HomeMy WebLinkAbout14 - Parking Meters & Meter EnforcementAgenda Item No. 14
March 22, 2011
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Administrative Services Department
Tracy McCraner, Administrative Services Director/Treasurer
949-644-3123, tmccraner @newportbeachca.gov
PREPARED BY: Evelyn Tseng
APPROVED:
TITLE: Contracting out of Parking Meters and Meter Enforcement; Approval
of Central Parking System, Inc. Agreement
ABSTRACT:
The City of Newport Beach currently operates, maintains and provides enforcement for
approximately 2,600 on- street and off- street parking meter spaces throughout the City.
This has an operational cost of $500,000 /year and generates parking meter revenue of
$3.5 million /year, for net revenue of about $3M annually. This program is ideal for
contracting out because the industry is very specialized and is able to create greater
efficiencies than an in -house operation. Additionally, the City is interested in maximizing
parking meter revenue, improving operational and enforcement efficiencies and
modernizing parking meter equipment, without sacrificing our expected high level of
quality services to the public.
RECOMMENDATION:
1. Staff recommends that City Council authorize the Mayor and City Clerk to execute a
7 -year contract with Central Parking System, Inc. to replace old meter infrastructure
and manage and maintain all parking meter operations and enforcement.
2. Direct the City Manager to amend position control by 6.72 FTEs.
FUNDING REQUIREMENTS:
The current annual cost of maintaining parking meter operations and enforcement is
approximately $500,000; this includes salaries and benefits, maintenance and capital
replacement on an annual basis. The City will .receive approximately $3.5 million in
parking meter revenues this year, generating approximately $3.0 million per year in net
parking meter revenues.
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These net revenues could be significantly improved with updated equipment, additional
enforcement and collection personnel who are trained specifically in parking meter
collection and enforcement, improved reporting and better data analysis. Central
Parking estimates that the potential for revenue growth over the next seven years under
this contract could be more than $4 million dollars, or approximately $600,000 /year.
Additional personnel on the street will also improve customer service and outreach and
will improve the timeliness of equipment maintenance and revenue collection.
The agreement also provides that 100% of parking meter citation revenue will remain
with the City. This will ensure that enforcement actions are not tied to revenue
distributions to the consultant, and should provide comfort to our community that
ticketing is not profit- oriented. We receive approximately $1 million in parking citation
revenue per year; we expect an increase due to operational and enforcement
efficiencies gained, but an estimate was not possible this early in the process.
DISCUSSION:
The City Council and the City Manager have asked departments to identify programs in
which outsourcing of city services result in less cost to the public or the City's general
fund, increased level of services and performance of maintenance, and preservation of
customer service standards that the community deserves and expects. Several parking
management firms contacted the City to discuss new parking models already
implemented in cities and government agencies across the United States. After meeting
with the representatives, parking meter management and enforcement appeared an
ideal candidate for outsourcing and would offer a revenue enhancement in addition to
all the goals discussed earlier.
A Request for Qualifications (RFQ) was issued in September 2010 by the Administrative
Services Department. The RFQ addressed the City's desire to work with an
experienced parking consultant who had a proven record of operating, maintaining and
enforcing parking meter activities in comparable cities. The RFQ sought firms that had a
record of accomplishment in reducing parking meter revenue losses, utilizing modern
parking meter equipment, providing excellent customer service and community outreach
programs, and exhibited a willingness to rehire City parking meter staff. The RFQ
required that consultants provide a list of comparable projects; references; maintenance
and operation experience for on- street and off - street meters; customer service
experience and experience with government entities; expertise in relevant parking
engineering standards; demonstrated ability to undertake capital improvements to the
parking meters; and financial capability to maintain the parking meters.
Seven companies responded by the October 26, 2010 deadline — all well respected and
experienced in municipal parking meter operations. City staff and a financial consultant
rated the proposals on a matrix based the following evaluation criteria: experience in
Contracting out of Parking Meters and Meter Enforcement; Approval of Central Parking System, Inc.
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March 22, 2011
Page 3
similar projects; willingness to hire current City personnel; service deployment timeline;
customer service and community outreach programs and experience; and proposed
revenue enhancements /infrastructure replacement.
Based on the criteria listed above three companies were unanimously selected for
interviews and reference checks: Duncan Solutions, SP Plus (Standard) and Central
Parking System, Inc. All three reputable companies offered revenue enhancements,
improved infrastructure replacement, high - quality customer service and employment
opportunities for City parking meter staff.
Staff from Administrative Services, City Manager's office, Police Department and the
Office of the City Attorney interviewed all three companies. Notably, Central was the
only vendor who came to the City of Newport Beach three weeks before the interview to
walk all parking meter zones and lots. They followed collections staff to identify
weaknesses and strengths of our collections process, they talked to businesses and
visitors, they assessed parking meter equipment/pay stations and vehicles, and they
compiled a detailed review and assessment of potential improvements and efficiencies
to be gained in our program.
Staff conducted extensive reference checks for all three companies in the following
weeks. While all three companies received good references from various municipalities
and universities as listed in their respective proposals, Central received the highest
reviews in the areas of customer service /community outreach and revenue
enhancements.
Finally, staff asked the consultants for a proposal addendum which would detail their
final revenue, operating costs /profit and infrastructure replacement proposals. Central
again rated highest in revenue enhancement opportunities, lower operating costs and
an advantageous revenue share option for all revenues received above a minimum
guarantee for both the City and Central.
Staff selected Central Parking for its excellent references, revenue proposal and its
proactive suggestions during the interview, and confirmed the selection with City
Manager's office.
Central Parking Agreement
Negotiations with Central began on March 8. City staff had spoken to several cities with
outsourced parking programs, and wanted to benefit from their experience by finalizing
an agreement that would increase revenues, enhance customer service, provide
community outreach, replace the current infrastructure with better technology (credit
card meters, particularly), lower overhead costs, increase collections efficiencies,
incentivize Central, and take advantage of Central's in -depth knowledge of parking
meter management and technology in other cities..
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Terms of the Agreement:
30 -day implementation period
This allows Central to be fully operational before Memorial Day
Increased Revenue and Budgetary Savings to City
The City currently receives approximately $3,000,000 in net parking meter
revenue /year. The Central agreement "guarantees" $3,010,351 each year for the City,
and also provides a revenue share structure (described below) that could increase
revenues approximately $600,000 annually, estimated to exceed $4 million by the end
of the 7 year contract.
The General Fund will recognize a budgetary savings of $500,000 /year by outsourcing
parking meter and enforcement personnel.
Payment to Central
Central is guaranteed an annual payment of $381,762/year for parking meter
infrastructure /equipment replacement. All parking meter infrastructure and equipment
belongs to the City, and this payment is the amortized amount City agrees to pay if
Central replaces a minimum of 1,600 meters, within 6 months, and all meters will accept
credit card /pay by cell and cash payments.
If adequate revenues exist to pay the City guarantee of $3 million, then, and only then
will Central receive an annual amount of $804,855 as payment for their operating and
management expenses.
Revenue Share between City and Central
All parking meter revenues received above the City minimum of $3 million and Central's
agreed upon $1.1 million will be split between the City (receiving 88.5 %) and Central
(receiving 11.5 %). In an effort to encourage continued performance improvements
throughout the contract and to offset expected increases to Central's operating costs,
the City has offered an incentive to Central in years 3 and 5 of the contract. At the
commencement of years 3 and 5, City will add 5 % to Central's revenue share, i.e. —
Central will receive 16.5% of parking meter revenues beyond $4.1 minimum in 2013,
and 21.5% in 2015.
Central will provide all parking meter enforcement, but City will keep 100% of citation
revenues. This ensures citations are not issued which would equate to a revenue
source for the consultant.
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Infrastructure Improvements
Central will also install approximately $2.5 million in parking meter and related
equipment upgrades to accept credit cards, pay -by -cell and cash. The credit card and
pay -by -cell options should increase revenues and make payments easier and more
convenient for all customers. All equipment is the property of the City and will be paid
per an amortization schedule throughout the 7 year contract.
Customer Service
It was important that Central maintain a strong customer service program. In fact, one
of the many reasons Central was selected was because of Santa Monica and
Anaheim's strong recommendation of their customer service and community outreach
programs. The agreement provides for customer service standards, City- approved
uniforms, properly trained personnel, 24 -hour response to customer complaints, public
outreach, enforcement personnel to have material regarding City services and
attractions, and working with Newport Beach PD to provide City approved background
checks on its enforcement personnel. Central will also attend Chamber of Commerce,
BID and HOA meetings as already suggested by the City.
Hiring of City Employees
Central would also give current City parking meter employees the first opportunity to
interview and work at Central in Newport Beach, second they will approach Newport
Beach Residents and finally they have many employees who live in Orange County who
would be able to start immediately.
Collections and Bank Deposits
Collections would be performed by a two- person team and directly deposited with a
bank of the City's choice, which creates improved controls over cash handling and
eliminates the need for a large coin vault/safe at the current (and the new) City Hall.
Central can only deposit to the account and City will have control of the assets.
Future Services
The agreement also opens the door to future additional services such as the
maintenance of off - street parking lots, the enforcement and management of City's
parking citation program (fire hydrants, street sweeping, etc.), enforcing parking
regulations and traffic control at special events (at a significantly reduced rate), and
providing up -to -date technologies such as license plate recognition.
The parking meter transition numbers are outlined in Exhibit 'B," and the payment terms
are detailed in Exhibit "C" of the agreement.
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IMPACTS ON CITY PERSONNEL AND POSITIONS:
If this contract is approved, it will result in the following changes to Position Control and
a layoff of 2.72 FTE personnel:
Deletion of three (3) Full -Time Equivalent (FTE) Parking Control Officer
vacancies from the Police Department (these have been held vacant in
anticipation of contracting out this service);
2. Deletion of 3.72 FTE positions in Administrative Services:
a. Parking Meter Supervisor (1 FTE - filled now)
b. Parking Meter Serviceworkers (2 FTEs — filled now)
c. Parking Meter Serviceworkers — Part-Time (0.72 FTEs —filled now)
One of the parking meter serviceworkers will retire in April. Central has indicated a
willingness to consider hiring parking personnel as Central staff members.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California
Environmental Quality Act ( "CEQA ") pursuant to Section 15302 (Replacement or
Reconstruction) of the CEQA Guidelines, California Code of Regulations, Title 14,
Chapter 3, because the replacement of existing parking meters with new parking meters
has no potential to have a significant effect on the environment.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
Jvaolt , 2
jLt
Tracy McCt ner
Administrative Services Director/Treasurer
Attachments: A. Proposed Agreement with Central Parking
B. Parking Meter transition numbers
C. Proposed Payment terms
PROFESSIONAL SERVICES AGREEMENT WITH
CENTRAL PARKING SYSTEM, INC.
FOR PARKING METER SERVICES
THIS AGREEMENT FOR PARKING METER SERVICES ( "Agreement ") is made
and entered into as of this day of , 2011 by and between the City of
Newport Beach, a California municipal corporation ( "City "), and Central Parking System,
Inc., a Tennessee corporation licensed to do business in California ( "Central'), whose
address is 2401 21St Avenue South, Nashville, TN 37212 and is made with reference to
the following:
RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws
of the State of California with the power to carry on its business as it is now being
conducted under the statutes of the State of California and the Charter of City.
B. City operates 2,675 metered parking spaces within the City, 1,644 meters are on-
street and 1,031 meters are off - street.
C. City desires to engage Central to maximize parking meter revenues (which are
defined as the parking meter revenues collected by Central minus costs
associated with processing credit card transactions at the parking meters),
increase the quality of parking services offered to the public, modernize its
parking meters and support equipment, and provide parking meter enforcement
services ( "Project').
D. Central possesses the skill, experience, ability, background, certification and
knowledge to provide the services described in this Agreement.
E. The principal member of Central for purposes of this Project shall be Director of
Municipal Services Bob Kamper.
F. City has solicited and received a proposal from Central, has reviewed the
previous experience and evaluated the expertise of Central, and desires to retain
Central to render professional services under the terms and conditions set forth
in this Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned
parties as follows:
1. TERM
The term of this Agreement shall commence on the above written date, and shall
terminate on April 1, 2018 unless terminated earlier as set forth herein.
2. SERVICES TO BE PERFORMED
Central shall diligently perform all the services described in the Scope of Services
attached hereto as Exhibit "A" and incorporated herein by reference ( "Work" or
"Services "). The City may elect to delete certain tasks of the Scope of Services in its
sole discretion.
3. TIME OF PERFORMANCE
Time is of the essence in the performance of Services under this Agreement and
Central shall perform the Services in accordance with the schedule included in Exhibit
"A." The failure by Central to strictly adhere to the schedule may result in termination of
this Agreement by City.
Notwithstanding the foregoing, Central shall not be responsible for delays due to causes
beyond Central's reasonable control. However, in the case of any such delay in the
Services to be provided for the Project, each party hereby agrees to provide notice to
the other party so that all delays can be addressed.
3.1 Central shall submit all requests for extensions of time for performance in
writing to the Project Administrator (as defined in Section 6) not later than
ten (10) calendar days after the start of the condition that purportedly
causes a delay. The Project Administrator shall review all such requests
and may grant reasonable time extensions for unforeseeable delays that
are beyond Central's control.
3.2 For all time periods not specifically set forth herein, Central shall respond
in the most expedient and appropriate manner under the circumstances,
by telephone, fax, hand - delivery or mail.
4. COMPENSATION TO CENTRAL
City shall pay Central for the Services in accordance with the provisions of this Section
and the Schedule of Billing Rates attached hereto as Exhibit "B" and incorporated
herein by reference. No billing rate changes shall be made during the term of this
Agreement without the prior written approval of City.
4.1 City shall reimburse Central only for those costs or expenses specifically
approved in this Agreement, or specifically approved in writing in advance
by City.
4.2 Central shall not be required to perform Extra Work and Central shall be
entitled to receive compensation for Extra Work performed only with prior
written authorization of City. As used herein, "Extra Work" means any
Work that is determined by City to be necessary for the proper completion
of the Project, but which is not included within the Scope of Services and
which the parties did not reasonably anticipate would be necessary at the
execution of this Agreement. Compensation for any authorized Extra
Work shall be paid in accordance with the Schedule of Billing Rates as set
forth in Exhibit 'B."
Central Parking System, Inc. Page 2
5. PROJECT MANAGER
Central shall designate a Project Manager, who shall coordinate all phases of the
Project. This Project Manager shall be available to City at all reasonable times during
the Agreement term. Central has designated Director of Municipal Services Bob
Kamper to be its Project Manager. Central shall not remove or reassign the Project
Manager or assign any new or replacement personnel to the Project without the prior
written consent of City. City's approval shall not be unreasonably withheld with respect
to the removal or assignment of Central personnel.
Central, at the sole discretion of City, shall remove from the Project any of its personnel
assigned to the performance of Services upon written request of City. Central warrants
that it will continuously furnish the necessary personnel to complete the Project on a
timely basis as contemplated by this Agreement.
6. ADMINISTRATION
This Agreement will be administered by the Administrative Services Department.
Evelyn Tseng, Revenue Manager or her designee, shall be the Project Administrator
and shall have the authority to act for City under this Agreement. The Project
Administrator or her authorized representative shall represent City in all matters
pertaining to the Services to be rendered pursuant to this Agreement, including
amendments to this Agreement.
7. CITY'S RESPONSIBILITIES
In order to assist Central in the execution of its responsibilities under this Agreement,
City agrees to, where applicable:
7.1 Provide access to, and upon request of Central, one copy of all existing
relevant information on file at City. City will provide all such materials in a
timely manner so as not to cause delays in Central's Work schedule.
7.2 Provide usable life of facilities criteria and information with regards to new
facilities or facilities to be rehabilitated.
8. STANDARD OF CARE
8.1 All of the Services shall be performed by Central or under Central's
supervision. Central represents that it possesses the professional and
technical personnel required to perform the Services required by this
Agreement, and that it will perform all Services in a manner
commensurate with community professional standards. All Services shall
be performed by qualified and experienced personnel who are not
employed by City, nor have any contractual relationship with City. By
delivery of completed Work, Central certifies that the Work conforms to the
requirements of this Agreement and all applicable federal, state and local
laws and the community professional standard of care.
Central Parking System, Inc. Page 3
8.2 Central represents and warrants to City that it has, shall obtain, and shall
keep in full force and effect during the term hereof, at its sole cost and
expense, all licenses, permits, qualifications, insurance and approvals of
whatsoever nature that are legally required of Central to practice its
profession. Central shall maintain a City of Newport Beach business
license during the term of this Agreement.
9. HOLD HARMLESS
To the fullest extent permitted by law, Central shall indemnify, defend and hold
harmless City, its City Council, boards and commissions, officers, agents, volunteers,
and employees (collectively, the "Indemnified Parties ") from and against any and all
claims (including, without limitation, claims for bodily injury, death or damage to
property), demands, obligations, damages, actions, causes of action, suits, losses,
judgments, fines, penalties, liabilities, costs and expenses (including, without limitation,
attorney's fees, disbursements and court costs) of every kind and nature whatsoever
(individually, a "Claim'; collectively, "Claims "), which may arise from or in any manner
relate (directly or indirectly) to any breach of the terms and conditions of this
Agreement, any Work performed or Services provided under this Agreement including,
without limitation, defects in workmanship or materials or Central's presence or activities
conducted on the Project (including the negligent and /or willful acts, errors and /or
omissions of Central, its principals, officers, agents, employees, vendors, suppliers,
subconsultants, subcontractors, anyone employed directly or indirectly by any of them
or for whose acts they may be liable or any or all of them).
Notwithstanding the foregoing, nothing herein shall be construed to require Central to
indemnify the Indemnified Parties from any Claim arising from the sole negligence or
willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be
construed as authorizing any award of attorney's fees in any action on or to enforce the
terms of this Agreement. This indemnity shall apply to all claims and liability regardless
of whether any insurance policies are applicable. The policy limits do not act as a
limitation upon the amount of indemnification to be provided by the Central.
10. INDEPENDENT CONTRACTOR
It is understood that City retains Central on an independent contractor basis and Central
is not an agent or employee of City. The manner and means of conducting the Work
are under the control of Central, except to the extent they are limited by statute, rule or
regulation and the expressed terms of this Agreement. Nothing in this Agreement shall
be deemed to constitute approval for Central or any of Central's employees or agents,
to be the agents or employees of City. Central shall have the responsibility for and
control over the means of performing the Work, provided that Central is in compliance
with the terms of this Agreement. Anything in this Agreement that may appear to give
City the right to direct Central as to the details of the performance or to exercise a
measure of control over Central shall mean only that Central shall follow the desires of
City with respect to the results of the Services.
Central Parking System, Inc. Page 4
11. COOPERATION
Central agrees to work closely and cooperate fully with City's designated Project
Administrator and any other agencies that may have jurisdiction or interest in the Work
to be performed. City agrees to cooperate with the Central on the Project.
12. CITY POLICY
Central shall discuss and review all matters relating to policy and Project direction with
City's Project Administrator in advance of all critical decision points in order to ensure
the Project proceeds in a manner consistent with City goals and policies.
13. PROGRESS
Central is responsible for keeping the Project Administrator and /or her duly authorized
designee informed on a regular basis regarding the status and progress of the Project,
activities performed and planned, and any meetings that have been scheduled or are
desired.
14. INSURANCE
Without limiting Central's indemnification of City, and prior to commencement of Work,
Central shall obtain, provide and maintain at its own expense during the term of this
Agreement, policies of insurance of the type. and amounts described below and in a
form satisfactory to City.
14.1 Proof of Insurance. Central shall provide certificates of insurance to City
as evidence of the insurance coverage required herein, along with a
waiver of subrogation endorsement for workers' compensation. Insurance
certificates and endorsement must be approved by City's Risk Manager
prior to commencement of performance. Current certification of insurance
shall be kept on file with City at all times during the term of this
Agreement. City reserves the right to require complete, certified copies of
all required insurance policies, at any time.
Central shall procure and maintain for the duration of the Agreement
insurance against claims for injuries to persons or damages to property,
which may arise from or in connection with the performance of the Work
hereunder by Central, its agents, representatives, employees or
subconsultants. The cost of such insurance shall be included in Central's
bid.
14.2 Acceptable Insurers. All insurance policies shall be issued by an
insurance company currently authorized by the Insurance Commissioner
to transact business of insurance in the State of California, with an
assigned policyholders' Rating of A- (or higher) and Financial Size
Category Class VII (or larger) in accordance with the latest edition of
Best's Key Rating Guide, unless otherwise approved in writing by the
City's Risk Manager.
Central Parking System, Inc. Page 5
14.3 Coverage Requirements.
14.3.1 Workers' Compensation Coverage. Central shall maintain Workers'
Compensation Insurance (Statutory Limits) and Employer's Liability
Insurance (with limits of at least one million dollars ($1,000,000)) for
Central's employees in accordance with the laws of the State of
California, Section 3700 of the Labor Code In addition, Central
shall require each subconsultant to similarly maintain Workers'
Compensation Insurance and Employer's Liability Insurance in
accordance with the laws of the State of California, Section 3700
for all of the subconsultant's employees.
Any notice of cancellation or non - renewal of all Workers'
Compensation policies must be received by City at least thirty (30)
calendar days (ten (10) calendar days written notice of non-
payment of premium) prior to such change.
Central shall submit to City, along with the certificate of insurance,
a Waiver of Subrogation endorsement in favor of City, its officers,
agents, employees and volunteers.
14.3.2 General Liability Coverage. Central shall maintain commercial
general liability insurance in an amount not less than one million
dollars ($1,000,000) per occurrence for bodily injury, personal
injury, and property damage, including without limitation, blanket
contractual liability.
14.3.3 Automobile Liability Coverage. Central shall maintain automobile
insurance covering bodily injury and property damage for all
activities of Central arising out of or in connection with Work to be
performed under this Agreement, including coverage for any
owned, hired, non -owned or rented vehicles, in an amount not less
than one million dollars ($1,000;000) combined single limit for each
accident.
14.3.4 Professional Liability (Errors & Omissions) Coverage. Central shall
maintain professional liability insurance that covers the Services to
be performed in connection with this Agreement, in the minimum
amount of one million dollars ($1,000,000) limit per claim and in the
aggregate.
14.3.5 Commercial Crime Coverage. Central shall maintain commercial
crime policy insurance including Employee Dishonesty naming the
City as a loss payee with respect to any loss(es) concerning this
Agreement, in the minimum amount of five million dollars
($5,000,000) limit per claim.
14.4 Other Insurance Provisions or Requirements.
Central Parking System, Inc. Page 6
The policies are to contain, or be endorsed to contain, the following
provisions:
14.4.1 Waiver of Subrogation. All insurance coverage maintained or
procured pursuant to this Agreement shall be endorsed to waive
subrogation against City, its elected or appointed officers, agents,
officials, employees and volunteers or shall specifically allow
Central or others providing insurance evidence in compliance with
these requirements to waive their right of recovery prior to a loss.
Central hereby waives its own right of recovery against City, and
shall require similar written express waivers and insurance clauses
from each of its subconsultants.
14.4.2 Enforcement of Agreement Provisions. Central acknowledges and
agrees that any actual or alleged failure on the part of the City to
inform Central of non - compliance with any requirement imposes no
additional obligations on the City nor does it waive any rights
hereunder.
14.4.3 Requirements not Limiting. Requirements of specific coverage
features or limits contained in this Section are not intended as a
limitation on coverage, limits or other requirements, or a waiver of
any coverage normally provided by any insurance. Specific
reference to a given coverage feature is for purposes of clarification
only as it pertains to a given issue and is not intended by any party
or insured to be all inclusive, or to the exclusion of other coverage,
or a waiver of any type.
14.4.4 Notice of Cancellation. Central agrees to oblige its insurance
agent or broker and insurers to provide to City with thirty (30) days
notice of cancellation (except for nonpayment for which ten (10)
days notice is required) or nonrenewal of coverage for each
required coverage.
14.5 Timely Notice of Claims. Central shall give City prompt and timely notice
of claims made or suits instituted that arise out of or result from Central's
performance under this Agreement.
14.6 Additional Insurance. Central shall also procure and maintain, at its own
cost and expense, any additional kinds of insurance, which in its own
judgment may be necessary for its proper protection and prosecution of
the Work.
15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS
Except as specifically authorized under this Agreement, the Services to be provided
under this Agreement shall not be assigned, transferred contracted or subcontracted out
without the prior written approval of City. Any of the following shall be construed as an
assignment: The sale, assignment, transfer or other disposition of any of the issued
and outstanding capital stock of Central, or of the interest of any general partner or joint
Central Parking System, Inc. Page 7
venturer or syndicate member or cotenant if Central is a partnership or joint- venture or
syndicate or cotenancy, which shall result in changing the control of Central. Control
means fifty percent (50 %) or more of the voting power, or twenty -five percent (25 %) or
more of the assets of the corporation, partnership or joint- venture.
16. SUBCONTRACTING
The parties recognize that a substantial inducement to City for entering into this
Agreement is the professional reputation, experience and competence of Central.
Assignments of any or all rights, duties or obligations of Central under this Agreement
will be permitted only with the express written consent of City. Central shall not
subcontract any portion of the Work to be performed under this Agreement without the
prior written authorization of City.
17. OWNERSHIP OF DOCUMENTS
Each and every report, draft, map, record, plan, document and other writing produced
(hereinafter "Documents'), prepared or caused to be prepared by Central, its officers,
employees, agents and subcontractors, in the course of implementing this Agreement,
shall become the exclusive property of City, and City shall have the sole right to use
such materials in its discretion without further compensation to Central or any other
party. Central shall, at Central's expense, provide such Documents to City upon prior
written request.
Documents, including drawings and specifications, prepared by Central pursuant to this
Agreement are not intended or represented to be suitable for reuse by City or others on
any other project. Any use of completed Documents for other projects and any use of
incomplete Documents without specific written authorization from Central will be at
City's sole risk and without liability to Central. Further, any and all liability arising out of
changes made to Central's deliverables under this Agreement by City or persons other
than Central is waived against Central and City assumes full responsibility for such
changes unless City has given Central prior notice and has received from Central
written consent for such changes.
18. CONFIDENTIALITY
All Documents, including drafts, preliminary drawings or plans, notes and
communications that result from the Services in this Agreement, shall be kept
confidential unless City authorizes in writing the release of said information.
19. INTELLECTUAL PROPERTY INDEMNITY
Central shall defend and indemnify City, its agents, officers, representatives and
employees against any and all liability, including costs, for infringement of any United
States' letters patent, trademark, or copyright infringement, including costs, contained in
Central's drawings and specifications provided under this Agreement.
Central Parking System, Inc, Page 8
20. RECORDS
Central shall keep records and invoices in connection with the Work to be performed
under this Agreement. Central shall maintain complete and accurate records with
respect to the parking meter revenue collected and the costs incurred under this
Agreement, and any Services, expenditures and disbursements charged to City, for a
minimum period of three (3) years, or for any longer period required by law, from the
date of final payment to Central under this Agreement. All such records and invoices
shall be clearly identifiable. Central shall allow a representative of City to examine,
audit and make transcripts or copies of such records and invoices during regular
business hours. Central shall allow inspection of all Work, data, Documents,
proceedings and activities related to the Agreement for a period of three (3) years from
the date of final payment to Central under this Agreement. If as a result of the audit it is
determined Central has not complied with the terms of this Agreement then Central
shall reimburse City for the full cost of the audit.
21. WITHHOLDINGS
City may withhold payment to Central of any disputed sums until satisfaction of the
dispute with respect to such payment. Such withholding shall not be deemed to
constitute a failure to pay according to the terms of this Agreement. Central shall not
discontinue Work as a result of such withholding. Central shall have an immediate right
to appeal to the City Manager or his /her designee with respect to such disputed sums.
Central shall be entitled to receive interest on any withheld sums at the rate of return
that City earned on its investments during the time period, from the date of withholding
of any amounts found to have been improperly withheld.
22. ERRORS AND OMISSIONS
In the event of errors or omissions that are due to the negligence or professional
inexperience of Central which result in expense to City greater than what would have
resulted if there were not errors or omissions in the Work accomplished by Central, the
additional expense shall be borne by Central. Nothing in this paragraph is intended to
limit City's rights under the law or any other sections of this Agreement.
23. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS
City reserves the right to employ other consultants in connection with the Project.
24. CONFLICTS OF INTEREST
Central or its employees may be subject to the provisions of the California Political
Reform Act of 1974 (the "Act "), which (1) requires such persons to disclose any financial
interest that may foreseeably be materially affected by the Work performed under this
Agreement, and (2) prohibits such persons from making, or participating in making,
decisions that will foreseeably financially affect such interest.
If subject to the Act, Central shall conform to all requirements of the Act. Failure to do so
constitutes a material breach and is grounds for immediate termination of this
Central Parking System, Inc. Page 9
Agreement by City. Central shall indemnify and hold harmless City for any and all
claims for damages resulting from Central's violation of this Section.
25. NOTICES
All notices, demands, requests or approvals to be given under the terms of this
Agreement shall be given in writing, and conclusively shall be deemed served when
delivered personally, or on the third business day after the deposit thereof in the United
States mail, postage prepaid, first -class mail, addressed as hereinafter provided. All
notices, demands, requests or approvals from Central to City shall be addressed to City
at:
Attn: Evelyn Tseng, Revenue Manager
Administrative Services Department
City of Newport Beach
3300 Newport Boulevard
PO Box 1768
Newport Beach, CA 92658
Phone: 949 - 644 -3153
Fax: 949 - 644 -3073
All notices, demands, requests or approvals from City to Central shall be addressed to
Central at:
Attn: Bob Kamper, Director — Municipal Services
Central Parking System, Inc.
3420 Bristol Street, Suite 225
Costa Mesa, CA 92626
Phone: (714) 751 -2855
Fax: (714) 751 -3650
With a copy to:
James Marcum, President & CEO
Central Parking System, Inc.
2401 21St Avenue South
Nashville, TN 37212
26. CLAIMS
Central and the City expressly agree that in addition to any claims filing requirements
set forth in the Agreement and Agreement documents, Central shall be required to file
any claim Central may have against the City in strict conformance with the Tort Claims
Act (Government Code sections 900 et seq.).
27. TERMINATION
In the event that either party fails or refuses to perform any of the provisions of this
Agreement at the time and in the manner required, that party shall be deemed in default
in the performance of this Agreement. If such default is not cured within a period of two
(2) calendar days, or if more than two (2) calendar days are reasonably required to cure
Central Parking System, Inc. Page 10
the default and the defaulting party fails to give adequate assurance of due performance
within two (2) calendar days after receipt of written notice of default, specifying the
nature of such default and the steps necessary to cure such default, and thereafter
diligently take steps to cure the default, the non - defaulting party may terminate the
Agreement forthwith by giving to the defaulting party written notice thereof.
Notwithstanding the above provisions, City shall have the right, at its sole discretion and
without cause, of terminating this Agreement at any time by remitting to Central, without
a pre - payment penalty, the remaining balance due on the City's obligation to make the
full seven (7) year payment of the Equipment Payment (as defined in Section 1(b) of
Exhibit "B ") and by giving seven (7) calendar days prior written notice to Central. In the
event of termination under this Section, City, or City's new consultant, shall pay Central
for the Base Remittance and Central Bonus (as defined in Sections 1(b) and 1(c)(ii) of
Exhibit "B ") incurred up to the effective date of termination for which Central is owed
under this Agreement. On the effective date of termination, City or City's consultant will
remit to Central the outstanding sums described in this paragraph and Central shall
deliver to City all reports, Documents and other information developed or accumulated
in the performance of this Agreement, whether in draft or final form.
27.1 Transition Upon Termination. Upon termination or expiration of this
Agreement, Central shall cooperate with the City to assist with the orderly
transfer of the Services and operations provided by Central hereunder to
another service provider or to the City as determined by the City in its sole
discretion. Prior to termination or expiration of this Agreement, the City
may require Central to perform and, if so required, Central shall perform
certain transition services necessary to shift the Services of Central to
another provider or to the City itself as described below ( "Transition
Services "). Transition Services may include but shall not be limited to the
following:
(a) Working with the City to jointly develop a mutually agreed upon
Transition Services Plan to facilitate the termination of the Services;
(b) Notifying all affected service providers and subcontractors of
Central;
(c) Performing the Transition Service Plan activities;
(d) Answering questions regarding the Services on an as- needed
basis; and
(e) Providing such other reasonable services needed to effectuate an
orderly transition to a new service provider.
28. COMPLIANCE WITH ALL LAWS
Central shall at its own cost and expense comply with all statutes, ordinances,
regulations and requirements of all governmental entities, including federal, state,
county or municipal, whether now in force or hereinafter enacted. Specifically, Central
shall obtain all required coastal development permits, if any, from the California Coastal
Commission, all encroachment permits and building permits, if any, from the City, and
Central Parking System, Inc. Page 11
complete all necessary CEQA review. In addition, all Work prepared by Central shall
conform to applicable City, county, state and federal laws, rules, regulations and permit
requirements and be subject to approval of the Project Administrator and City.
29. WAIVER
A waiver by either party of any breach, of any term, covenant or condition contained
herein shall not be deemed to be a waiver of any subsequent breach of the same or any
other term, covenant or condition contained herein, whether of the same or a different
character.
30. INTEGRATED CONTRACT
This Agreement represents the full and complete understanding of every kind or nature
whatsoever between the parties hereto, and all preliminary negotiations and
agreements of whatsoever kind or nature are merged herein. No verbal agreement or
implied covenant shall be held to vary the provisions herein.
31. CONFLICTS OR INCONSISTENCIES
In the event there are any conflicts or inconsistencies between this Agreement and the
Scope of Services or any other attachments attached hereto, the terms of this
Agreement shall govern.
32. INTERPRETATION
The terms of this Agreement shall be construed in accordance with the meaning of the
language used and shall not be construed for or against either party by reason of the
authorship of the Agreement or any other rule of construction which might otherwise
apply.
33. AMENDMENTS
This Agreement may be modified or amended only by a written document executed by
both Central and City and approved as to form by the City Attorney.
34. SEVERABILITY
If any term or portion of this Agreement is held to be invalid, illegal, or otherwise
unenforceable by a court of competent jurisdiction, the remaining provisions of this
Agreement shall continue in full force and effect.
35. CONTROLLING LAW AND VENUE
The laws of the State of California shall govern this Agreement and all matters relating
to it and any action brought relating to this Agreement shall be adjudicated in a court of
competent jurisdiction in the County of Orange.
Central Parking System, Inc: Page 12
36. EQUAL OPPORTUNITY EMPLOYMENT
Central represents that it is an equal opportunity employer and it shall not discriminate
against any subcontractor, employee or applicant for employment because of race,
religion, color, national origin, handicap, ancestry, sex or age.
37. NO ATTORNEYS' FEES
In the event of any dispute or legal action arising under this Agreement the prevailing
party shall not be entitled to attorneys' fees.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on
the dates written below.
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY
in
Assistant City Attorney
ATTEST:
Date:
CITY OF NEWPORT BEACH,
A California municipal corporation
Date:
By:
Michael F. Henn
Mayor
CENTRAL: CENTRAL PARKING
SYSTEM, INC., a Tennessee corporation
Date:
By: By:
Leilani I. Brown James H. Bond
City Clerk Executive Vice President
Date:
By:
Henry J. Abbott
Secretary
Attachments: Exhibit A — Scope of Services
Exhibit B — Schedule of Billing Rates
Exhibit C — Customer Service Standards
Central Parking System, Inc. Page 13
EXHIBIT "A"
SCOPE OF SERVICES
SCOPE OF WORK
ON- STREET AND OFF - STREET PARKING ENFORCEMENT SERVICES.
1. General Overview and Goals.
Central shall provide overall management of on- street and off - street parking, including
but not limited to, parking meter enforcement, parking meter collections, signage,
striping, and parking meter installation and maintenance in connection with the "Original
Spaces" as defined below. In providing the Services, Central will be responsible for and
focus on the following areas and goals:
(a) Enforce parking regulations in compliance with City's municipal code;
(b) Maximize parking meter revenues;
(c) Increase the quality of parking services offered to the public;
(d) Modernize parking meters and support equipment; and
(e) Streamline parking meter enforcement services.
2. Service Requirements.
2.1 Parking Meter and Other On- street and Off - street Parking Enforcement.
Central shall be responsible for the following:
(a) Enforcing parking regulations relating to parking meters and other parking controls
within areas established by City. Enforcement activities may include electronic and
paper ticketing. The City may adjust parking meter zones in its sole and absolute
discretion.
(b) Managing approximately two thousand six hundred and seventy -five (2,675) City -
owned metered parking spaces ( "Original Spaces').
(c) Collecting all parking meter revenues, daily or as otherwise directed by the City.
(d) Installing and maintaining new parking meters and necessary support equipment.
Central shall install one thousand six hundred (1,600) single and /or multi -space on-
street and off - street parking meters within six (6) months of the date this Agreement is
executed. Prior to installation of any parking meter, Central shall study the City's
existing parking meters and develop a schedule of replacement with priority afforded to
high impact areas (i.e., parking meters adjacent to the ocean). The replacement
schedule shall be mutually approved by the City and Central prior to implementation.
The newly installed parking meters shall have the capability of accepting credit card
payments. All newly installed parking meters as well as all existing parking meters shall
have Central's telephone number and the parking meter's location posted in a
conspicuous spot on the parking meter within six (6) months of the date this Agreement
is executed.
Central Parking System, Inc. Page 14
(e) Installing and managing additional City -owned parking meters as instructed by the
City. The City reserves the right to adjust the number of parking meters and spaces in
its sole discretion, and, in the event of a City- determined reduction in rates or the
number of parking meters, the parties may implement a mutually agreed upon pro -rata
reduction in the Guaranteed Income and the Base Remittance.
(f) Establishing designated patrol routes for its enforcement officers. The City will
provide Central with adequate information regarding the location of meters and parking
meter zones.
(g) Responding to requests from the City to suspend or emphasize enforcement along
certain roads or in certain areas. The City also reserves the right, in its sole discretion,
to temporarily suspend enforcement along any street, or in any zone, according to the
needs of the City. The City will make every effort to provide Central adequate notice
concerning the location and duration of any such suspension or higher level of
enforcement.
(h) Providing all vehicles, bicycles, and other equipment required to fulfill Central's
obligations under this Agreement.
(i) Providing non- electric signage, striping, and related items to alert the public to the
location and use of parking meters and spaces.
0) Providing a personnel staffing plan, with assignment of duties, that shall be mutually
agreed upon by City and Central. The personnel staffing plan shall allocate adequate
resources to ensure all of the requirements of this Agreement are met, including but not
limited to parking meter enforcement and citation issuance.
2.1.1 City shall be responsible for the following:
(a) Towing all "scofflaw" vehicles per City code and state law.
2.2 Dispute Resolution Program.
2.2.1 Central shall be responsible for the following:
(a) Directing persons to the City's appeal requirements
(b) Providing the review and /or hearing officer with all background materials pertinent to
the appeal.
I (c) Attending all appeal hearings and provide requested written and oral testimony.
(d) Satisfying any court or City imposed requirements should an appeal go to Superior
Court.
(e) Central shall not be entitled to any compensation for any citation, including citations
that are appealed.
2.2.2 City shall be responsible for the following:
Central Parking System, Inc. Page 15
(a) Hiring of the independent review and hearing officers and directly paying the costs
for the review and hearings officers, without regard to the decision rendered by the
officers.
(b) Retention and safekeeping of the records of the appeal hearings.
2.3 Office Administration.
2.3.1 Central shall be responsible for the following:
(a) Maintaining current records and provide an accounting of all equipment, material
and supplies furnished by the City, if any, for use by Central.
(b) Safeguarding equipment and materials against Central employee negligence, theft
and vandalism.
(c) Purchasing all materials necessary to carry out all Original Spaces operation
functions. These include, but are not limited to, paper tickets and ticket books,
envelopes, uniforms, office equipment and supplies, an inventory of spare parts for
maintenance and repair of parking meters, and all other necessary equipment.
(d) Purchasing any new equipment needed by Central in connection with the "Original
Spaces" during the term of this Agreement.
(e) Maintaining office space within the City's physical boundaries that will serve as an
office for Central's staff and be open to the public during business hours 8:00 a.m. to
5:00 p.m., Monday through Friday. This office space may be closed during City
observed holidays, a list of which may be requested by Central.
(f) Any equipment, material and supplies furnished by the City or purchased by Central
and reimbursed by the City are the property of the City and will not be used for any
purpose other than the performance of the Services for the City.
2.3.2 City shall be responsible for the following:
(a) Maintaining an office open to the public for the acceptance of payments of parking
fines payable to the City.
2.4 Personnel Administration.
2.4.1 Central shall be responsible for the following:
(a) Demonstrating high ethical standards of conduct and observing all written rules and
regulations concerning work assignments.
Central Parking System, Inc. Page 16
(b) Maintaining radio contact at all times with supervisors and field personnel to ensure
appropriate oversight of parking enforcement activities.
(c) Ensuring that all enforcement, parking meter maintenance and revenue collecting
personnel wear City- approved uniforms and be properly groomed while on duty. The
uniform must display approved insignia that clearly identifies the wearer as being
responsible for enforcing parking violations, managing parking facilities or servicing
parking meters. The uniform will also have a clearly visible and readable name tag that
must be worn at all times. All other employees of Central providing Services shall at all
times be clearly identifiable by uniform, name badges, name tags, or identification
cards.
(d) Employing persons who are fully trained, competent and qualified with the skills and
experience necessary to provide the Services during the term of this Agreement.
(e) Hiring, training and supervising its staff members. Central staff members assigned
to the Services are employees of Central.
(f) Transitioning to full personnel and staff support within thirty (30) calendar days of the
date of this Agreement, pursuant to the mutually approved personnel staffing plan in
Section 2.10).
(g) Assuring that its employees shall serve the public in a courteous, helpful, and
impartial manner. Correction of any inappropriate behavior or language shall be the
responsibility of Central.
(h) Responding to any public complaint within twenty -four (24) hours after receipt of the
complaint. In the event a report is received alleging an employee of Central was
discourteous, belligerent, profane or in any way intimidating, either physically or
verbally, Central will submit a written report to the Project Administrator within three (3)
days of the date of the report, outlining the complete details of the incident. The report
shall include the nature of the incident, time, date, location, name, address and
telephone number of the person making the allegation. The report will also include the
name and title of the employee and the nature of the disciplinary action taken, if any.
2.5 Training and Customer Service.
2.5.1 Central shall be responsible for the following:
(a) Providing thorough training for enforcement and other personnel, including general
information and directions to assist customers visiting the City.
(b) Responding in accordance with the City's principles on customer service to public
inquiries as specified in Exhibit "C" which is attached to this Agreement and
incorporated by reference. Central will provide a high level of customer service by
employing friendly, helpful, customer - oriented personnel.
Central Parking System, Inc. Page 17
(c) Assisting the City in its efforts to inform the public about the Project, including, but
not limited to, attending meetings of the City Council, Chambers of Commerce,
Business Improvement Districts, and Homeowners Associations.
(d) Providing all enforcement personnel with an adequate supply of material regarding
City services and City attractions, sites and events for distribution to citizens requesting
such information.
(e) Keeping an accurate record of all citizens' complaints, their resolution, and the
action taken to contact the complainant. All such records shall be retained during the
term of this Agreement and made available to the Project Administrator.
(f) Providing customer service training in accordance with City standards as outlined in
Exhibit "C."
(g) Working with the Newport Beach Police Department to provide City approved
background checks of all enforcement personnel
2.6 Installation and Maintenance.
2.6.1 Central shall be responsible for the following:
(a) Installing and maintaining parking meters in accordance with the City's standards in
the Original Spaces. Central shall be liable for any lost, stolen, unaccounted for or
damaged equipment. Upon full payment of the total of the Equipment Payment as
defined in Section 1(b), of Exhibit "B ", City shall own all parking meters and related .
equipment in fee without further payment owed to Central.
(b) Maintaining installed parking meters, meter poles and heads in good working
condition. Good working condition is defined as repairing /replacing any defective
parking meter within twenty -four (24) hours of a report of failure. Ensure meter poles
are clean, painted, and upright. All Central employees will be required to immediately
report any damaged, missing or malfunctioning parking meters or facilities to their
appropriate supervisor.
(c) Implementing and following a regular preventive maintenance schedule for all
parking meters.
(d) Keeping a log of all parking meter complaints /malfunctions. The log will note date,
parking meter number, location, problem and name of the person calling in the problem,
the tag number of the car (if any), the date the mechanics checked the parking meter,
the nature of the problem and the date it was corrected.
2.7 Safety
2.7.1 Central shall be responsible for the following:
(a) Taking adequate steps to ensure the safety and security of all personnel and
property. Central shall provide all training and employ all responsible safety precautions
Central Parking System, Inc. -Page 18
and devices in connection with providing the Services. Central shall supply all
employees deployed in the field with the telephone number of the City's Police
Department.
2.8 Miscellaneous Services.
2.8.1 Central shall be responsible for the following:
(a) Changing Central procedures as necessary to conform to revisions in the City's
ordinances, parking regulations, policies and initiatives.
(b) Consulting with the City, as requested, regarding the Project.
(c) Assisting in maintaining and expanding the Project, if desired by City, including
working with businesses, neighborhood groups, and other organizations as needed.
(d) Emptying all parking meters in a timely manner (as determined in Section 2.1(c) of
this Exhibit "A "), depending on parking volumes.
(e) Providing monthly reports detailing:
1, revenues collected by parking zone;
2. the number of parking citations issued by parking zone;
3. broken /repaired parking meters; and
4. customer complaints.
(f) Providing annual revenue and expenditure reports in a form to be provided by the
City.
2.9 Optional Services.
2.9.1 City may request in writing that Central provide the following
additional services at City's expense, with a reasonable additional remittance to
Central for profit and overhead, as agreed by the parties:
(a) Operate and maintain the City's off - street parking lots. Including the installation of
new multi -space meters and providing an on -site employee during peak hours /seasons.
(b) Enforce and manage the City's parking citation program (i.e., fire hydrants, street
sweeping, red curbs, etc.).
(c) Enforce scofflaw regulations related to towing of vehicles that have five or more
outstanding parking citations.
(d) Enforce parking regulations and traffic control for special events, including festivals,
boat parades, Fourth of July, etc.
(e) Provide license plate recognition software, pay -by -cell and other advanced
technologies.
(f) Upon City's written request for any of the services referenced in subsections "a"
through "e" or any other additional services, Central and City shall negotiate in good
faith and if a service is agreed upon enter into a written amendment to this Agreement.
Central Parking System, Inc. Page 19
EXHIBIT "B"
SCHEDULE OF BILLING RATES
1. Revenue Distribution.
(a) City shall receive three million ten thousand three hundred and fifty -one dollars
($3,010,351) per year from Central in guaranteed income, regardless of actual parking
meter revenue collected by Central ( "City's Guaranteed Income'). The City's
Guaranteed Income shall be drawn from the funds deposited daily (or other deposit
schedule directed by City) with the City pursuant to Section 2.1(a) below, and
supplemented by Central as needed. The City's Guaranteed Income may be reduced
on a mutually agreed upon pro -rata basis based upon any change in enforcement,
reduction in rates or other actions of the City that impact the ability of the public to park
in the Original Spaces; (i) as described in Section 2.1 of Exhibit A, or (ii) to the extent
caused by a declared state or federal emergency or any other force or forces that
directly affects the Original Spaces for more than seven (7) days.
(b) If adequate parking meter revenue exists, City shall pay Central eight hundred and
four thousand eight hundred fifty -five dollars ($804,855) per year for profit and operating
expenses ( "Base Remittance ").
City shall pay Central three hundred and eighty -one thousand seven hundred and sixty -
two dollars ($381,762) per year as reimbursement for the amortized portion of the new
parking meters and supporting equipment installed /used within the Original Spaces
which payment will be denoted, "Equipment Payment ". The Base Remittance and
Equipment Payment may sometimes be referred to herein as "Central Overhead
Amounts ".
Provided adequate parking meter revenue exists, the Central Overhead Amounts the
will be remitted in twenty -four (24) semi - monthly payments on the fifteenth (15th) and
thirtieth (30th) day of each month of the term hereof, with the first such payment to be
May 15, 2011. All payments to Central under this Section shall be accomplished by the
use of electronic fund transfer. On a monthly basis, City shall reconcile the revenues
received and Central Overhead Amounts made to Central, and if necessary, lower the
monthly payment to Central if City is not on track to collect the City's Guaranteed
Income as adjusted pursuant to Subsections 1(a) and 1(c).
(c) By June 30 following each year, or partial year, of the term hereof, City shall
reconcile the previous year's (May 1 through April 30) parking meter revenues and
payments to Central and if revenue exceeds the full amount of the City's Guaranteed
Income, such excess revenue shall be used to pay:
L Central the difference, if any, between: (i) the Central Overhead Amounts
due Central for such year and (ii) the amounts already paid during the term up to the
total Central Overhead Amount due for the term to date; and any surplus above that
payment shall be used to
Central Parking System, Inc. Page 20
ii. pay Central a bonus ( "Central Bonus ") equal to eleven and half percent
(11.5 %) of all parking meter revenues per year in excess of the City's Guaranteed
Income, the Base Remittance, and the Equipment Payment, as adjusted. On April 1,
2013, Central's bonus shall increase by five (5) percentage points (to sixteen and half
percent (16.5 %) of all parking meter revenues per year in excess of the City's
Guaranteed Income, the Base Remittance, and the Equipment Payment, as adjusted.
On April 1, 2015, Central's bonus shall increase by an additional five (5) percentage
points to twenty -one and half percent (21.5 %) of all parking meter revenues per year in
excess of the City's Guaranteed Income, the Base Remittance, and the Equipment
Payment, as adjusted.
(d) All income from parking citations shall be the sole property of the City and not count
towards the dollar amounts referenced in sections (a), (b), or (c) above.
(e) Central shall utilize the most current parking meter rates as may be adopted by the
City.
(f) During the first six (6) months of the term hereof, (May through October 2011),
notwithstanding anything set forth above to the contrary, the Base Remittance and
Equipment Payment will be remitted on a semi - monthly basis to Central without regard
to whether or not adequate parking meter revenue exists. Then, by November 15,
2011, City and Central will reconcile all meter collections and deposits through October
31, 2011 to ensure City's Guaranteed Income is on track to be met. Central shall remit
to City any shortcomings, by November 30, 2011, in the City's Guaranteed Income to
ensure City is on track to receive the full amount of City's Guaranteed Income.
Beginning December 1, 2011, City shall reconcile the parking meter funds monthly to
ensure City is on track to receive City's Guaranteed Income.
2. Collection of Monies and Accounting.
2.1 Central shall be responsible for.the following:
(a) Collecting and accounting for all revenues from the parking meters (City will turn
over all of its collection canisters to Central prior to the commencement of the term
hereof). All monies collected from parking meters will be deposited daily (or as
otherwise directed by City), in accordance with approved guidelines established by the
City, into a restricted account authorized by the City.. The restricted account shall allow
Central to make deposits, but only the City may withdrawal funds from the restricted
account. Deposits shall be made to specific revenue accounts as established by the
City in order to properly reflect all collections areas, particularly tidelands. Central shall
be given full access to view the activity in such bank accounts.
(b) Ensuring proper accountability and internal control of monies collected by Central.
(c) Providing any periodic or special financial and operational reports as requested by
the City.
(d) Providing capability to use debit cards, keys or similar devices at selected Meter
locations.
Central Parking System, Inc. Page 21
(e) Should any monies collected by Central be lost, stolen, unaccounted for or otherwise
removed without the authorization of the City from the custody and control of Central
prior to their deposit in the City's approved bank account, Central shall deposit in said
amount a like sum of money within ninety -six (96) hours of such loss, theft or removal.
Should said loss, theft or removal be insured or otherwise secured by Central, any
payments made to the City on account thereof shall, if appropriate, be reimbursed to
Central. Central will be liable for all loss /mismanagement of funds.
(f) Segregating all parking meter revenue attributable to parking meters within the
tidelands into a separate tidelands account controlled by the City.
Central Parking System, Inc. Page 22
EXHIBIT "C"
CUSTOMER SERVICE STANDARDS
Customer Service Philosophy
We will provide all customers with quality service in a manner that is
courteous, responsive, accessible and seamless.
The services will be delivered with patience, understanding, goodwill,
and without regard to our own convenience.
1. Point of Contact - Face to Face
4 Introduce yourself, giving your name and your department.
4 Ask for the customer's name and use it throughout the conversation.
4 Be friendly, courteous and helpful in all situations.
4 If requested, be able to respond knowledgeably and professionally regarding the task
that you are performing.
4 Take ownership of the customers request. If you do not know the answer,to
questions about your department or cannot resolve a problem, ask your supervisor to
contact the customer.
4 Listen first for content, defer personal judgment, and concentrate on the main issue.
2. Point of Contact - Individual Telephone Line
Answering the Telephone Properly
4 85% of all calls should be answered within 3 rings if you are available.
4 Ensure Central's employees have adequate content knowledge of parking regulations
and the City.
4 Answer the telephone professionally and politely in a consistent manner.
4 Present a positive tone.
s Greeting should clearly identify your name.
4 Listen first for content, defer personal judgment, and concentrate on the main issue.
Take ownership of the call. Answer the question or find out who could answer the
question and follow through if you transfer the caller to another extension.
4 Do not use voice mail to avoid answering the phone if you are available.
4 If you want to talk to a customer on the speakerphone, ask if they mind first.
Connecting a Caller
4 Always ask if the caller would like to be connected.
4 Give the caller the telephone number prior to the connection.
4 Prior to connecting the caller, give them the options that are available if the employee
does not answer the telephone (i.e., leave a message on voicemail, take a message or
connect them to another person who may assist them).
4 Verify the person you are connecting to is on the line before you hang up.
Central Parking System, Inc. Page 23
s Introduce the caller and explain the issue to the receiving party.
Voice Mail
s All voice mail messages need to clearly state that the customer has reached Central
and your name.
s Provide an option to reach a "live body ".
S If no live body option is available, leave an alternate name and telephone number for
the customer to reach.
4 Return all telephone calls within one business day.
w Update message when you will not be returning phone calls within one business day.
Leave an alternate name and telephone number for the customer to reach in your
absence.
s Check voice mails a minimum of two (2) times a day. If your daily work schedule
keeps you out of the office for extended periods, leave a message with information of
when return calls will be made.
4 Use voice mail as if you were sending a memo. Leave specific messages of why you
are calling and what information you may need.
Closing a Call
s Ask callers if they have received the information they requested and if they
understand it.
s Ask if there is anything else you can do for them.
# Thank them for calling.
4 Allow callers to hang up first.
s Always put the receiver down gently.
3. Customer Service Training: Complaint Management
s Keep a cool head
4 Smile /be polite
s Listen without interrupting
s Ask questions /document
s Call them by name /don't be too familiar /remain professional
# Offer your assistance
s Don't say no immediately
s Know your limits /don't act defensively
Demonstrate you understand the customer's point of view
s If the error was at your end, briefly explain where things went wrong and what has
been done to correct the problem
# How to handle profane or inappropriate language by customer:
Central Parking System, Inc. Page 24
1. Ask caller not to use that type of language.
2. Tell caller you will not continue conversation if they continue to use inappropriate
language.
3. If they persist, hang up.
Central Parking System, Inc. Page 25
Contracting out of Parking Meters and Meter Enforcement; Approval of Central Parking System, Inc.
Agreement
March 22, 2011
Exhibit "B"
Parking Lots
. - Pay Station Lots
4 - 229 spaces
0
0
4 - 229 space
- IndividualMeteredLots _
9- 449spaces
0
0
9 -449 space
- Staffed Lots
-_Pay as you Enter
1 - CDM
0
1-CD
0
- PayasyouLeave
1- Balboa
0
1- Balboa
0
Parking Meters
1000/26001
Coin- Operated
2600
0
0
includes pay -k
hone
1325/26001
Individual Credit Card meters
0
0
0
includes pay-1:
hone
- Consolidated PayStationS2
6
0
0
11/26001
'Estimates based on early analysis by Central.
'Can pay by currency, credit cards, cell phone.
Contracting out of Parking Meters and Meter Enforcement; Approval of Central Parking System, Inc.
Agreement
March 22, 2011
Exhibit "C"
Guaranteed Total Amount
Amount Estimated
Central
ng (Per Exhibit
n, Inc.:
city 41i pay Central the
tization of Infrastructure/Supporting Equipment
afi lons-and- Management Fee
Minimum Guarantee Payment to Central Before "Excess Revenue"
bution to City and Central
s (revenue share 11.5%) of all revenue in excess of $4,196,968.
1.000 estimated for vear 1) *
Total EsUrnated Economic Benefit to Central Parking System, Ii
--- ---- ------ -------- ------ - - --
Bonus to be paid only after City and Central minimums have been
$ 381,762
$ 3,8920 13
61
1,6131
804,855
1,186,617
80,500
1,267,117
"RECEIV D AFTER AGENDA
PRINTED" a-ZZ
EXHIBIT "B"
SCHEDULE OF BILLING RATES
1. Revenue Distribution.
(a) City shall receive three million ten thousand three hundred and fifty -one dollars
($3,010,351) per year from Central in guaranteed income, regardless of actual parking
meter revenue collected by Central ( "City's Guaranteed Income "). The City's
Guaranteed Income shall be drawn from the funds deposited daily (or other deposit
schedule directed by City) with the City pursuant to Section 2.1(a) below, and
supplemented by Central as needed. The City's Guaranteed Income may be reduced
on a mutually agreed upon pro -rata basis based upon any change in enforcement,
reduction in rates or other actions of the City that impact the ability of the public to park
in the Original Spaces; (i) as described in Section 2.1 of Exhibit "A," or (ii) to the extent
caused by a declared state or federal emergency or any other force or forces that
directly affects the Original Spaces for more than seven (7) days.
(b) If adequate parking meter revenue exists, City shall pay Central eight hundred and
four thousand eight hundred fifty -five dollars ($804,855) per year for profit and operating
expenses ( "Base Remittance ").
City shall pay Central three hundred and eighty -one thousand seven hundred and sixty -
two dollars ($381,762) per year as reimbursement for the amortized portion of the new
parking meters and supporting equipment installed /used within the Original Spaces
which payment will be denoted, "Equipment Payment". The Base Remittance and
Equipment Payment may sometimes be referred to herein as "Central Overhead
Amounts ".
Provided adequate parking meter revenue exists, the Central Overhead Amounts will be
remitted in twenty -four (24) semi - monthly payments on the fifteenth (15th) and thirtieth
(30th) day of each month of the term hereof, with the first such payment to be May 15,
2011. All payments to Central under this Section shall be accomplished by the use of
electronic fund transfer. On a monthly basis, City shall reconcile the revenues received
and Central Overhead Amounts made to Central, and if necessary, lower the monthly
payment to Central if City is not on track to collect the City's Guaranteed Income as
adjusted pursuant to Subsections 1(a) and 1(c).
(c) By June 30 following each year, or partial year, of the term hereof, City shall
reconcile the previous year's (May 1 through April 30) parking meter revenues and
payments to Central and if revenue exceeds the full amount of the City's Guaranteed
Income, such excess revenue shall be used to pay:
i. Central the difference, if any, between: (i) the Central Overhead Amounts
due Central for such year and (ii) the amounts already paid during the term up to the
Central Parking System, Inc. Page 20
total Central Overhead Amount due for the term to date; and any surplus above that
payment shall be used to
ii. pay Central a bonus ( "Central Bonus ") equal to eleven and half percent
(11.5 %) of all parking meter revenues per year in excess of the City's Guaranteed
Income, the Base Remittance, and the Equipment Payment, as adjusted. On April 1,
2013, Central's bonus shall increase by five (5) percentage points (to sixteen and half
percent (16.5 %) of all parking meter revenues per year in excess of the City's
Guaranteed Income, the Base Remittance, and the Equipment Payment, as adjusted.
On April 1, 2015, Central's bonus shall increase by an additional five (5) percentage
points to twenty -one and half percent (21.5 %) of all parking meter revenues per year in
excess of the City's Guaranteed Income, the Base Remittance, and the Equipment
Payment, as adjusted.
For example', prior to April 1, 2013, if $5,000,000 in parking meter revenue is collected
in a given year (netting out credit card processing fees, which is estimated to be
$225,000), then for that same year:
The first $3,010,351 shall go to the City.
The next $1,186,617 shall go to Central.
Then under the revenue share, of the remaining $803,032:
City shall receive $710,683.32
Central shall receive $92,348.68
However, if only $3,000,000 in parking meter revenues are collected in a given year,
then City shall receive the entire $3,000,000 and Central must remit to City an additional
$10,351. Central will not receive any payments for that year.
(d) All income from parking citations shall be the sole property of the City and not count
towards the dollar amounts referenced in sections (a), (b), or (c) above.
(e) Central shall utilize the most current parking meter rates as may be adopted by the
City.
(f) During the first six (6) months of the term hereof, (May through October 2011),
notwithstanding anything set forth above to the contrary, the Base Remittance and
Equipment Payment will be remitted on a semi - monthly basis to Central without regard
to whether or not adequate parking meter revenue exists. Then, by November 15,
2011, City and Central will reconcile all meter collections and deposits through October
31, 2011 to ensure City's Guaranteed Income is on track to be met. Central shall remit
to City any shortcomings, by November 30, 2011, in the City's Guaranteed Income to
ensure City is on track to receive the full amount of City's Guaranteed Income.
Beginning December 1, 2011, City shall reconcile the parking meter funds monthly to
ensure City is on track to receive City's Guaranteed Income.
' The bonus breakdown demonstrated within this example will change based upon the adjusted
percentages implemented on April 1, 2013 and April 1, 2015.
Central Parking System, Inc. Page 21
2. Collection of Monies and Accounting.
2.1 Central shall be responsible for the following:
(a) Collecting and accounting for all revenues from the parking meters (City will turn
over all of its collection canisters to Central prior to the commencement of the term
hereof). All monies collected from parking meters will be deposited daily (or as
otherwise directed by City), in accordance with approved guidelines established by the
City, into a restricted account authorized by the City. The restricted account shall allow
Central to make deposits, but only the City may withdrawal funds from the restricted
account. Deposits shall be made to specific revenue accounts as established by the
City in order to properly reflect all collections areas, particularly tidelands. Central shall
be given full access to view the activity in such bank accounts.
(b) Ensuring proper accountability and internal control of monies collected by Central.
(c) Providing any periodic or special financial and operational reports as requested by
the City.
(d) Providing capability to use debit cards, keys or similar devices at selected Meter
locations.
(e) Should any monies collected by Central be lost, stolen, unaccounted for or otherwise
removed without the authorization of the City from the custody and control of Central
prior to their deposit in the City's approved bank account, Central shall deposit in said
amount a like sum of money within ninety -six (96) hours of such loss, theft or removal.
Should said loss, theft or removal be insured or otherwise secured by Central, any
payments made to the City on account thereof shall, if appropriate, be reimbursed to
Central. Central will be liable for all loss /mismanagement of funds.
(f) Segregating all parking meter revenue attributable to parking meters within the
tidelands into a separate tidelands account controlled by the City.
Central Parking System, Inc. Page 22
Central Newport Beach Community Association
PO Box 884 • Newport Beach, CA • 92661 -OB84
www.CentralNewport.Org
Date: March 21, 2011
To: Mayor Henn, Members of the City Council
From: Central Newport Beach Community Association (CNBCA)
Subject: Contracting Out of Parking Meter Operation and Enforcement,
Agenda Item No. 14 (22 Mar 2011)
Mr. Mayor and Council Members:
We understand the direct financial benefit and reduced pension liability of outsourcing parking
operations and enforcement.
We ask the Council to consider the following before executing any agreement on parking:
A ii'i*A
• Peninsula residential neighborhoods currently bear both the highest financial and
inconvenience burden from this revenue source.
• Most residential neighborhoods throughout the City would never allow meters surrounding
their homes.
• The area - specific annual permit parking program (e.g., blue meters and lots) helps reduce the
burden on residents.
Our specific concerns regarding the proposed agreement with Central Parking Systems, Inc., include:
The agreement should not restrict the City from expanding or changing the area - specific
annual permit parking program (e.g., adding blue metered spaces), and
The agreement should hold the City harmless for decreases in the contractor's revenue
should the City decide to change the number of parking spaces that participate in the area -
specific annual permit program.
Thank you for considering our concerns as you make your decisions.
Louise Fundenberg, President
Central Newport Beach Community Association
1
CITY COUNCIL 3/22/2011
ENTRAL PARKING SYSTEM INC.
COST SCENARIOS:
Parking Meter Revenue Scenarios
Excess Revenue
(City = 88.5 %,
PARKING METER REVENUES City Central Central= 11.5 %)
$ 3,000,000 $ 3,000,000 $ - $
$ 3,500,000 $ 3,010,351 $ 489,649 $
$ 4,900,000 $ 3,010,351 $ 1,186,617
622,183 80,849 $
Total $ 3,632,534 $ 1,267,466
$ 5,200,000 $ 3,010,351 $ 1,186,617
887,683 115,349 $
Total $ 3,898,034 $ 1,301,966
NOTES
- NET REVENUE TODAY
Worst Case Scenario -
Reminder City still avoids
- $500k in operating costs
703,032
1,003,032
Median /Expected Scenario
Best Case Scenario
SINGLE SPACE METER
MULTI SPACE METER