul Cc: Estevez, Maria Subject: FW: Citynet - Purchasing Website Question Hi Raul, Please see Attached letters regarding Kent Security's violation of the Living Wage at the'City of Miami, Should 1 forward the information to the Committee members? Thank you, MIAM MEACII Cristina Delvat Contracts Compliance Specialist PROCUREMENT DIVISION - 1700 Convention Center Drive, Miami Beach,'FL 33139 <- 'Tel: 305- 673 -74961 Fax: 786-394-40001 cdelvatalmiamibeachfl.cov We are committed to providing excellent public service and safety to all who live, work and play in our vibrant, tropical, historic community. - 1 Think G Keels it o n the s _ 'from: "Robertson, Kenneth [ mailto :krobertson (amiamiao Sent: Tuesday, Apri103, 2€112 11:38 AM 'To: belvat, Crstin? cc: Estevez, Maria Subject: RE:.Cltynet - Purchasing. Website Question Good morning: Please review.the attached documents. After several letters during our investigation process, Kent Security is currently incompliance with the living wage rate requirements of IT8 Contract 16014. Follow -up Miami Herald article is also posted below. Thank you, http:( /www. m iam €hera id. co ml2012ZD3 /2912722726 /s ecu rity- contracto r- pays- back.html Kenneth Robertson Director l Chief Procurement Officer City of Miami -:Purchasing Department Miami Riverside Center 444 S:W. 2nd Avenue - Gth Floor . Miami, FL.33130 Phone:(305)416 -1910 Fax :(305) 4164925 E-mail: krobertsor @miamiiov.com Website: http:// www .miamigov *.com /Drocurerrient/ This communication may contain confidential and /or otherwise proprietary material and Is thus for use only by the intended recipient, If you received this in error, please contact the sender and delete the e-mail and its attachments from all computers.'Due to Florida's very broad public records law, most written•, communications to or from City of Miami employees regarding city business are public records, available to the public and media upon request. Therefore, this e -mail communication may be subject to public disclosure. . From: Delvat, Cristina� [mailto:CDelvatnamiamib- achfl.slovj .Sent: Monday, April 02, 2012 4 :19 PM To: Robertson, Kenneth Cc: Estevez, Maria Subject: Citynet - .Purchasing, Website Question Good afternoon "Mr..Robertson, This morning the Evaluation Committee for RFP #23-11112- Security Guard Services convened to shortlist. During the meeting, members were Informed that Kent Security was in violation of the Living Wage of the City of Miami. In order forthe- committee to make an informed ranking of the companies, we would like to know the facts. Please let us know the details of the violation. Thank you in advance "for your•assistance with this matter. r nun t t I 3'ItiTI�E I .CA F ttC »[ .1 tJI� JI F:IIII'I MAR�ITI?� EZ PX. cNerFmcum-W)l01T, = Ci ' i+ er February 24, 2012 SENT VIA: ENTAIL fhcnnr_6_sluorockIgSa Frank H. Henry, Er>q. Biuerock Lega, P.A. 11645 Biscayne Boulevard, Suite 4011 North ?Alami, Florida 33181 RE: KENT SECURITY SERVICES LIVING WAGE RATE NONCOMPLIANCE Dear Per. Henry: Ir respnnse to previncts cnrrespnndenc¢ regarding the subject matter, on hursday, Novembe r 3 2011, Kett Security Services "Kent) hand delivered the attached Lining Wage Certification dated Novernher 2, 2011, to my oft`cp (Attachment 1). "this rertiFiralion was etahmitteci in order to become compliant with ITB Contract 16014 General Conditior 1.40, CITY OF 41IAIAI.LIVING " WAG t7RDINANC:7, which raquirrs that `jeivery six the service ronirartor shpli file with the city's procurement director a listing of all c ove�ed employees together with a certification of compliance with this article.` As You are aware, Eid Contract 16014 was awarced to 'Kent Pursuant to the terms and conditions of Invitation for Bid (IFB) 16014. Special Conditior 2.5, Living Wage Ordinance. Page 29 of the IFB clearly sates: "City of MiamFs Livirxl Wage Ordinance is applicable fo this semce.contract: Please refer to Section 1.407 of the General Terms and Conditions for further information and guidance on hour to comply wiN this ordinance. General Condition 1.40, City of Miami Living Wage Ordinance, on Page 18 of the lFB and its cked Section 18 -556 of the City of Miami Code of Ordinances clearly state: 'Living wage means a wage set at a levee/ epuaf to 110 percent cf the poverty guideline as published from time to tirre by the U.S. Departmer!t of Health and Human Services Poverty Guidelines (persons in households of four). Trre 2006 livinc wage is no less than $10.58 an hour with a health benefit plan T'emphasis added]; as described in tais article, or a living wage of. not less than $11.8; an hour without health benefits lemphasis added]. The living wage shall be adjusted annually by rtc later than April .1 foliowirg the puNication of the Cif Vt4f 11Gi iiluilGV t�itLltGitllY{J. Section 18 -557, Living Wage, Subsection '(b ), .Health benefits; eligibility period, of the City of Miami Code of Ordinances, clearly states: (b) Health benefits, eligibility period. -For a. covered employer to comply with this article by choosing to pay the lower image scale available when a covered'employeralso provides a standard health benefit plan, such health benefit plan shall consist of a payment of at least $1.25 per hour toward the:provision of health . benefits for covered employees and their dependents and shall be approved by the city ff the health benefit plats of the covered employer requires an initial period of emp.loyment fore new emmployee"to be eligible for health benefits (the "eligibility period'), a covered employer may qualify. to pak the $.111.58 per hour wage scale for a term not to exceed the new employee eifgibility period provided the new . employee will be paid health benefits upon completion of the eligibility period which period shall not exceed 90 days. Previous correspondence regarding this issue communicated all calculations in support of the City's living wage hourly rates for Years 2006 _ 2011. This 51.25 health benefit value was duly sectored into the yearly living wage rates required of ITB Contract 16014. Wage Wage With Health Without Year . 'Benefit Benefit ,Benefit " 2006 10.58 1.25 '11.83 20€1:7 10,32 1.25 12.17` 20€k8 11.2'1 1.25 12.4& 2009 - 11.66 1.25 12,91 2010 11:86 1.25 12.91 2011 11.82 1.25 13.07 ITB Contract 16014 and the Living Wage Ordinance are both clear that th value associated with not providing a health benefit plan equates to $1.25 per hour: $11.83 - $10.58 = $125.11 choosing to pay the.-lower wage scale throughout the contract term, Kent is contractually required .#o , pay an ladditional $1.2S per hour toward the .provision of health benefits for cowered employees and their dependents. Kent's Living Wage Certification dated November 2, 2011, specifies the (then) current salaries of 34 covered employees working under ITB Contract 16014. Of 34, covered employees, 32 of them are making $12.40 per hour; one Is snaking 512.65 per hour; and one is making $13.50 per hour. 'Please note that the 2011 living wage hourly rate with - a health benefit plats is $11.82, The n n44 }...:.�... .....__ L.^.. -I.. __Ap, . Z: h_._ - .G...... }AY. J........= .I-- ' CaAO Il^l Tk.,.., n:A., ...[ k6: «.....: ^.-- .4V11 }JVIIIiw .vvayv Iavul ly Idal:- VVKLIIUU. ik ,kkC¢R}i!1'iVa lisi wall lb F:3.til.- IEIC't.✓!iy 1J1 Iv}kX }I}i s,411 _ logically presume, - therefore, that Kent is choosing to:pay'33 out of the 34 covered employees the lower wage rate'because they are actually receiving a health benefit plan. Page 2 Accordingly, please fcrovard proof to the City of Miami that the tolloywing covered employees ere. currently receiving a heap, bereft plan and were receiving a health benefil plan during calendar year 2011•: .: Adel, Robert Aleio, t= rancia Arias. Zulsay B olivar, Ernst _ Cantillo, Jorge Cruikshank, Nigel Dixon, Edgar Edwards, Eddie ' Exposito, George Filtidor, John Gabela, Melissa Godinez, Guillermo Gutierrez, Rafael' Hennednant, Anthoniel Lafosse, Kenly Langott, Detanecs Levi, ltzhak l agora, William Mathieu, Pierre Moradel, Cesar Moyer, America Pierre, Sanley Pierre, Bayorne - 'Polydor, Steve . Prevat, Ro .. Reriard, Herbert Rios, Eric Rodriguez, Sandor San. Abilio irmthea, Renaud Tongue, A leer Valles, Mane Willis, .Anthcny Thi. information is requested not later than close cat business 5:00 PK Thersday, March 1, "x'[112., Pursuant to General Condition 1.40, Paragraph 8, on Rage 19 of the iFB: "failure to c n wjtti the U ty o` Mvatm Living sNacre �,rdjnanca may result _ in legal actior? by the covereo a ployee or former covered employee as allowed by Florida Lain, ccurt .irnpos'eld] sanctions, yi4e irnposel sanctions, sucP as pay wage rest,lution, impcso['dj monetary damages, suspension or terrrineffor of payrnen termination of oodracf, and debarment. Additionally, pursuant to Section IB -553 (d) of the City of Miarr i Gad of Drdinance : Pear 3 (d} ' Sanctio ns. agarrrst.sery +contractors i =Qr vigia roes ai thts arlrck the crty shall sancfton a .service contmcforbyrequifing s er vi ce car �Y.wage restttutren at its e�ens� for each affected ern to ee �e ert nra also sarscf'o tfre :servroe contractor in at least one of the' P_. .Y y _._..... _w_.. ._._.. �L)It4lNfr?�' aa`fif�K?na� v✓F� x TI18 irr� lJix"3 itrT µ • �.1 .:. __.._..w,Y_...,.,.�`� _�?ose�damag�s �n ttr� sum of � ��? �rrr e�erh seek for cacti' • cc}ver�ti B�fA�� fa►flti fA h�Ve 13taP ���n j38id�in .aGCOfcl�rac� tN1th tits �rftCle , {2J 7 s ci , tyy susf3ei or tart rrtat pant under the service contract or terrninst� the contract wrth the sertrr carftracfar, efad� . (3) 7h citr mev declare :the service cerrrfract,?r rnetigrble frartutuf e service contracts ft�r tftre ysor raratrl atf p�naltrss arrd iesfitutir have t'esn paid In full u%h y Ycti Jrtctdiflon atryrrzptortkaa3tes�etttbie Sara senAteta contract where rrin i ar�cr�licst o af suchamptoyer erc rfnc f a vers of a £sen✓res ccsrrtra rcrrht�:hss bartn declared trrElri,le rano'erthrs artrcte ; Failure to provide the requested inhaamation in•writinq may expose Kent to the sanctions above identified. Sboutd you'have any questions, please contact,me immediately at office number (305)416-1910 orvia email at krobertson0miami oc�v. m . Thank you Sincerely, .' K enneth J. - Robertson Kenneth Robertson IsI Director f Chief.Procurement Cf(icar KR1kr encl. Attachment 1 cc: lFB File; Mr. Gil Neuman, Kent Security Services: gneuman tt{"lkentsecurity.corri PagW4 n .mss November 2,20 1 Kenneth Robertson Director/Chief Proememeut Officer City of Miami Purchasing I1epmtinmt 444 S.N. 2d A1,e - 6 Miami, FL 33130 Re:; Kent Security suvires. The. Dear Mx. Robenwm Atwhed is a list of every employee of Kent Security Services, Inc., who provides semlrityservices to the -City ofMt=L Each of these employees is paid $12.40 (or snore) perhour. 11is.Ietter - will serve as certification of compliance with Article 1.40 of the Invitation for Bid. Sincerely, oil. Neuman CE© Ga). TM ?:365.919.9400-1 -80C -KENT (5358) F. 305. 919.0590114600 Bxcayne BQWSva-1, Mani, FL 33181 i wwV.kentzecurP.y.00m KENT SECURITY A a a t _m a. ra Jc 4 . t L a .a .a t- t, 4, 4- ;4 � .cam 4 ,sue 4� .z� ., ..�.. c. � .0, a .� .s. G7 -+• Q o C2 C - 0 C3 C] C7 O --t C7 b C7 -•> pp O O C5 - M CD Ci --+ -* O Q to C] . t3 ? th L"r to A N-• CPt W L9 W .da3 C ?? W CJl C. 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N N N N e.1 "N N N N N N N N Ili N) N N N N N N N N N N "N'N N N N La N to . o 0.0 O CI' O C3 c" t3 0 0 0 o C) C) 4 0 O- 0 :BLUEROCK L E 'G 'A L, P. A. " DirectDi€il (305)981 -4300 i acsimile: (305) 981 -4304 ffi nr blueroc e22.i.CQtn - March 1, 2412 VIA F, ax Q0541649251 and US lVIail . Kenneth Robertson Director/Chief Procurement Officer City of Miami Purchasffirr Department 444 S. W. 2d Avenue ZYIOO'r MiamLYL 33130 Re: Kent Security Services Dear Mr. Robertson. As your file vv ill reflect, thisIawfirni represents Kent Security Services, Inc. Thank you for _ your letter dated February 24, 2012.: You request in your letter we "prove" to the City of Miami that a number of individuals identified in your letter are "currently receiving a health benefit plan and were reeeivirig a health benefit plan during calendar year 2011. You also commented on that issue that the City "logically presumes" that Kent Security Services; Inc., is "choosing to pay 33 out of the 34 covered employees the lower wage rate [of $11.82 per hour] because they are actually receiving a health benefit playa, As a preliminary matter, you should be aware that none of Kent Security's .employees - working on the City of Miami contract' are being paid $11.82 per hotir. All of those employees are I being ;:paid not less than $1240 per hour. Your comment that Kent Security is "choosing to pay 33 j out of 34 employees the lower wage rate" ,is incorrect. Your email to .Terry Tollefsen on July 18, 2011, was the first we learned of any established - wage rates -applicable to the City of Miami • contract. You. can review the dialogue that we 'had relating to -the issues in your letter, and other issues that you raised subsequent to your first letter. Kent Security's response has been consistent throughout - al =hough we disagree that the wage rates ` that you described in your letter can,be drawn with any degree of m the City's Living Wage Ordinance, we agreed.to setthose wage rates as a minimum threshold from that.point fbtward. Ail Kent Security employees worlang on the City of Miami contract are being paid in accordance with the wage rates iii your letter of July, 20 11. Kent S ecurity also maintains a generous health insurance plan for its employees. Those.employees.Working on the City of Miami contract 10600 Biscayne Boulevard ( Suite 410 t Nllami, FL 33161 - w%gw.bluerocklegai.com - Kenneth.Robartson March 1, 2012 rye a-ict are each entitled to participate at no cost for their o eovamge; ,After otut` lash cci s ondence with ou: on those, issues you asked that KrT Securi "c ` its - Da ll" 9QM forward. Kent Security's Chief Executive Of Eicer, aril Neuman, did so on Hove ber.2, 2011. The em toy s wQxking on the City of 'Mian6i contrw;t who have actually elected eta.. participateiuK --ntSecurity's health ins mceplanareEdgarDixon ,Delanec > l_xngoft,SaaleyFierrf, and Rafael Gutierrez. Kent Security has retroacti vely adjusted the rerna�eler'cifits employees an the City of l zaii .coritrac# to $13.07 perhoir from July 18, 2017, the 4ywc xeeeived' YM-zr initial correspande even though each of these employees is eligible to participate in Kent ecud y.'s heat h insurance plan but has elected not W do so: On a separate but xelated ime, we request Chit you con&ider email: mrimpondence that you received from'Vivian C#e , Kent Security's Controliex, on Novebib--r 4, 2011, four xi aft ago; ne correspondence ml .ated to your mggestionto Kent Seauityin Septembex. the. the City's bill rate be.adi usto d to accommodate whatyou abaracteri ted ss'an increase inthe l:,iving Wage. mss: Cheuxig Tote to you for approval for t at upward Tlu=e t of 20 cents.per hour to ibt .GITs's bill Tate. To . date, neither Ms. Ch -ungn r anyone else at Kent Secarity has receives. aresponse. The net e fect is that the wage rate paid to employ= was increased, but fhe bill rate to the, City remained t same. Kent Scc ty has been privileged to serve the cit ens of t ie Ci ty ai 1vfi for the past five years, ;Kent Seoxifty and the City of Miami. are now in the :may iiinth month of a•sixty month cont =t?lease let us know ifth= aTe Atha issues that you perceive may need to be add ssed the brief remaining term. Please do not hcsitatr.to 6 al. if you wish:tQ discuss any of thp' issues address- d iia this l 0a. Simerely; Fr cnr Security_ contractor' -hays back wages to workers - 03/30/2012 "vtia iF3exald_ccirri Pale 1 of 2 Z heAftamt Her 4� Posted on Fri, Ma r. 30, 2 Seclu`ri y contractor pays back wages to workers Py'Lidia Dinkova Special to The Miami Herald - A security company has agreed to increase the pay of guards working,on city contracts after'Miami officials investigated whether the company failed to comply With a "living law. The law sets.minimurn hourly rates for employees of city contractors While they are working for the city: Kent Security agreed in March. to a retroactive pay bike after Miami's Purchasing Department launched its second investigation into Kent's payroll records. Based on those records, for periods of 2011, the city sent Kent a letter indicating that 29 out of 34, . employees working on city contracts appeared to be underpaid. The company also had. increased wages last year after a city investigation, according to the Purchasing ._ Department. For,2011;'the minimum was $11.82 for receiving health insurance, or $13:07 for workers without-health insurance. Twenty -eight of the underpaid employees — none of whom had requested or received 'a health benefit plan from Kern were getting $12.40 an hour, according to payroll recrards Kent provided to the Purchasing Department in November 2011. Another employee without health insurance received $12;65 an hour, also an apparent violation. But four employees who were getting health benefits received $12.40 an hour, which is above the minimum: One ermployee without health insurance was receiving $13.50, also above the minimum. The company said it offered free health insurance to all of these employees, but most declined, and the company thought it was complying with the lawn. "1t+Iie have always considered ourselves compliant and we have paid whatever the -city wanted us 10 pay. said a spokesman for the company Monday. "We have always paid the . living-wage rate and, when the city has recast the formula, we have met the.dity's requirements every time.° But a representative of a union trying to organize the guards said.the company should be punished. "Kent has ripped off'both their employees and us as taxpayers in the city by pocketing the money and ignoring the law:, "said Eric Brakken, director of the Florida chapter of the, =8, ,a branch of Service Employees International - Union,_which helped several guards file complaints with the city. Security t3I2£TBCfCsI days beck wag es to wc��kers - OY MiarniHeral�lxom P age 2 of 2 'So far tf e city'hasnI sanctioned Kent," said.Brakkeri_ "We are urging the city to do that. The city.should actually uvlthhold payment to Kent and -send .t tat rhoney back directly to the Workers have taken advantage of. The city reall ' set an example by demonstrating that this kind.of activity is not going to be tolerated." The'city had the option of imposing fines.- of.S500 per week per'underpaid employee, . terminating Kent's contract, suspending or terminating payment under the contract, ,or declaring Kent-"ineligible for city contracts .f6r three years or unfil Kent pays all penalties and -restitutions ., This city's I iv i ng wage is set each year in April to -equal to 110 percent of the U.S.. ` e artment of Health and - Human Services' Poverty Guidelines for persons in households of four: Between Oct, 1, 2010,:and March 19, 2 city has paid Kent $880,598.85 for ecurity services 0 2012:Miami Herald Media Company, All Rights Reserved. hitp:(fvvww, iariiiher�ald,corn AP.P.ENDIX:.D w.. �... w.+. w..-,:+.. e +.:. t+". -_.... s.. �.-r p..:.- ...,..,o...+. .�.....,.. ...».,;...- .�:...,.....+ -.».. _.s -.-.. .., - ,...::_...:.. ... ... ,..�..,... _.. �. .. ...... ... ...?..:... ..: �., �w..._ �.. a-.,....,:. W....., r «« w,-.. e«.. ..— ...- .,..:...:. -....- Delyat, Cristina From. Jerry Tollefsen Utollefsen @ken•tsecurity.corn) Seat: Friday, April 06, 2012 9:55 AM Delvat, Cristina Cc. Gil Neuman } Subject: Re Union Bargaining Agreement Hi Cristina; We do riot have a. union bargaining agreement From: Delva' , Cristiria Cc: Aguila, Raul , Damien, Elizabeth ; Wal ,:EcheM Gargle .Sent: Wed Apc 04 09:31 :54 2012 Subject; tlnion.Bargaining Agreement Good morning, The-Evaluation Committee menibe'rs of the RFP #23 - 11/12 for Security Guard Servrsces -would like to knave if. . company has a union bargaining a reem. nt. Piease provide your answer :fvrthe record by- Friday, April 5, 20112.. Thank.you, M A 'REACH - : Crifftina DeivatContracts C9mPila"Cp s0cm tst : PROCUREMENT DIV. Slohi . 1700 Convention Canter Drive, Miami Beach,. FL 33139 Tel: 305" - 67374961 s=ax; 786.3 8€ 001 cdetvaWZ�miamibeaahft,g We are Corr mekd to providirg excrsNant pablk- service and safety to aft who tjvira a < & and play in our vl ram rapicat, historic communify . Thin ere eri> Cheep it an the screen. • Deva Cristina From:` Mcdonald, Taylor [ Taylor .Mcdonald @aiiiedbartor€.eomJ Sera: Thursday, April 05, 2012 12:54 -PM To: 'Delvat, Cristipa Cc:. ' , Aguila,:Raul, Damien, Elizabeth, Walker, Patricia; EcheM Georgic Subject: RE: Urtion.Bargaining Agreement AlliedSarton is party.to a National Framework Agreement with the SElU that provides fora stable and c6nstr6ctive relationship on :a nationwide basis. Allied Barton is currently a signatory to twenty -one (2 1) collective bargaining agreements with several.different labor organizations, - The 'majority of AlliedBarton's collective bargaining agreements are ' with the SEIU: Best Regards; Taylor Taylrx rAnr)onald l Direrzor of Business Development AlliedBartran Security Services Mobile: 854.415:7479 i Fax: 954.425.8275 tavtar mcdonaid alile4barton com i AlliadBaiton.corr I��:!/ www. llnkedin :canifi~iltav€armcdenald Follow AtliedBatton'On: Q6uD Frorm :.delvat, Cristina [mallto:CDevatC&miamibeachfl.gov Sent: Wednesday, April 04, 2011 9:32 AM Cc: Agulla, Raul; [larnisn, Elizabeth; YValker, Patricia) Echert; C�orgie Subject Union Bargaining Agreelrent Good morning, The Evaluation Committee mernbers,of the RFP ##23 -11/12 for Security Guard Services mould like to know if yuui company has a union bargaining agreement. Please provide your answer for the record by Friday,•April 6, 2012. Thank you, Crstina Delvat Contracts Gorapharice Specialist PROCUREMENT DIVISION 170 Convention Center Drive. Miami Beach; FL 33139 T6:.305 -673- 74961 Fax 786-39"00W . rxfelveY mtam,beaciiit.gav We are committed to pmvdng excellent public service and safety to a'Tswbo live, toad, and Way in our vibrant tropical, histonc comMunitl �0ATbink Green. Keep it on tie screen. 77tm rail c'nt m €ssien astG any c siCUtr =.atsl &, ales of preAtius a -ina:€ nmssages aii mimaci is i4, may be pi Ait;pu and conrde"IWIi and is irder aeti ont yfine Vi& use of ft inY :ndwd recip;ent of this m sse". Y' yos; are not the Weno sedp €err:, as a Hereon rasporu ota ford v3 ^ng i ie tfae interned redpies :, you are hereby nr,Yit€ed Yhaf arty ravi;z. riisc =osure. ratr3€sY€na. Est y:t>^s, d ssemin lio1: d s?ribullon or use of any of the" ntonii0ton contained in, or attachsd to in% e -mail transmission is STRICTLY PPOH18i TED, It you have received thus in ermr, please €rntnediately nalify me by retum email ar by Wephdrre at the above number and delete the m- -ss, -Qe and its attachrssanis Delvat, Cristina From; Hill A. Murphy,f bil lm @securityalliancegroup. Sent; Wednesday, April 04, 2012 9`47 AfUI To: Delvat, Cristina . Cc. Aquila, Raul; Damien, Elizabeth; Walker, Patricia ;.Echert, Georgia Subject: RE: Union Bargaining Agreement ' Hello Ustina, Yes.... Security Alliance did reach an agreement acrid sign a Collective Bargaining Agreement with the S IU Lo cal 3213J. The agreement has been in place for about a year and a half. If you need specifics or further details, please let: me know. thanit you —'bill. William Murphy, Senior Vice, President. Sees' I ty Alliance, LLC (305) 67M54.4 Frc>m:.Delvat, Cristina [ mailto ;CDelvat@mfamtbeidbfi.gov :ant: VVed 4/4/2012 9:31 AM Cc: ,Aquila, Raul; Damien, Elizabeth; Walker, Patricia; Echert, Georgia Subject. Union Bargaining Agreement Good morning, The Eva Iuation Committee member, of the RFP #23-111.12 foe 5eeurity+ ward Services would like to know ityour- company has a union bargaining agreement. Please provide your answer for the record by, Friday, April 15,2012. Thank you,: 6,11AMIREACK Crist6na- O€eWat Con €rack Compliance Specialist PROCUREMENT DWISION 1700 Convention Center Drive, Miami Beach. FL 33t39 . Tel: 30,-673- 7496.E Fox.: 786- X4¢4000/ cdelvai miam heachfl.aov We are commie €od to providing excellen pubic sere= anct say to who Im, work and Play m our vibrant. tmapical, hletnric commungty. Think Gre0ln,'Ke4ep icon the screen. w Delvat, Criistina From; . Andres Correa [anores,correa @usa.94s.com] Sent: Wednesday, April 04,'20121:12 PM To: Delvat, Cristina ' Subject: RE: Union Bargaining Agreement Goad Afternoon Ms. Delvat, We currently have a union bargaining agreement;With the International Union, Security, Police, Fire Professional of Americas (SPFPA) at the South Florida Regional Transportation Authority (SFRTA).in Broward County. I hope this answers the question: Please do not - hesitate in calling me in the event that you need further clarification. Sincerely, _ Andres'CorreeM - Manager df 8usiiness'Development G4S Secure Solutio€is (USA) Inc. 5826 Blue Lagoon Drive, Suite 300 Miami, FL 33126 Office: 305 266 2004 Mobile. 305 763.11'701 Fax: 305 261 6511 Finall :. andres. correalausa. 4r�s.com . www. a4s. com /us . • From Delvat, Cristina [mail o CDelvat @miamibeachfii.gov] Sent. Wednesday, April 04,.2012 9432 AM - Cc: Aguila, Raul; Damien, Elizabeth; , aiker Patricia; Echert, Georgie Subject* Union Bargaining Agreement Good morning, The Evaluation Committee members of the RFP #2341/'12 for Security Guard Services would like to know if your company has a union bargaining agreement. Please provide y9uranswer for the record by Friday, April 6, 2012. Thank you, lKAlAMlRH Grisfina Delvat Contracts Compliance 5pecielisf