Adopting a Resolution authorizing a five-year extension of the existing contract with SP Plus LLC in the amount of $1,464,850, plus incentives, for the term January 1, 2027 through December 31, 2031.

This contract is for management and operations of the City's six parking ramps and five surface parking lots. The yearly management and operations rates using an annual adjustment of 3% are below:

2027: $275,912

2028: $284,189

2029: $292,714

2030: $301,495

2031: $310,540

In addition to the fixed annual fee, the contract has built in incentives based on key performance indicators with a maximum annual incentive of $30,750. The key performance indicators, measured through survey results and internal audits and reviews, are as follows:

Goal 1: Enhance customer service experience
Goal 2: Ensure customer's experience is easy, efficient, clean, safe and uninterrupted
Goal 3: Ensure maintenance and cleanliness compliance
Goal 4: Recommend and implement operational changes that improve the customer experience and maximize revenues or minimize expenses

The parking system operates as an enterprise fund requiring positive net revenues after all operating expenses are met. SP Plus has been the parking operator since January 2021 and has been a highly competent, collaborative partner with a shared vision to navigate challenges and drive mutual success.

During SP Plus's first five years, noticeable improvements to the parking systems include:

• Establishing a preventative maintenance program and completed many deferred maintenance tasks.
• Playing a key role in the installation and implementation of the new parking equipment and technology.
• Actively participating in monthly meetings to review financial performance, parking system performance, and recommending system improvements.

The renewal of this operations contract supports quality city services by delivering operational excellence which focuses on asset management, technology and payments, improving the customer experience and positive cash flow.

November 15, 2021: Council Meeting - Award of 2022-2026 Parking Management Services Contract

Management and operational expenses are paid from retained earnings in the Parking Enterprise Fund.

None at this time.