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HomeMy WebLinkAbout05 - CPS Parking Meter Services Amendmentp� SEW PpR � CITY OF ow�'P City Council Staff Report Agenda Item No. 5 May 22, 2012 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, Revenue Manager APPROVED: "e, /(—A , TITLE: Amendment of the Agreement for Parking Meter Services between the City of Newport Beach ( "City ") and Central Parking System, Inc. ( "CPS "), dated March 31, 2011 ( "Original Agreement ") ABSTRACT: City staff and CPS find it mutually beneficial to refine and amend the Original Agreement to eliminate finance costs incurred by the City and to adjust the payment structure based on a full year of financial information and the final revenue collections for 2011. The proposed amendment (Attachment "A ") simplifies and provides an annual operating guaranteed payment to CPS at a fair return and allows the City to eliminate costly financing charges for the purchase of equipment and infrastructure. RECOMMENDATION: Staff recommends that City Council authorize the Mayor and City Clerk to: Approve an amendment to the Agreement which would a. Pay Central $700,000 annually for its services; and b. Authorize the Finance Director to pay approximately $618,000 to cash fund the capital costs of the parking meter equipment and infrastructure, saving the City approximately $240,000 in finance charges over the terms of the equipment leases. C. Authorize the City Manager to appropriate $618,000 from the FY 2011 -12 General Fund operational savings (010 -3605) to be expended for the purchase of all parking meter equipment and infrastructure. Amendment of the Agreement for Parking Meter Services between the City of Newport Beach ( "City ") and Central Parking System, Inc. ( "CPS "), dated March 31, 2011 ( "Original Agreement ") May 22, 2012 Page 2 FUNDING REQUIREMENTS: There is sufficient funding in the FY 2011 -12 Finance department budget for the $700,000 payment to CPS. There is currently sufficient General Fund FY 2011 -12 operational savings to pay the estimated at $618,000 for the payoff of the parking meter equipment and infrastructure. DISCUSSION: Background The City entered into the Original Agreement with CPS on March 31, 2011. The four key goals identified for CPS were: • Maximize parking meter revenue • Increase the quality of services to the public • Modernize parking meter equipment and infrastructure; and • Streamline and improve parking enforcement service CPS met all four goals within its first full year of operations. PARKING METER REVENUE CPS has increased parking meter revenues by almost 25% in their first full year of operation. Staff expects this percentage to continue to grow. A table comparing the parking meter revenues collected from May 2011 through April 2012 to the previous year is provided here. QUALITY OF SERVICES Parking Meter Revenue Year Ended April 2011 vs. April 2012 " "May - April 2012 $ 3,605,381 May - April 2011 2,898,059 Variance $ 707,323 $Increase $ 707,323 % Increase 24.41% denotes that amounts are net of credit card fees ($E CPS provides enhanced meter services which ensure frequent revenue collection and the rapid repair of broken meters, resulting in decreased revenue downtime. CPS also delivers excellent customer service, as evidenced by their 24 hour response to customer complaints and concerns. Staff finds that they are committed to continually enhancing customer service operations. Amendment of the Agreement for Parking Meter Services between the City of Newport Beach ( "City ") and Central Parking System, Inc. ( "CPS "), dated March 31, 2011 ( "Original Agreement") May 22, 2012 Page 3 PARKING METER EQUIPMENT & INFRASTRUCTURE CPS installed 1,325 state -of- the -art credit card single -space and 7 multi -space meters within the agreed upon deadline. The credit card option facilitates payment for parking, and allows more options for customer payment, which increases customer satisfaction. CPS reports show that customers are using credit cards at the meters 43% of the time. PARKING ENFORCEMENT CPS' enforcement ambassadors increased collectible parking meter citation revenues by 36 %, or $341,727, while continuing to encourage customers to pay the meter before issuing the citation. The proposed amendment will not change the provision that the City receive 100% of citation revenues. It is in the City's and CPS' best interest for customers to pay the meters rather than receive citations. In the future, staff expects the parking citation revenue to level out as compliance with parking meter payment increases. ORIGINAL CPS AGREEMENT PAYMENT STRUCTURE In the Original Agreement, parking revenues were to be distributed as follows, so long as the revenues were available: 1. $3,010,351 to the City; 2. $1,186,617 to CPS ($804,855 for operating expenses and profit; $381,762 for reimbursement for the amortized portion of the new parking meters and supporting equipment); then 3. 11.5% remaining revenues to CPS (until March 31, 2013); 16.5% remaining revenues to CPS (from April 1, 2013 to March 31, 2015); and 21.5% remaining revenues to CPS (from April 1, 2015 until expiration /termination of the Agreement). Comparison of Parking Citations Issued Year Ended April 2011 vs. April 2012 Dates # of Citations Amount $ May -April 2011 17,846 959,911 May - April 2012 22,609 1,301,638 $Increase 4,763 341,727 % Increase 26.69% 35.601 CPS' enforcement ambassadors increased collectible parking meter citation revenues by 36 %, or $341,727, while continuing to encourage customers to pay the meter before issuing the citation. The proposed amendment will not change the provision that the City receive 100% of citation revenues. It is in the City's and CPS' best interest for customers to pay the meters rather than receive citations. In the future, staff expects the parking citation revenue to level out as compliance with parking meter payment increases. ORIGINAL CPS AGREEMENT PAYMENT STRUCTURE In the Original Agreement, parking revenues were to be distributed as follows, so long as the revenues were available: 1. $3,010,351 to the City; 2. $1,186,617 to CPS ($804,855 for operating expenses and profit; $381,762 for reimbursement for the amortized portion of the new parking meters and supporting equipment); then 3. 11.5% remaining revenues to CPS (until March 31, 2013); 16.5% remaining revenues to CPS (from April 1, 2013 to March 31, 2015); and 21.5% remaining revenues to CPS (from April 1, 2015 until expiration /termination of the Agreement). Amendment of the Agreement for Parking Meter Services between the City of Newporl Beach ( "City") and Central Parking System, Inc. ( "CPS "), dated March 31, 2011 ( "Original Agreement ") May 22, 2012 Page 4 AMENDMENT OF AGREEMENT In reviewing this year's performance and revenue collection process with CPS, staff agreed that it would be mutually beneficial to simplify the complicated payment structure in the Original Agreement and replace it with a $700,000 annual payment for operating expenses, and CPS agreed to a lower annual operational reimbursement. Part of the reason to restructure the Original Agreement is based on an analysis staff conducted regarding the foundational data used as a basis for the payment structure adopted by Council. The City's revenue estimates, provided to all the vendors during the Request for Proposal process and used by CPS to estimate their revenue flow for seven years of operation, were optimistic. Staff found that unseasonably cold summer and spring weather experienced during FY 2010 -11 produced an unanticipated revenue shortfall during their first operating year. The Original Agreement inadvertently penalizes CPS for the poor economic conditions of FY 2010 -11, but the proposed amendment would assure that CPS is adequately reimbursed for their operating costs. The bonus payments from the Original Agreement shall remain the same to incentivize CPS, and so CPS can share in the proceeds of excess revenue of which they are a significant contributor. For the reasons mentioned above, this structure does not reimburse CPS adequately to cover their day -to -day operations. The City and CPS want this partnership to thrive, but it cannot do so if CPS cannot cover their basic operational expenses in this or any year of the Original Agreement. In the proposed amendment, CPS will be paid $700,000 annually (on a monthly basis) for their services, and the City will retain all parking meter revenues regardless of amount. CPS will be paid a bonus only if parking meter revenues exceed $3,400,000, then any excess above the $3,400,000 would be shared as follows: 11.5% of revenues > $3.4 million to CPS (until April 30, 2013); 16.5% of revenues > $3.4 million to CPS (from May 1, 2013 to April 30, 2015); 21.5% of revenues > $3.4 million to CPS (from May 1, 2015 until expiration/ termination of the Agreement). The City projects parking meter revenues for FY 2011 -12 to be $3,700,000, an increase of $700,000 compared to FY 2010 -11. Collectible parking citation revenues for FY 2011 -12 are estimated to be $1,300,000, an increase of $340,000 over the previous year, The City typically experiences a collection rate of 70 %, which means actual increased citation revenue to the City would be approximately $238,000. If the payment structure is amended, CPS will be assured their payment of $700,000 plus $34,500 of bonus revenue, and City will receive additional revenue of $938,000, all contemplated with the Original Agreement but executed in a different manner. The net increased revenue to the City would be $203,500 in FY 2011 -12. Amendment of the Agreement for Parking Meter Services between the City of Newport Beach ( "City ") and Central Parking System, Inc. ( "CPS'), dated March 31, 2011 ( "Original Agreement') May 22, 2012 Page 5 EQUIPMENT PURCHASE CPS entered into various purchase or lease agreements in order to obtain parking meters and other related equipment for the City. Pursuant to the Original Agreement, the City was to pay $381,762/year to CPS for the amortized portion of those leases. After working with CPS, and reviewing their leasing arrangements, the City has determined it could save approximately $240,000 by paying off the leases as of May 31, 2012. The payoff amount is anticipated to be $618,000 (see Attachment "B" for list of equipment and amounts). The amendment would also allow City to pay cash, or self finance, all future purchases of parking meter equipment. FINANCE COMMITTEE APPROVAL On Monday, May 7, 2012, staff provided Finance Committee. The Committee agreed to forward this item to Council. ENVIRONMENTAL REVIEW: this amendment and background to the with the amendment and authorized staff 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). Prepared by: Submitted by: Tracy McCr er Dave Kiff Finance Director City Manager Attachments: A. Proposed Amendment with Central Parking Systems B. Equipment List and Payment Amounts ATTACHMENT A AMENDED AND RESTATED PROFESSIONAL SERVICES AGREEMENT WITH CENTRAL PARKING SYSTEM, INC. FOR PARKING METER SERVICES THIS AMENDED AND RESTATED PROFESSIONAL SERVICES AGREEMENT FOR PARKING METER SERVICES ( "Restated Agreement') is made and entered into as of this day of , 2012 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. Central is a national corporation with extensive experience in managing municipal parking operations and Central has the skill, ability, background, certification and knowledge to provide the services described in this Restated Agreement. C. City and Central entered into an agreement entitled PROFESSIONAL SERVICES AGREEMENT WITH CENTRAL PARKING SYSTEM, INC. FOR PARKING METER SERVICES dated March 31, 2011 for Central to operate 2,675 metered parking spaces within the City (1,644 on- street meters and 1,031 off - street meters) ( "Original Agreement'). D. City and Central mutually desire to enter into this Restated Agreement to amend the terms of the Original Agreement in relation to compensation and the payment of capital expenditures, among other revisions. E. Central will continue 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 parking meters and support equipment, and provide parking meter enforcement services ( "Project'). F. The principal member of Central for purposes of this Project shall be Director of Operations of Orange County, Tim Downey. G. 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 Restated Agreement. H. Upon the execution of this Restated Agreement by City and Central the Original Agreement shall be repealed and of no further force or effect. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM & RECITALS The term of this Restated Agreement shall be effective as of November 1, 2011, and shall terminate on April 1, 2018, unless terminated earlier as set forth herein. City and Central acknowledge the Recitals provided above are true and correct and are hereby incorporated into the operative part of this Restated Agreement. 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 Restated 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 Restated 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, electronic -mail, 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 Restated Agreement without the prior written approval of City. Central Parking System, Inc. Page 2 4.1 City shall reimburse Central only for those costs or expenses specifically approved in this Restated 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 Restated Agreement. Compensation for any authorized Extra Work shall be paid in accordance with rates mutually agreed upon by City and Central. 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 Restated Agreement term. Central has designated Director of Operations of Orange County, Tim Downey 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 Restated Agreement. 6. ADMINISTRATION This Restated Agreement will be administered by the Finance Department. Evelyn Tseng, Revenue Manager or her designee, shall be the Project Administrator and shall have the authority to act for City under this Restated Agreement. The Project Administrator or her authorized representative shall represent City in all matters pertaining to the Services to be rendered pursuant to this Restated Agreement, including amendments to this Restated Agreement. 7. CITY'S RESPONSIBILITIES In order to assist Central in the execution of its responsibilities under this Restated Agreement, City agrees to, where applicable: 7.1 Provide access to, and upon request of Central, one (1) 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. Central Parking System, Inc. Page 3 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 Restated 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 Restated Agreement and all applicable federal, state and local laws and the community professional standard of care. 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 Restated 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 Restated Agreement, any Work performed or Services provided under this Restated 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 Restated 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. Central Parking System, Inc. Page 4 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 express terms of this Restated Agreement. Nothing in this Restated 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 Restated Agreement. Anything in this Restated 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. 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 Restated 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 Restated Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. Central Parking System, Inc. Page 5 Central shall procure and maintain for the duration of the Restated 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. 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 Restated 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. Central Parking System, Inc. Page 6 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 Restated 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 Restated Agreement, in the minimum amount of five million dollars ($5,000,000) limit per claim. 14.4 Other Insurance Provisions or Requirements. 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 Restated 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 Restated 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. Central Parking System, Inc. Page 7 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 Restated 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 Restated Agreement, the Services to be provided under this Restated 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 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 Restated Agreement is the professional reputation, experience and competence of Central. Assignments of any or all rights, duties or obligations of Central under this Restated 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 Restated 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 Restated 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 Restated 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 Restated 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. Central Parking System, Inc. Page 8 18. CONFIDENTIALITY All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the Services in this Restated 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 Restated Agreement. 20. RECORDS Central shall keep records and invoices in connection with the Work to be performed under this Restated Agreement. Central shall maintain complete and accurate records with respect to the parking meter revenue collected and the costs incurred under this Restated 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 Restated 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 Restated Agreement for a period of three (3) years from the date of final payment to Central under this Restated Agreement. If as a result of the audit it is determined Central has not complied with the terms of this Restated 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 Restated 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 Section is intended to limit City's rights under the law or any other sections of this Restated Agreement. Central Parking System, Inc. Page 9 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 ( "Act "), which (1) requires such persons to disclose any financial interest that may foreseeably be materially affected by the Work performed under this Restated 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 Restated 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 Restated Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third (3rd) 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 Finance Department City of Newport Beach 3300 Newport Boulevard PO Box 1768 Newport Beach, CA 92658 Phone: 949 - 644 -3153 Fax: 949 - 644 -3073 E -Mail: Etseng @newportbeachca.gov All notices, demands, requests or approvals from City to Central shall be addressed to Central at: With a copy to: Attn: Tim Downey, Director of Operations — Orange County Central Parking System, Inc. 3420 Bristol Street, Suite 225 Costa Mesa, CA 92626 Phone: (714) 751 -2855 Fax: (714) 751 -3650 E -Mail: TDowney @parking.com James Marcum, President & CEO Central Parking System, Inc. Central Parking System, Inc. Page 10 2401 21St Avenue South .Nashville, TN 37212 The parties may designate new addresses for the receipt of notices, demands, requests or approvals under this Section via written letter without the need for a formal amendment. 26. CLAIMS Central and the City expressly agree that in addition to any claims filing requirements set forth in the Restated Agreement and Restated Agreement documents, Central shall be required to file any claim Central may have against the City in strict conformance with the Tort Claims Act (California 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 Restated Agreement at the time and in the manner required, that party shall be deemed in default in the performance of this Restated 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 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 Restated 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 Restated Agreement at any time by giving no less than 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 any money up to the effective date of termination for which Central is owed under this Restated Agreement. On the effective date of termination, City or City's new consultant will remit to Central the outstanding sums described in this Section and Central shall deliver to City all reports, Documents, Equipment (defined below), and other information developed or accumulated in the performance of this Restated Agreement, whether in draft or final form. 27.1 Transition Upon Termination. Upon termination or expiration of this Restated 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 Restated 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: Central Parking System, Inc. Page 11 (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 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. K-0' 1_1119=1:a 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 Restated 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 Restated Agreement and the Scope of Services or any other attachments attached hereto, the terms of this Restated Agreement shall govern. 32. INTERPRETATION The terms of this Restated 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 Restated Agreement or any other rule of construction which might otherwise apply. Central Parking System, Inc. Page 12 33. AMENDMENTS This Restated 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 Restated Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Restated Agreement shall continue in full force and effect. 35. CONTROLLING LAW AND VENUE The laws of the State of California shall govern this Restated Agreement and all matters relating to it and any action brought relating to this Restated Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange. 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 Restated Agreement the prevailing party shall not be entitled to attorneys' fees. 38. COUNTERPARTS This Restated Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one (1) and the same instrument. [SIGNATURES ON NEXT PAGE] Central Parking System, Inc. Page 13 IN WITNESS WHEREOF, the parties have caused this Restated Agreement to be executed on the dates written below. APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY Date: '5/11 r z By: 14C Aaron C. Harp City Attorney ATTEST: Date: By: Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, A California municipal corporation Date: By: Nancy Gardner Mayor CENTRAL: CENTRAL PARKING SYSTEM, INC., a Tennessee corporation Date: ISOr; 412&12 B Y James Bond Executive Vice President Date: 17 By: Henry J. Ab ti Secretary Attachments: Exhibit A — Scope of Services Exhibit B — Schedule of Billing Rates Exhibit C — Customer Service Standards [END OF SIGNATURES] Central Parking System, Inc. Page 14 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. 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 (e.g., 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. (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, increase or decrease time restrictions and hours of operation, and, in Central Parking System, Inc. Page 15 the event of a City- determined adjustment in rates or the number of parking meters, the parties may implement a mutually agreed upon pro -rata adjustment in the compensation paid to Central. (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 non - electric signage, striping, and related items to alert the public to the location and use of parking meters and spaces. (i) 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 Restated 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. (c) Attending all appeal hearings and providing 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. Central Parking System, Inc. Page 16 2.2.2 City shall be responsible for the following: (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 hearing 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 providing 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. (d) 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. (e) 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. (b) Maintaining radio contact at all times with supervisors and field personnel to ensure appropriate oversight of parking enforcement activities. Central Parking System, Inc. Page 17 (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 Restated Agreement. (e) Hiring, training and supervising its staff members. Central staff members assigned to the Services are employees of Central and shall not be considered employees of City for any purpose. (f) 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. (g) 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 Restated Agreement and incorporated by reference. Central will provide a high level of customer service by employing friendly, helpful, customer - oriented personnel. (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. Central Parking System, Inc. Page 18 (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 Restated 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 notify the City in writing within twenty -four (24) hours of any lost, stolen, unaccounted for or damaged Equipment (defined in Section 2.6.2 below). (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. 2.6.2 Parking Meter Equipment (a) Under the Original Agreement Central obtained parking meters and related equipment by direct purchase or via third -party leases with IPS, New Concepts Leasing, and California Office System (collectively, "Leases "). No later than ten (10) days after the execution of this Restated Agreement, Central shall provide City with all actual invoices detailing purchases or leases of capital equipment, a written inventory of all parking meters, meter poles, copy machines, vehicles, bicycles, accounts receivable processing systems, and other items purchased /financed under the Leases and by Central (collectively, "Equipment "). Upon receipt of the invoices and written inventory from Central, City shall reconcile the invoices and payments, and City will purchase the Central Parking System, Inc. Page 19 Equipment from Central, free from any interest charges, pre - payment penalties, mark- ups, or carrying charges. The combined payment for all such Equipment shall be transmitted directly to Central, decreased by the amount the City has already paid to Central for Equipment through March 31, 2012, pursuant to section 1(b) of the original Exhibit "B" to the Original Agreement. Within ten (10) days of receipt of payment from City for the Equipment, Central shall pay all amounts due to satisfy all lease obligations associated with the Equipment purchase. Within thirty (30) days of receipt of payment from City for the Equipment, Central shall provide the City with clean title to the Equipment, free and clear of all liens, claims, or obligations of the Leases or any other parties. Upon receipt of the payment for the Equipment City shall have satisfied and be excused from all further Equipment Payments, as contemplated under the Original Agreement. Central shall indemnify the City from any and all claims from Central or third - parties to the Equipment after payment is made by City under this Section. (b) After the previously purchased Equipment is paid for by City in accordance with Section 2.6.2(a) the City shall purchase or finance all other Equipment on a going - forward basis. When Central determines Equipment is necessary for the Services under this Restated Agreement Central shall submit a written request for the Equipment no less than thirty (30) days in advance. City shall review the written request and may purchase outright or finance the requested Equipment, or reject Central's request for such Equipment. The parties have a goal of ninety -nine percent (99 %) operability for all Equipment. (c) All Equipment purchased under this Restated Agreement shall be charged at Central's direct cost without any additional mark up, finance charge, interest charge, or other carrying charge to City or the parking meter user. 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 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. Central Parking System, Inc. Page 20 (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 Restated Agreement. Central Parking System, Inc. Page 21 EXHIBIT "B" SCHEDULE OF BILLING RATES 1. Revenue Distribution. (a) City shall pay Central seven hundred thousand dollars ($700,000) annually to provide the Services contemplated in this Restated Agreement. This annual payment shall be divided into twelve (12) equal monthly installments of fifty -eight thousand three hundred and thirty -three dollars and thirty -three cents ($58,333.33) that shall be transmitted to Central by the fifteenth (15th) day of each calendar month. All payments to Central under this Section shall be accomplished by the use of electronic fund transfer. (b) City shall receive and keep all parking meter revenue which shall be deposited daily (or other deposit schedule directed by City) by Central with the City pursuant to Section 2.1(a) below. (c) By August 31St following each fiscal year, or partial fiscal year, of the term hereof, provided Central has submitted the bank reconciliation and merchant credit card statements before July 31St of that same year, City shall reconcile the previous fiscal year's (July 1St through June 30th) parking meter revenues, less credit card processing fees, and if parking .meter revenue exceeds three million four hundred thousand dollars ($3,400,000) the amount of revenue in excess shall be used to pay Central a bonus ( "Central's Bonus ") equal to eleven and half percent (11.5 %) of all parking meter revenues per year in excess of the three million four hundred thousand dollars ($3,400,000). On May 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 three million four hundred thousand dollars ($3,400,000). On May 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 three million four hundred thousand dollars ($3,400,000). The three million four hundred thousand dollars ($3,400,000) revenue amount will be pro -rated for any partial fiscal year. City shall pay.Central's Bonus on or before September 30th of the applicable 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) City reserves the right to adjust parking meter rates in its sole and absolute discretion. Central shall utilize the most current parking meter rates as may be adopted by the City. (f) Credit card processing fees under this Restated Agreement shall be charged against parking meter revenue at Central's direct cost rate without any additional mark up to City or the parking meter user. 2. Collection of Monies and Accounting. 2.1 Central shall be responsible for the following: Central Parking System, Inc. Page 22 (a) Collecting and accounting for all revenues from the parking meters. 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 23 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 Introduce yourself, giving your name and your department. Ask for the customer's name and use it throughout the conversation. r Be friendly, courteous and helpful in all situations. j? If requested, be able to respond knowledgeably and professionally regarding the task that you are performing. Q Take ownership of the customer's 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. Listen first for content, defer personal judgment, and concentrate on the main issue. 2. Point of Contact - Individual Telephone Line Answering the Telephone Properly Q 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. o? Answer the telephone professionally and politely in a consistent manner. o Present a positive tone. o Greeting should clearly identify your name. Q Listen first for content, defer personal judgment, and concentrate on the main issue. o 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. Q Do not use voice mail to avoid answering the phone if you are available. Q 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. 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 24 4 Introduce the caller and explain the issue to the receiving party. Voice Mail 4 All voice mail messages need to clearly state that the customer has reached Central and your name. 4 Provide an option to reach a "live body ". # If no live body option is available, leave an alternate name and telephone number for the customer to reach. t Return all telephone calls within one business day. 4! 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. * 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. 4 Ask if there is anything else you can do for them. s Thank them for calling. f Allow callers to hang up first. s Always put the receiver down gently. 3. Customer Service Training: Complaint Management 4 Keep a cool head 4 Smile /be polite 4! Listen without interrupting ? Ask questions /document 4 Call them by name /don't be too familiar /remain professional s Offer your assistance 4 Don't say no immediately s Know your limits /don't act defensively s Demonstrate you understand the customer's point of view # 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 25 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 26 I,� ` r ((6. i0l ) � (" ! ��I X01. Projected city Payout City Remittals to CPS Net Due to CPS $ 1,031,899.26 $ (413,575.50) $ 618,323.78 IPS LEASE Meter Lease Term Total Meter Lease Residual Previous Lease lease 5 year w /residual Payments through 5/31 Buy Out Quote $ $ $ 1,055,007 192,814 626,309 Payments Buy -Outs Through �, Item Vendor Payment Direct Purchases Through 5 /31112 - 5/31/12 Total IPS Meters & Replacements IPS Leased $ 192,814 $ 626,309 $ 819,123 3 Ford Vehicles New Concepts Leasing Leased 5 15,534 $ 69,123 $ 84,657 Copier/ Scanner California Office System Leased $ 2,799 $ 8,334 $ 11,134 7 Luke Machines Digital Payment Tech Purchased $ 52,647 $ 52,647 Handhelds/ Setup and Programming Duncan Parking Tech Purchased $ 49,466 $ 49,466 5 Bikes Jax Bikes Purchased 5 2,795 $ 2,795 Start Up Costs Various Purchased $ 12,077 $ 12,077 Totals $ 116,985 $ 211,148 $ 703,766 $ 1,031,899 Less City Capital'Avances To Central Through 5 /31/12 $ (413,576) Net Due to CPS $ 618,324 IPS LEASE Meter Lease Term Total Meter Lease Residual $ $ 922,627 132,380 5 year w /residual Payments through 5/31 Buy Out Quote $ $ $ 1,055,007 192,814 626,309 Vehicle Lease Term Total 5 71,697 Vehicles Lease Residual $ 17,000 5 Year w /residual $ 88,697 Payments through 5/31 $ 15,534 Copier Lease Tenn Total $ 7,752 Payments through 5/31 $ 2,799 Pending verification of direct expenditures and tease amounts. •' Total Gross Savings From Buyout $ 239,343 "Total NPV Savings From Buyout $ 204,518