TO: Mayor and Commissioners
FROM: Dale S. Sugerman, Ph.D., Assistant City Manager
THROUGH: Chief Neal de Jesus, Interim City Manager
DATE: May 16, 2017
Title
AWARD OF AN AGREEMENT TO LANIER PARKING METER SERVICES, LLC D/B/A LANIER PARKING SOLUTIONS FOR COMPREHENSIVE PARKING MANAGEMENT SERVICES IN AN ANNUAL NOT-TO-EXCEED AMOUNT OF $656,308.84 (ADDENDUM)
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Recommended Action:
Recommendation
Motion to Award an agreement to Lanier Parking Meter Services, LLC d/b/a Lanier Parking Solutions in an annual not-to-exceed amount of $656,308.84 for Comprehensive Parking Management Services.
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Background:
On August 19, 2016, a Request for Proposals No. 2016-107 was advertised for Comprehensive Parking Management Services. On December 6, 2016 City Commission approved the ranking and authorized staff to negotiate an Agreement with Lanier Parking Meter Services, LLC D/B/A Lanier Parking Solutions (Lanier).
Staff elected to utilize the Management Services Fee plus Expenses model for this Agreement. Under this option, Lanier will be paid a flat fee for management services plus direct operating expenses to be reimbursed by the City. All expenses must be pre-approved by the City and will require detailed expenditure data and supporting documentation with the payment request.
Staff was successful in negotiating an $18,000 credit from Lanier toward equipment purchases and lowering the interest rate on amortized equipment from 9.35% to 6.99%, as well as removing the costs for non-essential line items such as additional parking boots, a consulting service fee, an additional pressure washer, and office furniture. The City agreed to directly purchase various items such as cell phones and office equipment rather than reimburse Lanier, further reducing expense costs. Negotiations also included increasing Lanier's staffing for special events and enforcement to ensure adequate coverage and execution of responsibilities. The expense budget was also modified to include additional wayfinding signage for locating the parking facilities.
Under this Agreement, Lanier's annual flat fee for management services will be $30,000 per year, and the reimbursable expenses are not-to-exceed $580,000 per year, which includes a total not-to-exceed amortized amount of $46,308.84 per year for the purchase of capital equipment throughout the agreement term and an additional $5,000 per year for a performance incentive bonus. The incentive bonus is subject to Lanier meeting key performance indicators set forth by the City.
The City is projecting over $2,500,000 per year in net revenues for parking during the agreement term.
This recommendation complies with the City Code of Ordinances, Chapter 36, Section 36.02 (A)(2), “Request for Proposals, Requests for Qualifications, Requests for Letters of Interest.”
City Attorney Review:
Approved as to form and legal sufficiency.
Finance Department Review:
Finance recommends approval.
Funding Source:
Funding is available from account number 001-3151-545.34-90 (General Fund: Other Contractual Services).