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2015-29087 Reso RESOLUTION NO. 2015-29087 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE (FCWPC) AND THE RECOMMENDATION OF THE CITY MANAGER, PURSUANT TO INVITATION TO NEGOTIATE (ITN) 2014-170-SW FOR A GATED REVENUE CONTROL SYSTEM FOR THE CITY'S PARKING GARAGES; APPROVING THE MATERIAL TERMS OF AN AGREEMENT BETWEEN THE CITY AND SKIDATA, INC., AS SET FORTH IN THE TERM SHEET ATTACHED AS EXHIBIT "A" HERETO; AUTHORIZING THE CITY MANAGER AND THE CITY ATTORNEY'S OFFICE TO FINALIZE THE AGREEMENT BASED UPON THE MATERIAL TERMS APPROVED HEREIN; PROVIDED THAT THEY MAY MAKE ANY NON-SUBSTANTIVE AND NON-MATERIAL REVISIONS AND/OR ADDITIONS TO THE AGREEMENT, AS THEY DEEM NECESSARY; AND, IN THE EVENT THAT THE CITY IS UNABLE TO FINALIZE SUCCESSFUL NEGOTIATIONS WITH SKIDATA, INC., AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY'S OFFICE TO NEGOTIATE AN AGREEMENT WITH AMANO MCGANN, INC., BASED UPON THE MATERIAL TERMS APPROVED IN EXHIBIT "A" HEREIN (PROVIDED THAT THEY MAY MAKE ANY NON- SUBSTANTIVE AND NON-MATERIAL REVISIONS AND/OR ADDITIONS TO THE AGREEMENT); DIRECTING THE ADMINISTRATION TO PRESENT THE FINAL NEGOTIATED AGREEMENT FOR APPROVAL BY THE CITY COMMISSION; AND FURTHER AUTHORIZING THE ADMINISTRATION TO ENGAGE THE FIRM, WALKER PARKING CONSULTANTS/ENGINEERS, INC., TO CONDUCT A PARKING STUDY, WHICH STUDY SHALL BE PRESENTED TO THE CITY COMMISSION WITH THE FINAL NEGOTIATED AGREEMENT. WHEREAS, on May 21, 2014, the Mayor and City Commission authorized the issuance of Invitation to Negotiate (ITN) 2014-170-SW for a Gated Revenue Control System for the City's parking garages, including centralized processing of data for all of the City's parking garages; a central monitoring station for intercoms and CCTV at all entrance and exit lanes; and centralized access control for all garage equipment; and WHEREAS, on June 27, 2014 the City received five (5) proposals in response to the ITN; and WHEREAS, the Committee's ranking of the firms submitting proposals was as follows: 1) Skidata Inc.; 2) Amano McGann, Inc.; 3) LCN, Inc. d/b/a Consolidated Parking Equipment; and WPS USA Corp. (tie); and 5) Scheidt & Bachmann USA, Inc.; and WHEREAS, at the September 10, 2014 City Commission meeting, the Mayor and City Commission accepted the recommendation of the City Manager, adopting Resolution No. 2014- 28720, pursuant to Invitation to Negotiate (ITN) 2014-170-SW, for a Gated Revenue Control System for the City's parking garages; and authorized the Administration to enter into negotiations with all the proposers; to wit: Skidata Inc., Amano McGann, Inc., LCN, Inc. d/b/a Consolidated Parking Equipment, WPS USA Corp., and Scheidt & Bachmann USA, Inc.; and WHEREAS, on December 17, 2014, the City was notified by Consolidated Parking Equipment that it had withdrawn its proposal pursuant to the ITN because it had been informed by 3M, the manufacturer of the equipment proposed, that 3M would no longer be producing the proposed equipment; and WHEREAS, on February 6, 2015, cost proposals from Amano McGann, Inc., Skidata, Inc., and WPS USA Corp. were received; and Scheidt & Bachmann USA, Inc. notified the City that, due to schedule conflicts, it had withdrawn its proposal pursuant to the ITN; and WHEREAS, staff held several negotiation sessions with all three (3) proposers, as well as a request for best and final cost proposals offers; and the Administration received final replies to the referenced negotiations on May 19, 2015; and WHEREAS, at the June 10, 2015 City Commission meeting, based upon the results of the negotiations with Skidata, Inc., Amano McGann, Inc., and WPS USA Corp, the Administration recommended that the Mayor and City Commission authorize the City Manager to negotiate an agreement with Skidata, Inc., based upon the proposed negotiated Term Sheet attached to the Memorandum; and WHEREAS, at the June 10, 2015 City Commission meeting, the Mayor and City Commission referred, to the Finance and Citywide Projects Commission Committee (FCWPC), a discussion relating to the different revenue control options for garages, including their fiscal impact and enforcement component; and WHEREAS, at the June 10, 2015 City Commission meeting, the Mayor and City Commission deferred the Manager's recommendation relating to the ITN, pending the recommendation of the FCWPC; and WHEREAS, on July 1, 2015 the item was discussed at the FCWPC and the Committee recommended that the Administration finalize negotiations with Skidata, Inc., based upon the final contract terms for a gated revenue control system for the City's parking garages, and present the item for consideration to the full Commission; and WHEREAS, the Administration recommends that the Mayor and City Commission accepted the recommendation of the FCWPC to operate municipal parking garages with gated revenue control equipment; and WHEREAS, the Administration recommends authorizing the City Manager and Office of the City Attorney to negotiate an agreement with Skidata, Inc. for a gated revenue control system for the City's parking garages, based upon the material terms set forth in Exhibit "A", attached hereto and incorporated herein by reference; and WHEREAS, if the City is not successful in negotiating an agreement with Skidata, Inc., that the Administration be authorized to negotiate an agreement with Amano McGann, Inc.; and WHEREAS, at the direction of the City commission, the Administration shall engage the firm, Walker Parking Consultants/Engineers, Inc., to perform a parking study for the City's parking garages, including an analysis of gated, metered, or alternative technologies deployed, including the issue of equipment obsolescence; and WHEREAS, the Administration shall present the final negotiated agreement, as well as the Walker Parking study, for review and approval by the City Commission. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the recommendation of the Finance and Citywide Projects Committee (FCWPC) and the recommendation of the City Manager, pursuant to Invitation to Negotiate (ITN) 2014-170-SW for a gated revenue control system for the City's parking garages; approving the material terms of an agreement between the City and Skidata, Inc., as set forth in the Term Sheet attached as exhibit "A" hereto; authorize the City Manager and the City Attorney's Office to finalize the agreement based upon the material terms approved herein; provided that they may make any non-substantive and non-material revisions and/or additions to the agreement, as they deem necessary; and, in the event that the City us unable to finalize successful negotiations with Skidata, Inc., authorizing the City Manager and the City Attorney's Office to negotiate an agreement with Amano McGann, Inc., based upon the material terms approved in exhibit "A" herein ( provide that they may make any non-substantive and non- material revisions and/or additions to the agreement); direct the Administration to present the final negotiated agreement for approval by the City Commission; and further authorize the Administration to engage the firm, Walker Parking Consultants/Engineers, Inc., to conduct a parking study, which study shall be presented to the City Commission with the final negotiated agreement. PASSED AND ADOPTED this t day of Ul/f 2015. 3° �� ..B...9�''' ATTEST: ' � ' ��'o INCORP ORATED' *' , > R fael E. Granado, City Cler 411,,����f`26�.4 64th or T:\AGENDA\2015\June\PROCUREMENT\ITN 2014-170-SW Parking Garage Gated Revenue Control System for the City of Miami Beach RESO.doc TERM SHEET(EXHIBIT A) BRIEF SCOPE OF WORK AMANO SKIDATA WPS Removal/buy back of existing equipment, new equipment at all garages, installation, hardware/software, 10 years maintenance/support. PROPOSED EQUIPMENT AMANO SKIDATA WPS Submitted Submitted Submitted Electronically Electronically Electronically NEW EQUIPMENT COST- INSTALLED AMANO SKIDATA WPS Equipment 2,885,500.00 2,830,004.00 2,332,315.00 Installation - 143,750.00 76,630.00 Software Installation 227,975.00 331,579.00 29,800.00 Other 305,475.00 362,079.00 330,460.00 TOTAL $3,418,950.00 $3,667,412.00 $2,769,205.00 Skidata is $248,462 (7%) higher than Amano and $898,207 (32%) higher than WPS. REBATE/BUYBACK OF EXISTING EQUIPMENT EXISTING EQUIPMENT AMANO SKIDATA WPS Rebate/Buy back for existing equipment (288,100.00) (50,000.00) - Cost to remove existing equipment 15,000.00 17,500.00 11,470.00 TOTAL $(273,100.00) $(32,500.00) $11,470.00 MAINTENANCE/SUPPORT TEN (10) YEARS 10 YEAR MAINTENANCE AMANO SKIDATA WPS Maintenance-Year 1 206,462.00 122,192.10 138,420.00 Maintenance-Year 2 299,881.00 163,241.70 205,900.00 Maintenance-Year 3 325,159.75 320,446.30 218,254.00 Maintenance-Year 4 350,527.25 330,844.20 229,985.00 Maintenance-Year 5 375,986.61 341,553.70 248,384.00 Maintenance-Year 6 401,543.04 352,583.40 270,698.00 Maintenance-Year 7 427,142.87 363,944.50 276,107.00 Maintenance-Year 8 452,948.55 375,646.40 284,391.00 Maintenance-Year 9 478,808.63 387,699.70 295,767.00 Maintenance-Year 10 504,777.81 400,114.60 310,555.00 TOTAL $3,823,237.52 $3,158,266.60 $2,478,461.00 Skidata is $664,970.92 (17%) lower than Amano and $679,805.60 (27%) higher than WPS. SUMMARY/GRANDTOTAL OF ALL COSTS—TEN (10)YEARS: AMANO SKIDATA WPS Equipment Cost 2,885,500.00 2,830,004.00 2,332,315.00 Additional Installation Cost - 143,750.00 76,630.00 Software Cost 227,975.00 331,579.00 29,800.00 Existing Equipment (273,100.00) (32,500.00) 11,470.00 Maintenance Cost- 10 YEARS 3,823,237.52 3,158,266.60 2,478,461.00 Other 305,475.00 362,079.00 330,460.00 TOTAL $6,969,087.52 $6,793,178.60 $5,259,136.00 Over a ten (10) year period, including all maintenance and support, the grand total cost of Skidata is $175,908.92 (3%) lower than Amano and $1,534,042.60(29%)higher than WPS. EXHIBIT : 3 A , • , • • • . COMMISSION ITEM SUMMARY Condensed Title: A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, accepting the recommendation of the Finance and Citywide Projects Committee (FCWPC) to operate municipal parking garages with gated revenue control equipment; and accept the recommendation of the City Manager, pursuant to Invitation to Negotiate(ITN)2014-170-SW for a gated revenue control system for the City's parking garages;to Skidata, Inc., and, in the event that the City is unable to finalize successful negotiations with Skidata, Inc., authorizing the City Manager and the City Attorney's Office to negotiate an agreement with Amano Mcgann, Inc. Key Intended Outcome Supported: Ensure expenditure trends are sustainable over the long term. Supporting Data (Surveys, Environmental Scan, etc.): N/A Item Summary/Recommendation: On June 10, 2015, the Mayor and Commission referred Item No. R7M, Invitation to Negotiate (ITN) No. 2014-170-SW for a gated revenue control system for the City's Parking Garages to the Finance and Citywide Projects Committee(FCWPC)for discussion. The item was referred to the FCWPC seeking guidance on whether to operate municipal garages with a gated revenue control system or as metered parking. An analysis comparing both operational models was included in Agenda Item No. R7M(June 10, 2015). Please refer to Exhibit B of the attached agenda item. Additionally, a survey of gated and metered garage operations was conducted among 20 municipalities, locally and nationally. The survey resulted in 113 (93%)garages operated with gated revenue control and eight(7%)garages operated with meters. Please refer to Appendix "A" attached. On July 1, 2015, the FCWPC discussed the item and approved gated revenue control as the system by which to operate municipal parking garages. Additionally,the FCWPC endorsed the recommendation of the City Manager, pursuant to ITN 2014-170-SW for a gated revenue control system for the City's parking garages to Skidata, Inc. Administration Recommendation: Adopt the Resolution. Financial Information: Source of Amount Account Funds: 1 2 3 OBPI Total Financial Impact Summary: City Clerk's Office Legislative Tracking: Saul Frances Sign-Offs: Department Director Assistant C't Manager City M ager SF �1 KGB JLM T:\AGENDA\2015\July\Parking\ITN 2014-170 Revenue Control ''C PC Recommendation.sum.doc MIAMIBEACH AGENDA ITEM f1-7 DANE /-2— NMI ■111111111■11■ Emir 1915 • 2015 MIAMIBEAC H City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov COMMISSI•N MEMORANDUM TO: Mayor Philip Levine and Members of he City C. mission FROM: Jimmy L. Morales, City Manager �— DATE: July 8,2015 SUBJECT: A RESOLUTION OF THE MAY e R AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE(FCWPC)TO OPERATE MUNICIPAL PARKING GARAGES WITH GATED REVENUE CONTROL EQUIPMENT; AND ACCEPT THE RECOMMENDATION OF THE CITY MANAGER, PURSUANT TO INVITATION TO NEGOTIATE (ITN) 2014-170-SW FOR A GATED REVENUE CONTROL SYSTEM FOR THE CITY'S PARKING GARAGES; APPROVING THE MATERIAL TERMS OF AN AGREEMENT BETWEEN THE CITY AND SKIDATA, INC.,AND, IN THE EVENT THAT THE CITY IS UNABLE TO FINALIZE SUCCESSFUL NEGOTIATIONS WITH SKIDATA, INC., AUTHORIZING THE CITY MANAGER AND THE CITY ATTORNEY'S OFFICE TO NEGOTIATE AN AGREEMENT WITH AMANO MCGANN, INC. BACKGROUND On June 10, 2015, the Mayor and Commission referred Item No. R7M, Invitation to Negotiate(ITN) No. 2014-170-SW fora gated revenue control system for the City's Parking Garages to the Finance and Citywide Projects Committee (FCWPC) for discussion. The item was referred to the FCWPC seeking guidance on whether to operate municipal garages with a gated revenue control system or as metered parking. ANALYSIS An analysis comparing both operational models was included in the June 10, 2015, City Commission Agenda Item No. R7M. Please refer to Exhibit B of the attached agenda item. Additionally, a survey of gated and metered garage operations was conducted among 20 municipalities, locally and nationally. The survey resulted in 113 (93%) garages operated with gated revenue control and eight(7%)garages operated with July 8, 2015 City Commission Memo Recommendation FCWPC ITN 2014-170-SW Gated Revenue Control System for Municipal Garages Page 2 of 2 meters. Please refer to Appendix "A" attached. On July 1, 2015, the FCWPC discussed the item and approved gated revenue control as the system by which to operate municipal parking garages. Additionally, the FCWPC endorsed the recommendation of the City Manager, pursuant to ITN 2014-170-SW for a gated revenue control system for the City's parking garages to Skidata, Inc. CONCLUSION The FCWPC approved gated revenue control as the system by which to operate municipal parking garages and endorsed the recommendation of the City Manager, pursuant to ITN 2014-170-SW for a gated revenue control system for the City's parking garages to Skidata, Inc. 1� JLM/KGB/SF T:\AGENDA\2015\July\Parking\ITN 2014-170 Revenue Control FCWPC Recommendation.mem.doc APPENDIX A C 0 CD U, vi N a co .� 0. E 0J a U on f0 ? c 0. C Y N 0 L...co ±' Q O L a, E O 4- CO _� +, C2 .> N N a1 .--1 U v) clJ CU C co ++ 0 CO O. O N Z L- N CJ v .Q ✓ E >. E ° co a) N N 5. U ro _ O 0. v C O ++ O M U E to L N ro to N C2 C v CD -c > cm >. O 3 u C CUD 4- .c E O `-1 CU a, a a) C C C C O O 0 0 • 1 cu L co 16 0 0 r1 0 0 ‘—I 0 0 t"' O ,4 0 0 0 O o0 al CO 2 CL N 0 0 u1 Q) CO N m m N i-l) m Cr) r�-i l0 In a) be CO L (0 W 141 Ln m u) C!) co ,-4 N m .:h N X n m �`�.,1, CD v- 0 O Z a, C▪o y▪ i i i i i i i i i Q U U U U U OU O O a a O t Q U -0 +�+ 04 a1 >. v 0 N u u C C CO — i - -a "5 O E CU .V N C >- C a ro O -o U ro O '5 x C L O ` ry C L- 0 CO c7 3 a L a -a co N •E >- E U 2 a C fo = T:a To C 2 E O i C C C CU O C a1 Z a-+ O O 4.,; O CD ro .0 CI) co ro CD 0 L O .e ( I 1..- U O H L CL m tN N N > CD U U CL U I- COMMISSION ITEM SUMMARY Condensed Title: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PURSUANT TO INVITATION TO NEGOTIATE SITN)2014-170-SW FOR A GATED REVENUE CONTROL SYSTEM FOR THE CITY'S PARKING GARAGES. Key Intended Outcome Supported: Ensure expenditure trends are sustainable over the long term. , Supporting Data(Surveys, Environmental Scan,etc: N/A Item Summary/Recommendation: The City's Parking Department is seeking a state of the art gated parking revenue control system, including centralized processing of data for all of the City's parking garages,a central monitoring station for:intercoms,CCTV at all entrance and exit lanes,and access control for all garage equipment.This will allow for operational savings as well as enhanced audit controls. In order to achieve this service level, all garages must have compatible hardware, software,firmware, and equipment, meaning that one system (vendor)must equip and service all garages. The City's municipal parking garages are currently operated with on-site cashiers/parking attendants and a gated revenue control system,provided by 3M(manufacturer). The equipment runs along several model lines ranging from several years to over a decade old. Additionally, 3M notified its customers, including the City, of its intent to discontinue its gated parking revenue control subdivision and related equipment and services. At the September 10,2014 City Commission meeting,the Mayor and City Commission adopted Resolution No.2014- 28720 accepting the recommendation of the City Manager pertaining to the ranking of proposers pursuant to Invitation To Negotiate (ITN) 2014-170-SW for a Parking Garage Gated Revenue Control System. Further, the Resolution authorized the Administration to enter into negotiations with all the proposers.The Administration was requested to present the final contract for the Commission's review prior to entering into an agreement with the parking equipment companies.The details of the contract negotiation phase and comparative analysis of final replies is attached. The City Manager, after carefully considering the results of the negotiation process and staff recommendation, recommends that the Mayor and City Commission of the City of Miami Beach, Florida,accept the recommendation of the City Manager, pursuant to Invitation To Negotiate(ITN)2014-170-SW for a gated revenue control system for the City's parking garages;approving the material terms of an agreement between the City and Skidata, Inc.,as set forth in the term sheet attached as Exhibit"A"hereto;authorizing the City Manager and the City Attorney's Office to finalize the Agreement based upon the material terms approved herein;provided that they may make any non-substantive and non-material revisions and/or additions to the Agreement, as they deem necessary;authorizing the Mayor and City Clerk to execute the final Agreement;and, in the event that the City is unable to finalize successful negotiations with Skidata, Inc., authorizing the City Manager and the City Attorney's Office to negotiate an Agreement with Amano McGann, Inc. based upon the material terms approved in Exhibit"A" herein(provided that they may make any non- substantive and non-material revisions and/or additions to the Agreement). RECOMMENDATION Approve the Resolution. Advisory Board Recommendation: Financial Information: Source of Amount Account Funds: 1 $ 303,000 142-6176-000674 2 362,000 463-6176-000674 3 471,000 467-6176-000674 4 2,696,000 480-6176-000674 01.).C) 5 400,000 480-0463-000349 OBPI Total $4,232,000 Financial Impact Summary: City Clerk's Office Legislative Tracking: Alex Denis, Extension 6641 Sign-Offs: partment J• ector ;tant Cit j anager City M °pager IP AD SF M t'l%.KGB ,A JL T:IAGEN' 015uune\PROCUREMENTIITN 2014-170-S 'a ng Garage Gated Revenue Control System for the City of Miami Beach MARY.doc AGENDA ITEM R? MIAMI BEACH -10- �v 3 DATE b 5 • MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members f the City C mission FROM: Jimmy L. Morales, City Manager DATE: June 10, 2015 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER, PURSUANT TO INVITATION TO NEGOTIATE (ITN) 2014 170-SW FOR A GATED REVENUE CONTROL SYSTEM FOR THE CITY'S PARKING GARAGES; APPROVING THE MATERIAL TERMS OF AN AGREEMENT BETWEEN THE CITY AND SKIDATA, INC., AS SET FORTH IN THE TERM SHEET ATTACHED AS EXHIBIT "A" HERETO; AUTHORIZING THE CITY MANAGER AND THE CITY ATTORNEY'S OFFICE TO FINALIZE THE AGREEMENT BASED UPON THE MATERIAL TERMS APPROVED HEREIN; PROVIDED THAT THEY MAY MAKE ANY NON-SUBSTANTIVE AND NON-MATERIAL REVISIONS AND/OR ADDITIONS TO THE AGREEMENT, AS THEY DEEM NECESSARY; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FINAL AGREEMENT; AND, IN THE EVENT THAT THE CITY IS UNABLE TO FINALIZE SUCCESSFUL NEGOTIATIONS WITH SKIDATA, INC., AUTHORIZING THE CITY MANAGER AND THE CITY ATTORNEY'S OFFICE TO NEGOTIATE AN AGREEMENT WITH AMANO MCGANN, INC. BASED UPON THE MATERIAL TERMS APPROVED IN EXHIBIT "A" HEREIN (PROVIDED THAT THEY MAY MAKE ANY NON- SUBSTANTIVE AND NON-MATERIAL REVISIONS AND/OR ADDITIONS TO THE AGREEMENT). ADMINISTRATION RECOMMENDATION Adopt the resolution. KEY INTENDED OUTCOME SUPPORTED Ensure expenditure trends are sustainable over the long term. FUNDING Funding for the one-time capital cost is available as follows: Amount Account 1 $ 303,000 142-6176-000674 2 362,000 463-6176-000674 3 471,000 467-6176-000674 4 2,696,000 480-6176-000674 5 400,000_ 480-0463-000349 Total $4,232,000 Funding for the annual maintenance costs will be subject to appropriation in the annual budget process. 4 City Commission Memorandum—Parking Garage Gated Revenue Control System June 10, 2015 Page 2 of 15 BACKGROUND The City's Parking System currently has ten (10) municipal parking garages, totaling 6,106 parking spaces. An 11th facility, Collins Avenue Garage is funded and currently in design with an estimated 470 parking spaces, for a grand total of 6,576 parking spaces. The City's Parking Department is seeking a state of the art gated parking revenue control system, including centralized processing of data for all of the City's parking garages, a central monitoring station for: intercoms, CCTV at all entrance and exit lanes, and access control for all garage equipment. This would allow for operational savings as well as enhanced audit controls. In order to achieve this service level, all garages must have compatible hardware, software, firmware, and equipment, meaning that one system (vendor) must equip and service all garages. The City's municipal parking garages are currently operated with on-site cashiers/parking attendants and a gated revenue control system, provided by 3M (manufacturer). The equipment runs along several model lines ranging from several years to over a decade old. Additionally, 3M notified its customers, including the City, of its intent to discontinue its gated parking revenue control subdivision and related equipment and services. On May 21, 2014, the Mayor and City Commission approved the issuance of Invitation to Negotiate (ITN) No. 2014-170 for a Parking Garage Gated Revenue Control System. In response to the ITN, the City received proposals from the following five (5)firms: • Amano McGann, Inc. • Consolidated Parking Equipment • Scheidt& Bachmann USA, Inc. • Skidata Inc. • WPS USA Corp. At the September 10, 2014 City Commission meeting, the Mayor and City Commission adopted Resolution No. 2014-28720 accepting the recommendation of the City Manager pertaining to the ranking of proposers pursuant to Invitation To Negotiate (ITN) 2014-170-SW for a Parking Garage Gated Revenue Control System. Further, the Resolution authorized the Administration to enter into negotiations with all the proposers. The Administration was requested to present the final contract for the Commission's review prior to entering into an agreement with the parking equipment companies. CONTRACT NEGOTIATIONS On December 10, 2014, the Parking and Procurement Departments convened negotiation session No. 1 with all proposers and attended the meeting with Skidata, Inc., Amano MCGann, Inc., LCN, Inc. D/B/A Consolidated Parking Equipment, WPS USA Corp., and Scheidt & Bachmann USA, Inc. The intent of negotiation session No. 1 was to: 1) provide an overview of the ITN negotiation process and clarify any questions proposers may have; 2) discuss and review with proposers the Term Sheet and Cost Proposal Sheets which would form the basis of negotiation discussions; and, 3) schedule site visits will all proposers for December 22 and 23, 2014, to evaluate equipment and inspect all parking garages. On December 17, 2014, the City was notified by Consolidated Parking Equipment that it had withdrawn its proposal pursuant to the ITN because it had been informed by 3M, the manufacturer of the equipment proposed, that 3M would no longer be producing the proposed equipment. Following this notification from Consolidated, the City ceased further negotiations with Consolidated. 5 City Commission Memorandum—Parking Garage Gated Revenue Control System June 10, 2015 Page 3 of 15 On December 22, and December 23, 2014, site visits were held and attended by the remaining four (4) Proposers: Amano McGann, Inc., Scheidt & Bachmann USA, Inc., Skidata, Inc., and WPS USA Corp. Proposers were given until December 30, 2014, to submit their questions relating to the cost proposal. As a result of questions arising from evaluating the equipment, the Procurement Department issued Response 1, 2, and 3, on January 15, January 28, and January 30, 2015, respectively. On January 30, the City requested cost proposals, for which a due date of February 6, 2015, was established. On February 6, 2015, cost proposals from Amano McGann, Inc., Skidata, Inc., and WPS USA Corp. were received. At this time, Scheidt & Bachmann USA, Inc., notified the City that, due to schedule conflicts, it had withdrawn its proposal pursuant to the ITN. The following is a brief summary, from the information provided in each firm' proposals, of the final three(3) proposers: • Amano McGann, Inc. is headquartered in Roseville, Minnesota, with approximately 290 employees across the United States. With over 290 employees, 20 branch offices and over 40 distribution partners throughout the U.S., according to Amano McGann, it has performed over 6,000 installations worldwide along with its parent company Amano Corporation. Amano provides parking, time and access solutions to universities, hotel chains, airports, sports complex and municipalities. Recent clients include the City of West Palm Beach, City of Portland Smart Park Garages, and the City of Detroit. • SKIDATA, Inc., a wholly-owned subsidiary of SKIDATA, AG (founded in Austria in 1977), was established in North America in January 2000 to serve the off-street parking and revenue control system market segment. According to SKIDATA, it has built over 750 systems in Canada, USA and Mexico. Their products and services are found in airports, municipalities, shopping centers, universities and medical centers across North America. Recent clients include the City of Oklahoma City, City of Beverly Hills, City of St. Louis and Downtown Salt Lake City. Their services include consulting, integration, direct support, documentation and training. • WPS USA Corp. has over twenty(20) years of experience using bar code technology in their parking access systems. According to WPS, it introduced the first "Credit Car In/Credit Card Out" solution back in the early 1990's. Recent clients have been the City of Norfolk, the Los Angeles Department of Transportation, Rockville Town Square and the Union Station Parking Garage in Washington, D.C. Several negotiation sessions with all three (3) proposers were scheduled, as well as a request for best and final cost proposals offers. The Administration received final replies to the referenced negotiations on May 19, 2015. ANALYSIS Parking gated revenue control system is necessary for the operation of the City's parking facility, as well as the management of over $16 million in annual revenue at these facilities. A system with robust functionality and reporting/audit capabilities, as well as a partnership with a qualified service provider is critical for the effective management of a system that serves over 3.3M customers annually and through which significant revenue is yielded. For these reasons, the Administration believes that, in the best interest of the City, functionality, prior performance record and cost of the system are critically important considerations. With that in mind, a comparative analysis follows with the purpose of illustrating major differences among the three finalist with whom the City has negotiated. 6 City Commission Memorandum—Parking Garage Gated Revenue Control System June 10, 2015 Page 4 of 15 1. System Functionality. The three (3) proposed systems offer basic access and revenue control functionality. The major differences among the three (3) firms are in the areas of ticket technology(barcode vs. magnetic stripe), and validation of disabled permits. a. Ticket Technology. The major difference in the area of functionality is the technology utilized for ticket transactions (vs card access), which is typically either a barcode ticket or magnetic stripe ticket. Historically, each type has been lauded by the industry as the preferred methodology over years. Currently, barcode tickets are the most widely accepted and enjoys a substantial portion of the market share. While all indications seem to point towards continued use and growth of barcode tickets, there is no clear indication of either taking the full market share. The following are the options available for each of the three (3) proposers in the barcode vs. magnetic stripe technologies: • Amano McGann, Inc. offers both barcode and magnetic stripe ticket systems; however, both systems cannot be deployed simultaneously in each garage. • Skidata offers both barcode and magnetic stripe ticket systems which may be deployed simultaneously. • WPS offers bar code system only. While staff believes that either barcode or magnetic stripe methodologies are acceptable, it is important to note that once a decision on bar code or magnetic stripe is made, future changes in technology will require major system upgrades. b. EMV (Europay Mastercard & Visa) -- Chip embedded credit card technology; which provides users added protection against fraud, is quickly approaching, if not already here. • Both Skidata and Amano have solutions for EMV and committed to providing their solution at no additional cost to the City. WPS has advised the City that they are developing an EMV solution; however, its availability and cost is contingent upon various factors. The following is an excerpt from an email sent by Mr. Garrett Coleman, Manufacturer's Representative, on March 17, 2015. "Please understand that there are a number of requirements that companies like WPS are not responsible for completing. These need to be resolved by the credit card industry. Until these are resolved, it is not possible to state for sure there will not be any added costs when the regulations are released and enforced." c. Validation of Disabled Permits. The process to confirm legitimate disabled parking transactions, typically processed as exception validations, requires human interaction. Disabled parking permits are issued and directly linked to an individual. A disabled parking permit with matching user information on a government issued identification, such as a driver's license or state identification card must be presented to an attendant (at a remote location) for confirmation. Once confirmed, a validation may be processed for a parking fee waiver (the exception), as required by Code. The following are the exception validation solution provided by each proposer: 7 City Commission Memorandum—Parking Garage Gated Revenue Control System June 10, 2015 Page 5 of 15 • Amano's solution provides individual components; however, the solution is not currently integrated resulting in a very labor intensive process to audit and reconcile validations. Amano offered to further develop their solution, if requested to do so at no additional cost to the City. • Skidata provides an automated audit feature to specifically confirm, track, and retrieve at any point in the future, all validations through a single source, the transient ticket transaction number. The following is a brief description of the Skidata automated solution for validations(exceptions). A customer provides their credentials (disabled parking permit and identification) for viewing by an attendant at a remote centralized monitoring location. The attendant can view the credentials and an image of the credentials is stored as an attachment (electronic file) to the specific transaction number for that customer. At a later date, any or all validations, including disabled parking validations, may be easily retrieved by referencing a single source (ticket transaction number) for auditing purposes. The images of the disabled parking permit and identification are easily retrieved, viewed, and confirmed. • WPS proffered to develop (and preliminarily tested) a similar functionality through their license plate recognition (LPR) system. However, their proposed solution is in the developmental stage. In FY 2013/14, there were a total of 26,968 disabled parking permit exception validation transactions, at all ten municipal parking garages, with a value of $254,766. Without an effective exception validation system, the validation process for these transactions is vulnerable to manipulation/fraud. The Skidata solution closes this loophole with a proven, efficient, and user-friendly auditable feature for validated exception transactions. Amano and WPS proposed to enhance their current functionality; however, the proposed solutions are, to date, either unbuilt or untested. It is important to note gated revenue control systems may also be used in municipal parking lots with high demand providing greater audit controls and preserving the integrity of disabled parking. 2. References. The City contacted references provided by each proposer and conducted a survey/questionnaire. All references for Skidata were deemed satisfactory; however, there were issues brought to the City's attention with regard to the past performance of Amano and WPS. The following are excerpts from responses received to the survey/questionnaire: Amano Reference—City of West Palm Beach: • System does not work off-line. Monthly access cards do not work off-line due to different facility codes at garages. Previous equipment from Federal APD would batch credit card. This equipment does not batch. Unable to process credit card transactions when there is a power outage, as evidenced in a recent lightning strike. 8 City Commission Memorandum-Parking Garage Gated Revenue Control System June 10, 2015 Page 6 of 15 • Credit card jams on insertion. Recommends swipe. • No capability to send information to spitter or exit gates. Example: when a ticket jams and the machine is turned off, the device does not reset itself and requires on-site reprogramming (cannot be reprogrammed remotely from central station). • Intercoms go on and off-line. Currently, four are off-line (system is only two years old). Amano is quick to respond but intercoms are still down. WPS Reference—City of Norfolk Q. Are you satisfied with the audit/accounting capabilities of the software? Please explain system capabilities. A. Not satisfied. Cash does not match shift report. Cash received via Pay-In-Lane (PIL)devices are not tallying correctly. • PIL cash refunds are inaccurate due to issuance of same amount of change due to customer in both bills and coins resulting in a duplicate refund. • WPS was not aware of this issue until advised by Reference. • Reference has been thorough in providing WPS documentation regarding these malfunctions. • This is particularly of concern in remote centralized motoring, since there is no cashier present to witness this occurrence. Reference personally witnessed this malfunction. • This was discovered at their third busiest garage. • Reference attempted unsuccessfully to have WPS provide replacement equipment; consulted with their legal department; and was advised to allow WPS to address the issue. • New software update is required. Update was scheduled last year. There have been issues resulting in delays. Update is now scheduled for Spring/Summer 2015. • Reference stated that it is prepared to pursue legal action. 3. COST PROPOSALS. The final cost proposals are itemized into three major areas: (1) cost of installed equipment; (2) rebate and removal of existing equipment; and (3) ten (10)year maintenance/support. Amano Skidata WPS Equipment and Installation $3,418,950.00 $3,667,412.00 $2,769,205.00 Rebate on Existing Equipment $(273,100.00) $(32,500.00) $11,470.00 Maintenance and Support(10 Year) $3,823,237.52 $3,158,266.60 $2,478,461.00 Total 10 Year Costs $6,969,087.52* $6,793,178.60 $5,259,136.00* *These figures represent the final costs negotiated with and confirmed by each Proposer. As noted in Exhibit C, the City and the Proposers engaged in several rounds of cost negotiations to assure best pricing, address certain errors and omissions in Proposer's cost proposals and create a functional system baseline so that all proposals could be compared equitably. For example, Amano's original cost proposals inadvertently omitted the required dedicated employees (at a cost of$821,197.52 over the ten year term) and Skidata's omitted the required training (at a cost of $12,000.00 as an initial cost). Additionally, all proposers offered extra goods and services (above and beyond what is required for a fully functional system) that could enhance system operation and is available to the City for future consideration. 9 City Commission Memorandum-Parking Garage Gated Revenue Control System June 10, 2015 Page 7 of 15 CITY MANAGER'S DUE DILIGENCE The City's ten parking garages are currently operated with on-site cashiers/parking attendants and a gated revenue control system, provided by 3M (manufacturer). Collectively, all garages generate over$16M in revenues with a labor expense for cashiers/attendants of$3M, annually. As you know, a Request for Proposals (RFP) for Parking Attendants was issued and an award is anticipated by the July 2015 City Commission meeting. A critical component required to manage and operate our municipal garages is a state-of-the-art revenue control system with remote monitoring. Remote monitoring will automate cashier operations at all parking garages reducing cashier labor expenses from $3M to $1.8M, a savings of $1.2M (40%), annually. Therefore, a robust and reliable gated revenue control system is essential to process, collect, and audit transactions and their related revenues. While the City has considered a metered operations approach (see Exhibit B) to a gated system, the Administration has concluded that such approach is not cost effective. Skidata's PARCS solution is composed of gated entrance and exit control systems with the ability to accept credit card payment in-lane and access credentials such as access cards, pay by mobile phone applications, or validations; automated pay stations with the ability of accepting credit card and cash payments; garage offices and central monitoring work stations composed of desktop computers, monitors and audio/video (intercoms); and software system that integrates with all revenue control devices at all garages and interfaces with the City's permit and financial management systems. More importantly, the system allows for Remote Monitoring reducing the need for cashier (labor) functions. This is anticipated to reduce parking attendant/cashier labor cost by 40%. In addition, remote monitoring allows for a variety of technology enhancements, including real time utilization, ability to change rates based on utilization, grant gate access, diagnose, troubleshoot, and potentially resolve a variety of alarms related to in-lane or peripheral equipment. The City Manager, after carefully considering the results of the negotiation process and staff recommendations, recommends that the Mayor and City Commission authorize the Administration to finalize negotiations on final contract terms with Skidata, Inc.; and, upon successful conclusion of the negotiation terms by the Administration, authorize the Mayor and City Clerk to execute an Agreement for a gated revenue control system for the City's parking garages with Skidata. In support of this recommendation, the City Manager finds as follows: Functionality While Amano, Skidata, and WPS are very competitively matched in terms of general system functionality, the review and analysis conducted by staff indicate some significant differences in a few areas. Of greatest concern is the need to efficiently and effectively process transactions through remote monitoring while maintaining a user-friendly and reliable auditable trail, of validated transactions, most notable are disabled parking permit exemptions with an annual value exceeding $250,000. 10 • City Commission Memorandum—Parking Garage Gated Revenue Control System June 10, 2015 Page 8 of 15 References Section 2-369 of the City Code requires that, in the award of contracts, the following be considered: (1) The ability, capacity and skill of the bidder to perform the contract. (2) Whether the bidder can perform the contract within the time specified, without delay or interference. (3) The character, integrity, reputation,judgment, experience and efficiency of the bidder. (4) The quality of performance of previous contracts. (5) The previous and existing compliance by the bidder with laws and ordinances relating to the contract. Skidata client references indicate that it has a satisfactory history of past performance. Past clients of both Amano and WPS expressed some concerns of each firm's respective systems and response to system issues. Especially concerning is the experience shared by a past client of WPS in which it stated that the system was unable to accurately record and reconcile cash balances. This is a very dangerous scenario when one considers the amount of revenue ($16M annually)flowing through the City's gated revenue control system. Cost While system costs for all proposed systems are significant, the current estimated annual revenue yielded through the parking operations at which the reference equipment will be utilized is approximately$16M. The following tables indicate costs as a percentage of revenue over the contract term for the new proposed systems, both in terms of overall project cost as well as yearly maintenance costs. Equipment&Installation Amano Skidata WPS Equipment and Installation $3,418,950.00 $3,667,412.00 $2,769,205.00 Rebate for Existing Equipment and/or Cost of Removing Existing Equipment ($273,100.00) ($32,500.00) $11,470.00 Total Initial Costs $3,145,850.00 $3,634,912.00 $2,780,675.00 Recurring Annual Maintenance Amano Skidata WPS Total Maintenance Costs Over 10 Years $3,823,237.52 $3,158,266.60 $2,478,461.00 Estimated Revenue(10 Years) $160,000,000.00 $160,000,000.00 $160,000,000.00 Maintenance Only Cost as a Percentage of Revenue 2.39% 1.97% 1.55% While cost is clearly an important consideration, the gated parking revenue control system is a major system for the City through which nearly $16M is processed each year. System functionality and prior performance of the contractor is as critical as is the cost of the system. Remote Monitoring Savings and Resulting Net Cost The following is a comparison of current staffing cost versus proposed (reduced) staffing levels; new equipment/remote monitoring, including maintenance costs, over a ten year period. 11 City Commission Memorandum-Parking Garage Gated Revenue Control System June 10, 2015 Page 9 0115 The proposed reduction in attendant labor hours may be achieved as follows: • Elimination of the second and third Parking Attendant I (cashier), if applicable, from all locations, Monday through Friday, dayshifts; and • Elimination of all Parking Attendant I during off-peak(overnight) hours. • Reduction of Parking Attendant II during off-peak hours. Remote monitoring is anticipated to reduce cashier labor hours by 40%. This is attributed to a centralized remote monitoring consolidating cashier functions and tasks at one centralized location. Each workstation is equipped with data access control to process parking transactions; intercoms and video monitors for audio/video interactions with the customers; and will interface with the security camera system to be deployed in all garages under a separate formal competitive procurement process for security system. Additionally, annual maintenance costs over the next ten (10)years are less than current annual maintenance costs. YEAR 1 CURRENT PROPOSED DIFFERENCE Staffing - $2,943,000* $1,800,000* $(1,143,000) Equipment Cost $3,635,000 $3,635,000 Equipment Maintenance $225,000* $132,000 $(93,000) TOTAL $3,168,000 $5,567,000 $2,399,000 YEAR 2 Staffing $2,943,000* $1,800,000* $(1,143,000) Equipment Maintenance $225,000* $173,000 $(52,000) TOTAL $3,168,000 $1,973,000 $(1,195,000) YEAR 3 Staffing $2,943,000* $1,800,000* $(1,143,000) Equipment Maintenance $225,000* $331,000 $106,000 TOTAL $3,168,000 $2,131,000 $(1,037,000) YEAR 4 Staffing $2,943,000* $1,800,000* $(1,143,000) Equipment Maintenance $225,000* $342,000 $117,000 TOTAL $3,168,000 $2,142,000 $(1,026,000) YEAR 5 Staffing $2,943,000* $1,800,000* $(1,143,000) Equipment Maintenance $225,000* $353,000 $128,000 TOTAL $3,168,000 $2,153,000 $(1,015,000) YEAR 6 Staffing $2,943,000* $1,800,000* $(1,143,000) Equipment Maintenance $225,000* $364,000 $139,000 TOTAL $3,168,000 $2,164,000 $(1,004,000) YEAR 7 Staffing $2,943,000* $1,800,000* $(1,143,000) Equipment Maintenance $225,000* $376,000 $151,000 TOTAL $3,168,000 $2,176,000 $(992,000) YEAR 8 Staffing $2,943,000" $1,800,000* $(1,143,000) Equipment Maintenance $225,000* $388,000 $163,000 TOTAL $3,168,000 $2,188,000 $(980,000) YEAR 9 12 • City Commission Memorandum—Parking Garage Gated Revenue Control System June 10, 2015 Page 10 of 15 Staffing $2,943,000* $1,800,000* $(1,143,000) Equipment Maintenance $225,000* $400,000 $175,000 TOTAL $3,168,000 $2,200,000 $(968,000) YEAR 10 Staffing $2,943,000* $1,800,000* $(1,143,000) Equipment Maintenance $225,000* $413,000 $188,000 TOTAL $3,168,000 $2,213,000 $(955,000) TOTAL 10 YRS $31,680,000 $24,907,000 $(6,773,000) *Assumes No Increase The proposed solution results in an estimated total cost savings of $6,773,000, over a ten year period. Therefore, based on a combination of factors that includes equipment and comparable installations, past performance on previous public sector contracts and cost savings (especially when compared to the current system), the City Manager recommends that the Mayor and City Commission authorize the Administration to finalize negotiations on final contract terms with Skidata, Inc. The City Manager further recommends that in the event that the City is unable to finalize successful negotiations with Skidata, Inc., to finalize negotiations on final contract terms with Amano McGann, Inc. As a side note, the City Manager notes that during phase 1 evaluation of proposals, Skidata was recommended as the first-ranked Proposer by every Evaluation Committee member. Amano McGann followed Skidata with one second-place rank, one third-place rank and one fourth-place rank as scored by the Evaluation Committee. CONCLUSION The Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida, accept the recommendation of the City Manager, pursuant to Invitation To Negotiate (ITN) 2014-170-SW for a gated revenue control system for the City's parking garages; approving the material terms of an agreement between the City and Skidata, Inc., as set forth in the term sheet attached as Exhibit "A" hereto; authorizing the City Manager and the City Attorney's Office to finalize the Agreement based upon the material terms approved herein; provided that they may make any non-substantive and non-material revisions and/or additions to the Agreement, as they deem necessary; authorizing the Mayor and City Clerk to execute the final Agreement; and, in the event that the City is unable to finalize successful negotiations with Skidata, Inc., authorizing the City Manager and the City Attorney's Office to negotiate an Agreement with Amano McGann, Inc. based upon the material terms approved in Exhibit "A" herein (provided that they may make any non-substantive and non-material revisions and/or addition to the Agreement). JLM/ :/MT/SF/AD T:W GENDA120151June1PROCUREMENTIITN 2014-170-SW Parking Garage Gated Revenue Control System for the City of Miami Beach MEMO(20150526 KGB).doc 13 TERM SHEET(EXHIBIT A) BRIEF SCOPE OF WORK AMANO SKIDATA I WPS Removal/buy back of existing equipment, new equipment at all garages, installation, hardware/software, 10 years maintenance/support. PROPOSED EQUIPMENT AMANO SKIDATA WPS Submitted Submitted Submitted Electronically Electronically Electronically NEW EQUIPMENT COST- INSTALLED AMANO SKIDATA WPS Equipment 2,885,500.00 2,830,004.00 2,332,315.00 Installation - 143,750.00 76,630.00 Software Installation 227,975.00 331,579.00 29,800.00 Other 305,475.00 362,079.00 330,460.00 TOTAL $3,418,950.00 $3,667,412.00 $2,769,205.00 Skidata is $248,462 (7%) higher than Amano and $898,207 (32%) higher than WPS. REBATE/BUYBACK OF EXISTING EQUIPMENT EXISTING EQUIPMENT AMANO SKIDATA WPS Rebate/Buy back for existing equipment (288,100.00) (50,000.00) - Cost to remove existing equipment 15,000.00 17,500.00 11,470.00 TOTAL $(273,100.00) $(32,500.00) $11,470.00 MAINTENANCE/SUPPORT TEN (10)YEARS 10 YEAR MAINTENANCE AMANO SKIDATA WPS Maintenance-Year 1 206,462.00 122,192.10 138,420.00 Maintenance-Year 2 299,881.00 163,241.70 205,900.00 Maintenance-Year 3 325,159.75 320,446.30 218,254.00 Maintenance-Year 4 350,527.25 330,844.20 229,985.00 Maintenance-Year 5 375,986.61 341,553.70 248,384.00 Maintenance-Year 6 401,543.04 352,583.40 270,698.00 Maintenance-Year 7 427,142.87 363,944.50 276,107.00 Maintenance-Year 8 452,948.55 375,646.40 284,391.00 Maintenance-Year 9 478,808.63 387,699.70 295,767.00 Maintenance-Year 10 504,777.81 400,114.60 310,555.00 TOTAL $3,823,237.52 $3,158,266.60 $2,478,461.00 Skidata is $664,970.92 (17%) lower than Amano and $679,805.60 (27%) higher than WPS. SUMMARY/GRANDTOTAL OF ALL COSTS—TEN (10)YEARS: AMANO SKIDATA WPS Equipment Cost 2,885,500.00 2,830,004.00 2,332,315.00 Additional Installation Cost - 143,750.00 76,630.00 Software Cost 227,975.00 331,579.00 29,800.00 Existing Equipment (273,100.00) (32,500.00) 11,470.00 Maintenance Cost-10 YEARS 3,823,237.52 3,158,266.60 2,478,461.00 Other 305,475.00 362,079.00 330,460.00 TOTAL $6,969,087.52 $6,793,178.60 $5,259,136.00 Over a ten (10) year period, including all maintenance and support, the grand total cost of Skidata is $175,908.92 (3%)lower than Amano and $1,534,042.60 (29%) higher than WPS. 14 City Commission Memorandum—Parking Garage Gated Revenue Control System June 10, 2015 Page 12 of 15 GATED REVENUE CONTROL SYSTEMS v. METERED OPERATIONS ALTERNATIVE OPTION ANALYSIS (EXHIBIT B) Recently, the concept of operating municipal garages as metered operations in lieu of gated revenue control systems was suggested. The Parking Department evaluated these two alternative methods of operating the City's parking garages and the following are the results. Metered (pay station) parking is the standard in the industry for operating on-street parking and surface parking lots. This is predominantly due to parking spaces being dispersed over large geographic areas in these settings. Based on the concept presented, staff evaluated the potential impacts of converting garage operations in the City to metered operations. The following are high level impacts of operating garages with meters: • Parking gated revenue control systems garners 100% of parking revenues as users must pay for their parking session prior to exit. Metered operations are based on enforcement levels and would require more intensive staffing levels. o The City's metered system has a compliance ratio of 85%, meaning 8.5 of 10 users pay for their parking. Therefore, 15% ($2.4M of $16M) in garage revenues would stand to be lost, if operated with meters. o In order to achieve the 85% compliance level 24/7 for all 10 garages, an estimated 50 additional enforcement officers would be needed, at an estimated cost of$2,818,400, including salaries, health and pension benefits. o For the remaining 15% who do not pay, the City's citation capture rate is 10%, which could generate approximately $972,000 in citation revenue (assuming a 90% collection rate), but the County retains $611,820 of this, which represents the County's portion of 1/3 of citation revenue, as well as contributions to school crossing guards and technology (Autocite)fund. • Citations and related fines derived from parking enforcement often have negative implications with the public. The City's portion of revenue generated from an $18 overtime parking citation equates to $6.67 per citation, after the County's fees are assessed. • Diminished revenues related to potential disabled placard abuse. Identity of placard owner is not verified in metered facilities but is verified in staffed/gated garages. In closing, the current cost of operating the gated revenue control systems in the City's 10 garages is $2,985,500. With technology enhancements and remote monitoring, labor hours/costs are estimated to decrease by 40% to $1,800,000. Even taking the capital costs of new equipment for all garages into account, the gated revenue control system would appear more cost/revenue effective. Additional detail is provided in the analysis below, including increased capital expenses and other recurring operational expenses incurred with metered operations as compared to gated revenue control systems. 15 City Commission Memorandum—Parking Garage Gated Revenue Control System June 10, 2015 Page 13 of 15 GATED REVENUE CONTROL SYSTEMS - METER COMPARISON tr Equipment $3,635,000 $0 $ 0 $3,635,000 Staffing $1,800,000 $1,800,000 $1,800,000 $5,400,000 Maintenance $123,000 $164,000 $321,000 $608,000 TOTAL: $5,558,000 $1,964,000 $2,121,000 $9,643,000 137 METERS $1,027,500 $0 $0 $1,027,500 Staffing $2,818,400 $2,874,768 $2,932,263 $8,625,431 License Plate Recognition $767,350 $0 $0 $767,350 Vehicles Maintenance $43,200 $43,200 $43,200 $129,600 Meter Collections $220,000 $220,000 $220,000 $660,000 TOTAL: $4,876,450 $3,137,968 $3,195,463 $11,209,881 CONCLUSION: Even taking the capital costs of new equipment for all garages into account, the gated revenue control system would appear more cost/revenue effective. Technology enhancements and remote monitoring available with the new gated revenue control system result in a reduction of labor hours/costs of approximately 40% to $1,800,000 (currently at $2,985,500). Furthermore, the cost of contracted labor at living wage rates is significantly lower than City employee labor expense(salary/benefit/pension). 16 City Commission Memorandum-Parking Garage Gated Revenue Control System June 10, 2015 Page 14 of 15 EXHIBIT C SUMMARY OF COST NEGOTIATIONS Below please find original cost proposal submittal from each proposer due by February 6, 2015. The chart below provides a chronology of negotiations and their respective results. Please note the FINAL offer for each firm was confirmed as follows: Amano: April 23, 2015; Skidata: May 19, 2015; and WPS: March 19, 2015. Original Cost Proposal After Site Visits-Received February 6, 2015 AMANO SKIDATA WPS Equipment Cost $2,883,500.00 $2,906,329.00 $2,370,745.00 Additional Installation Cost $0.00 $143,750.00 $76,630.00 Software Cost $227,975.00 $331,579.00 $29,800.00 Equipment Removal and Rebate -$213,100.00 $17,500.00 $11,470.00 Maintenance Cost $3,252,260.00 $3,518,161.00 $2,390,041.00 Other $655,500.00 $257,102.00 $476,704.00 PRELIMINARY TOTAL $6,806,135.00* $7,174,421.00* $5,355,390.00* *After negotiation discussions with each Proposer to understand the cost proposals, staff requested revised Cost Proposals which were received on March 12, 2015. Revised Cost Proposal-Received March 12,2015 AMANO SKIDATA WPS Equipment Cost $2,883,500.00 $2,906,329.00 $2,332,315.00 Additional Installation Cost $0.00 $143,750.00 $76,630.00 Software Cost $227,975.00 $331,579.00 $29,800.00 Equipment Removal and Rebate -$273,100.00 -$32,500.00 $11,470.00 Maintenance Cost $3,002,040.00 $3,280,512.00 $2,478,461.00 Other $699,900.00 $217,102.00 $444,070.00 TOTAL $6,540,315.00 $6,846,772.00 $5,372,746.00 *Staff determined that the revised cost proposals contained errors and omissions or additional equipment not requested by the City as follows. Errors and Omissions AMANO SKIDATA WPS Corrections for Mathematical Errors on Cost Proposal -$346,975.00 Reduction for Supplemental Items (Table 1) -$45,450.00 Add Cost of Dedicated Employee Omitted from Amano's Cost Proposal $821,197.52 Corrections for Mathematical Errors on Cost Proposal $72,743.56 Reduction for Supplemental Items (Table 1) -$126,337.00 Corrections for Mathematical Errors on Cost Proposal $28,200.00 Reduction for Supplemental Items (Table 1) -$141,810.00 TOTAL $428,772.52 -$53,590.44 -$113,610.00 17 City Commission Memorandum—Parking Garage Gated Revenue Control System June 10, 2015 Page 15 of 15 Final Adjustments Confirmed by Proposers AMANO SKIDATA WPS Date Confirmed by Proposer 4/23/2015 5/19/2015 3/19/2015 Equipment Cost $2,885,500.00 $2,830,004.00 $2,332,315.00 Additional Installation Cost $0.00 $143,750.00 $76,630.00 Software Cost $227,975.00 $331,579.00 $29,800.00 Equipment Removal and Rebate -$273,100.00 -$32,500.00 $11,470.00 Maintenance Cost $3,823,237.52 $3,158,266.60 $2,478,461.00 *Other $305,475.00 $362,079.00 _ $330,460.00 FINAL TOTAL $6,969,087.52 $6,793,178.60 $5,259,136.00 TABLE 1: SUPPLEMENTAL ITEMS Items not necessary for implementation/operation of system but available to the City in the future on an as needed basis. AMANO G7 Bollards($150 x 8= $1,200) $1,200.00 G8 Bollards($150 x 1 -$150) $150.00 G10 Bollards ($150 x 2 =$300) $300.00 Booth Removal(per booth) $2,000.00 Online Validation Software (eParcVal) $4,000.00 Daily pass online software(eFlexPass) $10,000.00 Bulk Validation Software(eFlexPrint) $6,000.00 Pedestrian Warning System(per system)($500 x 10 garages) $5,000.00 Basic signage package(per lane)($400 x 42 lanes) $16,800.00 TOTAL $45,450.00 SKIDATA WEBKey Managed System (annual fee year 1) $9,500.00 WEBKey Managed System (annual fee maintenance years 2-10) $98,617.00 Pedestrian Alert signage(Per Garage)($1,349 x 10 garages) $13,490.00 Lot Full Signage($473ea x 10 garages) $4,730.00 TOTAL $126,337.00 WPS Pedestrian warning light& buzzer at each exit $8,160.00 Printed graphic static signage: Budget $20,000.00 Additional protective bollard if required: (Each) $450.00 Electronic locks for accessing equipment housings(Lump sum) $85,000.00 Booth Removal: Not to exceed $3,000.00 per booth Budget $3,000.00 Level Counting, Exterior Monument Sign: (Budget Each) $9,500.00 Floor Space Available Sign: (Budget Each) $2,800.00 Ramp counter for level counting using camera detection: (Each) $4,500.00 LPR Cameras, housing, and installation: (Each) $3,400.00 LPR site infrastructure where possible per lane: (Budget Each) $5,000.00 TOTAL $141,810.00 18 N RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER, PURSUANT TO INVITATION TO NEGOTIATE (ITN) 2014- 170-SW FOR A GATED REVENUE CONTROL SYSTEM FOR THE CITY'S PARKING GARAGES; APPROVING THE MATERIAL TERMS OF AN AGREEMENT BETWEEN THE CITY AND SKIDATA, INC., AS SET FORTH IN THE TERM SHEET ATTACHED AS EXHIBIT "A" HERETO; AUTHORIZING THE CITY MANAGER AND THE CITY ATTORNEY'S OFFICE TO FINALIZE THE AGREEMENT BASED UPON THE MATERIAL TERMS APPROVED HEREIN; PROVIDED THAT THEY MAY MAKE ANY NON-SUBSTANTIVE AND NON-MATERIAL REVISIONS AND/OR ADDITIONS TO THE AGREEMENT, AS THEY DEEM NECESSARY; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FINAL AGREEMENT; AND, IN THE EVENT THAT THE CITY IS UNABLE TO FINALIZE SUCCESSFUL NEGOTIATIONS WITH SKIDATA, INC., AUTHORIZING THE CITY MANAGER AND THE CITY ATTORNEY'S OFFICE TO NEGOTIATE AN AGREEMENT WITH AMANO MCGANN, INC. BASED UPON THE MATERIAL TERMS APPROVED IN EXHIBIT "A" HEREIN (PROVIDED THAT THEY MAY MAKE ANY NON- SUBSTANTIVE AND NON-MATERIAL REVISIONS AND/OR ADDITIONS TO THE AGREEMENT). WHEREAS, on May 21, 2014, the Mayor and City Commission authorized the issuance of Invitation to Negotiate (ITN) 2014-170-SW for a Gated Revenue Control System for the City's parking garages, including centralized processing of data for all of the City's parking garages; a central monitoring station for intercoms and CCTV at all entrance and exit lanes; and centralized access control for all garage equipment; and WHEREAS, on May 22, 2014, ITN 2014-170-SW was issued with an opening date of July 10, 2014; and WHEREAS, on September 10, 2014, the Mayor and City Commission approved Resolution 2014-28720, accepting the recommendation of the City Manager and authorizing the Administration to enter into negotiations with all the proposers; to wit: Skidata Inc.; Amano McGann, Inc.; LCN, Inc. d/b/a Consolidated Parking Equipment; WPS USA Corp.; and Scheidt & Bachmann USA, Inc.; and WHEREAS, on December 17, 2014, the City was notified by Consolidated Parking Equipment that it had withdrawn its proposal pursuant to the ITN; and WHEREAS, on February 6, 2015, Scheidt & Bachmann USA, Inc. notified the City that it had withdrawn its proposal pursuant to the ITN; and WHEREAS, staff held several negotiation sessions with all three (3) proposers, as well as a request for best and final cost proposals offers; and the Administration received final replies to the referenced negotiations on May 19, 2015. 19 NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, accept the recommendation of the City Manager, pursuant to Invitation To Negotiate (ITN) 2014170-SW for a gated revenue control system for the City's parking garages; approving the material terms of an agreement between the City and Skidata, Inc., as set forth in the term sheet attached as Exhibit "A" hereto; authorizing the City Manager and the City Attorney's Office to finalize the Agreement based upon the material terms approved herein; provided that they may make any non-substantive and non-material revisions and/or additions to the Agreement, as they deem necessary; authorizing the Mayor and City Clerk to execute the final Agreement; and, in the event that the City is unable to finalize successful negotiations with Skidata, Inc., authorizing the City Manager and the City Attorney's Office to negotiate an Agreement with Amano McGann, Inc. based upon the material terms approved in Exhibit "A" herein (provided that they may make any non- substantive and non-material revisions and/or additions to the Agreement). PASSED AND ADOPTED this day of 2015. ATTEST: Rafael E. Granado, City Clerk Philip Levine, Mayor T:\AGENDA12015Uune1PROCUREMENTUTN 2014-170-SW Parking Garage Gated Revenue Control System for the City of Miami Beach RESO.doc APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION A 16 City Attorney a e 20 TERM SHEET(EXHIBIT A) BRIEF SCOPE OF WORK AMANO SKIDATA WPS Removal/buy back of existing equipment, new equipment at all garages, installation, hardware/software, 10 years maintenance/support. -PROPOSED EQUIPMENT AMANO SKIDATA WPS Submitted Submitted Submitted Electronically Electronically Electronically NEW EQUIPMENT COST- INSTALLED AMANO SKIDATA WPS Equipment 2,885,500.00 2,830,004.00 2,332,315.00 Installation - 143,750.00 76,630.00 Software Installation 227,975.00 331,579.00 29,800.00 Other 305,475.00 362,079.00 330,460.00 TOTAL $3,418,950.00 $3,667,412.00 $2,769,205.00 Skidata is $248,462 (7%) higher than Amano and $898,207(32%) higher than WPS. REBATE/BUYBACK OF EXISTING EQUIPMENT EXISTING EQUIPMENT AMANO SKIDATA WPS Rebate/Buy back for existing equipment (288,100.00) (50,000.00) - Cost to remove existing equipment 15,000.00 17,500.00 11,470.00 TOTAL $(273,100.00) $(32,500.00) $11,470.00 MAINTENANCE/SUPPORT TEN (10)YEARS 10 YEAR MAINTENANCE AMANO SKIDATA WPS Maintenance-Year 1 206,462.00 122,192.10 138,420.00 Maintenance-Year 2 299,881.00 163,241.70 205,900.00 Maintenance-Year 3 325,159.75 320,446.30 218,254.00 Maintenance-Year 4 350,527.25 330,844.20 229,985.00 Maintenance-Year 5 375,986.61 341,553.70 248,384.00 Maintenance-Year 6 401,543.04 352,583.40 270,698.00 Maintenance-Year 7 427,142.87 363,944.50 276,107.00 Maintenance-Year 8 452,948.55 375,646.40 284,391.00 Maintenance-Year 9 478,808.63 387,699.70 295,767.00 Maintenance-Year 10 504,777.81 400,114.60 310,555.00 TOTAL $3,823,237.52 $3,158,266.60 $2,478,461.00 Skidata is $664,970.92 (17%) lower than Amano and $679,805.60 (27%) higher than WPS. SUM MARY/GRANDTOTAL OF ALL COSTS—TEN (10)YEARS: AMANO SKIDATA WPS Equipment Cost 2,885,500.00 2,830,004.00 2,332,315.00 Additional Installation Cost - 143,750.00 76,630.00 Software Cost 227,975.00 331,579.00 29,800.00 Existing Equipment (273,100.00) (32,500.00) 11,470.00 Maintenance Cost- 10 YEARS 3,823,237.52 3,158,266.60 2,478,461.00 Other 305,475.00 362,079.00 330,460.00 TOTAL $6,969,087.52 $6,793,178.60 $5,259,136.00 Over a ten (10) year period, including all maintenance and support, the grand total cost of Skidata is $175,908.92 (3%) lower than Amano and $1,534,042.60 (29%)higher than WPS. T:\AGENDA12015\June1PROCUREMENT\ITN 2014-170-SW Parking Garage Gated Revenue Control System for the City of Miami Beach MEMO (20150526 KGB).doc 21