HomeMy WebLinkAboutStaff Report 2303-1185CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, May 15, 2023
Council Chambers & Hybrid
5:30 PM
Agenda Item
6.Approval of a Design-Build Contract with Parking Guidance Systems, LLC in the Amount of
$4,180,217 with Authorization for the City Manager to Negotiate and Execute Change
Orders up to a Not-to-Exceed Amount of $418,022 for the Downtown Automated Parking
Guidance System, Access Controls & Revenue Collection Equipment Project, Capital
Improvement Program Project PL-15002; and Approval of a Budget Amendment in the
Capital Improvement Fund; CEQA status – exempt under CEQA Guidelines Section
15301(c)
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: May 15, 2023
Report #:2303-1185
TITLE
Approval of a Design-Build Contract with Parking Guidance Systems, LLC in the Amount of
$4,180,217 with Authorization for the City Manager to Negotiate and Execute Change Orders
up to a Not-to-Exceed Amount of $418,022 for the Downtown Automated Parking Guidance
System, Access Controls & Revenue Collection Equipment Project, Capital Improvement
Program Project PL-15002; and Approval of a Budget Amendment in the Capital Improvement
Fund; CEQA status – exempt under CEQA Guidelines Section 15301(c)
RECOMMENDATION
Staff recommends that Council:
1. Approve and authorize the City Manager, or their designee, to execute the design-build
contract with Parking Guidance Systems, LLC. (Contract No. C23180632A) in an amount
not to exceed $4,180,217 for the Downtown Automated Parking Guidance System,
Access Controls & Revenue Collection Equipment Project (PL-15002);
2. Authorize the City Manager, or their designee, to negotiate and execute change orders
to the contract with Parking Guidance Systems, LLC in an amount not to exceed
$418,022 for related additional, but unforeseen work that may develop during the
project; and
3. Amend the Fiscal Year 2023 Budget Appropriation for the Capital Improvement Fund by
(requires a 2/3 vote):
a. Decreasing the ending fund balance by $2,398,150; and
b. Increasing the Downtown Automated Parking Guidance System, Access Controls
& Revenue Collection Equipment project (PL-15002) appropriation by
$2,398,150.
EXECUTIVE SUMMARY
Since 2020, establishment of a downtown automated parking guidance system for the four
Downtown parking garages has been part of the Council-adopted infrastructure plan. The
California Avenue Parking Garage at 350 Sherman Avenue uses the INDECT parking guidance
system, which features ceiling-mounted, multifunctional camera sensors to monitor and display
the availability of parking spaces as well as parking management tools. INDECT also provides
remote monitoring and maintenance services. This system was subsequently adopted as the
standard for all City-owned garages to ensure interoperability, as well as addressing surveillance
ordinance requirements. However, a contract with this company for design and installation was
cancelled due to state contractor licensing difficulties.
This report recommends award of a design-build contract with Parking Guidance Systems, LLC.,
a qualified licensed contractor in California, for the installation of automated parking guidance
systems at all four City-owned downtown garages. This includes contingency funding for
unforeseen work, as well as a budget appropriation amendment to fund the project.
BACKGROUND
The Downtown Automated Parking Guidance Systems, Access Controls & Revenue Collection
Equipment project (PL-15002) provides funding to address infrastructure and capital
improvements for City-owned parking facilities. This includes design and installation of new
parking guidance systems at the four Downtown parking garages.
In June 2014, City Council adopted the 2014 Council Infrastructure Plan that prioritized and
provided a funding plan for projects including the Public Safety Building and the California Avenue
Parking Garage. Later, in 2020, Council added the Downtown Automated Parking Guidance
System, Access Controls & Revenue Collection Equipment Project (PL-15002) to the 2014 Council
Infrastructure Plan, as a part of the Fiscal Year 2020 Capital Budget.
The California Avenue Parking Garage at 350 Sherman Avenue uses the INDECT parking guidance
system to provide drivers with an enhanced parking experience. This system features ceiling-
mounted, multifunctional camera sensors that can monitor and display the status of up to six
parking spaces, with three on each side of the parking aisle. Integrated LED indicators within the
sensor casing display space availability and the type of parking permitted. The sensors provide
detailed parking reports, audits, and performance analysis to help the Office of Transportation
continually improve parking efficiency. Additionally, the system provides custom signage, a
customizable mobile application, and potential license plate recognition capabilities. INDECT also
provides remote monitoring and maintenance services.
In assessing the needs of the Downtown parking garages, staff reached out to subject matter
experts (Watry Design Inc. and Dixon Resources Unlimited) in November 2019 on the parking
guidance system technologies who recommended that the City pursue the same camera-based
technology installed at the New California Avenue Parking Garage project (PE-18000).
Staff visited two parking garages at the City of Walnut Creek and the City of Berkeley with the
INDECT system installed to assess its capabilities. The system appeared to be functioning at a
high level and met the City’s standards and desired capabilities. Based on recommendations from
subject matter experts and staff’s research, the INDECT parking guidance system has all the
capabilities that the City requires to modernize its parking program.
In July 2020, as authorized under PAMC Section 2.30.360(e), the City Manager approved a
standardization exemption from the City’s competitive solicitation requirements to procure the
INDECT parking guidance system, so the City would have the same parking system across all City-
owned garages.
In November 2020, Council approved the surveillance policy and use of a parking guidance system
for future installations at other City-owned parking garages 1.
In August 2021, Council approved a design-build contract with INDECT USA (INDECT), Contract
No. C211806322 to install the INDECT parking system. However, INDECT USA, based in Colorado,
could not obtain Engineering and Contracting licenses in the State of California. As a result, the
contract with INDECT USA was cancelled and another procurement initiated.
ANALYSIS
Project Description
Staff developed a scope of services for a design-build project with assistance from the Office of
Transportation and Dixon Resources Unlimited, a consulting firm with expertise in this area. By
involving a single design-build entity, the goal is to reduce change order and schedule risk as the
design-build team and construction contractor work together to provide an outcome within the
City’s constructability and budget parameters.
The Design-Build delivery method is recommended instead of the Design-Bid-Build method for
this project, as the design and construction processes in the Design-Build approach offer greater
integration across these phases. In Design-Bid-Build, each phase of design, bid, and construction
is implemented separately, whereas in Design-Build, the phases can overlap to help ensure quick
delivery. The scope of the recommended Design-Build project consists of design, procurement,
fabrication, installation, testing, and implementation, including furnishing all material,
equipment, labor, and supervision for a new fully operational parking guidance system. The scope
also includes digital wayfinding signage.
1 City Council, November 2, 2020; Agenda Item #7, SR #11666,
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2020-2/id-11666.pdf
2 City Council, August 9, 2021, Agenda Item #3, SR #11680;
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2021/id.-11680.pdf
Under this proposed Design-Build contract, the contractor will design and install automated
parking guidance systems at four downtown area garages. The scope includes preliminary design
submittals, construction documents, electrical connections, permitting, and purchase and
installation of all supplies, materials and equipment to provide a turn-key system. The Design-
Build process is expected to take 16 months from the date of the contract notice to proceed.
Additionally, staff intends to enter into a separate contract with INDECT for ongoing service,
maintenance, and online hosting of the parking guidance system software for the four garages
included in this design-build contract, and for the California Avenue Parking Garage. Staff will
return to Council for approval of the ongoing services contract.
Procurement Process
On June 15, 2022, the City released a design-build request for proposal (RFP 180632A) through
the City’s PlanetBids eProcurement system. The bidding period was 48 calendar days. The City
received one proposal from Parking Guidance Systems, LLC.
Bid Name/Number Automated Parking Guidance System (APGS)
Design-Build Project/RFP #180632A
Proposed Length of Project 16 months
Number of Consultants Contacted 12
Number of Builder Exchanges 8
Number of Websites 1 (PlanetBids)
Number of Days to Respond 48 days
Number of Proposals Received 1
Responding Companies Parking Guidance Systems, LLC
Proposed Fee Range $4,180,217
The design-build contract includes all four downtown area parking garages:
▪Garage S/L (Bryant/Lytton) – 445 Bryant Street
▪Garage CW (Cowper/Webster) – 520 Webster Street
▪Garage R (Alma/High) – 528 High Street
▪Garage CC (Civic Center) – 250 Hamilton Avenue
A bid was received from Parking Guidance Systems, LLC in the amount of $4,180,217 for all four
downtown garages. Staff reviewed the submitted proposal and recommends acceptance and
approval of Contract No. 23180632A3 with Parking Guidance Systems, LLC for all four downtown
garages. The construction contingency amount of $418,022, which approximately equals ten
3 Parking Guidance Systems, LLC Design-Build Contract for Automated Parking Guidance Systems No. C23180632A;
https://www.cityofpaloalto.org/files/assets/public/public-works/engineering-services/cip-
contracts/c23180632a_parking-guidance-systems_db_05.15.2023_staff-report.pdf
percent of the total contract value, is requested for related, additional, but unforeseen work,
which may arise during the project, implemented via City-approved change orders.
Staff confirmed with the Contractor’s State License Board that the contractor has an active
license on file. INDECT USA is a subcontractor of Parking Guidance System, LLC.
FISCAL/RESOURCE IMPACT
The total contract with Parking Guidance Systems, LLC is $4,598,239. Staff recommends
increasing the Fiscal Year 2023 budget appropriation for the Downtown Automated Parking
Guidance System, Access Controls & Revenue Collection Equipment project (PL-15002) by
$2,398,150 using Capital Improvement Fund reserves to award the attached contract and provide
additional funds for project administrative costs including permit fees, printing and project
outreach. A transfer of $4 million in surplus General Funds was transferred to the Capital
Improvement Fund in the FY 2023 Mid-Year Budget in alignment with Council policy and in
anticipation of this needed budget appropriation action.
Not included in this design-build contract is the ongoing annual cost for INDECT’s service,
maintenance, and online hosting of the parking guidance system software, the amount of which
is anticipated to be approximately $156,000 annually (excluding City of Palo Alto fiber fees). This
contract will cover the first twelve months of service, maintenance, and online hosting of the
parking guidance system software. Staff will return to Council for approval of an ongoing services
contract. Staff expects that the ongoing services contract will be paid for by the respective
parking funds.
STAKEHOLDER ENGAGEMENT
Outreach will be done during construction including updates to the City’s website and
NextDoor posts as well as direct outreach to parking garage users including signage at garages
and email updates.
ENVIRONMENTAL REVIEW
This project is categorically exempt under CEQA Section 15301(c) for minor alterations of
existing public facilities. Therefore, no further environmental review is necessary.
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer