Security Guards for only $50/month

The cost of hiring a gate attendant in a Eastridge Hills HOA community will depend on several factors, including wages, taxes, and required insurance. The final paragraph of this story gives the best scenario. Here’s some estimates based on typical costs in the Bay area of northern California:

1. Wages

     •  Hourly wage: The average hourly wage for a gate attendant or security guard in California ranges from $18 to $25.

     •  Daily coverage: If you’re looking for daytime coverage, let’s assume 8 hours a day, 7 days a week.

     •  Monthly wage: At $22/hour, for 8 hours a day and 30 days, the total monthly wage would be:

(22 * 8) * 30 = $5,280

2. Payroll taxes

     •  Social Security and Medicare (FICA): Employers are required to pay 6.2% for Social Security and 1.45% for Medicare, a total of 7.65% of the employee’s gross wages.

[(0.0765 * $5,280 = $403.92 per month])

3. Workman’s Compensation Insurance

     •  Workman’s comp: This cost varies by industry and risk, but a typical rate for low-risk employees like a gate attendant could range from 1% to 4% of wages. Let’s estimate it at 2.5% of wages.

(0.025 * $5,280 = $132 per month]

4. Unemployment Insurance (FUTA and SUTA)

     •  FUTA: Federal unemployment tax is typically 6% of the first $7,000 of wages.

[(0.06 * $7,000) = $420 annually, or $35 per month]

     •  SUTA: California’s State Unemployment Tax is around 3.4% for new employers on the first $7,000 of wages.

[(0.034 * $7,000) = $238 annually, or $19.83 per month]

Overhead Categories	Total Monthly Costs
Wages:	$5,280
Social Security & Medicare:	$403.92
Workman’s Comp:	$132
Unemployment Insurance:	$54.83

Estimated Total Cost per Month: 8 hours per day for 7 days per week.

8 hours per day for 7 days per week	$5,869 per month
Eastridge Hills lots	81
Portion paid by Eastridge POA	66%
$5,869.00 / 81	72.46 / month
72.46 X 33.33%	$23.91 cost per month an increase in dues.

Using the same calculation only for 12 hours per day:

12 hours per day for 7 days per week	$8,778.71 per month
Eastridge Hills lots	81
Portion paid by Eastridge POA	66%
$8,778.71 / 81	108.38 / month
108.38 X 33.33%	$35.77 cost per month an increase in dues.

This is a ballpark estimate and might vary depending on the specifics of the employment arrangement, additional benefits, or insurance coverage requirements.

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To explore part-time options or vendor contracts:

     •  Direct Hire (12 hours/day): ~$8,778.71 per month ($105,344.52 annually)

     •  Vendor Contract (12 hours/day): ~$13,320 per month ($159,840 annually)

Though the vendor contract tends to be higher, the benefits of reduced administrative tasks, liability coverage, and ease of management might make it a more attractive option for our HOA.

We would be wise to request quotes from a few security companies to compare and negotiate better terms instead of relying on the Kelly Company, who could have other conflicting agreements.

Exploring a vendor contract for gate attendant services is a viable alternative to directly hiring a gate attendant. Here are some considerations and cost factors for vendor contracts:

1. Vendor Contract Benefits

     •  All-inclusive pricing: Vendor contracts typically include employee wages, payroll taxes, workman’s comp, unemployment insurance, liability coverage, training, and sometimes uniforms or equipment.

     •  Simplified management: The vendor handles hiring, payroll, benefits, and employee replacement if needed.

     •  Liability reduction: The vendor assumes liability for employment-related claims and compliance with labor laws.

2. Cost Structure for Vendor Contracts

     •  Hourly Rate: Vendor contracts often have a higher hourly rate to cover these additional costs. In California, typical rates for gate attendant or security personnel might range from $30 to $45 per hour, depending on the scope of services, experience, and contract terms.

Assuming the gate is staffed for 12 hours per day, 7 days a week, the costs would be:

(Hourly Rate) * (Hours per day) * (Days per month)

Using a mid-range estimate of $37 per hour:

[(37 * 12) * 30 = $13,320 per month] \

At this rate, the annual cost would be:

[(13,320 * 12) = $159,840 per year]

3. Contract Flexibility and Negotiations

     •  Contract length: Long-term contracts (1-3 years) often reduce hourly rates, whereas month-to-month agreements might cost more.

     •  Service level agreements (SLAs): You can negotiate specific duties, such as guest screening, resident access management, and additional services (patrol, etc.), which could impact cost.

     •  Local vendors: Reaching out to local security companies can provide more accurate quotes. Local vendors might also offer more flexibility or bundled services with HOA needs in mind.

4. Additional Costs

     •  Additional services: Some vendors provide technology integration (cameras, automated systems) for an extra fee; however, we are already paying for this technology through the agreement with Eastridge POA.

     •  Holiday/Overtime rates: Expect higher rates on holidays or for overtime beyond regular contracted hours. Some contracts include holiday staffing for major holidays at a premium rate.

Comparison of Direct Hire vs. Vendor Contract

     •  Direct Hire (12 hours/day): ~$8,778.71 per month ($105,344.52 annually)

     •  Vendor Contract (12 hours/day): ~$13,320 per month ($159,840 annually)

Though the vendor contract may be higher, the benefits of reduced administrative tasks, liability coverage, and ease of management might make it a more attractive option for our HOA.

$13,320 per month (or about 159,840 annually).

81 lots

Proportion paid by Eastridge POA 66%

$13,320 / 81 Eastridge Hills lots = 164.44 / month

164.44 X 33.33% = $54.27 cost per 81 Eastridge Hills household per month (increase in dues).

* If a security guard prevented only half of repairs to our gate mechanics-we would save $41.15 per month for each lot and therefore the net increase in dues would be only $13.12 per month.

Now, would an extra $13.12 per month add value to the neighborhood?

Would it be worth your piece of mind for only $0.44 per day?

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