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CC - Approval of a Three-Year Agreement, with Two One-Year Extensions, with ABM Parking Services to Manage the City’s Parking Facilities in an Amount Not-to-Exceed $1,122,150 Annually.
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Meeting Date: September 13, 2021
Contact Person/Dept: Todd Tipton / CDD/Economic Development
Phone Number: (310) 253-5783
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X]
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (09/08/2021) Downtown Business Association (E-mail on 09/08/2021);
Department Approval: Sol Blumenfeld, Community Development Director (08/31/2021)
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RECOMMENDATION
Staff recommends the City Council approve a three-year agreement, with two one-year extensions, with ABM Parking Services (ABM) to manage the City’s parking facilities in an amount not-to-exceed $1,122,150 annually.
BACKGROUND
The City’s parking facilities consist of approximately 2,200 off-street parking spaces located in parking structures and surface lots (“Facilities”). The Facilities have been operated by ABM since 2016 and include the City Hall, Ince, Cardiff and Watseka parking structures as well as:
• 9415 Venice Boulevard;
• 3825 Canfield Avenue;
• 10401 Virginia Avenue;
• 3757 Robertson Boulevard;
• 3727 Robertson Boulevard;
• 3715 Robertson Boulevard;
• Parcel B subterranean garage (since late 2019);
• Washington/Centinela Market Hall garage (to be constructed).
On November 2, 2020, the City executed a Fourth Amendment to the professional services agreement with Walker Parking Consultants to assist staff to obtain proposals from qualified firms to maintain and operate the City’s parking facilities. Walker was requested due to its background in parking consulting services with the City. Requested assistance included Request for Proposal (RFP) document development, conducting a pre-proposal conference and walk-through, answering written questions from potential bidders, review of proposals for technical accuracy and RFP compliance, providing written summary of each proposal and a recommended shortlist, site-visit participation, and final evaluation feedback.
On May 12, 2021, with Walker Consultant’s assistance, the RFP was issued for parking management services. Six responses were received, and four respondents were interviewed based on their experience, financial stability, operating/maintenance plans, and price. Of the four firms interviewed, ABM was the highest ranked interviewer and, therefore, staff recommends the City Council select ABM for city facility parking operations services.
DISCUSSION
ABM is a national parking company headquartered in Los Angeles. ABM manages approximately 600 locations and has 3,500 employees in Southern California. ABM is a publicly traded company and is Sarbanes Oxley Certified since 2007. The Sarbanes Oxley Certification is a credential awarded for knowledge and implementation of strict financial auditing/accounting principles and practices.
The proposed agreement requires ABM to manage, operate, direct, and supervise a first-class public parking operation throughout the term of the agreement. The proposed term of the agreement is three years with two one-year extensions that can be administratively approved by the City Manager if ABM performs satisfactorily. ABM’s specific responsibilities include (without limitation) the following:
a. Management and operation of the Facilities, including supervision of the parking and circulation of vehicles inside the Facilities, administration and monitoring of access control credential use.
b. Collection of and accounting for all cash and other payments from any source derived from the use of the Facilities, including sums payable with respect to daily and monthly parking fees, events and outside contracts.
c. Operation and maintenance of the parking access and revenue control system (PARCS) equipment installed at the Facilities.
d. Employment of such parking attendants and other personnel for the management and operation of the Facilities.
e. Management of event parking and validation sales.
f. Maintenance of accounting records of all income and expenses related to the management and operation of the Facilities.
g. Maintenance and janitorial services to ensure the Facilities represent a first-class parking facility.
h. Maintenance of Electric Vehicle Charging Stations (EVCS).
i. Coordination with the PARCS (hardware and software) equipment vendor.
j. Coordination with the Automated Parking Guidance System (APGS) hardware and software equipment vendor.
k. Implementation of improvements (security cameras, demand-based pricing, parking office etc.).
l. Coordination with City of Culver City Parking Services Enforcement efforts in the Facilities on a daily basis.
m. Communication with Owner on matters relating to the management and operation of the Facilities, including providing Owner with recommendations regarding how to increase the efficiency and lower the cost of parking operations as well as transportation demand management.
The proposed agreement will also allow the City to remove some of the Facilities in the event they are needed for other purposes, such as redevelopment for affordable housing. If the agreement is approved, it is anticipated ABM will begin operating the Facilities in October 2021.
FISCAL ANALYSIS
The cost of services specified in the RFP over the five-year period is $5,610,750 [$1,122,150 x five years (assuming the two one-year extensions are approved)], which includes a five-year management fee of $120,000 ($24,000 per year). It is also recommended the City Manager be authorized to award up to $15,000 in annual incentives (included in the $1,122,150 annual contract amount) based on:
• ABM’s ability to improve net income generated at the Facilities resulting from their proactive and documented efforts,
• ABM’s documented efforts to maintain the Facilities to high standards, and
• ABM’s diligent coordination and subsequent implementation of various improvement projects.
Incentive proceeds are distributed to ABM employees (working in Culver City) for satisfying the items above. If approved, the annual incentive program will be included in the terms of the agreement.
Additionally, it is recommended the City Manager be authorized to increase the scope of maintenance services (and related costs) that ABM is required to perform within the authorized budget in order to relieve City staff and place the accountability with the operator. If approved, this administrative authority will be included in the terms of the agreement. Adequate funding is available for the first year of operations in the Adopted Budget for Fiscal Year 2021/2022. Additional funding will be appropriated in future fiscal years.
ABM’s cost of service does not include the management/operation of the garages beneath Parcel B as it is overseen by Hackman Capital Partners and does not include the Washington/Centinela Market Hall which was stopped at the outset of the Covid-19 pandemic. Additional funding will be appropriated once the Market Hall garage is constructed and there are parking receipts from garage operations. It is also recommended the City Manager be authorized to administratively approve an amendment to the agreement to increase the compensation for these additional locations at the time they become operational, within the City Council authorized appropriations.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Approve a three-year agreement, with two one-year extensions, with ABM Parking Services to manage the City’s parking facilities in an amount not-to-exceed $1,122,150 annually;
2. Authorize the City Manager to (i) award up to $15,000 in annual incentives, (ii) increase the scope of maintenance services within the authorized budget, (iii) approve two one-year extensions, and (iv) approve increased compensation for the Parcel B and Washington/Centinela Market Hall parking garages at the time they become operational, as these items are described in this staff report. (If Council adopts this motion, items i, ii and iii will be included in the terms of the agreement; item iv will be addressed through an administratively approved amendment to the agreement at the applicable time);
3. Authorize the City Attorney to review/prepare the necessary documents.
4. Authorize the City Manager to execute such documents on behalf of the City.