City of Culver City, California
Agenda Item Report
Meeting Date: 12/09/13 Item Number: JC-2
JOINT CITY COUNCIL AND BOARD OF THE SUCCESSOR AGENCY TO THE
CULVER CITY REDEVELOPMENT AGENCY AGENDA ITEM: Approval of an
Amendment to an Existing Agreement with Modern Parking, Inc. for Parking
Management Services at the Cardiff, Ince, and Watseka Parking Structures and the
Venice and Virginia Parking Lots.
Contact Person/Dept.:
Joe Susca/ CDD
Todd Tipton/ CDD
Phone Number:
(310) 253-5763
(310) 253-5783
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: E-Mail) Meetings and Agendas – City Council (12/03/13); (E-Mail)
Modern Parking Inc., Downtown Business Association, and Chamber of Commerce on
(12/03/13).
Department Approval:
Sol Blumenfeld (11/27/13)
City Attorney/Successor Agency General
Counsel Approval:
Carol Schwab (by H. Baker) (12/02/13)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (12/03/13)
City Manager/Executive Director Approval:
John M. Nachbar (12/03/13)
RECOMMENDATION:
Staff recommends the City Council and the Board of the Successor Agency to the
Culver City Redevelopment Agency (Successor Agency Board) approve an
Amendment to an existing Agreement with Modern Parking, Inc. (Modern) for
parking management services at the Cardiff, Ince, and Watseka parking structures
and the Venice and Virginia parking lots in an amount not-to-exceed $802,575.
BACKGROUND/ DISCUSSION:
On August 1, 2006, the former Redevelopment Agency Board approved an original
agreement with Modern for parking management services related to the Cardiff,
Ince, and Watseka parking structures (Agreement). In subsequent contracts, the
former Redevelopment Agency Board, the City Council, and Parking Authority Board
extended the term of the Agreement and added additional management and
maintenance services to Modern’s scope of work.|1010|
In January 2012, a new Agreement was executed between the City, the Parking
Authority and Modern (in lieu of issuing a Request for Proposal) due to
Redevelopment Agency elimination and the uncertainty surrounding the future
ownership of the parking facilities. The amount of the Agreement was $745,837, City of Culver City, California
Agenda Item Report
including contingency. In February 2013, the Agreement was amended to reflect
that the Successor Agency was the successor in interest to the Parking Authority
and, under the authority granted to the City Manager, the term was extended an
additional year to January 31, 2014.
The existing Agreement between the City, the Successor Agency and Modern will
expire on January 31, 2014. Due to the continued uncertainty surrounding the future
ownership of the parking facilities, staff recommends that the City Council and
Successor Agency Board extend the Agreement with Modern an additional year to
January 31, 2015 and authorize the City Manager/Executive Director to extend the
term another additional year to January 31, 2016, if ownership status is not resolved.
FISCAL ANALYSIS:
Modern will be contracted to perform parking management services at the annual
rate of $668,813 (for the three downtown parking structures and the surface parking
lots on Venice Boulevard and Virginia Avenue) with $133,762 in contingency funding
for a total of $802,575. Pursuant to the Agreement, the City is responsible for
funding any unforeseen services such as staff overtime and event staffing. To fund
these services, staff has historically included a 20% contingency.
The $802,575 amount represents a $56,738 increase above the prior Agreement
amount. The increase is attributed to the 13% minimum wage increase (from $8.00
to $9.00 per hour) that will become effective on July 1, 2014, which reflects a 7-
month impact of the wage increase and an increase of $85,462 to $831,312 in the
second year, which reflects a 12-month impact of the wage increase.
As a result, the total annual cost of the Amended Agreement, including contingency
is:
Location Proposed Fee Increase Subtotal Contingency Total
Cardiff $123,396 $12,719 $136,115 $27,223 $163,338
Watseka $122,304 $2,188 $124,492 $24,898 $149,390
Ince $321,594 $39,795 $361,389 $72,278 $433,667
Virginia/
Venice
$44,770 $2,047 $46,817 $9,363 $56,180
Total: $612,064 $56,749 $668,813 $133,762 $802,575
The Agreement will be funded from existing parking facilities revenues. The
combination of Modern’s Agreement and overall maintenance/repair of the parking
facilities results in parking operations|1010| being revenue neutral.
City of Culver City, California
Agenda Item Report
ATTACHMENTS:
1. November 18, 2013 Modern Parking letter requesting additional compensation
due to the minimum wage increase.
MOTION:
That the City Council and Successor Agency Board:
1. Approve a tri-party services agreement with Modern Parking, Inc. for parking
management services at the Cardiff, Ince, and Watseka Parking Structures and
the Venice and Virginia Parking Lots in an amount not-to-exceed $802,575 for
the first year; and,
2. Authorize the City Attorney/Successor Agency General Counsel to
review/prepare the necessary documents; and,
3. Authorize the City Manager/Executive Director to execute such documents on
behalf of the City and the Successor Agency; and,
4. Authorize the City Manager/Executive Director to extend the agreement by one
additional year in the amount of $831,312 if ownership of the parking facilities
remains undetermined.
NOTES:
|1010|The Modern Contract was initially executed on August 1, 2006 and extended on June 18, 2009, January
10, 2010, January 26, 2011, December 13, 2011, January 31, 2012 and August 5, 2013. |1010|Maintenance and repair items include utilities, steam cleaning, pavement markings, signage,
elevator repairs, landscaping, graffiti abatement, vandalism repairs, fire alarm system testing and fire
extinguisher charging, pest control, wheel stop replacements, lighting fixture cleaning, light bulb
replacements, carbon monoxide testing system, ticket issuing, monthly parking and access control
system.
MEETING DATE: December 9, 2013
AGENDA ITEM: JOINT CITY COUNCIL AND BOARD OF THE SUCCESSOR
AGENCY TO THE CULVER CITY REDEVELOPMENT
AGENCY AGENDA ITEM: Approval of an Amendment to an
Existing Agreement with Modern Parking, Inc. for Parking
Management Services at the Cardiff, Ince, and Watseka Parking
Structures and the Venice and Virginia Parking Lots.
ATTACHMENTS
Pages
1. November 20, 2013 Modern Parking letter of request to 1-2
be reimbursed for the minimum wage increase.
ATTACHMENT NO. 1
Page 1City of Culver City: 2014 Projections
Cardiff Watseka Ince Monthly Total Annual Total
2013 Budget 10,283 $ 10,192 $ 26,800 $ 47,275 $ 567,300 $
Contingency Total 12,340 $ 12,230 $ 32,159 $ 56,729 $ 680,748 $
Budgeted Hours 700 638 1,993 3,331
Increase ($1.00) 700 $ 638 $ 1,993 $
Payroll Burden 245 $ 223 $ 698 $
Monthly Total 945 $ 861 $ 2,691 $ 4,497 $ 53,962 $
Annual (7 months) (A) 6,615 $ 6,029 $ 18,834 $ 31,478 $
Annual (12 months) (B) 11,340 $ 10,336 $ 32,287 $ 53,962 $
Annual Expenses (Last 12 months) (C) 129,500 $ 118,463 $ 342,555 $ 590,518 $
Average Monthly Expenses 10,792 $ 9,872 $ 28,546 $ 49,210 $
2014 (A+C) 136,115 $ 124,492 $ 361,389 $ 621,996 $ 9.64%
2015 (B+C) 140,840 $ 128,799 $ 374,842 $ 644,480 $ 13.60%
Virginia Annual Total
2013 Budget 44,770.00 $
Contingency Total 53,724.00 $
Rate 17.60 $ 45,760.00 $
New Rate 18.95 $ 49,270.00 $
Annual Hours / Variance 2,600 3,510.00 $
2014 (7 months) 2,048 $ 46,817.50 $
2015 3,510 $ 48,280.00 $
New Totals Increase 2013 City Total
Total Projected Increase 2014 668,813.45 $ 9.27% 612,064.00 $
Total Projected Increase 2015 692,760.20 $ 13.18%
ATTACHMENT NO. 1
Page 2