Agenda Item AGENDA STAFF REPORT ASR Control 21-000653
MEETING DATE:	08/24/21
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	2
SUBMITTING Agency/Department:	John Wayne Airport (Approved)
Department contact person(s):	Barry Rondinella (949) 252-5183
	Robert Holden (949) 252-5246

Subject: Approve Contract with LAZ Parking California, LLC for Shuttle Services

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: Yes

Current Year Cost: $3,072,369

Annual Cost: FY 2022-23 $1,024,123

Staffing Impact:

No

# of Positions:

Sole Source: Yes

Current Fiscal Year Revenue: N/A

Funding Source: Fund 280: 100%

County Audit in last 3 years: No

Prior Board Action: 6/6/2017 #37

RECOMMENDED ACTION(S):

Authorize the County Procurement Officer or authorized Deputy to execute a sole source contract with LAZ Parking California, LLC for Shuttle Services, effective October 1, 2021, through September 30, 2022, in a total amount not to exceed $4,096,492, with the option to renew for one additional one-year extension.

SUMMARY:

Approving a sole source contract with LAZ Parking California, LLC for shuttle services will provide continued safe and efficient transportation of John Wayne Airport passengers and employees between the Main Street parking lot and the Thomas F. Riley Terminal while the Airport prepares for the issuance of a solicitation.

BACKGROUND INFORMATION:

On June 6, 2017, the Board of Supervisors (Board) awarded a contract to LAZ Parking California, LLC (LAZ Parking) for shuttle services through June 30, 2020, renewable for two additional one-year terms. The services included routes to and from the Main Street and employee parking lots. In March 2020, the Governor of the State of California declared a State of Emergency due to the threat of COVID-19. Impacts to travel and passenger traffic were sudden and required immediate action by John Wayne Airport (JWA). Due to the drastic drop in passenger traffic, the Main Street and employee parking lots were closed and employee parking was relocated to the A2 terminal parking garage. As such, JWA did not exercise its option to renew the contract with LAZ Parking.

As restrictions related to the pandemic have eased and the volume of air travelers steadily rises, JWA staff are carefully monitoring public parking demand. The purpose of this contract is to free up public parking space in the A2 garage by relocating tenant employee parking to the Main Street Parking Lot and simultaneously reestablish a remote, economy parking option for the traveling public. Activation of this contract will only occur when public parking demand is anticipated to reach near capacity levels or exceeds 75 percent parking occupancy overnight for a minimum of two weeks. JWA can adjust the schedule of the shuttles based upon customer needs.

This contract is a sole source contract because the incumbent operator of parking facilities and valet parking, LAZ Parking, is already on-site, has access to the required shuttle fleet that can be made available for rapid implementation, and has a shuttle office facility for quickly restarting the operating schedule for shuttle services. LAZ Parking still has access to the same shuttles used in the previous contract. Other vendors would have to acquire shuttles needed to meet the contract requirements. It would be more costly to JWA for a one-year contract given that vendors have to amortize the cost of the shuttles over the length of the contract, which is usually three to five years.

The cost increases from the previous contract are due to the rise in local labor markets for hiring drivers is as high as 60 percent compared to the pre-pandemic era. The second-largest impact on the cost is related to Union Employee benefits which range from $950 to $1,200 a month per associate.

JWA intends to release a Request for Proposal in the fall of 2021 for a new parking management and shuttle contract.

LAZ Parking’s fleet consists of compressed natural gas 14-passenger courtesy shuttles for the Main Street parking lot service route and 28-passenger employee shuttles. All shuttles will be equipped with wheelchair lifts, Closed Circuit Television (CCTV) devices and Global Positioning System (GPS) monitoring equipment. The CCTV system monitors driver and passenger activities to provide for safety while the web-based GPS enables JWA staff to automatically track vehicle movements and generate reports.

The contract does not currently include subcontractors or pass through to other providers. See Attachment B for Contract Summary Form. The proposed contract is a sole source contract and a completed Sole Source Request Form is attached to this Agenda Staff Report. The Orange County Preference Policy is not applicable to this contract award. Contractor performance has been confirmed as at least satisfactory. JWA has verified there are no concerns that must be addressed with respect to contractor’s ownership/name, litigation status or conflicts with County interests.

It shall be the responsibility of the Contractor to determine and comply with all applicable requirements of the South Coast Air Quality Management District Rule 1194 and any other applicable local, state or federal fleet rules or requirements.

COMPLIANCE WITH CEQA:

The proposed project was previously determined to be Categorically Exempt from CEQA pursuant to Section 15301 (Class 1) of the CEQA Guidelines on June 6, 2017, when initially approved. CEQA Guidelines Section 15301 provides for the exemption for operation and maintenance of existing public service facilities and equipment, involving no expansion of existing or former use.

FINANCIAL IMPACT:

Appropriations for this contract are included in Airport Operating Fund, Fund 280 FY 2021-22 Budget, and will be included in the budgeting process for future years.

The contract contains language that permits reductions or termination of the contract immediately without penalty if approved funding or appropriations are not forthcoming and upon 30-days' notice without penalty.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Contract MA-280-22010053 with LAZ Parking California, LLC
Attachment B - Contract Summary Form
Attachment C - Sole Source Request Form
Attachment D - Sole Source Periscope Approval