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P A R KI N G C O N C E P T S IN C.
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March 20, 2013
Honorable Miguel A. Pulido
Mayor, City of Santa Ana
City Hall
22 Civic Center Plaza
Santa Ana, CA 92701
Dear Honorable Mayor Pulido:
Thank you for taking the time to meet with me, our manager, Diego Alvarez and
Lyle Overby to discuss the recent UP costs for your parking facilities in Santa
Ana. As your present operator, we sincerely thank you for the opportunity to
manage your facilities for the past five years.
During the meeting, you challenged me to present the types of RFP specifications
that achieve protections for the city that would also strengthen the UP in area of
casts and reimbursements. When these areas are unclear, this is what can cause
wide variations in responses. If the suggestions herein are deployed in a new RFP,
that would also make it a level playing field for all responders and give the City
ways to insure that the operators live up to their budgeted expense proformas.
I have attached a spreadsheet that itemizes detailed expenses and clarifications. I
suggest that the operator be penalized if one of these line items is exceeded by
more than three percent, without prior approval from your department, and that the
City may take the overrun out of the management fee. To fully protect the city, a
letter of credit should be required out of which reimbursement overruns could be
collected. The Letter of Credit that each operator should have to provide the City is
$100,000.00 considering the reimbursements are running at or in excess of $1
million per year.
Per the above, if the budgeted items for security, landscaping, painting, power
washing and sweeping are supplied by the operator, they must guarantee their
budget. If the services are provided by an outside contractor, then the contractor o
for each service should be named and the cost should be guaranteed within 3% for o
the first year.
Another area of clarification is the type of vision the city has or would like options U ,
presented. Without some guidance or alert in the RFP, it has to be assumed that
if 12 Mauchly M Irvine IM 949753-7525 m E-Mail
Building I California 92618 949 753-7526 Fax parkingconceptsopcloc_com
cost containment is key. In the instant case, the recommended proposer is being
rewarded for proposing a 20% cost increase. The RFP process benefits from clear
expectations that the city is interested in entertaining more urban solutions and
management techniques and the corresponding costs.
1 believe that these types of RFP refinements would yield many more options for
the city to consider and give your City a contract that you would be able to enforce
and manage effectively and efficiently.
Our sincere recommendation and request is to rebid this assignment with clear
guidelines and enforceable provisions to identify more options and protections for
the city.
Sincerely,
Gill BPresident
Attachments - Exhibits 1
Cc: Mr. Sal Tinajero Mr. Vincent F. Sarmiento
Mayor Pro Tern - Ward 6 Councilmember - Ward 1
Ms. Michele Martinez Ms. Angelica Amezcua
Councilmember - Ward 2 Councilmember - Ward 3
Mr. P. David Benavides Mr. Roman Reyna
Councilmember - Ward 4 Councilmember - Ward S
Sonia R. Carvalho Nancy T. Edwards
City Attorney Interim Executive Director
Comm. Development Agency
Kevin O'Rourke Gabriela P. Lomeli
Interim City Manager Project Manager
Comm. Development Agency
173 12 Mauchly Avenue, Building I ® California 92618 ® s9497537625
aga 753 7526 Fax
Note: if Operator expense (except for direct labor costs), cost Is guaranteed at proposed bid, and not to exceed, forth ree years.
If contracted expense, cost cannot increase by more than 3% per annum, without prior written approval by City.