HomeMy WebLinkAbout1/19/2011 - STAFF REPORTS - 2.K. ALMSA�
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DATE: JANUARY 19, 2011 CONSENT CALENDAR
SUBJECT: AMENDMENT NO. 2 WITH ACE PARKING MANAGEMENT, INC. FOR
AIRPORT PARKING MANAGEMENT SERVICES.
FROM: David H. Ready, City Manager
BY: Palm Springs International Airport
SUMMARY
The City Council will consider an amendment to the agreement with ACE Parking
Management, Inc. for the continuance of parking management, taxi starter, and new
valet parking services at the Palm Springs International Airport.
RECOMMENDATION:
1. Approve Amendment No. 2 to Agreement No. A5215 with ACE Parking
Management, Inc. for the period February 1, 2011 through January 31, 2016.
2. Authorize the City Manager to execute Amendment No. 2 to the Agreement.
STAFF ANALYSIS
Approximately five and one half years ago the Airport, through City Procurement,
conducted a nationwide Request for Proposals for Parking Management Services that
are necessary to operate the public parking lots at the Palm Springs International
Airport.
Several nationally recognized airport parking management firms .responded to the City's
RFP and ultimately ACE Parking Management was selected to provide these services.
The term of the agreement, as approved by the City Council, was for an initial five year
term with the option of an additional five year extension at the will of the City. The first
five year term of the agreement ends January 31, 2011.
After careful consideration, review, and negotiation by the Airport Staff, coupled with the
unanimous concurrence of the Palm Springs International Airport Commission at its
ITEM `"10.�,�.
City Council Staff Report
January 19, 2011 -- Page 2
Airport Parking Services
December meeting, it is recommended that the five year option with ACE Parking
Management be approved by the City Council.
Staff and the Palm Springs International Airport Commission support the revised terms
and the extension of the agreement for an additional five year period for several
reasons as outlined below.
First, it is the opinion of airport staff that ACE Parking has delivered a consistent high
caliber of services over the last five years.
Secondly, the revised terms and the extension for five years, will require that ACE
Parking invest another $366,030 in upgrades to the parking revenue control equipment,
which will result in a new "Pay on Foot" parking service to Palm Springs International
Airport customers. Pay on Foot parking provides for a user to pay parking fees inside
the terminal, rather than at the exit of the parking facility.
Third, ACE Parking has solid experience in managing valet services at airports,
including San Diego International Airport, and they are well prepared to implement valet
services at PSP Airport anytime within the next five years.
Due to the economic recovery still underway, the timing of this contract renewal, and the
logistics of accommodating this type of new service, it is the opinion of both the airport
staff and ACE Parking that valet parking will not begin any earlier than next season.
ACE Parking will exceed the Airport Concession Disadvantaged Business Enterprise
(ACDBE) Contract Goal of 2.8% by purchasing the $366,030 in new capital upgrades
from a certified Disadvantaged Business Enterprise (DBE). The Federal Aviation
Administration has supported the continuance of this contract as a result of the
contribution to Airport's overall ACDBE goal.
In addition to the primary parking lot management and valet services, ACE will continue
to provide the personnel necessary to support the Airport's Taxi Starter services,
consistent with the City's intent when the City Council approved Amendment 1 to the
Agreement on October 18, 2006.
FISCAL IMPACT
The schedule of fees is attached as Exhibit A to the Agreement followed by the list of
capital equipment.
The parking management fee for the last five year term of the agreement was a fixed
lump sum fee paid equally over twelve months adjusted annually. The proposed annual
fee will remain a lump sum but will include an annual CPI adjustment with a cap of 3%
per annum.
City Council Staff Report
January 19, 2011 -- Page 3
Airport Parking Services
Taxi Starter Services has traditionally been provided at an hourly rate, and will remain
consistent for the next five year term but with a CPI and cap as well.
The following table provides an overview of the new fees and capital investments as
compared with the current fee paid by the Airport this current year.
Annual Lump Sum Fee Capital Investment
Current Mgmt. Fee $554,714 $299,000
Proposed Mgmt. Fee $554,714 + CPI with 3% cap $366,000
Funds are available for the Management and Taxi Starter Fees for February through
June 2011 in the current Fiscal Year Account 415-6100-43200, and will be budgeted in
subsequent fiscal years for the term of the agreement.
Thomas P. Nolan David H. Ready, City Mpiof
Executive Director, Airport
Attachment:
Amendment 2 to Ace Management Agmt.
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AGREEMENT NO. 5215
AMENDMENT NO. 2
AIRPORT PARKING LOT MANAGEMENT SERVICES
THIS SECOND AMENDMENT to Agreement No. 5215 for Contract Services, (herein
"Agreement") made and entered into on the of , by and between the CITY
OF PALM SPRINGS (herein "City") and ACE PARKING MANAGEMENT, Inc. (herein "Contractor")
is hereby effective February 1, 2011 as follows:
RECITALS
WHEREAS, the City and Contractor entered into that certain Contract Services Agreement No.
5215 for Airport Parking Lot Management Services ("Agreement"), as may be duly amended from
time to time.
WHEREAS, on October 18, 2006, Amendment No. 1 was entered into in order to provide Taxi
Starter Service and authorize payment for such additional service.
WHEREAS, the parties wish to amend the Agreement pursuant to the terms of Amendment No. 2
as follows:
NOW, THEREFORE, in consideration of the mutual promises of the parties hereto and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City
and Contractor agree to amend the Agreement as follows:
1. Section 2.01 B. Option to Extend Term: Option shall be exercised to extend the term of the
Agreement from February 1, 2011 to January 31, 2016.
2. Section 2.02 Compensation: Summary of Compensation, Identification of Equipment
Investment and Identification of Reimbursable Expenses, Exhibit A, shall be replaced with the
attached Exhibit A effective February 1, 2011.
3. Section 2.02AW Consumer Price Index Increase_Adjustment is hereby added to read as
follows:
Contract Years 7 - 10: The monthly compensation shall be automatically adjusted February
1st of Contract Years 7 - 10 in an amount equal to the increase in the Consumer Price Index
for All Urban Consumers (CPI-U) in the Los Angeles-Riverside-Orange County, CA for the
month of November preceding the adjustment date as compared to the preceding base
index. No annual CPI-U increase adjustment will exceed three percent (3%). The CPI-U for
November 2010 shall serve as the first base (100%). City shall send Contractor written
notice of the applicable compensation increase of each successive year along with
documentation evidencing the calculation no less than thirty (30) days prior to the effective
date of any compensation increase.
Ace Parking Lot Management Services Agreement 5215,Amendment#2
3. Section 2.03 Scope of Services: is hereby amended to add paragraph BB after paragraph AA;
which shall read as follows:
"BB. PSP Valet Parking Service will be provided in an area to be determined and designated
by the City. If a building is designated for Valet Parking, the City will be responsible for the
expenses associated with modifying and maintaining the facility. Customers will drop off their
vehicle at the PSP Valet Parking Station and the Valet will direct them to the airport terminal
entrances. Customers will be given a claim check that includes the appropriate contact
information to facilitate an efficient pickup upon return to the airport. Contractor will provide all
Valet Parking, Credit Card Equipment, Valet Signage and Valet Parking Station equipment at
no cost to the City."
4. Section 2.05D. Annual Report: is hereby replaced with the following: Within one hundred
twenty (120) days after the close of each Contract Year, Contractor shall provide City an audit
report on all Gross Revenues from operations at the Airport. The audit report shall cover the
preceding Contract Year. The audit report shall be prepared by an independent Certified Public
Accountant, not a regular employee of Contractor, in accordance with Generally Accepted Auditing
Standards prescribed by the American Institute of Certified Public Accountants or any successor
agency thereto or PCAOB as appropriate. The audit report shall include the following;
A. The audit report shall include a schedule of all revenues by category and month and a
corresponding schedule of all deposits made to City for these revenues.
B. The audit report shall include an opinion on the schedule of all revenues by category and by
month and the schedule of all deposits made to City for these revenues.
C. The audit report shall include, but not necessarily be limited to, management fees,
compensation paid by City, and payment received by Contractor under any insurance policies.
Delivery of an audit report containing a qualified opinion, an adverse opinion, or a disclaimer of
opinion, as defined by the American Institute of Certified Public accountants or any successor
agency thereto, shall be deemed to be a material breach of this agreement. If the audit report
indicates that the amount of Revenue deposits to City by Concessionaire during such Contract
Year were less than the total due for the Contract Year, the Concessionaire shall pay the difference
to City with the audit report.
5. Section 2.09 Personnel: is hereby amended to add paragraph K after paragraph J which shall
read as follows:
"K. Throughout the term of this Agreement, Contractor shall provide a qualified, competent,
and experienced valet staff that is commensurate with high caliber Valet Parking Services.
PSP Valet Parking Services will tentatively operate from October 1st through May 31st of each
year, seven days per week, with an average of 19.5 hours per day as approved by the City.
The schedule, including the months offered, may be adjusted based upon the current flight
schedule, changes in passenger demand, or as otherwise requested by the City. PSP Valet
Parking Services may be extended to year-round service by the City at any time via an
amendment to this Agreement which includes the extended hours and funding."
Ace Parking Lot Management Services Agreement 5215,Amendment#2
6. Section 2.12 Future Improvements: is hereby amended to add paragraph D after paragraph C
which shall read as follows:
"D. Capital Investment
Contractor shall be responsible for all capital investment to upgrade the existing revenue
control equipment and add all equipment necessary to accommodate 1 (one) new Prepay
Parking Kiosk which shall be installed in the main terminal building in a location determined
by the City. The entire equipment upgrade shall be at the sole expense of the Contractor
and shall be completed in its entirety no later September 30, 2011. This Capital Investment
shall include, at a minimum, the equipment listed on Exhibit A — Capital Investment and the
amount invested shall not be less than $366,030. If after the capital upgrades (Exhibit A —
Capital Investment) is completed and the total amount expended is less than $366,030,
then the Contractor shall, with the approval of the City, expend the remaining balance of
Capital Investment on other Palm Springs International Airport public parking or Taxi Starter
Facility improvements. These additional capital improvements shall be completed no later
than December 31, 2011 and the City reserves the right to extend this deadline. The
Contractor shall provide an itemized list of all equipment and services necessary to
complete the capital investment, including proof of purchase, at the request of the City. The
Contractor can make changes in the specific manufacturer and type of equipment shown in
Exhibit A—Capital Investment with the advance written approval of the City.
7. Add Section 3.49 Termination by City to read as follows:
3.49 City may terminate this Agreement for its convenience at any time by giving
Contractor thirty (30) days written notice thereof. Upon said notice, City shall pay
Contractor those allowable capital equipment investments as determined by the City
prorated based on the length of term remaining.
8. Add Section 4. Airport Concession Disadvantaged Business Enterprise (ACDBE) to read as
follows:
4.1 ACDBE Policy. It is the policy of the City to ensure that Airport Concession
Disadvantaged Business Enterprises (ACDBEs), as defined in the Department of
Transportation (DOT), 49 CFR Part 23, and other small businesses have an equal
opportunity to receive and participate in concession opportunities. The City
encourages Contractor to make every reasonable effort to maximize the contracting
opportunities for ACDBEs and other small businesses in the architectural,
engineering and construction of the Premises, and in the procurement of goods and
services necessary for the operation of the concession at the Airport.
4.2 ACDBE Contract Goal: This Extended Term specifies a 2.8% ACDBE contract goal
based upon total annual payments to Contractor as specified on Exhibit A. The
Contractor shall make good faith efforts, as defined in Appendix A, 49 CFR Part 26,
attached as Exhibit G, to meet the concession specific goal for ACDBE participation
in the performance of this concession.
4.3 Required ACDBE Statements. This agreement is subject to the requirements of the
U.S. Department of Transportation's regulations, 49 CFR Part 23. The
concessionaire or contractor agrees that it will not discriminate against any business
Ace Parking Lot Management Services Agreement 5215,Amendment#2 6
owner because of the owner's race, color, national origin, or sex in connection with
the award or performance of any concession agreement, management contract, or
subcontract, purchase or lease agreement, or other agreement covered by 49 CFR
Part 23.
The Contractor agrees to include the above statements in any subsequent
concession agreement or contracts covered by 49 CFR Part23, that it enters and
cause those businesses to similarly include the statements in further agreements.
4.4 ACDBE Good Faith Efforts. Good Faith Efforts are required during the Extended
Term per Appendix A. to 49 CFR Part 26, attached as Exhibit G.
4.5 ACDBE Participation Reports. Contractor shall submit ACDBE participation reports
as may be required by the City, for the purpose of demonstrating compliance with 49
CFR Part 23. On or before November 30t" of each agreement year, Contractor shall
furnish a report certified by an officer of the Contractor's company that details the
following information for its Airport concession during the twelve-month period from
October 1 of the previous year, through September 30 of the current year.
The report shall contain the following information:
1. Total Sub Concessions (Number and Dollar Amount)
2. Total ACDBEs Sub Concessions (Number and Dollar Amount)
3. Total Contracts for Goods/ Services (Number and Dollar Amount)
4. Total ACDBEs Contracts for Goods / Services (Number and Dollar
Amount)
For each ACDBE included in the report the following additional information will be
required:
1. Firm Name, address, phone number
2. Sub Concession Type or Goods/Services purchases
3. ACDBE Certification
4. Type of ACDBE
Full Force and Effect. Except as expressly modified herein all other provisions of the Agreement
shall remain unmodified and in full force and effect.
Corporate Authority. The persons executing this Amendment on behalf of the parties hereto
warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute
and deliver this Amendment on behalf of said part, (iii) by so executing this Amendment, such party
is formally bound to the provisions of this Amendment, and (iv) the entering into this Amendment
does not violate any provision of any other agreement to which said party is bound.
(Signature Page Follows)
Ace Parking Lot Management Services Agreement 5215,Amendment#2
IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the date first
written above.
ATTEST: CITY OF PALM SPRING
a municipal corporation
By: By:
City Clerk City Manager
APPROVED AS FOR '
By:
City Attorney
CONTRACTOR: Check one: Individual Partnership Corporation
Corporations require two notarized signatures: One from each of the following: A. Chairman of Board,
President, or any Vice President:AND B. Secretary,Assistant Secretary,Treasurer, Assistant Treasurer, or
Chief Financial Officer.
By: By:
Signature(notarized) Signature(notarized)
Name: Name:
Title: Title:
State of State of
County of County of
On before me, On before me,
personally appeared personally appeared
personally known to me(or proved to me on personally known to me(or proved to me on
the basis of satisfactory evidence)to be the the basis of satisfactory evidence)to be the
person(s)whose name(s)is/are subscribed person(s)whose name(s) is/are subscribed
to the within instrument and acknowledged to the within instrument and acknowledged
to me that he/she/they executed the same to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and in his/her/their authorized capacity(ies), and
that by his/her/their signatures(s)on the that by his/her/their signatures(s)on the
instrument the person(s), or entity upon instrument the person(s), or entity upon
behalf of which the person(s)acted, behalf of which the person(s)acted,
executed the instrument. executed the instrument.
WITNESS my hand and official seal. WITNESS my hand and official seal.
Notary Signature: Notary Signature:
Notary Seal: Notary Seal:
Ace Parking Lot Management Services Agreement 5215,Amendment#2
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EXHIBIT A— EFFECTIVE FEBRUARY 1, 2011
SUMMARY OF COMPENSATION,
IDENTIFICATION OF REIMBURSABLE EXPENSES,
AND CAPITAL INVESTMENT
2 773 550 Management Fee to be paid to Contractor as follows:
Contract Years 6-- 10:
$554,710 to be paid in monthly installments of$46,225.83
1537,500 Taxi Starter Hourly Rate Not To Exceed 5,000 hours per Year
Contract Years 6 -10:
$21,50 Per Hour Not To Exceed $107,500 per Contract Year
Taxi Starter actual Schedule/Hours per day to be approved monthly in advance by the City.
$537,500 Valet Hourly Rate and Not To Exceed 5,000 hours per Year
Contract Years 6— 10:
$21.50 Per Hour Not To Exceed $107,500 per Contract Year
Valet actual Schedule/Hours per day to be approved monthly in advance by the City.
Total Amendment (5 years) Contract Year 6 — 10 = $3_,848,550.
Only Contract Years 7-10 will include an annual CPI increase adjustment per Section 2.02A
Reimbursable Expenses:
1. Possessory Interest Taxes
2. Credit Card Fees
Ace Parking Lot Management Services Agreement 5215,Amendment#2
EXHIBIT A - CONTINUED
CAPITAL INVESTMENT
Equipment listed below shall be installed and operational no later than
September 30, 2011 .
Description Model Entry Exit Total
Amano McGann Warc Professional
Amano McGann iParc Professional Revenue SNV AMS11561P 0 1 1
Intelligent Lane Controllers 1/07000 3 1 4
Data Converter Interface DCB28OMS 5 3 8
Count Monitor AMS70501P 0 1 1
Access with Debit (Express Parc) AMS4255DIP 0 1 1
Data Server DPE SC440 0 1 1
SQL Server Database Software SQL 0 1 1
17" Flat Panel & KVM Switch D17KVM 0 1 1
TC Converters AGP-0509/A558 0 4 4
Device Master RTS 4 D139 0 1 1
Fee Computer System Upgrade XP
Fee Computer System Upgrade XP AGP-0503/A698 0 2 2
Barrier Gates Upgrade
Gate Enhancement Boards MT1703 5 3 8
Credit Card Processing
McGann CC Server DOPX-320 0 1 1
AmanoCharge Tender Retail 1-15 AGP-9400/A783 0 1 1
Credit Card SNV Suite AMS69581P 0 1 1
Ace Parking Lot Management Services Agreement 5215,Amendment#2 . 10
Description Model Entry Exit Total
Wireless/Phone Dial Intercoms
HF-2 Custom Kit 02A86202H 6 1 7
Wireless, Remote Unit Tranceiver/VoiP 02AO045OR 3 3 6
Remote Demarcation Interface Module
(RDIM) w/Telco 02A50015-TA 5 1 6
Credit Card Exit Verifier
Lag-Time Credit Card Only Exit Station AMG-4570/A859 0 1 1
Wire and Small Parts SAS 1 0 1
Pay On Foot Station*
Automated Pay Station AGP-7811/A865 0 1 1
Spare Lockable Note Vault AGP-0528/A679 0 1 1
Spare Coin Vault AGP-0530/A681 0 1 1
Spare Note Cassette for Note Dispenser AGP-0529/A680 0 1 1
HF-2 Custom Kit 02A86202H 0 1 1
Wire and Small Parts SAS
Lot
New Long Term Entry
Ticket Dispenser Mag-Stripe ETP-22SNW 1 0 1
Barrier Gate AGP-1711 1 0 1
Straight Aluminum Gate Arm 10' AL 12 1 0 1
Gate Enhancement Boards MT1703 1 0 1
2' x 16' Concrete Island SUB 1 0 1
Loop cuts SUB 2 0 2
Post Bollards SAS 3 0 3
Trenching, Backfill & Conduit SUB
Lot
Ace Parking Lot Management Services Agreement 5215,Amendment#2 �`
Power Wire 10AWG
Lot
Wire 18/2 SHLD/CAT5
Lot
Description Model Entry Exit Total
Technician Onsite Training SAS 1
Programming SAS 1
Minimum Capital Investment: $366,030
Ace Parking Lot Management Services Agreement 5215,Amendment#2 12
EXHIBIT G
ACDBE GOOD FAITH EFFORTS
(See Attached)
Ace Parking Lot Management Services Agreement 5215,Amendment#2