RES 2014-1001 - Pilot program with PassportParking to test technologies in phone-enabled parking fee and citation collection management F°MAHA,N 44 a r ...
U� �, Public Works Department
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o��.. ~ Omaha,Nebraska 68183-0601
.00 (402)444-5220
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City of Omaha Robert G. Stubbe,P.E.
Jean Stothert,Mayor Public Works Director
Honorable President
and Members of the City Council,
Transmitted herewith is a Resolution approving the continuation of a pilot program with the
parking services vendor, PassportParking.
The Parking Division undertook this pilot to test emergent technologies in parking fee collection
and in collection management services. It was anticipated to last one year and cost
approximately $19,200. This cost would be based upon actual fees and citations collected by the
vendor, and paid from the revenues taken in through the Pilot. This Pilot provided the City no-
cost access to a number of hardware, software and vendor-supported service options, while
yielding the information needed for the development of quality Request for Proposals (RFP) for
vendor-supported enhancements to our parking management system.
In the first approximately seven months of the Pilot, the program has yielded efficiencies that
have exceeded expectations. The vendor has enabled much in-demand pay-by-phone options,
which has been seen as a definite value-added service to our downtown parking consumers. The
Pilot has also provided information services not previously available to the City for the collection
of backlogged parking citations. This has so far provided the City with both revenues and
administrative fees in excess of $20,000. In order to continue these valuable services to our
citizens and visitors, and to gather as much data as possible to complete the RFP process, the
Parking Division is seeking authorization to continue the Pilot Program and process the related
revenues and expenditures.
The Public Works Department requests your consideration and approval of the attached
Resolution.
Respectfully submitted, Referred to City Council for Consideration:
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Rob G. Stubbe, P.E. Dat Mayor's Office Date
Public Works Director
Approved as to Funding:a__, Approved:
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Inter-Office Communication
To: Robert G. Stubbe, Director Public Works
From: Kenneth D. Smith, City Parking Manager
Date: July 22, 2014
Subject: Continuation of pilot program with Passport Parking
Last January, the Parking Division undertook a pilot program with Passport Parking to
test new technology in pay-by-phone at the meter and a citation management system
which included an online citation payment option. Additional information became
apparent a few months into the program which enabled the City to collect on backlogged
citations known as "legacy citations". The terms of service for the pilot, and the addition
of the citation collection option are outlined in the attached Term Sheet and Addendum 1.
The pilot is intended to conclude after a period of 1 year and during that time the City can
take advantage of the technology at no cost, provide necessary data for the development
of a Request for Proposals, and provide a high-demand, user-friendly method of payment
for the consumers of downtown on-street parking. With the addition of the citation
collection services, the Division can assess different methodologies of collection while
working to whittle down the backlog of outstanding parking citations.
Over the last seven months, the pilot has been extremely successful in collecting unpaid
citations and reducing the backlog of legacy citations. Incoming revenues from the
backlog has resulted in administrative fees exceeding $20,000 to Passport Parking. The
Division believes that continuation of this pilot program is advantageous to the City, as it
allows access to the latest technology, free equipment, and access to all 50-state
Department of Motor Vehicles registries through a company which is solely focused on
this function. I would respectfully request your support in referring the continuation of
this service and authorization of the revenues and expenditures associated for City
Council approval for the duration of the Pilot. This would give us the time and data
necessary for the development of a quality RFP while providing a large benefit to our
taxpayers and parking consumers.
Any further questions related to the additional purchase can be directed to me at 444-
1780.
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Term Sheet - City of Omaha, Nebraska
August 2013
This term sheet summarizes the principal terms with respect to a service agreement between Passport
Parking, LLC ("PassportParking") and the City of Omaha, Nebraska ("Client"). No other legally binding
obligations will be created, implied, or inferred on other properties outside the pilot until a services
document is executed and delivered by all parties. PassportParking and the Client are discussing the
following terms under which Passport Parking would provide services for the Client's parking locations:
Premises Approximately 4,000 parking meters.
Term Passport services are on a month-to-month basis.
PassportParking's Obligations Mobile Pay: Provide pay-by-phone options and customer service.
Pay-by phone includes the following applications:
1. Mobile application
2. Pay-by-voice
3. Pay-by-text
4. Electronic validation/discounts
Customer Service: PassportParking will field all customer calls related
to mobile payment.
Equipment: Provide related PassportParking systems, handheld and
signage/stickers.
Client Obligations Assistance with the installation of all signage / stickers on the
premises.
Client warrants and covenants that it has obtained or will obtain all
licenses and permits necessary for the operation of the Premises as a
parking facility (excepting such licenses, police permits and other
applicable governmental approvals required for PassportParking to
perform the services required of it under this Agreement).
Pricing No convenience fee will be assessed for each transaction (as long as
being used with citation management)
Private label (waived)
Zone setup fee (waived)
Handheld fee (waived)
Intellectual Property PassportParking grants a non-assignable, non-exclusive license to
intellectual property (trade names, trademarks, copyrights and
patents) associated with the operation of the Premises.
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Kenneth Smith
City Parking Manager
City of Omaha, Nebraska
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Bob Youakim
Managing Partner
Passport Parking, LLC
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Addendum I
The details for this proposal are based on two options. The annual percentage of citation revenue
collected or an administrative fee that gets added to the citation when paid.The fee schedule assumes a
minimum of 50,000 citations are issued per year.
Admin Fee
Percentage of annual citation revenue recognized per year: N/A
Administrative fee added per ticket(paid when citation is resolved) $2.00
10 new handhelds/printers $0.00
Data communication and other on-going fees: $0.00
Collection agency services for past due parking tickets: Escalated fee(currently
at$20.00)
Cost per rugged handheld replacement: $1,500.00
Cost per rugged printer replacement: $1,000.00
Unless purchased outright,the leasing of the handheld units and printers are incorporated in both
pricing options aforementioned above. Upon termination of the contract,the handheld units and
printers shall be returned back to PassportParking.
Note that the Client agrees that PassportParking has the full rights to act on their behalf in regards to
facilitating a collection process on their past due tickets.
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Mobile Pay parking is offered at no initial cost.This virtual (SaaS) service is hosted. 24/7 access to online
reports and real time enforcement database are included.
Custom City of Omaha mobile pay app $0.00
Convenience fee per transaction: $0.00
Custom Signage and stickers for the—4,000 metered spaces: $15,000
Customer services calls in English and Spanish: $0.00
Cost per signage replacement $50.00
Cost per sticker replacement $3.00
Merchant processing: The City's current merchant account can used to process the
transactions
Note this information presented is based on information provided by the Client.Any material
differences gathered after the first year of operations will trigger a review of the contract pricing
structure.
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Quantity/Hours Amount
Design and space provisioning for stickers and signage @150/hr 1 week $6,000
Full color, 3M vinyl and laminate stickers @ $1.80 each 4,000 $7,200
12" x 18" aluminum standard sign blank @ $30.00 each 200 $6,000
Shipping 1 Included
Total $19,200
Capped price at$15,000 due to bundling of services
2
C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebraska
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
WHEREAS, the Public Works Department's Parking Division undertook a pilotprogram
with PassportParking to test emergent technologies in regard to parking fee ands 1tation
collection options; and, "
WHEREAS, this pilot program has provided a number of phone-enabled payment
options, providing a valuable service to parking consumers; and,
WHEREAS, the performance of these services, as detailed in the attached Terms Sheet
and Amendment 1, which by this reference become a part hereof, has exceeded efficiency
expectations, yielding critical information to the Parking Division for the preparation of a request
for proposals so that a vendor may be selected to provide these services on an ongoing basis past
the one-year Pilot Program; and,
WHEREAS, in light of the effectiveness of this Program, and with the understanding that
the administrative fees agreed to will surpass the originally anticipated cost of $19,200, the
Parking Division recommends continuation of the Pilot through the original scheduled
timeframe, with all administrative fee payments being based upon and garnered from the actual
collections of PassportParking, according to the original terms and fee schedule, which will be
processed through the Parking Revenue Fund 21116, Parking Meters Organization 116231.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF OMAHA:
THAT, as recommended by the Mayor, the Pilot Program with PassportParking to test
emergent technologies in phone-enabled parking fee and citation collection management services
be continued through the originally planned one-year duration; and,
THAT,the Finance Department is authorized to process all revenue received to the City
and payment of administrative fees to PassportParking,being based upon and garnered from the
actual collections of PassportParking, now being anticipated in an amount exceeding $20,000,
through the Parking Revenue Fund 21116, Parking Meters Organization 116231.
1847htp APPROVED AS TO FORM:
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By /( ... CITY ATTORNEY DATE
Councilmember
Adopted MO 1 2 2014 7`--
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C'ty Clerk 0101/
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Mayor
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Resolution by
Res. that, as recommended by the Mayor, the
Pilot Program with PassportParking to test
emergent technologies in phone-enabled
parking fee and citation collection
management services be continued through x .
the originally planned one-year duration, and
that the Finance Department is authorized to
process all revenue received to the City and
payment of administrative fees to
PassportParking, being based upon and
garnered from the actual collections of
PassportParking, now being anticipated in an
amount exceeding $20,000, through the
Parking Revenue Fund 21116, Parking Meters
Organization 116231.
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Presented to City Council
AUG 1 2 2014
Adopter 7-c
euoter Brown
City Clerk