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13 ?? <br />Central <br />r PARKING <br />March 27, 2013 <br />The Honorable Mayor and City Council <br />City of Santa Ana <br />20 Civic Center Plaza <br />Santa Ana, CA 92701 <br />RE: RFP 12-060 - Central Parking <br />Dear Mayor Pulido and Council members: <br />Central Parking <br />3420 Bristol Street <br />Suite 225 <br />Costa Idesa, CA 92626 <br />Phone: 714 7512855 <br />I^ ax: 714 7.51 3650 <br />Website: wsvw.patlang.mm <br />This letter is to provide you with further details on questions raised during the Council approval and review <br />process of the staff recommendation for RFP 12-060. <br />COST DIFFERENTIAL BETWEEN CENTRAL PARKING BID AND INCUMBENT <br />Major cost difference Is in labor cost between the two bids. Here are the reasons why; <br />+ Labor Cost - Central Parking's proposed labor hours for Union Employees are based on the RFP <br />provided schedules and requirements. Central bid 580 hours per week or 30,160 annually. Incumbent <br />appears to have bid significantly less hours than required in the RFP which Impacts union members' <br />benefits as well. While the incumbent is currently operating per the schedules provided in the RFP, they <br />are proposing less hours in their bid. We are signatories to the same Collective Bargaining Agreement as <br />other bidders and are required to retain all union employees with benefits. <br />+ Union Wage Rates and Increases -Our proposed wage rates are derived straight from the union <br />provided roster of actual current wages. Our labor cost also incorporates a union wage increase of $0.35 <br />cents expected in June 2013 per CBA. <br />+ Pass through Expenses - Other line items are pass-through expenses and our proposed budget <br />assumed industry standard estimated costs. All pass through expenses will require City staff approval <br />prior to incurring and payment of such expense and our goal will be to obtain up to three competitive bids <br />for all expenses of over $250 to capture the best price for the City. <br />REDUCTION IN MANAGEMENT FEE <br />Section XVIII - Con tractor Selection - Proposal and Evaluation allows the City to negotiate pricing with the <br />recommended bidder. First, the selection committee ranked Central Parking as the top bidder. After the <br />selection process, staff requested us to reconsider our proposed fee. We were able to lower our fee by <br />absorbing the cost of ancillary services including web based reporting and marketing tools that are <br />typically added on to our fee. <br />Please do not hesitate to contact me should you need additional information. <br />Sincerely, <br />Muham ad A. Mansoor <br />Region I Manager <br />CM 04/01/13 <br />25A