296-2022

Report

Accept the Chief Procurement Officer's recommendation for contract to SP+ Municipal Services for SmartPark Garage Operations

Accepted
Amended by Council

TO THE COUNCIL:

The Portland Bureau of Transportation currently contracts for the operation of the City’s “SmartPark” garages.

The City of Portland, Bureau of Transportation, “PBOT” is charged with overseeing the operation and management of the SmartPark Garage System in a manner that is financially sound while providing economical short-term parking, maximizing revenues through various marketing activities, and prudently managing cost. The SmartPark mission is to support the economic vitality of the Central City by providing an affordable system of parking garages which primarily meets the short-term needs of shoppers, visitors and business clients and by investing in other Central City transportation improvements. 

As Authorized by Ordinance # 190074, the City of Portland, Procurement Services issued RFP #00001545 seeking proposals from qualified firms and contractors with demonstrated experience in parking garage management, including but not limited to: managing parking operations at the SmartPark Garages, janitorial services, and providing the public with their primary interface for SmartPark Garage customer service. 

On July 23, 2021, two (2) proposal responses were received.  Proposals were evaluated over multiple phases in accordance with the RFP requirements, and on October 20, 2021 a notice of intent to award was issued to SP+ Municipal Services. No protests were received.

SP+ Municipal Services Business Tax Registration Account, is in full compliance with the Equal Benefits Program and the EEO certification requirement.  SP+ Municipal Services is not a State of Oregon Certified D/M/W/ESB contractor. The level of confidence in the cost estimates for this project is high, based on the pricing received and negotiated with SP+ Municipal Services and for the final contract. 

The Chief Procurement Officer requests that the City Council accept this Report and authorize the Chief Procurement Officer to execute of a contract with SP+ Municipal Services for an initial term of three (3) years; upon City Council approval and mutual agreement of the Parties the contract may be extended up to two (2) additional option years, for a total term of five (5) years. The not-to-exceed amount shall be up to $7,000,000.00.  The Council’s conditional acceptance of this report is subject to the final contract’s approval as to form by the City Attorney’s Office.

Recommended by:

Biko Taylor

Chief Procurement Officer

Impact Statement

Purpose of Proposed Legislation and Background Information

The City of Portland, Bureau of Transportation, “PBOT” is charged with overseeing the operation and management of the SmartPark Garage System in a manner that is financially sound while providing economical short-term parking, maximizing revenues through various marketing activities, and prudently managing cost. The SmartPark mission is to support the economic vitality of the Central City by providing an affordable system of parking garages which primarily meets the short-term needs of shoppers, visitors and business clients and by investing in other Central City transportation improvements.

As authorized by Ordinance 190074, Procurement Services issued RFP #0001545 for Garage Operation and Management Services.  On July 23, 2021, two (2) proposal responses were received.  Proposals were evaluated over multiple phases in accordance with the RFP requirements, and on October 20, 2021 a notice of intent to award was issued to SP+ Municipal Services. No protests were received.

This Chief Procurement Officer’s Report to City Council requests to enter a contract with a three-year initial term with up to two (2) extension years for a total term of five (5) years and upon City Council approval further extension of up to five (5) years for a maximum possible term of ten (10) years.  Contract shall be negotiated with SP+ Municipal Services, as selected through the competitive RFP process mentioned above to operate and manage the City’s SmartPark Garage System and approved as to form by the City Attorney’s Office.

Financial and Budgetary Impacts

This legislation will result in the City entering into a three-year initial term contract with the vendor selected through the competitive RFP process to operate and manage the City’s SmartPark Garage System.  

The SmartPark Garages are funded through parking garage fees charged. The SmartPark Garage Management and Operation Contract has for many years been operated as a revenue contract, with the Garage Operator providing a ‘net revenue’ transfer to the City of each month’s operations. The new Contract will continue with the same process until new technology is introduced into the garages. Once the new technology is introduced, the Contractor will no longer collect the revenues on behalf of the City, rather the revenues will go directly to the City. The Garage Operator, at this time, will invoice the City for the operational expenses. The contract value, therefor, is based on pricing and projected operational expenses. The total not to exceed contract value shall be $7,000,000.

 There are no budgetary impacts as a result of this Contract. 

 No positions will be created, eliminated or re-classified as a result of this legislation.

Community Impacts and Community Involvement

The SmartPark Program plays a critical support role for Downtown Retail and Businesses consistent with its mission of providing affordable and convenient short-term off-street parking options.  It is important for SmartPark to include representatives from the Downtown retail community in making decisions regarding which company will operate the Garages on the City’s behalf.  The evaluation committee was comprised of five (5) members, both external and internal to the City and included a minority evaluator, parking professionals and members of the downtown retail community.

To address the City’s requirements around diversity, equity and inclusion in contracting, the number of points for Workplace Diversity and Community Involvement was increased from a standard 3 points to 15 points.  The RFP was distributed to 1,511 vendors registered with the City’s online vendor portal and signed up to be notified of bid opportunities. In addition, Procurement Services reached out to the following organizations:

• Oregon Association of Minority Entrepreneurs

• F.M. Burch and Associates, Inc.

• Professional Business Development Group

• National Association of Minority Contractors

Potential proposers were able to attend a pre-proposal meeting to ask questions, seek clarification, provide comments, and ultimately submit proposals in response to the Request for Proposals (RFP).  Proposals received were evaluated and resulted the issuance of a “Notice of Intent to Award’.  Procurement Services managed the procurement process.  No protests were received.

100% Renewable Goal

N/A

Budget Office Financial Impact Analysis

A procurement Services Request For Proposals (RFP) was formerly issued for Garage Operation and Management Services.  Staff received two proposal responses from vendors on July 2021.  Proposals were evaluated over multiple phases to conform with the RFP requirements, and on October 2021 a notice of intent (NOI) to award was issued to SP+ Municipal Services. No protests were received.

This Chief Procurement Officer’s Report to Council requests entering into contract with the vendor for an initial 3-year term with up to two extension years for a total term of 5-years and upon City Council approval further extend up to five additional years for a maximum possible term of 10-years.  The contract is anticipated to be negotiated with SP+ Municipal Services to operate and manage the City’s SmartPark Garage System and per approval of the City Attorney’s Office.

The SmartPark Garages are funded through parking garage fees and the SmartPark Garage Management and Operation Contract has operated as a revenue contract, whereas the Garage Operator provides a ‘net revenue’ transfer to the City every month of operation. The new contract would continue with the same process until new technology is introduced into the garages. Once new technology is introduced, the Contractor would no longer collect these revenues, and instead, revenues would go directly to the City. The Garage Operator, at this time, would invoice the City for the operational expenses. The contract value, which shall not exceed $7,000,000, was based on pricing and projected operational expenses. No positions are expected to be created, eliminated or re-classified.

Agenda Items

296 Consent Agenda in April 20-21, 2022 Council Agenda

Accepted As Amended

Motion to amend the report to state "upon City Council approval and mutual agreement of the Parties the contract may be extended up to two additional option years, for a total term of five years": Moved by Hardesty and seconded by Wheeler. (Y-5)

Motion to accept the report as amended: Moved by Hardesty and seconded by Wheeler.
  • Commissioner Dan Ryan Yea
  • Former Commissioner Jo Ann Hardesty Yea
  • Commissioner Mingus Mapps Yea
  • Commissioner Carmen Rubio Yea
  • Mayor Ted Wheeler Yea

Introduced by

Requested Agenda Type

Consent

Date and Time Information

Requested Council Date