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HomeMy WebLinkAboutStaff Report 2402-2689CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, April 01, 2024 Council Chambers & Hybrid 5:30 PM     Agenda Item     6.Approval of Amendments with Professional Account Management LLC, dba Duncan Solutions for Contracts C17164727 and C19171363A for a Combined Additional Amount of $60,000 (Total not to exceed of $860,000 and $767,000 respectively) and to Extend the Contract Terms to December 31, 2024 (total term of eight and five years respectively), for Parking Permitting and Citation Management Services; CEQA Status – Not a Project.​  Consent Questions City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Police Meeting Date: April 1, 2024 Report #:2402-2689 TITLE Approval of Amendments with Professional Account Management LLC, dba Duncan Solutions for Contracts C17164727 and C19171363A for a Combined Additional Amount of $60,000 (Total not to exceed of $860,000 and $767,000 respectively) and to Extend the Contract Terms to December 31, 2024 (total term of eight and five years respectively), for Parking Permitting and Citation Management Services; CEQA Status – Not a Project. RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager or designee to execute the following amendments to the referenced contracts below with Professional Account Management/dba Duncan Solutions, to include extending the end dates of both contracts to December 31, 2024: 1) Amendment #4 to Contract Number C17164727 for an addition of $60,000, updating the not-to-exceed (NTE) from $800,000 to $860,000 and originally scheduled to end April 28, 2024 for a total term of approximately eight years; and 2) Amendment #2 to Contract Number C19171363A with no addition to the existing NTE amount of $767,000 and originally scheduled to end March 31, 2024 for a total term of approximately 5 1/2 years. BACKGROUND Parking enforcement throughout the city is divided between the two departments. - PAPD is primarily responsible for timed parking enforcement in commercial zones and enforcing the state vehicle code and city municipal code throughout the city. PAPD provides enforcement with Community Service Officers. - OOT is primarily responsible for enforcing the municipal code as it relates to the Residential Preferential Parking (RPP) program. OOT contracts the parking enforcement service to a service provider (currently Laz) and manages the parking permit program. Both departments, along with the Administrative Services Customer Service/Revenue Collections team, use a service provider to process and collect fees and fines for the issued permits and citations. On May 13, 2019, the City Council heard and accepted a report with 35 recommendations to Palo Alto’s parking management. The parking study included recommendations on workplans, outreach, stakeholder process, and prioritization of programs1. This comprehensive report included, among others, establishing the OOT and evaluate the consolidation of the parking compliance functions in the Police Department and the Office of Transportation. While staff are still evaluating a consolidation plan, having OOT manage the parking contract is progress. The following is the contract history for the respective contracts totaling $1.3 million: PAPD contract C17164727: Original Contract: Effective 12/5/2016 through 11/30/2021 (5 years) not-to-exceed (NTE) of $650,0002 -Amendment #1: Effective 10/31/2021 to 4/30/2022 – 6-month extension; no change to NTE (City Manager authorized) -Amendment #2: Effective 4/30/22 to 4/29/2023 - 12-month extension; NTE increased $70,0003 -Amendment #3: Effective 4/29/2023 to 4/28/2024 – 12-month extension; NTE increased $80,0004 OOT contract C19171363: Original Contract: Effective 3/31/2019 to 3/31/2024 (5 years) NTE of $627,0005 (City Council meeting 6/24/2019 SR 10241) 1 City Council, May 13, 2019, Agenda Item #8, SR# 10247 Title: Informational Report on the Parking Work Plan That Prioritizes Implementation of the 35 Recommendations From the Municipal Resource Group (MRG) Parking Study https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=2743&compileOutputType= 1 2 City Council, December 5, 2016, Agenda Item #4, SR #7179 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-cmrs/ year-archive/2016/id-7179.pdf 3 City Council, May 23, 2022, Agenda Item #10, SR #14337https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=81902&dbid=0&repo=PaloAlto 4 City Council, April 17, 2023, Agenda Item #7, SR #2303-1156 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=2309 5 City Council, June 24, 2019, Agenda Items #5, SR #10241 https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=2713&compileOutputType= 1 - Amendment #1: Effective 6/27/2019 - no term change; NTE increased $140,000 for ALPR added to vehicles6. ANALYSIS This recommendation is part of a process to streamline the management of the City parking programs and enforcement. The Office of Transportation (OOT) and the Police Department (PAPD) have separate contracts with Duncan Solutions to administer the parking permit program (OOT) and to facilitate parking citation processing and collection (PAPD). The attached amendments with Duncan Solutions extend the term for both contracts as OOT leads a process to centralize the management of the services. The City is currently in the process of releasing a request for proposal to consolidate parking citation services to a single payment portal. Currently, the City has two separate portals for paying citations depending on where (University Ave. and California Ave. or the Residential Parking Districts) the citation is issued. By consolidating these services, staff expects to improve the user experience for the public. Not approving the extensions would jeopardize the City’s ability to enforce its parking polices and issue parking citations. The attached contract extension(s) would align the end dates for the two contracts. By extending the contract end dates, staff would have sufficient time to implement the next contract for a consolidated engagement. This would allow the departments to enhance coordination on services offered to the community, parking enforcement strategies, and to determine whether one service provider can meet the operational needs across programs. FISCAL/RESOURCE IMPACT Apart from the total not-to-exceed amount of the PAPD contract, updated to accommodate the extension, and the contract ending dates, the terms and conditions of the original contracts remain unchanged, including the original costs for services. The FY2024 Adopted Operating Budget and Capital Improvement Plan has sufficient funding for these contracts; no additional budgetary action is required. The budget for the following year will be subject to the Council’s FY 2025 budget appropriations. STAKEHOLDER ENGAGEMENT This contract was reviewed and coordinated with internal departments including legal, procurement, and financial functions to ensure alignment with City policies and procedures. ENVIRONMENTAL REVIEW Adoption of this amendment is not a project under CEQA. 6 City Council, February 22, 2021, Agenda Item #9, SR# 11492 https://www.cityofpaloalto.org/files/assets/public/v/2/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id-11492.pdf ATTACHMENTS APPROVED BY: Vers.: Aug. 5, 2019 Page 1 of 4 AMENDMENT NO. 4 TO CONTRACT NO. C17164727 BETWEEN THE CITY OF PALO ALTO AND PROFESSIONAL ACCOUNT MANAGEMENT, LLC This Amendment No. 4 (this “Amendment”) to Contract No. C17164727 (the “Contract”) entered into as of April 29, 2024 by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and PROFESSIONAL ACCOUNT MANAGEMENT, LLC, a Wisconsin limited liability company, located at 633 W. Wisconsin Avenue, Suite 1600, Milwaukee, WI 53203 ("CONSULTANT").CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract was entered into by and between the Parties hereto for the provision of parking citation processing and collection services, as detailed therein. B. The Parties now wish to amend the Contract in order to increase compensation by Sixty Thousand Dollars ($60,000) from Eight Hundred Thousand Dollars ($800,000) to a new total not-to-exceed amount of Eight Hundred Sixty Thousand Dollars ($860,000) with no increased in rates; to extend the term an additional eight months until December 31, 2024. 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. C17164727 between CONSULTANT and CITY, dated December 5, 2016, as amended by: Amendment No. 1, dated October 21, 2021 Amendment No. 2, dated April 29, 2022 Amendment No. 3, dates April 17, 2023 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 December 31, 2024, unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 3. Section 4 “COMPENSATION FOR ORIGINAL TERM” of the Contract is hereby amended to read as follows: DocuSign Envelope ID: 897BCD1A-1427-45BC-8663-AC14CD186686 Vers.: Aug. 5, 2019 Page 2 of 4 “The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, for a total not to exceed amount of Eight Hundred Sixty Thousand Dollars ($860,000). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount with no changes to Exhibit C-1, Schedule of Rates.” 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.) DocuSign Envelope ID: 897BCD1A-1427-45BC-8663-AC14CD186686 Vers.: Aug. 5, 2019 Page 3 of 4 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 PROFESSIONAL ACCOUNT MANAGEMENT, LLC. By:______________________________ Name:___________________________ Title:____________________________ Attachments: Exhibit “C-1” entitled “Schedule of Rates” DocuSign Envelope ID: 897BCD1A-1427-45BC-8663-AC14CD186686 President and CEO Tim Wendler Vers.: Aug. 5, 2019 Page 4 of 4 EXHIBIT “C-1” SCHEDULE OF RATES 2024-2025 Current Services Unit Price 4. Obtain California Registered Owner Information Included in processing cost Special Note: DMV liens are currently used as a collections tool and are included as a comprehensive collections program we reimburse the City $3.00 for every registration Optional Services Unit Price DocuSign Envelope ID: 897BCD1A-1427-45BC-8663-AC14CD186686 Vers.: Aug. 5, 2019 Page 1 of 3 AMENDMENT NO. TWO TO CONTRACT NO. C19171363 BETWEEN THE CITY OF PALO ALTO AND PROFESSIONAL ACCOUNT MANAGEMENT, LLC. This Amendment No. 2 (this “Amendment”) to Contract No. C19171363 (the “Contract” as defined below) is entered into as of March 6, 2024, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and PROFESSIONAL ACCOUNT MANAGEMENT, LLC. a Wisconsin limited liability company, located at 663 W. Wisconsin Avenue, Suite 1600, Milwaukee, WI, 53203 (“CONSULTANT”). CITY and CONSULTANT or 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 citation processing and collection services, as detailed therein. B.The Parties now wish to amend the Contract in order to Extend the term for one additional year from March 6, 2024, through December 31, 2024 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. C17164727 between CONSULTANT and CITY, dated May 20, 2019. 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 March 6, 2025, unless terminated earlier pursuant to Section 19 of this Agreement.” DocuSign Envelope ID: 2BA02728-DC44-443B-98A6-CC882EECA04E Vers.: Aug. 5, 2019 Page 2 of 3 SECTION 3. 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 4. 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.) DocuSign Envelope ID: 2BA02728-DC44-443B-98A6-CC882EECA04E Vers.: Aug. 5, 2019 Page 3 of 3 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 PROFESSIONAL ACCOUNT AMANAMENT, LLC Officer 1 By:______________________________ Name:___________________________ Title:____________________________ Attachments: NONE DocuSign Envelope ID: 2BA02728-DC44-443B-98A6-CC882EECA04E Dear Mayor and Council Members, On behalf of City Manager Ed Shikada, please see staff responses below for questions from Council Member Tanaka on the Monday, April 1 Council Meeting. Item 5: Approval of Contract Amendment Number 1 to Contract Number S24190818 with Integrated Design 360 in the Amount of $82,200 and Extension of the Contract Term through December 30, 2024 for development of a “One Margin” Reach Code. CEQA Status: Exempt Under CEQA Guidelines Section 15308 1. What specific numerical measure or quantitative description can be used to determine whether the increase in compensation for the contract aligns with the increase in the scope of work for Integrated Design 360's contract, excluding the increase in financial compensation, compared to the initial scope of the contract? Staff Response: This scope was prepared using a deliverables-based approach. To expedite work, staff prepared an initial contract with ID360. Recent Council direction to expedite and expand the initial scope requires the subject amendment. Should there be an interest in using an alternative measure of quantitative approach to renegotiate hourly rates or total costs, this action will take time and delay returning to Council before the summer recess. 2. How do you plan to introduce these reach codes amid the growing concerns raised by city council members, developers, and residents regarding the potential increase in housing costs and the construction industry, especially in the context of Silicon Valley's existing housing crisis? Staff Response: This contract amendment advances prior, unanimous, City Council direction from February 26, 2024. With the contract amendment staff will continue its Council- directed analysis of the One Margin standard. It is anticipated that in June, the City Council will have an opportunity to balance identified policy questions with the City’s expressed sustainability and carbon reduction interests. 3. What steps is the city taking to lessen the initial financial burden of the new building codes on ADUs and affordable housing, and to address concerns about the electrical grid and the higher costs of electric appliances? Staff Response: (Please see the staff response to Question 2). This contract amendment advances prior, unanimous, City Council direction from February 26, 2024. With the contract amendment staff will continue its Council-directed analysis of the One Margin standard. It is anticipated that in June, the City Council will have an opportunity to balance identified policy questions with the City’s expressed sustainability and carbon reduction interests. Item 6: Approval of Amendments with Professional Account Management LLC, dba Duncan Solutions for Contracts C17164727 and C19171363A for a Combined Additional Amount of $60,000 (Total not to exceed of $860,000 and $767,000 respectively) and to Extend the Contract Terms to December 31, 2024 (total term of eight and five years respectively), for Parking Permitting and Citation Management Services; CEQA Status – Not a Project. 1. Considering the significant impact of parking citation processing and collection services on our community members, what specific actions, if at all, has the city taken to engage constituents in the decision-making process regarding the extension of Duncan Solutions' contract? Staff Response: Historically, contract extensions requiring council approval, related to regular ongoing city operations, are reported on the City Council meeting agenda ten days in advance of the public meeting along with a staff report with context. The City uses the standard engagement process for community members to write in about the agenda topics or speak during public comment for these kinds of matters. As written in the staff report, the City is currently in the process of releasing a request for proposal to consolidate parking citation services to a single payment portal in the future. 2. How has the city ensured that our residents' and businesses' feedback and concerns have been adequately considered and addressed before moving forward with this extension? Staff Response: (Please see the staff response to Question 1). Historically, contract extensions requiring council approval, related to regular ongoing city operations, are reported on the City Council meeting agenda ten days in advance of the public meeting along with a staff report with context. The City uses the standard engagement process for community members to write-in about the agenda topics or speak during public comment for these kinds of matters. As written in the staff report, the City is currently in the process of releasing a request for proposal to consolidate parking citation services to a single payment portal in the future. 3. Given the importance of ensuring value and efficiency in public contracts, particularly in parking management services where companies like Duncan Solutions and its numerous competitors operate, explain the rationale behind the city's decision-making process for not engaging in a competitive bidding process for this contract extension. Staff Response: As written in the staff report, contract extensions recommended relate to extending existing engagements and align the end dates for the two contracts to provide sufficient time to implement the next contract for a consolidated engagement. The City is currently in the process of releasing a request for proposal to consolidate parking citation services to a single payment portal in the future. 4. What data and empirical evidence can residents of Palo Alto rely on to ensure confidence that this approach secures the best possible deal for our constituents, considering the potential for technological innovation, service quality, and cost-effectiveness offered by other firms in the industry? Staff Response: As written in the staff report, not approving the extensions would jeopardize the City’s ability to enforce its parking polices and issue parking citations having an operational and financial ramifications. These limited extensions of less than one year provide sufficient time to implement the next contract for a consolidated engagement. The City is currently in the process of releasing a request for proposal to consolidate parking citation services to a single payment portal in the future which includes a solicitation process through a web-based solicitation platform followed by a regimented evaluation process. Item 8: SECOND READING: Adopt a Revised Interim Ordinance to Extend the Interim Parklet Program to July 31, 2024 (from March 31, 2024) and Phase-in Enforcement of the Ongoing Parklet Program through November 1, 2024; and Extend Parking Lot Eating/Drinking Uses to December 31, 2024; CEQA Status- Categorically Exempt (Sections 15301 and 15304(e)) (FIRST READING: March 11, 2024 PASSED 7-0) 1. Given the importance of maintaining traffic flow and ensuring prompt access for emergency services, how does the city plan to mitigate the potential negative impacts on local traffic and emergency response times and public space availability resulting from the increased use of street spaces for dining and retail activities, especially in areas where parklets might significantly reduce road width or obstruct emergency vehicle routes? Staff Response: The parklet areas are limited to the existing parking spaces and do not encroach on the travel lanes, therefore they are not expected to impact traffic flow or access for emergency services. 2. What plans are in place to address situations where emergency vehicles cannot navigate densely populated parklet areas, which could be exacerbated in emergency scenarios not fully anticipated by the current planning process? Staff Response: As stated in the response to Question #1, parklet areas on streets that have car traffic are limited to the existing parking spaces, so emergency vehicles will continue to have access. On the portion of Ramona Street that is closed to vehicular traffic and the parklet program applies, an emergency access lane has been painted down the center to allow access for emergency vehicles. 3. How does the city plan to ensure fairness and equal opportunity for all businesses under the proposed parklet program extension, especially for those businesses that lack immediate access to outdoor spaces or are situated in areas where setting up parklets is not feasible due to space constraints, zoning regulations, or other logistical challenges? Staff Response: The use of street parking spaces for parklets or sidewalks for outdoor dining is enabled through the issuance of encroachment permits allowing the use of the City’s public right of way (ROW). Although outdoor dining benefits restaurants and the Palo Alto community, these benefits must be balanced with prioritizing the primary uses of the public ROW, which are to enable the safe passage of vehicles, bikes, and pedestrians; site essential street infrastructure such as streetlights, traffic signals, and signs; and allow access to utilities, fire hydrants, and emergency vehicles. Not every business location is suitable for siting a parklet, which is reflected in the guidelines. Some businesses unable to build parklets may be able to explore alternatives such as limited use on the sidewalk. The City is also currently working on long-term improvements which will not only allow more outdoor dining opportunities but also create a vibrant walkable downtown that will attract more patrons for all downtown businesses. 4. What specific measures or support mechanisms are being considered to assist these businesses in overcoming the inherent disadvantages posed by the policy, ensuring that the economic benefits of outdoor operations are distributed more equitably across the community? Staff Response: As noted in the response to question 3, the City is currently working on long-term improvements which will not only allow more outdoor dining opportunities but also create a vibrant walkable downtown that will attract more patrons for all downtown businesses.