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.
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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.
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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
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