SAN JOSE CAPITAL OF SILICON VALLEY

Transcription

1 CITY OF ~ SAN JOSE CAPITAL OF SILICON VALLEY TO: HONORABLE MAYOR AND CITY COUNCIL COUNCIL AGENDA: 9/17/13 ITEM: 2-, t~ Memorandum FROM: Julia H. Cooper SUBJECT: SEE BELOW DATE: Approved Date SUBJECT: REPORT ON REQUEST FOR PROPOSAL FOR PARKING PAY MACHINES RECOMMENDATION Report on Request for Proposal (RFP) for Parking Pay Machines and adopt a resolution authorizing the City Manager to: (a) Execute the Second Amendment to the Agreement with Caracal Enterprises LLC (doing business as VenTek International (Petaluma, CA) for Parldng Payment System Hardware and Hosting and Automated Payment Processing Services, to add eleven parking pay machines at various parks that are managed by Parks Recreation and Neighborhood Services (PRNS), and increase compensation by $143,848 for a revised maximum compensation not to exceed $300,514, for the initial term and first option period ending April 30, 2015; (b) Negotiate and execute amendments and change orders to the agreement to purchase additional machines as required, maintenance and support, payment processing, and a hosted Web based application for system administration; and to add, delete or relocate parking pay machines as required, subject to the appropriation of funds; (c) Execute up to four additional two-year options to extend the term of the agreement through 2023, subject to the appropriation of funds. OUTCOME Expand the existing automated online parldng payment system network to additional parking lots. In addition to the pay station hardware, the system includes secure online credit card processing services and remote system administration that allows staff to track parldng revenue, monitor parking conditions in real time, dynamically change parking fees, and issue pre-paid parldng cards.

2 Subject: Report on RFP for Parking Pay Machines Page 2 BACKGROUND In 2011, the City entered into an Agreement with VenTek for seven Parking Pay Machines (PPMs) located at the Happy Hollow Park & Zoo parking lot. The initial term of this agreement was through April 30, 2013, with up to two additional 2-year options to extend the term. These self service machines allow patrons to pay for parking using a variety of payment methods. Each machine can handle payments for multiple parldng spaces. The PPMs allow City parking functions to be performed through a single network using Web base technology. In October 2012, the City executed the First Amendment to the Agreement to adjust the sales tax amount. The City exercised the first option on May 1, 2013 to extend the term through April 30, The PRNS Department has a requirement to expand their network of automated parking machines to additional park locations. Due to customer acceptance and the success of the program, PRNS identified the need for eleven additional machines to be located at Almaden Lake (quantity 2), Alum Rock Park (quantity 3), Lake Cunningham (quantity 4) and Kelley Park (quantity 2). Under a separate Agreement, the Department of Transportation (DOT) also utilizes VenTek PPMs at various streets and DOT managed parking lots. At the time that the RFP specifications were being developed for PRNS, the DOT identified a requirement to replace their inventory of aging multi-space PPMs. As a result, Staff determined that it would be more efficient to combine the requirements of both Departments, and issue one RFP that allowed tip to two awards in the event that the requirements of both departments could not be met with one solution. ANALYSIS On October 3, 2012, the Finance Department released a Request for Proposal (RFP) for Parking Pay Machines on the City s e-procurement system. Forty-five companies viewed the RFP, and two proposals were received by the November 2, 2012 deadline as follows: VenTek International (Petaluma, CA) Digital Payment Technologies "DPT" (Burnaby, B.C., Canada) Evaluation Process: Minimum Qualifications: The initial review consisted of a pass/fail assessment to ensure that all minimum qualifications were met and that all proposals were complete. All proposals were deemed responsive and passed this phase. Evaluation Team: The proposals were evaluated by a three-member team of representatives from the Public Works, PRNS and Department of Transportation, who independently evaluated and scored the experience/technical proposals.

3 Subject: Report on RFP for Parldng Pay Machines Page 3 Experience and Technical (50%): This phase of the evaluation consisted of a thorough review of each company s written proposal for experience and technical capabilities. Cost Proposals (35%): Cost proposals were opened and scored at the conclusion of the technical/experience evaluation. Environmental Stewardship (5%): Proposers were required to address how they support the goals and objectives of the City s EP3 program. Local and Small Business Preference (10%): Pursuant to City policy, ten percent of the total evaluation points were reserved for local and small business preference. Neither of the two Proposers requested consideration for the City s Local and Small Business preference. The evaluation results are summarized in the table below: Evaluation Criteria (Weight) Experience & Technical (50%) Cost (35%) Environmental Stewardship (5%) Local/Small Business Preference (10%) Total Points VenTek (Petaluma, CA) DPT (Canada) Protests: Pursuant to City policy, the RFP process included a ten-day protest period. No protests were received. Recommendation Summary: The scores were very close and the evaluation team recommends contract awards to VenTek for PRNS and DPT for the DOT. Although the DPT score was slightly higher overall, PRNS staff expressed concerns about DPT s ability to integrate new machines with existing machines from a different manufacturer. Specifically, membership card information and data from the existing system could not be integrated with a new system. Staff met with DPT to discuss these compatibility issues, and DPT concurred that they would not be able to seamlessly integrate their solution with the existing system. Summary of Agreement: This second.amendment to the existing agreement with VenTek will include the purchase of eleven automated Parking Pay Machine stations to be installed at various park parking lots as described above, and related system hosting, credit card processing and professional services. In addition, this agreement includes Payment Card Industry (PCI) compliance requirements. The amendment includes firm fixed price for the initial two-year term, and provides for up to four additional two-year options to extend the agreement for ongoing hosting and services for a total of ten years through April 30, Additionally, the compensation for on-going hosting services will be prorated to reset or align the renewal term with the original term to simplify annual renewals for the combined 18 PPMs on-going services. For the optional renewal terms, any compensation adjustments will be based on the Consumer Price Index (CPI) for the San Francisco/San Jose Bay Area, but shall not exceed 3% annually.

4 Subject: Repor t on RFP for Parking Pay Machines Page 4 EVALUATION AND FOLLOW-UP No further action or follow-up is anticipated. PUBLIC OUTREACH/INTEREST Criterion 1: Requires Council action on the use of public funds equal to $1,000,000 or greater. (Required: WebsitePosting) Criterion 2: Adoption of a new or revised policy that may have implications for public health, safety, quality of life, or financial/economic vitality of the City. (Required: E- mail and Website Posting) Criterion 3: Consideration of proposed changes to service delivery, programs, staffing that may have impacts to community services and have been identified by staff, Council or a Community group that requires special outreach. (Required: , Website Posting, Community Meetings, Notice in appropriate newspapers) While this item does not meet any of the criteria above, this memorandum will be posted on the City s website for the September 17, 2013 Council Agenda. COORDINATION This memorandum has been coordinated with Parks, Recreation and Neighborhood Services Department, the City Manager s Budget Office and the City Attorney s Office. FISCAL/POLICY ALIGNMENT This action is consistent with the following General Budget Principles "We must focus on protecting our vital core city services for both the short-term and long-term" and "We must continue to streamline, innovate, and simplify our operations so that we can deliver services at a higher quality level, with better flexibility, at a lower cost" and the Strategic Initiative "Make San Jose a Tech-Savvy City; lead the way in using technology to improve daily life."

5 Subject: Report on RFP for Parldng Pay Machines Page 5 COST SUMMARY/IMPLICATIONS The following outlines the elements of the contract. o AMOUNT OF RECOMMENDATION/CONTRACT: Description Original Contract (7 PPMs, maximum compensation for initial 2-yr term) Original Option 1 Exercised (2-yr term) New Amendment #2 (+11 PPMs incremental amount for two-year initial term) TOTAL (maximum compensation) COST ELEMENTS OF AGREEMENT/CONTRACT: Description New Amendment # 2 - Initial Setup (11 machines) Hosting/Online (Yr 1, 7 months prorated) Hosting/Online (Yr 2, 12 months) TOTAL (incremental two-year initial term) Cost $125,000 $31,666 $143,848 $300,514 Cost $115,991 $10,263 $17,594 $143,848 SOURCE OF FUNDING: Construction and Conveyance Tax Fund: City-wide Parks Purposes and General Fund. FISCAL IMPACT: After the initial setup, the annual ongoing service is estimated to be approximately $33,500 per year for all 18 machines (7 original machines + 11 additional machines). Funding is available in departmental annual appropriations. BUDGET REFERENCE Amt. of Proposed Last Budget Agreement Operating Action Fund # Appn # Appn. Name Total Appn (initial term) Budget(Page) (Date, Ord. No.) Non-Personal Equipment $13,577,069 $27,857 VIII , # Strategic Capital $638,000 $115,991 V , Replacement and #29271 Maintenance Needs

6 Subject: Report on RFP for Parking Pay Machines Page 6 Not a project, File No. PP10-066(a), Agreements and Contracts /s/ JULIA H. COOPER Director of Finance For questions please contact Mark Giovannetti, Purchasing Division Manager (408)