eves CITY OF DURHAM Date: February 4, 2019 To: Thomas J. Bonfield, City Manager Through: —_ Keith Chadwell, Deputy City Manager From: Bill Judge, Interim Transportation Director Subject: Universal Security Services, LP (dba Allied Universal Security Services) Investigative Inquiry Update Executive Summary The Notice of Intent to Award a Contract was posted on the City's webpage on December 18, 2018. The agenda item was originally discussed at the City Council's Work Session on January 10, 2019. At that time, the Universal Protection Service, LP (dba Allied Universal Security Services) official incorrectly stated the City of Durham Livable Wage rate, but stated that the company would agree to compensate its employees based on the City's Livable Wage Rate. As a result, the Transportation Department delayed the agenda item until the next agenda cycle to confirm the livable wage rate issue was accurately and sufficiently addressed in the agenda item and contract Given the desired contract start date of February 1,2019, the Transportation Department recommend to the City Manager that the City Council suspend the rules and vote on the item at its January 24, 2019 Work Session. The City Council elected to suspend the rules and approved the contract for execution with Universal Protection Service, LP (dba Allied Universal Security Services) at the January 24, 2019 Work Session. ‘Sometime after the January 24, 2019 Work Session, the Indy Week, a local newspaper, informed City Administration that Allied Universal has been involved in certain lawsuits and cases for harassment and discrimination complaints in other states. City staff was unaware of theses past harassment and discrimination complaints filed against Allied Universal during the RFP and contract negotiation processes. The City of Durham values the fair and equitable treatment of all people, including employees, contractors, residents, visitors, stakeholders, etc. On January 25, 2019, the Transportation Department, in consultation with the City Attorney's Office staff sent Universal Protection Service, LP a letter requesting that the company address several identified items and provide an official response, including documentation, if warranted on or before Wednesday, January 30, 2019. Recommendation The Transportation Department recommends that the City Council authorize the City Manager to enter into a contract with Universal Protection Service, LP, dba Allied Universal Security Services as approved at the City Council Work Session on January 24, 2019.Feed CITY OF DURHAM Background ‘On Thursday, January 24, 2019, Indy Week, a local newspaper, informed City Administration that Allied Universal has been involved in certain lawsuits and complaints for harassment and discrimination in other states. More specifically, the newspaper reported that “in 2017, current and former Allied employees working in a New York airport fled a federal civil rights lawsuit saying employees were being pressured by their superiors for sex. The newspaper further reported that this case was profiled in an episode of This American Life in May 2018.” (On January 23, 2018, the US Equal Employment Opportunity Commission issued a press release stating “that Universal Protection Services, LP dba Allied Universal Security would pay $90,000 and furnish other relief to settle a religious discrimination lawsuit filed by the EEOC. According to the EEOC's lawsuit, the security company refused to accommodate the request of a Muslim security guard who sought a modification to the company’s grooming standard. The press release states that your company fired the employee two days after he made the request.” Further, Indy Week reports that last month, “two Allied employees pleaded guilty to beating a black man at a Denver transit station, which employees tried to cover up.” In a separate incident, “video footage surfaced in December 2016 of an Allied guard beating a homeless man in Boston, after which employees relayed to the Boston Globe a culture of harassing homeless people.” City staff was unaware of these harassment and discrimination complaints filed against Allied Universal during the RFP and contract negotiation process. Issues and Analysis The City of Durham values the fair and equitable treatment of all people, including employees, contractors, residents, visitors, stakeholders, etc. The alleged complaints reported by the newspaper are of great concer. In an effort to effectively and fairly assess the allegations and complaints, the Transportation Department requested thal Universal Protection Services, LP dba Allied Universal Security address the following items and provide an official response, including documentation, if warranted. A copy of the Transportation Department's Inquiry Letter is provided as Attachment A. A summary of the requested inquiry items include: 1. EEOC Settlement - What actions did Allied Universal take to address the merits of the discrimination case? Did Allied adjust its grooming andlor other policies as a result of the settlement ruling? 2. How did Allied Universal respond to each of the aforementioned complaints/allegations? Did the firm discipline the bad actors? What actions did the company take company-wide to avoid such incidents in the future? What kind of additional training did employees and supervisors receive to mitigate similar situations in the future? 5. What management systems were implemented to facilitate communication of bad behavior so immediate corrective action could be taken? Bepee’ CITY OF DURHAM 6. How many security guards will be assigned to the City of Durham contract? 7. Did Allied hire any of the employees who worked for the previous security guard contractor? If so, how many? City staff believes the response from Universal Protection Services, LP dba Allied Universal ‘Security was complete in addressing the requested information from the City. Staff concluded that the firm has implemented a diversity of preventive and proactive measures to mitigate future ‘occurrences that are presented in its official response. A brief synopsis of the actions taken by Universal Protection Services, LP dba Allied Universal Security, includes, but are not limited to the following 1. Provided additional training on religious discrimination and reasonable accommodation to employees and managers based in California. 2. The Company engaged an outside resource to ensure that its nationwide anti- discrimination policies were being effectively implemented. 3. Aletter from a senior official is sent to all employees annually to highlight the Company's commitments and expectations, 4. Company has an open-door policy and a concem resolution process which provides for several avenues through which employees can raise any workplace concer. 5. The Company established a “Employees First’ reporting hotline where any concem can be reported anonymously. 6. The Company reviews its policies on a quarterly basis to ensure that its policies and expectations around workplace conduct are unambiguous, 7. The Company updates and/or republishes its employee handbooks as needed, 8. The Company implemented a Use of Force policy and ensures that training is provided to each employee. 9. Training is offered “on demand” through the Company's proprietary training platform “The Edge.” 10. The Company required all human resource professionals to complete additional, specialized training on dealing with employee complaints. 11. The Company further revised and reissued existing policies and procedures, held regular “town hall” meetings and invited employees to address any questions or concerns they may have. 12. The Company implemented additional employee messaging and outreach, including a company-wide reminder emphasizing policies prohibiting harassment and discrimination and outlining reporting procedures if such behavior occurs. A full copy of Universal Protection Services, LP dba Allied Universal Security's official response is provided as Attachment B. Further, Universal Protection Services, LP dba Allied Universal Security has over 200,000 employees nationally that provides security guard and other associated services in excess of 42,000 client locations nationally. An abridged client portfolio, including local client information, is provided below for your consideration