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Agreement with ABM for Municipal Parking Facilities Operator <br />December 7, 2021 <br />Page 3 <br />2 <br />2 <br />5 <br />3 <br />locations including the following: West Hollywood, Culver City, California Judicial Court <br />Administrative Office, Civic Center Towers (Santa Ana), colleges & universities, airports, <br />and hotels. <br />Overview of Terms <br />Following the evaluation process, staff entered into negotiations with ABM Parking <br />Services who has exceeded expectations and has more competitive rates, below are <br />some highlights of the cost savings and value-added service with ABM Parking Services. <br />ABM Parking Services offered a competitive management fee of $18,000 for the first year <br />and will waive the management fee for the first three (3) months of the agreement, plus <br />approved reimbursable costs such as payroll, maintenance, equipment, janitorial, etc. <br />The management fee for the subsequent years will be $24,000 with an approved and <br />negotiated increase tied to the local Consumer Price Index (CPI) rate (which typically <br />averages 5%) plus approved reimbursable costs (payroll, maintenance, equipment, <br />janitorial, etc.). ABM Parking Services provides an automatic annual cost savings of <br />$14,580 simply with the new management fee. The incumbent’s management fee <br />is $32,580 annually. The new parking operator is presenting an overall cost savings of <br />10% annually while helping increase revenue and provide augmented services. <br />ABM Parking Services has a strong financial foundation that provides City with a <br />competitive and reasonable rates for workers compensation, general liability insurance <br />rates, merchant processing fees that warrants an overall annual overhead savings of <br />10.5% with value added services. In an effort to reduce overhead cost and improve the <br />overall operation of the parking facilities, ABM Parking Services will assist in negotiating <br />maintenance service agreements and identifying innovative technology that provides for <br />a more pleasant parking experience. ABM Parking Services focuses on customer service <br />and will enhance cleaning services to include power washing, painting, marketing, and <br />automation of payment systems. <br />Below is a cost comparison that highlights the cost savings provided by ABM in <br />comparison to the existing costs. <br />Categories <br />(Annual Costs) <br />Current Parking <br />Operator <br />(Annual Costs) <br />ABM <br />(Annual Costs) <br />Annual Savings <br />Comparison <br />Salaries & Wages*$ 304,845 $ 281,036 $ 23,809 <br />Payroll Tax & Fringe Benefits $ 133,319 $ 128,118 $ 5,201 <br />Workers Compensation $ 85,207 $ 26,765 $ 58,442 <br />General Liability Insurance $ 32,709 $ 16,542 $ 16,167 <br />Management Fee $ 32,580 $ 18,000 $ 14,580 <br />*Please note that employee wages for all union employees with at least one year of work will receive <br />an annual increase of 40 cents to their hourly rate, effective June 1, 2022, which will be incorporated <br />into the annual budget in 2022. <br />