Honorable Mayor and Members of the City Council

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1 Office of the City Manager CONSENT CALENDAR May 31, 2011 To: From: Honorable Mayor and Members of the City Council Phil Kamlarz, City Manager Submitted by: Andrew Clough, Acting Director, Public Works Subject: Contracts: LAZ Parking for Off-Street Parking Facilities Management and Amano McGann Inc. for Equipment Warranty Agreement RECOMMENDATION Adopt two Resolutions: 1. Authorizing the City Manager to execute a 5-year agreement with LAZ Parking, a parking management company, to provide management services, acquisition and installation of a Parking Access and Revenue Control System (PARCS) for the Center Street, Telegraph Channing, and Oxford Garages effective July 1, 2011 through June 30, 2016 for an amount not to exceed $5,542,282; and with an option to extend the contract for two additional 1-year periods through June 30, 2018 for an amount not to exceed $2,130,194, for a total contract not to exceed $7,672, Authorizing the City Manager to execute a 4-year warranty contract with Amano McGann, Inc., PARCS equipment manufacturer, for an amount not to exceed $198,804 effective one year from the date of PARCS installation. SUMMARY Based on the selection panel s assessment of the parking facility management proposals, staff recommends LAZ Parking as the new parking operator to manage the City s three parking facilities. The monthly management fee includes all operational services, including acquisition and installation of new PARCS equipment in each facility. Staff expects improvement in the reporting efficiencies of the garage revenue control operations with the installation and oversight of the PARCS equipment. Facility maintenance and customer services are also expected to improve under LAZ s management. Currently, all three facilities operate with manual cashiering and three different revenue equipment systems, which generate reports in different formats and need to be manually compiled. In addition, occupancy data provided from the facilities has been inconsistent or non-existent. LAZ will install the new PARCS equipment, which will automate garage management, monitored from a central control office at the Telegraph 2180 Milvia Street, Berkeley, CA Tel: (510) TDD: (510) Fax: (510) manager@cityofberkeley.info Website:

2 Channing Garage via video cameras and intercom systems. The PARCS system will also provide stricter controls for revenue reporting. FISCAL IMPACTS OF RECOMMENDATION There are two parts to the fiscal impacts: the management agreement and the 4-year extended warranty for the PARCS equipment after the initial year of installation. LAZ Parking Management Agreement The expense for the initial 5-year period of the management contract is an amount not to exceed $5,542,282 and will be paid out of operating revenues in the Off-Street Parking Fund. If the City exercises the option to extend the contract for additional 1-year periods: a 1-year extension in FY 2017 would be an expense of $1,049,357; a 2 nd 1-year extension in FY 2018 would be $1,080,838, for a 2-year total amount not to exceed $2,130, 194, and for a total amount over the maximum 7-year period not to exceed $7,672,476. The annual costs are indexed by 3%. The Contract Management System number for this contract is AXJQJ. The summary below shows the total 5-year expense by facility, with garage management fee funds to be budgeted each fiscal year in the Off-Street Parking Fund (835) and the 1-time PARCS equipment cost to be budgeted in the BJPFA Lease Revenue Bonds Fund (640) in FY2012: Telegraph Channing Garage..( )... $2,225,716, Center Street Garage...( )... $2,173,955 Oxford Garage ( ) $512,432 Telegraph Channing Garage..( )... $242,817 Center Street Garage...( )... $221,949 Oxford Garage ( ) $165,413 TOTAL $5,542,282 LAZ Operating Expenses: Management Fee (5-Years) + PARCS Equipment (1-Time) Location & Expense Year 1 FY12 Year 2 FY13 Year 3 FY14 Year 4 FY15 Year 5 FY16 Total T-C Mgt Fee $458,337 $422,451 $435,125 $448,179 $461,624 $2,225,716 T-C PARCS $242,817 $242,817 T-C TOTAL $701,154 $422,451 $435,125 $448,179 $461,624 $2,468,533 Center Mgt Fee $447,678 $412,627 $425,006 $437,756 $450,888 $2,173,955 Center PARCS $221,949 $221,949 Center TOTAL $669,627 $412,627 $425,006 $437,756 $450,888 $2,395,904 Oxford Mgt Fee $105,524 $97,262 $100,180 $103,185 $106,281 $512,432 Page 2

3 Oxford PARCS $165,413 $165,413 Oxford TOTAL $270,937 $97,262 $100,180 $103,185 $106,281 $677,845 Annual Totals $1,641,718 $932,340 $960,311 $989,120 $1,018,793 $5,542,282 During year one, the three parking facilities will achieve new maintenance standards that include: freshly painted ramp walls, parking stalls, and key ceiling locations to improve visibility and openness; new non-slip, textured floor paint in elevator lobbies, and improved graphics for all levels at elevators and stair landings. Costs for meeting and maintaining these standards, along with staffing, are included in the management fee operating expenses noted above. Years 3 through 5 reflect annual indexing by 3%. It is expected that new PARCS equipment will be installed and operational at all three facilities within the first 8 months of the agreement, which will allow automation of garage operations. A central communication center will be installed at the Telegraph Channing facility with intercom, camera and video feed to assist patrons at each garage entrance, exit, and pay-on-foot machine. Uniformed security personnel will be physically present at all garages, and parking ambassadors will rove facilities to assist customers, answer questions, and make minor equipment repairs if needed. The total 1-time cost for the purchase and installation of the PARCS equipment (for all three facilities) is $630,179 and will be appropriated from fund balance in FY 2012 in addition to the $1,011,539 for the management fee. This 1-time equipment cost includes the first year of quarterly preventative maintenance servicing and parts. PARCS Warranty (extended) Over a 4-year period, a warranty agreement for the PARCS equipment will cost the City an amount not to exceed $198,804 to be paid out of operating revenues in the Off-Street Parking Fund. The Contract Management System number for this contract is WIM1F. A summary of the total 4-year expense by facility, with funds budgeted in the Off-Street Parking Fund in each fiscal year is: Telegraph Channing Garage...( )... $66,268 Center Street Garage...( )... $66,268 Oxford Garage ( ) $66,268 TOTAL $198,804 Amano McGann PARCS Equipment Warranty Expense (4-Year Term) Location Year 1 FY13 Year 2 FY14 Year 3 FY15 Year 4 FY16 Total Tele-Channing $14,224 $15,709 $17,360 $18,975 $66,268 Center Street $14,224 $15,709 $17,360 $18,975 $66,268 Oxford Street $14,224 $15,709 $17,360 $18,975 $66,268 Annual Totals $42,671 $47,124 $52,082 $56,926 $198,804 Page 3

4 CURRENT SITUATION AND ITS EFFECTS The City s current contract with Parking Concepts, Inc. (PCI) for managing our off-street parking garages will expire on June 30, PCI provides management, promotional services and, security; and custodial and limited maintenance services for the Telegraph Channing, Center Street and Oxford Parking Garages. The need for specific contractual changes was identified by staff and issued as part of the new Garage Management RFP, which: 1. Includes an all-inclusive monthly fee contract as opposed to a cost-plus contract. In an all-inclusive contract, the Garage Operator is paid a monthly flat fee and is responsible for paying all garage facility operational expenses. A cost-plus contract reimburses the Garage Operator for garage facility operating expenses and additionally pays the Operator a monthly management fee. Moving to an all inclusive contract is a recommendation from the Auditor s Office to reduce contract costs. 2. Requires that Operator acquire and install a uniform Parking Access Revenue Control System in each of the three parking facilities, for which the City will be invoiced and take title once the equipment is successfully operational and tested. 3. Requires that all non-supervisory parking facility staff wear uniforms and name tags while at work. 4. Requires security staff. 5. Increases the level of routine facility maintenance such as steam cleaning and line striping and requires a schedule for services, to be performed on a daily, quarterly and annual basis. Additional services include, and are not limited to, the following: The selected contractor would manage and operate the City s three off-street parking facilities; be responsible for collecting and transferring daily and monthly parking fees; validate coupon sales and card key deposits to the City s authorized armored car transporter; provide cleaning and security services; and perform light maintenance tasks for the benefit and convenience of the facilities patrons. The selected contractor will manage and operate the facilities in an efficient, competent, expeditious, and courteous manner in accordance with the rates and charges, policies, rules, regulations and operational procedures established or approved from time to time by the City. Prior to the new contract execution date, LAZ will identify Transition Team members, each with clearly defined assignments. Daily and weekly meetings will be held with Page 4

5 designated City staff for transition briefings, such as preparation for, and coordination with, City functions, communication with City entities, and other issues potentially affecting or affected by the transition such as special event planning, monthly parking notifications, staffing and maintenance. Specific planning for the PARCS implementation will take place after the LAZ contract is executed. This will provide some lead time for the new operator to more fully acquaint themselves with the Berkeley garage operations and allow some fine tuning of the new PARCS equipment order. BACKGROUND The Off-Street Parking Facility Management RFP was issued on December 17, 2010 and six proposals were received on the January 27, 2011 due date. Staff representatives from our Public Works Department, San Francisco Municipal Transportation Agency (SFMTA), and the City of San Rafael participated in the review and evaluation process. Evaluation criteria were based on qualifying experience, operational planning, garage operating costs, PARCS costs, and references. During the evaluation process, the panelists analyzed the merits of all proposals in each of these categories and the recommended PARCS equipment. LAZ Parking received the highest total score of the six proposals submitted. Founded over 30 years ago, LAZ is the 4 th largest parking company in the United States and manages several large accounts throughout the Country. While relatively new to the Bay Area, LAZ has a strong, experienced management team working in and committed to the West Coast, and has proposed a very knowledgeable, experienced on-site manager to manage the Berkeley parking Facilities. LAZ scored particularly well in the evaluation criteria categories of qualifying experience and management approach in part due to these factors. After the written proposals were rated, an oral committee, comprised of both internal and external members, interviewed the three (3) top-scoring proposers. The committee concluded that the City would be well- served having LAZ Parking as its Garage Operator. From the six proposals received, Garage Operator recommendations included five (5) different PARCS equipment companies. Staff conducted site visits to view and use the proposed equipment, scheduled interviews with client references, read operating manuals, and reviewed equipment features with our Information Technology staff. Amano McGann received higher rankings than other equipment vendors from client references regarding equipment durability, software reporting, maintenance response times, and costs for replacement parts (specifically gate arm replacements). Another attractive equipment feature on the Amano Pay-On-Foot machines is a large easy-toread color display screen (15 flat screen) with lighted guidance system that leads users through transactions enhanced with screen prompts and voice announcements to assist Page 5

6 users with transactions/payment information. LAZ provided two PARCS equipment recommendations in their proposal which included Amano McGann. Based on the RFP specifications, LAZ will be responsible for ordering, installing, and ensuring that the PARCS is fully operational within a four-month schedule. Once the equipment is installed and fully operational for public use, LAZ will invoice the City for the full cost (100%) of the PARCS equipment purchase. The City will make a one-time payment within 30-days from receipt of the invoice and own the PARCS equipment outright. PARCS installation costs will be handled separately. Documentation of pre-specified equipment performance testing is required for the PARCS hardware and software. Once this is completed and the City is satisfied, LAZ will invoice the City for the PARCS installation costs. Staff anticipates completion no later than March 1, A Five-Year Forecast Analysis of Parking Operations with revenues remaining flat, support the selection of LAZ Parking. If parking revenues were to decrease for any reason, our coverage ratios may not support higher operating expenses submitted by some of the other proposers. The LAZ cost proposal for each of the next five years is low enough to allow the City to maintain the required garage revenue to expense ratio to retain a favorable bond rating. LAZ possesses the best combination of services and costs to manage our Facilities. RATIONALE FOR RECOMMENDATION LAZ possesses experience, knowledge and technical expertise through various client accounts that they manage, and their participation in several PARCS implementation projects. In their proposal, the company has recommended that the final selection of specific PARCS equipment occur only after the City and LAZ have an opportunity to review and refine equipment selection estimates based on our needs for each of the properties. While the LAZ cost proposal was neither the lowest nor highest of those received, City staff and the other selection panelists strongly believe that this company provides the best value and service for management of the City s off-street parking garages. ALTERNATIVE ACTIONS CONSIDERED No alternative actions were considered. City staff operated the City s parking facilities over 15 years ago. Currently, City staff is neither trained, experienced nor available to operate off-street parking facilities, additionally; staffing costs would be much greater for city staff than for an experienced, trained, professional independent contractor. Page 6

7 CONTACT PERSON Farid Javandel, Transportation Manager, Public Works, Danette Perry, Parking Services Manager, Public Works, Attachments: 1: Resolution: LAZ 2: Resolution: Amano McGann Inc. Page 7

8 RESOLUTION NO. ##,###-N.S. CONTRACT: LAZ PARKING FOR ALL INCLUSIVE MANAGEMENT SERVICES TO CENTER STREET GARAGE, TELEGRAPH CHANNING GARAGE, AND OXFORD GARAGE WHEREAS, the City s contract with Parking Concepts, Inc. (PCI) for managing our offstreet parking garages will expire June 30, 2011; and WHEREAS, the City initiated a request for Proposals (Specification No C- REBID) that was distributed to over 12 parking management providers and posted on the City s Website on December 17, 2010,and six bids were received by the January 27, 2011 deadline; and WHEREAS, after careful analysis, interviews, and reference checks a proposal has been selected which was ranked most favorable by staff; and WHEREAS, LAZ submitted a thorough, well-documented proposal for providing the requested parking management services; and WHEREAS, the total 5-year management cost by facility is as follows, and funds will be budgeted in the Off-Street Parking Fund each fiscal year: Telegraph Channing Garage $2,225,716 ( ); Center Street Garage $2,173,955 ( ); and Oxford Garage $512,432 ( ); and WHEREAS, the 1-time PARCS equipment cost by facility is to be budgeted in the BJPFA Lease Revenue Bonds Fund (640) in FY2012 as follows: Telegraph Channing Garage $242,817 ( ); Center Street Garage $221,949 ( ); and Oxford Garage $165,413 ( ). NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the City Manager is authorized to execute a five-year contract and any amendments (CMS No. AXJQJ) with LAZ Parking to provide all-inclusive management services for Center Street Garage, Telegraph Channing Garage and Mall, and Oxford Garage from July 1, 2011 through June 30, 2016 for an amount not to exceed $5,542,282, and include options to extend for two additional one-year periods for an amount not to exceed $2,130,194, for a total amount not to exceed $7,672,476.

9 RESOLUTION NO. ##,###-N.S. CONTRACT: AMANO MCGANN INC. FOR PARKING REVENUE EQUIPMENT MAINTENANCE WARRANTY SERVICES WHEREAS, City staff is proposing LAZ Parking as the new parking operator to manage the City s three parking facilities; and WHEREAS, LAZ as the parking operator is required to acquire and install a uniform Parking Access Revenue Control System (PARCS) in each of the three parking facilities, for which the City will be invoiced and take title once the equipment is successfully operational and tested; and WHEREAS, a total one-time cost for the purchase and installation of the PARCS equipment (includes all three facilities) is $630,179 and includes one year of quarterly preventative maintenance servicing and parts; and WHEREAS, over a 4-year period, a warranty agreement for the PARCS equipment will cost the City an amount not to exceed $198,804 to be paid out of operating revenues in the Off-Street Parking Fund; and WHEREAS, the total 4-year Parking Access Revenue Control System (PARCS) expense by facility is as follows, and funds will be budgeted in the Off-Street Parking Fund each fiscal year: Telegraph Channing Garage $66,268 ( ); Center Street Garage $66,268 ( ); and Oxford Garage $66,268 ( ). NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley that the City Manager is authorized to execute a four-year contract and any amendments (CMS No. WIM1F) with Amano McGann Inc., to provide continued maintenance operation services for new Amano McGann Parking Access and Revenue Control System (PARCS) equipment for a total amount not to exceed $198,804 effective one-year after equipment installation.

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