Department of Transportation CONTRACT WITH LAZ PARKING FOR

Department of Transportation CONTRACT WITH LAZ PARKING FOR MANAGEMENT, OPERATION & MAINTENANCE OF PASEO, MARENGO, LOS ROBLES, HOLLY, DEL MAR, SCHOOLHOUSE, DELACEY & MARRIOTT PARKING GARAGES IN AMOUNT NOT TO EXCEED $9, 373, 284 FOR 3 -YEAR TERM, OPTION FOR 2 ADD’L ONE-YEAR TERMS October 23, 2017 Item # 10

Recommendation Department of Transportation 1. Find this action exempt under CEQA as it only applies to projects that may have an effect on the environment; and 2. Authorize City Manager to enter into contract, based on competitive selection process pursuant to PMC Section 4. 08. 047, with LAZ Parking for management of Paseo, Marengo, Los Robles, Holly, Del Mar, Schoolhouse, De. Lacey & Marriott parking garages for amount not to exceed $9, 373, 284 for 3 years, with option for 2 additional one-year terms at the discretion of City Manager. If all options exercised, 5 year total $15, 622, 140 2

Background Department of Transportation • July 24, 2017 DOT recommended award of parking contract to LAZ Parking • City Council expressed concern with evaluation process & did not vote on staff recommendation > % distribution of evaluation criteria > Evaluation panel’s unfamiliarity with garage uses > No reference checks of proposers > Prior litigation or criminal actions 3

Initial Evaluation Process Department of Transportation • 4 proposals evaluated by panel of 3 outside parking professionals Criteria Management, Operation & Maintenance Program Price Proposer's Attributes/References/Experience Cash Management, Reporting & Audit Program Local Pasadena Business Small & Micro-Business Preference TOTAL Proposer SP+ PCI MPI 30% 26. 33 10% 10. 00 24. 00 8. 20 24. 33 7. 60 24. 33 8. 70 20% 17. 00 18. 00 16. 33 15. 33 30% 27. 33 5% 0. 00 100% 80. 67 26. 33 0. 00 76. 53 22. 33 0. 00 70. 60 21. 67 0. 00 70. 03 Weight 4 LAZ

Subsequent Evaluation Department of Transportation • City Manager appointed 4 staff to “re-review” Changes made included: > Modified criteria weights Criteria Original Weight Management, Operation & Maintenance Program Price Proposer's Attributes/References/Experience Cash Management, Reporting & Audit Program Local Pasadena Business Small & Micro-Business Preference TOTAL 5 30% 10% 20% 30% 5% 5% 100% Revised Weight 25% 20% 25% 5% 5% 100%

Subsequent Evaluation Department of Transportation > Required information summarizing pending or threatened litigation including lawsuits and criminal offenses > Modified RFP language to allow City Council to award portions of contract to multiple proposers > 5 modified proposals received on September 14 > Internal panel independently evaluated proposals & scores averaged 6

Subsequent Evaluation Department of Transportation • LAZ Parking is recommended proposer > Highest score of 85. 05 Criteria Weight LAZ PCI Management, Operation & Maintenance Program 25% 23. 75 20. 00 Price 20% 19. 80 20. 00 Proposer's Attributes/References/Experience 20% 18. 25 18. 00 Cash Management, Reporting & Audit Program 25% 23. 25 18. 50 Local Pasadena Business 5% 0. 00 Small & Micro-Business Preference 5% 0. 00 TOTAL 100% 85. 05 76. 50 7 Proposer MPI SP+ PCAM 19. 50 18. 80 18. 25 16. 20 15. 25 13. 20 16. 25 16. 50 15. 00 18. 75 0. 00 73. 30 20. 50 0. 00 71. 45 14. 75 0. 00 58. 20

LAZ Parking Recommended Department of Transportation • LAZ Parking distinguishing features: > Provided specific recommendations for improvements in each garage’s functional design & signage > Provided strategic approaches to improving parking experience for public > Demonstrated understanding of garages role in Pasadena’s economic development & vitality > Provided detailed information on litigation history (4 of 5 proposers reported litigation histories) > References attested to solid performance 8

Fiscal Impact Department of Transportation • Three-year contract amount - $9, 373, 284 > $3, 124, 428 annually, includes 10% contingency > Option for 2 additional 1 year terms brings total to $15, 622, 140 for 5 years • Funding available in DOT’s Off-Street Parking Facilities Fund (#407) 9