REPORT TO THE CITY COUNCIL
October 30, 2014
FROM: RENENA SMITH, Assistant City Manager
Mayor/City Manager Department
SUBJECT
Title
Approve the selection of, and award a contract to, SP Plus Corporation to provide Parking Facilities Management Services in Fresno
Body
RECOMMENDATION
Staff recommends that the Council approve the selection of, and award a contract to, SP Plus Corporation to provide professional Parking Facilities Management Services at City-owned Downtown parking lots and garages, and at various park sites, in the amount of $6,066,056 for the first five-year term. In addition to the initial five-year term, the proposed contract includes five (5) one-year optional extensions. Staff also recommends that the City Manager, in conjunction with the City Attorney, or his representative, be authorized to sign the original five-year contract and the one-year extensions on behalf of the City of Fresno.
EXECUTIVE SUMMARY
Since 2005 Downtown Parking Facilities Management Services have been provided to the City by Ace Parking. The term of the service agreement with Ace Parking has ended, and a Request for Proposals (RFP) for these services for the next five (5) years was released to the public on February 10, 2014. The City received seven (7) proposals of which four (4) were deemed responsive to the RFP.
The Proposals were reviewed by the Parking Management Services RFP Selection Review Committee (Committee) which conducted four rounds of meetings, including two interviews with the finalist. The selection of SP Plus Corporation was based on their experience, comprehensive plan for customer service, facility maintenance, technology, and cost. The Committee was impressed by SP Plus Corporation's presentation, professionalism, and commitment to Fresno's revitalization efforts Downtown. The Committee believes SP Plus Corporation will be a valuable partner and will provide excellent service, superior recordkeeping, and reporting while efficiently managing the parking program in Downtown Fresno.
The Parking Division's payment to Ace Parking ranges from $1.7 million to $2.4 million dollars annually, which includes management fees and applicable pass-through expenses. The proposed management agreement with SP Plus Corporation reduces the Parking Division's annual commitment to $1.2 million resulting in a potential savings of $500,000 to $1 million each year to be invested into improving the technology and parking sites.
BACKGROUND
The long-term contract and multiple extensions with Ace Parking to provide Downtown parking facilities management services expired. An RFP for these services was released to the public on February 10, 2014. Eight (8) Building Exchanges received the RFP by facsimile, and as a result thirty-seven (37) prospective proposers received the RFP. The Scope of Work was written to include upgrades and changes to maintenance and customer service levels, strategies to increase revenues potential, improving aesthetics and safety, and technology opportunities to support Downtown revitalization. Additionally, the Scope of Work also included the cost for services at various park sites.
A Selection Review Committee was convened to review the proposals. The Committee included staff from the City of Fresno Purchasing Division, the City Manager's Office, Internal Audit, FYI, Development and Resource Management, as well as the interim President and a board member from the Downtown Fresno Partnership. Parking Services staff provided technical background to the Committee but did not participate in the scoring of the proposals.
The Committee met on four occasions to review proposals, methodically score and select the final proposer. The RFP sought a vendor who possessed extensive experience in special events due to the number of venues located in the Downtown area, a marketing strategy, a forward thinking approach to improving the facilities, and innovative techniques for supporting Downtown revitalization and increasing revenues. The RFP also specifically requested a comprehensive program to include robust accounting procedures, recordkeeping, and reporting.
The Committee focused on the specificity in each of the proposals relating to strategy, technology, customer service, facility maintenance, and management experience. These attributes were then compared to the relative cost of each proposal. At the conclusion of the second round the Committee selected two finalists. For the third round Republic Parking and SP Plus Corporation were invited to make a presentation and be interviewed by the Committee. Both companies gave excellent presentations. Final due diligence determined that three submittals were non-responsive to the bid requirements. Republic Parking and LAZ failed to address the requirements of Addendum 5 related to providing staff costs at various park sites. Pro Park failed to include a spec cost sheet. As a result, they were disqualified from further consideration. SP Plus Corporation was selected as the most responsive bidder. However, the Committee requested an additional interview, with the SP Plus Corporation team, to ensure that they understood the complexities of: (1) managing an event driven Downtown parking program; and (2) managing during a major construction project. After an hour of intense discussion the Committee unanimously agreed that SP Plus Corporation will provide excellent Parking Facilities Management Services.
For reference, the five-year cost for the seven Proposers were as follows:
Bidder |
Proposal |
Responsive to RFP Requirements |
SP Plus Corp |
$6,066,056 |
Yes |
Republic Parking |
$6,595,263 |
No |
Parking Concepts, Inc. |
$4,645,009 |
Yes |
LAZ Parking |
$3,884,614 |
No |
Ace Parking |
$8,322,380 |
Yes |
ABM Parking |
$9,238,970 |
Yes |
Pro Park |
Not Included |
No |
After exhausting due diligence consideration for all the proposals received, the Committee and staff recommend awarding the contract to SP Plus Corporation to provide Parking Facilities Management Services for the next contract term.
ENVIRONMENTAL FINDINGS
Pursuant to the provisions of California Environmental Quality Act (CEQA) Guidelines Section 15378, this agreement is not a project for the purposes of CEQA.
LOCAL PREFERENCE
Local preference did not affect the award of this requirements contract since none of the proposers qualify for the local business preference according to the Fresno Municipal Code Section 4-108(a).
FISCAL IMPACT
The fees include two components: 1) Management Fee of $750,000 for the five year period; and 2) Pass-through expenses of $5,316,056 related to garage operations for five years. Total cost is $6,066,056.
The Parking Division's payment to the current management provider Ace Parking ranges from $1.7 million to $2.4 million dollars annually, which includes management fees and applicable pass-through expenses. The proposed management agreement with SP Plus Corporation reduces the Parking Division's annual commitment to $1.2 million, a potential savings of $500,000 to $1 million each year to invest in technology and capital improvements.
Attachment: 9261 RFP Parking Operations