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Central
r PARKING
March 27, 2013
The Honorable Mayor and City Council
City of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701
RE: RFP 12-060 - Central Parking
Dear Mayor Pulido and Council members:
Central Parking
3420 Bristol Street
Suite 225
Costa Idesa, CA 92626
Phone: 714 7512855
I^ ax: 714 7.51 3650
Website: wsvw.patlang.mm
This letter is to provide you with further details on questions raised during the Council approval and review
process of the staff recommendation for RFP 12-060.
COST DIFFERENTIAL BETWEEN CENTRAL PARKING BID AND INCUMBENT
Major cost difference Is in labor cost between the two bids. Here are the reasons why;
+ Labor Cost - Central Parking's proposed labor hours for Union Employees are based on the RFP
provided schedules and requirements. Central bid 580 hours per week or 30,160 annually. Incumbent
appears to have bid significantly less hours than required in the RFP which Impacts union members'
benefits as well. While the incumbent is currently operating per the schedules provided in the RFP, they
are proposing less hours in their bid. We are signatories to the same Collective Bargaining Agreement as
other bidders and are required to retain all union employees with benefits.
+ Union Wage Rates and Increases -Our proposed wage rates are derived straight from the union
provided roster of actual current wages. Our labor cost also incorporates a union wage increase of $0.35
cents expected in June 2013 per CBA.
+ Pass through Expenses - Other line items are pass-through expenses and our proposed budget
assumed industry standard estimated costs. All pass through expenses will require City staff approval
prior to incurring and payment of such expense and our goal will be to obtain up to three competitive bids
for all expenses of over $250 to capture the best price for the City.
REDUCTION IN MANAGEMENT FEE
Section XVIII - Con tractor Selection - Proposal and Evaluation allows the City to negotiate pricing with the
recommended bidder. First, the selection committee ranked Central Parking as the top bidder. After the
selection process, staff requested us to reconsider our proposed fee. We were able to lower our fee by
absorbing the cost of ancillary services including web based reporting and marketing tools that are
typically added on to our fee.
Please do not hesitate to contact me should you need additional information.
Sincerely,
Muham ad A. Mansoor
Region I Manager
CM 04/01/13
25A