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Santa-Aioniea
City Council Meeting: April 7, 2009
Agenda Item: j ~~
To: Mayor and.City Council
From: Eileen Fogarty, Director, Planning and Community Development
Subject: Award of Contract for Parking Management Services to Central Parking
Recommended Action
Staff recommends award of a 37-month contract with two one-year renewal options for
parking management services to Central Parking Corporation in the amount of
$4,558,738 for the first 13 months (June 2009 through June 2010) operations;
$5,408,738 .for FY 10-11 operations; $5,684,982 for FY 11-12 operations; $5,971,872
for FY 12-13 operations; and $6,277,966 for FY 13-14 operations. FY 10-11 and FY 11-
12 are to be negotiated by the City Manager subject to appropriation of funding by City
Council in future year operating budgets and FY 12-13 and FY 13-14 subject to
approval of one-year renewal options, to be negotiated by the City Manager subject to
appropriation of funding by City Council in future year operating budgets.
Executive Summary
This report recommends that the City Council authorize the City Manager to negotiate
and execute a 37-month contract with two one-year renewal options with Central
Parking Corporation to provide parking management services. The proposed scope of
services is substantially the same as that in place for the past eight years of
consolidated off-street parking operations, and includes a provision to extend the scope
to cover operation- of Santa. Monica Place (Parking Structures 7 and 8) and the
Annenberg Community Beach House in the future. The budget for the first 13 months of
services is not to exceed $4,558,738, with years two and three to be negotiated by the
City Manager subject to appropriation of funding by City Council in future year operating
budgets and years four and five subject to approval of one-year renewal options and to
be negotiated by the City Manager subject to appropriation of funding by City Council.
Background
The City of Santa Monica has operated its off-street parking services pursuant to a
consolidated management agreement since July 1, 2000. The current parking operator
is Parking Concepts, Incorporated (PCI). The operation includes approximately 10,000
parking spaces, generates more than $16 million in annual revenue and serves over 10
1
million parkers each year. The City of Santa Monica`s current parking management
services agreement will expire at 2:00 AM on June 1, 2009. The City has no renewal
option with PCI and therefore initiated a competitive bidding process. The contract will
cover the six downtown structures, Parking Structure 9, Civic Center Parking Structure
(CCPS), Main Library, beach and Pier parking lots, and the bicycle valet program;
including maintenance of all elevators and all parking access/revenue control equipment
(with the exception of Parking Structures 7 and 8, where Macerich will be responsible
for the elevator maintenance for those facilities).
Discussion
ContractoriConsultant Selection
Staff issued a Request for Proposal (RFP) in November 2008. A conference and site
tour was held for interested parties on December 1, 2008, with nine potential bidders
participating. A selection committee was formed to evaluate all submitted proposals.
The selection committee consisted of nine members from various. City departments,
including Finance, Police, Community and Cultural Services, and Transportation
Management Division, as well as a representative from the Bayside District Corporation,
Pier Restoration Corporation (PRC), City of Long Beach, and Macerich (owner of Santa
Monica Place). Staff received and reviewed five bid proposals; Parking Office staff
evaluated references and Finance Department staff evaluated information on financial
stability. During January and early February 2009, the selection committee reviewed
and ranked all submitted proposals..
The top three candidates were selected for oral interviews which were held in February.
Pursuant to SMMC 2.24.072, the selection panel ranked the bidders according to the
.bidder's price and fiscal responsibility; quality of services offered; the ability, capacity,
and skill of the bidder to provide services; the capacity of the bidder to provide the
service promptly, within the time specified, and without delay or interference; and the
character, integrity, reputation, judgmerit, training, experience, and efficiency of the
bidder.
2
The selection committee's top-ranked candidate is Central Parking Corporation, with
Modern Parking Inc. ranked second.
The list below highlights those qualifications exhibited by Central Parking Corporation:
• Largest national parking industry company
• Overall highest quality of services provided among interviewed firms
• Largest number of employees in southern California so they are best qualified to
immediately handle the size of the City's parking operation
• The City of Long Beach reported extreme satisfaction with Central Parking's
performance stating that they have "gone above and beyond the call of duty" and
"have reduced costs to meet operational needs."
• The human resources support provided by the firm (training, customer service).
was the best of the three interviewed firms
• The Central Parking management team exhibited the strongest experience and
ability to work with City staff
• Financially, Central Parking Corporation is the soundest of all interviewed firms
Financial Impacts & Budget Actions
The first-year (FY 09-10) contract cost for facilities already in operation is $3,714,200,
the same as budgeted for FY 08-09, reflecting the focus on managing and controlling
costs. Staff is requesting additional services in the amount of $484,108 for the first year
(FY 09-10) for the Annenberg Community Beach House and to operate Santa Monica
Place (assumed open -for public parking in December 2009) as an attended parking
facility. These additional expenses are expected to be offset by new gross revenue,
which is estimated to cover the contract costs for FY 09-10. Costs for the Annenberg
Community Beach House facility are also included in a separate enhancement. request
made for the entire facility.
The 13 month contract cost is $4,558,738 from June 2009 through June 2010. For
June 2009 costs, funds of $360,430 are available at account 01417.555010. For
FY2009-10 costs, appropriations will be included in the FY2009-10 Proposed Budget for
Council's review and .approval. The contract cost for the first month (June 2009) for
facilities already in operation is $352,463. Staff is requesting additional services in the
3
amount of $7,967 for the first month (June 2009) for enhanced services for the
Annenberg Community Beach House.
The addition of-the Santa Monica Place and Annenberg Community Beach House
facilities will require an expansion of the City's current Parking Office functions. This
expansion would require additional resources to be included in future year operating
budgets, which would be offset by increased revenues.
Total costs for the three-year contract plus two optional one-year extensions are not to
exceed those costs shown on the table below, subject to appropriation of funding by
City Council in future year operating budgets.
Estimated Parking Management Services Costs
Parking Facility First 13 Months.
FY 0$-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 13-14
(June '09)
PS 1 -6, 9, 10, $352,463 $3,714,200 $4,445,942 $4,664,860 $4,897,879 $5,146,249
Main St., CCPS,
Civic Aud.,
Library, Main St.,
Beach, & Pier
(Facilities already
in o eration
Annenberg $7,967 $101,979 $101,979 $113,926 $119,180 $124,735
Community
Beach House
PS 7-8 (SMP $0 $382,129 $860,817 $906,196 $954,813 $1,006,982
$360,430 $4,198,308
TOTAL $4,558,738 (First 13 Months) $5,408,738 $5,684,982 $5,971,872 $6;277,966
Staff has developed these cost estimates in coordination with Finance Department staff.
Comparison of Cost to Provide this Service In-House
If the City were to provide all parking management services described within the RFP,
the total estimated 13 month (June 2009 through June 2010) costs would be
approximately $7.2 million, approximately 58% more than the estimated parking
management services costs for Central Parking Corporation (See Attachment A).
4
Prepared by:
Sam Morrissey, Planning and Community Development
Approved:
NiE teen Fogarty, DG'ector,`Departr~~yt of
Planning and Community Development
5
Forwarded to Council:
Attachment A
Attachment No. Summary
Attachment A-1 This attachment presents the calculations of fringe benefits
and payroll burden for City employees. The difference
between the City's fringe benefits/payroll burden and the
recommended parking operator are then shown, with a
range of differences that vary based on the mix of
classifications of City staff compared.
Attachment A-2 This attachment presents a summary of the labor costs for
in-house vs. contracted services. These costs were
developed based on a detailed evaluation of hourly staffing
requirements at all City parking facilities identified in the
recommended contract. Also included in the attachment is a
summary of assumptions used in the in-house cost
comparison.
Attachment A-3 This attachment summarizes the labor and total cost
comparisons for in-house vs. contracted services. In
general, in-house costs average approximately 50% more
than contracted costs.
Attachment A-1
SANTA MONICA CITY EMPLOYEES SALARIES & BENEFITS COST ASSUMPTION:
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Fringe Benefits & Payroll Burtlen (% of Salaries) ~ 64% 52 % 56 % 56%
Central Parking Overall Pavroll Budget 13-Month (June 2009 through June 20101
Payroll ssblpa9
NeaXM1 B WeNare 12%
Workers LOmp 9.50% -
Peymll Ove111eaG (VadHOllSick) 5 80%
Payroll Taxes & BvMen 1181
BuFOen as % o(pavmll 00.9]%
Calculated Difference in Pavroll Burden /% Additional for City Pavroll)
Calculation Difference Notes
City (52%)-Central (38.9]%)= 13% <-Least d'Sference
City (56%)-Central (36.9700/0)= 17% <-AVeragedifference
CiN (64%1-Central (38.97%1= 25% <-Most tlifference
Note: Fractions muntletl to nearest wM1Ole pereenlaga f0]d play purposes only
Attachment A-2
Labor Cost Comparison Summary
Contracted Parking Operator (Central Parking) VS. City Operated Parking
at 13% Difference in Payroll8urden B Benefits
)perator Jun-09 Jui-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Total
ity of Santa Monica 398,821 410,554 398,642 410,554 Sfi1 ,583 403,W8 480,fi86 486,688 480,fi88 4fi6,]5] 691,136 499,509 499,4]1 5,fi62,49'~
enVal Paging COmoration 228,920 238,110 228,942 238,114 3D, Ot8 233,131 2]2,834 2]2,834 2]2,834 284,546 394,6]9 282,863 283,136 3,250,62'
Contracted Parking Operator (Central Parking) VS. City Operated Parking
at 17% Difference in Payroll8urden & Benefits
(perator Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-00 May-10 Jun-10 Total
ity of Santa Monica 408.48] 420,420 408, 508 420.420 5]5,788 412,893 492,744 492 .744 492,]44 4]8,813 ]08.683 511,616 511,5]] 5,823,83!
antral Parking GOrporation 228,920 236,114 228, 942 236.114 32],018 233,131 2]2,834 2]2, 834 2]2.634 264.548 394,fi]9 282,663 283,136 3,250.62!
ri=FiotrseiEas4~F.e-c¢edtny`bPtrerorCaseCkt _::'-c79.16°f>
Contracted Parking Operator (Central Parking) VS. City Operated Parking
at 25% Difference in Payroll Burden 8 Benefits
Operator Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-00 Feb-10 Mar-10 Apr-i0 May-10 Jun-10 Total
City cf Santa Monica 429,309 441,242 429,330 441 ,242 605,]08 433,608 518,188 518,168 518,188. 504,25] ]95,]15 53],186 53],127 6,122,141
Central Palling Corporation 228,920 238,114 228,942 236 ,114 327,018 233,131 2]2,834 2]2,630 2]2,834 284,546 394,6]9 282,883 283,138 3,250,829
ASSUmOGOnS
1. The in-house staffing plan mirrors the contractor's staffing tleplcymenl proposal
2. The contractor positions antl wage rates are assessed as an equivalent tothe in-house posftion and wage rates as below
Contractor Positions Central lassumed vear 11 In-House (assumetl Steo 11 In-house Positions
Parking Attentlant: $ 9.76 per hour $17.03 per hour Civic Event Attentlant I
POF Tech: $13.00 per hour $22.13 per hour Parking Meter Tech
Money Counter/ Bookkeeper: $12.00 per hour $21.07 per hour Staff III
Supervisor $12.35 per hour $30.36 per hour Civic Event Service Supervisor
Manager (Current PCI Manager) $26.56 per hour $39.68 per hour Civic Facility Supt.
3. Non-personnel costs such as vehicle, insurance, inspection antl other tluties remain the same as contract or estimate.
4. The operator's union contract supersetles City of Santa Monica Living Wage Ortlinance.
5. Payroll burden 8 benefits assumptions (See Payroll Burtlen 8 Benefits Analysis Sheet), summary below:
Summary - In-house cost analysis increases payroll burden 8 benefts cost by between 73% antl 26% in atldifion to conlracor proposal rate for overall payroll cost assumption
6. Parking Structures 7 8 8 (Santa Monica Place) begin operations December 2009.
7. 73-month operation (June 2009 through June 2010)
Attachment A-3
Comparison of In-House Labor Cost Estimates
Year One
Payroll Burtlen Vear One In- Contractor
Difference House Costs Costs
17.00% $5,823,839
25.00% $6.122.141
Difference Difference
(%) Notes
$2,431,869 74.8 % Payroll burden calculated as difference beM
$2,573,211 79.2 % Payroll burden calculated as average of lwo
Summary of Total 73-Month (June 2009 Through June 2010) Costs
Increase
over
Description Labor Cost Other Costs /a/ Total Cost Contractor
Centel Parking $3,250,629 $1,308,109 $4,558,738
CSM In-House-13%
Difference $5,682,498 $1,306,109 $6,990,607 53%
CSM In-House - 17
Difference $5,823,839 $1,308,109 $7,131,949 56%
CSM In-House-25%
Difference $6,122,141 $1,308,109 $7,430,251 63%
CSM In-House-Average $5,876,159 $1,308,109 $7,184,269 58% <-USetl in Staff Report
Notes
lal (outside auditor), liability insurance,
telephone/radio, utilities, supplies,
printing/tickets, repair & maintenance,
armored transport, elevator maintenance,
uniforms & laundry, Sentry maintenance,
\\CSmf511Planning and Community Development\TransportationManagement\USers\Sam.Morrissey\City of Santa Monica -Transportation Engineering\Parking Lol
Operations\In House Labor Cost Summary 030609