SR-417-010 (16)
F:\PCD\parkingoperator.doc Santa Monica, California
Council Meeting June 22, 2004
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Award of Contract for Downtown, Pier and Beach Parking
Operations to Parking Concepts, Inc.
Introduction
This report recommends award of a contract for a consolidated downtown, pier and
beach parking operation to Parking Concepts, Inc. The proposed scope of services is
substantially the same as that in place for the past 3 1/2 years of consolidated off-street
parking operations, and includes provision to extend the scope to cover operation of
Santa Monica Place and the Main Library in the future.
Background
The City of Santa Monica has operated its off?street parking services pursuant to a
consolidated management contract since July 1, 2000. The operation includes over
11,000 parking spaces, generates over $11 million in annual revenue and serves over
10 million parkers each year. While the City has the option to renew the agreement
with the current operator for one additional year, staff elected to initiate a procurement
process in order to encourage competitive pricing, especially in consideration of
upcoming expansion of the scope of services to include parking at the new Main
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Library and institution of attendant parking in the structures at Santa Monica Place.
Staff from Finance, Resource Management, Community and Cultural Services,
Environmental and Public Works, the Pier Restoration Corporation, the Bayside District
Corporation, Macerich (owner of Santa Monica Place), and The City of Pasadena were
consulted by Planning and Community Development staff in the preparation of the
Request for Proposals as well as in evaluation of responses. The competitive process
resulted in the opportunity to contract for service holding ?04-?05 costs at the ?03-?04
price.
Discussion
Operator Selection Process
The Request for Proposals included a scope of work similar to that which is currently in
place at the beach, pier and downtown, but includes provisions to allow the operation
of attendant parking at the Santa Monica Place Strucures and the Main Library when it
is completed.
Eight firms attended a pre-bid conference and tour; four submitted proposals and a ten-
member panel interviewed the four firms. Parking Concepts received the highest
rating from panel members, who were charged with evaluating operations plans, budget
plans, levels of on and off-site supervision, price and the oral interview. Parking Office
staff evaluated references and the Finance Department evaluated information on
financial stability. Parking Concepts provided references from similar operations
including Los Angeles County Department of Beaches and Harbors, City of Hermosa
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Beach, and City of Glendale. Parking Office staff visited those facilities and contacted
the references. All had high recommendations about Parking Concepts. Parking
Concepts is active in the Southern California public sector market, effectively serving
the City of Los Angeles, Department of Transportation, City of Los Angeles, Port of Los
Angeles, City of Glendale, County of Orange, John Wayne Airport and City of Santa
Monica ? Big Blue Bus. Parking Concepts exhibited a solid understanding of the
challenges faced by the City?s parking operations and impressed the panel with its
commitment to customer service and financial accountability. PCI is unionized and
provides employees with negotiated wages and benefits.
Scope of Services
The parking operator is charged with operating the City?s public parking facilities
according to the highest standards of customer service. The operator is required to
manage parking operations, collect and deposit revenue, coordinate all work in the
facilities and communicate effectively with the users of the facilities including visitors,
merchants whose customers and employees use the facilities, as well as the Bayside
District Corporation and the Pier Restoration Corporation.
The contract includes management of over 11,000 parking spaces in the downtown,
and at the beach, pier and library. Although all facilities are managed under one
contract, the operator must account separately for revenues, costs and staffing for
downtown structures, beach lots, pier lot and library structure. The term of the contract
begins July 1, 2004, when the current contract expires, but includes only 34 months, so
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that the end of the third ?year? occurs at May 1, 2007. This modification allows any
future change of operator to be scheduled in advance of the summer, a peak season
for the City at the beach as well as in the downtown. The proposal from PCI includes
costs for operating Santa Monica Place as an attended parking facility with rates and
hours the same as other downtown garages, in the event the City Council and Macerich
elect to implement this type of rate structure and operation at Santa Monica Place.
Budget/Financial Impact:
The contract budget proposed is the same as fiscal year ?03-?04, reflecting the focus
on managing and controlling costs. PCI?s budget is leaner in terms of management
oversight than the current contractors?, especially off-site management services. This
level of oversight is acceptable, given the commitment of City resources to the
management and oversight of the facilities. The year one contract cost is $2,446,700.
A $30,000 reduction from the ?03-?04 budget reflects a transfer of funds from the
contractor?s budget to the City budget as the City will contract for third party audit of the
contractor. The cost includes a full year of operation for the downtown structures and
beach and pier lots, including maintenance of all elevators and all parking
access/revenue control equipment. The first year cost does not include the Santa
Monica Place and Library Structures, but Santa Monica Place can be added through a
simple contract modification under the terms proposed if a determination is made to do
so.
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Current Parking Operations Cost, Excluding City Maintenance Cost
Structures $1,322,746
Beaches $756,238
Pier $209,663
Parking Authority $188,053
Total $2,446,700
Proposed Operator Contract (year one) $2,446,700
Recommendation:
It is recommended that the City Council award a three-year agreement with Parking
Concepts, Inc. The first year costs will be $2,446,700; future year costs will be
appropriated in future year operating budgets.
Prepared By: Suzanne Frick, Director of Planning and Community Development
Lucy Dyke, Transportation Planning Manager
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