SR-CC/PA-2 (3)
CC/P/f-Z
FES ,,. 1995
RMD lPM 1M pkgopsel2
CouncIl Meetmg February 14, 1995 Santa Momca. Cahforma
TO CIty CounCIl and Parkmg Authonty
FROM CIty Staff
SUBJECT RecommendatIOn to Authonze the CIty Manager to NegotIate and Execute a
Contract WIth AMPCO System Parkmg for the OperatIOn and Management of
the SIX Downtovv11 Parkmg Structures
Introduction
ThIS report presents a summary of the process used to SOhClt and evaluate proposals for operatIOn
and management of the SIX dOVI'TIto'\TI parkmg structures and recommends that the CIty CouncIl
and Parkmg Authonty authonze the City Manager to negotIate and execute a contract ''''Ith
AIv1PCO System Parkmg
BackRround
The City of Santa MOllIca o,\-ns and operates the SIX parkmg structures wluch serve the Tlurd
Street Promenade and adjacent commercial area F or the past several years, extenSIve concerns
have been raIsed by the publIc. the Bayslde DIStrict CorporatIOn (BDC). and the Restaurants and
Merchants AssocIations regardmg Issues of customer servIce related to the publIc structures
Among concerns expressed have been servIce problems \\llth self-serVIce meters and change
machmes, frequency of parkmg CItatIOns bemg Issued, and adverse vehicle and personal safety
perceptIOns expenenced 111 non-attendant multi-level parkmg faCIlItIes
1 C.~/PA-2
FEB 1 4 1995
In an effort to evaluate these concerns, the CIty hIred the firm of WIlbur Smith AssocIates (WSA)
In May, 1993 to assess the feasIbIlIty of convertmg from self-servIce parkIng meters to a more
user compatIble revenue control system such as attendant parkmg Along wIth the \VIlbur SmIth
feaslblhty analYSIS, the firm of Meyer Mohaddes ASSOCIates conducted a parkmg utIlIzatIOn study
as part of the parkmg analysIs update for the BaYSIde DIStrIct whIch proVIdes utIlIzatIOn
charactenstics and duratIon patterns for the structures
The WSA study focused on a number of key Issues to determme If converSIOn to attendant
parkIng would be feaSIble mcludIng the phYSIcal hmltatlOns of the structures. eXIstIng traffic
conmtlOns on Second and Fourth Streets, an economIC analYSIS of the current meter operatIon
In comparIson to a new revenue control system. and assessIng parkmg customer needs and
expectatIOns CIty staff and \VSA worked closely WIth an Ad Hoc Parkmg COITl1mttee created
by the BDC Board that Included representatIves of the commumty and the Restaurants and
Merchants ASSOCIatIOns A set of shared ObjectIves emerged whIch became the baSIS of the
parkIng program that was adopted by the BaysIde Dlstnct Board on November 18. 1993 and by
the CIty Councd on December 14, 1993 These ObjectIves called for a parkIng program that
would
o emphaSIze convemence and customer serVIce.
o enhance vehIcle secunty and personal safety,
o serve as an mcentlve to attract shoppers and VISItors to the Bayslde Dlstnct.
o generally match the revenues generated by the eXlstmg metered system
2
- ----- -- - -- ----
Parkin~ Pro~ram
In December, 1993. the City Council approved converSIOn of the eXlstmg self-servIce parkmg
meter system to an attendant parkmg program \VhICh combmes the -'exIt pay" system of attendant
booths m each of the SIX structures WIth a central pay statIon (pay-on~foot) located on each of
the three blocks of the Thrrd Street Promenade The proposed system of access and revenue
controls ""ill be tled together by a central computer whIch vvlll be located m a parkmg office m
Parkmg Structure #5 Smce the eXlstmg structural deSIgn may constram the number of entry and
exIt lanes, the recommended layout is one entrance lane and t\\'o eXIt lanes Entry gates, tIcket
dIspensers, and card readers wIll be posltloned m the entry lane to allow for three vehIcles to
queue off the street mSIde the faCIlIty The second eXIt lane "vIll be for pre-paymg parkmg
patrons such as monthly permIts, lease permIts, and those who pay at the central pay statIOns on
the Promenade
A pnmary reason for addmg the central pay statIOns on the ThIrd Street Promenade IS to
mImmIze queumg at the eXIt lanes and to ensure that the system ""'Ill be .. user fuendly.t The
appeal of these machmes IS that It gIves the parkmg patron a chOIce about whether to pay m
advance and eXIt through the automated tIcket/card collector lane, or pay the attendant at the exIt
booth at the tIme of departure The central pay statIons are recommended for mstallatIOn on the
Promenade rather than the parkmg structures at thIS tIme smce they WIll be more convement to
pedestrIans and have hIgher VlSIbIlIty on the Promenade
3
As mdlcated above, the objectIves of the program seek to emphasIze customer serVIce and attract
shoppers and VISItors to the distnct whIle meetmg revenue levels generated by the current meter
system In determmmg the Imtial rate structure, several varIables 'were consIdered the hourly
rate durmg the day, the potentIal for a flat evenmg rate. and the montWy permIt rate The BDC
Ad Hoc CommIttee recommended that a flat evemng rate be Instituted whIch would allow VIsItors
to pay one rate after 6 00 p m for the entIre evenmg WSA developed eIghteen rate scenarIOS
that vaned the three rate components The rate structure approved by the CIty CounCIl keeps
the day rate low enough to encourage retaIl shoppers, lImIts the Increase for monthly permits to
a modest amount that WIll not adversely Impact employees and office tenants. and allows the flat
evenmg rate to be competItIve with rates charged by off-street facIlItIes m the area The
approved rate schedule IS as follows
Day: Two hours free parking ( 8:00 a.m. to 6:00 p.m.
$0.60 per 30 minutes thereafter)
Evening: $2.00 flat rate
Permits: $50 per month unreserved
As expenence IS gamed ,vIth thIs rate structure, further refinement may be necessary to msure
general adherence to the revenue neutrahty ObjectIve
Parking Operator Selection Process
As staff began the process of Implementmg the parkmg program, mcludIng deSIgn and
procurement ofthe revenue control eqUIpment and engIneenng of the structural changes necessary
4
to accommodate the system. It became clear that the key to a successful transItIon from a self
serVIce metered parkmg envIronment to an exIt pay system would be the selectIOn of a hIghly
qualIfied parkmg and operation management company to efficIently and systematIcally gUIde the
converSIOn. Smce many aspects of the converSIOn mark ne'v terrItory for the CIty, staff was
lookIng not only for a parkIng company who could manage the day-to-day parkIng operatIOns but
for a company to proVIde leadershIp and expertIse In the full range of transltlon Issues that are
crltlcal to publIc acceptance These mclude marketmg and pubbc educatIOn programs, evaluatIOn
and coordInatlon ofthe revenue and access control eqUIpment mstallatIOn, evaluatIOn of sIgnage
and graphIcs. and traffic flow analysIs
On October 17, 1994 the CIty Issued a Request for Proposals (RFP) for operahon and
management of the SIX parkIng structures The RFP was sent to mneteen (19) firms The lIst
of firms was complIed from the membershIp roster provIded by the Parkmg ASsocIatIOn of
CalIforma plus '\Tltten requests from firms seekmg an RFP A mandatory pre-proposal
conference ,vas held on October 26, 1994, twelve (12) firms attended Seven firms submItted
proposals on November 7, 1994
SInce the parkIng mdustry IS hIgWy competItIve and a number of firms are qualIfied. staff took
steps to ensure a ngorous and extenSIve selectIOn process The seven proposals were reVIewed
by a SelectIOn CommIttee WhIch mcluded the CIty'S Parkmg and Traffic EngIneer. ParkIng and
Traffic Engmeenng ASSOCIate. Asset Manager, ExecutIve Duector of the BaysIde DIstnct
CorporatlOn, and a parkmg management consultant The proposals were evaluated for overall
5
thoroughness and mSlght of the ImplementatIOn and operatIOnal plan. mcludmg transItIOn Issues,
the comparable expenence m areas of revenue and access control eqUlpment and multI-structure
systems, qualIficatlOns of key personnel. capabIlIty to provIde qualIty customer servIce,
reasonableness of proposed operatmg budget and adequacy of staffing levels, staff trailing and
superVISOry procedures, quahty of revenue collectlon and accountmg controls, and ablhty to
develop and manage a merchant advertlsmg program The SelectIon CommIttee mVIted four (4)
firms for mtervlews on November 21 and 22, 1994 AMPCO System Parkmg. ExecutIve Parkmg
Inc. Ace Parkmg. and General Parkmg of CalIfornIa The cost proposals of the four firms
mtervlewed ranged from $432,181 to $676,298
ThIS mItIal technIcal screenmg was followed by a second round of InterVIews on December 15.
1994 that broadened the perspectIve of the SelectIOn CommIttee WIth the addItlOn of the Resource
Management DIrector and the Chair of the BDC Operatlons and Mamtenance CommIttee A final
InterVIew \vas held on January 12, 1995 \\-lth the two top-rated firms after WhICh the SelectIOn
CommIttee reached a consensus and selected AMPCO System ParkIng Along WIth the
mtervIews, staff conducted reference checks whIch confirmed the favorable performance and
responSIveness of AMPCO
o Transition Plan: Although thc other firms arc respected and quahfied parkmg
operators. AMPCO System Parkmg was Judged to be the most quahfied firm to successfully lead
the transItIOn to the "exIt pay" system AMPCO has partICIpated m several transItIOns Involvmg
sIgmficant modIficatIOns of the parkmg enVlfonment, namely free parkmg to paid parkmg These
6
mclude the Beverly Center and Koll busmess park projects m Newport Beach and Irvme
AMPCO has proposed a SImIlar approach of planmng and analYSIS and contmuous
commumcation WIth the retailers, office tenants. and the parkmg publIc through newsletters.
presentatlOns, and a presence m the structures greetmg customers and ans\venng questlOns even
before the eqUIpment IS put mto operatlOn
o Experience: AMPCO demonstrated the greatest level of comparable expenence m
areas that are SImIlar m charactenstlcs to the dO\\TItO\\TI structures revenue and access control
eqUIpment, mulu-structure systems, and multIple use facilItIes SpecIfic prOjects mclude John
\Vayne AIrport. the Beverly Center, PIer 39. and the Embarcadero Center m San FranCISCO Of
partIcular Importance IS AMPCO's direct expenence WIth pay-an-foot machmes at John \Vayne
AIrport As descnbed earl1er. pay-on-foot IS cntlcal to the effiCIent eXIting of the structures
Smce It IS a relatIvely new technology. publIc educatIOn and mgh VISlblhty Will be key to Its
usage by parkmg patrons AMPCO Idenufied the Importance of the pay-on-foot component and
suggested alternatIve ways to gam pubhc acceptance of the central caslnenng concept If the
pay-on-foot machInes are not all In place at the tIme of converSIOn
o Adequate Staffing: AMPCO demonstrated an understandIng of the challenges of
operatmg a multi-structure system by Its proposed staffing levels The professlOnal parkmg
consultant on the SelectlOn CommIttee analyzed the proposed staffing levels of each of the firms
and determIned that the phYSical dIstance among the SIX structures, the momtormg reqUIrements
of the revenue and access control eqUIpment, the traffic flow conSIderatIOns at the entry and eXIt
7
lanes, as well as the pubhc demands on the parkmg office would reqmre that both supervIsory
staff and others be aVailable to Circulate throughout the SIX structures on a regular basIs Most
of the firms proposed sllll11ar staffing levels for the cashiers m the booths but there was a marked
dIfference among the proposed level of staffing for supervIsors, utlhty/rehefworkers. office staff,
and traffic directors Smce staffing IS the pnmary cost component of the proposed operatmg
budget, the hIgher level of staffmg recommended by AMPCQ IS reflected III a hIgher cost
proposal for AMPCO compared to some of the other firms
o Employee Development and Customer Service: AMPCO's Employee
Development programs stress the Importance of customer serVIce Both the proposal and
mternews mdIcated a strong commItment to trammg and employee relatIOns AddItIOnally,
AMPCO has a broad base of employees from whIch to draw both for staffing up the structures
Iffitmlly and also for supplementmg staffing levels when needed
o Revenue Control and Accounting: AMPCQ's methods for collecting. controlhng. and
accountmg for revenue and expenses were thoroughly detailed and the proposal was the most
responSIve m provIdmg all the forms and transactIOns that were reqUIred as part of the submittal
Terms of the Contract
AMPCO System Parkmg wIll manage and operate the parkmg structures and pay-an-foot statIOns
on behalf of the CIty and m accordance Vv'lth the hours of operatIOn and rates determined by the
City AMPCO "'111 work 'with the access and revenue control eqUIpment manufacturer to brmg
8
-- - - -
the SIX structures on lme and facIlItate the transItIon from metered to "exIt pay'l system The
firm wIll be responsible for performmg dady preventIve mamtenance and regular mmor
mamtenance of the revenue control eqUIpment General mamtenance of the parkmg structures
Will remaIn the responsIbIlIty of the City but AMPCO Will be reqmred to Inspect the structures
and report elevators not operatmg properly, graffitI, exceSSIve trash, or any hazardous condItiOn
to the CIty AMPCO \'1'111 ensure that all parkmg booths and surroundmg area be clean at all
tImes They Will work \Vlth the Santa MOllica PolIce Department to establIsh procedmes for
employees to follow when any SUSpiCiOUS or unusual actIVitieS are notIced or reported AlvfPCO
WIll be responsIble for mamtaImng traffic flmv withm the SIX structures
A.V1PCO \\"111 be responsIble for the sale of monthly parkmg spaces and the Issuance of key cards
to monthly customers The firm \\'111 develop. coordmate and admmister a tIcket advertIsmg
program m consultatIon \vlth the BDC and the Restaurant and Merchants ASSOCIatiOns AtvfPCO
WIll proVIde daily reports mcludIng cashier ShIft reports, car counts, tIcket recap, lIcense plate
mventory, and summary reports Monthly reports \Vlll Include total gross revenues, total tlckets,
number of monthly car keys sold, name of person and address of busmess, number of monthly
card keys canceled, number of transactlons at pay-an-foot stations and average tIcket value.
detaIled descnptlon of unusual occurrences, summary of all complamts and chums In excess of
$25 and descnptlOn of steps taken to correct the SItuatiOn
9
---- ----
Project Implementation
As the CIty CouncIl IS aware, there has been a delay m the procurement of the revenue control
eqUIpment On January 10, 1995, the CouncIl rejected all bIds and authorIzed staff to proceed
with a Request for Proposal process for the equIpment Staff IS recommendmg selection of the
operator at thIS tIme to gam the benefit of AMPCO's technIcal expertIse and expenence dunng
all the steps the City "'1,'111 follow to implement the program. from evaluatIOn of the eqUlpment
proposals and layout of entry and exit lanes, to the mstallatIon schedule and eqUIpment testrng
ThIS WIll also allow suffiCIent lead tIme for the operator to ImtIate the marketmg and publIc
educatIon campaIgns. estabhsh the merchant advertIsmg program. set up the parkmg office. and
advIse the CIty on appropnate sIgnage The antIcIpated start up date for the converSIOn IS June,
1995 when the structures \vlll be brought on hne mcrementally
Budget/Financial Impact
The proposed operatmg budget for A.MPCO for the first year 15 $568.000 ThIS mdudes all
staffing and payroll costs, taxes, benefits. msurance, operatmg expenses, and a management fee
($3,000 per month) For each year that the contract contmues, the budget \\0'111 be reviewed and
an annual cap establIshed As a point of companson, WSA had mltlally estimated a parkmg
operatIOn contract at $546,000 per year wluch mc1uded a ReSIdent Manager and staffing of the
attendant booths The \VSA prOjectIOn dId not mclude the addItional level of supervISory and
utIhty staff that AMPCQ's proposal prOVIdes
10
-- ----
AMPCO wIll deposit all gross revenues, mcludlllg dally and monthly penmt fees wIth the CIty
Treasurer on a dally basIs All gross revenue receIved by AMPCO Immediately becomes the
property of the City AMPCO '''Ill be reImbursed by the City for documented operatlllg expenses
wluch shall not exceed the annual cap
Slllce the parkmg structures were financed WIth tax exempt bonds. the parklllg management
contract must meet the current IRS code to ensure the bonds contmue to qualIfy for
tax-exemptIOn Staff revIewed these reqUIrements WIth the firm of O'Melveny & Myers to
structure the method of compensatIOn and the term Under the proposed management fee method
of compensatIOn, the term cannot exceed five years. mc1udmg optIOns. and the CIty must have
the unlImited abIlIty to cancel after the thIrd year upon reasonable notIce The proposed term of
the contract ,nth AMPCO IS for a one (1) year term WIth hvo (2) two (2) year options. WIth the
Cny reservmg the nght to cancel WIthout cause or penalty after the thud year
At the tIme the parkmg program was approved by the CIty CounCIl, the financial analysIs
mdlcated a net revenue loss of approxImately $300,000 as compared to 1993-94 prOjectIOns under
the metered system Updated projectIons now mdlcate that the net revenue shortfall w1l1 be
approxImately $600,000 ThIS IS pnmarlly a result of an Increase In the number of cltatlOns
bemg paId as well as an increase m the average cItatIOn fee prod. Although the revenue neutral
objectIve IS not projected to be met at the outset, staff recommends proceedmg WIth the
converSlOn and revlewmg the rate schedule once the new system IS underway and actual
performance may be measured It IS expected that the two hour free parkmg WIll serve as an
11
InCentIve to retaIl shoppers In addltlOn, the Improvements m customer service and management
of the structures are expected to result m hIgher usage
Smce the conversIOn ,\111 begIn m June, 1995, revenue projectIons WIll be reflected m the
1995-96 budget LIkewIse, the contractual cost for the operator WIll also be reflected m the
1995-96 budget smce there IS no charge to the City for the serVIces of the operator dunng the
transItIon penod whIch '\,111 cover the balance of tills fiscal year
Recommendation
Staff respectfully recommends that the City CouncIl and Parkmg Authority authonze the CIty
Ylanager to negotIate and execute a contract wIth AMPCO System Parkmg for management and
operatlon of the dO'\lltO\\ll parkmg structures In an amount not to exceed $568.000 1ll the first
year
Prepared by Jeff MathIeu. DIrector. Resource Management Department
JUdIth Meister. Asset Mgr , Resource Management Department
Suzanne Fnck, Director, Planmng and Commumty Development
Ron FuchlWakl, City Parkmg and Traffic Engmeer
Doug BIagI, AssocIate Traffic Engmeer
12
--