HomeMy WebLinkAboutStaff Report 8567
City of Palo Alto (ID # 8567)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 10/16/2017
City of Palo Alto Page 1
Summary Title: Amendment 3 to Contract for Valet Parking Services with SP+
Title: Approval of Amendment Number Three to Contract Number C14152025
With SP Plus for Valet Parking Services to Extend the Contract Term to March
2, 2018 (Continued From October 2, 2017)
From: City Manager
Lead Department: Planning and Community Environment
Recommendation
Staff recommends that Council approve Amendment Three to Contract C14152025 with SP Plus
to extend the contract term from September 2, 2017 to March 2, 2018.
Background and Discussion
The City is engaged in a number of parking management programs to improve parking
utilization and maximize parking supply. The Downtown Residential Preferential Parking (RPP)
program, which regulates non-resident parking in the Downtown neighborhoods, increased
demand for parking in Downtown garages. As a result, the City entered into a contract with SP
Plus aimed at maximizing utilization of existing parking supply using a valet-assist program. The
current valet-assist program, allows for up to 75 additional cars to be parked with no increase
in capital investment. Valet parking allows the City to maximize permit sales by overselling lots
to a greater degree than would otherwise be practical.
The valet program is conducted by SP Plus under Contract C14152025. The existing valet
program is staffed by valet attendants, stationed on the top level of the Lot R and Bryant/Lytton
Garage. When the permit spaces at the garage are nearing capacity, the attendants use signage
to direct permit parkers to park in the drive aisle and leave their key with the attendant. Prior
to beginning the program, occupancy was at capacity during the midday peak parking hours.
Valet assist allows the City to oversell permits and fully utilize stalls in high demand garages
when fully occupied. With valet’s currently assisting in parking 45 to 70 cars on a typical
weekday, the City can safely oversell these permits and expand parking capacity. In addition to
City of Palo Alto Page 2
extending garage capacity, the program adds another level of service and security in our high-
traffic locations.
The original contract was for $300,000 to provide valet service at Lot R on High Street between
University Avenue and Hamilton Avenue for a period of three years.
Amendment one of the contract (City Manager’s Report ID# 5685) increased the contract
amount to $997,652 to allow the City to expand valet parking service to three additional
garages: Civic Center, Cowper/Webster, and Bryant/Lytton over the same three year term.
However, due to logistical and operational issues, valet service has been suspended at
Cowper/Webster and has not been deemed feasible at Civic Center. Currently, only Lot R and
Bryant/Lytton have valet services in operation and spending under this contract is currently
about $20,000 per month.
Amendment two of this contract extended the term by six months to September 2017, but did
not increase the total contract amount. The second amendment is included as Attachment A.
Amendment three of the contract (Attachment B) will continue the valet program by extending
the end term again to March 2018.
Spending on this contract has been less than anticipated, leaving sufficient capacity in the
contract for another six-month extension. The contract dollar amount is not being increased
because there is sufficient funding allocated to cover the term of the extension. During the
extension, staff will be evaluating the service and issuing a new RFP.
As noted in a recent response to City Council questions, customers do not pay valets to park
cars under this program; it is a free service to permit holders, who currently pay $730 per year
for a parking permit. In terms of the City’s costs, as noted above, the monthly cost of this
program is about $20,000. Valets are currently parking about 45-70 cars per day on average
(with Friday’s consistently being the lowest). This equates to about $14-$22 per car, however
this calculation ($20,000 for 20 weekdays at 45 to 70 cars = $14-$22 per car) does not account
for the additional revenue available to the City because the valet service generally allows the
City to sell more garage permits (i.e. to reduce the waiting list for permits).
Policy Implications
The valet-assist program is consistent with current Comprehensive Plan Goals, Policies, and
Programs:
Goal T-8: Attractive, Convenient Public and Private Parking Facilities
City of Palo Alto Page 3
Policy T-45: Provide sufficient parking in the University Avenue/Downtown and
California Ave business districts to address long-range needs.
Policy T-47: Protect residential areas from the parking impacts of nearby business
districts.
Program T-49: Implement a comprehensive program of parking supply and demand
management strategies for Downtown Palo Alto.
Program T-52: Evaluation options to ensure maximum use of the City parking structures
in the University Avenue/Downtown and California Avenue areas.
Resource Impact
The Fiscal Year 2018 Adopted Operating Budget for University Avenue Parking Permit Fund
includes sufficient funding for the balance of this contract. As noted above, the contract
provided $997,652 for three years of valet services at multiple garages and has been extended
once before without additional costs because valet services and monthly expenditures have
been less than originally anticipated. Based upon Staff analysis of expenditures to-date and
expected costs to the end of the contract term, no additional funds are required for the six
months of additional services coverered under this contract extension.
Timeline
Staff implemented the valet parking programs in late summer 2015 and this contract
amendment continues this service through March 2, 2018.
Environmental Review
The proposed action would implement operational changes at existing garages and is exempt
from review under the California Environmental Quality Act (CEQA) under Class One (CEQA
Guidelines Section 15301, Existing Facilities) and because it can be seen with certainty that the
proposed action to incrementally increase garage capacity via operational changes could not
have a significant effect on the environment (CEQA Guidelines Section 15061(b)(3), the
“general rule”).
Attachments:
Attachment A - C14152025 SP PLUS CONTRACT AMENDMENT No 2 (PDF)
Attachment B - C1415205 SP PLUS CONTRACT AMENDMENT No 3 (PDF)
1 of 1 Revision April 28, 2014
AMENDMENT NO. 2 TO CONTRACT NO. C14152025
BETWEEN THE CITY OF PALO ALTO AND
SP PLUS CORPORATION
This Amendment No. 2 to Contract No. C14152025 (“Contract”) is entered into
February 15, 2017, by and between the CITY OF PALO ALTO, a California chartered municipal
corporation (“CITY”), and SP PLUS CORPORATION, a Delaware corporation ("CONSULTANT").
R E C I T A L S
A. The Contract was entered into between the parties for the provision of the
operation of a Parking Attendant Program at the Lot R Parking Garage on High Street between
University Avenue and Hamilton Avenue.
B. The CITY intends to extend the term to September 2, 2017 from March 2,
2017.
C. The parties wish to amend the Contract.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and
provisions of this Amendment, the parties agree:
SECTION 1. Section 2 TERM, is hereby amended to read as follows:
“SECTION 2. TERM. The term of this Agreement shall be from March 3, 2014 through September
2, 2017 unless terminated earlier pursuant to Section 19 of this Agreement.”
SECTION 2. Except as herein modified, all other provisions of the Contract,
including any exhibits and subsequent amendments thereto, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have by their duly authorized representatives
executed this Amendment on the date first above written.
CITY OF PALO ALTO
APPROVED AS TO FORM:
SP PLUS CORPORATION
DocuSign Envelope ID: 11E88644-F210-41C2-B191-110486B2CA95
Senior Vice President
Steve Aiello
Albert S Yang
Senior Deputy City Attorney
James Keene
City Manager
Certificate Of Completion
Envelope Id: 11E88644F21041C2B191110486B2CA95 Status: Completed
Subject: Please DocuSign: C14152025 SP PLUS CONTRACT AMENDMENT No 2.pdf
Source Envelope:
Document Pages: 1 Signatures: 3 Envelope Originator:
Supplemental Document Pages: 0 Initials: 0 Christopher Anastole
Certificate Pages: 5
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US &
Canada)
Payments: 0 250 Hamilton Ave
Palo Alto , CA 94301
chris.anastole@cityofpaloalto.org
IP Address: 12.220.157.20
Record Tracking
Status: Original
2/14/2017 1:32:15 PM
Holder: Christopher Anastole
chris.anastole@cityofpaloalto.org
Location: DocuSign
Signer Events Signature Timestamp
Steve Aiello
saiello@spplus.com
Senior Vice President
Security Level: Email, Account Authentication
(None)Using IP Address: 107.23.7.1
Sent: 2/14/2017 1:56:58 PM
Resent: 2/27/2017 9:20:22 AM
Viewed: 2/17/2017 1:56:05 PM
Signed: 2/27/2017 9:32:31 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
ID:
Albert S Yang
Albert.Yang@CityofPaloAlto.org
Senior Deputy City Attorney
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Using IP Address: 73.254.101.222
Sent: 2/27/2017 9:32:32 AM
Viewed: 2/27/2017 10:08:59 AM
Signed: 2/27/2017 10:11:02 AM
Electronic Record and Signature Disclosure:
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ID:
James Keene
James.Keene@CityofPaloAlto.org
City Manager
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Using IP Address: 50.174.200.162
Signed using mobile
Sent: 2/27/2017 10:11:03 AM
Viewed: 2/27/2017 10:28:54 AM
Signed: 2/27/2017 10:29:01 AM
Electronic Record and Signature Disclosure:
Accepted: 4/14/2015 5:40:07 PM
ID: 44fe333a-6a81-4cb7-b7d4-925473ac82e3
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Jeffery Heckathorn
Jeffery.Heckathorn@CityofPaloAlto.org
Administrative Associate III
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Sent: 2/27/2017 10:29:02 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
ID:
Sherry Nikzat
Sherry.Nikzat@CityofPaloAlto.org
Sr. Management Analyst
City of Palo Alto
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(None)
Sent: 2/27/2017 10:29:03 AM
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Certified Delivered Security Checked 2/27/2017 10:29:03 AM
Signing Complete Security Checked 2/27/2017 10:29:03 AM
Completed Security Checked 2/27/2017 10:29:03 AM
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Electronic Record and Signature Disclosure created on: 10/1/2013 8:33:53 AM
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1 of 1 Revision April 28, 2014
AMENDMENT NO. 3 TO CONTRACT NO. C14152025
BETWEEN THE CITY OF PALO ALTO AND
SP PLUS CORPORATION
This Amendment No. 3 to Contract No. C14152025 (“Contract”) is entered into
September 2, 2017, by and between the CITY OF PALO ALTO, a California chartered municipal
corporation (“CITY”), and SP PLUS CORPORATION, a Delaware corporation ("CONSULTANT").
R E C I T A L S
A. The Contract was entered into between the parties for the provision of the
operation of a Parking Attendant Program at the Lot R Parking Garage on High Street between
University Avenue and Hamilton Avenue.
B. The CITY intends to extend the term to March 2, 2018 from September 2,
2017.
C. The parties wish to amend the Contract.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and
provisions of this Amendment, the parties agree:
SECTION 1. Section 2 TERM, is hereby amended to read as follows:
“SECTION 2. TERM. The term of this Agreement shall be from March 3, 2014 through March 2,
2018 unless terminated earlier pursuant to Section 19 of this Agreement.”
SECTION 2. Section 19.2 TERMINATION OR SUSPENSION OF AGREEMENT
OR SERVICES, is hereby amended to read as follows:
“19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by
giving sixty (60) days prior written notice thereof to CITY.
SECTION 3. Except as herein modified, all other provisions of the Contract,
including any exhibits and subsequent amendments thereto, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have by their duly authorized representatives
executed this Amendment on the date first above written.
CITY OF PALO ALTO
APPROVED AS TO FORM:
SP PLUS CORPORATION
DocuSign Envelope ID: DEF32D51-630F-4D13-8E95-9C2427F36BF1
Senior Vice President
Steve Aiello Bill Kepp
Regional Manager
Certificate Of Completion
Envelope Id: DEF32D51630F4D138E959C2427F36BF1 Status: Completed
Subject: Please DocuSign: C14152025 SP PLUS CONTRACT AMENDMENT No 3.pdf
Source Envelope:
Document Pages: 1 Signatures: 2 Envelope Originator:
Supplemental Document Pages: 0 Initials: 0 Christopher Anastole
Certificate Pages: 2
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US &
Canada)
Payments: 0 250 Hamilton Ave
Palo Alto , CA 94301
chris.anastole@cityofpaloalto.org
IP Address: 12.220.157.20
Record Tracking
Status: Original
8/21/2017 10:50:31 AM
Holder: Christopher Anastole
chris.anastole@cityofpaloalto.org
Location: DocuSign
Signer Events Signature Timestamp
Steve Aiello
saiello@spplus.com
Senior Vice President
Security Level: Email, Account Authentication
(None)Using IP Address: 34.229.134.75
Sent: 8/21/2017 10:57:27 AM
Resent: 8/24/2017 8:04:23 AM
Resent: 8/29/2017 7:01:57 AM
Resent: 8/31/2017 8:56:24 AM
Viewed: 8/31/2017 8:57:31 AM
Signed: 8/31/2017 8:57:45 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Bill Kepp
bkepp@spplus.com
Regional Manager
Security Level: Email, Account Authentication
(None)Using IP Address: 34.213.65.56
Sent: 8/31/2017 8:57:46 AM
Viewed: 8/31/2017 9:14:47 AM
Signed: 8/31/2017 9:15:02 AM
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Philip Kamhi
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Sent: 8/31/2017 9:15:03 AM
Electronic Record and Signature Disclosure:
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Yolanda Cervantes
Yolanda.Cervantes@CityofPaloAlto.org
Administrative Assistant
City of Palo Alto
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(None)
Sent: 8/31/2017 9:15:03 AM
Electronic Record and Signature Disclosure:
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Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 8/31/2017 9:15:03 AM
Certified Delivered Security Checked 8/31/2017 9:15:03 AM
Signing Complete Security Checked 8/31/2017 9:15:03 AM
Completed Security Checked 8/31/2017 9:15:03 AM
Payment Events Status Timestamps