REPORT TO THE CITY COUNCIL
October 9, 2014
FROM: JENNIFER K. CLARK, Director
Development and Resource Management Department
BY: DEL ESTABROOKE, Parking Manager
Parking Services Division
SUBJECT
Title
Approve the selection of, and award a contract to, Republic Parking Inc. to provide Parking Facilities Management Services in downtown Fresno
Body
RECOMMENDATION
Staff recommends that the Council approve the selection of, and award a contract to, Republic Parking, Inc. to provide professional Parking Facilities Management Services at City-owned Downtown parking lots and garages in the amount of $6,595,263 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 six were deemed responsive to the RFP.
The Proposals were reviewed by the Parking Management Services RFP Selection Review Committee (Committee) which conducted three rounds of meetings. The final selection of Republic Parking Services was based on their experience, comprehensive plan for customer service, technology, and cost. The Committee was impressed by Republic's presentation, professionalism, and commitment to Fresno's revitalization efforts downtown. The Committee believes Republic Parking Inc. will be a valuable partner and 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 Republic Parking Inc. reduces the Parking Division's annual commitment to $1.3 million resulting in a potential savings of $400,000 to $900,000 each year.
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.
A Selection Review Committee was convened to review the proposals. The Committee included staff from 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 three occasions to review proposals, methodically score and select the final proposer. While cost was an important consideration, it was not the sole deciding factor in the Committee's evaluation. 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, record keeping, and reporting.
At the first meeting two responses were eliminated from further consideration. The first proposal eliminated was Pro Park due the submission being non-responsive to RFP requirements. Their bid proposal page was not complete and the Committee determined they could not adequately evaluate their proposal. Ace Parking, the incumbent contract holder, was also eliminated in the first round. The Ace Parking proposal was among the most expensive and the quality of the presentation was lower than the five proposers that moved on to the second round. Prior to the second round the Committee requested additional clarifying information from both LAZ Parking and Parking Concepts. During the second meeting the Committee focused on the specificity in each of the proposals relating to strategy, technology, customer service, and management experience. These attributes were then compared to the relative cost of each proposal. At the conclusion of the second round the Committee eliminated three other candidates and 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 but ultimately the Committee agreed to recommend Republic Parking Inc. based on their interview, presentation, overall experience, submitted proposal, cost, and commitment to our downtown area.
During the Committee's review of the proposals, the five (5) companies eliminated during the first two rounds were not invited to be interviewed for various reasons including the following:
· Incomplete proposal as required in the RFP;
· Proposed costs;
· One proposer was rejected because they lacked adequate documentation to support their ability to upfront operational costs of more than $1,000,000 annually (the vendor must pay expenses and then request reimbursement from the City);
· A Proposer was eliminated because the approach relied too heavily on automation and lacked a strong customer service element which would be complimentary to the City's Downtown revitalization efforts;
· A lack of experience in a downtown environment; and
· Proposal not comparing in strength to the others in areas related to reporting, technology and customer service.
For reference, the five-year cost for the seven Proposers were as follows:
Bidder |
Proposal |
Selected |
Not Selected |
LAZ Parking |
$3,884,614 |
|
X |
Parking Concepts, Inc. |
$4,645,009 |
|
X |
SP Plus Corp |
$6,066,056 |
|
X |
Republic Parking |
$6,595,263 |
X |
|
Ace Parking |
$8,322,380 |
|
X |
ABM Parking |
$9,238,970 |
|
X |
Pro Park |
Not Included |
|
X |
After exhausting due diligence consideration for all the proposals received, the Committee and staff recommend awarding the contract to Republic Parking Inc. 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 $952,696 for the five year period; and 2) Pass-through expenses of $5,642,567 related to garage operations for five years. Total cost is $6,595,263.
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 Republic Parking Inc. reduces the Parking Division's annual commitment to $1.3 million, a potential savings of $400,000 to $900,000 each year.
Attachment: 9261 RFP Parking Operations