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RESOLUTION R-1314-77: A RESOLUTION OF THE COUNCIL OF THE CITY OF NORMAN, OKLAHOMA, APPROPRIATING $17,500 FROM THE CAMPUS CORNER PARKING REVENUE ACCOUNT FOR PAYMENT OF RECURRING MONTHLY FEES FOR NEW CAMPUS CORNER PARKING METERS.
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BACKGROUND: Parking meter technology has evolved significantly over the past few years. The previous parking meters in the Campus Corner area, which were originally installed in the 1970’s and upgraded in 2005, were antiquated and only allowed for payment using coins. Maintenance of these older meters was becoming increasingly difficult with the passage of time. To alleviate some of these concerns, the Campus Corner Merchants Association approached the City of Norman requesting more modern meters with additional payment options, such as payment by either credit card/debit card or payment by cell phone, and a revamping of the parking management business plan for the area increasing the hourly parking rate from 25¢ to $1.00.
The Council Community Planning and Transportation Committee discussed the matter on October 22, 2012. Staff presented two different alternatives for the new system. The first one involved the installation of thirteen multi-space parking meter stations similar to the ones recently installed in the Downtown Parking Lot. The second alternative, which was preferred by the Campus Corner Merchant Association, involved the installation of individual meters at each of the 159 spaces in the Campus Corner area.
Bid packets for the purchase of a Complete Revenue Control System for Campus Corner Public Parking were mailed on Monday, February 25, 2013. Bids were opened on Thursday, March 14, 2013. The complete revenue control system was bid to consist of either thirteen multi-space pay-by-space parking meter stations or 159 upgraded single space parking meters with vehicle parking space sensors for each on-street parking space.
Bids were received from three vendors. Only the bid from Duncan Solutions, Inc., (Milwaukee, WI) (Duncan) addressed both meter alternatives. A bid from IPS Group, Inc., (San Diego, CA) (IPS) addressed only the single space meters, and the bid from Cale America, Inc., (Tampa, FL) (Cale) addressed only the multi-space meters.
The Campus Corner merchants expressed interest in having a fully operational system by August 1, 2013, in time for the start of the fall semester at the University of Oklahoma. The IPS bid included the most aggressive schedule which fit better with the University class schedule. Given the lower capital cost and the more desirable schedule for implementation, the bid from IPS was recommended for award. Contract K-1213-186 was approved by City Council at its meeting on April 23, 2013. The parking meter system was fully installed and operational by August 1, 2013.
DISCUSSION: Following installation of the new parking meters, the City of Norman was invoiced for monthly fees associated with the operation of the system. These fees were anticipated when the system was developed and include credit card transaction fees, secure gateway/wireless data fees, monthly management system fees, and sensor-based data fees. Budgeted funds are not sufficient to pay the recurring monthly fees for the remainder of the fiscal year. When the FYE 2014 operating budget was developed, the on-going use of the parking meters and the associated fees were not known. Funds currently available will pay invoices for the months of October and November. At an assumed monthly cost of $2,500, a total of $17,500 will be required to supplement the currently available funds and pay the recurring monthly gateway/wireless and sensor data fees for the rest of the current fiscal year (December 2013 through June 2014). A future appropriation may be requested for the credit/debit card transaction processing fees, which are paid from the Finance Department’s Banking Services account.
The revenue generated from the first four months of Campus Corner parking meters is $86,511.74, or three times the previous revenue from the older meters. At the current rate, the City will generate $320,000 in net revenue in FYE 2014, after payment of all fees (compared to $71,205.84 for FYE 2013).
STAFF RECOMMENDATION: Staff recommends that Council authorize an appropriation form the Parking -Campus Corner Revenue account in the amount of $17,500 to pay seven months’ worth of recurring monthly fees for the Campus Corner parking meters. If approved, the following adjustment to the FYE 2014 budget will be made:
Losing Account: Parking Campus Corner Revenue Account (account 010-0000-366.15-53) - $17,500
Gaining Account: Parking Meter Services (account 010-5023-429.41-54) - $17,500