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City council Meeting: July 13, 1993
JUL 1 J ~993
Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize the city Manager to
Negotiate and Execute an Amended Agreement with
Executive Parking, Inc. to Manage and Operate
Fifteen Beach Parking Lots on a Short-term, Month-
to-Month Basis
l:NTRODVC'J;' I ON
This report recommends that the city council authorize the City
Manager to negotiate and execute an amended agreement with
Executi ve Parking, Inc. ( EPI ) to manage and operate the City's
fifteen beach parking lots on a short-term, month-to-month basis,
until the City concludes its formal bidding process for the
selection of the operator for the next contract period.
BACKGROUND
In May of 1988, the city Council approved the selection of EPI to
assume the management and operation of the city's beach parking
lots to begin on July 1 of that year. EPI was selected through a
competitive bidding process. Since that time, EPI has continued
to operate these lots under a management agreement, as amended,
with the city. This agreement provided for operations through
June 30, 1993.
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DISCUSSION
City staff is currently preparing for a competitive bidding
process to select an operator to continue these operations on a
long-term basis. Selection of the operator should be complete no
later than December, 1993. However, given the approval time
needed by the State Department of Recreation and Parks and the
need for smooth operations during the peak summer months, it is
necessary to extend the services of EPI, on a short-term,
month-to-month basis in order to ensure that no disruption of
service to beach visitors occurs.
The following is a summary of the proposed changes to the terms
and conditions of the current agreement with EPI:
(1) EPI will continue to provide all parking services for 15
beach parking facilities on a short-term, month-to-month basis.
(2) compensation to the City will be based on a specified minimum
payment over the term of the agreement or specified percentages
of monthly gross revenues whichever is higher. For six months of
operation, this guaranteed minimum payment would total $1.166
million.
(3) In addition, the City shall receive a percentage of gross
revenues in excess of a specified baseline revenue amount.
Again, for six months of operation, the City would receive 85% of
all revenues in excess of $1.573 million up to $1.813 million and
100% of all revenues exceeding $1.813 million.
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(4) Downward adjustments to the amount due the city will be
approved only if the City closes the beach parking lots (e.g.,
due to emergencies that involve the health and safety of beach
visi tors) .
(5) The month-to-month agreement may be terminated by either
party upon 30 days written notice.
(6) All other terms and conditions of the current agreement will
remain the same.
BUDGET/FINANCIAL IMPACT
Budgeted projections for FY 1993-94 beach parking revenues total
$2.5 million.
Based on the terms summari zed above, the Ci ty
should realize this budgeted revenue. Therefore, no budgetary or
fiscal actions are required at this time.
RECOl'tM:,ENDATION
City staff recommends that the City Council authorize the City
Manager to negotiate and execute an amended agreement with
Executi ve Parking, Inc. to operate fifteen City beach parking
lots, on a short-term, month-to-month basis.
Prepared by: Susan Mccarthy, Director
Barbara stinchfield, community and Neighborhood
services Manager
Department of community & cultural Services
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