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CONSIDERATION AND AWARDING OF BID NO. 1213-36 FOR COMPLETE PARKING MANAGEMENT SYSTEM FOR THE GRAY STREET DOWNTOWN PARKING LOT AND BUDGET APPROPRIATION.
ACTION NEEDED: Motion to accept or reject all bids meeting specifications; and, if accepted, awarded the bid in the amount of $140,386.50 to Duncan Solutions, Inc., as the lowest and best bidder meeting specifications and $140,386.50 be appropriated from the Capital Fund Balance (050-0000-253.20-00) to Downtown Parking Lot Expansion - Materials (050-9365-419.63-01)
ACTION TAKEN: ________________________________
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BACKGROUND: At its May 22, 2012, meeting, City Council approved Resolution No. R-1112-112 authorizing staff to proceed with the development of plans and bid documents for a Complete Parking Management System for the Gray Street Downtown Parking Lot. This resolution was accompanied by a city-financed project to demolish a former City Maintenance Building and the paving of the area where the building stood, thereby increasing the number of parking spaces available in the lot.
City staff completed plans for the paving, the striping, and the lighting of the new portion of this parking lot in August of 2012. Demolition of the old building was completed on September 7, 2012 and City crews began work on the paving of the expanded lot the following week. Construction was completed on October 10, 2012. The expanded parking lot was opened to traffic on that same day.
DISCUSSION: Bid packets for the purchase of the Parking Management System were mailed on Wednesday, September 5, 2012, and Addendum No. 1 was issued on Tuesday, September 18, 2012. Bid No. 1213-36 was opened on Thursday, September 27, 2012. The complete Parking Management System consists of three multi-space pay-by-space parking meter stations, an automated parking enforcement system and vehicle parking space sensors for each space in the parking lot.
Bid packets were sent to a total of five vendors and the bid was advertised in the local newspaper. Bids were received from two vendors. One of the two bids received (Duncan Solutions, Inc. of Milwaukee, WI) was from the original five that were mailed out, and the other (Associated Time and Parking Controls of Dallas, TX) was a response to the newspaper advertisement.
The bid from Duncan Solutions, Inc. was complete and in accordance with the bid packet. The bid from Associated Time and Parking Controls was incomplete because it only included the multi-space pay-by-space parking meter stations. The price bid for this sub-component was higher than the Duncan Solutions, Inc. price for the equivalent sub-component by $8,793.50. For this reason, the bid from Associated Time and Parking Controls was eliminated leaving only one complete bid from Duncan Solutions, Inc.
Implementation will be staged as the lead time for the meters is much less than for the parking sensors. From a Notice to Proceed, the parking meter pay stations can be in Norman ready for installation within four (4) weeks meaning installation could be complete by the end of November, 2012. From a Notice to Proceed, the parking sensors can be in Norman ready for installation within twelve (12) weeks. This means the sensors would be received and installed by the end of January, 2013.
Financing of the Revenue Control System will be initially funded through an appropriation from the Capital Fund Balance (account 050-0000-253.20-00). The Capital Fund is proposed to be reimbursed with the proceeds of a no-interest loan from Republic Bank to the Norman Municipal Authority (NMA). The loan is proposed to be repaid with revenue collected from the system. The maximum term of the loan is proposed to be 10 years, with an expectation that parking meter revenues will be sufficient to repay the loan in a much shorter period. This financing arrangement will be finalized by a separate City Council action, and concurrent items have been prepared by the City of Norman Legal Department regarding the financing with Republic Bank and Trust.
Staff provided an estimated revenue projection in May 2012, based upon typical usage of the parking lot at a rate of $0.25/hour during weekdays. It is estimated that approximately $50,000 could be collected annually assuming an occupancy rate of 80 percent. Therefore, the payback period for this equipment is estimated to be approximately 34 months (2 years and 10 months). Once the loan is repaid, the parking revenues will become revenues of the City's General Fund or other City funds determined by the direction of the Council.
RECOMMENDATION: It is recommended that Bid No. 1213-36 for the Complete Management System for the Gray Street Parking Lot be awarded as follows:
Award to Duncan Solutions, Inc (Milwaukee, WI)
Bid Amount - $140,386.50
In order to fund the cost of the equipment, staff also recommends a $140,386.50 appropriation from the Capital Fund balance (account 050-0000-253.20-00) to Downtown Parking Lot Expansion - Materials (account 050-9365-419.63-01) to cover the purchase and installation of the equipment.
The Capital Fund balance is proposed to be reimbursed from the proceeds of a loan from Republic Bank to the Norman Municipal Authority.