HomeMy WebLinkAbout2006-01-04 STAFF REPORTS 2S o�QALM S'04
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DATE: January 4, 2006 CONSENT AGENDA
SUBJECT: AWARD CONTRACT FOR PARKING LOT MANAGEMENT SERVICES
FROM: David H. Ready, City Manager
BY: Aviation Department
SUMMARY
The requested action will provide an initial five (5) year Contract Services Agreement for
parking lot management services at the Palm Springs International Airport, with the
C:ity's option to extend for an additional five years.
RECOMMENDATION:
1. Adopt Minute Order No. approving award of contract to Ace Parking to
provide Parking Lot Management Services at the Airport for a Five Year Period
Totaling $2,464,425 in Management Fees and subject to approval of final form of
contract by the City Attorney.
2. Authorize City Manager to execute all necessary documents.
STAFF ANALYSIS:
The City of Palm Springs issued a Request for Proposal (RFP No. 01-06) for parking lot
management services at Palm Springs International Airport on July 29, 2005. The RFP
was advertised and sent to 13 firms. Proposals were received by the following
companies on October 7, 2005:
1. Ace Parking — San Diego, CA
2. Diamond Parking Service — San Diego, CA
3. Parking Company of America — Downey, CA
4. Parking Concepts, Inc. — Irvine, CA
5, Republic Parking System — Chattanooga, TN
6. Standard Parking — Reno, NV
The RFP Evaluation Committee made up of Troy Butzlaff — Assistant City Manager,
Craig Graves — Finance Director, Bob Elsner — Airport Commission Chairman, and
Steve Zehr — Department of Aviation evaluated all proposals. Three firms were short
listed and these firms were invited to give presentations to the Evaluation Committee on
Item No. 2.S.
City Council Staff Report
(January 4, 2006) -- Page 2
Parking Management Services Contract Award
December 9, 2005. The three short listed proponents were Ace Parking, Republic
Parking System and the incumbent Standard Parking. The Evaluation Committee
evaluated each firm based on a combination of factors including experience, operations,
financial resources, accountability, facility investment and management fee. Based on
these factors Ace Parking scored the highest. The following is a breakdown of the
proposed management fee and initial facility investment proposed by the three short
listed firms:
Company Management Fee Initial Investment
Ace Parking $2,464,425 $299,196
Republic Parking $2,270,000 $157,895
Standard Parking $2,529,803 $300,000
Ace Parking is the largest privately-owned and operated parking company in the United
States. Based in San Diego, Ace has managed airport parking operations for more than
40 years. Ace currently manages more than 400 locations servicing 200,000 customers
per day. They currently provide parking management services to a number of high-
profile airports including: Phoenix Sky Harbor International Airport; Burbank-Glendale-
Pasadena Airport; Portland International Airport; and San Diego International Airport.
The current management fee is based upon a percentage of gross revenue and a
majority of the operating expenses reimbursed by the City. This bid proposal
established a fixed yearly management fee for the five year period to include operating
expenses, except those expenses agreed to be reimbursable, i.e. credit card processing
fees. The advantages to the City consist of a management fee that will not increase as
gross revenues increase year after year, but rather on the established bid price, and a
predetermined management fee year after year that includes a majority of contractor's
operating expenses. This new approach should maximize Airport parking revenues.
Importantly, parking revenue equates to 15% of the overall annual revenue into the
Airport.
The Airport Commission will consider this matter at their meeting schedule for January
4ah. Staff will provide the City Council a verbal report on the Commission's actions at
the Council meeting.
FISCAL IMPACT: Finance Director Review:"'"',
The fee for the remainder of FY2005/2006 has been budg ed. The management fees
will be b getes ira subsequent fiscal years. Gross reve ue collected from the parking
Ich i rre t $1 Imillior_apJe�r��ar_
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Richard S. Walsh, A.A.E. — Director of Aviation Troy B6tzlaff- �s is nt City Manager
David H. Ready, City Ma
MINUTE ORDER NO.
AUTHORIZING AWARD OF CONTRACT TO ACE PARKING TO PROVIDE PARKING
LOT MANAGEMENT SERVICES AT THE AIRPORT FOR A FIVE YEAR PERIOD
TOTALING $2,464,425 IN MANAGEMENT FEES AND SUBJECT TO APPROVAL OF
FINAL FORM OF CONTRACT BY THE CITY ATTORNEY.
I HEREBY CERTIFY that this Minute Order, authorizing award of contract to Ace Parking
to provide Parking Lot Management Services at the Airport For a Five Year Period
totaling $2,464,425 in Management Fees and subject to approval of final form of contract
by the City Attorney was approved by the City Council of the City of Palm Springs,
California, in a meeting thereof held on the 4th day of January, 2006.
JAMES THOMPSON
City Clerk