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SR-417-002 (3) PCD\SHARE\2003councilstaffreports\parkingoperatoraward.doc Council Meeting: June 10, 2003 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Extension of Parking Operator Contract with Standard Parking Introduction This report recommends that the City Council authorize the City Manager to exercise its option to extend, for one year, the contract with Standard Parking Corporation (#7733 CCS) for the operation of the City?s off-street parking facilities for an amount not to exceed $2,501,700. Background In 1999 the City Council directed staff to consolidate the management and operation of off-street parking facilities under the Planning and Community Development Department. A request for proposals was issued for a contract operator of the consolidated facilities, and Standard Parking Corporation (then known as APCOA/Standard Parking) was selected as the operator. Council awarded the three- year contract on June 13, 2000. Pursuant to the City?s Agreement with Standard Parking, there are two one-year options to renew the agreement and staff is recommending that the City exercise the first option and extend the agreement through June 30, 2004. 1 Discussion Consolidated management and operation of the City?s parking facilities was intended to increase accountability and allow coordination of operations, public information, permit sales and overall parking policy. The current operating contract includes measures that have to improved management of traffic flow in and out of facilities during peak periods, as well as revenue collection and auditing capability, and customer care. Significant improvements were realized in these areas, especially peak congestion conditions in the downtown facilities, revenue collection at the beach facilities and complaint reduction everywhere. The consolidated program operated by Standard Parking is expected to produce $11,422,700 in FY ?03- ?04, an increase of over $2.5 million annually (29%) over the revenues produced in the FY ?99-?00, the last year that the parking facilities were operated independently. Some of the service features that were included with the original operating agreement, including most of the parking host services, the full-time customer service representative position and additional attendants for peak periods in downtown have been eliminated over the past several years as the budget remained constant and the contractor?s costs, especially for health insurance, worker?s compensation and liability insurance rose significantly. The proposed contract amount for the year extension is approximately $40,000 higher to reflect a full-year operating cost for Structure #9 at 1136 Fourth Street. The previous contract amount included only one-half year operating cost for this facility. 2 In the proposed contract extension, the operator?s incentive fee is structured to encourage the operator to address the areas: auditing, financial reporting and management of staff schedules to limit overtime and overall pay. Budget/Financial Impact: Funding for this contract is provided in the fiscal year ?03-04 budget at account 01417.555010. The anticipated revenue from the consolidated parking program is $11,422,700 in FY ?03-?04. Of this total, the following amounts are for (costs to operate) parking facilities of various enterprise funds, and the budget is structured so that these funds will reimburse the General Fund for their respective shares of the cost. Beach Fund $756,239 Parking Authority Fund $188,053 Pier Fund $209,663 Recommendation: Authorize the City Manager to exercise the City?s option to extend for one year the contract to Standard Parking Corporation in the amount of $2,501,700. Prepared by: Suzanne Frick, Director of Planning and Community Development Lucy Dyke, Transportation Planning Manager 3