2004-25460 ResoRESOLUTION NO. 2004-25460
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING,
APPROPRIATING, AND ESTABLISHING AWORK ORDER, IN THE
AMOUNT OF $2,439,250, FROM PARKING REVENUE BOND FUND
NO. 481, FOR THE PURCHASE AND INSTALLATION OF 250
MULTI-SPACE PARKING PAY STATIONS.
WHEREAS, the Parking Department has field tested the multi-space pay station
technology for an extended period of time with a leader in the industry
(Schlumberger), at no cost to the City; and
WHEREAS, this new technology has received a public acceptance rating
averaging 76% over single space parking meters; and
WHEREAS, this technology provides increased customer convenience via
multiple payment options, including coins, bills, credit cards, and debit cards; and
WHEREAS, the test period yielded an increase in revenue of 21%, as compared
to the same period in the prior year, and there are also operational cost savings
achieved through more efficient collection services and maintenance; and
WHEREAS, there are improved aesthetics for both on-street and off-street
applications, as street furniture is reduced by placing one pay station as opposed to
single space meter posts; and
WHEREAS, the City issued an RFP (request for proposals)for multi-space pay
stations on May 21, 2003 and upon review of the respondents' proposals, all were
deemed non-responsive for failures to meet one or more of the RFP's requirements;
and
WHEREAS, the Administration has been vested with the purchasing authority to
procure multi-space pay stations from Schlumberger Industries through Miami-Dade
County/Miami-Dade Transit Agency's existing contract with Schlumberger Industries
for multi-space pay stations; and
WHEREAS, the Transportation and Parking Committee has endorsed the
purchase and installation of multi-space pay stations on Monday, January 5, 2004.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDAthat the Mayor and City
Commission, upon recommendation of the Administration, herein approve a Work
Order in form approved by the Manager and City Attorney, in the amount of
$2,439,250, for the purchase and installation of 250 multi-space parking pay
stations, and it is further resolved that the amount of $2,439,250 is appropriated for
the aforestated purpose.
PASSED AND ADOPTED this 14th day of
2004
MAYOR
ATTEST:
CITY CLERK
JMG/CMC/SF
F:\PIN G~$ALL\SAU L\COMMRESOYnultispacepaystationapprpriation .res
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
Resolution No. 2004-25460
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, approving,
appropriating, and authorizing the establishment of a work order in the amount of $2,439,250
from Parking Revenue Bond Fund No. 481 for the purchase and installation of 250 multi-space
parking pay stations.
Issue:
IShould an appropriation and a work order in the amount of $2,439,250 for the purchase and
installation of 250 multi-space pay stations be approved?
Item Summary/Recommendation:
IThe Administration has researched and tested the pay and display parking operation and
associated parking equipment. This experiment has been deemed successful due to: increased
customer convenience vis-a-vis increased acceptance of payment methods, increased revenues,
improved aesthetics, and increased operational efficiencies.
Advisory Board Recommendation:
Endorsed by the Transportation and Parking Committee on their regularly scheduled meeting on Monday,
January 5, 2004. The Committee discussed the CMB Parking Smart Card "refund feature" issue
and the pay and display method's inability to accommodate the refund feature. The pay by space
method which could accommodate the refund feature was discussed; however, after discussion
regarding the advantages and disadvantages of pay and display vs. pay by space, the Committee
felt strongly that pay and display was the preferred altemative; however, an accommodation
should be afforded to Smart Card users who in the future will be unable to take advantage of the
Smart Card's refund feature. The Committee discussed various accommodations and since
intrinsically the Smart Card and particularly the "refund feature" is used by residents, the
Committee recommended that the discount currently allowed for residents be reviewed and
nominally increased as an accommodation for this inconvenience.
Financial Information:
Amount to be expended:
Source of :~?
Funds: $2,439,250 Parking Revenue Bond Fund 481
Finance Dept. i~ ~ ~
Si, n-Offs:
T:~AGENDA~003\feb2603~consenl\vice-mayor- SUM.doc
DATE /-l~-0 ~
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www. ci.miami-beach.fl.us
COMMISSION MEMORANDUM
To:
From:
Subject:
Mayor David Dermer and Date: January 14, 2004
Members of the City Commission
Jorge M. Gonzalez ~;r.~/~
City Manager
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING, APPROPRIATING, AND
ESTABLISHING A WORK ORDER IN THE AMOUNT OF $2,439,250 FROM
PARKING REVENUE BOND FUND NO. 48'1 FOR THE PURCHASE AND
INSTALLATION OF 250 MULTI-SPACE PARKING PAY STATIONS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
$2,439,250
Funds are available from Parking Revenue Bond Fund 481 for the
purpose of purchasing and installing 250 multi-space parking pay
stations. The following is an itemized listing of associated costs:
Multi-space Pay Station (250 @ $8,595):
Installation (250 @ $275):
Contingency (10%):
Total:
$2,148,750
$ 68,750
$ 221,750
$2,439,25O
PURCHASING AUTHORITY
Miami-Dade County/Miami-Dade Transit Agency Contract.
ANALYSIS
In our continued effort to improve [parking] services to residents and visitors alike, the
Parking Department is recommending the phased implementation of multi-space [parking]
pay stations. One of the Administration's goals is to enhance customer convenience of
government services. The Parking Department has researched various technologies,
methods of operation, and leading vendors in the parking industry providing multi-space
pay station technology and equipment in an effort to provide the most appropriate
application for the varying types of users within the City. The recommended method of
operation is "pay and display." Simply stated, the "pay and display operation requires three
simple steps: (1) payment, (2) pay station issuance of a receipt, and (3) user displays
receipt on vehicle dashboard. The following are some of the major advantages to the
system:
Commission Memorandum
January 14, 2004
Page 2
· Simpler operation for users.
· Simpler (less verbiage on signs by using international symbols) signage to explain
process.
· Eliminates single meter posts making the sidewalks clear and clutter free (pay by
space requires space numbers that are generally marked at a clearly visible point
either on a post in front of each space which adds clutter.
· Receipt is final proof of transaction. This is one of the major advantages of a multi-
space meter over a single space meter operation.
· Pay at any station. In pay and display, a customer may pay at any station
and display the ticket in the vehicle. The ability to pay at any station is important as
it prevents revenue loss if a station is out of order. Users do not have an excuse
and are expected to pay at the nearest station. Please note that this may apply to
either type of operations, namely "pay by space"; however, the pay stations must be
"networked". This requires expensive capital improvements, including trenching,
and laying/installing cables between machines.
· Increased revenue through: (1) increased payment options, bills, coins, credit
card/smart cards and (2) parking "time" leaves with the vehicle.
· Future Growth and Regional Compatibility: Various municipalities in South Florida
are currently using the pay and display (Schlumberger) system. Miami, Fort
Lauderdale, Hollywood, Lake Worth, Hallandale, and Pompano Beach are all
currently using Schlumberger's pay and display units. This is crucial in order to one
day achieve regional compatibility. Moreover, this also increases customer
convenience and ease of operation, enhancing chances of success for the program.
In addition, both Miami and Miami Beach would have mixed readers (for credit cards
and smart cards) allowing the possibility of a regional smart card program
enhancing customer convenience. The electronic purse may also be extended to
other services such as Miami-Dade Transit units in the future.
Competitive Bidding Process
The City's Procurement Department issued an RFP (Request for Proposals) for multi-
space pay stations on May 21, 2003. Responses were due in August 2003 and five
proposals were received. Respondents included: Schlumberger, TCS, Reino, Lexis, and
Digital Pioneer. Upon review, all proposals were deemed non-responsive due to failure to
meet one or more of the requirements of the RFP. Please note that Schlumberger was
non-responsive in only one requirement. Specifically, there was a requirement to provide a
five (5) year warranty included in the unit price. Schlumberger proposed a one (1) year
warranty and additional warranty periods at an additional cost.
The City's experience with multi-space pay stations has been very good to date. The re-
issuance of an RFP would further delay contracting and implementing of this technology.
In an effort to streamline this process yet ensure the most cost effective and appropriate
technology, the Administration evaluated other governmental agencies' contracts in an
effort to determine: (1) successful public sector experience, system capabilities, and
technology that is most appropriate for the needs of the City; and (2) the most competitive
and cost effective terms for the City.
Commission Memorandum
January 14, 2004
Page 3
Schlumberger has existing contracts with Miami-Dade County Transit Agency, Miami
Parking Authority; City of Fort Lauderdale; and the City of Hollywood (Florida). All four
agencies have reported very good results with their experience with Schlumberger's pay
stations. The Administration has since reviewed Schlumberger's contract with Miami-Dade
County/Miami-Dade Transit Agency and deemed that the City may "piggyback" on the
County's contract with Schlumberger Industries. Attached is a comparison of the cost of
the Schlumberger multi-space pay stations, which shows that the City is receiving the same
or better pricing than other governmental agencies in South Florida. Please note that the
Miami-Dade Transit multi-space pay stations do not include solar power, bill acceptors, and
mixed (card) readers which are additional optional equipment that the City is
recommending to be included in the pay station. Other public agencies have included this
equipment; however, the City is still receiving the same or better price. It is important to
note that Schlumberger's unit price is consistent with the unit price submitted in their
response to the City's aforementioned request for proposals.
In regards to the warranty issue, Schlumberger has agreed to provide a two (2) year
warranty on parts and labor from the date of installation, at no cost to the City. The City
may elect to purchase an extended warranty contract for years three, four, and five, at the
City's discretion, in year two of the standard warranty. This will allow the City to build some
history regarding maintenance, repair, and replacement of the pay stations and better
assess whether to proceed with an extended warranty or bring in-house. For informational
purposes, the extended warranty for year three to five would be $435 per year, per pay
station. This equates to $108,750 per year. The extended warranty covers labor and
parts. Conversely, if we do not extend the warranty, the labor function would be performed
with in-house staff and there would be a need to purchase and maintain an inventory of
parts. In years three through five, clearly, there would be more wear and tear. Parts would
be more prone to need repair and/or replacement. Considering the nature of the product;
replacement parts range from a few dollars to $800 for a bill acceptor and $900 for a
(credit/debit) card reader. One of the advantages of pursuing the extended warranty option
is that there are opportunities for salary savings by a workforce reduction through attrition.
To this end, the City's Parking Department in conjunction with Schlumberger Industries has
had an on-going test period since January 22, 2003, to date, at no cost to the City. Two
locations were selected as test sites for an on-street and off-street application. The on-
street application was tested on Ocean Drive between 7th and 10th Streets and the off-
street application was tested at Municipal Parking Lot 5M, located at 777-17th Street. The
results from the test period have been successful. The application of this technology
provides various conveniences as well as improvements to the existing technology. The
following are some examples:
Increased Revenues
An increase in revenue of 21% was realized when comparing the same period this year
versus last year on a year-to-date basis.
Commission Memorandum
January 14, 2004
Page 4
Public Acceptance
Two (2) surveys were conducted. Each surveyed users for seven consecutive days at two
different points in the 90 day test period which were the week of 2/1/03 and 3/1/03. The
survey results yielded an acceptance level 83% and 69% during each respective week.
Improved Aesthetics
Multi-space meters service between eight and twelve on-street spaces and up to 30 off-
street parking spaces. This improves the overall aesthetics by reducing the number of
parking meter posts required for conventional single or double space parking meters.
Increased Customer Convenience
Multi-space meters provide enhanced convenience by providing multiple payment options,
in the form of bills, coins, credit cards, and the City of Miami Beach Parking Smart Card.
Increased Operational Efficiencies
Parking Meter Collection:
Single Space Meter:
Parking meter collection is a contracted service at a unit price of $0.49 per meter
collected. The current contract with APCOA/Standard provides for an increase
or decrease of up to 25%, based on 9,200 meters.
Multi-Space Pay Stations:
APCOA/Standard will continue to provide parking meter collection services
including the multi-space pay stations at the same rate; however, multi-space
pay stations have a ratio of spaces to meters of 8:1 in an on-street application
and 30:1 in an off-street application. Conservatively, there would be a $65,000
savings meter collection costs.
Parking Meter Maintenance:
Single Space Meter:
Parking meter maintenance is currently an in-house function of the Parking
Department comprised of ten (10) parking meter technicians, two supervisors,
and one operations manager. The current ratio of technicians to single space
meters is 833 to 1.
Multi-Space Pay Stations:
The initial phase of the phased implementation of the multi-space pay stations
will result in a conversion of approximately 25% of the existing single space
meter inventory. A conversion of 25% of the single space meters to multi-space
pay stations is estimated to yield an annual cost savings of $127,000 in labor
and parts. This savings is attributed to:
Commission Memorandum
January 14, 2004
Page 5
A $99,000 savings in the reduction of the workforce through the attrition
of two parking meter technician positions (one of which is already vacant)
and one municipal service worker III position.
2. A $28,000 savings in the reduction of parts and materials.
Note: Schlumberger will provide a two (2) year warranty on parts and labor from the
date of installation, at no cost to the City. The City may elect to purchase an extended
warranty contract for years three, four, and five, at the City's discretion.
Schlumber.qer/Pay and Display vs. Other Manufacturers/Operations:
Other products were reviewed and while they may be suitable for other communities,
unfortunately, they did not provide the full range of options that, in the Administration's
opinion, would best serve residents, visitors, and tourists. Other products researched
are not recommended due to one or more of the following issues: (1) limited payment
acceptance; (2) not reconfigurable; and (3) limited experience/installations in other
comparable communities throughout the country. In all fairness, it is important to note
that there is one minor drawback to the pay and display operation. Unfortunately, due
to the logistics of a pay and display operation, the "refund feature" of the Miami Beach
Parking Smart Card cannot be utilized. Please note that this applies to all
manufacturers and not just Schlumberger. It is a logistical issue to all pay and display
operations. This minor drawback is more than compensated by the consistent and
successful operation of the Schlumberger pay station's bill, coin and credit acceptance.
Clearly, bill and credit card acceptance is a much more accepted method of payment
than our Smart Card. To put this in perspective, the entire intent of the Smart Card was
to provide an alternative method of payment to our customers. The addition of bills and
credit cards enhances this effort two fold with the two methods of payment (bills and
credit cards) that are the most widely used in our economy.
Schlumber.qer/CMB Pay and Display Experiment
The Parking Department has been testing the Schlumberger multi-space pay stations in
an on-street application on Ocean Drive between 7th and 10th Streets and in an off-
street application at the 777-17th Street Parking Lot since January 2003, at no cost to
the City. The results of this test over this extended period of time have been very
successful. This success is defined, as previously stated, with the following results:
1. Revenues have increased by 21% on Ocean Drive and 25% at the 777-17th
Street Parking Lot year-to-date when compared to the prior year (single space
meters).
2. Increased methods of payment, including bills, coins, and credit cards. In fact,
the following is an itemization, by percentage, of the three methods of payment:
Bills: 69%
Coins: 22%
Credit Cards: 9%
Total: 100%
Commission Memorandum
January 14, 2004
Page 6
It is important to note that currently in single space meter operations, the two
methods of payment are coins (90%) and Smart Card (10%). This translates
into substantially increased customer convenience in paying for parking. In fact,
increased convenience of parking payment options was a specific
recommendation that resulted from the Mayor's Blue Ribbon Task on Tourism.
Improved aesthetics through less street furniture (one pay station vs. five to ten
meter posts).
In over eleven months of operation, maintenance issues have been nominal and
well within an acceptable range.
Schlumberger's pay stations are reconfigurable from pay-and-display mode to
pay-by-space mode and vice-versa.
The TPC (Transportation and Parking Committee) discussed, reviewed, and endorsed this
recommendation at the regularly scheduled meeting held on Monday, January 5, 2004. The
Committee further discussed the CMB Parking Smart Card "refund feature" issue and the pay
and display method's inability to accommodate the refund feature. The pay by space method
which could accommodate the refund feature was discussed; however, after discussion
regarding the advantages and disadvantages of pay and display vs. pay by space, the
Committee felt strongly that pay and display was the preferred alternative; however, an
accommodation should be afforded to Smart Card users who in the future will be unable to
take advantage of the Smart Card's refund feature. The Committee discussed various
accommodations and since intrinsically the Smart Card and particularly the "refund feature" is
used by residents, the Committee recommended that the discount currently allowed for
residents be reviewed and nominally increased as an accommodation for this inconvenience.
Conclusion
In conclusion, it is the Administration's goals to proceed with a system that provides the most
options and flexibility; has a proven track record in other communities; and is our best overall
value for our investment. The Administration recommends that the Mayor and Commission
approve, appropriate, and authorize the establishment of a work order in the amount of
$2,439,250 from Parking Revenue Bond Fund No. 481 for the pumhase and installation of 250
multi-space parking pay stations.
T:agendas/2004/jan14/regular/multispacepaystationappropdation.cme.d°c
JMG/CMC/SF
Options I
Location Unit Confi~luration LP SP Discount
Charlotte County DG-CBV 9740
Coin included
Bill Reader included
Solar Power 995
10735 10435 2.79%
Palm Beach County DG-CBV 9740 9000 7.60%
Coin included
Bill Reader ~ncluded
City of Ft Lauderdale DG-CBV 9740
Coin included
Bill Reader included
Solar Power 995
Mixed reader 1500
12235 8750 28.48%
Metro Dade Transit DG 6550 5395 17.63%
Coin included
MPA DG-CBV 9740
Coin included
Bill Reader included
Solar Power 995
Mixed reader 1500
12235 8595 29.75%
Miami Beach (offered) DG-CBV 9740
Coin included
Bill Reader included
Solar Power 995
~lixed reader 1500
12235 8595 29.75%