Title
AUTHORIZATION TO ENTER INTO AN AGREEMENT WITH SP PLUS CORPORATION dba SP+ MUNICIPAL SERVICES FOR THE MANAGEMENT AND OPERATION OF SURFACE PARKING LOTS AND PAY AND DISPLAY MACHINES
SPECIFICATION NO. P-14012
Body
To the Honorable Board of Commissioners of the Chicago Park District
I. Recommendation
It is recommended that the General Superintendent and CEO or his designee enter into an agreement with SP Plus Corporation dba SP+ Municipal Services, for the purpose of providing management and operation of surface parking lots and pay and display machines throughout the Chicago Park District. The contractor was selected pursuant to a publicly advertised Request for Proposals ("RFP"). No work may commence and no payment shall be made to vendor prior to the execution of a written agreement.
II. Award Information
Company: SP Plus Corporation dba SP+ Municipal Services
200 East Randolph Street, Suite 5475
Chicago, IL 60601
Company Type: Delaware Corporation
Majority Interest: Kohlberg CPC Rep., LLC 16.4%
Wellington Management Co., LLC 11.5%
No other shareholder owns more than 7.5% of shares
Contract Term: Ten (10) years with five (5) additional one (1) year extension options
Contract Amount: See Exhibit A.
Scope of Services: The management and operation of surface parking lots including maintenance and repair of both lot and equipment. Also, staffing during designated times surface parking lots, including but not limited to: Belmont Harbor North, Belmont Harbor South, Diversey Driving Range, Lincoln Park Conservatory, and North Avenue Beach. Lastly, managing, operating, and maintaining Park District's 123 pay and display devices at 29 parking lots.
Affirmative
Action Goals: The Minority and Women Owned Business Enterprise participation for this contract include: 27.5% Minority-Owned and 9.8% Women-Owned.
Authorization: Authorize the General Counsel to include other relevant terms and conditions in the written Agreement. Authorize the General Superintendent to execute the Agreement and the Secretary to
attest as to the signing of the Agreement and keep an original copy of the Agreement on file.
III. Budget and Financial Information
Budget Classification: Operating
Fiscal Year: 2015-2025
Source of Funds: 001.9310.9310.626005.00001.01.01.00001
IV. Procurement Information
Specification Number: P-14012
Date Issued: October 31, 2014
Number of Proposals Received: One (1)
Date Proposals Due: December 2, 2014
One proposal was received by the due date and time. The Department of Purchasing ("Purchasing") reviewed the proposal and found that it was responsive to the RFP (i.e., included all required documents and information, signed and notarized where required) and compliant with the Chicago Park District's MBE/WBE goals. The proposal was then reviewed and evaluated by a three-member Evaluation Committee ("EC") comprised of CPD staff. The EC commenced its evaluation of the proposal at its first meeting where they began its review of the non-financial section of the proposal. At their second meeting the EC continued their review of the non-financial section of the proposal and received the financial section of the proposal for review. The EC discussed the financial proposal at the third meeting and decided to send a request to SP for a Best and Final Offer. The Best and Final Offer was received on (DATE), and it was found by the EC to acceptable and the EC then unanimously recommended SP for award.
V. Explanation
The Chicago Park District ("CPD") requires the services of a firm to manage and operate 3967 parking spaces located across 34 parking lots. Five are gated surface parking lots located along CPD's lakefront property. 29 of the parking lots have 123 pay and display machines and are located throughout the district but primarily along CPD's lakefront property.
SP Plus Corporation dba SP+ Municipal Services is an industry leader in parking management. They operate approximately 4300 parking facilities and over 2 million parking spaces in hundreds of cities across North America including Denver, CO (3341 parking spaces), New Orleans, LA (5,000 spaces), Santa Monica, CA (14,000 spaces) and Miami Beach, FL (10,000 spaces). Their local client list includes Chicago Transit Authority, Metra, McCormick Place, Navy Pier and Soldier Field/Museum Campus. Their 2013 net income was $14,765,000.
The firm has serviced the area for the past 30 years and is headquartered in Chicago. With over 2,000 employees in over 300 locations SP Plus Corporation dba SP+ Municipal Services is Chicago's largest parking operator.
Additionally, SP Plus Corporation dba SP+ Municipal Services has been the District's parking management provider since 1993, previously under the name Standard Parking. Since the contract launched in 2009 the firm has increased revenue by an average of nearly $192,000 per year. They have overseen large scale projects including purchase and installation of 123 pay and display devices, helped identify four new locations which resulted in an additional $326,000, instituted monthly as well as premium event parking rate structures and provided a five year capital plan for lot maintenance and repairs. At the end of last year they began rolling out a mobile phone payment option for customers throughout the District.
SP Plus Corporation dba SP+ Municipal Services has the experience, capability, and personnel necessary to manage and operate surface parking lots and pay and display machines. They have been a successful incumbent with consistent positive performance. Therefore, it is in the best interest of the Chicago Park District to recommend SP Plus Corporation dba SP+ Municipal Services for the award of the management services agreement.
VI. General Conditions
1) Conflicts: The Agreement shall not be legally binding on the Chicago Park District if entered into in violation of the provisions of 50 ILCS 105, the Public Officer Prohibited Activities Act.
2) Ethics: The Chicago Park District's Ethics Code, Chapter III of the Code of the Chicago Park District, shall be incorporated into and made part of the agreement.
3) Contingent Liability: Any agreement lawfully entered into for a period of more than one year shall be executory only for the amounts for which the Park District may become
liable in succeeding fiscal years pursuant to Section 17(i) of the Chicago Park District Act, 70 ILCS 1505/17(i). All agreements authorized herein shall contain a clause that
any expenditure beyond the current fiscal year is subject to appropriation in the subsequent fiscal year budget.
4) Economic Disclosure Statement ("EDS"): Contractor has submitted a full and complete.