2008-26839 ResoRESOLUTION NO. 2008-26839
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT
WITH IMPERIAL PARKING, INC. (IMPARK), PURSUANT TO
REQUEST FOR PROPOSALS (RFP) NO. 11-07/08 TO PROVIDE
PARKING CASHIERS, ATTENDANTS, AND SUPERVISORS FOR THE
CITY OF MIAMI BEACH PARKING SYSTEM; SAID AGREEMENT
HAVING AN INITIAL TERM OF THREE (3) YEARS, COMMENCING ON
AUGUST 11, 2008, AND ENDING ON AUGUST 10, 2011, WITH TWO
(2) ONE-YEAR RENEWAL OPTIONS, UPON THE SAME TERMS AND
CONDITIONS, AT THE CITY'S SOLE DISCRETION.
WHEREAS, the City's contract with Standard Parking, to provide for cashiers, attendants,
and supervisors for the City's Parking System, expired on January 3, 2008, and, pursuant to
Resolution No.2007-26731, the City Commission determined not to exercise the renewal option and
instead initiate a competitive process; and
WHEREAS, accordingly, at its December 12, 2007 meeting, pursuant to Resolution No.
2007-26731, the Mayor and City Commission authorized the Administration to issue a Request for
Proposals for parking cashiers, attendants, and supervisors for the City of Miami Beach Parking
System (the RFP); and
WHEREAS, on January 8, 2008, RFP No. 11-07/08 was issued, and notices sent to over 12
firms; and
WHEREAS, on the specified due date for receipt of proposals, on February 15, 2008, the
Procurement Division received responses to the RFP from the following firms: AMPCO System
Parking; Central Parking System; Double Park; Five Star Parking; Impark; Laz Parking; and
Standard Parking; and
WHEREAS, at its meeting on April 16, 2008, the Mayor and Commission approved
Resolution No. 2008-26810, and authorized the Administration to enter into contract negotiations
with the recommended number one ranked proposer pursuant to the RFP, Imperial Parking, Inc.
(Impark); and
WHEREAS, as part of its motion authorizing negotiations with Impark, the City Commission
directed the Administration to meet with Impark and endeavor to further negotiate the best price
possible for the City; the Administration was further instructed to bring a negotiated contract back to
the City Commission, upon conclusion of successful negotiations; and
WHEREAS, Impark's RFP price submittal was $14.37 per hour, and $17.29 per hour for
cashiers/attendants and supervisors, respectively, equating to an annual contract value of $3,222,
954; and
WHEREAS, following further negotiation and discussions with the City Administration,
Impark's negotiated proposal (best and final offer) provides for the following hourly billable rates, as
well as other commitments:
• Cashiers/Attendants Hourly Billable Rate: $13.88;
• Supervisor Hourly Billable Rate: $16.77;
• Price includes all services, including "value added services," proposed by Impark in its
response to the RFP;
• Impark agrees to make all Standard Parking employees who choose to migrate over to
Impark, at a minimum, "whole" to their existing wage/benefit package (including maintaining
the same number of full-time employees, not reducing any current employee wages for
those currently earning more than the Living Wage Ordinance [provided that they have been
earning that wage since the bid process began], and matching their sick and personal day
allotment); and
WHEREAS, Impark's negotiated price proposal (best and final offer) equates to an annual
contract value of $3,116,987, representing an annual reduction of $105,975, or $317,925 over the
initial three year term of the contract, and $529,875 over the full term of the contract (including the
initial three-year term and the renewal options), from its RFP price submittal; and
WHEREAS, Impark's negotiated price proposal (best and final offer) affords an annual cost
saving of $167,863 from the current contract costs, equating to a savings of $503,589 over the initial
three year term, or $839,315 over the full term of the contract (including the renewal options); and
WHEREAS, accordingly, the City Administration would recommend that the Mayor and City
Commission approve and authorize the Mayor and City Clerk to execute an Agreement with Impark.
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 approve
and authorize the Mayor and City Clerk to execute an Agreement with Imperial Parking, Inc. (Impark),
pursuant to Request for Proposals (RFP) No. 11-07/08 to provide parking cashiers, attendants, and
supervisors .or the City of Miami Beach Parking System; said Agreement having an initial term of
three (3) years, commencing on August 11, 2008, and ending on August 10, 2011, with two (2) one-
year renewal options, upon the same terms and conditions, at the City's sole discretion.
PASSED AND ADOPTED this 25th. ,day of June , 2008.
ATTEST:
CITY CLERK Robert Parcher A OR Mat i H rrera Bower
APPROVED AS TO
FORM & LANGUAGE
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COMMISSION ITEM SUMMARY
Condensed Title:
Imperial Parking, Inc. `Impark" contract negotiations pursuant to RFP NO. 11- 07/08, to provide parking cashiers,
attendants and supervisors for the City of Miami Beach Parking System.
Ke Intended Outcome Su orted:
Maintain or improve traffic. flow and improve parking availability.
Supporting Data (Surveys, Environmental Scan, etc.):
There had been an overall increase of 9.57% in total vehicle entries in City garages between 2004 and 2007, thus
maintainin the need for arkin attendant and cashiers.
Issue:
Shall the Commission accept Impark's best and final offer and approve an agreement?
Item Summa /Recommendation:
The City's existing contract for cashiers, attendants, and supervisors expired on 1/3/08. The City Commission
determined not to exercise a renewal option. The current contract has been extended on amonth-to-month term until
such time that a new contract is awarded. At its 12/12/07 meeting, the City Commission authorized the Administration
to issue this RFP for said services.
On 4/16/08, the City Commission authorized the Administration to enter into contract negotiations with the number
one ranked firm Impark. Impark's pricing proposal in their response to the RFP was $14.27 per hour for
cashiers/attendants and $17.29 per hour for supervisors, equating to an annual cost of $3,222,962.
During negotiations a detailed analysis and discussion of each of the cost components (wages, benefits, overhead,
and profits) was conducted to explore methods to reduce the overall contract costs. Impark's best and final offer
includes the following hourly billable rates and commitments: (1) Hourly Billable Rate: cashiers/Attendants: $13.88
and Supervisor: $16.77; (2) all services, including value added services, proposed by Impark in their RFP submittal;
and (3) Impark shall keep all Standard Parking employees who migrate over to Impark at a minimum whole to their
existing wage/benefit package, including maintaining the same number of full-time employees, not reducing any
current employee wages for those currently earning more than the Living Wage Ordinance, and matching their sick
and personal day allotment.
Impark's initial price proposal equated to an annual contact value of $3,222,962. Impark's negotiated price proposal
(best and final offer) equates to an annual contract value of $3,116,987, for an annual reduction of $105,975 or
$317,925 over the initial three year term and $529,875 over the full term of the agreement (one three-year term and
one two-year term) from their RFP submittal. Impark's negotiated price proposal (best and final offer) affords an
annual cost saving of $167,864 over the current contract costs equating to a savings of $503,592 over a three year
term or $839,320 over the full term of the agreement (one three-year term and onetwo-year term). The Resolution
attached authorizes the Mayor and the City Clerk to execute the contract with these negotiated terms, which were the
result of committed and good faith efforts by the City and Impark. Given the Evaluation Committee and the
Manager's recommendation in the original ranking of the proposals, and given the further cost savings generated by
the negotiation, if the financial terms negotiated are acceptable to the Mayor and City Commission, then the
Manager's recommendation is to approve the attached Resolution.
Adviso Board Recommendation:
N/A
Financial Information:
Source of Amount Account Approved
Funds: Funds are available from the following
~ $3,116,987 Parking Department funds: Fund 480-
0463-000312; 7th Street Garage 142-
6976-000312; and RDA Anchor
Gara a 463-1990-00312.
OBPI Total $3,116,987
Financial Im act Summa
Ci Clerk's Office Le islative Trackin
Saul Frances, Parking Department
Sian-Offs.
Department Director Assistant City Manager City Manager
SF RCM JMG
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City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
To: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: June 25, 2008
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK
TO EXECUTE AN AGREEMENT WITH IMPERIAL PARKING, INC. (IMPARK),
PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 11-07/08 TO PROVIDE
PARKING CASHIERS, ATTENDANTS, AND SUPERVISORS FOR THE CITY OF MIAMI
BEACH PARKING SYSTEM; SAID AGREEMENT HAVING AN INITIAL TERM OF
THREE (3) YEARS, COMMENCING ON AUGUST 11, 2008, AND ENDING ON AUGUST
10, 2011, WITH TWO (2) ONE-YEAR RENEWAL OPTIONS, UPON THE SAME TERMS
AND CONDITIONS, AT THE CITY'S SOLE DISCRETION.
ADMINISTRATION RECOMMENDATION
Pursuant to Resolution No.2008-26810, the City Administration was authorized to negotiate with the
first ranked proposer, Imperial Parking, Inc. (Impark), in response to the above-referenced RFP to
provide parking cashiers, attendants, and supervisors for the City's Parking System (the RFP).
Following said negotiations, the final and best offer from Impark improved upon the contract rates
offered in the initial RFP response by an annual reduction of $105,975, or $317,925 over the initial
three year term of the contract, or $529,875 over the full term of the contract (including the initial
three-year term and the renewal options). Further, the negotiated price proposal affords an annual
cost savings of $167,863 from the current contract costs, equating to a savings of $503,589 over the
initial three year term, or $839,315 over the full term of the contract (including the renewal options).
At this time, it appears that the current negotiated contract represents the lowest cost for which this
vendor is willing to perform the requested services. According to information provided by the vendor
and analyzed by our staff, the profit value that this contract cost represents is $87,500 per year,
which is a 27% reduction from the original proposed amount of $120,000. This is a significant effort
by the contractor to evidence their desire to be engaged by the City. A full review of contract costs is
found on Exhibit B.
The Resolution attached is ready for your approval and authorizes the Mayor and the City Clerk to
execute the contract with these negotiated terms, which were the result of committed and good faith
efforts by the City and Impark. Given the Evaluation Committee and the Manager's
recommendation in the original ranking of the proposals, and given the further cost savings
generated by the negotiation, if the financial terms negotiated are acceptable to the Mayor and City
Commission, then the attached Resolution is recommended.
FUNDING
$3,116,987 Funds are available from the following Parking Department funds: Fund 480-0463-
000312; 7th Street Garage 142-6976-000312; and RDA Anchor Garage 463-1990-
00312.
KEY INTENDED OUTCOMES SUPPORTED
Maintain or improve traffic flow and improve parking availability.
ANALYSIS
At its regular meeting on April 16, 2008, following extensive discussion, the Mayor and City Commission
adopted Resolution No. 2008-26810 (Commission Memorandum and Resolution No. 2008-26810
attached as Exhibit "A" hereto), which authorized the City Administration to enter into negotiations with
Impark, as the recommended top-ranked proposer pursuant to the RFP.
The City's negotiating team included the following staff members: Robert Middaugh, Assistant City
Manager; Patricia Walker, Chief Financial Officer; and Saul Frances, Parking Director. Impark was
represented by Mike McKeon, Vice-President Central US, and Chester Escobar, General Manager.
The parties met on the following dates: April 22, 2008; May 14, 2008; and June 12, 2008.
Impark's RFP Proposal
In its response to the RFP, Impark proposed a dedicated human resources professional for this
contract. This represents a commitment on the part of the firm to the recruitment and retention of
employees. The company stresses the professional appearance of its employees, and has a very
well developed program and stresses customer service from its employees. In fact, Impark
proposed certain value added services including a City "ambassador" program and a Motorists
Assistance Program for facility users, which translates into assistance with lock outs, fuel, batteries
and flat tires offered and promoted through a "Parking Pete" program. Employees of the company
are also expected to be the "eyes and ears" for the City in reporting facility maintenance issues that
need to be addressed. Impark also has a well developed corporate philosophy and program to
support Green initiatives and by far their proposal represented the most environmentally committed
position.
Impark's pricing proposal, in its response to the RFP, was $14.37 per hour for cashiers/attendants
and $17.29 per hour for supervisors, as shown below.
RFP Price Proposal
Position Hours % by Position Hourly Rate Annual Value
Cashier/Attendant Hours 149,892 71% $14.37 $2,153,948
Supervisor Hours 61,828 29% $17.29 $1,069,006
Total: 211,720 100% $3,222,954
During the course of the aforestated meetings with Impark, a detailed analysis and discussion was
conducted for each. of the cost components (wages, benefits, overhead, and profits) to explore
methods to reduce the overall contract costs. Also, alternative rate structures and CPI (Consumer
Price Index) increases were explored to assess contract impacts. None of the alternatives to rate
structures and/or CPI impacts was deemed feasible, as this nature of term/condition would have
been outside the scope of the RFP requirements. The negotiations were successful in reducing the
contract costs to the City and further providing the City additional savings. The final rate for
attendants, which is the largest cost in the contract to the City, is below the second ranked firm and
within $.13 per hour of the third ranked firm. Impark also reduced its profit margin to the same range
as the second ranked firm.
Impark's negotiated proposal (best and final offer) includes the following hourly billable rates and
commitments:
• Cashiers/Attendants Hourly Billable Rate: $13.88;
• Supervisor Hourly Billable Rate: $16.77;
• All services, including the value added services, proposed by Impark in its response to the
RFP;
• Impark commits to making all Standard Parking employees who choose to migrate to
Impark, at a minimum, "whole" to their existing wage/benefit package (including maintaining
the same number of full-time employees, not reducing any current employee wages for
those currently earning more than the City's Living Wage Ordinance (provided that they have
been earning that wage since the bid process began), and matching their sick and personal
day allotment).
Negotiated Price Proposal/Best and Final Offer
Position Hours Percentage (%) Hourly Annual Value
by Position Billable Rate
To City
Cashier/Attendant Hours 149,892 71% $13.88 $2,080,277
Supervisor Hours 61,828 29% $16.77 $1,036,710
Total: 211,720 100% $3,116,987
Impark's negotiated price proposal (best and final offer) equates to an annual contract value of
$3,116,987, representing an annual reduction of $105,975, or $317,925 over the initial three year
term of the contract, and $529,875 over the full term of the contract (including the initial three-year
term and renewal options), from its RFP price submittal.
Impark's final price proposal equates to an annual contract value savings from the current contract
rate of $167,864 or $503,592 over the initial three year term of the contract, and $839,320 over the
full term of the contract (including the three (3) year initial term and renewal options).
Please refer to the attached matrix in Exhibit "B" which depicts a comparison of: (1) total wages
paid; (2) total benefits and overhead costs; (3) total profits; and (4) total contract value over the
initial three year term and over the full term (including renewal options), for each of the top three
ranked firms (Impark, LAZ, and Standard Parking, respectively). .
CONCLUSION
The final and best offer from Impark improved upon the contract rates offered in the initial RFP
response by an annual reduction of $105,975, or $317,925 over the initial three year term of the
contract, and $529,875 over the full term of the contract (including the initial three-year term and the
renewal options). Further, the negotiated price proposal affords an annual cost saving of $167,863
from the current contract costs, equating to a savings of $503,589 over the initial three year term, or
$839,315 over the full term of the contract (including the renewal options).
At this time, it appears that the current negotiated contract represents the lowest cost for which this
vendor is willing to perform the requested services. The profit value that this contract cost
represents is $87,500 per year, which is a 27% reduction from the original proposed amount of
$120,000. This is a significant effort by the contractor to evidence their desire to be engaged by the
City.
The combination of improved levels of service and competitive rates that assure a significant
savings to the City over the first three contract years and the tenor of the actual negotiations, provide
a level of comfort for the Administration in finalizing a contract with Impark.
The Resolution attached authorizes the Mayor and the City Clerk to execute the contract with these
negotiated terms, which were the result of committed and good faith efforts by the City and Impark.
Given the Evaluation Committee and the Manager's recommendation in the original ranking of the
proposals, and given the further cost savings generated by the negotiation, if the financial terms
negotiated are acceptable to the Mayor and City Commission, then the Manager's recommendation
is to approve the attached Resolution.
The form of the contract itself would be substantially based on the form of the City's former
agreement with Standard Parking for provision of these services.
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