The second item acted on irresponsibly by the City Council on March 21, 2006, was a contract with DP Security for Point Molate security.

DP Security is a small Richmond business owned by Michael Davenport that has provided security under various contracts, totaling several hundred thousand dollars annually, with the City of Richmond for years, including the City Hall (post 9-11), the Marina Bay Area (pursuant to Redevelopment Agency commitments) and  for Point Molate.

My impression is that Davenport and DP Security have performed well over the years and may be a prefect fit for the Point Molate assignment. I would not hesitate to recommend DP Security, and I know Davenport as a competent businessman and a contributor to the community. But that’s not the issue.

The agenda item began with a presentation from the police chief of a plan to circulate an RFP for 24/7 security at Point Molate. Currently, DP Security currently provides a security presence at Point Molate from 10:00 PM to 6:00 AM. Under an arrangement that has been going on since at least January 2005 without a written contract.  There is no daytime security at Point Molate.

Davenport then provided his recollection of events. He said that he had been approached in October 2004 to submit a bid to Rich McCoy along with another company, Bajan Security. He said that he was awarded the “bid’ [selected?] in February 2005 but that Police Chief Terry Hudson wanted to critique the contract. He waited and waited but never heard back from Hudson. He said that since his bid amount was known, it would be unfair to reopen the bidding now. The contract, he said, was supposed to be for one year with an option to extend an additional year.

With their memories refreshed from Davenport’s recollections, Councilmembers Viramontes, Griffin and Mayor Anderson asserted that they, too, remembered awarding the contract to DP Security. Besides, Davenport is a Richmond resident, does a good job and has a perfect record. Michael Ali rose to remind the Council that Davenport had donated $1,000 to the Steelers.

The city attorney was asked what the procedure was for awarding a sole source contract, and he read the applicable passage from the Richmond Municipal Code:

2.52.326 Sole source procurement.

A contract may be awarded without competition when the City determines in writing, after conducting a good faith review of available sources, that there is only one source for the required goods or service. In the case of contracts less than $10,000, this determination shall be made by the City Manager and, in the case of contracts in the amount of $10,000 or more, this determination shall be made by the City Council. The City Manager shall conduct negotiations, as appropriate, as to price, delivery, and terms. A written statement of the basis for the sole source determination shall be placed in the contract file. A record of sole source procurements shall be maintained as a public record for purchases of supplies or services exceeding the amount fixed for solicitation of unsealed quotes.

City Council members were sure that there had been a competitive bid process previously. Tony Thurmond, who wasn’t even there said that the contract was not, in fact, sole source; the City Council was simply finally awarding a contract that had been competitively bid and previously approved.

Police Chief Magnus pointed out that, according to the Minutes, the City Council had not voted to award a contract to DP Security. Several city Council members then asserted that, regardless of what the Minutes reflected, they recalled that the contract had been awarded and that their intent was to carry out that previous action.

With a motion by Viramontes and second by Bates, the city manager, who wasn’t around at the time, either, summed up the motion as:

• Acknowledging the previous bid process
• Accepting the previous procurement process
• Directing staff to enter into a contract with DP Security with a 30-day termination clause and to bring the actual contract back as a consent item a future agenda.
• Address my questions about what happened to Bajan Security.

Councilmember McLaughlin, who actually was around but couldn’t remember as well as the others did the right thing and abstained. I left the room for restroom break, and the item passed 7-0-1 with me absent.

Having reviewed what everyone remembered, what actually happened?

1. Staff solicited both DP Security and Bajan Security in the fall of 2004 to provide “electronic surveillance and response” for Point Molate. This was not originally envisioned to include physical security. DP Security did not respond because the solicitation was configured for a scope of services DP Security was not prepared to provide. There was effectively only one bidder, Bajan Security.

2. Staff brought the draft Bajan contract to City Council on January 4, 2005. I had raised some concerns about the effectiveness of only electronic security, and those concerns were to be addressed in closed session on January 18. Apparently, sometime between January 18 and February 8, staff secured a proposal from DP Security to proved 24/7 physical security for $225,000.

3. The issue reappeared on the February 8, 2005, agenda, but both contracts (DP Security and Bajan) were listed, and the DP Security contract was not attached to the Agenda Request Form. Questions were raised about why both contractors were needed and why the DP Security contract was not attached. The item was held over.

4. The issue was again discussed in closed session February 15, and as a result of still unresolved issues, it was held over to February 22, at the city attorney’s request. It was held over again on February 22 to March 1, but it never reappeared on the agenda again.

The upshot is that:

• The contract for DP Security to provide 24/7 physical security was never competitively bid. It was negotiated as a sole source sometime in January or February of 2005.
• Although the City Council never approved a contract with DP Security for 24/7 security in 2005, the firm continued to provide 8/7 security until the present time without a contract and without City Council approval, which is a violation of the Charter, which requires City Council approval for expenditures over $10,000.
• It appears that staff did, in fact, drop the ball in bringing the DP Security contract back to the City Council.
• The recollections of several councilmembers that the contract was competitively bid and approved by the City Council are erroneous.
• It appears that the City Council has violated the Richmond Municipal Code Section 2.52.326 that prescribes the procedures for sole source procurement.

Like the previous E-Form item, this is not about Michael Davenport and DP Security. It is about really sloppy staff work, illegal acts by the City Council and Councilmembers that may be suffering from a bad case of CRS.

Excerpts from the records, which some councilmembers believe to be inferior to their own memories, follow:

City Council Minutes, January 6, 2004:

A proposed contract amendment with DP Security for security services at Point Molate, “BART” path at the Transit Village, and City-Owned facilities was presented. The contract amendment will not exceed $177,200. Councilmember Viramontes clarified that due the ongoing negotiations with the possible renters at Point Molate the City has to assume responsibility for security until negotiations have been concluded. Following discussion, on motion of Councilmember Viramontes, seconded by Councilmember Griffin, approved a contract amendment with DP Security by the unanimous vote of the Council.

City Council Minutes, February 17, 2004:

Adopted Resolution No. 23-04 authorizing the allocation of $250,000 of Point Molate income to fund the DP Security contract for Point Molate, Metro Walk, and to establish the Point Molate Security and Maintenance Fund.

City Council Minutes, July 6, 2004:

A proposed approval to renew an agreement with DP Security Company for security services for Point Molate and other city-directed activities. The contract period is July 1, 2004 through December 31, 2004. The total amount of the contract is $101,400. The following individual spoke on the matter: Jerome Smith. Leveron Bryant, Interim City Manager, stated that services are for city-owned facilities, neighborhood based facility activities, Point Molate, and other key city sponsored events. Following discussion, on motion of Councilmember Bates, seconded by Vice Mayor Griffin approved the agreement renewal by the unanimous vote of the Council.

On October 11, 2004, Michael Davenport of DP Security wrote to Craig Murray of the City of Richmond, regarding “Point Molate Electronic Security Camera and Monitoring System:”

If you are looking for a quick fix, I suggest going with the Bajan Security proposal. As you know, they are proposing the use of motion detectors. I installed the first motion detectors on this site. They work, but a great percentage of the time you will receive false alarms. If an intruder is on the property, he will more than likely be gone by the time Police or Security arrive at the site.

With the above being true, I suggest you have physical security on duty at critical time periods.

The staff report for the January 4, 2004, City Council meeting:

On July 6, 2004, the City Council approved a contract amendment for the period of July 1, 2004 to December 31, 204 with DP Security to continue to provide security services at Pt. Molate. This contract reduced the current level of security form a 24-hours per day to late-nights only (10:00 PM to 6:00 AM) with an expectation of DP Security was provided an opportunity to bid on a 24/7 surveillance and response system. DP Security declined to provide a proposal. Members of Bajan Security, previously under contract with DP Security and also with an extensive history of working with Pt. Molate security, were able to provide a proposal to install and monitor a 24/7 surveillance and response system.

On November 19, 2004, Bajan security was hired under an Exigent Circumstances after reports of break-ins including the north end of one of the historic cottages and a small fire being reported in one of the cottages and copper miners attacking Winehaven. With limited availability of City of Richmond staff to secure these sites, Bajan was engaged and has been providing surveillance services for the balance of two security shifts during this time.

City Council Minutes, January 4, 2005:

A proposed agreement with Bajan Security for security services for Point Molate. The total amount of the contract will not exceed $77,715.56. Craig Murray, Redevelopment Agency, gave an overview of the matter. Two proposals were solicited from firms that have experience with security at Point Molate—Bajan Security and DP Security. Bajan Security provided a proposal but DP Security did not. He noted that Bajan staff has worked cooperatively with local and federal police units effectively. The following individuals spoke on the matter: Michael Davenport and Lokesh Bali. He stated that he provides physical security therefore he could not bid on a request for electronic security. Discussion ensued. Following discussion, the Council requested that a presentation be made on the fine points of the security plan in Closed Session on January 18, 2005, regarding the effectiveness of an all electronic security system, and simultaneously ask Chief Hudson to review the concept of all electronic security system compared to a person being on site (Councilmember Viramontes left the meeting). The matter was held over for two weeks to January 18, 2005.

City Council Minutes, January 18, 2005:

Direction regarding Pt. Molate was given by the Council. A motion was made by Councilmember Penn, seconded by Councilmember Butt, to have full-time security on the premises. Mayor Anderson, Councilmembers Bates, and Marquez were absent and Councilmember McLaughlin abstained.

The Agenda Item Request Form for the February 8, 2005, City Council Meeting (Items I-2 and I-3) described the item as “Approve: Contract with Bajan Security for electronic surveillance and response (amount not to exceed $77,714.56) and a contract with DP Security to provide a guard patrol service (amount not to exceed $225,000.00), and The staff report for the describe the situation at that time:

The City Council has previously approved a contract with DP Security for providing security services which expired on December 31, 2004. Effective July 1, 2004, the City Council entered into a contract which reduced the level of service from 24/7 to an eight hour late night shift from 10:00 PM to 6:00 AM with the expectation of electronic surveillance which never transpired.

On November 19, 2004, Bajan security was hired under an Exigent Circumstances after reports of break-ins including the north end of one of the historic cottages and a small fire being reported in one of the cottages and copper miners attacking Winehaven. With limited availability of City of Richmond staff to secure these sites, Bajan was engaged and has been providing surveillance services for the balance of two security shifts during this time.

City Council Minutes, February 8. 2005:

Continued one week, to February 15, 2005, a proposed agreement with Bajan Security to provide electronic service and response at Point Molate. The total amount of the agreement shall not exceed $77,714.56. Continued one week to February 15, 2005, a proposed agreement with DP Security to provide guard patrol security service at Point Molate. The total amount of the agreement shall not exceed $225,000.

City Council Minutes, February 15. 2005:

Executive Session: DP Security: Discussion was held and the matter is on the agenda for discussion.

Open Session: A proposed agreement with DP Security to provide guard patrol security service at Point Molate was presented. The total amount of the agreement shall not exceed $225,000. Everett Jenkins, Interim City Attorney, stated that based on the discussions held during Executive Session, staff requested a one week continuance. Following discussion, the matter was continued one week to Tuesday, February 22, 2005.

City Council Minutes, February 22, 2005:

Continued to March 1, 2005, an agreement with DP Security to provide guard patrol security service at Point Molate. The total amount of the agreement will not exceed $225,000.