City Council Meeting: April 7, 2009

Agenda Item: 1-G

To:                   Mayor and City Council

From:              Eileen Fogarty, Director, Planning and Community Development

Subject:          Award of Contract for Parking Management Services to Central Parking

 

Recommended Action

Staff recommends award of a 37-month contract with two one-year renewal options for parking management services to Central Parking Corporation in the amount of $4,558,738 for the first 13 months (June 2009 through June 2010) operations; $5,408,738 for FY 10-11 operations; $5,684,982 for FY 11-12 operations; $5,971,872 for FY 12-13 operations; and $6,277,966 for FY 13-14 operations. FY 10-11 and FY 11-12 are to be negotiated by the City Manager subject to appropriation of funding by City Council in future year operating budgets and FY 12-13 and FY 13-14 subject to approval of one-year renewal options, to be negotiated by the City Manager subject to appropriation of funding by City Council in future year operating budgets. 

 

Executive Summary

This report recommends that the City Council authorize the City Manager to negotiate and execute a 37-month contract with two one-year renewal options with Central Parking Corporation to provide parking management services. The proposed scope of services is substantially the same as that in place for the past eight years of consolidated off-street parking operations, and includes a provision to extend the scope to cover operation of Santa Monica Place (Parking Structures 7 and 8) and the Annenberg Community Beach House in the future. The budget for the first 13 months of services is not to exceed $4,558,738, with years two and three to be negotiated by the City Manager subject to appropriation of funding by City Council in future year operating budgets and years four and five subject to approval of one-year renewal options and to be negotiated by the City Manager subject to appropriation of funding by City Council.

 

Background

The City of Santa Monica has operated its off–street parking services pursuant to a consolidated management agreement since July 1, 2000.  The current parking operator is Parking Concepts, Incorporated (PCI). The operation includes approximately 10,000 parking spaces, generates more than $16 million in annual revenue and serves over 10 million parkers each year.  The City of Santa Monica‘s current parking management services agreement will expire at 2:00 AM on June 1, 2009.  The City has no renewal option with PCI and therefore initiated a competitive bidding process.  The contract will cover the six downtown structures, Parking Structure 9, Civic Center Parking Structure (CCPS), Main Library, beach and Pier parking lots, and the bicycle valet program; including maintenance of all elevators and all parking access/revenue control equipment (with the exception of Parking Structures 7 and 8, where Macerich will be responsible for the elevator maintenance for those facilities). 

 

Discussion

Contractor/Consultant Selection

Staff issued a Request for Proposal (RFP) in November 2008.  A conference and site tour was held for interested parties on December 1, 2008, with nine potential bidders participating.  A selection committee was formed to evaluate all submitted proposals.  The selection committee consisted of nine members from various City departments, including Finance, Police, Community and Cultural Services, and Transportation Management Division, as well as a representative from the Bayside District Corporation, Pier Restoration Corporation (PRC), City of Long Beach, and Macerich (owner of Santa Monica Place).  Staff received and reviewed five bid proposals; Parking Office staff evaluated references and Finance Department staff evaluated information on financial stability.  During January and early February 2009, the selection committee reviewed and ranked all submitted proposals. 

 

The top three candidates were selected for oral interviews which were held in February.  Pursuant to SMMC 2.24.072, the selection panel ranked the bidders according to the bidder’s price and fiscal responsibility; quality of services offered; the ability, capacity, and skill of the bidder to provide services; the capacity of the bidder to provide the service promptly, within the time specified, and without delay or interference; and the character, integrity, reputation, judgment, training, experience, and efficiency of the bidder. 

 

The selection committee’s top-ranked candidate is Central Parking Corporation, with Modern Parking Inc. ranked second.

 

The list below highlights those qualifications exhibited by Central Parking Corporation:

 

·        Largest national parking industry company

·        Overall highest quality of services provided among interviewed firms

·        Largest number of employees in southern California so they are best qualified to immediately handle the size of the City’s parking operation

·        The City of Long Beach reported extreme satisfaction with Central Parking’s performance stating that they have “gone above and beyond the call of duty” and “have reduced costs to meet operational needs.”

·        The human resources support provided by the firm (training, customer service) was the best of the three interviewed firms

·        The Central Parking management team exhibited the strongest experience and ability to work with City staff

·        Financially, Central Parking Corporation is the soundest of all interviewed firms

 

Financial Impacts & Budget Actions

The first-year (FY 09-10) contract cost for facilities already in operation is $3,714,200, the same as budgeted for FY 08-09, reflecting the focus on managing and controlling costs.  Staff is requesting additional services in the amount of $484,108 for the first year (FY 09-10) for the Annenberg Community Beach House and to operate Santa Monica Place (assumed open for public parking in December 2009) as an attended parking facility.  These additional expenses are expected to be offset by new gross revenue, which is estimated to cover the contract costs for FY 09-10.  Costs for the Annenberg Community Beach House facility are also included in a separate enhancement request made for the entire facility. 

 

The 13 month contract cost is $4,558,738 from June 2009 through June 2010.  For June 2009 costs, funds of $360,430 are available at account 01417.555010.  For FY2009-10 costs, appropriations will be included in the FY2009-10 Proposed Budget for Council's review and approval. The contract cost for the first month (June 2009) for facilities already in operation is $352,463.  Staff is requesting additional services in the amount of $7,967 for the first month (June 2009) for enhanced services for the Annenberg Community Beach House.

 

The addition of the Santa Monica Place and Annenberg Community Beach House facilities will require an expansion of the City’s current Parking Office functions. This expansion would require additional resources to be included in future year operating budgets, which would be offset by increased revenues.

 

Total costs for the three-year contract plus two optional one-year extensions are not to exceed those costs shown on the table below, subject to appropriation of funding by City Council in future year operating budgets.

 

Estimated Parking Management Services Costs

Parking Facility

First 13 Months

FY 10-11

FY 11-12

FY 12-13

FY 13-14

FY 08-09 (June ’09)

FY 09-10

PS 1 -6, 9, 10, Main St., CCPS, Civic Aud., Library, Main St., Beach, & Pier

(Facilities already in operation)

$352,463

$3,714,200

$4,445,942

$4,664,860

$4,897,879

$5,146,249

Annenberg Community Beach House

$7,967

$101,979

$101,979

$113,926

$119,180

$124,735

PS 7-8 (SMP)

$0

$382,129

$860,817

$906,196

$954,813

$1,006,982

TOTAL

$360,430

$4,198,308

$5,408,738

$5,684,982

$5,971,872

$6,277,966

$4,558,738 (First 13 Months)

 

Staff has developed these cost estimates in coordination with Finance Department staff.

 

Comparison of Cost to Provide this Service In-House

If the City were to provide all parking management services described within the RFP, the total estimated 13 month (June 2009 through June 2010) costs would be approximately $7.2 million, approximately 58% more than the estimated parking management services costs for Central Parking Corporation (See Attachment A).

 

 

Prepared by:

Sam Morrissey, Planning and Community Development

 

Approved:

 

Forwarded to Council:

 

 

 

 

 

 

Name

Eileen Fogarty, Director, Department of Planning and Community Development

 

P. Lamont Ewell

City Manager