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Recommendation to adopt Specifications No. RFP AP22-131 and award a contract to LAZ Karp Associates, LLC, of Hartford, CT, for parking operations and management services at Long Beach Airport, in the amount of $2,908,837, authorize a 20 percent contingency in the amount of $581,767, authorize an additional contingency in the amount of $554,488 for the procurement of a Parking Access Revenue Control System and wayfinding system, for a total contract amount not to exceed $4,045,092 for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; and, authorize City Manager, or designee, to execute all documents necessary to enter into the contract, including any necessary subsequent amendments;
Authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 34491 with ABM Aviation, Inc., formerly ABM Parking Services, Inc., of Los Angeles, CA, to continue providing airport parking operations and management services until the Long Beach Airport transitions to a parking new contract, to increase the contract amount by $350,000 with a 10 percent contingency in the amount of $35,000, for a total contract amount not to exceed $9,432,391, and extend the term of the contract through April 30, 2023; and
Increase appropriations in the Airport Fund Group in the Airport Department by $160,530, offset by Airport operating revenue.
(Districts 4,5)
DISCUSSION
City Council approval is requested to enter into a contract with LAZ Parking California, LLC (LAZ), for parking operations and management services at Long Beach Airport (Airport). These services include staffing, customer service, oversight and maintenance of access and pay equipment, management of tenant parking, and maintenance associated with operating the Airport’s two parking structures and three surface parking lots.
The Request for Proposals (RFP) required a detailed scope of services for the full spectrum of parking operation needs, including management and customer services and experience, staffing and operational plans, cost proposals, and recommendations for procuring a Parking Access Revenue Control System (PARCS) to allow for modern parking operational methods to better serve Airport customers. Proposals were evaluated using the scope of service as a guide and were evaluated on organizational capacity and experience, method of approach, communications and reporting, and reasonableness of cost. After a thorough review and evaluation process by representatives from Long Beach and Palm Springs International Airports, consisting of reference checks and interviews, LAZ was determined to have best met all requirements of the RFP and displayed a complete understanding of the complexity of airport industry parking operations as well as the procurement of PARCS.
LAZ’s experience providing parking operations and management services to airports includes John Wayne Airport, Oakland International Airport, and Nashville International Airport. LAZ also manages the City of Long Beach-owned parking structures and lots, the LAX-it TNC/Taxi and Shuttle Lot at Los Angeles International Airport, and the 2nd and PCH shopping center parking structures.
LAZ’s parking management program will provide several opportunities to improve customer service and facility operations including “LAZgo!” a mobile parking reservation system. Customers will be able to pay for parking in advance and use scannable QR codes for easy entering and exiting of parking facilities. LAZ will also assist with procuring a new PARCS that will include license plate recognition capability, new entry and exit gates, and touchless payment equipment. In addition, LAZ’s Business Intelligence System technology provides advanced analytics and will allow for dynamic pricing to incentivize parking at the Airport.
The Request for Proposals (RFP) was advertised in the Long Beach Press-Telegram on September 28, 2022, and 13 potential bidders specializing in parking management services were notified of the bid opportunity. Of those proposers, nine downloaded the RFP via the City’s electronic bid system. The RFP document was made available from the Purchasing Division, located on the sixth floor of City Hall, and the Division’s website at www.longbeach.gov/purchasing <http://www.longbeach.gov/purchasing>. An RFP announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which is sent to 42 local, minority- owned, and women-owned business groups. Five proposals were received on October 27, 2022. Of those five proposers, none were Minority-owned Business Enterprise (MBEs), none were Women-owned Business Enterprises (WBEs), none were certified Small Business Enterprise (SBEs), and none were Long Beach vendors (Local).
City Council approval is also requested to amend Contract No. 34491 with ABM Aviation Inc. (ABM), to continue parking operations and management services at the Airport through April 30, 2023. The Airport’s existing parking management contract with ABM will expire February 28, 2023. LAZ has requested an additional two-month transition period to properly prepare for the management changeover. The extension of the current contract will ensure for continuity of existing services without disruption and allow LAZ to transition as the new operator, procure supplies, recruit staff, and meet all contractual requirements. LAZ will invite all current ABM employees to apply for employment and is committed to screening and retaining as many of the current employees as possible to ensure the Airport’s ongoing success.
Local Business Outreach
To align with the City’s outreach goal, Long Beach businesses are encouraged to submit proposals for City contracts. The Purchasing Division also assists businesses with registering on the Long Beach Buys database to download RFP specifications. Through outreach, three Long Beach vendors were notified to submit proposals, of which three downloaded and none submitted a proposal. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Principal Deputy City Attorney Richard F. Anthony on December 23, 2022, Purchasing Agent Michelle Wilson on December 20, 2022, and by Budget Analysis Officer Greg Sorensen on December 28, 2022.
TIMING CONSIDERATIONS
City Council action is requested on January 17, 2023, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The recommended action will increase the existing contract with ABM by $385,000, inclusive of a 10 percent contingency. The new contract with LAZ will not exceed $4,045,092 for a period of two years, inclusive of a 20 percent contingency and annual payments for the procurement of the PARCS and wayfinding systems. An appropriation increase of $160,530 is requested in the Airport Fund Group in the Airport Department, offset by Airport operating revenue. Subsequent years’ appropriation will be requested through the annual budget development process. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. A minimal local jobs impact is anticipated with this recommendation. Existing ABM employees at the Airport will have the opportunity to apply for employment with LAZ.
SUGGESTED ACTION
Approve recommendation.
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Respectfully Submitted,
CYNTHIA GUIDRY
DIRECTOR, LONG BEACH AIRPORT
APPROVED:
THOMAS B. MODICA
CITY MANAGER