REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement with ACE Parking III, LLC for As-Needed Event Parking Services at the Santa Clara Convention Center Complex
Report
BACKGROUND
The Department of Public Works Facilities Services Division manages parking-related operational support for events at the Santa Clara Convention Center through Maintenance District 183 - Santa Clara Convention Center Complex. The complex includes surface parking lots serving the Santa Clara Convention Center, Hyatt Regency Santa Clara, and TechMart Office Building, as well as a three-story parking garage, for a total capacity of approximately 2,000 parking spaces. When designated by the City, approximately 1,800 additional spaces may be available at the Tasman Parking Garage for overflow parking.
The Convention Center hosts conventions, trade shows, meetings, weddings, and other public and private events. In 2026, the Convention Center hosted approximately 450 events with a total of approximately 500,000 attendees. Event volume, attendance, parking demand, and operational requirements vary by event type and from year to year.
The City’s current agreement for event parking services expires on October 30, 2026. A new agreement is needed to maintain uninterrupted parking operations for Convention Center events.
DISCUSSION
Pursuant to City Code Section 2.105.140(c), a formal Request for Proposals (RFP) was conducted, with the award recommendation based on “best value.”
In July 2026, the City issued an RFP seeking qualified firms to provide as-needed parking control and event parking operations services for the Santa Clara Convention Center complex. The RFP was posted on the City’s e-procurement system. The City received eight proposals from the following firms:
- ACE Parking III, LLC
- Douglas Parking LLC
- OVG Parking LLC
- LAZ Parking California, LLC
- Parking Company of Americas/CA
- Parking Nexus Inc.
- Premium Parking Service, LLC
- Impark
The proposals were independently evaluated by a three-member evaluation panel against the criteria and weights published in the RFP, including qualifications and experience, technical approach, and cost. ACE Parking III, LLC (ACE Parking), OVG Parking, LLC (OVG), and Impark were ranked the highest and invited to participate in oral interviews.
Following completion of the evaluation and interview process, staff recommends awarding the agreement to ACE Parking for having submitted the best value proposal. Ace Parking is an established parking services provider with a local presence and experience in parking event services.
The proposed agreement with ACE Parking has an initial term of three years, beginning on November 1, 2026 and ending on October 31, 2029, with three additional one-year options to extend the agreement through October 31, 2032. Including a 5% contingency of $129,856, the agreement has a total not-to-exceed compensation amount of $2,726,979. Staff will manage expenditures throughout the term of the agreement based on operational and event needs, provided that the total authorized maximum compensation is not exceeded.
Table 1 below provides a summary of the costs under the agreement.
Table 1 - Cost Summary
|
Description |
Amount |
|
Initial Three-Year Term (November 1, 2026 - October 31, 2029) |
$1,260,000 |
|
Option Year 1 (November 1, 2029 - October 31, 2030) |
$432,600 |
|
Option Year 2 (November 1, 2030 - October 31, 2031) |
$445,578 |
|
Option Year 3 (November 1, 2031 - October 31, 2032) |
$458,945 |
|
Total of All Years |
$2,597,123 |
|
Contingency |
$129,856 |
|
Total Not-to-Exceed Maximum Compensation |
$2,726,979 |
Compensation will be paid on a time-and-materials basis at the hourly billing rates established in the agreement. Rates will remain fixed during the initial three-year term.
The amounts for the option years assume an annual 3% rate increase. Before the beginning of an option year, the contractor may request an adjustment to its hourly billing rates. Any requested adjustment must be supported by documentation demonstrating that the increase is justified, such as a relevant Consumer Price Index or Producer Price Index. All rate adjustments are subject to City approval.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The not-to-exceed amount to be paid to the Contractor over the initial three-year term is $1,260,000. This amount is an estimate based on historical averages of events and schedule. The agreement also includes three option years totaling $1,337,123 and a contingency of $129,856, bringing the not-to-exceed amount to $2,726,979. Sufficient budget is available to fund anticipated parking costs to Ace Parking controls in FY 2026/27 in the Convention Center Maintenance District Fund. Funding for out-years is subject to the appropriation of funds by the City Council.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to execute an agreement with ACE Parking III, LLC to provide as-needed parking control and event parking operations services for the Santa Clara Convention Center complex for an initial term of three years, beginning on November 1, 2026, and ending on October 31, 2029, with up to three one-year options to extend the term through October 31, 2032, for a total maximum compensation not-to-exceed $2,726,979, subject to the appropriation of funds and review and approval as to form by the City Attorney; and
2. Authorize the City Manager or designee to take any actions necessary to implement and administer the agreement, including negotiating and executing future amendments to: (a) exercise the option years; (b) add or delete services within the scope of the agreement; (c) implement rate adjustments on the terms provided in the agreement; and (d) make de minimis changes, subject to the appropriation of funds and review and approval as to form by the City Attorney.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Agreement for Event Parking Services with ACE Parking Final Version