~RLY Meeting Date: September 10, 2013 Item Number: F 15 T: Frm: Subject: AGENDA REPORT Hnrable Mayr & City Cuncil Chad Lynn, Directr f Parking Operatins SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF BEVERLY HILLS AND SENTRY CONTROL SYSTEMS, INC. FOR THE EXPANSION, INCLUDING MAINTENANCE AND OPERATIONS OF THE PARKING ACCESS AND REVENUE CONTROL SYSTEM (PARCS) FOR THE PARKING FACILITIES LOCATED IN CITY, AND; APPROVAL OF A PURCHASE ORDER IN THE AMOUNT OF $2,964,075 Attachments: 1. Secnd Amendment t the Agreement 2. Example f Pay-n-Ft System 3. Example f Space Cunting System RECOMMENDATION Staff recmmends that the City Cuncil mve t apprve the secnd amendment t the agreement between the City f Beverly Hills and Sentry Cntrl Systems, Inc. fr the cntinued maintenance and repairs and fr the replacement and upgrade f the Parking Access and Revenue Cntrl System (PARCS), and; Apprval f a purchase rder in amunt f $2,964,075 INTRODUCTION The City entered int an agreement with Sentry Cntrl Systems, Inc. in December f 2007 fr the replacement f the existing Parking Access and Revenue Cntrl System (PARCS). The PARCS system is the equipment and services used at the parking facilities fr the management f transient (visitr) and mnthly parking services prvided at the parking garages. This equipment includes the gate arms, ticket dispensers, cash registers, pay-n-ft statins, validatin machines, mnthly parking keycards and ther related hardware and sftware needed t perate the parking facilities and prvide parking services t ur custmers. Page 1 f 6 9/3/2013
Sentry Cntrl Systems, Inc., the City s current service prvider, is the reginal authrized equipment dealer and service prvider fr the Skidata parking system. Skidata is the riginal equipment manufacturer f the PARCS system perated by the City at the public parking garages. The City has a current agreement (Agreement N. 489-07 and Amendment 1 N. 172-08) fr the equipment purchase, preventative maintenance and nging repair services f the PARCS equipment dated December 27, 2007, cmmencing n Octber 15, 2008 and terminating n Octber 15, 2013 unless amended. The City will need t amend the current agreement r enter int sme frm f new agreement in rder t cntinue the maintenance and repair f the existing equipment. Equipment was installed as early as 2008 and as recent as 2012 with the cmmissining f the 450 Crescent (Annenberg) parking facility. The expected life f this equipment is seven t ten years frm the time f installatin, and with cntinued maintenance, repairs and upgrades the expected life f the equipment culd be extended an additinal five years r mre. With substantial replacement f key cmpnents and the availability f cmpnents in the secndary market, the life f this equipment culd be extended fr an additinal five years. This wuld result in a ttal service life, with prper maintenance, repair, upgrades and replacements, f up t 20 years frm the time f riginal installatin. Additinally, based n discussins related t the imprvement f the parking envirnment and services ffered t ur cmmunity, requests have been made fr the expansin f technlgy. Technlgies such as pay-n-ft systems, which allw custmers t pay parking fees prir t returning t their vehicles and exiting the facility withut the assistance f an attendant at the exit lane r space cunting/mnitring systems which can prvide real-time infrmatin via webpages, smart phne applicatins and adaptive wayfinding signage utside f the parking garages. Based n the current capital invested in the purchase and implementatin f this system, the need fr cntinued maintenance and repair services f the existing equipment and the desire t expand the use f pay-n-ft and space mnitring technlgies, staff is prpsing this secnd amendment t the current agreement which prvides fr these nging services and cmprehensive pre-negtiated pricing fr freseeable upgrades and imprvements and the assciated nging csts assciated with these imprvements. DISCUSSION The secnd amendment t the agreement with Sentry Cntrl Systems, Inc is split int tw majr sectins: Wrk that is currently being prvided t the City that will cntinued t be prvided under the same r imprved terms and the assciated fees fr such services Pricing and scpe f wrk fr ptinal upgrades f prducts and services, such as pay-n-ft and space cunting systems The amendment cntains the fllwing prvisins fr services currently prvided t the City that will cntinue t be prvided: (Attachment 1, Exhibit B-i) Page2f6 9/3/2013
Maintains the same terms and cnditins fr installatins, services, warranty, maintenance and repair as the riginal agreement fr existing equipment and future purchases Memrializes a 21 % minimum discunt n future purchases (current and industry standard discunt is 18%) Outlines terms, cnditins and pricing fr cntinued preventative maintenance and repair service Ensures the system hardware is cntinually in peratin and up-t-date Ensures access t latest sftware releases Extends the hurs f Regular Service and reduces the rates f Emergency Service Fees fr wrk perfrmed Establishes a nt-t-exceed amunt f $175,000 (and a 3% discunt fr annual payment) fr all existing equipment, including 450 Crescent fr apprximately $5,000 less than the current service fee, which des nt including the 450 Crescent parking facility The amendment cntains the fllwing prvisins fr upgrades f prducts and services; ptinal wrk t be carried ut at the sle discretin f the City: (Attachment 1, Exhibit B- 2) Pricing and scpe f wrk fr the expansin/cnversin t pay-n-ft cashiering peratins (Attachment 1, Exhibit A) Cnfiguratin in which a custmer pays parking fees prir t exit at a pay statin and then uses their paid ticket t exit the parking facility This may r may nt be implemented in an attendantless envirnment This system may als be used t implement the autmated cllectin f mnthly parking fees and cnvert Early Bird Parking t parking cards Early Bird Parking is a discunt rate ffered in underutilized parking facilities t users that arriving befre 9am and staying all day Three years f warranty cverage and tw years f preventative maintenance service included in the purchase/installatin pricing Pricing and scpe f wrk fr expansin f space cunting/mnitring systems (Attachment 1, Exhibit C) This is a system similar t the red/green light system fund at Westfield s Century City The system currently exists at the 216 S Beverly Parking facility in which each parking space has a light that displays either GREEN fr available spaces r RED fr ccupied spaces The system prvides a series directinal signage and space cunts at each custmer decisin pint (garage intersectins and ramps) The system is als capable f marking different clrs fr different purpses, such as BLUE fr disabled parking PURPLE fr reserved spaces and may even be prgramed t display clrs fr specific purpses, such as PINK fr Brest Cancer Awareness r YELLOW t cmmemrate Memrial Day. Once installed, this system will ppulate infrmatin fr adaptive wayfinding and directinal signage bth nline (GPS and websites) and n-street (signage), shwing available parking, accurate t a single space Five years f warranty and preventative maintenance service included in purchase/installatin pricing Establishes the csts fr nging services related t these expansins Page 3 f 6 9/3/2013
Nt t exceed $40000 per year fr all assciated expansins and installatins, based n a the scale established in Attachment 2 f Exhibit B-2 Althugh the agreement prvides fr pricing and scpe f wrk fr the purchase and installatin f upgraded prducts and services system wide, the City has nt yet cmmitted t a ttal implementatin f these technlgies. Hwever, based n the current equipment need and the City Cuncil s directin t imprve the custmer services experience at the parking facilities staff has included the csts f the fllwing wrk in the prpsed amendment: Cntinue Preventative Maintenance services fr the five year term Estimated repair and nn-maintenance service fees fr the five year term Expanding Pay-n-Ft ptins at 461 N Bedfrd, 440 N Camden, 221 and 333 N Crescent Expanding Space Cunting/Mnitring t 216 5 Beverly, 345 and 438 N Beverly (William Snma and Crate & Barrel), 450 N Crescent Drive and the Santa Mnica 5 parking decks Implementatin f the E-Val system, an auditable electrnic validatin system, including iphne and Andrid applicatins, fr the validatin f parking fees Fr use at City Hall, City Events, Tenants, and varius lcal business cntracts While staff recmmends apprval f this amendment as presented, the City Cuncil may chse ther curses f actin, including the fllwing: Alternative I - Direct staff t return with an amendment t the agreement with a reduced scpe f wrk t cver nly existing equipment maintenance and service needs Staff des nt recmmend this curse f actin, as it prvides nging wrk, services and revenues t the service prvider withut lcking in the value f future knwn and/r anticipated purchases The equipment and services that are part f the current prpsed amendment are expanding the use f infrastructure already in place and paid fr by the City, and integrated with the City s current PARCS equipment If the City Cuncil is nt interested in extending the life f the current equipment and is interested in replacing/recapitalizing the parking system within the next 3-5 years, staff wuld recmmend executing an amendment with a reduced scpe f wrk, hwever, reduced functinality and services which integrate with the parking system (such as adaptive wayfinding and space cunts) may require waiting until a new prvider is selected and/r a separate, parallel systems may need t be installed Alternative 2 - Direct staff t return t the City Cuncil with a new agreement fr current and/r expanded services and prducts instead f executing a secnd amendment t the existing agreement Staff des nt recmmend this curse f actin, as the current agreement cntains terms and services negtiated using dcuments prepared by industry cnsultants fr the cmplete replacement f a PARCS system By maintaining the terms fr these additinal services the City cntinues t realize the benefits f the existing agreement terms and cnditins Page4f6 9/3/2013
Alternative 3 - Nt execute any amendment t this agreement nr enter int a new agreement If this alternative is cnsidered, staff recmmends appinting an Ad-Hc Cmmittee f the City Cuncil t review the necessary maintenance and repair needs f this equipment t develp and recmmend a scpe f wrk and negtiated agreement fr cntinued peratins This curse f actin wuld result in an acceleratin f the deteriratin f the PARCS equipment and wuld severely limit the City s ability t maintain a fully functinal parking system Maintenance and repairs wuld be limited t nly thse services which culd be executed under staff and/r the City Manager s authrity, which wuld nt prvide fr the basic levels f service necessary t keep a system f this scpe and magnitude perating prperly As the systems functinality is reduced, revenue lsses related t bth shrink and an inability t cllect funds due t malfunctining systems wuld increase This wuld als prevent the expansin f any additinal services, such as pay-n-ft and/r space cunting/mnitring FISCAL IMPACT The ttal nt-t-exceed amunt f the prpsed Secnd Amendment t the agreement with Sentry Cntrl Systems, Inc is $2,964,075. The ttal value f this nt-t-exceed amunt is budgeted and represented in the prjected future budgets fr the Operating Budget fr the Parking Services Prgrams (Prgram Series 81-072) and the Capital Imprvement Prgram Budget (Prject #0785 Parking Revenue Cntrl System Upgrade and #0786 Parking Prgram Upgrade and Imprvements) thrugh 2018. This ttal nt-t-exceed amunt includes the fllwing estimated expenses ver the term f the agreement: PrductlService Value Ttal Cst Preventative Maintenance -_Current_Equipment $175,000 fr 5 Years $8750001 Onging Repairs/Service $75,000 fr 5 Years $375,0002 Pay-n-Ft Upgrade One Time Capital $666,150~ Space Cunting/Mnitring One Time Capital $847,925~ Additinal Maintenance Onging and $2O0,000~ and Cntingencies One Time Capital TOTAL $2,964,075 The ttal nt-t-exceed amunt f this amendment des NOT represent the ttal value f the prducts and services listed in the agreement. This nt-t-exceed amunt represents the estimated cst f wrk based n services imprvements and anticipated t be carried ut during the term f this agreement. Wrk as described n Page 3 & 4 fr Existing Services t be Cntinued 2 Wrk as described n Page 3 & 4 fr Existing Services t be Cntinued ~ Wrk as described n Page 3 & 4 fr New and Upgraded Prducts/Services ~ Wrk as described n Page 3 & 4 fr New and Upgraded Prducts/Services ~ Cntingencies, Preventative Maintenance and Repair Services fr New and Upgraded Prducts/Services Page 5 f 6 9/3/2013
The ttal value f the prducts and services listed in the amendment is $7,712,112. This represents all knwn wrk that the City may wish t cmplete during the term f the agreement, but which will require additinal directin and apprval frm the City Cuncil befre being executed. Based n this amendment, wrk valued ver the nt-t-exceed amunt f apprximately $2.9 millin will require an additinal amendment t the agreement. If the cumulative value f this additinal wrk is ver $50,000, apprval by the City Cuncil will be required at a future meeting. Listing all knwn wrk as part f the current amendment ensures the City is getting the mst favrable pricing at the time the amendment is executed and thrughut the lngterm relatinship established by the significant capital investment in the existing equipment and ptential upgrades. These pre-negtiated terms memrialize the City s pricing and limit increases after the City has invested in the partial deplyment f these prducts and services. The table belw represents all f the wrk and assciated values utlined in the current agreement: PrductlService Value Ttal Cst Preventative Maintenance -_Current_Equipment $175,000 fr 5 Years $875,000 Onging Repairs/Service $100,000 fr 5 Years $500,000 Pay-n-Ft Upgrade $2,308,037 Space Cunting/Mnitring $3,029,075 Preventative Maintenance -_Expanded_Equipment $40,000 fr 5 Years $200,000 Cnstructin Cntingency $800,000 TOTAL $7,712,112 It is anticipated that revenues will slightly imprve with the prpsed installatin f bth space cunting/mnitring system. It is als anticipated that revenues will slightly imprve and expenses may be slightly reduced with the implementatin f the pay-nft systems prpsed fr executin. Hwever, it is difficult t measure and quantify these revenue imprvements/expense reductins s staff is recmmending these prjects be cnsidered and apprved based n cst neutrality and the imprved custmer service experience. Dn Rhads Finance Apprv~Y Mahdi Aluzri Apprved By Page6f6 9/3/2013