MEETING DATE:
June 22, 2021
RESOLUTION NO. 2021-8889 - AUTHORIZING AWARD OF A CONTRACT AND DELEGATING AUTHORITY TO THE CITY MANAGER TO FINALIZE AND EXECUTE A CONSULTANT SERVICES CONTRACT WITH REPUBLIC PARKING FOR COMPREHENSIVE PARKING ADMINISTRATION AND ENFORCEMENT SERVICES
Recommendation
Recommendation
ADOPT a resolution authorizing the award of a consultant services contract and delegating authority to the City Manager to finalize and execute a consulting services contract and related documents to Republic Parking for comprehensive parking administration and enforcement services.
State staff recommendation here.
Body
Board or Commission Action
Not applicable.
Relevant Council Strategic Theme
Dynamic and Responsive Service Delivery
Relevant Department Goal
Not applicable.
Executive Summary
Over the past several years, staff have explored outsourcing parking services to increase efficiencies and limit risk inherent to this function. The Request for Proposal for consultant services for parking services was initiated in March of 2020 and consultant selection concluded in June 2020. During that time, the COVID-19 pandemic emerged. In order to support the community as many people began working from home and businesses struggled to stay afloat, the City decided to limit parking enforcement activity consistent with many cities in the region. The selected consultant, Republic Parking, committed to hold the terms of their proposal for approximately one year to allow the City to respond to the highly unusual circumstances. Now that restrictions associated with the pandemic have lifted and major parking generators are active once again (i.e., businesses, schools), staff recommends entering a contract to reinstate parking services. Staff is requesting City Council approve the award of a consultant services contract with Republic Parking for comprehensive parking administration and enforcement services, and authorize the City Manager to execute the contract for a term of up to five years with an option for a one year extension.
Discussion
Staff continuously explore contracting and consolidation options for various functions in order to provide services more efficiently, reduce the City’s risks and limit long-term staffing costs. Staff have evaluated parking services and found that efficiencies can be achieved through improved technology and reporting provided by a single contractor responsible for all parking functions, including administration and enforcement.
Historically, part-time staff have provided enforcement and administration services for the City. The City has contracted with a vendor for technology (hardware and software) to support these activities. Contracting with a single vendor to provide all parking functions and associated technology would improve efficiency in the field, increase virtual and remote payment options for customers, enhance data collection and reporting capabilities, and increase the scope of services that can be seamlessly provided over time (i.e., parking permit programs).
One of the most significant benefits of outsourcing is reducing risk to the City. Parking services carry inherent risk due to the field operations component, as well as hosting payment and appeal services within City Hall. The selected contractor will provide expanded virtual payment and appeal options and will also provide a convenient bricks and mortar payment location for customer service in San Marcos (separate from City Hall). The contractor will also provide ongoing training and emphasis on customer service and de-escalation. These combined measures will substantially reduce risk to the City and improve customer options.
Outsourcing parking services will have higher direct cost compared to maintaining this function in-house. However, the reduction of risk is anticipated to have a long-term value that exceeds these additional costs. In addition, parking services are revenue offset. Citation revenues are anticipated to cover the cost for services based on historic revenue levels. Note that revenues may be lower than historic levels over the next one to two years to allow for parking services to gently “ramp up”. Fiscal assumptions in the FY2021-22 Annual Operations & Maintenance Budget for parking revenues are conservative.
On March 9, 2020, the City publicly solicited proposals for the comprehensive parking services. On May 4, 2020, the City received three proposals as follows:
1. Ace Parking
2. LAZ Parking
3. Republic Parking
The proposals received were evaluated based on the criteria indicated in the Request for Proposals which included but was not limited to; completeness, qualification and experience, understanding and organization, approach, etc. After evaluation by City staff, Republic Parking was found to be the best qualified and highest ranked firm to provide such services. Staff recommends authorizing the award of the consulting services contract to Republic Parking for comprehensive parking services in an amount not to exceed $2,000,000 (for five years, including optional one year extension) and authorize the City Manager to execute the consulting services contract and related documents in accordance with SMMC Chapter 2.30.
Environmental Review
Entering into a contract for parking services is not a “Project” as defined under Section 15378 of the California Environmental Quality Act, and CEQA Guidelines; and, is therefore not subject to environmental review pursuant to CEQA Guideline Section 15060(c)(3).
Fiscal Impact
Funding for parking services has been appropriated in the proposed Fiscal Year 2021-2022 Operational Budget in the amount of $288,000 based on the estimated Year 1 contract costs. The selected contractor was determined to be the best qualified based on various criteria, one of which was cost. Based on an independent cost estimate performed prior to the solicitation and successful negotiations, the cost for services are determined to be fair and reasonable and are projected to be revenue offset.
Attachment(s)
Resolution 2021-8889
Submitted by: Barry Reynolds, Building Official
Reviewed by: Dahvia Lynch, Development Services Director
Approved by: Jack Griffin, City Manager