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HomeMy WebLinkAbout25-City Manager ORIGINAL CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Mark Weinberg Interim City Manager Subject: Discuss and take possible action concerning the provision of graffiti removal services by City crews, and revision of the Services Agreement with Los Padrinos for the provision of beautification services. Dept: City Manager's Office Date: October 29, 2008 Synopsis of Previous Council Action: 9/15/2008 ~ Mayor and Common Councils approved a resolution extending the Los Padrinos Agreement from September 30,2008 to December 31,2008. 9/2912008 ~ Police Ad Hoc Committee recommended approval. Recommended Motion: That the Mayor and Council authorize the City Manager to begin.~~on the transition to a City operated graffiti removal service, and a new agreement with Los . s for abatement and beautification services, as further outlined in the staff report. . Iii. ~ Signature Contact person: Tpri R<lkpr Phone: X'i1?? Supporting data attached: Ward: All FUNDING REQUIREMENTS: Amount: None by this action. Source: (Accl. No.) (A("'rt n~c::{"rirtinn) Finance: Council Notes: Agenda Item No. z.r::; 11-?r00 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report Subject: Discuss and take possible action concerning the provision of graffiti removal services by City crews, and revision of the Services Agreement with Los Padrinos for the provision of beautification services Background: Graffiti removal services have been provided to the City by Los Padrinos for many years. In addition to graffiti abatement, Los Padrinos also provides abatement/beautification services. The total amount paid to Los Padrinos to provide both services is $588,000 annually. The current agreement with Los Padrinos was set to expire on September 30th of this year. On September 15th, the Mayor and Council approved a 90 day extension of the agreement to allow sufficient time to evaluate the contract and consider other options. Since April of this year, the Police Ad Hoc Committee has been discussing various options to improve graffiti removal in the city. There is concern regarding the quality of work that is being provided, and staff was asked to conduct research and present some options to the Committee for graffiti removal. While staff was in the process of reviewing options, another issue with the agreement surfaced that prompted the need to resolve this matter as soon as possible. The issue is with the scope of work related to abatementlbeautification services. Current Abatement/Beautification Services Section 2B of the current agreement (Attachment A) states that Los Padrinos will provide abatement services, which includes boarding unsecured buildings and other abatement activities on private property. The contract specifies that one-full time crew of three (3) employees will be devoted to abatement work, which is to be completed at the direction of the Director of Code Enforcement. This work also includes activities in support of neighborhood clean-up and beautification, including the work of various neighborhood associations. Some board-ups are done under warrant and others are done for safety reasons. Warrant board-ups differ from regular board-ups in that they must be done to meet FHA standards, which are more costly. In September, Los Padrinos questioned some unpaid invoices related to warrant board-ups. Staff explained to Los Padrinos that the scope of work for which they were invoicing for is included in the agreement, and is not to be paid separately. Los Padrinos disagreed and stated that they cannot afford to do the warrant board-ups within the scope of the existing contract. Staff and Los Padrinos agreed to disagree until resolution was brought to the graffiti matter. Code Enforcement currently has 15-20 warrant board-ups per month at an estimated cost of $1 ,000 per board-up. The department is currently using an outside contractor to perform warrant board-up work, and expects that the annual cost could increase to $240,000 or more by the end of the fiscal year. Current Graffiti Removal Services The agreement with Los Padrinos provides that two crews, each consisting of one supervisor and two other employees, be assigned to graffiti removal services. The agreement specifically states that the 2 crews are to be exclusively assigned to graffiti and may not be assigned to other work without written consent of the Director of Code Enforcement. The crews work from a list generated by the Graffiti Hotline. Each crew works with paint rollers and some standard colors, but one of the crews is primarily responsible for graffiti removal using water blasting. When the crews are in the field removing graffiti and another graffiti tag is spotted, the crew records the location. When all the graffiti that was reported from the graffiti hot line is completed, Los Padrinos works on the list they generated while the graffiti crew was responding to calls. The self-generated list is not regularly completed due to additional hot line calls. It has been difficult to determine whether or not Los Padrinos is spending the amount of time specified in the agreement because their reporting is unclear. Staff has been working with Los Padrinos to help them properly record information so their reports would allow us to better analyze the work they are doing. However, in a recent follow-up letter to the Code Enforcement Interim Director, Max Alonso, Executive Director of Los Padrinos, stated that his office does not have the capacity to provide this reporting. Because of concern regarding the graffiti removal services currently being provided by Los Padrinos, and the issue with warrant board-up work as it relates to the agreement with Los Padrinos, it is apparent that there is a need to consider other alternatives for both graffiti and abatement services. Comparisons to Other Cities The City Manager's Office contacted local cities for information on their graffiti removal programs (Riverside, Fontana, Rancho Cucamonga and Pomona). Each of the four cities surveyed use employee crews for the majority of their graffiti removal. Three of the cities contract out specialized graffiti removal jobs. The most common trend among the four cities is the use of one person units that are assigned a geographic area of the city. Each unit is assigned a truck that is equipped with a paint sprayer, power washer and sand blaster. Paint matching methods, the number of crews, and management oversight varies among the four cities. The cities surveyed, all use a graffiti hotline and Internet notifications to create work orders assigned to each crew. The cities contacted all commented that having employee staffed graffiti crews allowed them to be proactive instead of reactive when addressing graffiti. For a detailed outline of each city surveyed, see Attachement B. Ootions for Graffiti Removal and Abatement/Beautification Staffs approach to developing options was to look at ways to fund successful graffiti, beautification/abatement, and warrant board-up programs without adding costs to the General Fund. In order to free up existing General Fund resources to be used for graffiti and warrant board-ups, it is recommended that a portion of the Public Services Department's right-of-way crew be funded in the Integrated Waste Management (IWM) Fund. This is an allowable charge to that fund because the right-of-way crew is responsible for trash and debris removal. The savings to the General Fund will be ") used to offset the increased costs of warrant work and help fund beautification services throughout the city. With the Police Ad Hoc Committee, various options were considered which included Los Padrinos continuing with graffiti abatement, but the City taking over abatementlbeautification; splitting the City between Los Padrinos and City crews and having City crews conduct abatementlbeautification; City crews taking over the entire operation of graffiti and abatement beautification; and the City assuming responsibility for graffiti removal with Los Padrinos continuing abatementlbeautification services only. All of the options assumed a savings to the General Fund as a result of transferring a portion of the right-of-way crew to the IWM Fund as explained above. In the end, staffrecommended to the Police Ad Hoc Committee that a City Graffiti crew be established in the Public Services Department, and that the agreement with Los Padrinos be re-negotiated so that Los Padrinos continues to provide abatementlbeautification services. This option would allow Los Padrinos to continue playing a role in our community, while allowing graffiti removal services to be improved. On October 27, staff met with Max Alonso, Director of Los Padrinos, to discuss this new contract and evaluate that option. Mr. Alonso stated that he believes the issues related to the graffiti portion of the contract are due to the fact that he had to reduce his crews several years ago from five to three crews because of increased operational costs. During that meeting, Mr. Alonso offered a counter proposal, in which Los Padrinos would continue to provide graffiti and abatementlbeautification services at an increased contract amount of $755,000 annually. According to Mr. Alonso, this increase would allow Los Padrinos to increase their staffing levels and provide a more effective level of service for graffiti removal. On October 29, the Police Ad Hoc Committee agreed with staffs recommendation to establish a City Graffiti removal program, and to enter into a new agreement with Los Padrinos for abatementlbeautification services only. The new Public Services Department operation will be staffed with five (5) one-person units, providing graffiti abatement services seven (7) days per week. The City's work order system will be used to track productivity, and provide cost accounting for restitution purposes. Both Director Ken Fischer and Deputy Director Randy Kuettle have experience in running effective graffiti removal services in other cities in the past, and are confident that the Department will be able to provide a high-quality, responsive service to our community. FINANCIAL IMPACT: The City graffiti program could be implemented as soon as January 2009. The cost of a new City Graffiti Program, a new contract with Los Padrinos for abatement and beautification services, and warrant board-up work this fiscal year is estimated to be $679,000. The cost for the City graffiti program includes five Maintenance Workers, equipment, vehicles, materials, fuel, and cameras. In years two and three, the program costs are reduced because the equipment will have been purchased in the first year. As stated earlier in the staffreport, additional funding for this program is available if the Right-of-Way crew is transferred to the Integrated Waste Management Fund (IWM). The savings to the General Fund will be used to offset the increased costs of warrant work and help fund beautification services ":\ throughout the city. Below is an outline of available funding and the costs for the first three years of the program: FY 08/09 (Jan 09 - FUNDING SOURCES June 09 FY 09/10 FY 10/11 Current funding for the Los Padrinos Agreement 294,000 588,000 588,000 General Fund Savings from a portion of the right-of-way crew moving to IWM Fund 385,000 407,000 431,000 Warrant Work (Board- Ups) (180,000) (250,000) (250,000) Los Padrinos - Abatement (125,000) (250,000) (250,000) City Graffiti Crew (and start -up costs in Year I) (374,000) (495,000) (519,000) Total Net Savings / (Costs) to General Fund RECOMMENDATION: The current agreement with Los Padrinos will expire on December 30, 2008. If the Mayor and Common Council agree with staff's recommendation, work will need to begin immediately to obtain equipment and supplies, and hire the appropriate personnel for the new graffiti crews. Staff will also begin work with Los Padrinos on the new contract for abatementlbeautification services. It is recommended that the Mayor and Council authorize the City Manager to begin work on this transition. The appropriate budget amendment, personnel authorization, service agreement with Los Padrinos, and vehicle/equipment purchases will be brought forward to the Mayor and Council at an upcoming meeting. 4 ., 2007-398 .. /1 PrI-bcAmm + It SERVICES AGREEMENT NOW, THEREFORE, in consideration of the terms and conditions set forth herein, the parties hereto agree as follows: SECTION 1: GRAFFITI REMOVAL SERVICES. CONTRACTOR shall furnish A. CONTRACTOR shall provide and equip two (2) crews, each consisting of one (1) supervisor and two (2) other employees, who shall provide graffiti removal services to the CITY. One (1) of such crews shall primarily be responsible for graffiti removal using water blasting B. CONTRACTOR shall schedule the work of said crews so that they shall be exclusively dedicated to graffiti removal activities between the hours of 7:30 a.m. and 4:30 p.m., exclusive of meal breaks, Monday through Friday of each week, for a total of 80 crew hours of graffiti removal services each week (40 hours per crew), excluding major holidays. C. Twice per day, CONTRACTOR shall retrieve all voice mail messages left on the 1 1'1 2007-398 retrieval from the voice mail system. For purposes of this Agreement, 24 hours is defined in 1 tenns of consecutive hours. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2! 25 26 27 28 D. When all graffiti reported to the hotline in a given day has been removed, CONTRACTOR shall direct crews to proactively remove graffiti on a systematic basis throughout the ClTY. In no case will graffiti removal crews be assigned to other work other than graffiti removal without the express written consent of the Director of Code Enforcement or hislher designee. E. In all instances, paint will be matched on all surfaces to be abated. When paints cannot be matched, surfaces to be abated will be completely repainted in a color which is aesthetically consistent with that of surrounding structures. Natural unpainted surfaces (i.e., brick walls, concrete curbs, sidewalks, signs, and metal poles) will be water blasted and not painted. Over time, all structures which have been previously spot painted will be recovered to confonn to the primary color of the structure, or completely repainted. SECTION 2: BEAUTIFICATION AND ABATEMENT SERVICES. CONTRACTOR shall furnish debris, trash, weed removal, abatement, special project services ("beautification and abatement services") to CITY as follows: A. CONTRACTOR shall provide and equip one (I) crew, consisting of one (I) supervisor and two (2) other employees, who shall provide debris, trash, weed removal, abatement, and special project services in CITY. CONTRACTOR shall schedule the work of said crew so that they shall be exclusively dedicated to beautification and abatement services, five (5) days per week, for a total offorty (40) crew hours per week, excluding major holidays. I. CONTRACTOR shall assign said crew to do the following: a. Remove weeds and pick up trash and debris that is illegally dumped in alleys and other public rights-of-way as may be directed by the Director of Code Enforcement or hislher designee. 2 2007-398 3 2007-398 4 2007-398 services. SECTION 7: INDEMNITY. 5 I 'I 2007-398 SECTION 9: NON-DISCRIMINATION. In the performance of this Agreement and in the hiring and recruitment of employees, CONTRACTOR shall not discriminate on the basis of race, creed, color, religion, sex, physical handicap, ethnic background or country of origin. SECTION 10: INDEPENDENT CONTRACTOR. CONTRACTOR shall perform work tasks provided by this Agreement but for all intents 6 I 'j 2007-398 and purposes CONTRACTOR shall be an independent contractor and not an agent or employee 1 2 of the CITY. SECTION 11: NOTICES. 3 4 5 Postal Service, postage prepaid and addressed as follows: 6 Any notice to be given pursuant to this Agreement shall be deposited with the United TO THE CITY: Director of Code Enforcement 300 North "0" Street San Bernardino, CA 92418 7 8 9 10 11 12 TO THE CONTRACTOR: Los Padrinos Youth Services P.O. Box 479 San Bernardino, CA 92402 SECTION 12: A TIORNEYS' FEES In the event that litigation is brought by any party in connection with this agreement, the 13 prevailing party shall be entitled to recover from the opposing party all costs and expenses, 14 including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of its 15 16 hereof. The costs, salary and expenses of the City Attorney and members of his office in 17 18 rights or remedies hereunder or the enforcement of any of the terms, conditions or provisions enforcing this Agreement on behalf of the City shall be considered as "attorneys' fees" for the 19 purposes of this paragraph. 20 21 22 23 24 25 26 SECTION 13: ASSIGNMENT CONTRACTOR shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of the CONTRACTOR's interest in this Agreement without CITY's prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for the termination of this Agreement. Regardless of CITY's consent, no subletting or assignment shall release 27 CONTRACTOR of CONTRACTOR's obligation to perform all other obligations to be 28 performed by CONTRACTOR hereunder for the term of this agreement. 7 , i 2007-398 1 2 SECTION 14: GOVERNING LAW This contract shall be governed by and construed and interpreted in accordance with the 3 laws of the State of California without regard to principles of conflicts ofIaw. 4 SECTION 15: VENUE 5 The parties hereto agree that all actions or proceedings arising in connection with this 6 Agreement shall be tried and litigated either in the State courts located in the County of San 7 8 9 Bernardino, State of California or the U.S. District Court for the Central District of California. The aforementioned choice of venue is intended by the parties to be the mandatory and not 10 permissive in nature. 11 12 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date first written above. CITY OF SAN BERNARDINO By: Fred Wil LOS PADRINOS YOUTH SERVICES By, M~?iI; Max Alonzo, Director Attest: RACHEL CLARK, City Clerk By: ,Gt ~ l..J_ f.1, (' 1.. # J.-'e.. 8 ~ E m C, o a: (Q~ _0 c: E w&! Ejg .J:::m 0" ro~ :j:j~ <(~ l!ll" Ii - W' e %!.. .... 010_ bOlE 0 l! E:Ci g "lOOal c ~,O.o:I 8 e:~ ~ 0..10,- , 0 "'[;:I2w .O~ Q5 Ql.!R'::: ~ .c:i=l?:o-c :O.c- ~g g IN ~.~ E:!: -g......, Q) ~-"- Ill. 1lI <Il 0.._ Q) ~I ~ ~ ~ ~ g ~~~~ .0 "'~ U 111 .~ ~ 0 _0 5 -" c . E . ~ ~ <( --LE -g : ~.2! ~ ~~ .cO ij; III (\J ;~-ci a. ;-g .~ W~~ ~i':i: III ~.~ ~ :;; 1::!~~ Q).... 0 01.. (,) ~ -g a:!E ~i~'~ ~:-8 8. 0:::'[3: .ciij_!!l <11 ~g l;lO]o~ _~~.- lU w: > cd:! . 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B o . . . o~ ~ 0 . .~ ~ . -. .= ~ 0) - . . ~ -E u.. oo~ Eo:E #~~"E .- :l 0 ~~,g~ t) ~ t.!. ~ a..<9l1liL (!)D~D ~ IE o w " . ~., roo ~o roo< ::;::0 >-~ fj~ , CITY OF SAN BERNARDINO CITY i\L~"'AGER'S OFFICE INTEROFFICE MEMORANDUM COMMDS COUNCIL OFFiCE elTT nF S~.:l 3ER~; 1KO:rlG 08 OCT 20 PM 3: 59 From: Police Ad Hoc Committee Teri Baker, Assistant to the City Manager:} Graffiti Removal Options ~ To: Subject: Date: October 20, 2008 BACKGROUND: At the July 29, 2008 meeting of the Police Ad Hoc Committee there was discussion regarding the agreement wi~ Los Padrinos to provide graffiti abatement services. There is concern regarding the quality of work that is being provided, and staff was asked to come back with other options for graffiti removal. On September 15th, the agreement with Los Padrinos was extended for 90 days to allow sufficient time to evaluate the contract and consider other options. While staff was in the process of reviewing options, another issue with the agreement surfaced that needs to be part of this discussion. The issue is with the scope of work related to abatement/beautification services. I. Graffiti: The agreement with Los Padrinos provides that two crews, each consisting of one supervisor and two other employees, be assigned to graffiti removal services (40 hrs per crew, per week). The agreement specifically states that the 2 crews are to be exclusively assigned to graffiti and may not be assigned to other work without written consent of the Director of Code Enforcement. The crews work from a list generated from the Graffiti Hotline. Each crew works with paint rollers and some standard colors, but one of the crews is primarily responsible for graffiti removal using water blasting. When the crews are in the field removing graffiti and another graffiti tag is spotted, the crew records the location. When all the graffiti that was reported from the graffiti hot line is completed, Los Padrinos works on the list they generated while the graffiti crew was responding to calls. The self- generated list is not regnlarly completed due to additional hot line calls. It has been difficult to determine whether or not Los Padrinos is spending the amount of time specified in the agreement because their reporting in unclear. Staff has been working with Los Padrinos to help them properly record information so their reports would allow us to better analyze the work they are doing. However, in a recent follow-up letter to the Code Enforcement Interim Director, Max Alonso, Executive Director of Los Padrinos stated that his office does not have the capacity to provide this reporting (see Exhibit A). In addition to providing graffiti removal, the agreement with Los Padrinos also provides for one crew (one supervisor and two other employees) to conduct beautification and abatement services, including board-ups. The total amount paid to Los Padrinos to provide both services is $588,000 annually. In essence, two thirds of the agreement ($392,000) is to provide graffiti removal services and one third of the agreement ($196,000) is to provide abatement/beautification services. 2, Abatement/Beautification: Section 2B of the current agreement states that Los Padrinos will provide abatement services, which includes boarding unsecured buildings and other abatement activities on private property. Some board-ups are done under warrant and others are done for safety reasons. Warrant board-ups differ from regular board-ups in that they must be done to meet FHA standards, which are more costly. Last month Los Padrinos questioned some unpaid invoices related to warrant board-ups. Staff explained to Los Padrinos that the scope of work they were invoicing for is included in the agreement and is not to be paid separately. Los Padrinos disagreed and stated that they cannot afford to do the warrant board-ups within the scope of the existing contract. Staff and Los Padrinos agreed to disagree until resolution was brought to the graffiti matter. Since this issue with Los Padrinos with regard to warrant board-ups surfaced, it has become apparent that warrant board-ups have increased dramatically because of the current housing crisis and subsequent ban!<: repossessions. Code Enforcement is averaging 20 warrant board-ups per month at an estimated cost '01' $1000 per board-up. Code Enforcement is currently using an outside contractor to perform warrant board-up work and expects that the annual cost of warrant work could increase to $240,000 or more by the end of the fiscal year. Because of concern regarding the graffiti removal services currently being provided by Los Padrinos, the issue with warrant board-up work as it relates to the agreement with Los Padrinos, and because of the increase in bank repossessions in the City, it is apparent that there is a need to consider other alternatives for both graffiti and abatement services. RESEARCH: The City Manager's Office contacted local cities for information on their graffiti removal programs (Riverside, Fontana, Rancho Cucamonga and Pomona). Each of the four cities surveyed use employee crews for the majority of their graffiti removal, Three of the cities contract out specialized graffiti removal jobs. The most common trend among the four cities is the use of one person units that are assigned a geographic area of the City, Each unit is assigned a truck that is equipped with a paint sprayer, power washer and sand blaster. Paint matching methods, the number of crews, and management oversight varies between the four cities. The cities surveyed all use a graffiti hotline and Internet notifications to create work orders assigned to each crew. The cities contacted all commented that having employee staffed graffiti crews allowed them to be proactive instead ofreactionary when addressing graffiti. For a detailed outline of each city surveyed, see Exhibit B. , OPTIONS: Staffs approach to developing the following options was to look at ways to fund successful graffiti, beautification/abatement, and warrant board-up program without adding costs to the General Fund, In order to free up existing General Fund resources to be used for graffiti and warrant board-ups, a portion of the Public Service's right-of-way crew could be funded in the Integrated Waste Management (IWM) Fund. This is an allowable charge to that fund because the right-of-way crew is responsible for trash and debris removal. The savings to the General Fund could be used to offset the increased costs of warrant work and help fund beautification services throughout the City. All of the following options assume a savings to the General Fund as a result of transferring a portion of the right-of-way crew to the IWM Fund. This would require Mayor and Common Council to approve a budget amendment. Please note that options 1, 3, and 4 include augmentation of the existing right-of-way crew. Currently, the right-of-crew only abates public property. Under this new program, the crew would provide the services that Los Padrinos currently provides on private property under the beautification and abatement section of the agreement. " Omio" I: Los Pudrillos Graffiti _~butem~llt PI"Of!ram - Citv AblllemenlBeulltlficlltion Pro,<!rum Under this option, the City would re-negotiate the Los Padrinos agreement for an amount not to exceed $392,000 for graffiti abatement services only, which is the estimated amount they currently receive for this portion of their contract services. Public Services would augment their current right-of:way crew to take over the abatement services currently being provided by Los Padrinos. Code Enforcement would generate a rotation for warrant abatement work and enter into agreements with several agencies that perform that work. FY 08/09 (Jan 09 - June 09) FY 09/10 FY 1O1ll Current funding for the Los Padrinos Agreement GF Savings from a portion of the right-of-wiy crew moving to IWM Fund 294,000 588,000 588,000 Warrant Work (Board-Ups) Los Padrinos - Graffiti City Abatement Crew Total Costs 180,000) (196,000) (102,000) (478,000) (240,000) (392,000) (142,000) (774,000) (240,000) (392,000) (149,000) (781,000) Total Net Savings f (Costs) to General Fund 1,000 14,000 7,000 Pros: This option would keep Los Padrinos and the at-risk youth they work with employed and part the community. Cons: Concerns regarding the quality of work Los Padrinos is currently providing related to graffiti removal. Graffiti removal is limited to Monday through Friday 7:30 a.m. through 4:30 p.m. There would still be concerns over the quality of reporting from Los Padrinos on what they have or have not accomplished on a daily basis. O/Jlion 2: Los Padrinos Ahatement Prorzmm - Citv Graffiti Prorzram Under this option, the City would re-negotiate the Los Padrinos agreement for an amount not to exceed $196,000 for abatement services only, which is the estimated amount they receive for this portion of the work under the current agreement. Code Enforcement would generate a rotation for warrant abatement work, and enter into agreements with several agencies that perform that work. Under this option, the City would create a graffiti removal program staffed by five maintenance workers who would provide graffiti removal 7 days per week. FY 08/09 (Jan 09 - June 09) FY 09/10 FY 10/11 Current funding for the Los Padrinos Agreement GF Savings from a portion of the right-of-way c'rew moving to IWM Fund 294,000 588,000 588,000 Total Costs (180,000) (98,000) (354,000) (632,000) (240,000) (196,000) (495,000) (931,000) (240,000) (196,000) (519,000) (955,000) Warrant Work (Board-Ups) Los Padrinos - Abatement City Graffiti Crew Total Net Savings / (Costs) to General Fund 2,000 7,000 3,000 Pros: This option would keep Los Padrinos and the at-risk youth they work with employed and part the community. The City would be able to take a comprehensive approach to cleaning graffiti. Cons: There would still be concerns over the quality of reporting from Los Padrinos on what they have or have not accomplished on a daily basis. , OOliOI1 3: Los Padrinos and Citl' solit Graffiti Prol!ram and Cirv orovides abateme11l Under this option, the City and Los Padrinos would both pertorm graffiti abatement services. The City would be split up into two geographical regions, with Los Padrinos and City crews assigned to a different region. The dual system of graffiti removal services would allow the Mayor and Council to evaluate the most efficient and cost effective way to remove graffiti over time. The contract with Los Padrinos would be re-negotiated for an amount not to exceed $196,000, which is half of the current amount provided for graffiti services and would be for graffiti abatement services only. The City's graffiti crew would begin with three employees. Public Services would also augment their current right-of-way crew to do abatement'beautification as described previously. Code Enforcement would generate a rotation for warrant work and enter into agreements. FY 08/09 (Jan 09 - June 09 FY 10/11 Current fundirtg for the Los Padrinos Agreement GF Savings from a portion of the right-of-way crew moving to IWM Fund 294,000 588,000 588,000 Warrant Work (Board-Ups) (180,000) (240,000) (240,000) Los Padrinos - Graffiti (98,000) (196,000) (196,000) City Graffiti Crew 212,000) (297,000) (312,000) City Abatement Crew (102,000) (142,000) 149,000) (592,000) 875,000) 897,000) Total Net Savings / (Costs) to General Fund 2,000 13,000 1,000 Pros: This option would keep Los Padrinos and the at-risk youth they work with employed and part the community. The City would be have the opportunity take a comprehensive approach to cleaning graffiti through the creation of a Beautification Division within Public Services (abatement and graffiti). Employees would be cross-trained between graffiti removal and abatement services, allowing for seven day a week graffiti coverage, with less cost because the crews could be cross-trained and their workweeks staggered. Cons: There would still be concerns over the quality of reporting from Los Padrinos on what they have or have not accomplished on a daily basis. Omion ./: Or)' Funded Beaurification Proe:ram (Graffiti and Abarement) Under this option, the City would provide notice to Los Padrinos to terminate the existing agreement A City Beautification Program for graffiti and abatement would be created, In addition to creating a graffiti abatement crew, Public Services would also augment their current Right of Way crew as described in Option 1, Code Enforcement would generate a rotation for warrant work and enter into agreements, FY 08/09 FY 09/10 FY 10/11 (Jan 09 - June 09) Current funding for the Los 294,000 588,000 588,000 Padrinos Agreement GF Savings from a portion of the 200,000 215,000 220,000 right-of-way crew moving to IWM Fund " Total Savings 494,000 803,000 808,000 1l?ii'~~~~'~~~C~!4'~~='-~-~~=r!1ii!-~--~~-~=-~~=~~~'-~ -...., ~ r' ,~'f~"':,{,.710~~,~'~;; ,<~ >;X;;'t~~\! "'-c. .~\it' 'i/ft~l ~;t,~ ~~'I:\',:~: .....:1:;" '. J:f.!'jI:"''':'~;d '0..1;,' X"" c,;"< ~ !',.. ," 't'~\c, ~:':~.~~~~' U~J.::":~~::'~~",,~::'~\:ri..2..:~~.:-.,:;, '?i;:,<; ':2.,;'.;1' L!: .~,;;~'c_ ~ __-' :t:::~':::\ '~.:':~""":_~_'='_''''';''~-~_t~_:j.k~~~}~;~:::l.;,;"f5.'':S~ Warrant Work (Board-Ups) City Graffiti Crew City Abatement Crew Total Costs (180,000) (212,000) (102,000) (494,000) (240,000) (420,000) (142,000) (802,000) 240,000) (416,000) (149,000) (805,000) Total Net Savings / (Costs) to General Fund 1,000 3,000 Pros: The City would be able to take a comprehensive approach to cleaning graffiti through the creation of a Beautification Division within Public Services (abatement and graffiti), Employees would be cross-trained between graffiti removal and abatement services, thus allowing for seven day per week graffiti coverage, The program structure has a positive impact on the General Fund after year 1, Cons: The services of Los Padrinos would no longer be required. , Please note that all of the options for City graffiti and beautification would require additional staff. The City graffiti removal program could potentially be offset through efforts to actively pursue grants that are available for graffiti removal and education. Grants are available trom organizations such as Graffiti Hurts@. Additional funding opportunities may be available through partnerships in which the City would provide graffiti removal services to agencies such as: San Bernardino Unified School District, Cal Trans, Burlington Northern/Santa Fe Railroad, the County of San Bernardino, and neighboring cities. These agreements would remove any barriers such as right-of-way conflicts that would prevent access to remove graffiti and to provide program support. The City would pursue agreements that provide a reimbursement clause for services performed modeled after the MOU between the City of Santa Barbara and Union Pacific Railroad. The City graffiti program would provide graffiti removal services to business owners. Local business owners would be encouraged to supply matching paint to remove graffiti trom their buildings. Local stores, developers and painters would be contacted for donations of "wrong color" and left. over paint. The donated paint would be mixed, tinted and used for graffiti removal throughout the City. , It should be noted that the City Manager's Office has received a great deal of public support for the work provided by Los Padrinos, not only for the City, but for the youth in the local area. Staff acknowledges the role Los Padrinos has played and would like to include Los Padrinos in graffiti abatement where possible. RECOMMENDATION: Staffs recommendation is Option 2. This option would allow Los Padrinos to continue playing a role in our community by providing abatement/beautification services only. The quality of graffiti removal would be improved because City crews will be better equipped and trained. c: /.,..., - ,~,"""/' I;{ w~ P1DIUN~~ ~ SERVICES of SouIMm Califomi.J. October 9, 2008 To: Wayne Harp Interim Director of Code Enforcement From: Max Alonso Executive Director of Los Padrinos ~( Subject: Operations and Contract Review After our meeting discussing our contract for continuation or adj ustment, I have prepared the following. , ]. Los Padrinos monthly operating cost A) Monthly payroll taxes - workers compensation $34,520.00 B) Vehicle and equipment repairs 967.00 C) Graffiti removal supplies Paint - sand - equipment 4,414.00 D) Office - supplies - rent - uti-lities - security 4,200.00 E) Fuel 2, I 00.00 F) C.P.A. Firm Payroll - accounting - tax reports 1,050.00 Total $ 47,251.00 Current monthly city contract payment $49,000.00 Balance $] ,749.00 Summary: Any financial reduction to our current contract amount would severely reduce our provided services to our city, or make it impossible for Los Padrinos to continue operations. 445 S. Arrowhead Ave.. Suite C' Mailing Address; P.O. Box 479, San Bernardino, CA 92402' (909) 885-7066 Fax (909) 885-7435 Page 2 ADDITIONAL ITEMS ADDRESSED I) tvlonthly and annual production reports. These spread sheets are attached showing fY 2007/2008 and fY 2008/2009, July thru September. These are the reports that are sent to code enforcement at the close of each business month. .' At our last meeting, on 10/8/08 you showed me monthly reports that are not being done. Very bluntly, we do not have the office staff and time to do all these reports. What has been done since we started our contract with the city is that we furnish at month end the spread sheets attached, we keep all the daily crew time and production sheets that make up the spread sheet information. In the past these sheets were sent along with the weekly production sheet. Now along with the spread sheet we are doing some kind of percentage sheet on the computer which makes no sense. We have all the time and production sheets at the office and if needed can be provided at any time. 2) Code warrant board ups. Since we started providing this service 2 to 2 1/2 years ago, we were paid for the service outside our city contract. At the completion of each job a detailed invoice was sent to code for payment and payment was made to us out side of our city contract. Employees used for this service were not city contract employees, they were outside employees, that were hired when the work was assigned to us. Then this year, we did a review of unpaid invoices for warrant board-ups from 12/07 thru 9/08. 445 S. Arrowhead Ave., Suite C . Mailing Address: P.O. Box 479, San Bernardino, CA 92402 . (909) 885-7066 Fax (909) 885-7435 Page 3 We sent follow up copies of all invoices to code for their review and were advised that payment would not be made. We were told that in October, 2007, city staff decided that we would not be paid for this service outside of our city contract. This change was never given to us and we continued to provide the service thru September, 2008. During of our meetings in September, 2008, we advised code that we could not continue providing the service and agreed to take a $232,162.56 loss in revenue for the jobs we did and would not be paid for them. , Final Summary: If it is the decision of the city to reduce or cancel our contract, change the notification of cancellation from 30 to 60 days, and keep our contract payment amount at the current level for the 60 day notice period. This will allow us to cover all payments to suppliers, etc. prior to going out of business 445 S. Arrowhead Ave., Suite C . Mailing Address: P.O. Box 479, San Bernardino, CA 92402 . (909) 885-7066 Fax (909) 885-7435 1Il..c:(S ;;g-g~ 13u Eo ~Eog .....1';0.0 c...o"" o DI O>U1 uo,,!"b'? ~""'6 " 0 _ . c Xlc:.g~ ill iU 0.;;: ~J~~ . 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"@2! a. . ~~E 4'~ ''1 , .~ " _/1 ,., '~'i ;Z '!~ ~ >Ii :!~ , ~:~ ~ ~~ ,f:~ 1J:. -f' ., ifii' J 1 ,t .~ 5i .'11: ~ i f} , >:1 Wi ~' ~~ &t: ,),;. if! ;~ ;& ~{ " :j, ~ 1- )!i ~ I,., ~) , '. . l~~ p,~Rmij~ ~-J,:i..::::------ -~,~./- ~ SERVICES of Southern California y Oclober 2-1. 2llllX To: \Vayn~ 11:11-1' Dir~ctor of Code Fnllll-celllent Frolll: \Ia.' Ahll1so F,~cuti\'C Dir~~tor R~: R~comm~ndations I. GraCliti R~moval S~rvic~: :' At th~ pr~s~nt tim~, w~ hav~ only two paint-out cr~ws :Ind on~ watcr/s:lIld . blasting er~w. TIlCS~ cr~ws run citywid~ and because of this our timely rcmoval and quality o I' work is c1Tccted. Because of' increased cost of operations, we were I(,rced to reduce our crew numbers from live down to three. The following recommendation will bring us back to our prcvious level of crews and a more effective level of service delivery. Increase our current contract level from $5XX,OOO annually to $755,OOIl. This will provide f'llll' grarliti paint-out crews -- assigned and limiled to f"ur designated areas of the city Monday thru Friday. One water/sand blasting crew Monday thru Friday and one additional crew I'm Saturdays. 2. One weed abat~ment crew will remain Monday thru Friday. In addition, we will continue to provide Saturdays crews made up of community service workers and supervised by our regular crew leaders. The l'ocus 1'01' these Saturday crews will be trash pickup, weed abatement and large graCliti removal projects. ~~5 S. Arrowhead Ave.. Suile C' Mailillg Address: I' .0. Ilox ~70. Sail [Jelllardillo, CA 02~02' (00')) SS5-70(i(i Fax (')0')) SS5-N.15 \\.;lIT~llll\ \\(\rk: (n\)~II\lllp:";. I..'k',) I \\\1uld :";lrIHlgl~ rccnlllllll..'l1d lh~ll thi:..; as~iSllllll..'\lt hL' Il~llldk h\ Lit\ CJ\'::\\~ Ill' uutside Clll1tractllrs, . Slli\li\IAR Y: The increase in our eontraetlcvcl still keeps I.os Padrinos I'Hler in cosl tlwn those shown in the reporllllade to the Police Ad Iloc COllllllillcc. .. " 445.~ Arrmvhe,,,\ Av.,.. Suite C' Mai\ino Address: P.O. Box 479. Sail Bernardino, CA 92402' (909) R85-7066 fax (909) XX5-7435 CREW#! CREWII2 CREW 113 " CREW #4 "'MAfN CORRIDOR"' MrLL STREET NORTI r 30111 - WATERMAN WEST TO 215 [,REEIN;\ Y INCLUDES MEADOWBROOK AREA "'WEST SrDE"' .J STREET WEST TO PEPPER. MILL NORTH TO 30111 THIS INeLl IDES DELMAN HEIGHTS - CAI.lf-'ORNIA GARDENS- MT VERNON AREA AND POCKETS ARO(IND RIALTO IIlGH SCIIOOL ALSO TERRANCE ASSOCIATION AREA- LYTLE CREEK AREA .. NORTH END 30'1'11 NORTH TO 59111 WATERMAN TO LITTLE LEAGUE DRIVE. nIlS INCLUDES CINNAMON RANCH AREA - BLAIR PARK ;\[~EA & WILDWOOD AREA. CAL STATE COLLEGE AREA DEL ROSA AREA WATERMAN EAST TO BOULDER 9TH TO FOOTHILLS. THIS INCLUDES ARDEN GUTHRIE AREA #5 AREA - EAST VALLEY ( ALL CREWS WILL SHARE THIS AREA) 5nI STREET TO BARTON ROAD WATERMAN TO TIPPECANOE October 29, 2008 w~ PADlINt~ s- ~ SElMCES of Southern Gr.lifomia Entered Jnto Rae. at MCCICDC Mtg:/ /3/6i by' ~ 10 . 'JU <-~</"'-<''''''V\.--t,--,(J Agen~em No: :{ S by; ,~u..L u--<.~ City Clerli/CDC Secretary '-- City of San Bernardino To: Mayor - Council Members - Code Enforcement From: Max Alonso Executive Director Re: City Contract I want you to review several issues which have led to our final decision. 1. Revised City Contract An option was presented that reduced our contract value by $249,000- (see attached A). The reason given was that graffiti would be handled by city crews and not Los Padrinos. I presented a request on 10/24/08 (see attachment B) that would enable us to bring our crew levels back up to what they were before we were forced to reduce them, due to the tremendous increase in our cost of operations. This was denied. 2. Re-Issue of City Contract (value $250,000) - (Attachment A - Option 2) After a review of the cost of operations described in option 2, it is determined that we would operate at a monthly loss of$11,833.00. This option would require a 12 month contract amount of $396,000. 3. Conclusion Based on items shown in this city contract review, and after 16 years of dedicated service to the citizens in our city and the employment opportunities that we have provided to over 1200 troubled youth, we are forced to cancel our service and close the doors on December 31, 2008. 445 S. Arrowhead Ave., Suite C' Mailing Address: P.O. Box 479, San Bernardino, CA 92402' (909) 885-7066 Fax (909) 885-7435