0TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Dan Adams, Chief of Police
1. Subject
title
Award of Contract to SP Plus Corporation for Parking Enforcement Services; Bid No. 23-24.23.
body
2. Summary
Five bids for Parking Enforcement Services, Bid No. 23-24.23, were received and opened on February 1, 2024. The most qualified bidder is SP Plus Corporation of Los Angeles, California in the amount of $2,493,271 for a five-year agreement.
3. Recommended Action
recommendation
Approve the contract with SP Plus Corporation in the amount of $2,493,271 for Parking Enforcement Services; and authorize the Mayor and City Clerk to execute on behalf of the City.
end
4. Fiscal Impact
The expense for this contract is $2,493,271 and will be funded through General Fund (100):
100.4041.51670.00000 Other Professional & Consulting Services
5. Strategic Plan Goals
Goal 1: Provide for a safe community
a: Provide staffing and resources to deliver services that ensure public safety.
Goal 2: Be a fiscally healthy community
b: Analyze future fiscal needs and potential revenue opportunities.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
6. Discussion and Background
The Orange Police Department Traffic Bureau oversees Parking Control Officers who are responsible for issuing parking citations to violators of the Orange Municipal Code (OMC) and California Vehicle Code (CVC). These types of violations include, but are not limited to, illegal parking in restricted areas, street sweeping, permit parking, and disabled parking. The duties of a Parking Control Officer are difficult due to very few positive interactions with the public. As a result, parking enforcement has seen a steady decline in personnel and an increase in the number of service requests.
Staff assesses parking enforcement operations on an ongoing basis to identify deployment and service needs. Since 2021, staff has identified key deficiencies and compared the City of Orange with other similarly sized city parking enforcement programs. The main obstacle the Traffic Bureau is facing is reduced and inadequate staffing levels. To address these challenges and better prepare for future impacts, staff recommends outsourcing a portion of the city’s parking enforcement services. A balanced combination of city staff and contracted services will provide the highest efficiency and flexibility while meeting the needs of residents, businesses, and customers. With contracted staff, the city will maintain five full-time and two part-time parking enforcement officers within the Orange Police Department while utilizing five part-time checkers and one supervisor, contracted staff for parking citation issuance. The city and its residents benefit from parking enforcement staff that is comprised of individuals who are technically proficient, experienced, and highly motivated in a professional field that requires specialized skills. Parking enforcement is frequently requested by city residents and businesses near commercial areas, schools, and residential parking districts. Through this contract, there will be up to 13 parking enforcement officers/checkers to assist with parking enforcement responsibilities citywide.
The Police Department solicited a Request for Proposal (RFP 23-24.23) which was posted and distributed on January 5, 2024. RFP 23-24.23 was open for approximately 27 days, with a closing date of February 1, 2024. Five proposals were received from prospective parking enforcement firms and all vendors were invited to take part in the interview evaluation. Each proposal was carefully reviewed, evaluated, and scored/rated by the Police Department. The results of that process yielded SP Plus Corporation as the top ranked firm. From highest to lowest rating, the rankings are as follows:
1. SP Plus Corporation
2. LAZ Parking California, LLC
3. Inter-Con Security
4. Allied Universal Security Services
5. Patrol Master
Each evaluation committee member scored each company based on the criteria in the following table. The table below also provides the average total score received by each vendor, ranked from high to low.
|
Rating Criteria |
Max Points |
SP Plus |
LAZ Parking |
Inter-Con |
Allied Universal |
Patrol Master |
|
Service Requirements |
25 |
23 |
21.3 |
21 |
15.3 |
13.3 |
|
Qualifications of Personnel |
25 |
23 |
22.7 |
21 |
20 |
16 |
|
Prior Experience |
25 |
23 |
22.7 |
21 |
17.7 |
11.7 |
|
References |
15 |
15 |
15 |
15 |
13.3 |
5.7 |
|
Facility & Equipment Requirements |
10 |
10 |
9.7 |
8.7 |
10 |
5.3 |
|
Total Score |
100 |
94 |
91.3 |
86.7 |
76.3 |
52 |
The proposal by SP Plus was rated the highest by the evaluation committee based on the rating criteria in the RFP. SP Plus demonstrated that they have a high-level parking enforcement management team that understands the needs of our city, proven skills, and experience using state-of-the art technologies for effective enforcement. SP Plus is certified by the International Parking Institute as an Accredited Parking Organization with Distinction, which represents the top 5% of the industry. SP Plus employs approximately 20,000 employees, operates 3,600 facilities, manages over 2.1 million parking spaces, and operates in 350 cities. Agencies that utilize SP Plus for parking enforcement services in Orange County include the cities of Anaheim and Fullerton.
Under this contract, SP Plus will provide parking enforcement staff to enforce OMC parking regulations city-wide with an emphasis on street sweeping enforcement. There are five street sweepers handled by CR&R that cover 47 routes broken into coverage that exists Monday through Thursday with varying times. Parking enforcement hours will be tailored to the needs of the city, and at a minimum, provide eight hours per day, four days a week. The city has the ability, at any time, to decrease the number of enforcement officers, expand the covered area, and adjust the enforcement schedule.
The city currently contracts with Data Ticket, Inc. (DTI) for parking permit and citation processing services. As a data processing company, DTI also provides a wide variety of handheld ticket writers, software, and printers used to issue citations. To ensure contracted parking enforcement checkers are utilizing the most effective and efficient equipment and technologies, the city, through DTI, will provide parking enforcement checkers with new handheld ticket writers and printers procured through a purchase or lease agreement with DTI. DTI does not contract with third-party vendors and will only contract with the city. The cost of handheld devices and equipment will net against revenue generated through parking enforcement services. In addition, new hybrid vehicles, Toyota Prius LE, will be provided by the contractor and are equipped with a fixed and permanent amber/white LED lightbar, safety triangles, flares, cones, smart drive device, first aid kit, fire extinguisher, and reference binder containing standard operating procedures and ordinances. All vehicles used by contracted staff will be clearly identifiable as performing parking enforcement for the City of Orange.
SP Plus anticipates a 90-day transition upon contract execution. This transition includes vehicle lease, procurement and implementation of new handheld devices and printers, and hiring and training of parking enforcement staff. Pricing is based on an hourly cost for services including direct and indirect costs for labor, overhead, incidental supplies, travel, mileage, and fuel. The total five-year expense of $2,493,271 also factors up to 3% annual escalation for personnel wages.
The number of citations issued per checker is subjective and will vary amongst parking enforcement personnel. Of the parking citations issued, approximately 30% of parking citations are unpaid, paid late with late fees, or sent to collections. The revenue collected per month is a combination of current and past due citations and will vary each month. Similarly, corresponding processing and county fees of approximately 10% and 18% respectively, are collected with net proceeds paid to the city. The city anticipates increased issuance of citations in the first year. However, as parking enforcement improves citations issued may decrease as will the net revenue received and corresponding fees.
At best, net proceeds for 10,000 citations paid per year is approximately $468,000 per checker or $2,340,000 for five checkers per year. Due to supervisory responsibilities, the expected revenue generated for a supervisor is anticipated to be half of a checker or $234,000 annually. Projections are based on volume generated by current part-time parking enforcement staff and does not include current city parking enforcement contribution. Over a five-year period, the total anticipated net revenue generated by five parking enforcement checkers and one supervisor is expected to range between $8 and $10 million.
Staff is requesting approval of the parking enforcement agreement with SP Plus Corporation in the amount of $2,493,271. This expense will be included as a budget decision package beginning in Fiscal Year 2024-2025.
7. ATTACHMENTS
• Agreement with SP Plus Corporation