TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary documents including any necessary subsequent amendments, with Flash Parking, Inc., of Austin, TX, for parking access revenue control systems, at the Pike Outlet and Aquarium of the Pacific garages, on the same terms and conditions afforded to Texas Region 14 Education Service Center (Region 14 ESC), through Omnia Partners, in a total amount of $1,835,359, with a 20 percent contingency in the amount of $367,072, for a total contract amount not to exceed $2,202,431, until the Omnia Partners contract expires on July 31, 2024, with the option to renew for as long as the Omnia Partners contract is in effect, at the discretion of the City Manager; and
Authorize City Manager, or designee, to execute a lease-purchase agreement and related financing documents with Banc of America Public Capital Corp, of San Francisco, CA, for the financing of parking access revenue control systems, payable over an 8-year period at an interest rate to be determined when the agreement is executed. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Flash Parking, Inc. (Flash), for the purchase of Parking Access Revenue Control Systems (PARCS) at the Pike Outlet and Aquarium of the Pacific garages, and to execute a lease-purchase agreement through the City of Long Beach’s (City) Master Lease Agreement with Banc of America Public Capital Corp (BAPCC), for the financing of the PARCS equipment.
The current PARCS equipment located at the Pike and Aquarium Parking Garages are approaching the end of their useful life. Therefore, upgrading to a modern PARCS system is necessary to ensure efficient revenue collection, effective traffic management, and an improved user experience for facility visitors. Flash’s equipment is used in the Civic Center and City Place garages. Flash equipment has proven to be highly cost-effective for ongoing operations, accommodating various modern payment methods, and experiencing minimal downtime.
The Contracts and Grants Division within the Public Works Department researched procurement options for PARCS equipment and discovered that other agencies had completed an open, fair, transparent, and competitive procurement process. The City reviewed the cooperative agreement options and determined that the contracts between Omnia Partners and Flash provided the best value to the City.
City Charter Section 1802 provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment, and labor with other governmental agencies. This alternative procurement method can save time and reduce costs through economies of scale by purchasing under existing contracts from other government agencies on a voluntary and selective basis, when authorized by a Resolution adopted by the City Council.
City Council approval is also requested to authorize the City Manager to execute an eight-year lease-purchase agreement through the City's Master Lease Agreement with Banc of America Public Capital Corp., for the financing of the PARCS equipment. The Master Lease Agreement was approved by the City Council on September 18, 2018, to provide lease financing for a variety of capital equipment purchases. The Master Lease Agreement streamlines the purchasing and financing process to provide a cost-effective approach to facilitate the purchase of essential capital assets. This allows the City to meet immediate service demands by maintaining level annual expenditures and spreading acquisition costs over the term of the financing rather than budgeting a large one-time capital project expenditure.
This matter was reviewed by Deputy City Attorney Vanessa S. Ibarra on September 25, 2023, Purchasing Agent Michelle Wilson on September 14, 2023, and by Revenue Management Officer Geraldine Alejo on September 20, 2023.
SUSTAINABILITY
Investing in modern PARCS equipment aligns with the City’s Climate Action Plan commitment to emission reduction. By improving parking procedures, reducing vehicle idling times, and enhancing traffic management, the deployment of modern equipment will reduce greenhouse gas emissions and help promote a more sustainable city.
TIMING CONSIDERATIONS
City Council action to adopt the Resolution and award a contract with Flash concurrently, and execute a lease-purchase agreement with Banc of America Public Capital Corp is requested on October 10, 2023, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The total purchase price of the PARCS equipment will not exceed $2,202,431. Based on an indicative interest of 4.40 percent on August 30, 2023, the total amount for the lease-purchase agreement with BAPCC is estimated at $2,616,747, which includes principal, interest, and escrow fees. This equates to approximately $327,093 in annual debt service costs for the 8-year life of the financing. The amount is subject to change and will be finalized when the agreement is executed. The annual debt service amount will be budgeted in the Tidelands Operating Fund Group in the Public Works Department. It is anticipated that the annual debt service costs will be offset by a reduction in annual maintenance costs incurred for the current equipment, as well as increased parking revenues at the Pike and Aquarium Parking Garages from improved revenue collection following installation and parking rate increases approved by City Council as part of the Fiscal Year 2024 Budget. Staff will evaluate the revenue impact and cost efficiencies following installation of the new system. If needed, the department will return to the City Council with a request for appropriation, offset with identified revenue and cost efficiencies. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
ERIC LOPEZ
DIRECTOR OF PUBLIC WORKS
APPROVED:
THOMAS B. MODICA
CITY MANAGER