The URL can be used to link to this page

Home My WebLink About06/16/1992, C-9 - PARKING METER COIN COLLECTION CONTRACT MEETING DATE: �,�n�►�►►►�IIIIIIIH�� IIIIIII city Of San LUIS OBISPO ITEM NUMBEF�f � COUNCIL AGENDA REPORT FROM: f Wayne Peterson Prepared by: Keith Opalewski Acting Public Workl Director Parking Manager SUBJECT: Parking Meter Coin Collection Contract CAO RECOMMENDATION: By motion, approve specifications for parking meter coin collection and authorize soliciting of request for proposals and award of contract by CAO if selected contractor is within the Engineer's cost estimate of $55, 000 for meter collection. BACKGROUND: over the years the City has utilized several modes of operation to collect its parking meter coin money. Originally, the City used full-time city employees to collect the coin from parking meters. Due to a problem with employee theft, this mode of collection was abandoned and a private company (Brinks Armored Car) took over the collection process. In time, Brinks phased out this facet of their operations due to the difficulty in working with large amounts of coin each day. Since March of 1987, the City has been using the contract services of a private person to collect parking meter money. The current contract with this vendor is open ended and has not been rebid in over five years. j DISCUSSION: The Parking Division has taken key steps to improve security of its parking meter money. Twenty months ago all street meters (1050) were converted to a closed collection system which prevents any person from actually handling money during the collection process. More recently, all coin door locks were replaced so no more than 150 meters are keyed the same. This prevents any large scale loss in the event of keys being lost or stolen, and minimizes the number of locks that would have to be replaced. Although our current contract for meter collection has been satisfactory, there are several driving factors that warrant making improvements in the procedure for collection and transport of city funds. Currently we have one person collecting and transporting funds to the bank. This one person operation for meter collections and transport represents a higher risk for the security of city funds. Also, since the contract has not been rebid for over five years, a competitive process is overdue for this important contract. Additionally, since we are proposing a change in the 4Z f'l i��H��llIIIIIIII►u llll��'�I city of San l s OBIspo Mambo COUNCIL AGENDA REPORT Council Agenda Report Page Two scope of the collection process,, walking back to office vs. driving_ to bank, a more competitive cost for the contract needs to be established. Finally, we need to change the provision of the current contract from a per meter to a per collection count for double meters. The proposed changes in meter collection procedures are incorporated in the specifications. Alternative proposals for meter collection will also be solicited. I ALTERNATIVES: i 1. Maintain current contract and not make changes in procedures. 2. Modify procedures for current contract. 3 . Cancel contract and use city employee. 4. Rebid contract. It is feasible to maintain our current collection contract, but this does not address the issue of maintaining an open ended contract without periodic competitive bids, nor the important issue of removing the opportunity of unobserved access to meter funds by the collector or other procedure changes. I Amending the current contract does allow us the opportunity to make adjustments in the collection process, but it also negates the open bid process which is contrary to city policy for long-term contract services. Utilizing a City employee for meter collection would reduce the annual cost for meter collections. However, this also may create a greater liability for theft and on-the-job injury. Maintaining this operation as a contract process allows for personnel turnover, and the elimination of the position in the event meters should ever be removed from the downtown. Having an open proposal process will provide the opportunity to make improvements in the meter collection contract and procedures, while at the same time, receive comparative prices and proposals for the collection contract. Although the intent is to save money whenever possible, it is likely that higher proposals than the current 35. 5 cents per meter collection will materialize because of changes in the procedures and duplex meter (double meter) collection counts. Conversely, a lower proposal could also materialize because a vehicle would no longer be required by the collector under the recommended procedure changes. Given all options, it is staff's recommendation to open the coin collection contract to competitive bid proposals and award contract on basis of contractor that best meets the proposal criteria and needs of the City. Bid proposals will be evaluated on price, job history, references, and ability to perform the job. �_9_tV?_ �IiG1��nlli!►IIIIIIIII!i' ►��III MY Of San . .is OBISPO HNNNIN am COUNCIL AGENDA REPORT Council Agenda Report Page Three FISCAL IMPACT: As mentioned above, the City is currently paying 35. 5 cents per meter collected. Based on the current average of 11,000 meters collected each month, our current contract is running approximate $47, 000 annually. For each 1 cent reduction or increase in current meter collection rates, the City could save or spend $1,300 annually. Additionally, reducing duplex meters (2 meters on one pole) to a one collection count as opposed to the current two meters collected, will reduce the count for meters collected by approximately 1400 each month. This converts to a savings of j approximately $500 per month based on current rates for meter collection. The changes in procedures will require an estimated $5, 000 for armored transport and handling of coin bags. As a result of the proposed changes, the estimate for meter collection could range from $31, 000 to $50, 000 per year (based on $0. 32 to $0.52 per collection) and with armored transport the total for meter coin collection and processing would run from $36, 000 to $55, 000 annually. The wide range for cost estimates for meter collection is given because no competitive prices have been established for this service in over five years. The 1992-93 fiscal year has $55, 000 budgeted for meter coin collection. For comparison purposes, a regular, full-time city employee with benefits, would run $28, 250 to $31, 150 per year for the first three years. (Specifications are available in the Council Office for inspection. )