City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: DECEMBER 12, 2023 FROM: PUBLIC WORKS DEPARTMENT WARD: 1
SUBJECT: APPROVE THE FIRST AMENDMENT TO THE AGREEMENT FOR PARKING ACCESS AND REVENUE CONTROL EQUIPMENT WITH TIBA PARKING SERVICES, LLC., A GEORGIA LIMITED LIABILITY COMPANY, FOR A SIX-YEAR PERIOD WITH TWO OPTIONAL TWO-YEAR EXTENSIONS, IN THE AMOUNT OF $574,295.25 FOR A TOTAL CONTRACT AMOUNT OF $1,883,840.04; AUTHORIZE CHANGE ORDER AUTHORITY UP TO 10% OR $188,384.00, FOR A TOTAL AMOUNT OF $2,072,224.04; AND AUTHORIZE A SUPPLEMENTAL APPROPRIATION FROM THE PUBLIC PARKING FUND IN THE AMOUNT OF $395,075.25 – SUPPLEMENTAL APPROPRIATION ISSUES:
Approve the First Amendment to the Agreement for Parking Access and Revenue Control Equipment to add removal of existing equipment, purchase and installation of new equipment, and annual service and maintenance for Garages 1 and 2 to the existing contract with TIBA Parking Services, LLC., a Georgia limited liability company, for a six-year period with two optional two-year extensions, in the amount of $574,295.25 for a total contract amount of $1,883,840.04 for all five garages covered under this amended agreement; authorize a change order authority up to 10% or $188,384.00 for a total amount of $2,072,224.04; and authorize a supplemental appropriation from the Public Parking Fund in the amount of $395,075.25.
RECOMMENDATIONS:
That the City Council:
Approve the First Amendment to Agreement for the removal of existing equipment and the installation and annual maintenance of Parking Access and Revenue Control Equipment in Garages 1 and 2 with TIBA Parking Services, LLC., for a six-year period with two optional two-year extensions, in the amount of $574,295.25 for a total contract amount of $1,883,840.04; and Authorize change order authority up to 10% or $188,384.00 for a total amount of $2,072,224.04 for additional maintenance and services due to unforeseen conditions; With at least five affirmative votes, authorize the Chief Financial Officer or designee, to record a supplemental appropriation in the amount of $395,075.25 from the Parking Fund available working capital to the Parking Fund, PARCS-Parking Access Revenue Control System Project account; and Authorize the City Manager, or designee, to execute the agreement with TIBA Parking Services, LLC., including making minor and non-substantive changes.
BACKGROUND:
On February 25, 2020, the City of Riverside published RFP No. 1955 Downtown Parking Garage – Parking Access and Revenue Control System (PARCS) Replacement. The scope of services for the RFP required the vendor to remove and replace existing equipment and install a fully functioning PARCS for up to five Downtown Riverside Parking Garages with state-of-the-art parking equipment while providing on-going service and support. Even though the RFP requested a proposal for Garages 1, 2, 3, 6, and 7, the City subsequently designated Garages 1 and 2 as surplus properties and a decision was made to no longer invest in Garages 1 and 2.
On June 14, 2022, the City Council awarded RFP No. 1955 Downtown Parking Garage – Parking Access and Revenue Control System Replacement for Garages 3, 6 and 7 to TIBA Parking Systems, LLC. The agreement included service and support for six years ending on July 18, 2028, with two optional two-year extensions, in the amount of $1,309,544.79 and a 10% ($130,954.00) Change Order Authority for a total amount of $1,440,498.79.
DISCUSSION:
On July 1, 2023, the new Parking Your Way Program went into effect, which included new parking rates, new monthly permit offerings and expanded hours of operation. The parking garages typically were staffed as early as 7:00am to 7:00pm Monday to Friday. Under the Parking Your Way Program most garages now operate 24/7. The Parking Access and Revenue Control System (PARCS) equipment provides the ability for the garages to operate 24/7 with minimal staff, especially after 11:00 pm. Garages 1 and 2 currently do not operate 24/7 because they were not equipped with the PARCS system.
From July 1, 2023, to September 30, 2023, the PARCS installation for Garages 3, 6 and 7 has overwhelmingly increased the operational efficiencies, maximized revenue captured by 72%, enhanced the customer experience, and provided real-time data collection and analytics. A comparison of the monthly revenues for Garages 3, 6 and 7 before installing the PARCS equipment and after, are shown in Table 1. Based on three months of net revenue increases, the return on investment for Garages 3, 6 and 7 is expected to be approximately 16 months.
Table 1 – Monthly Revenues for Garages 3, 6 and 7 Pre/Post PARCS Installation Jan-June 2023 Avg
July 2023
Aug 2023
Sept 2023
July-Sept 2023 Avg
Revenue
% Increase
Garage 3
$36,713
$74,509
$76,101
$72,714
$74,441
103%
Garage 6
$8,830
$5,2991
$14,456
$13,089
$10,948
24%
Garage 7
$30,063
$54,193
$38,981
$41,834
$45,003
50%
Total
$75,606
$134,001
$129,538
$127,637
$130,392
72%
1 Garage 6 did not have the PARCS in operation until August 2023.
Historically, Garages 1 and 2 have been challenging to operate due to obsolete equipment, physical garage design and parking space assignments. Some fundamental operating adjustments were implemented such as consolidating/shifting monthly reserved spaces down to levels 1 to 3, consolidating/shifting daily Transient spaces up to levels 3 to 8, and relocating the Parking Ambassadors to the second level have helped control the garage traffic. These fundamental operating changes have resulted in Garages 1 and 2 capturing more revenue by controlling the traffic more effectively with one Parking Ambassador. The monthly revenues for Garages 1 and 2 before making the fundamental operating changes and after are shown in Table 2. Based on three months of net revenue increases, the return on investment for Garages 1 and 2 is expected to be approximately 12 months. While Garages 1 and 2 have been identified as surplus, the City anticipates it will retain operational control of the garages long enough to see a net return on investment; additionally, should the garages be sold the City can remove PARCS equipment for use elsewhere in the Downtown parking system or as replacements.
Table 2 – Monthly Revenues for Garages 1 and 2 – Pre/Post Fundamental Operating Changes Jan-June 2023 Avg
July 2023
Aug 2023
Sept 2023
July-Sept 2023 Avg
Revenue
% Increase
Garage 1
$16,741
$38,584
$33,931
$40,815
$37,777
126%
Garage 2
$13,209
$22,678
$28,062
$23,818
$24,853
88%
Total
$29,950
$61,262
$61,993
$64,633
$62,629
109%
Even with the fundamental operational changes in place, Garages 1 and 2 are highly reliant on the Parking Ambassadors to remind patrons to process their parking sessions through the Park Riverside app. A more effective way to operate Garages 1 and 2 is by installing the PARCS equipment. Having Garages 1 and 2 operating under the PARCS platform will deliver an improved customer experience, increase operational consistency, increase processing efficiencies, maximize revenue streams, and allow all garages to operate 24/7.
Garages 1 and 2 will be upgraded with the PARCS equipment that includes software, hardware, programming, testing, and commissioning along with integration with third party systems, which will deliver a fully functional system. The PARCS will utilize a cloud-based facility management system allowing for software updates and future system scale up. The facility management system will provide a dashboard to monitor and control garage occupancy, real-time reporting, data import/export capabilities, complete revenue control and auditing along with central credit card management. The PARCS equipment will integrate with third party license plate recognition cameras to effectively manage the entry/exit lanes, increasing revenues, increasing traffic throughput, and enhancing customer satisfaction. The PARCS equipment can interface with third party reservation firms to allow visitors to prepay for parking or make a reservation on demand.
This First Amendment complies with Purchasing Resolution 23914, Article Eleven: Purchase Order and Purchase Requisition Procedures, Section 1104 “Change Orders”, which states: “Modification to a Purchase Order shall be made only by Change Order. Subject to the availability of funds, Change Orders may be utilized for purposes of (3) modifying scope of work/services being provided, where the modification is reasonably related to the original scope of work/services.” The Purchasing Manager concurs that the recommended actions comply with Purchasing Resolution 23914.
STRATEGIC PLAN ALIGNMENT:
The contract with TIBA for the PARCS equipment aligns with Strategic Priority 6 – Infrastructure, Mobility, and Connectivity and Goal 6.2 – Maintain, protect, and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
This project aligns with the Cross-Cutting Threads as follows:
Community Trust – The City follows a transparent and fair procurement process for its contracts.
Equity – This agreement is neutral to the Equity cross cutting thread.
Fiscal Responsibility – Numerous proposals were vetted to determine the best PARCS equipment that addresses the current and future needs of the City with the most economical cost at the time of award.
Innovation – The PARCS equipment offered through the agreement is an integral part of the Parking Your Way program, which will allow parking availability to be published to visitors using third party applications.
Sustainability & Resiliency – The PARCS equipment is fully funded by the Public Parking Fund and contributes to the economic prosperity of downtown Riverside by delivering a positive experience to the downtown visitors.
FISCAL IMPACT:
The total fiscal impact of this action is $631,725.25, inclusive of $574,295.25 for the addition of Garages 1 and 2 to the contract and revised 10% change order authority, for a total revised contract amount of $2,072,224.04.
On April 18, 2023, the City Council approved a contribution of $2,000,000 from General Fund Infrastructure Reserves to the Parking Fund for deferred maintenance and structural improvements at Garages 1 and 2. Upon Council approval, a supplemental appropriation utilizing a portion of those funds will be recorded in the amount of $395,075.25, in the Parking Fund, PARCS Project account number 9912900-440301, for equipment procurement and installation. Funding for fiscal year 2023/24 annual service and maintenance in the amount of $99,049 is available in the Parking Fund’s current budget. Appropriations for future fiscal years will be included in the Public Works Department’s Budget submission and will be presented to the City Council for approval.
The total contract cost is itemized by fiscal year in Table 3 below and includes equipment procurement, installation, service and maintenance warranty, and contingency for the Parking Access and Revenue Control System. The procurement and installation costs for Garages 3, 6 and 7 have already been accrued.
Table 3—Total Fiscal Costs for PARCS Equipment, Installation, Support, and Contingency Fiscal Year
Task
Account Number
Amount
2022/23
Equipment procurement, installation (Garages 3, 6 and 7) 9912900-440301
$899,315.79
2023/24
Equipment procurement, installation (Garages 1 and 2)
9912900-440301
$395,075.25
2023/24
Annual service & maintenance warranty (All Garages)
4150000-421002
$99,049.00
2024/25
Annual service & maintenance warranty (All Garages)
4150000-421002
$115,082.00
2025/26
Annual service & maintenance warranty (All Garages)
4150000-421002
$119,368.00
2026/27
Annual service & maintenance warranty (All Garages)
4150000-421002
$125,481.00
2027/28
Annual service & maintenance warranty (All Garages)
4150000-421002
$130,469.00
As needed
10% contingency
4150000-421002
$188,384.00
Total
$2,072,224.04
Prepared by: Erik Lue, Public Parking Services Manager
Approved by: Gilbert Hernandez, Public Works Director
Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachment: First Amendment to Agreement for PARCS Equipment with TIBA Parking Services, LLC.
TIBA Parking Services LLC., First Amendment for PARCS in Garages 1 and 2 ● Page 2