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HomeMy WebLinkAboutStaff Report 2302-10157.Amendment No. 1 to Contract with LAZ Parking (C20176367) for Residential Preferential Parking (RPP) Program Parking Enforcement to Extend Term two years through February 2025 with no additional funds; CEQA status – categorically exempt (Regulation 15321 enforcement actions). 1 7 6 3 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Transportation Meeting Date: March 20, 2023 Report #:2302-1015 TITLE Amendment No. 1 to Contract with LAZ Parking (C20176367) for Residential Preferential Parking (RPP) Program Parking Enforcement to Extend Term two years through February 2025 with no additional funds; CEQA status – categorically exempt (Regulation 15321 enforcement actions). RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or their designee to execute the attached Contract Amendment No. 1 to extend contract C20176367 with Laz Parking for Residential Preferential Parking Enforcement through February 2025. EXECUTIVE SUMMARY Significant cost savings have been achieved over the course of the contract thus far, providing the opportunity to extend and renew the current services through early 2025 without increasing the existing $2,322,285 contract limit. This cost savings in RPP enforcement is due to 1) suspension of enforcement activities related to Covid-19 impacts in the last three contract years and 2) the adoption and transition to automated license plate recognition enforcement and related modified staffing plans. BACKGROUND Residential Preferential Parking Program The City actively addresses city-wide parking and transportation challenges using a strategic, multi-faceted approach focused on parking management, parking supply, and transportation demand management programs. Parking management strategies have included the development of a city-wide Residential Preferential Parking (RPP) ordinance. The established program limits non-permit holder parking to two hours during program hours to ensure short term daily parking opportunities for visitors and guests. The RPP programs in their configuration are the result of a multi-year process that has included business and resident stakeholder engagement with city staff. Program development has included deliberations on enforcement 1 7 6 3 hours, program boundaries, permit prices, and employee permit allocation. These comprehensive processes have represented a significant City effort to ensure neighborhood parking availability. RPP districts have thus far been established in the residential areas of Downtown Palo Alto, Evergreen Park-Mayfield, Southgate, and Old Palo Alto. The program relies upon contracted LAZ Parking enforcement services to enforce program signage and permit requirements. LAZ Parking (operating as Serco at the time) Selected After Competitive RFP Process in 2019 The City of Palo Alto’s Office of Transportation staff developed a Request for Proposals (RFP) to receive proposals from firms that could implement the desired parking enforcement program in a timely manner for the City. The RFP did not specify the number of enforcement officers being requested; rather, the City invited proposers to visit the RPP Districts and make a proposal based on their experience with similar programs. The RFP was issued in October 2019 and proposals were due on Monday, November 18, 2019. The City received the following three (3) responses to the RFP: •Ace, •Republic Parking System, and •Serco, Inc. (now LAZ Parking) As specified in the RFP, evaluation of the proposals was conducted by City staff using the following criteria: · •Quality and completeness of the proposal; · •Quality, performance and effectiveness of the solution, goods and/or services to be provided by the Proposer; · •Proposer’s experience, including the experience of staff to be assigned to the project, the engagements of similar scope and complexity; · •Cost to the city; · Proposer’s financial condition and stability; · •Proposer’s ability to perform the work within the time specified; · •Proposer’s prior record of performance with City or other local, county or state agency; · •Proposer’s ability to provide future maintenance, repairs parts and/or services; and · •Proposer’s compliance with applicable laws, regulations, policies (including City Council policies), guidelines and orders governing prior or existing contracts performed by the contractor. All committee members indicated that they were in unanimous agreement that based on an evaluation of relevant experience, proposed staffing approach, and proposed technologies, the proposal submitted by Serco (LAZ Parking) demonstrated the most complete understanding of the City’s RPP program. Upon vendor selection, and in subsequent additional contract 1 7 6 3 negotiations, the City has secured the basis of contract terms presented in this current report, and originally approved by Council in March 2020 (CMR #10874), with minor updates added in the renewal terms, reflecting underlying cost increases reasonable to area cost of living increases. As part of their services, LAZ is responsible for the recruitment of enforcement personnel, background checks and screening, final selection, and initial and on-going training of staff. Training will include permit enforcement, issuance of citations, marking vehicles, customer service, and codes and ordinances related to parking enforcement in the area. Additionally, LAZ provides all personnel with uniforms, badges, ID tags, and transportation, including bicycles and clean vehicles. The employees are LAZ employees and not employees of the City of Palo Alto. The Office of Transportation manages this contract to ensure that LAZ representatives are meeting program goals in terms of enforcement. LAZ Parking has been a communicative, flexible, and accountable partner. City staff unequivocally support extending their contract term to provide enforcement services and the cost savings their efforts have helped create. ANALYSIS The contract amendment will extend the existing contract with LAZ Parking for continued RPP parking enforcement. This contract amendment does not need additional funds because of reduced RPP parking enforcement during the COVID-19 pandemic. The amendment will use the remaining contract balance to fund approximately two more years of service (or whenever the contract balance is used up, whichever comes first). FISCAL/RESOURCE IMPACT The table below summarizes contract budget amount for each year of the three (3) year contract versus the amounts actually paid to the vendor per year. The significant difference in expense is attributed to the effects of COVID-19 and Council adoption of ALPR enforcement, resulting in significant savings in the parking citation services provided by LAZ. Table: Contract Actuals versus Budgeted Years 1: 3/24/2020- 3/23/2021 Years 2: 3/24/2021- 3/23/2021 Years 3: 3/24/2022- 3/23/2023 Total Budgeted amount (per contract) $748,672 $771,132 $802,481 $ 2,322,285 Actuals (services invoiced by vendor and paid by City) $149,544 $316,328 $298,633 $ 764,505 Savings to be assigned forward for use in years 4 & 5 of the contract $599,128 $454,804 $503,848 $ 1,557,780 1 7 6 3 Staff recommends extending the current contract for an additional two (2) years, making the contract with LAZ a five (5) year contract. The unspent amount of $1,557,780 shown in the table would fund years four (4) and (5), up to the value of the existing not-to-exceed amount. Actual yearly cost depends on actual hours of enforcement, which can vary. The not to exceed amount of the would remain the same, $2,322,285. It should be noted that the RPP fund does not operate at full cost recovery. Since FY 2014 approximately $1.4 million in General Fund subsidies have been required to maintain financial solvency of the RPP Fund, including a subsidy of $680,000 in FY 2020. In order to continue to support program operations and service levels, including the costs of this contract in subsequent years, additional revenue and/or General Fund support via a subsidy to the RPP Fund will be required. This will be discussed and addressed through the FY 2024 budget process. The minor increases in cost for enforcement in the RPP areas are due to underlying area increases in labor and materials. Labor costs in the new contract are 7% higher than the last amendment of the prior contract, and each subsequent year of the new contract, the cost of labor has risen by 3%. Efficiencies achieved by the adoption of Automated License Plate Recognition technology, and the resulting updated staffing plans, though, provide the opportunity to extend this contract without increasing its not to exceed contract amount. STAKEHOLDER ENGAGEMENT Office of Transportation staff are in regular communication with RPP program customers and receive input and feedback from constituents on an ongoing basis, and can report that LAZ enforcement staff are fair professionals and a welcome addition to the City’s transportation sphere. ENVIRONMENTAL REVIEW The proposed actions are not a project under the California Environmental Quality Act (CEQA). In the event the proposed actions are deemed a project under CEQA, they are exempt under CEQA regulation 15321 (Enforcement Actions by Regulatory Agencies). ATTACHMENTS Attachment A - Amendment No. 1 to Contract C20176367 with LAZ Parking for RPP Parking Enforcement to Extend Term two years through February 2025 with no additional funds APPROVED BY: Philip Kamhi, Chief Transportation Official Vers.: Aug. 5, 2019 Page 1 of 7 AMENDMENT NO. 1 TO CONTRACT NO. C20176367 BETWEEN THE CITY OF PALO ALTO AND LAZ KARP ASSOCIATES, LLC This Amendment No. 1 (this “Amendment”) to Contract No. C20176367(the “Contract” as defined below) is entered into as of February 16, 2023, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and LAZ KARP ASSOCIATES, LLC, a Connecticut Corporation, located at One Financial Plaza, 14th Floor, Hartford, Connecticut 06103. CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of parking enforcement services for the Downtown Residential Preferential Parking (RPP) district (“Project”) and desires to engage a consultant to provide services in connection with the Project (“Services”) as detailed therein. B. The Parties now wish to amend the Contract in order to extend the term, through February 28, 2025, at no added cost to the City, for a continuation of services, as detailed herein. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term “Contract” shall mean Contract No. C20176367 between CONSULTANT and CITY, dated March 24, 2020. b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 2, “TERM”, of the Contract is hereby amended to read as follows: “The term of this Agreement shall be from the date of its full execution through February 28, 2025, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement” SECTION 3. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS. b. Exhibit “C-1” entitled “SCHEDULE OF RATES”, AMENDED, REPLACES PREVIOUS. Vers.: Aug. 5, 2019 Page 2 of 7 SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Vers.: Aug. 5, 2019 Page 3 of 9 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: City Attorney or designee LAZ KARP ASSOCIATES, LLC Officer 1 By: Name: Title: Officer 2 By: Name: Title: Attachments: EXHIBIT “C” entitled “COMPENSATION, AMENDMENT NO. 1” (AMENDED, REPLACES PREVIOUS) EXHIBIT “C-1” entitled “SCHEDULE OF RATES, AMENDMENT NO.1” (AMENDED, REPLACES PREVIOUS) Vers.: Aug. 5, 2019 Page 4 of 7 EXHIBIT “C” COMPENSATION (AMENDED, REPLACES PREVIOUS) The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all services, additional services, and reimbursable expenses shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services and Additional Services, including reimbursable expenses, within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. Year One (3/1/2020 through 2/28/2021) Cost Not to Exceed $748,672; Actuals (Services Received) $149,544 Year Two (3/1/2021 through 2/28/2022) Cost Not to Exceed $771,132.00; Actuals (Services Received) $316,328 Year Three (3/1/2022 through 2/28/2023) Cost Not to Exceed $802,481.00; Actuals (Services Received) $298,633 Years One through Three actual compensation: $764,505 Years Four through Five expected compensation: $1,557,780 Year Four (3/1/2023 through 2/28/2024) Cost Not to Exceed $842,579 Year Five (3/1/2024 through 2/28/2025) Cost Not to Exceed $715,201 Total Compensation Remains at $2,322,285 Year 1 Year 2 Year 3 Year 4 Year 5 Total Compensation (original contract) $748,672 $771,132 $802,481 $2,322,285 Actuals (services received) $149,544 $316,328 $298,633 $764,505 Unspent (Savings) $599,128 $454,804 $503,848 $1,557,780 Compensation (amendment for years 4 & 5) $842,579 $715,201 $1,557,780 Vers.: Aug. 5, 2019 Page 5 of 7 Reimbursable Expenses None Maximum Total Compensation $2,322,285.00 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: None All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. Vers.: Aug. 5, 2019 Page 6 of 7 EXHIBIT “C-1” SCHEDULE OF RATES (AMENDED REPLACES PREVIOUS) CONSULTANT shall be paid hourly for each officer and project manager that maintains a parking facility. The tables below include the payment compensation schedule for the program including pre-defined pricing for implementation of the program. The compensation tables shall remain fixed for term of the contract. Compensation Terms – Year 4-5 Compensation Terms – Year 4*** Labor Categories Est Hours Hourly Rate Extended Rate Project Manager – Direct Labor Rate 1,920 $54.79 $105,195 Overhead Rate (including Fridge, G&A and Fee) 1,920 $42.37 $81,346 Project Manager (fully burdened) 1,920 $97.16 $186,540 Parking Enforcement Officers – Direct Labor Rate 15,360 $21.63 $332,237 Overhead Rate (including Fringe, G&A and Fee) 15,360 $16.73 $256,919 Parking Enforcement Officer (fully burdened) 15,360 $38.36 $589,156 ODCs/Materials to include: bicycles/vehicles, uniforms, fuel, cellphones, and other misc. supplies N/A $55,968 Burdens and Fee G&A N/A $10,915 ODCs and Materials (fully burdened) N/A $66,883 Project Manager (1), Parking Enforcement Officers (7 FT PEOs + 1 FT Supervisor) and ODCs/Materials (all fully burdened) N/A $842,579 Compensation Terms – Year 5*** Labor Categories Est Hours Hourly Rate Extended Rate Project Manager – Direct Labor Rate 1,600 $57.53 $92,048 Overhead Rate (including Fridge, G&A and Fee) 1,600 $44.49 $71,184 Project Manager (fully burdened) 1,600 $102.01 $163,216 Parking Enforcement Officers – Direct Labor Rate 11,520 $22.71 $261,619.2 Overhead Rate (including Fringe, G&A and Fee) 11,520 $17.56 $202,291.2 Parking Enforcement Officer (fully burdened) 11,520 $40.27 $463,910.4 ODCs/Materials to include: bicycles/vehicles, uniforms, fuel, cellphones, and other misc. supplies N/A $58,767 Burdens and Fee G&A N/A $11,460 ODCs and Materials (fully burdened) N/A $70,227 Vers.: Aug. 5, 2019 Page 7 of 7 Project Manager (1), Parking Enforcement Officers (7 FT PEOs + 1 FT Supervisor) and ODCs/Materials (all fully burdened) N/A $697,353.4 +Contingency N/A $17,847.60 Total N/A $715,201 ***5% cost of living increase (based on Bay Area CPI 12/22) Year 5 shall not exceed $715,201.00 or the remaining balance of the maximum total compensation under this Agreement, whichever is lower.