At its March 2, 2011 meeting, the Ann Arbor Downtown Development Authority approved payment of $45,000 as a discretionary component of a management incentive for Republic Parking. While the city of Ann Arbor contracts with the DDA to manage the public parking system, the DDA in turn contracts with Republic to handle day-to-day operations. The DDA’s contract with Republic covers Republic’s expenses – roughly $5.8 million annually – plus pays Republic a “management incentive” of up to $200,000 per year. Of that amount, $150,000 is paid in monthly installments as a part of the contract, with the remaining $50,000 left to the discretion of the DDA board.
In making a recommendation to pay Republic $45,000 out of the maximum $50,000, a memo from DDA deputy director Joe Morehouse points to: (1) parking customer survey results that show 6-7% responses in the lower two scale points on a 5-point scale, and over 55% in the top two scale points; (2) an operating surplus that exceeded budget by $243,438; (3) independent facility cleanliness audit ratings of 93.7% – a slight increase over last year’s average of 93.4%; and (4) a dead ticket average of 1.61%, which is within the target of 1.75%, but more than last year’s 0.65%.
Mayor John Hieftje cast a vote of dissent on the approval of the incentive, as he has in previous years, but offered no comment at the board table on the issue.
This brief was filed from the DDA boardroom located 150 S. Fifth Avenue, Suite 301. A more detailed report will follow.