Republic Parking Gets Full Incentive

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The Ann Arbor Downtown Development Authority’s public parking system contractor has again this year been awarded the full $50,000 amount of a discretionary management incentive. The vote came at the DDA board’s March 5, 2014 meeting.

Republic Parking’s contract with the Ann Arbor DDA covers just actual costs, but also includes a $200,000 annual management fee. Of the $200,000 management fee, $50,000 is awarded to Republic on a discretionary basis. [.pdf of DDA staff memo on Republic Parking management incentive]

It was last year, at the board’s March 6, 2013 meeting, when the DDA board decided for the first time in five years to award the full $50,000 of the incentive. The year before, at its Feb. 1, 2012 meeting, the board determined to award $45,000 of the discretionary amount. That matched the same figure awarded in 2011, 2010 and 2009.

The direct costs for Republic Parking budgeted by the DDA for FY 2014 – the current fiscal year ending June 30 – are $6,569,316 out of about $19,348,016 in budgeted gross revenue for the parking system.

Part of the difference this year leading to the recommendation to award the full $50,000 was improvement in bi-monthly customer surveys over the year:

2013
5-Excellent 42.8%
4 31.6%
3 13.3%
2 3.3%
1-Poor 2.8%
Non-Responsive 6.2%

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The staff memo on the incentive notes that the DDA’s independent inspector’s cleanliness rates were 92.3% for the entire system, compared to 91.71% for last year.

The Dec. 31, 2013 accounts receivable balance for parking permit accounts was $22,920. That’s 4.4% of the average monthly billing, which is below the DDA’s target of 5%.

The memo also notes that the dead ticket average was 1.75% for the year, which is an increase from last year’s 1.01%. The target maximum for that statistic is 1.75%.

A staff memo accompanying the resolution awarding the $50,000 incentive cited additional factors:

  • Completion and opening of the First and Washington parking structure, including overseeing the installation of equipment, managing final construction-related maintenance, coordination of opening operations with the final construction in the garage.
  • Modernization of the parking equipment at two parking facilities.
  • Completion of a Library Lane parking structure office.
  • Implementation of reservation parking for Art Fair and the 1st NHL Winter Classic.
  • Outstanding success with the first time events of New Year’s Eve “Puck Drops Here” and NHL Winter Classic, despite the weather obstacles presented.
  • Maintaining of the parking facilities during the past extreme weather, which included removing large amounts of snow from the facilities and from parking meter areas in sub zero temperatures.

The Ann Arbor DDA manages the city’s public parking system under contract with the city of Ann Arbor. The contract calls for 17% of gross parking revenues to be paid to the city of Ann Arbor.

This brief was filed from the Ann Arbor DDA offices located at 150 S. Fifth Ave., Suite 301, where the DDA board holds its meetings. A more detailed report will follow: [link]