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Home My WebLink About25C - MUNICIPAL PARKING GARAGE SVCS CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: REQUEST FOR COUNCIL ACTION DECEMBER 3, 2007 TITLE: CONTRACT AWARD FOR MUNICIPAL PARKING GARAGE OPERATOR APPROVED o As Recommended o As Amended o Ordinance on 10t Reading o Ordinance on 2nd Reading o Implementing Resolution o Set Public Hearing For ~ QJfJ(2~- CITY MANAGER CONTINUED TO FILE NUMBER RECOMMENDED ACTION Award a three-year management contract to Parking Concepts Inc. of Los Angeles for the operation of four Downtown, City-owned parking garages at a fixed rate not to exceed $28,800 per year. DISCUSSION The City of Santa Ana owns and operates four parking facilities within Downtown Santa Ana. All four facilities are multi-level parking structures and are vital in providing easily accessible parking for the surrounding retail businesses and numerous visitors to Downtown Santa Ana. In addition, these facilities provide parking for numerous events held throughout the year within the downtown. The existing management agreement with Ace Parking, Inc. will expire on December 31, 2007. On October 8, 2007, 19 Requests for Proposals were mailed to prospective operators for a new three-year contract. Nine responsive proposals were received. On November 16, 2007, the City of Santa Ana Community Development Agency received a fax from Diamond Parking Services informing the City that they were regrettably withdrawing its proposal. A committee consisting of city staff from the Community Development Agency Downtown and Administrative Services Divisions and the Public Works Agency evaluated the proposals. The evaluations were based on several criteria, including the proposal management, operations, improvements, implementation and recommendations plans; operator qualifications; fee proposal; projected net revenue; and the overall quality and depth of the proposal. i ~ 25C-1 Contract Award for Municipal Parking Garage Operator December 3, 2007 Page 2 Below are the evaluation results of the proposals as well as their fee proposals and projected net revenues: Projected Company Net Revenue AnnualFee Staff Rating Ace Parking, Inc. $160,413* $13,000* 76.96 Ampco Parking Systems $372,398 $24,000 73.76 Central Parking Systems $190,863 $24,000 75.52 Five Star Parking $292,645 $0 77.16 Modern Parking, Inc. $362,301 $28,800 68.60 Network Parking -$18,526 $48,000 63.44 Parking Company of America $** $28,800 60.80 Parking Concepts, Inc. $421,937 $28,800 78.08 *Ace Parking, Inc. submitted a progressive fee proposal where the cost is zero for the first six months. The amount shown above is a yearly average of the total cost over three years. In addition, Ace Parking, Inc. submitted three budgetary proposal options based on whether (1) labor would be at the same wage and benefit rates currently paid; (2) at minimum wage rates; and (3) wages and benefits under a collective bargaining agreement. The projected net revenue shown above takes into account option 3, wages and benefits under a collective bargaining agreement. **Parking Company of America did not submit a projected gross revenue proposal; therefore, the projected net revenue could not be determined. Currently Parking Concepts, Inc. is the management company for the County of Orange parking facilities in the civic center area. Staff evaluated the benefits of having the same management company, which would afford opportunities for coordination in parking policies and procedures. A requirement of the proposal was to submit a management plan, which was to include a pro forma statement for calendar year 2008. Parking Concepts, Inc. proposed the highest net revenue; and even though the net revenue is a projected amount, staff determined that reaching this level was attainable given their costs and estimated revenue. 25C-2 Contract Award for Municipal Parking Garage Operator December 3, 2007 Page 3 Another plan that was a requirement of the proposal was an operational plan. Parking Concepts, Inc. has a clear understanding of the needs of the City in order to operate the facilities in an efficient and effective manner. In addition, the City also requested plans for improvements of the facilities and overall recommendations. The improvements and recommendations proposed by Parking Concepts, Inc. are essential to bringing the facilities up to a standard of quality desired by the City. Parking Concepts, Inc. did not have the lowest management fee. The fee ranged from $0 to $48,000; and the fee Parking Concepts, Inc is proposing of $28,800 is in line with the majority of proposals. In addition, the fee is only one component of the overall assessment of the proposal. Combined with the other criteria that was evaluated, Parking Concepts, Inc. rated as the top scorer. Five Star Parking proposed operating the parking facilities at zero cost to the City; however, after evaluating its budgetary proposal, the cost of operating the facility would out weigh the zero fee. Often, the parking garages provide the first impression to those visiting Santa Ana; therefore, the appearance of the garage and customer service are of primary importance. With the execution of a new agreement, staff will work with Parking Concepts, Inc. to develop improvement plans. Based on the overall quality and thoroughness of recommends the selection of Parking Concepts, Inc. Downtown City-owned garages for a three-year period options to be executed at the discretion of the City. the proposal, staff to manage the four wi th two, one-year FISCAL IMPACT Funds are available In the Downtown Parking Facilities Account (account no. 027-014-6291). APPROVED AS TO FUNDS AND ACCOUNTS: st,,~:qrding Deputy City Manager for Development Services Community Development Agency C2UALf,^ ~~ t ~rancisco Gutierrez Fi.U'" ~ Executive Director Finance & Management Services Agency SGH/FH/mlr H:\ACTION ITEMS\COUNCIL\2007 CC\ContAwardMuniParkGarageOperator 12-3-07.doc 25C-3 25C-4