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HomeMy WebLinkAboutCORRESPONDENCE_25A_BARNETTy d ?? b E P A R KI N G C O N C E P T S IN C. TM March 20, 2013 Honorable Miguel A. Pulido Mayor, City of Santa Ana City Hall 22 Civic Center Plaza Santa Ana, CA 92701 Dear Honorable Mayor Pulido: Thank you for taking the time to meet with me, our manager, Diego Alvarez and Lyle Overby to discuss the recent UP costs for your parking facilities in Santa Ana. As your present operator, we sincerely thank you for the opportunity to manage your facilities for the past five years. During the meeting, you challenged me to present the types of RFP specifications that achieve protections for the city that would also strengthen the UP in area of casts and reimbursements. When these areas are unclear, this is what can cause wide variations in responses. If the suggestions herein are deployed in a new RFP, that would also make it a level playing field for all responders and give the City ways to insure that the operators live up to their budgeted expense proformas. I have attached a spreadsheet that itemizes detailed expenses and clarifications. I suggest that the operator be penalized if one of these line items is exceeded by more than three percent, without prior approval from your department, and that the City may take the overrun out of the management fee. To fully protect the city, a letter of credit should be required out of which reimbursement overruns could be collected. The Letter of Credit that each operator should have to provide the City is $100,000.00 considering the reimbursements are running at or in excess of $1 million per year. Per the above, if the budgeted items for security, landscaping, painting, power washing and sweeping are supplied by the operator, they must guarantee their budget. If the services are provided by an outside contractor, then the contractor o for each service should be named and the cost should be guaranteed within 3% for o the first year. Another area of clarification is the type of vision the city has or would like options U , presented. Without some guidance or alert in the RFP, it has to be assumed that if 12 Mauchly M Irvine IM 949753-7525 m E-Mail Building I California 92618 949 753-7526 Fax parkingconceptsopcloc_com cost containment is key. In the instant case, the recommended proposer is being rewarded for proposing a 20% cost increase. The RFP process benefits from clear expectations that the city is interested in entertaining more urban solutions and management techniques and the corresponding costs. 1 believe that these types of RFP refinements would yield many more options for the city to consider and give your City a contract that you would be able to enforce and manage effectively and efficiently. Our sincere recommendation and request is to rebid this assignment with clear guidelines and enforceable provisions to identify more options and protections for the city. Sincerely, Gill BPresident Attachments - Exhibits 1 Cc: Mr. Sal Tinajero Mr. Vincent F. Sarmiento Mayor Pro Tern - Ward 6 Councilmember - Ward 1 Ms. Michele Martinez Ms. Angelica Amezcua Councilmember - Ward 2 Councilmember - Ward 3 Mr. P. David Benavides Mr. Roman Reyna Councilmember - Ward 4 Councilmember - Ward S Sonia R. Carvalho Nancy T. Edwards City Attorney Interim Executive Director Comm. Development Agency Kevin O'Rourke Gabriela P. Lomeli Interim City Manager Project Manager Comm. Development Agency 173 12 Mauchly Avenue, Building I ® California 92618 ® s9497537625 aga 753 7526 Fax Note: if Operator expense (except for direct labor costs), cost Is guaranteed at proposed bid, and not to exceed, forth ree years. If contracted expense, cost cannot increase by more than 3% per annum, without prior written approval by City.