METERED PARKING SYSTEM

RFP REVIEW TEAM UPDATE

City of Tulsa

Management Review Office (MRO)

January 17, 2013

MAJOR PROCESS EVENTS

Event Date

RFI Released October 25, 2011

RFI Responses Received December 9, 2011

RFI Review Team Recommendation April 10, 2011

RFP Released June 6, 2012

Proposals Received July 25, 2012

Responses to Written Follow-Up Questions Received August 27, 2012

Oral Presentations August 30, 2012

Best and Final Offers (BAFO) Received September 18, 2012

21/18/2013

METERS - WHAT WE’VE HEARD

• Why are the meters always broken?

• Why can’t I ever pay with a credit or debit card?

• When the meters are broken, I can’t make sense of what the message on the bag is telling me!

• Downtown workers are taking metered spaces and preventing my customers from parking on-street!

• Why do we have to have meters?

• There’s not enough on-street turnover downtown!

• I don’t want my customers to have to rush out and plug the meter in the middle of their dinner!

• The parking enforcement guy is out to get me!

3

THE TAKEAWAY

4

The Metered Parking System is broken and must be

fixed if Downtown Tulsa is to continue to grow!

RFP OBJECTIVES

1. Enhance downtown economic development

2. Improve the quality of the customer experience

with the MPS

3. Modernize MPS equipment

4. Employ and utilize best practices in on-street

parking systems and methods

5. Generate sufficient revenue to maintain the MPS

51/18/2013

RFP DESCRIPTION

1. Included detailed information on City Metered

Parking system (MPS)

2. Required scope of services included:

1. Meter maintenance and revenue collection

2. Parking violation enforcement consulting & training

3. Parking program expertise (software, parking-

related consulting, program marketing)

3. Requested pricing with/without capital for meters

4. Expressed City openness to rate/hour changes

and solicited ideas for such from Bidders61/18/2013

PROPOSAL ASSESSMENT

71/18/2013

1. Proposals received:

1. American Parking (with Duncan Solutions as a

team member)

2. SP Plus (a subsidiary of Standard Parking)

3. Sage Solutions, LLC

2. 7-person review team (City and community

members) with legal/consulting support

3. Extensive evaluation process

4. Recommendations developed

RECOMMENDATION #1

81/18/2013

American Parking presents the superior proposal

Proposal Business Plan

Technical Plan

Cost Total Points

American Parking

27 37 30 94

SP Plus 27 30 20 77

• American Parking Advantages– A deep understanding of the specifics of the Tulsa market

– Detailed operating and implementation plans that demonstrate a thorough understanding of the desired scope of services

– Specific, detailed maintenance program framework

– A demonstrated track record of providing superior service to local entities

– Relevant performance standards that would require American to provide a high level of customer service

– Separation of responsibilities in collection, deposit, and accounting of meter revenue

RECOMMENDATION #2

91/18/2013

Request TPA contract with American for 5-year

agreement in which American provides meter capital

• Considerations– Without a change to rates and hours, both Scenarios require

additional funding from the City

– The Scenario in which American Parking provides the capital for the necessary meters is the most advantageous to the City

– This Scenario requires a 5-year agreement, possible through the TPA

Bidder Provides

Necessary Capital

(Scenario 1)

City Provides Necessary

Capital (Scenario 2)

No Rates/Hours Change

(Option 1)

$ (68,665) $ (76,364)

Proposed Rates/Hours

Change (Option 2)

$ 269,450 $ 261,751

WHY TPA?

1. The MPS is an important aspect of downtown, but

management can be improved. The TPA can provide the

focus, parking expertise, and the integrated on-street/off-

street parking analysis that has been missing.

2. Segregating the MPS’s resources and operations away

from other General Fund uses will protect it in future

downturns. Meters always lose in a competition with

Police and Fire and even other street maintenance

needs.

3. TPA’s ability to enter into a five year agreement provides

the most value for the citizens of Tulsa and allows for

scarce funding for City capital projects to be used on

other priorities.

101/18/2013

ROLES AND RESPONSIBILITIES

111/18/2013

American Parking City of Tulsa Tulsa Parking Authority

Finance and install meters

consistent with the Proposal

Receive meter revenues

collected by American Parking

Receive sufficient funds from

the City of Tulsa to pay the

American Parking contract

Maintain meters at

contractual standards

Enforce meter statutes and

collect meter violations

revenue

Pay the American Parking

contract

Collect meter revenue Provide staff support to the

TPA to manage the American

parking contract day-to-day

Monitor American Parking’s

fulfillment of the terms of the

contract

Train City enforcement

personnel

Regulate meter rates, hours,

and parking fines (Council)

Analyze both the on-street

and off-street components of

Tulsa parking in planning for

the future

Provide consulting on on-

street parking matters

Ensure the TPA receives

sufficient revenues to pay

American Parking

Recommend further

improvements to the on-street

parking system

RECOMMENDATION #3

121/18/2013

Propose to the City Council new parking districts as

well as new MPS rate and hour structures

• New District/Rate/Hour Plan Advantages– Districts represent distinct characteristics of the areas

– Estimated meter + parking enforcement revenue increases to ~$940K year from $423K in FY2012 (OKC generated ~$2M/yr. prior to recent changes)

– 7 am – 5pm enforcement, M-F

– Identified business owner need for more turnover

30 Minute Meter 2 Hour Meter

Current $0.10 each for ½ hour $0.25 each ½ hour

Proposed (Business Core, Restaurant, BOK Dists.)

$0.50 each for ½ hour $0.50 each ½ hour

Proposed (Financial Dist.) $0.50 each for ½ hour $0.50 for first ½ hour; $1 each additional ½ hour

Proposed (South Dist.) N/A $0.15 each for ½ hour

RECOMMENDED DISTRICTS AND

RATES

131/18/2013

WHAT THIS MEANS

1. A Tulsa-based firm providing the maintenance, collection, and consulting services

2. Enforceable performance standards – 98% meter uptime, 48 hour max response time for meter repair

3. Better maintained and regularly updated meters

4. Better training for City personnel conducting enforcement

5. Electronic payment capability on all multi-space meters

6. Meter rates that vary depending on the district

7. More revenue to maintain quality of MPS

8. Continued control of Metered Parking districts, rates, and hours by the City Council

9. Parking expertise to assist in tackling additional parking problems in Tulsa

10. A coordinated look at on- and off-street parking issues141/18/2013

REQUESTED OF THE CITY

COUNCIL

1. Act to approve amendment to

ordinance for changes to Metered

Parking Rates, Hours, and Districts

2. Review and accept the changes to

the TPA indenture giving the TPA a

contract management role for the

Metered Parking System

151/18/2013

QUESTIONS AND COMMENTS?

161/18/2013

NEXT STEPS AND QUESTIONS

1. Notifying the leading Bidder – COMPLETE

2. Seeking approval of the Bidder recommendation at the next SSA meeting – COMPLETE

3. Briefing City Councilors – ON-GOING

4. Briefing TPA on the recommendations made and any necessary indenture changes - COMPLETE

5. Briefing the Downtown Coordinating Council (DCC) Parking Subcommittee and the DCC - COMPLETE

6. Convening public meetings to discuss the recommendations with interested stakeholders -COMPLETE

7. Negotiating an acceptable agreement – ON-GOING

8. Drafting the necessary ordinance changes related to districts, rates, and hours for Council consideration -COMPLETE 171/18/2013

PEER CITIES’ METERED PARKING

RATES AND HOURS

181/18/2013

City Population Rate Hours of

Operation

Metered

Spaces

Violation

Tulsa 391,906 Range from $0.10

per hour to $0.50

per hour

8am-5pm M-F 1,609 $15.00;

$25.00 if paid

after 10 days

Oklahoma

City

580,000 $1.50 per hour 7am-6pm M-Sa. 1,500

downtown;

adding 600

more over

next 2 years

$15.00;

$34.00 if paid

after 10 days

Wichita 382,368 $0.50 per hour 8am-5pm M-Sa.

and until 11 pm in

2 zones around

the library and

Century II District

2,100 $15.00;

$25.00 if paid

after 10 days

Omaha 432,958 $1.00 per hour/

$1.25 per hour in

midtown district

8:30am-5pm M-

F;

8:30am-6pm M-

Sa. in midtown

district

3,300 $16.00;

$36.00 if paid

after 30 days

Kansas City 459,787 $1.00 per hour 6am-6pm M-F;

6am-8pm Sat.

2,000 $28.50

Little Rock 193,524 $0.50 per hour` 8am-6pm M-F 1,488 $15.00

$50.00 after

30 days

MPS HISTORICAL DATA - I

191/18/2013

Revenues FY 2002 FY 2005 FY 2006 FY 2007 FY 2010 FY 2011 FY 20125

Parking Meters1 (1080

4321101) 362,171.62 314,781.00 365,422.70 323,294.16 202,509.88 211,397.80 225,000.00

Blockout Fees2 (1080

4321102) 9,820.00 8,597.02 1,670.00 (17.00) - 0 0

Parking Violations3 209,204.00 172,103.00 248,792.00 322,299.00 213,138.00 257,000.00 198,000.00

Total Operating 581,195.62 495,481.02 615,884.70 645,576.16 415,647.88 468,397.80 423,000.00

Expenses

Personal Services4 194,224 221,470 224,336 228,376 156,655 138,242 129,000

Contractual Services - - - 2,970 33,385 23,306 21,000

Internal Charges

Supplies and 11,964 135,204 25,628 7,106 19,585 31,579 81,000

Total Operating

Expenditures 206,188 356,674 249,964 238,451 209,625 193,127 231,000

EBITDA 375,008 138,807 365,921 407,125 206,023 275,271 192,000

MPS HISTORICAL DATA - II

201/18/2013

Raw Data from Courts -

6/14/11 PARKING CITATIONS 2001 - 06/2011

Calendar Amt

Year # Written Amt Due # Paid Amt Paid #Outstand Outstanding

2001 43,614 507,494$ 27,234 358,773$ 16,286 198,038$

2002 33,752 387,027$ 20,703 263,849$ 13,020 156,145$

2003 33,018 465,949$ 20,671 322,325$ 12,319 178,085$

2004 21,489 370,605$ 13,388 251,065$ 8,096 141,980$

2005 19,120 342,025$ 12,132 235,864$ 6,975 129,545$

2006 32,220 576,659$ 21,342 433,312$ 10,841 200,466$

2007 29,579 557,607$ 21,067 459,867$ 8,482 169,537$

2008 16,643 341,798$ 11,207 258,741$ 5,426 119,008$

2009 15,248 381,157$ 11,166 337,612$ 4,071 101,886$

2010 19,022 433,965$ 13,730 376,287$ 5,284 121,770$

2011 11,951 245,121$ 7,170 169,951$ 4,774 95,625$

INTERNAL VS. EXTERNAL

COMPARISON

• When taking into account an “apples to apples

scope of services”, City estimate is <2%

cheaper (~$662K vs. ~$673K annually)

• Qualitative considerations:

211/18/2013

City Team Positives American Parking Positives

Maintenance of direct control of the services

Provides parking expertise and best practices that the City would otherwise have to attract, hire, and keep

No transition required Enforceable performance standards

Maintain experienced City employees Costs are guaranteed over 5-year term

Managing the contract will take time and resources

One point of accountability

No potential for contract disputes Faster implementation of new meters, software, and other technology

MPS HISTORICAL DATA - III

221/18/2013

Type Working Not

Working

Vacant

Posts

No Post Total

Spaces

Served

Multi-

space

Meters

146 9 0 0 939

Single-

space

Meters

427 67 162 101 757

ADDRESS RFP GOALS?

231/18/2013

RFP Goals How Addressed by Proposed Solution

Enhance downtown

economic development

1) Performance standards and preventive maintenance results in

working meters that are easy for citizens to use

2) Increased rates promote greater on-street turnover

Improve the quality of

the customer experience

with the MPS

1) Electronic payment functionality on all multi-space meters

2) Citizens already familiar with Duncan VM meters

3) Performance standards and preventive maintenance results in

working meters that are easy for citizens to use

Modernize MPS

equipment

1) Upgraded multi-space meters and new single-space meters included

2) Electronic payment functionality on all multi-space meters

3) Average meter age <7 years old by end of 5-year agreement

Employ and utilize best

practices in on-street

parking systems and

methods

1) Comprehensive preventive maintenance plan and performance stds

2) Parking system software provides full visibility on maintenance and

meter revenue collection

3) Parking expertise to assist in meeting future parking challenges

Generate sufficient

revenue to maintain the

MPS

1) Rate structure allows City to fund MPS using just meter revenues,

directing ticket enforcement revenues to other Gen Fund priorities

2) Any additional revenues allow City to direct funds to future meter

expansion and/or capital improvements in the MPS area

“THE HIGH COST OF FREE PARKING”

• Written by Donald Shoup, a PhD at UCLA

• Parking meters are the most efficient and customer-friendly

means of promoting turnover

• Parking meter rates should be set at a level to encourage

appropriate turnover

• Studies show that “enforcement only” approaches to

regulating parking lead to widespread abuse of the time

limit, requiring many more enforcement personnel and

more tickets

• “Enforcement only” approaches require significantly more

staff with no revenue (outside of tickets) to support that

staff241/18/2013

PUBLIC DISCUSSIONS ON RFP

Event Date

DCC Parking Subcommittee/Blue Dome Meeting January 18, 2012

DCC Briefing March 7, 2012

Brady Parking Meeting April 13, 2012

Financial District Parking Meeting April 24, 2012

RFP Bidder Meeting June 26, 2012

DCC Briefing October 3, 2012

DCC Briefing and Vote November 7, 2012

TPA Briefing November 15, 2012

Downtown Public Stakeholders November 20, 2012

TPA Briefing December 5, 2012

Cherry Street Public Stakeholders December 5, 2012

251/18/2013

PROPOSED AMERICAN PARKING

FEE STRUCTURE – ANNUAL

1. Based on proposed new hours/rates, annual estimated parking revenue to City: ~$715,000 in meter revenue; ~$225,000 in violations revenue = ~$940,000

2. American proposed share:

1. First $509,000 in gross revenues

2. 5% of gross revenues exceeding $509,000

3. At the above estimated revenue, payment to American Parking is ~$530,550

3. City estimated retained cost (enforcement) is ~$140,000

4. City estimated net revenue for downtown investment: ($940,000 - $530,550 - $140,000 = ~$269,450)

261/18/2013