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HomeMy WebLinkAboutCORRESPONDENCE_25A_MANSOOR13 ?? Central r PARKING March 27, 2013 The Honorable Mayor and City Council City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 RE: RFP 12-060 - Central Parking Dear Mayor Pulido and Council members: Central Parking 3420 Bristol Street Suite 225 Costa Idesa, CA 92626 Phone: 714 7512855 I^ ax: 714 7.51 3650 Website: wsvw.patlang.mm This letter is to provide you with further details on questions raised during the Council approval and review process of the staff recommendation for RFP 12-060. COST DIFFERENTIAL BETWEEN CENTRAL PARKING BID AND INCUMBENT Major cost difference Is in labor cost between the two bids. Here are the reasons why; + Labor Cost - Central Parking's proposed labor hours for Union Employees are based on the RFP provided schedules and requirements. Central bid 580 hours per week or 30,160 annually. Incumbent appears to have bid significantly less hours than required in the RFP which Impacts union members' benefits as well. While the incumbent is currently operating per the schedules provided in the RFP, they are proposing less hours in their bid. We are signatories to the same Collective Bargaining Agreement as other bidders and are required to retain all union employees with benefits. + Union Wage Rates and Increases -Our proposed wage rates are derived straight from the union provided roster of actual current wages. Our labor cost also incorporates a union wage increase of $0.35 cents expected in June 2013 per CBA. + Pass through Expenses - Other line items are pass-through expenses and our proposed budget assumed industry standard estimated costs. All pass through expenses will require City staff approval prior to incurring and payment of such expense and our goal will be to obtain up to three competitive bids for all expenses of over $250 to capture the best price for the City. REDUCTION IN MANAGEMENT FEE Section XVIII - Con tractor Selection - Proposal and Evaluation allows the City to negotiate pricing with the recommended bidder. First, the selection committee ranked Central Parking as the top bidder. After the selection process, staff requested us to reconsider our proposed fee. We were able to lower our fee by absorbing the cost of ancillary services including web based reporting and marketing tools that are typically added on to our fee. Please do not hesitate to contact me should you need additional information. Sincerely, Muham ad A. Mansoor Region I Manager CM 04/01/13 25A