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HomeMy WebLinkAboutItem L/. June 12, 2000 STAFF REPORT TO Mayor Campbell and Members of the City Council THRU: Keith Till, City Manager FROM Pamela Arends -King, Director of Administrative Services SUBJECT: AUTOMATION OF BEACH PARKING REVENUE COLLECTION SUMMARY OF REQUEST: Council to approve automation of beach parking revenue collection through a "park and pay" turnkey system managed by AMPCO System Parking, and authorize execution of agreement subject to legal counsel review. BACKGROUND: Currently the 80' and 10 °' Street beach parking lots are operated manually, with a collection booth at the 8'h Street beach parking lot entrance. Parking fees are collected as a car enters the lot. Automobiles can only enter 8 °i Street to access the 10th Street lot, they must use the emergency roadway under the pier. They may, however, exit at 10`h Street The existing system is inefficient and entails many indirect costs - a separate deposit bag is used for each person's shift and reconciled to the manual tickets issued. Each deposit bag is placed in a safe at the Lifeguard Station and either Chief Steve Cushman or Lt. Ross Pounds delivers the cash to the finance department. Every month, the lifeguard department prepares a monthly spreadsheet of the parking lot revenue. Before February of 2000, the beach parking lot revenue (cash) was picked up by a police officer, taken to the police department and placed in a safe. A finance employee picked up the cash in the safe and delivered it to the finance department where the cash was counted and deposited. The I" Street beach parking lot has only had revenues collected during the peak summer months. Recently a "pay and park" turnkey machine was placed into service on a three month trial basis, and it has worked successfully. There are several serious problems with the current system of beach parking lot revenue collection. Two major problems are the lack of control and accountability over the collection of the cash, and the liability of automobiles driving under the pier to park at the 10t1' Street lot. The tot playground and the showers are located right next to the emergency roadway. Due to the fact the collection of beach parking revenues is a manual Agenda Item , Automation of Beach Parking Revenue Collection June 12, 2000 — page 2 process, there is a great margin for error, lack of accountability for collections, and automobiles entering the lot without paying. The City's auditor has suggested the City consider implementing procedures to enhance security and improve internal controls in the collection of beach parking lot revenues through automation. They reemphasized this earlier this month when completing the interim audit for FY 99/00. Another problem with the current system is the traffic congestion during the peak summer months on Ocean Avenue from automobiles waiting to enter the 8°i street lot. To eliminate the potential for accidents and injury from automobiles driving under the pier, staff proposes blocking off the emergency roadway to public traffic and access to the 10`h Street lot will be from the 10 °i street beach lot entrance. A review of different types of parking lot automation from "pay and park" to "booth with gates" was conducted. The cost of the "booth with gates" ranged from $35,000 to $65,000 per beach lot plus an annual maintenance of at least $5,000. The cost of stand alone "pay and park" turnkey machines ranged from $15,000 to $65,000 depending on the features of each machine. If the City purchased either of these systems, it would be responsible for the maintenance and upkeep on the machines and City personnel would be responsible for collecting the revenues. Due to the expense of purchasing a system out - right, the decision was made to contact nationwide parking management companies that could provide "pay and park" turnkey machines and manage the collection of the revenues. Only two nationwide companies could be identified. Attachment I lists the requirements to effectively automate the beach parking revenue collection. A copy of the list was sent to each company. One of the key requirements was guaranteeing the City net revenues greater than or equal to the average net revenues for the last four years. Attachment 11 analyzes the last four years gross revenues from beach parking fees less the direct and indirect costs. The average gross revenue for the past four years was $370,205. Total average direct costs were $80,057 per year and total indirect average costs were $22,783 per year. The average net revenue for the past four years was $267,366. The City will receive a minimum of $267,366 per year and revenues above the $370,000 would be divided between the City and AMPCO. Revenues collected from $370,000 to $480,000 the City 60 %, AMPCO 40% and revenues collected over $480,000 the City 80 %, AMPCO 20 %. Another key requirement was that management provide the "pay and park" turnkey machines without any cost to the City. Other requirements included providing at least five references and three years audited financial statements. AMPCO System Parking was the only company that confirmed they could meet our requirements. The Company provided the past three years audited financial statements and five references. The California City references contacted were Riverside, Pasadena, Automation of Beach Parking Revenue Collection June 12 — Page 3 Beverly Hills, and Santa Monica. The City of Battle Creek, Michigan was also contacted. Each City was very satisfied with the quality of service AMPCO System Parking provided for both the "pay and park" turnkey management and the traditional parking garage /lot revenue collection systems. The City of Riverside and the City of Battle Creek, Michigan were just completing a five -year contract and were in the process of renewing the contracts for another five years. The references also stated they experienced a noticeable increase in revenue when they implemented the management programs with AMPCO System Parking. In order for the beach parking lots to operate smoothly and to ensure the people who are parking in the lots are abiding by the rules, the lots will be monitored by parking control personnel (Police Aides) on a full -time basis during the summer months. During the off season the lots will be monitored with fewer Police Aides. The Police Aides will also monitor the lots and post necessary signs when !ots become full during peak usage. The entrance to the I Oh street parking lot will open later in the morning and close earlier in the evening because it is located near residential units. FISCAL IMPACT: Staff does not expect any negative fiscal impact with the automation of the beach parking lot revenue collection. The City is guaranteed to receive $267,336, which was the net average revenue for the past four years. Based on conversations with the references provided, the number of automobiles that enter the lots before the booths open and the fact the I" Street lot will be collecting revenue on a year round basis, revenues are expected to increase. Also the safety hazard from automobiles driving under the pier is eliminated. Additionally, the cost of Police Aides monitoring the beach lot is offset by citations written. RECOMMENDATION: Approve the automation of the beach parking revenue collection through a "park and pay" turnkey system managed by AMPCO System Parking, and authorize execution of the agreement subject to legal counsel review. This is a one -year contract with option to extend for 3 years. NOTED AND APPROVED: Pamela Arends -King by Keith R. Till, City Manager Director of Administrative Services ATTACHMENT Automation of Beach Parking Revenue Collection June 12, 2000 May 10, 2000 Dear Thank -you for sending your proposal for the City of Seal Beach — Beach Parking Lot Fee Collection Service. Due to the fad there is more than one company that can provide the services we have come up with a list of requirements the vendor would have to meet. • Provide free standing self contained Pay and Display machines powered by solar energy or battery and adequate signage. The machines must adapt to flexible pay rates and accept debit cards, credit cards, coins, up to $20 bills and give change. The machines must also be bi- lingual. • The machines must be bulletproof and vandal - proof. • The machines must provide complete and detailed audit trials without being opened up. City staff must be able to obtain information and or run audit reports through computer automation. Therefore the Finance Department should be able to log on to the Pay and Display Machine computer program and view what each machine is collecting in revenues at any time without physically going out to each machine. • The machines should automatically page the management companies staff when the machine malfunctions (i.e. paper jam, out of paper, out of change etc). The response time to fix a malfunctioning machine must not exceed one hour. • Management Company must service and collect revenues from machines seven days a week from Memorial weekend through Labor day weekend. From Labor Day weekend to Memorial weekend revenues must be collected Saturdays, Sundays and at a minimum two days during the week for all beach parking lots. It is also responsible for securing and depositing all revenue collected. • Management company must have been in business at least 10 years and operate lots throughout the United States. The Company must also provide audited financial statements for the past three years and a minimum of five references. • Monthly revenue reports and submission of the City's share of revenue must be provided ten days after the close of the month. • The City proposes a one -year interim term with an option to extend to a three -year permanent term. The City will have the right to cancel the agreement after one year with no financial obligations for the City or the Management Company. The Management Company will retain ownership of the Pay & Display Machines and any ancillary equipment. • The Fee Schedule the City proposes is as follows: The Management Company will guarantee the City an amount equal to the Average Net Parking Income it received over the past four years of $267,300. In addition, gross revenue will be shared as follows: Revenue from $370;000 to $480,000 the city 60 %, management 40 %. Revenues over $480,000 the city 80 %, management 20"/x. • The Management Company will be responsible for any stolen revenues and show proof of insurance and be bonded. If you are able to meet the above requirements please provide bids no later than May 15, 2000. Please be sure to call me if you have any questions. Sincerely. Pamela Arends -King Director of Administrative Services/Treasurer City of Seal Beach w ATTACHMENT II Automation of Beach Parking Revenue Collection June 6, 2000 CITY OF SEAL BEACH ANALYSIS OF BEACH PARKING LOT REVENUE 1996 TO 1999 4 Year Jun -99 Jun -98 Jun -97 Jun -96 Averages Gross Revenues 405,641 327,926 384,734 362,520 370,205 Direct Costs: Labor /benefits 54,014 50,962 57,917 61,214 56,027 Lifegaurd Captain 21,699 21,179 20,659 20,139 20,919 Matl/Maint/sup 3,941 3,283 4,097 1,122 3,111 Subtotal 79,654 75,424 82,673 82,475 80,057 Indirect Costs: Finance Depart. 11,484 11,484 11,106 11,106 11,295 Police Depart. 7,501 7,222 7,090 7,020 7,208 Lifegaurd Depart. 4,280 4,280 4,280 4,280 4,280 Subtotal 23,265 22,986 22,476 22,406 22,783 Net Income 302,722 229,516 279,585 257,639 267,366