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y d <br />?? b E <br />P A R KI N G C O N C E P T S IN C. <br /> TM <br />March 20, 2013 <br />Honorable Miguel A. Pulido <br />Mayor, City of Santa Ana <br />City Hall <br />22 Civic Center Plaza <br />Santa Ana, CA 92701 <br />Dear Honorable Mayor Pulido: <br />Thank you for taking the time to meet with me, our manager, Diego Alvarez and <br />Lyle Overby to discuss the recent UP costs for your parking facilities in Santa <br />Ana. As your present operator, we sincerely thank you for the opportunity to <br />manage your facilities for the past five years. <br />During the meeting, you challenged me to present the types of RFP specifications <br />that achieve protections for the city that would also strengthen the UP in area of <br />casts and reimbursements. When these areas are unclear, this is what can cause <br />wide variations in responses. If the suggestions herein are deployed in a new RFP, <br />that would also make it a level playing field for all responders and give the City <br />ways to insure that the operators live up to their budgeted expense proformas. <br />I have attached a spreadsheet that itemizes detailed expenses and clarifications. I <br />suggest that the operator be penalized if one of these line items is exceeded by <br />more than three percent, without prior approval from your department, and that the <br />City may take the overrun out of the management fee. To fully protect the city, a <br />letter of credit should be required out of which reimbursement overruns could be <br />collected. The Letter of Credit that each operator should have to provide the City is <br />$100,000.00 considering the reimbursements are running at or in excess of $1 <br />million per year. <br />Per the above, if the budgeted items for security, landscaping, painting, power <br />washing and sweeping are supplied by the operator, they must guarantee their <br />budget. If the services are provided by an outside contractor, then the contractor o <br />for each service should be named and the cost should be guaranteed within 3% for o <br />the first year. <br />Another area of clarification is the type of vision the city has or would like options U , <br />presented. Without some guidance or alert in the RFP, it has to be assumed that <br />if 12 Mauchly M Irvine IM 949753-7525 m E-Mail <br />Building I California 92618 949 753-7526 Fax parkingconceptsopcloc_com