TITLE
Recommendation to authorize City Manager to enter into a three-year extension, with two additional one-year options at City’s discretion, of the term of the operating agreement with Ampco System Parking, Inc., for parking management services at the Long Beach Airport; and to update and clarify certain lease language and provisions. (District 5)
DISCUSSION
The City and System Parking, Inc. entered into an agreement on June 1, 1991, allowing
System Parking to manage the Long Beach Airport’s parking facilities. In October 1993,
System Parking assigned its right, title and interest in the parking agreement to ABM
Industries Incorporated (ABM). As a result, Ampco System Parking, a wholly-owned
subsidiary of ABM, is the present operator of parking facilities at the Airport. In May
1996, the agreement was amended to extend the term of the parking agreement on a
month-to-month basis.
Ampco System Parking has proposed, and Public Works staff supports, a modification
to the Parking Agreement whereby Ampco System Parking would, at its sole cost and
expense, replace its on-site office trailer with a more secure facility relocated to an area
which would allow better pedestrian traffic flow.
Ampco System’s current administration trailer is located directly in the centerline of the
passenger walkways between the rental car lot and surface parking lot B (Exhibit A),
creating a pedestrian guidance issue for those not familiar with the walkway course.
Additionally, the trailer is multi-use without an integrated, secure section for cash
management. Both of these issues would be addressed by Ampco System’s acquisition
of a new trailer, more tailored to their administrative and security needs, and relocated
to allow a “line-of-sight” direct walkway course between the rental car lot, surface
parking lot B and the Terminal building (Exhibit B). In consideration of Ampco System’s
incremental investment to provide a new and relocated administrative management
trailer, a minimum incremental three-year term is proposed, within which to amortize
Ampco System’s investment.
The costs associated with the parking facilities management agreement were originally
market-based, through a Request for Proposals selection process, and have since been
governed by a cost of living index, which is proposed to continue. Based on a recent
market assessment, costs continue to be market-competitive. In addition, based on
input from the offices of the City Attorney and City Auditor, the City desires to update
and clarify certain lease language and provisions to better reflect current operations and
the intent of the parties.
TERM: Three (3) years. The City Manager would have the option to extend this
Agreement for up to two additional one-year terms upon a determination that it would be
in the City’s best interest to do so.
This matter was reviewed by Deputy City Attorney Lisa Peskay Malmsten on June 16,
2006 and Budget Management Officer David Wodynski on June 9,2006.
TIMING CONSIDERATIONS
City Council action is requested on June 20, 2006, in order to facilitate the replacement
of the existing parking management office with a more secure facility in an area that will
also improve pedestrian traffic flow.
FISCAL IMPACT
There is no fiscal impact associated with this requested action.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
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CHRISTINE F. ANDERSEN |
APPROVED: |
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DIRECTOR OF PUBLIC WORKS |
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GERALD R. MILLER |
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CITY MANAGER |