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August 9, 2022
ITEM TITLE
Agreement and Appropriations: Approve an Agreement with Ace Parking for Parking Management and Enforcement in the Downtown Parking District and Maintenance Services for the Towne Center Parking Structure and Appropriate Funds For That Purpose
Report Number: 22-0222
Location: Downtown Parking District & Towne Center Parking Structure Department: Finance
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Adopt a resolution approving an agreement with Ace Parking for parking management and enforcement in the Downtown Parking District and maintenance services for the Towne Center Parking Structure in an amount not to exceed $2,064,555 for up to five years a nd appropriating $20,000 from the Parking Meter Fund to reflect the new agreement amount. (4/5 Vote Required)
SUMMARY
The City issued a request for proposal for parking management and enforcement services for the Downtown Parking District and maintenance services for the Towne Center Parking Structure. Three bidders submitted proposals. After an evaluation, a selection co mmittee recommended Ace Parking. In this action, staff recommends approval of a two -year agreement with Ace Parking with up to three (3) one -year renewal options. Staff also recommends an appropriation of $20,000 from the Parking Meter Fund to reflect the new agreement amount with Ace Parking.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project ” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the P a g e | 2
environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
Chula Vista Municipal Code Sec tion 10.62.010.B authorizes the City to enter into a contract with a duly qualified company approved by the Chief of Police to provide enforcement of infraction violations of specified chapters of the Chula Vista Municipal Code (CVMC): 10.52, stopping, sta nding and parking; 10.56, parking meters, parking meter zones and permit parking; and 10.60, loading zones.
The City has contracted for parking management and enforcement services in the Downtown Parking District since 2009. The City Council awarded Ace Parking the initial contract for parking management and enforcement services in the Downtown Parking District in 2009, and Ace Parking has provided these services since. Additionally, t he City Council awarded Ace Parking the initial contract for parking m aintenance services in the Towne Center Parking Structure in 2020, and Ace Parking has provided these services since.
The Downtown Parking District is the only parking district in which the City contracts for parking enforcement. The Downtown Parking District is bordered by E Street, Del Mar Avenue, H Street and Garrett Avenue. It provides more than 1,400 parking spaces through surface parking lots, street metered spaces, and a parking structure.
The City issued a request for proposal (RFP) for parking m anagement and enforcement services in the Downtown Parking District, and maintenance services for the Towne Center Parking Structure that closed in May 2022. Ace Parking, LAZ Parking and SP Plus Corporation submitted proposals in response to the RFP.
The City’s selection committee has reviewed and scored the proposals and recommends the award be made to Ace Parking. As required by the CVMC, Chief of Police Roxana Kennedy is in favor of the recommendation.
Staff is recommending the City enter into an initial twenty-three-month agreement from August 1, 2022 to June 30, 2024 with Ace Parking with up to three (3) one-year renewal options for a total of five (5) years. If the City exercises an option to extend, each extension will result in an increase of five (5) percent for each extension. Staff is also recommending an appropriation from the available balance of the Parking Meter Fund in the amount of $20,000 to reflect the new agreement amount.
The following table reflects the anticipated yearly expens es for parking management, maintenance and enforcement services in the Downtown Parking District and Towne Center Parking Structure, assuming the agreement is approved and all extensions are authorized.
Description YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Downtown Parking District $ 277,878 $ 291,772 $ 306,361 $ 321,679 $ 337,763 Towne Center Parking Structure $ 95,754 $ 100,542 $ 105,569 $ 110,847 $ 116,390 Total Expenses $ 373,632 $ 392,314 $ 411,930 $ 432,526 $ 454,153
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The entire amount for this agreement is $2,064,555 if all extensions are executed.
It is anticipated that the revenues generated in the Downtown Parking District will be sufficient to cover the expense of the agreement.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found that Mayor Salas has real property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, pursuant to California Code of Regulations Title 2, sections 18700 and 18702.2(a)(7), this item presents a disqualifying real pr operty-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.) for the above-identified member.
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Revenues and expenditures related to the Downtown Parking District are accounted for in the Parking Meter Fund. The following table reflects the anticipated yearly expenses for parking management, maintenance and enforcement services, assuming the agreement and is approved and all extensions are authorized.
Description YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Downtown Parking District $ 277,878 $ 291,772 $ 306,361 $ 321,679 $ 337,763 Towne Center Parking Structure $ 95,754 $ 100,542 $ 105,569 $ 110,847 $ 116,390 Total Expenses $ 373,632 $ 392,314 $ 411,930 $ 432,526 $ 454,153
The fiscal year 2023 budget for contractual services is insufficient to fund the new amount for year 1 of this agreement. Staff recommends appropriating an additional $20,000 in the current fiscal year from the available fund balance of the Parking Meter Fund for this purpose.
ONGOING FISCAL IMPACT
The Ace Parking agreement will result in an annual increase to the Parking Meter Fund budget to account for the annual increases for these services . The Parking Meter Fund budget will be adjusted accordingly and these changes will be considered by the City Council as part of the normal annual budget process.
It is anticipated that revenues generated in the Downtown Parking District will continue to be sufficient to cover the ongoing expenses related to the Ace Parking agreement.
ATTACHMENTS
1. Ace Parking Two Party Agreement FY23 – FY24
Staff Contact: Sarah Schoen, Director of Finance
Meya Alomar, Revenue Manager