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HomeMy WebLinkAbout09 - Amendment to CPS AgreementTO: CITY OF Rl, � i' 7,�� ��` ��� �.`ii Icy � ,_�✓ /��� � L L L � _ L•� J� ��Jr .I i Agenda Item No. 9 August 13, 2013 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Finance Department Dan Matusiewicz, Finance Director 949 - 644 -3123, dmatusiewicz @newportbeachca.gov PREPARED BY: Evelyn Tseng, Revenue Manager APPROVED: •v TITLE: Amendment to Central Parking System Agreement ABSTRACT: An amendment to Amendment No. One to the Amended and Restated Professional Services Agreement with Central Parking System, Inc. for Parking Meter Services ( "CPS Agreement ") to add not -to- exceed payment amounts for August, September, October, November, December 2013; and January and February 2014. RECOMMENDATION: Staff recommends that City Council authorize the Mayor and City Clerk to approve an amendment to the CPS Agreement which would provide for certain not -to- exceed amounts for the management of the Corona del Mar Parking Lot and the Balboa Parking Lot (collectively, the "Parking Lots'). FUNDING REQUIREMENTS: There is sufficient funding in the FY 2013 -14 Finance Department budget for the payment to CPS. The not -to- exceed amounts are listed within this staff report. DISCUSSION: On February 26, 2013, the City Council approved a budget amendment for the acquisition and installation of 23 Digital Luke Machines ( "Pay Stations ") for use at the Corona del Mar and Balboa Pier Parking Lots. On April 23, 2013, the City expanded CPS services to include the management of the Parking Lots. A Coastal Development Permit application submitted by the City to the Coastal Commission for the installation Amendment to Central Parking System Agreement August 13, 2013 Page 2 of the Pay Stations is under review and a response is pending. Until the Pay Stations are installed, the City has paid CPS to operate the lots at the rates indicated below: Ambassador Level Employee - $19.00 /hour Supervisory Customer Service Level Employee - $24.32 /hour Shift Manager /Assistant Manager Level Employee - $30.40 /hour Staff assumes that approval of the Coastal Development Permit or a related waiver may take several months and is preparing for the possibility to seek continued staffing through February 2014. In 2012 -2013, the City's monthly cost to manage the Parking Lots was: August: $46,441 September: $34,967 October: $27,147 November: $26,098 December: $36,798 January: $26,506 February: $26,874 CPS has agreed to use these numbers as the not -to- exceed amounts to manage the Parking Lots. The CPS Agreement provides that once the Pay Stations are installed and operable, CPS will receive 15% of the Parking Lots revenues, net of credit card transaction fees, on a monthly basis. Until the Pay Stations are operable, CPS will NOT receive 15% of the Parking Lots revenues. ENVIRONMENTAL REVIEW: Staff recommends the City Council find that the adoption of this resolution is not subject to the California Environmental Quality Act ( "CEQX) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 2 Amendment to Central Parking System Agreement August 13, 2013 Page 3 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: Dan Matusiewicz Finance Director Attachments: A. Proposed Amendment No. Two to the Amended and Restated Professional Services Agreement with Central Parking System, Inc. for Parking Meter Services B. Amendment No. One to the Amended and Restated Professional Services Agreement with Central Parking System, Inc. for Parking Meter Services 3 AMENDMENT NO. TWO TO THE AMENDED AND RESTATED PROFESSIONAL SERVICES AGREEMENT WITH CENTRAL PARKING SYSTEM, INC. FOR PARKING METER SERVICES THIS AMENDMENT NO. TWO TO AMENDED AND RESTATED PROFESSIONAL SERVICES AGREEMENT FOR PARKING METER SERVICES ( "Amendment No. Two ") is made and entered into as of this 13th day of August, 2013 ( "Effective Date ") by and between the CITY OF NEWPORT BEACH, a California Municipal Corporation and charter city ( "City"), and CENTRAL PARKING SYSTEM, INC., a Tennessee corporation ( "Central "), whose address is 2401 2151 Avenue South, Nashville, TN 37212 and is made with reference to the following: RECITALS A. On May 22, 2012, City and Central entered into an Amended and Restated Professional Services Agreement ( "Restated Agreement') for parking meter services ( "Project'). B. On April 23, 2013, City and Central entered into an Amendment No. One to the Amended and Restated Professional Services Agreement ( "Amendment No. One ") to increase the Scope of Services. C. City desires to enter into this Amendment No. Two to modify the Scope of Services and Schedule of Billing Rates. D. City and Central mutually desire to amend the Restated Agreement, as provided below. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: SERVICES TO BE PERFORMED Exhibit A, Section 2.2(k) is amended in its entirety and replaced with the following: "(k) If the Pay Stations in the Parking Lots are not installed and operable by May 13, 2013, unless another date is indicated in writing to Central by City, Central shall provide the staff and supplies required to manage the Parking Lots accordingly, i.e. — taking payments at the booth, until the Pay Stations are installed and operable. Central shall provide employee timecards, schedules and parking sign in /sign out logs, by lot, as requested by City." 2. COMPENSATION TO CONSULTANT Exhibit 'B" to the Restated Agreement shall be amended In its entirety and replaced with the Schedule of Billing Rates attached hereto as Exhibit "B ", and incorporated herein by reference. 3. INTEGRATED CONTRACT Except as expressly modified . herein, all other provisions; terms, and covenants set forth in the Restated Agreement shat1 remain unchanged and shall be in. full force and effect. IN WITNESS WHEREOF, the parties have caused this Amendment No. Two to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTO N Y'S OFFICE Date: .8/Z-/ ( 3 By: Aaron C. Harp City Attorney IT ATTEST: 0 CITY OF NEWPORT BEACH, A California municipal corporation Keith D. Curry Mayor CENTRAL: CENTRAL PARKING SYSTEM, INC., a Tennessee corporation Date: Leilani 1. Brown Edward E. Simmons City Clerk Executive Vice President Date: By: David Jenkins Senior Vice President (END OF SIGNATURES] Attachments: Exhibit B — Schedule of Billing Rates Central Parking System, Inc. Page 2 EXHIBIT "B" SCHEDULE OF BILLING RATES 1. Revenue Distribution. (a) Parking Meters: City shall pay Central seven hundred thousand dollars ($700,000) annually to provide the Services contemplated in this Restated Agreement for the Original Spaces. 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. Parking Lots: By the 15th of each month, City shall reconcile the previous month's Parking Lots revenues. In consideration of the Services provided for the Parking Lots, City shall pay to Central Fifteen Percent (15 %) of Parking Lots revenues, net of credit card transaction fees, by the 30th of each month for the revenues collected in the previous month. Such Fifteen Percent (15 %) payment shall only take effect when the Pay Stations are installed and operating. If the Pay Stations in the Parking Lots are not installed and operating and Central is required to utilize additional personnel pursuant to Exhibit "A ", Section 2.2(k), City shall also pay to Central: Ambassador Level Employee - $19 /hour Supervisory Customer Service Level Employee - $24.32 /hour Shift Manager / Assistant Manager Level Employee - $30.40 /hour City Shall NOT pay Central the fifteen percent (15 %) referenced above during this interim operating period. Notwithstanding the foregoing, the total amount paid to Central for adding such personnel (Le., pursuant to Exhibit "A ", Section 2.2(k), and not including additional personnel requested pursuant to Exhibit "A ", Section 2.1(b)) shall not exceed $22,366.23 for May 2013, $38,364.04 for June 2013, $46,838.04 for July 2013, $47,998 for August 2013, $41,931 for September 2013, $37,470 for October 2013, $35,856 for November 2013, $36,008 for December 2013, $35,894 for January 2014 and $32,710.40 for February 2014. Additional Enforcement: For additional enforcement, if requested pursuant to Exhibit "A ", Section 2.1(b), Central shall increase use of Its own enforcement personnel where possible. If, in Central and City's opinion, increased services are required and agreed to by City in writing, City shall pay to Central the same hourly rates for the Ambassador Level Employee, Supervisory Customer Service Level Employee and Shift Manager /Assistant Manager Level Employee as noted above. Additional expense items related to the City's request for additional enforcement services shall be subject to the same approval and procurement process as described in Exhibit "A ", Section 2.7.2. Central Parking System, Inc. Page B -1 Beginning May 1, 2014, such hourly rates for Central's employees noted above shall increase annually by the prior 1 year increase in CPI (Los Angeles- Riverside- Orange County All Urban Consumers) plus one percent (1 %) or by three percent (3 %), whichever is less. (b) City shall receive and keep all parking meter and Parking Lots revenue which shall be deposited daily (or other deposit schedule directed by City) by Central with the City pursuant to Section 2.1(a) of Exhibit "B" below. (c) For parking meter revenues only, by August 3150 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 years (July 15t through June 300) 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 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 and /or Parking Lots rates in its sole and absolute discretion. Central shall utilize the most current parking meter and Parking Lots 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: (a) Collecting and accounting for all revenues from the parking meters and Pay Stations. All monies collected from parking meters and Pay Stations will be deposited daily (or as otherwise directed by City), in accordance with approved guidelines established by the City, into a restricted account(s) authorized by the City. The restricted account(s) shall allow Central to make deposits, but only the City may withdrawal funds from the restricted account(s). Deposits shall be made to specific revenue accounts as established by the City in order to properly reflect all collections Central Parking System, Inc. Page B -2 areas, particularly tidelands. Central shall be given full access to view the activity in such bank accounts. The process for Parking Lots credit card and debit card transaction deposits shall remain the same as the on- street meter credit card and debit card transaction deposit process. Central shall utilize its own merchant services (with funds clearing into a bank account owned and maintained by Central) and shall wire cleared funds into City's restricted account(s) on a daily basis. (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 parking meters or Pay Stations. (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(s), 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 and Parking Lots revenue attributable to parking meters and Pay Stations within designated parking areas as determined by the City. (g) Accumulating data on the number of automobiles and visitors that enter the Corona del Mar State Beach on a monthly and annual basis, consistent with the Operating Agreement for the Corona del Mar State Beach by and between the State of California and the City, dated August 1, 1999. Central Parking System, Inc. Page B -3 AMENDMENT NO. ONE TO THE AMENDED AND RESTATED PROFESSIONAL SERVICES AGREEMENT WITH CENTRAL PARKING SYSTEM, INC. FOR PARKING METER SERVICES THIS AMENDMENT NO. ONE TO AMENDED AND RESTATED PROFESSIONAL SERVICES AGREEMENT FOR PARKING METER SERVICES ( "Amendment No. One ") is made and entered into as of this 23rd day of April, 2013 ( "Effective Date ") by and between the CITY OF NEWPORT BEACH, a California Municipal Corporation and charter city ( "City'), and CENTRAL PARKING SYSTEM, INC., a Tennessee corporation ( "Central "), whose address is 2401 21St Avenue South, Nashville, TN 37212 and is made with reference to the following: RECITALS A. On May 22, 2012, City and Central entered into an Amended and Restated Professional Services Agreement ( "Restated Agreement ") for parking meter services ( "Project "). B. City desires to enter into this Amendment No. One to reflect additional services not included in the Restated Agreement. C. City and Central mutually desire to amend the Restated Agreement, as provided below. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. SERVICES TO BE PERFORMED Exhibit "A" to the Restated Agreement shall be amended in its entirety and replaced with the Scope of Services, attached hereto and incorporated herein by reference ( "Services" or "Work"). The City may elect to delete certain Services within the Scope of Services at its sole discretion. 2. COMPENSATION TO CONSULTANT Exhibit `B" to the Restated Agreement shall be amended in its entirety and replaced with the Schedule of Billing Rates attached hereto as Exhibit B, and incorporated herein by reference. 3. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Restated Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] 9 IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE ABC. Harp City Attorney ATTEST: Date: By: Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, A Californi m ?mcipal corporation Date: v By: Keith D. Curry Mayor CENTRAL: CENTRAL P IRKING SYSTEM, INC., a Tennessee corp6fation gy: !/ Edward E. Sim Executive Vice President [END OF SIGNATURES] Attachments: Exhibit A — Scope of Services (including two attachments) Attachment 1: Lot Maps Attachment 2: Equipment Exhibit B — Schedule of Billing Rates Central Parking System, Inc. Page 2 19 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. Central shall also provide management of the parking facilities depicted on Attachment #1, which is incorporated herein by reference, ( "Parking Lots "), including but not limited to, parking enforcement within the Parking Lots, installation and maintenance of the pay stations located within the Parking Lots ( "Pay Stations "), collections from the Pay Stations, and customer service. In providing the Services, Central will be responsible for and focus on the following areas and goals: (a) Enforce parking regulations in compliance with Newport Beach Municipal Code ( "NBMC ") and /or City's resolutions; (b) Maximize revenues from parking meters and Parking Lots; (c) Increase the quality of parking services offered to the public; (d) Modernize parking meters, Pay Stations and support equipment; (e) Integrate the Pay Stations, parking meters and License Plate Recognition ( "LPR') technologies with City's other parking programs, including but not limited to, the acceptance of various parking permit programs; and (f) Streamline parking meters, Parking Lots and other 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) Providing additional parking enforcement pursuant to the NBMC as requested by the City in writing. However, such additional parking enforcement shall not include the removal or towing of any vehicles found parked in violation of the NBMC by Central. Central Parking System, Inc. Page 3 11 (c) Managing approximately two thousand six hundred and seventy -five (2,675) City - owned metered parking spaces ( "Original Spaces "). (d) Collecting all parking meter revenues, daily or as otherwise directed by the City. (e) 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. (f) 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 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. (g) 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. (h) 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. (i) Placing non - electric signage, striping, and related items to alert the public to the location and use of parking meters and spaces. Q) 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. City shall be responsible for the following: Towing all "scofflaw" vehicles pursuant to the NBMC and state law. Central Parking System, Inc. Page 4 12 2.2 Parking Lots Parking Enforcement Central shall be responsible for the following: (a) Enforcing parking regulations relating to Parking Lots, including, but not limited to, Pay Stations enforcement, red curb enforcement, loading and unloading zone enforcement. Enforcement activities may include electronic and paper ticketing. (b) Managing the Parking Lots on the days and hours designated by the City. (c) Collecting the Parking Lots revenues, daily or as otherwise directed by the City. (d) Installing and maintaining new Pay Stations and necessary support equipment, including but not limited to, License Plate Recognition Technology software and hardware ( "LPR ") and enforcement vehicles. Central shall provide City with a schedule of replacement for the Pay Stations. All Pay Stations shall have the capability of accepting credit card payments and pay -by -phone payments. All Pay Stations shall have Central's telephone number and the Pay Station's location posted in a conspicuous spot on the Pay Station. (e) Working with City on parking for special events, validation programs and integration with City's other parking programs, including but not limited to the acceptance of various parking permits. (f) Displaying non - electric signage and related items to alert public to the location and use of the Pay Stations, as needed. (g) Providing a personnel staffing plan, with assignment of duties for Parking Lots, that shall be mutually agreed upon by City and Central. The personnel staffing plan shall allocate adequate resources to ensure that all of the requirements of this Restated Agreement are met, including but not limited to Pay Station enforcement, citation issuance, customer service and beach information dissemination. (h) Using temporary signage and the appropriate staffing levels to: (1) provide for the safe and orderly ingress and egress of traffic at the Parking Lots; (2) maintain the safety of staff, a smooth traffic flow; and (3) minimize the traffic impacts on the streets adjacent to the Parking Lots that may result from queuing at the parking lot entrance. (i) Developing and executing, when necessary, procedures for quickly halting the flow of traffic into and out of the Parking Lots to allow public safety vehicles to enter and exit the Parking Lots during an emergency. (j) Displaying the necessary signage, cones and related items to direct traffic and /or alert the public when the Parking Lots are full. (k) If the Pay Stations in the Parking Lots are not installed and operable by May 13, 2013, unless another date is indicated in writing to Central by City, Central shall provide the staff required to manage the Parking Lots accordingly, i.e. — taking payments at the booth, until the Pay Stations are installed and operable. Central Parking System, Inc. Page 5 13 2.3 Dispute Resolution Program. 2.3.1 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. 2.3.2 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 review and hearing officers. (b) Retention and safekeeping of the records of the appeal hearings. 2.4 Office Administration. 2.4.1 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 and Parking Lots 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. Central Parking System, Inc. Page 6 14 2.4.2 City shall be responsible for the following: Maintaining an office open to the public for the acceptance of payments of parking fines payable to the City. 2.5 Personnel Administration. 2.5.1 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. (c) Ensuring that all enforcement, parking meter and Pay Stations maintenance, and revenue collecting personnel wear City - approved uniforms and be properly groomed while on duty. The uniform must display an approved insignia that clearly identifies the wearer as being responsible for enforcing parking violations, managing parking facilities or servicing parking meters and Pay Stations. The uniform will also have a clearly visible and readable name tag that must be wom 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 Central's receipt 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. Central Parking System, Inc. Page 7 15 2.6 Training and Customer Service. 2.6.1 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. (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 2.7 Installation and Maintenance. 2.7.1 Central shall be responsible for the following: (a) Installing and maintaining parking meters in accordance with the City's standards in the Original Spaces and installing and maintaining Pay Stations in accordance with the depictions attached as Attachment # 1. Central shall notify the City in writing within twenty -four (24) hours of any lost, stolen, unaccounted for or damaged Equipment (defined in Section 2.7.2 below). (b) Maintaining installed Pay Stations, 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, or repairing /replacing any defective Pay Station within two (2) business days. 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. Central Parking System, Inc. Page 8 IN (c) Implementing and following a regular preventive maintenance schedule for all Pay Stations and parking meters. (d) Keeping a log of all parking meter or Pay Station complaints /malfunctions. The log will note date, parking meter or Pay Station 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 or Pay Station, the nature of the problem and the date it was corrected. 2.7.2 Equipment (a) City has purchased the capital equipment, parking meters, meter poles, copy machines, vehicles, bicycles, accounts receivable processing systems, and other items purchased /financed by Central under the Original Agreement (collectively, "Equipment ") from Central, free from any interest charges, pre - payment penalties, mark -ups, or carrying charges and received clean title to the Equipment, free and clear of all liens, claims, or obligations of the third party leases with IPS, New Concepts Leasing, California Office System or any other entity or party. City has satisfied and shall 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. (b) Central shall purchase, on behalf and with the prior written consent of City, all supplies necessary for the operation of the Parking Lots. (c) City shall purchase or finance all other equipment on a going - forward basis, including the Pay Stations and LPR. When Central determines that any other equipment is necessary for the Services under this Restated Agreement, Central shall submit a written request for the other equipment no less than thirty (30) days in advance. City shall review the written request and may, in City's sole discretion, purchase outright or finance the requested other equipment, or reject Central's request for such other equipment. The parties have a goal of ninety -nine percent (99 %) operability for all equipment in use at the Original Spaces and at the Parking Lots. (d) In the event City requests Central to purchase any equipment to be installed in connection with this Restated Agreement, City shall reimburse Central for the total cost of the procurement and installation of such equipment within thirty (30) days after City's approval of Central's statement showing the description and cost of each item, which 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 or Parking Lot user. (e) An inventory of the Equipment purchased in the Restated Agreement and the new equipment purchased pursuant to this Amendment No. One is provided in Attachment 2. Central Parking System, Inc. Page 9 17 2.8 Safety. 2.8.1 Central shall be responsible for the following: 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. 2.9 Miscellaneous Services. 2.9.1 Central shall be responsible for the following: (a) Changing Central procedures as necessary to conform to revisions in state law, the NBMC and the City's resolutions, 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 and Pay Stations in a timely manner (as determined in Section 2.1(d) and 2.2(c) of this Exhibit "A "), depending on parking volumes. (e) Providing monthly reports detailing: 1. Revenues collected by parking zone; 2. Revenues collected by Parking Lot; 3. The number of parking citations issued by parking zone; 4. The number of parking citations issues by Parking Lot; 5. Brokenfrepaired parking meters; 6. Brokenfrepaired Pay Stations; 7. Customer complaints; and 8. Other reports as requested by City on management, operations, facility conditions and other issues as they arise. (f) Providing annual revenue and expenditure reports in a form to be provided by the City. (g) Remaining knowledgeable of emerging developments in the parking technology field and making recommendations to the City to increase operational efficiencies, maximize revenues and reduce costs. (h) Providing the following, as requested by the City: 1. Bank deposit slips and bank reconciliations; 2. Detailed cash receipts and disbursement records; 3. Traffic flow and Parking Lots utilization reports; and 4. Any and all reports generated from the automated parking system. Central Parking System, Inc. Page 10 18 2.10 Optional Services. 2.10.1 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) Enforce and manage the City's parking permit program. (b) Manage and process City's parking citation program. (c) Upon City's written request for any of the services referenced in subsections "a" through "b" 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. Attachments: (1) Lot Maps (2) Equipment Central Parking System, Inc. Page 11 m Attachment 1: Lot Maps Yellow shading indicates the area in which Pay Stations will be installed. 4'6141 41 1�1rw sswiva F— Ell; 0 SS SWVQp 0. Central Parking System, Inc. Page 12 20 sf 43. 6. SS SWVQp 0. Central Parking System, Inc. Page 12 20 Status Description Invoice PO Ref VIN If applicable Date Quantity Per Restated Agreement (May 2012) Meters Buyout IPS Meters IPS H -13266 Buyout 2012 05/31/2012 1,325 Buyout Batteries IPS? H -13266 Buyout 2012 05/3112012 1,325 Buyout Handhelds- AutoCites Duncan solutions INVC13001332 Buyout 2012 05/3112012 7 New Toyota Yaris -LPR1 1 Paystations Toyota Yaris -LPR2 1 Buyout Luke Pay Stations Digital Payment Technologies 145271 Buyout2012 05/31/2012 B Vehicles New Buyout Ford Focus BE Sedan 2011 -MGT New Concepts Leasing H- 13266 Buyout 2012 103588 05/31/2012 1 Buyout Ford Ranger Pickup 2011 - Maint New Concepts Leasing H- 13256 Buyout 2012 1 FTKRIAE4BPA17540 05/3112012 1 Buyout Ford E- 150 Cargo Van 2011- Collections New Concepts Leasing H- 13255 Buyout 2012 1FTNE1EW3BDA81453 05/31/2012 1 Signage TBD New Miscellaneous Office Startup Equipment TBD Buyout IMiscellaneous Office Equipment 05/31/2012 20 Buyout Isafe 05/31/2012 1 Buyout lCoin Sorter 05131/2012 1 Per Amendment No. One (April 2013) Paystations New Luke Pay Stations PO 34266 23 Vehicles New Toyota Yaris -LPR1 1 New Toyota Yaris -LPR2 1 Plate Recognition Infrastructure New LPR- Rig #1 1 New LPR- Rig #2 1 New Signage TBD New Loos TBD Central Parking System, Inc. Page 13 21 EXHIBIT "B" SCHEDULE OF BILLING RATES 1. Revenue Distribution. (a) Parking Meters: City shall pay Central seven hundred thousand dollars ($700,000) annually to provide the Services contemplated in this Restated Agreement for the Original Spaces. 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. Parking Lots: By the 15th of each month, City shall reconcile the previous month's Parking Lots revenues. In consideration of the services provided for the Parking Lots, City shall pay to Central Fifteen Percent (15 %) of Parking Lots revenues, net of credit card transaction fees, by the 30th of each month for the revenues collected in the previous month. Such Fifteen Percent (15 %) payment shall only take effect when the Pay Stations are installed and operating. If the Pay Stations in the Parking Lots are not installed and operating and Central is required to utilize additional personnel pursuant to Exhibit W', Section 2.2(k), City shall pay to Central: Ambassador Level Employee - $19 /hour Supervisory Customer Service Level Employee - $24.32 /hour Shift Manager / Assistant Manager Level Employee - $30.40 1hour City shall NOT pay Central the Fifteen Percent (15 %) referenced above during this interim operating period. Notwithstanding the foregoing, the total amount paid to Central for adding such personnel, i.e., pursuant to Exhibit "A ", Section 2.2(k), and not including additional personnel requested pursuant to Exhibit "A ", Section 2.1(b), shall not exceed $22,366.23 for May 2013, $38,364.04 for June 2013 and $46,838.04 for July 2013. Additional Enforcement: For additional enforcement, if requested pursuant to Exhibit "A ", Section 2.1(b), Central shall increase use of its own enforcement personnel where possible. If, in Central and City's opinion, increased services are required and agreed to by City in writing, City shall pay to Central the same hourly rates for the Ambassador Level Employee, Supervisory Customer Service Level Employee and Shift Manager /Assistant Manager Level Employee as noted above. Additional expense items related to the City's request for additional enforcement services shall be subject to the same approval and procurement process as described in Exhibit "A ", Section 2.7.2. Beginning May 1, 2014, such hourly rates for Central's employees noted above shall increase annually by the prior one year in CPI (Los Angeles- Riverside - Orange County Central Parking System, Inc. Page 14 22 All Urban Consumers) plus one percent (1 %) or by three percent (3 %), whichever is less. (b) City shall receive and keep all parking meter and Parking Lots revenue which shall be deposited daily (or other deposit schedule directed by City) by Central with the City pursuant to Section 2.1(a) of Exhibit 'B" below. (c) For parking meter revenues only (this provision excludes all Parking Lots revenues), 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 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 and /or Parking Lots rates in its sole and absolute discretion. Central shall utilize the most current parking meter and Parking Lots 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: (a) Collecting and accounting for all revenues from the parking meters and Pay Stations. All monies collected from parking meters and Pay Stations will be deposited daily (or as otherwise directed by City), in accordance with approved guidelines established by the City, into a restricted account(s) authorized by the City. The restricted account(s) shall allow Central to make deposits, but only the City may withdrawal funds from the restricted account(s). 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. The process for Parking Lots credit card and debit card Central Parking System, Inc. Page 15 23 transaction deposits shall remain the same as the on- street meter credit card and debit card transaction deposit process. Central shall utilize its own merchant services (with funds clearing into a bank account owned and maintained by Central) and shall wire cleared funds into City's restricted account(s) on a daily basis. (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 parking meters or Pay Stations. (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(s), 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 and Parking Lots revenue attributable to parking meters and Pay Stations within designated parking areas as determined by the City. (g) Accumulating data on the number of automobiles and visitors that enter the Corona del Mar State Beach on a monthly and annual basis, consistent with the Operating Agreement Corona del Mar State Beach by and between the State of California and the City, dated August 1, 1999. Central Parking System, Inc. Page 16 24