REPORT TO THE CITY COUNCIL
FROM: JENNIFER K. CLARK, Director
Planning and Development Department
BY: MELISSA ALMAGUER, Parking Division Manager
Planning and Development Department
SUBJECT
Title
Approve the First Amendment to the Service Contract with Ace Parking Management to increase the contract amount by $3,527,000, for a total contract amount not to exceed $16,757,332 utilizing funds previously approved and appropriated by the City Council.
Body
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager, or their designee, to approve the First Amendment to the Service Contract with Ace Parking Management, increasing the contract amount by $3,527,000 for a total not to exceed $16,757,332. This amendment will utilize funds previously approved and appropriated by the City Council and will allow the Parking Division to continue operations through the end of the current agreement.
EXECUTIVE SUMMARY
In 2021, the City entered into a five-year contract with Ace Parking Management (ACE) to operate downtown and regional parking facilities, with an initial not-to-exceed amount of $13,230,332. In the FY 2024 Adopted Budget, City Council approved an additional $1.2 million to augment the City’s Downtown Security Program which provided additional security officers and patrol guards, through ACE Parking Management, to help reduce vandalism and break-ins in the downtown area. In order to fully fund the program, City Council approved an additional $270,000 in the FY 2025 Adopted Budget for a total of $1.47 million for security services. The remaining $857,500 in included in the Parking Division’s proposed FY 2026 budget to pay for ACE’s services through the contract end date of January 27, 2026. The service agreement with ACE Parking Management must be amended to align with the final approved and appropriated funding amount. Approval of this amendment will ensure uninterrupted service and continuity of parking and security operations.
BACKGROUND
On January 27,2021, Council approved a service requirements contract with Ace Parking Management for the operation of City-owned downtown and regional parking facilities. The initial contract amount was $13,230,332 for a five-year period. ACE Parking was selected as the best value proposer to meet the City's operational goals, leveraging their experience in modernizing and efficiently managing municipal parking operations.
To address damage from vandalism and break-ins in the downtown area due to lack of security, City Council approved additional funds in FY24 and FY25 to augment the City’s Downtown Security Program.
The plan included additional security at all five parking garages and a patrol guard for all eight surface lots. This additional security has been effective in decreasing vandalism and reducing damages and transient traffic in the garages.
The proposed amendment adds $3,527,000 of previously approved and appropriated funds to the agreement, bringing the total not-to-exceed amount to $16,757,332. This amendment will ensure that ACE Parking Management’s services can continue, uninterrupted, through the full term of the contract, currently set to expire in January 27, 2026.
Approved & Council Appropriated Funds for City's Downtown Security Program
• FY24 Adopted Budget for Security $1,200,000.00
• FY25 Adopted Budget for Security $1,470,000.00
• Proposed FY26 Budget for Security (7 months of security) $857,500.00
Cumulative Total Available for Close-Out of Contract $3,527,500.00
ENVIRONMENTAL FINDINGS
Staff has determined this project is exempt under CEQA Guideline 15301 Class 1, which provides exemption for the operation, repair, maintenance, permitting, leasing, licensing, or other minor alteration of existing public structures and facilities, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. The proposed requirements contract is within the Class 1 exemption because it involves negligible or no expansion of use of facilities or structures.
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 services will be funded with existing appropriations in the Parking Division’s budget.
Attachment:
First Amendment to Service Contract - ACE Parking
Original Service Contract - ACE Parking