good evening i'd like to welcome you to
a work session of the long beach city
council
um a work session is open to the public
and it's where you can watch the kent
city council conduct city business
tonight's work session is a continuation
of discussions on a proposal by the city
staff to install parking meters in the
central business district
with that i will hand it over to
mr mcnally
thank you council president mcginnis
um as you noted tonight's meeting is on
parking meters for the central business
district or the staff's proposal for
parking meters for the central business
district
specifically the new element that we're
going to fold in tonight
uh are the the the revenues and expenses
associated with it so
we fully understand that this is a hot
button issue
with a significant amount of public uh
interest so
what what i wanted to do in queueing up
tonight's presentation is to give a
review of the process where we've come
from
and what everybody can expect from the
process moving forward council public
included uh i would note that we have
our parking consultant jerry gioza
from level g parking on with us tonight
he will be giving the bulk of the
presentation before we open it up to
questions from the council we also have
sean redd and ed kinkade
from flo bird who are the proposed
potential vendor that we have engaged
with and begun discussions with
and we have both inner resnick our city
controller and ron walsh
uh and dave frazier ron walsh our police
commissioner and dave frazier our city
clerk who have been part of the internal
team deliberating um and trying to bring
this and of course
uh chuck geiger from our corporation
council's office um all of whom are
resources to help answer any questions
um that the council may have
um so
in terms of background this
administration
came into the city two years ago and
very quickly uncovered
essentially dire finances
that was structurally imbalanced annual
budgets
and staring down the barrel of close to
half a billion dollars
uh in debt and long-term liabilities
uh staff were quickly charged with
trying to find
alternative revenue streams beyond those
that would just
tax the residents through property taxes
out of existence sorry yes the message
from uh the city manager on my iphone
that she's having trouble logging in so
dave if you can address that please
okay
thank you commissioner
um
so so really the charge was making sure
that we would not this you know
th this long-term debt and the
structural imbalances which were
obviously no fault of the residence
we did not want to overly burden the
residents to make up those shortfalls
and correct the issues of the past
um by just laying them on property tax
revenue so the idea is what other kind
of revenue streams can you come up with
that visitors to long beach would help
us to be able to shoulder
the council at that time two years ago
noted that parking meters could be one
such revenue stream
previous administrations going back
really well more than a decade at this
stage of the game had explored parking
meters as a revenue stream
but it never really mustered the
political courage to get it to the to
the finish line they had looked at
parking solutions for the west end
uh
parking meters for the central business
district they actually went out to bid
for those meters it went before the
council and i want to say it's 2009
but they only ended up following through
with parking meters for the long island
railroad parking garage
so when we came in two years ago we
re-engaged with the consultant about a
year and a half ago
and staff have been working with the
consultant for the better part of the
past year to devise a plan that we think
would work that would benefit both the
business district and the city and our
residents in terms of revenue and
economic development
so at that i just
want to get on the soap box real quick
to to to let it be known or at least the
belief and i think studies bear it out
is
free parking
is not
free
the taxpayers are bearing the costs for
street sweeping pavement replacing
street lighting
what parking meters hope to do are turn
those expenses around to something that
is shared by
all 35 000 residents to the actual users
of the central business district
um
in addition to that
and probably more important than
anything in terms of revenue to the city
this is when i when i mention economic
development
having parking spaces turn over
in front of our local commercial
businesses on park avenue
is
immeasurably important though those
available spaces
depending on you know how thriving of a
business district you have represent
anywhere between twenty thousand and a
hundred thousand dollars a year to those
shopkeeps provided that the spots turn
over i think all of us understand right
now what's happening is
people are parking in a spot quite often
it's either a shopkeep or an employee
and those spots never open up
i did at the last meeting and i'll do it
again i'll use gino's as an example i
can't tell you how many times and i know
this is an example that's shared by
most people in town
you want to grab a slice of gino's you
drive down park avenue there's no spots
in front of it you loop the block once
you might loop it a second time
and then you just give up because there
is not a convenient parking space there
the idea behind a parking management
system or a parking menu system is to
produce that turnover to benefit the
businesses in the central business
district
you look at rockville center patchogue
any thriving downtown on long island has
a parking management or parking
management or parking meter system
so
in some that's those are the rationales
for why we are
moving forward or why we are proposing
this solution
let me just talk a little bit about
process now for for how this goes
forward
as city council president mcginnis noted
this is the second public working
session
um on this proposal from staff the first
one was on january 20th
the second one is tonight
um
when this administration
came into existence two years ago
they decided they wanted to take
a attack that was more transparent
meetings like this meetings like the one
that happened on january 20th
where the council was informed about
what staff were considering and they
went to go solicit feedback those
meetings were always done behind closed
doors
if if if this administration followed
the tact of previous administrations the
public would not be aware of this
proposal at all but they chose the tax
and the majority of the council um here
representative and i'm sure most of the
council or all of the council are in
agreement
they chose the tact of wanting to be
more transparent
um
that is a great ideal it is the best way
to do public business it's it's a matter
of open meeting laws
but it does come with its downsides
because
now information is out there that is not
ready for prime time necessarily
these are discussions between staff and
council
um so all of this is not finalized yet
um and it and it's not it's not what a
final solutionary final proposal is as
would be presented to the council at a
regular meeting
case in point of one of the downsides is
we've had a local organization take it
upon themselves to put out a public
survey
asking for
input
and reactions from the public
on the proposal that is fully their
right we have no problem with it
but
the the the city was never consulted
on that survey we were never given the
heads up on that survey and we never had
a chance to review that survey which
then means that unfortunately some
misinformation got put out um
the two main parts of misinformation
were
there there's never been a proposal for
continuing to put
in the future there is no plan for
parking meters moving east or west
that was included in a queue up and an
introduction to that survey
that's not information that's ever been
discussed among staff yes
the entire city needs a comprehensive
parking management plan but parking
meters aren't going to work throughout
the city
they make sense we think on a staff
level in the central business district
but in and of themselves they are not
the solution to most of the other
parking challenges throughout the city
um the other thing that happened with
that survey is
there was a fee schedule that was taken
from the request for proposal that we
put out
that as talks have progressed among
staff and our vendor or potential vendor
and our parking consultant is no longer
viable and is no longer under
consideration
so the entire preamble for the survey
the thing that was put into people's
minds as they thought about parking
meters
was either outdated information that's
no longer viable or factually incorrect
um
and it's just it's just one of the
downfalls of doing the right thing and
having meetings like this
um
so the purpose of this working session
and the purpose of doing working
sessions in general
is really for staff
to present to council
information that we have ideas that we
have for moving forward and then for
council
to give us their ideas their direction
how to tweak it how to make it more
palatable and how to make it um
something that the council can get on
board with
that's the purpose of tonight
if we do move forward from tonight
this would go to a regular council
meeting where obviously public input
would be sought and welcomed
that particular next step in this
process should it move forward
would be an agenda item in a future
council meeting to authorize the city
manager to enter into negotiations and a
contract with the potential vendor in
this case flo bird
even
after that meeting where public input
was solicited
and considered and potentially amended
again a plan for
parking meters in the central business
district is still fluid it's still not
set in stone there's still plenty of
opportunity to massage it and tweak it
to get residential input and then even
beyond that
in order to allow
parking meters you need to amend the
code
in order
to
create a parking district
that would be involve public hearings
input again opportunities to tweak and
change so
although we have a relatively aggressive
timeline for wanting to implement this
um this is really just the beginning of
the formal process under past
administrations nobody in the public
would have even seen this
um but because this administration has
chosen to be more transparent it's out
there in the public
um and there will be essentially what
i'm saying is i am assuring all of you
and the public that there is going to be
ample opportunity
uh for for our residents and our
businesses to weigh in on this plan to
help craft it and form it and amend it
um so that we can make sure that this is
something that works for everybody
so
with all of that said
i'm now going to introduce um or hand it
over to our our parking consultant uh
jerry gioza from level g parking he's
going to
walk you through the plan this was done
at the last meeting he's going to make
it a little bit briefer this go around
um and then talk to you about
uh what the fiscal impacts um and fiscal
projections are
uh for what is currently on the table
and being proposed and with that i will
lay quiet after that we'll obviously
open it up to questions from the council
thank you john
um before i start to share my screen i
just want to
touch on a very important point that
john brought up
and that's
about what we're about to embark on
is a parking management plan and it's
all about parking management and i just
want to talk about
two similar situations that have
happened over the past decade on long
island
that are very comparable to what we're
facing here
uh one was in patchogue and one was in
bayshore
uh both of those downtown communities
neither had parking meters
and both were were plagued by
by issues of
parking on main street not being able to
find a spot double parking
congestion circling for spots
does it sound familiar
well both patchogue and
bayshore implemented parking management
plans which included meters
and parking fees to park at those most
coveted on-street spaces
um
patrols was implemented i think about
six or seven years ago
bay shore about three years ago
both downtowns have um have continued to
flourish
um there has been no uh there has been
no
uh you know downturn in terms of the
economic activity in fact the reverse is
true there's been a
an improvement and uh
increase in investment activity in in
both downtowns
um but the result has been
those meters did change
unhealthy parking patterns into healthy
parking patterns
um the double parkers
the
the employees the you know the folks
that were uh that really wanted to find
a spot can now find a spot there are
open spots there's a heck of a lot less
double parking
and a healthy
parking
patterns have emerged in both
communities
and i was involved in
both of those parking management plans
and i expect that the same results will
occur
in in downtown long beach as well
so with that i'm gonna i'm gonna share
my screen here
and uh get rolling with the uh with the
presentation
and
as john said i'm going to try to roll
through the first part
um
rather efficiently because we've all
seen this before
uh and then the last
eight slides or so
are dealing with
with our methodology
in terms of uh developing
uh revenue projections and and what we
think the
net outcomes are going to be for the
city
um on an annual basis and over a 10-year
period
so the goals and objectives again to
promote parking turnover healthy parking
patterns
as a result of that
a more a more customer friendly parking
environment where folks can find a spot
to go in and get a slice of pizza or
shop at one of their local shops
to encourage economic development
and provide a funding source to maintain
improve and beautify
and expand the system
uh in patchogue
after the first year of parking revenues
the uh the administration there had an
eye on a property next to
one of their municipal lots
they use the parking revenues to
purchase that property and expand the
capacity of that lot by 40 spots
so
so the revenue
is you know can be put back into the
system
to
again
improve parking improve the parking
situation
so a little bit of a parking meter
history there were meters in in downtown
uh long beach in the 50s 60s and 70s
i believe they were removed in the 70s
over
uh some kind of a
a meter scandal i think someone
was um
was stealing uh some of the you know
quarters from the meters and um and it
was uh
from my understanding and overreaction
at that time to take them out rather
than to deal with the fallout
um in 2004 meters were installed at the
train station
the parking meters were
proposed in the west end in 2008 that
never went forward
as john mentioned there was an rfp in
2011
to install 33 meter meters in the cbd
which
also did not go forward
and
the train station parking meters were
upgraded in 2012.
the current proposal is to institute a
parking management plan
in the central business district between
lafayette and monroe
promote
parking technology today's parking
technology is very app driven so we'd
like to promote parking app use as
opposed to
to using the kiosks but kiosks will
still be available
and
solving the employee parking is also an
important part of a fair parking
management plan we have to give
employees
fair and convenient zones where they can
park as well
so employee parking zones and discounted
parking
for city residents are also part of this
program
here's the limits of the uh the proposed
uh parking management area as you can
see it's centered on city hall
uh and going uh three blocks west to
lafayette three blocks east down to
monroe
centered on
park avenue
so the parking spot space
classifications we have transient
parking spots which are paid parking on
a first come first serve basis
we have permit parking spaces which will
be designated
and or available for discount for uh
downtown employees and commuters
free parking there's going to be free
parking for and handicapped stalls as
well as short-term
uh 10-minute stalls in and out spaces
near the post office city hall
and train stations
transient parking in the current model
will be
paid parking in effect all days between
9 00 a.m and 11 p.m
uh the time limits would be in effect
between nine and five after five pm
time limits would fall off this would
allow
folks going to restaurants and events
and so forth to
park beyond the posted time limit of for
example two hours
the system would be paid by plate
using the parking app
or you could use one of 36 meters pay by
plate is the preferred operation now
where a partner would enter their
license plate number
to begin a transaction
that also makes enforcement more
efficient as now license plate readers
can
um you know can track whether uh whether
a partner has paid for parking or not
again the city discount um
we're proposing
would be that if the city res if the
city resident registers in the database
uh their plate will be
posted on the list of uh of uh eligible
residents
and when that eligible resident
enters their parking space number at the
kiosk or on the app
the kiosk or app will automatically
apply a 50 of 50 discount
to those registered
residents
just by way of comparison some transient
fees at shore communities
um are currently running about three
dollars an hour
um in point pleasant seaside heights
ocean beach and rehoboth beach
uh permit parking
the um
the rules here we're looking at uh that
would be in effect
uh all days between nine and eleven
again
and the permits will be digital in
nature just like the transient
transactions will be license plate based
if i purchase an employee permit or a
commuter permit
now my license plate will take the place
of a sticker my license plate will be in
my permit
so the the inventory within that
zone that that we identified earlier
between
um
between lafayette and monroe
uh contains uh 1350 spaces
so those 1350 spaces are what we based
our
evaluations and analyses upon and this
is the breakdown we're looking at
the majority of those spaces being
e-permits and daily parking close to 500
and then we have various
limited spaces two hour limit four hour
limit one hour limit depending on the
area of the central business district
that they're serving
enforcement becomes a key element
you know really enforcement is an
important component
of any successful parking management
system
and this is so that
and this is not
to uh to generate revenue this is to
ensure compliance with the program
we want folks to go out purchase their
permits we want folks
to get the app and
and pay as they go along uh if
if a system is not properly enforced
folks will click quickly learn that they
can get away without putting money in
the meter and
the system becomes abused
so
uh with the license plate readers that
we're proposing
uh
enforcement becomes very
very efficient
and this particular
program
includes 10 vehicle mounted uh license
plate reader bundles and 40 handheld
units
and these uh
and these enforcement um
units
will not be limited to just the parking
program they will be able to enforce
other parking regulations throughout the
city so if there's a time limit if there
are time limited spaces in for example
the west end or broadway or other areas
these units can be used to enforce those
regulations as well
in one
consolidated system so now we're
becoming more efficient
as a program as well
in terms of operation and maintenance
the current structure that we're
envisioning with the vendor is that the
vendor will operate and maintain the
entire system for a period of five years
the city will be responsible for
conducting parking enforcement
and we're assuming for in in our
financial models we're assuming four new
full-time parking enforcement officer
positions
to uh
to administer this program the
enforcement functions of this program
and that's so we're not drawing
um
we're not drawing
folks from other parts of
of the parking depart of the uh police
department yeah and these are those are
what we commonly know as special police
officers for the specials correct
thank you john
so what are we buying in this program
what does the capital program include
well it's a it's a robust system
it's a sophisticated system
it's it's a system that
in a way we're fortunate because
we have kind of a blank slate to work
with and as a result we're not trying to
um you know retrofit certain portions of
this
uh we have we have one of the you know
one of the country's top vendors in
these systems
uh on board with us
and they are able to
and they have proven
uh in other
areas and other uh communities where
they have pulled these systems together
and you'll see it's quite uh it's quite
comprehensive 36
multi-space
meter kiosks
10 lpr bundles that'll be mounted on uh
the police vehicles
uh again inside each vehicle
a panasonic toughbook and ticket riders
two new ford interceptor vehicles to um
to add to the fleet
40 handheld ticket riders
perimeter eagle egress program with the
license plate readers
will be finalized right now it's only
partially partially implemented
that would be
we would deny additional lanes
to finalize that program so nine
additional perimeter fixed lpr egress
a civil package including signage and
footings
a digital parking permit system
where we will be able to uh administer
all the permits
in a uh in a dashboard situation a
hosted situation this would not be
hosted by
by the city on sit on servers owned by
the city this would be all be
cloud-based hosted by the vendor
pay-by-app citation management after a
ticket is written it will become part of
the system it will be
downloaded and tracked
on a thorough basis
and we could do searches of
plates and
and track every citation that is written
through the courts there's an appeals
process as well
uh where where folks will be able to
appeal their citations online if they so
desired
fine collection services for for uh for
citations that that go unpaid the vendor
would also be providing that
all the merchant processing the credit
card fees
a 24
7 call center
and that's for customers who are having
difficulty with the meters or with the
app they can call at any time
and that's also provided in this package
um the 24 7 call center would also apply
to the town
if i'm sorry to the city if the city
were having difficulties with the
software or with um
you know with the back office function
or the dashboard
they would be able to call uh this this
you know a special call center as well
all this would be tied together all the
hardware software and communications are
supplied as part of this package
the back office the dashboard
where all this can be monitored by
um by city personnel
with permissions so
if you want certain uh personnel to only
have access to certain portions of
of the data that's collected and there's
a lot of data here that's going to be
that's going to be collected
we can do that through permissions
and finally a turnkey delivery of the
entire system fully integrated tested
and operational so
so you can see where
you know
starting kind of from scratch is is
going to give us an advantage here that
the vendor will be able to pull all this
together without having existing
components and parts to you know to play
with or try to integrate um into some
kind of clunky integration this is this
is going to be uh kind of a fully
functioning
integrated system and um and that's what
the capital program includes
so the contract structure
we're looking at two structures right
now we've run numbers
for a structure which is vendor financed
with a revenue share
or city finance with uh with new debt
so um
of course the vendor finance the vendor
would um you know would install the
entire system and would be paid back
over time from the revenues generated by
the system
the city finance system would would the
city would have to be issuing new debt
and would purchase the system outright
at the onset
but then would be responsible for
the operation and maintenance of the
system
from day one
so implementation um you know we we
still need to finalize negotiations and
develop a contract with with our vendor
as john mentioned we'll need enabling
legislation and ordinances
uh marketing education public and public
awareness in terms of the system what it
means how it works what the options are
for uh for payment systems for the app
for businesses to participate
in terms of uh validations and so forth
um of course we would have to install
integrate and test all these systems
uh and
you know we're hoping for a go live date
in the uh summer
uh this summer
uh we do have a memorial day we did have
a memorial day target
which um you know which is i guess still
on the table but which we feel
of the distance we still need to travel
is is is a fairly aggressive target
so now we're going to get into the
financial uh projections
and i'm gonna start off with uh with
with the the foundation of how
the financial projections were developed
and this was done from counts and
back when we were engaged in 2018
we conducted
accounts
in the central business district in the
350 spaces
uh between 9 00 a.m and 11 p.m the
county actually extended further they
started at at eight and went to midnight
but because the nine to 11
period is the is the
revenue generating period that we're
looking at uh that's what this graph is
representing
so at 9 00 am what this is showing is
that on tuesday october 23 2018
there were 900 cars parked in those 1350
spaces
as the day progressed
you could see the number of cars started
to pick up
until it hit a peak of 1100
um
here and the tuesday is the blue line so
1100
uh peak at 1 pm
and then it started to drop down
throughout the day
until at 11 pm there were 410
now on a friday friday has a different
pattern
friday is the old double hump camel here
after five o'clock
folks go home from work
the downtown gets a second life
restaurants
uh come alive and folks start coming
into town so you could see that the
friday curve is uh is
is uh definitely different from the
tuesday curve
so you can see on friday we hit a peak
of here uh 1220 at 1 pm
and then we had a second secondary peak
here in the pm period
of another of about a thousand cars
and in terms of using this volume
to project revenue
uh every every hour by hour and
you know we are gauging
parking on an hourly basis so you look
at a parking rate of one dollar an hour
or two dollars an hour
basically the area under these curves is
the revenue
so um so taking these
uh utilization hours or paid hours
and then bringing them into our
financial models
using different parking rates
gives us our parking projections after
some adjustments are made and i'll
discuss that in a little bit
but i want to call your attention to
these utilization hours here shaded in
yellow
on the tuesday
we had 12 985
and on the friday the total the total
utilization hours
was 14 7 15 and those are basically just
a summation
of the hourly totals on each hour of the
day
so now we go to our first
financial projection
and we're looking here at a
seasonal rate of two dollars an hour
and then rates in the shoulder season
and off season of one dollar an hour now
the the the hour the peak season
is estimated to be
basically memorial day to labor day so
so june july and august those three
months
the parking rate in the cbd would be two
dollars an hour
in all other
months
it would be one dollar an hour
and long beach residents
in this model are given a 50 percent
discount so during peak season
uh for those three months the residents
would be paying a dollar an hour and in
the shoulder season and off season
50 cents an hour
so now you can see highlighted in yellow
here are we've imported our utilization
hours
and because those counts were done in
october that's a shoulder season
so our first one was a tuesday count
so because each day of the week has a
different
pattern for parking
we broke out for each of the three
seasons
monday through thursday
friday and saturday and a sunday each
has its own
kind of unique parking pattern
so in the shoulder seasons there's a
total of 105 days out of 365
and
we believe that the average utilization
is going to be about 1295
um
utilization hours per day
on those 105 days
and then if we use we're in the shoulder
season at a dollar an hour
um multiplied by the number of days 105
that would yield about a million three
in revenue for that
for that year
uh in the
in the
friday and saturday
it was 1475
that calculation yields a different
number
now in the peak season
we're assuming that um
that the
that
peak season utilization is 15 higher
than the shoulder seasons
so these are adjusted entries here but
all based on the on on the base counts
uh done in october
so these numbers are generally 15
percent higher
than the october counts and those
numbers are indicated here
for the uh for the 52
weekdays the 26
friday and saturdays and the 13 sundays
in the peak season
and in the off season at a dollar an
hour we're assuming that these
um at these revenues are generally uh 25
lower than the shoulder seasons and
that's what's reflected here and these
are the expected outcomes in terms of
revenue
so you add all that up it comes to 5.9
million
however
because the counts were
globally done
including all cars parked in all spots
we have to make some adjustments
so the first adjustment is to account
for the permit parkers parked in these
spots mostly the employee permits
so we're assuming that about 32 of those
cars
that were counted are going to be
employee cars who are purchasing permits
to park rather than
putting money in the meters or the
kiosks
so we have to make an adjustment we have
to pull out
revenue works out to be about 1.9
in this model
um
from that revenue stream
to account for the employee cars
and also because the long beach
residents are not will not be paying the
full freight they'll be only paying 50
percent
we have to make another adjustment so
we're assuming that 27 and a half
percent of those
cars counted in this model are going to
be long beach resident cars
so we make another adjustment
so the final uh
estimated revenue
from this model is about 3.48 million
per year
that's at two dollars and one dollar
for the uh for the for the rates
we then went and did this same exercise
at a second rate structure
of three dollars an hour
um and a dollar fifty and this is the
model that is
um is more consistent with
uh with the shore communities that um
that i indicated earlier so this is kind
of in the middle so we did we did one
below
the shore community models one at shore
community models
and then the next one is one is a dollar
above the short communities
so uh so if we if we went to the three
dollars in the offseason and dollar
fifth i'm sorry three dollars in peak
season and a dollar fifty in the off
season
using the same utilization
uh our annual revenue would
increase to about 5.2 million
and going to uh
to the most aggressive model at four
dollars an hour
and the shoulder season and off seasons
at two dollars an hour
uh the annual revenue would be close to
seven million a year
so then what we did is we took these
projections and we pro format them out
over a 10 year period
now 10 year period was selected because
we believe that that's the life
the useful life of the meters
and of the technology as well
uh that will be that we'd be purchasing
in this initial package
so we're confident that that this
capital program is going to take us
through a 10-year period
but at that at that time we're probably
going to have to retool
at least
you know part of the system
so so we thought that the 10-year period
would be a good a good comparison period
so here's the here's just an example i'm
not going to go through every number
here
but i just want to give you an example
of the pro formas
and how they were developed
the top part we have all the parameters
that were used the hours of operation
uh the rates
you know this is this particular one is
at four dollars an hour
uh in the peak season and two dollars an
hour in the off peak there's a there's a
daily parking rate
of 25 a day
there's uh the long beach
resident vehicle registration fees are
put in the employee parking permits
the overtime parking violations
and and all the revenue items are listed
up here
in the in the top five lines
then in the revenue share model
the vendor has has proposed a system
where
where the first
3.8 million dollars that is collected
in a certain fashion
will go to the vendor for him for him to
recapture
all of the capital costs
and operating expenses and developmental
expenses that they outlaid
to get our system up and running
so
these these numbers in the gray boxes
here
are numbers that are basically repaying
the vendor
for
for financing our system
and in this model for the um
for at the four dollars an hour at the
most aggressive rate
the vendor would be paid back that first
3.8 million
and i've estimated to be about 13 to 14
months
after that there is some
uh there there continues to be some
revenue sharing but not at the
uh not at the initial rate uh more at a
rate that's much more favorable to the
city
um and
and the vendor will
will participate in revenue sharing for
a five-year period
um
and then
so these are the operating expenses that
we're looking at that have all been
accounted for
communications all the cellular
communications required between all the
equipment
uh an administrator who will be who
oversee the operation
the system maintenance
all the merchant processing and bank
fees
other miscellaneous costs
are all accounted for
then after the vendor
has
has been paid that first
investment
the operating expenses would flip over
to the city although the vendor would
continue to operate the system through
that five-year period so again
communications parking operations
administrator
merchant processing and the parking
enforcement officers are listed down
here in line 21.
the city pays this expense
from year one through year ten because
the city will see one hundred percent of
the enforcement revenue
so the enforcement revenue is indicated
here projected on line fifteen
so the enforcement revenue is not shared
in this model the enforcement revenue
goes 100 to the city
so
uh so as a result of this model we have
uh projected
five year and uh five-year income to the
vendor and the 10-year income to the
city
over the entire course of this model
and then we did the same thing for the
bond financing model
so we're assuming here now that the city
will
uh will
will float a 10-year bond
uh at what you know the most competitive
rate that we could find
uh and we'll be we'll purchase the
system outright up front
so now
as a result of this
um
you know the the pros are
the city will not will be recovering
basically 100
of all the revenues but at the same time
will be responsible for operating the
system and maintaining the system from
year one through year ten
one of the benefits of the revenue share
is that the
vendor will be operating and maintaining
the system for the first five years
and we'll be working it'll be a system
of working out the any
bugs or kinks that might be encountered
and we'll be delivering uh you know a
fully functioning system and then there
will be a you know an easy transition
uh after that five year period
so uh so now the same
revenues to the city are calculated
using this model
and and they're a little more uh you
know beneficial to the city because
obviously there's there's no revenue
sharing and the developer and the
vendor
is not recuperating his financing costs
and developmental costs and so forth
so to summarize what what these pro
formas
yielded in terms of
uh of revenues
net revenues after
expenses have been pulled out is
summarized on this chart
so the so the a-rate structure
was
four dollars an hour during the peak and
two dollars an hour in the off season
the 10-year net income is after expenses
to the city is estimated to be
64 million
at three dollars an hour and a dollar
fifty
it would be forty eight million point
four
and at the first
rate structure the two dollars an hour
in the peak season and dollar all other
times
32 million 476 those are our projections
for the structure that is bond financing
by the city and again the pros a higher
10-year yield to the city
the cons are that it will add to the
city's outstanding debt balance
and that operating and maintenance
responsibilities will shift
to the city
in the
revenue share structure which we're
calling p3
which is public private partnership
uh structure
and the vendor will become our partner
in this because you know the vendor
wants to see this the program succeed
city wants to be the see the program
succeed
the the model is structured in such a
fashion
that um that it's in the interest of
both parties for the program to be
successful
and by all indications it'll be quite
successful
in these models the five-year net income
to the vendor
in the four dollar two dollar scenario
would be
just under six million
in the 3.50 scenario
about 5.3 million
and in the 2.1 scenario
about 4.8 million
the 10-year net income to the city
you'll see is
slightly somewhat lower than um that if
we did bought a bond financing structure
uh 62 but it would still be significant
61 million
in structure a
45 million in structure b
and 30 and 30.4 million in structure c
so that is the
summary of um
of the financial projections
and with that i guess i will turn it
over to either back to john to clean up
do a little cleanup and then
uh to the council for any questions
i i think the only clarity on this that
i would ask of you jerry is
what do you define as the shoulder
season here in these projections
okay the the shoulder season
that the peak season is june july and
august
or memorial day to labor day
the off-peak season is december january
and february
the shoulder seasons are september
october november
april and may
okay thank you for that clarity and with
that i would hand it over to uh city
council president mcginnis to field
questions from both herself and the rest
of the council
um thank you john and jerry for the
presentation that's very clear
um
you know now we'll start questions from
the council i think in fairness to
everyone
i think you know you should have one or
two questions and then we'll rotate to
the next council person so that everyone
gets a turn
i'm going to start with my first two
questions um in terms of the
kiosks i was actually in rectal center
this morning and put my card in the
meter to pay
and it was a little bit hard to read
the machine so
i was wondering if there's any sort of
improvements since then and also very
concerned about um weather
um affecting the machines down here
so i would i'm jerry if you wouldn't
mind uh
stop sharing your screen at this stage
of the game we can come back to it if we
need it for a frame of reference but i
would i would hand that over to either
um
or to either add or sean
good evening everybody my name is ed
kincaid i do business development for
for flo bird thank you very much for
having me the rockville center is a
older product with the monochrome screen
that is smaller our proposal here is a
9.7 inch color touch display
uh it's more user-friendly much easier
to interface with
as far as weather is concerned we are at
beach towns
across long island but at beach towns
from maine down to florida and up and
down the west coast as well we have no
issues as far as weather is concerned uh
whether that be the summer heat humidity
the cold um as well as the you know the
salt water and the salt air
and then my my my follow-up question
thank you
in terms of
installing the uh kiosk so when you're
digging up and making um electric
hookups is that all included in the
installation price
the kiosk service are solar powered
okay that's great yep so that that
minimizes any infrastructure needs
okay so let's keep this moving uh next
council member who would like to go next
with uh one or two questions so we can
rotate
well i would just if you don't if you
don't mind um one of the questions that
had come up from staff level and i'm
sure would come up for either council or
members of the public we have the the
south side of park avenue
rarely sees uh sun so could you expound
upon ed how how the units function in
that environment yeah
absolutely so some of you may be
familiar with us uh from new york city
where the vendor that has new york city
for the past 30 years so
we are accustomed to tall buildings to
overhanging trees
um the
solar panels are 13 watt solar panels
they actually produce about 15 watts
worth of energy it's a drip charge unit
so the units are actually battery driven
and drip charged 24 7. any ambient light
that is generated
in those shadows from the you know tall
buildings or or overhanging trees
continues to charge it
battery life uh on on these kiosks
suspect for three to five years and in
all honesty it's not unusual to get a
six year even a seventh year out of
those batteries now of course you'll
have a few that are on the shorter end
of that range but three to five years is
the specified battery life
thanks ed back to you karen okay um
who would like to uh does anybody want
to go next with your question
all right i guess i'll go uh i already
got one of my questions asked about when
was peak off peak and shoulder
um
for the for the uh vendor proposed model
in in years
um
six
through ten so that's after the capital
recovery period i guess the
the revenue sharing period the city
expenses
for
uh
for the system
is that
the city
paying the vendor under a service
contract is it uh hourly rates flat
rates uh or is it the city's hiring
staff
to do it themselves ourselves how does
that work
that's an excellent question
um what i assumed is that
um in this model
we've taken the vendor
rates that they um that they set forth
in their proposal
and we added 10
so that
if we would we figured that if we did
bring the vendor on as the operator
after year five
um there would be at least a ten there
would be probably a ten percent markup
on what their uh on what their being
on what their expenses are at that time
uh it could also be a hybrid they could
be
they could be engaged for some functions
and the city might be able to take on
some other functions
but in general
uh the vendor can operate the system
uh
more economically than than we can as a
public entity
so there is there is a bump up in
expenses
in year six
that have been accounted for in the
models
all right so then
as part of that
let's say in the first five years where
the vendor is responsible for the system
um if something happens equipment needs
to be replaced uh you know obviously
things break
is that part of that
uh
revenue sharing i guess
their part of maintaining the system or
could there be potentially additional
costs that if equipment needs to be
replaced
new software or whatever the case may be
yeah uh during the capital recovery
period the vendor is 100 responsible
for all those
you know equipment replacements and
upgrades and so forth
but um but beyond that that becomes the
responsibility of the city okay so if a
meter peters under the vendor will
execute those through year five right
the
but the city will be responsible for it
okay so if if a kiosk needed there would
be replaced in year seven
that would be then be the city's
responsibility that's that expense but
but there are but the service contract
and ed correct me if i'm wrong
service contract that was um that was
quoted in here
was a high level service contract that
would you know there would be automatic
upgrades and um you know replacements of
equipment that uh were that became
outdated
correct any defective parts there jerry
are going to be covered i think it's
important to note for the council that
all of the parts inside this meter are
modular and plug-and-play
which makes for the easy
fix the easy replacement or the quick
upgrade
of any unanticipated technologies there
that really makes for an efficient
relatively future-proof system over that
10 years that that jerry discussed and i
would even argue 10 plus
all right and i guess if i could just uh
karen i'll ask one more then wait ron's
got his finger up yeah i just want to
point something out too that i think
it's important to remind everybody of
that zero negotiations have taken place
at this point this is just a proposal
that's come from the vendor and us
discussing it
some of the uh some of the negotiations
are going to surround exactly the
questions that you're asking john you
know
how how we how we structure maintenance
how we structure replacement how long
they're willing to work and work with us
within the structure because they're
making money on this too within that
structure to you know extend our
warranty on product all that stuff is
part of negotiation that has not taken
place at all yet
okay thanks ron
and i guess just one more this is
something i i know it's happened to me
i'm sure it's happened to others uh
you go up to one of these uh
kiosks somewhere and the kiosk is out of
order
um i've i've found this particularly
true around the off the nassau county
office buildings
um
but uh
and i've seen this in other places i was
uh down in florida not long ago had
something similar happened there
um
so
i believe there was talk in the first
presentation that
i guess the the company gets a a message
of a piece of equipment goes down
through to you know
on-board sensors and stuff
but uh
in the interim if a piece of equipment
is down and you got people standing at a
kiosk
or trying to figure out how to pay for
their spot
and they're unable to
what what happens what's this
i i think i got you just i'm sorry to
interrupt um ed
could you talk about your side of things
and then i think commissioner walsh talk
about
i one one important thing to note is
we're looking at a hybrid system here
where
the the physical you know multimeter in
front of you if that is down there will
still be an option to
pay for your parking on a mobile app
um but i understand that but not
everyone might not use an app somebody
might not get that so ed if you could if
you could speak to or sean whoever it
would be on your side
um talk to how that's handled on your
end and then if we could just pitch that
to commissioner wallace quickly to talk
about what the law enforcement reaction
would be if somebody was in a position
where they were actually
unable to quote unquote feed the meter
thank you john um overwhelmingly with
the majority of our clients we are not
the operator or responsible for the
upkeep and maintenance of the equipment
uh that's kind of what is unique about
this conversation that we're having here
today is this is going to
is a new venture that we're taking on as
a company and and we're excited about
this opportunity here in long beach um
so i can't speak to nassau county you
might have saw i laughed a little bit
that nassau county is uh unique as a
client i'll just leave it at that um but
you know it's incumbent upon us you know
to keep the meters up and running there
are alarms that are issued by text and
email to our technicians and any city
officials who opt into that um as well
as back office alarms and visual alarms
at the meter uh clients have the option
to pay at any meter uh throughout the
city
of long beach and of course the app is
there's a backup so there is redundancy
um if one mode of payment is not the
offline on the meter the redundancy is
the meter will tell you hey i'm only
taking coins or i'm only taking credit
cards and it will communicate to the
user um you know if there's a problem
with one of the modes of payment that is
no longer taking that option
okay
do you want me to talk about the long
post and started that john real quick so
uh
if you could
i guess we just have to recognize that
it's probably a reality that at some
point
you know a piece of equipment's going to
become an operative for some period of
time and
inside the maintenance agreement we had
discussions with the floorboard also
about their response time and the
monitoring of the equipment so that's
something that we talked about how
quickly they come out and fix it also
the direction to go to other meters
would be also available and we would
also know internally and be able to
produce in court if someone come up and
say hey the meter's not working that
information is readily available inside
the system for us to say nope all the
meters are working on this day here's
the report introduce that which then
would turn into uh sorry the meter was
working you're just trying to get out of
uh paying your fine so there's a lot of
backups to this thing too so uh it was a
lot of it was a thought of it thought
okay um
uh any other council members just to
keep the rotation going
yeah all right yeah go ahead right
no no tina tina go ahead
okay oh thank you
i i only have a couple here um
going back to the original presentation
i flagged this the last time but then
didn't get to ask it can someone just um
clarify for me the time limit
uh 9 a.m to 5 p.m that that definition
yeah i mean i i think the rationale with
it and this is something that you know
we're looking for direction from council
on but
9 a.m we wanted we wanted long beach
residents to be able to you know stop at
bagel cafe or you know wherever and be
able to get
their early morning you know activities
taken care of as they head off to work
without having to feed the meters and
then the latter part of the day going to
11 o'clock
that's where we believe
um a large part of the non-resident
revenue generation will come from folks
that are coming into town
uh to go to a restaurant go to our local
you know our local establishments for
for dinner or drinks
um that's where a lot of the
non-resident revenue comes from after
those hours um there is obviously
precedent
for some communities rockville center
stopped at six um i spoke with them
today actually
and that was largely done because
individuals they didn't have the
technology at the time when they pushed
it to six o'clock from what was
previously nine o'clock
folks were having to leave a movie
theater to go out to feed the meters
because they couldn't refill it
um
they only the only way to do was
manually so now with the app
that's no longer as much of an issue um
you know we do have a lot of towns stop
it at six for us we think that's going
to eliminate a large portion of
non-resident revenue
um but you do have examples of patchogue
has their meters on until 4am
port jefferson has them until till
midnight um so there are other ones out
there that go even beyond um what we've
proposed here
okay yeah but you know when we were
defining the 9 a.m to 11 p.m and then
under that it says time limit nine a.m
to five p.m does that mean there's
there's certain accommodations in
between that window is that kind of so
yeah i mean what it is there's there's
time limits there's certain spots that
we're talking about curbside we're
talking about two hours straight
so after 5 p.m you could potentially
lose that two-hour time constraint okay
be able to stay there for four hours
um same thing for other areas where
there might be given time constraints
got you
to avoid exactly what john was talking
about someone having to run out to their
car because they're they're running up
against a two-hour limit
the two-hour limit would would drop off
after 5 p.m
so that if i'm at a movie or if i'm at
dinner enjoying
uh dessert i won't have to run out to uh
to feed the meter i can purchase
um you know my full amount of time maybe
an extra hour
up front and not have to worry about
running out to feed the meter okay okay
thank you um and then just on the p3
rate structure
there uh there was a underneath that
said um that that would require close
monitoring
and now is that something you know
should that be something we would look
into uh that could be handled by current
staff and
what would be needed to ensure accurate
um calculations there when it says
careful monitoring
so so the back office function every
every meter
every nickel
that's put into every meter every credit
card transaction
every app transaction
is detailed uh in the back office
and it's an open book for the city and
for the vendor
but in terms of the monitoring of same
we have to keep track of the
accumulation of revenue
so that once that once the revenue
once the vendor has recaptured
his initial investment
then the structure kind of changes from
that point through year five so that's
the only reason we
it's basically saying we have to keep
our eye on the ball in terms of
accounting
um to uh to properly um
you know work through the financial
structure here
okay so and it's it's easily it's easily
accomplished given the back office and
the transparency of the
data but when you know but you know back
office is really
you know it's a lot of data and um
if we have staff that are already
working 150
then where does that back office
personnel come from like how is that
accounted for like wouldn't it be
a half a head count from one department
like enos department and another full
half a head count from ron's department
like where is that
the cost accounted for
uh i i think the data can be easily
manipulated and filtered so that
we could receive
weekly or bi-weekly reports
in terms of what the revenue is monthly
reports
um yeah it's
it's easily tracked
but has to be monitored in order to
president mckinnis i think a little bit
more direct to what you're asking
inside this particular model there is no
backroom staff that's built into
managing this because we left that up to
the vendor uh if we were to switch
ourselves at some point in time to a
model like that
[Music]
you would then take into the te that you
would need full-time equivalent that you
might need
for a position to do this comptroller's
office or wherever and then take that
revenue from the actual program to pay
for that person's salary and account for
it that way so that would be part of
your net calculation as you know taking
it out of the gross so that you paid
your net calculation would change my
additional staff and reducing the
expenses of the vendor my personal
recommendation dealing with these things
in the county is i wouldn't recommend
that for the beginning i would recommend
that in as a long-term view
uh for something that you might want to
consider after we understand how to how
this thing works i would recommend
staying with the vendor for at least a
minimum of five years
right so
if so that means in both the vendor
proposed and the bond financing
structure
somewhere between lines six you know
somewhere in the proposals
there should be a line item for a
potential city cost an identity
of x amount of dollars right
jerry you can speak to that i don't i
don't i don't think i don't think it
would be you know we're not talking
about a full-time position here it's
it's basically somebody to review a
report
and see how much revenue
the the vendor has accumulated on a
month-by-month basis to keep track of it
and then once they hit that number
then we've then we enter phase two of
the agreement so it's it's somebody
reviewing a report that's automatically
generated by the system
uh on a monthly basis i i
i i see it as maybe you know a few hours
a month
and from operating standpoint um
we can just open up a separate bank
account to to feed all this revenue so
it will be segregated and more easily
tracked
okay
okay for sake of time thank you um roy
did you have some questions
uh
seriously yeah
about a thousand i'll start with the
just a couple give other people a chance
uh what is the
inter intervals of time that people can
buy at these meters
uh right now it's
uh it's
you know if i believe you could still
put in a nickel and purchase
you know
six and a half minutes or whatever it
works out in the rate structure so if
you you don't have to purchase a full
hour that's not the minimum you could
purchase you know you could still the
meters will still accept nickels dimes
uh so you can
you know purchase you can have a short
stay of 6 minutes or 12 minutes or
whatever you decide to uh to purchase
and that will be available with the
credit cards too
uh
unfortunately i think the credit card
purchases has to be a dollar minimum
yeah and there's there's credit card i
mean with the app
to be perfectly upfront there's there's
like a convenience fee with the app too
so it's going to tack on another
30 35 cents for it so
you know if you're looking
at you know if you're if we're looking
at the the four dollar two dollar
structure you're doing a two dollar for
an hour and there's going to be a 30 or
35 percent surcharge um for that initial
purchase on
on
9 cents
yeah correct correct
35 cents
okay so if you buy
if you get a dollars worth of time
you're paying a dollar 35.
if you use the app
that's a vendor if you
yeah okay
um
now
the uh
the vendor at this point gets 70 of the
first
up until a certain amount
each year
i think 3.8 million or something is that
right jerry
but
so if we took in
if the vendor came in and put all the
equipment in and everything and we only
took in
a thousand dollars i know it's really
you know unrealistic but let's say the
vendor
only gets 70 percent of that thousand in
other words the max he can get is 70
percent it's not a you know he he can't
recoup his money first
it just the capital recovery period
would would it would would drag on if
okay but it is
we would we are guaranteed 30 no matter
what
correct
very much okay that's
that's what i'm asking about okay now
i'm trying to figure out how we came up
with these numbers for
the uh utilization hours per day
for our meters now what we talking about
we
we had certain meters here you know two
hour meters we had uh 397 for hour
meters we had 10 to 19 30 minutes 42 etc
the permit spaces
the permit spaces do not have meters
uh the 497 permit spaces well they they
would be metered but they could but if
you have a permit you don't have to put
money in the meter
so you
you can only use those spaces if you
have a permit
no they're they're if it's if the car is
is not if the space is not filled with a
car
that has a permit plate
anyone could could park in it yeah well
what we're contemplating is a first come
first serve so that might be
designated as a priority parking for
this is where an employee can park
but if a customer gets to it first the
customer is there
and the customer is there then could you
explain to me what you mean by a permit
space
well i mean somebody somebody implies
the permit spaces will be in the center
walls in other words we the permit
spaces are not going to be
the prime spaces uh in front of the
stores along those curves
those spaces we want for the customers
those are the turnover spaces
so the employee
the employees who receive permits
are only going to be permitted to park
in the center malls and on certain
spaces on the side streets not along the
main dragon park
okay but you're counting those permit
spaces well on one hand you're saying
that they're part of the hourly what you
expect utilization an hour per day
then you minus 32 for the permits
the permits are 37 but you minus 32 is
that correct
uh
yes yes yes because because there were
there would be
in
in the in the inventory model
there are 497 possible spaces that we
might designate um as permit spaces
but we're we're we're projecting
a lower number of permits to actually be
utilized
okay so if somebody comes along and they
they
grab a permit space
a regular client you know a regular uh
person let's say out of town and they
grab a permit space
they're not limited to the two hours
four hours they whatever they pay for
they can stay until correct
correct if it's if if it's a daily space
where they could park up to 12 hours
they could purchase up to 12 hours
jerry wait wait wait i think uh
it's dry am i correct that you asked
if someone took up permit space
yes
there is no
designated there is a permit space is a
certain area which can go to a permit
car or a non-permitted car
okay yes
and i'm asking if a non-permanent car
goes there
he has to pay they have to pay
money now that space is not limited to
two hours or four hours or 30 minutes or
anything like that
it is so
it is
they will have they they could park up
to 12 hours in most of those permit
spaces
so yes so it's not
it's not
if they don't have a permit
then they then they have to abide by the
two-hour four-hour rules right jerry
well well what happens is you know you
do have uh temporary
employees or someone that might only be
coming in for
uh
you know a
catering event or something and needs to
park all day
but doesn't but doesn't want to have to
purchase
a permit just for that so we want to
have some spots available
for people who need to park for more
than four hours
so there are going to be spaces where
there's where you can purchase up to 12
hours of parking if for example i'm a
temporary employee or
or a part-time employee so i'm not
talking about those cases would be
would be the same spaces that the permit
holders would be allowed to park in
jerry i'm talking about a regular person
that comes here
and he goes to a permit spot
you have
497 permit spots
so someone comes here he goes to a
permit spot he's paying the fee
okay
he's paying the dollar an hour two
dollars an hour or four dollars an hour
whatever it is
he's limited he's not even limited
because it's 12 hours but it goes beyond
12 hours i mean past the 12 hours the
meat is not in effect so so roy i mean
my what i would say is i mean a it's
probably not a very realistic scenario
we're talking about it's a very small
subset of
of any any scenario that we're talking
about as far as you can john i'm asking
if it's possible
who's going to do it so it's possible
it's not likely and it's certainly not
economical for that individual
um but that's also why you know as we've
stated in the past
any parking system like this
is a living breathing system so we are
going to be
not just the beginning of this until it
hits the ground running but this is
going to be something that is constantly
amended and tweaked as we start to get
the real-life data right
the purpose of this is to ask the
question yeah yeah that's why i'm asking
the questions i'm not asking whether
it's going to be possible whether
someone's going to do it i'm trying to
figure out the structure
and that's why i was asking about the
permit the 497 spots
they're not necessarily just permit
people they could be for anybody
okay karen you want to let someone else
ask questions i have more questions but
i don't want to take up the time
sure um liz you haven't asked do you
have any questions i have questions but
in
i know rory has a heart stop so i would
no that's all right liz which i yield to
you roy please go ahead
finish shut up okay
i'm trying to figure out how we came up
with the numbers of uh
the estimated average utilization per
day
of all these spots
and um
you know i'm looking at the the great
neck plaza what they charge how many uh
hours they use
uh great net charges 50 cents an hour
they the revenue let's say they the
revenue is 70 uh thousand annually from
750 meeted spots john that's what you
sent me today is that correct
is that correct 70 is the very high end
of their estimate of what they make
right right so that comes out to 186
hours per year
per year
okay for their 700 metered spots
um
the huntington has 500 needed spots
charged a
the revenue is 700 000. that comes out
to 3.8 hours a day
i think they're reporting net numbers of
reporting gross numbers
those are net if they're all expenses in
all back rooms so that's not the number
of hours that's the number of how much
money they're actually clearing well it
says revenue it didn't say net revenue
it said the revenue and i assume revenue
is what comes actually in
it should have been my apologies
so we don't know what they gross
i can i can do further inquiries with
all of them and i still have other
municipalities i'm talking to as well
okay because i'm looking and i i
you know to me
these numbers were based on numbers of
two days
back in 2018
uh october 23rd and october 26th
at that time there were no meters there
was no incentive for anybody to move
so somebody parked and they're going to
park there probably the entire day
but based on that
the numbers are that that meter was
utilized for the you know up until 11
o'clock i think we stopped counting oh
no you actually jerry you said we
stopped counting at 12 o'clock right
yeah so i you know
to base our
possible utilization
on numbers that were taken
when there was absolutely no incentive
to move
i i
i you know to me it's suspect okay so so
what what we did in our models is uh
you'll see the on the right hand column
of those um projections
we in parentheses it says year three
so you're correct there is a um
there is a a change in patterns
immediately
following the implementation of such a
system
in year one
we're project so year three we consider
quote unquote mature revenue
so that is a regulated system where
people will come back to their normal
parking habits which were measured back
in october 2018.
in in year one
we're projecting 64 percent of mature
revenue is going to be realized in year
two
we think the ramp is going to start to
increase a little bit more 84 percent of
the mature revenue number is estimated
in year two and then by year three
people have gotten tired of
you know
uh carpooling and doing other things to
you know try to save their um you know
uh you know parking fee here and there
and have regulated back to their normal
parking habits and that's that's a
pattern that that i've seen repeatedly
uh over the years
historically in um in downtowns across
the northeast
and and i'll just say i'm not i'm not
here to fluff jerry but i've spoken to a
number of the municipalities that
he has been the lead consultant in
implementing new systems um i'm well
aware that you know past performance is
not a guarantee of future success but
um in all three of the ones that i've
spoken to on long island where where he
has performed the role he's performing
here um the revenue has exceeded um the
projections that he put out so i think
he's he's got a history of being pretty
conservative and pretty spot-on
we're talking an awful lot of money
though john
talking their anticipation of 68 million
dollars
over the 10-year period
you know that's after that's after
expenses and i you know
the other thing that needs to be
clarified a little bit too roy is that
the
center mall parking no one's ever been
allowed to park there all day uh we have
always historically had specials out
there that used to mark tires and and
check the check those things all the
time for for a two-hour parking lot so
there's always been a two-hour parking
lot this just makes it a lot more
efficient to be able to check those
things because as soon as a car becomes
over timed parking you get a system
warning saying where the cars are over
parked over trump
ron what you've been doing that what was
the income from uh parking fines last
year
i don't have those numbers available and
i don't even know that they would be
available uh uh yeah because they're
part of the budget
we do have that in front of the budget
i thought it's not just i thought it was
it's not just
i'm barking
that's gonna be all parking revenue
that's throughout the entire city what
you reference i thought what you're
referencing you correct me from wrong
was that you said that people parked all
day long in the in the center malls and
there was no turnover in fact no i don't
i don't know what what the center mall
you know where these numbers were taken
i'm assuming it was all 1350 spaces
you know that that the numbers were
taken so
you know people parked it was what i'm
saying is
you know this is based on basically a
turnover or people paying the entire
thing but it's based on
a time when there was no incentive
so they said well somebody's parking
there this entire time so we're going to
assume that once the money even with the
money being charged they will continue
to park there
those are what the numbers are based on
now the only problem was trying to
clarify was that there was parking
enforcement always taking place during
those times some of the meetings some of
the spots are 30 minutes some of the
spots are are a hour some of them are
two hour and the specials walk those
areas all summer long and all year long
and issues is for that so so right right
again that's why i'm asking they've been
issuing summonses
and i'm just wondering what our income
is from those summonses now
before we're talking about yeah from my
understanding they've never been tracked
just for specifically for those things
there was
revenue that was generated for parking
summonses and revenue that's been
generated for moving summonses that
we didn't get reported back but never
in the center of town it was the entire
city
okay okay so i guess like so so
basically
you know we have a parking fine uh
parking fine
budgeted line item which is probably an
aggregated number
which we probably don't have a specific
drink down at this time but i'm sure ina
and ron can look into that
okay right now
there's nowhere right now
we're anticipating
648
000 in parking points 624 thousand
dollars yes
in parking funds i'm just you know
you know i'm trying to figure out
it's a lot that goes into those parking
fines roy some of the parking fines may
end up going to court and they're
dismissed
um so that is something that we can take
a look at and just say we can't give it
to you by area but we can give you an
estimate of where we were going to be
for parking fines
this this
presentation has an estimate
of 600 uh
100 right it has an estimate for the
center for the center of town when we
talk about parking fines in the budget
it is not broken out by
the areas in town and so i guess where
i'm a little confused by your question
is that if a person parks their 12 hours
they have to pay if
there was no incentive they didn't have
to pay therefore there's no revenue to
the city
and then if they receive the ticket it
is not guaranteed that they're going to
have to pay the entire amount of the
summons if they go to court
i guess that's that's 17
was the number that they figured for
that that there would be a reduction of
17 percent
right
roy please forgive me for interjecting i
actually understand i actually
understand your point
and agree with you that um an estimate
of about over a half a million dollars
in fines per year may be a little bit
aggressive and ask that the city staff
work with jerry to make sure that that's
an appropriate assumption and see if you
might want to check it you know just
check it one more time for us please
we'll do
does that help roy do you have any
further questions yeah no that that
helps i'm trying to uh
yeah
just a couple more
seconds the on one of the slides you
showed us you did have
uh the memorial day um
date as realistic but you you seem to
say that that's a little bit aggressive
at this point
can you
give us a little bit more on that i mean
yeah i mean that's based on based on
what we heard tonight it seems
impossible but you think it still could
be possible that's that that's the
target date that we were given we are
gunning for it um
it's aggressive how realistic it is at
this stage of the game um
is certainly in question
um we're looking we're looking to move
forward and bring something online um
council willing um as expeditiously as
possible
so you know it it depends on how how
quickly this process moves through here
um flo bird certainly
you know knows what its build out time
is so to speak and i i don't fully mean
build out but then there's the back end
systems as well so there there's a
reality that we're playing with um
you know memorial day is
we gotta we got a super tight window
right now if we're getting there yeah
okay next question
anybody because i i just have a couple
more
um this can go ahead i have one as well
but i'll wait until yeah i have a couple
but since roy's got a hard stop let's
let's
no please
you know we got to get this done so
thank you roy um let's let's move let's
rotate a little bit i have some
questions too um liz you haven't had an
opportunity to ask any questions yeah my
question is regarding the app um i've
downloaded and have played with it
as well
and
i see here that they have a calendar of
events
that's some so say i wanted to that
bright eyes having a concert or a
a trio of jazz singers
would we be able to or would the bright
eye or the event
coordinator
be able to contact the city and say i'm
having this event can you put it in the
calendar so that people can
look at the parking spaces that show up
but what's available at that time
sean ed you guys uh what's that
interface look like
well yeah i could take that um
yeah so we work with a
reservations
system that allows for parking
reservations at typically off street
parking locations
um so if that interface is available
then we could bring it to long beach and
it kind of connects the events in the
area and there is a configuration to
allow for
um special events to be
you know added there
so just something we'd have to look at
with our parking reservations uh system
there
okay now i just need to
establish how that was
made
go ahead
um i just had a question um
from my understanding
in previous conversations
the city was granted about 500 000 for
this project and
is there a place where the costs to
implement the systems above this amount
is defined like i know we have a certain
amount
so it was we were a financial
restructuring board um
has allocated the city up to 500 000
um
towards this project and that's actually
not
baked into
we we don't like to assume anything
um and we've been working on this for a
while so that's not baked into jerry's
analysis so you know as we move forward
we will
we will bake it in and move it out
thank you
i have a i have a related question um to
that point tina
um
so the projected or estimated uh vendor
recoupment amount is 3.8 million through
the you know
vendor finance model
and then um with the bond financing
structure
the proposed bonding amount is seems to
be 1.2 million dollars that we would
borrow
that's correct so
can you walk me through the difference
yes
the the the 3.8 million
uh includes the vendors operating
expenses
as well as their developmental and
financing expenses so
um you know so
so there's there's a lot of costs to
pull this all together
um
and and also there's there's risk
involved on their part
um
which they've also baked into that
estimate of the 3.8 so between the
financing
the risk and their operating expenses
um you know we're paying that extra
money as a result
so what what exactly in comparison would
we be borrowing for in the 1.2 million
is that their development cost is that
the fee the flo bird fee
uh
sean or ed do you want to
you know you gave us that estimate in
terms of the the one-time cost does that
include
all the the development of the back
office and
the integration of all the systems
the one-time cost um as opposed to the
financing
correct for the revenue
how do we compare it
yeah so i'm looking at the um
details on that now
so that yeah i mean you're you're
basically getting
all the pay stations um you're getting
you're getting the enforcement system
um
and
you know you're basically getting
everything you're just paying
upfront for it as opposed to
us taking the risk
that
the revenue is not enough to cover the
the cost of the system basically so
we're in the first model where we're
talking about
a revenue share
we're basically input we're
installing the whole system for you
and operating it for you
and then taking the risk that the
revenue comes in to cover it
whereas in the model
where we are
getting the money up front
we're doing everything the same
um
we're just uh
we're not we're just getting paid up
front for it
okay
i think i think i get it
okay john did you have any questions any
more questions
uh
yeah um
just this one's a kind of a simple one
but
since the machines take cash who
collects the cash from the
kiosks
the the operator so the vendor would
would be collecting the cash
so vendor for years one through five and
then the city six through ten
well
the city or the or the operator that the
city engages
but there but it's
the the machines know when the back
office tells you will tell us exactly
how much is in every meter every time
that door opens every time a cash drawer
is taken out so the internal controls in
a system like this are
um
are really high level so
uh there's there's there's virtually uh
no risk of theft in a system like this
no more quarter scandals mr bender well
i was gonna say what yeah what's the
security of these uh
i mean i'm i'm guessing they're not high
cash value targets but
uh so so the the actual the actual
meters themselves the
cash that's actually collected the
meters like you said the vendor's going
to collect them i i did not want to get
involved in the uh the cash collection
business in the police department i ran
out in vanessa county for a while it's a
lot of logistics and a lot a lot of
different things come into play with it
but uh
the
security is born by them they're
collecting it they're responsible to
make sure that we get it
so
you know it's not it's not all across
the bear so to speak and just i would
just a real quick add-on too is i mean
our our original wish was was
to eliminate cash entirely but you know
as a society i don't think we're there
yet that we can expect everybody to have
a credit card or be able to do it via
the app um so you know moving forward we
could transition away from cash um and
that's likely the way this thing goes
well but that creates that creates an
issue if a credit card requires a one
dollar minimum if somebody's running
into
wherever cbs
for 10 minutes to grab something and
wants to put a dime in the meter
you know to give themselves 10 minutes
they're going to do that rather than we
did that anyway though didn't we build
in a 10 minute grace period in this
jerry
no
no
only for 15 meters
they're 15 meters well that that was
another thing i was looking for clarity
on are all meters a 10-minute grace
period or is it just those uh
15 identified spots
grace period is very difficult to
enforce i i wouldn't recommend it um you
know the being able to put a nickel or a
diamond is
um
you know as an alternative i think is is
probably the best way to go
all right so yes you're proposing we not
do a 10 minute grace period
that
let him throw a nickel in there for a
few minutes
correct
logistically it's very difficult to to
pull off
okay
um
and then uh
so regarding the the fees
we get
um
ena had mentioned something early about
the possibility of creating a separate
account for these funds
is there i mean and i know we're very
early in the process but
uh have we given thought to do we want
to put some of these funds
in a lock box
to gear it towards uh
whatever it is infrastructure road
repair and also the other reason i bring
that up is if the estimate is that the
system the equipment lasts 10 years
then in year 11 we could be potentially
looking at a
let's take the 3.8 and adjust it up for
inflation we could be looking at a four
and a half
or five million dollar outlay for
equipment upgrades in year 11
which
without putting money aside we could be
back to we got a bond for it or
you know perhaps a new revenue sharing
agreement or whatever the case may be
or we plan accordingly by putting some
funds
you know in a lock box you know for this
those are above my so i'm sorry i don't
mean interrupt jump um
those are questions that are above my
pay grade i think would go to the
council
i i agree with you john what we could do
is we can come up with a policy that so
much money that comes in has to be
restricted for
uh future improvements or whatever um
and then that's how that's done
the governing body can come
only governing body which is the city
council
can implement restrictions
so right so that would be in the policy
that the that the body would pass the
other way to handle the two was
the other way
to which was discussed i'm sorry i'm a
little bit lagged so i start talking
sometimes and then it catches up so i
don't need to talk over anybody i
apologize um the other way to handle two
we talked about with this was in our
maintenance program building in software
and hardware refreshes inside the
maintenance program so that as we're
going along we're automatically paying
flo bird to do that for us so that in
year five we might get a software uh
refresh in year six and seven we get a
hardware refresh of the meters in year
10
we've already paid for the media so it's
already included in the fees in the in
the negotiations inside the actual
contract that we saw for them but that
hasn't been brought up yet because that
isn't the model that we looked for
uh going into this that's something that
will come out in the negotiation so
there's a lot of different ways to
handle it and it's something that we did
in radio projects and many other things
where as we're going along and equipment
starts
to age
out it's already into the maintenance
program then it's going to be replaced
well system maintenance system
maintenance is actually in the
financials already
um in the out years so basically i think
john you're basically referring to
hardware which you know is not the 3.8
million that was a part of the original
recruitment it's less
but yes you know right but it may not be
right it could be well again depending
next generation equipment whatever the
case may be
but there is a cost of some kind
yes that's a great point that we should
uh definitely consider right something
like that and i guess uh my my last one
for now um
so
as far as the permits we're talking
about having
employees uh buy parking permits so they
don't have to put money in the meter
we have
two kinds of employees you know we have
the full-time people
who are going into their office or their
business or whatever working full-time
but then we have
also the high school kid who's bussing
tables at a restaurant
uh might only be working
15 hours a week or something like that
are we
applying the same rule to those people
about having to buy permits or
are we going to work something out where
the businesses can buy permits for their
employees or
you know i mean
not all not all permit holders are the
same
that that could definitely be done i'm
working on a permit program right now
for downtown lindenhurst and that
program the employers are going to be
able to purchase
permits for their employees
and in this case where you know we're
looking at
the employee parking permit it's 200 a
year which works out to be
about 16
16.67
per month which
um you know compared with putting the
money in the meter i think is a very
modest and fair
fee and i think a lot of the businesses
would take advantage of being able to
purchase blocks of permits for their
employees they just have to register
those plates within the system
right because especially with with the
part-time employees especially the
younger kids and this is going to be
especially prevalent in the summer time
you know during the memorial day the
labor day window is these these kids
come and go
you know as far as these employees you
know they they come in they work for a
while they're gone new employees are in
new employees are out
so um
you know a college kid coming home
you know asking them to buy a one-year
permit when they're only working
you know
june july and august
may leave a bad taste in in their uh
in their mouth those moments are gonna
be bought by the actual establishments
and the plates that they can use can
change so as
an employee leaves and we're a
they take that plate out and they can
replace it with a different plate they
have a certain number of plates that
they're allowed to register yeah
that's fine if we're gonna have if we're
gonna discuss with you know having the
businesses take on that responsibility
for their employees that's fine but then
there's that's got to be a a part of the
rollout program or whatever the
discussion with the with the businesses
uh
about
giving them that option
to do that work
you know with um
basically it's uh what um over one-third
of the spaces are in this current and
the current assumptions
are actually for businesses
um this this these assumptions are based
on information from
2018.
um i really don't have any sort of
comparison level to know how many
registered businesses we have in this
area in 2018 versus now
so um
you know i i'm a little concerned about
managing this inventory
because this is the discounted inventory
right yeah well the other thing too is
keep in mind that
there are a lot more employees
operating in these businesses in the
memorial day to labor day window than
there are
in the
off season
too
you know these businesses bring in a lot
more employees in the summer time so
that means they're taking up more spaces
but that brings me to an equity issue
like like how are you going to base
are you going to base the number of
permits a business may purchase on the
on the square footage of a business
i mean how are you going to create an
illicit market for you know for these
permits
the permits are going to require
either a pay stub
or a certification
and the um
and the the vehicle registration
so the tag number can be confirmed and
the name can be confirmed either with
the certification or the pay stub so uh
so there are going to be controls in
place
to minimize the risk of abuse and and
that's where the fee structure comes
into play too you know you don't you
want to hit the sweet spot you don't
want it to be punitive um but you want
to make sure that
the the business owners are keeping
things up to date um so they're not
losing money on spent tags that are no
longer viable for them
and that they give the city an accurate
read over how many employees that they
have at any given time and how many how
many permitted plates they need at any
given time the other thing john is uh
currently we have a a lot of complaints
because there's no long-term parking
places for the businesses to park this
actually generates spots where they can
park long term because they now have a
permit to do so and it reduces their
cost
so basically if this goes if this goes
by a calendar year
it's really um first thumb first serve
for these
425 permits that are going to be
purchased
each year so basically i'm going to
put all these people on my books in
january so that i have enough spaces
in uh in june
because i even though they won't be
getting a paycheck until june because i
my business is seasonal right or do we
sell seasonal permits that's another
what remains to be seen i think that
whole thing remains to be seen how we're
going to structure that
jerry jerry did you have want to say
something
uh yeah two things uh you know first of
all you know as john mentioned earlier
this is a living breathing thing uh that
497 is my best guess
based on
sadly doing parking studies for over 30
years that's my best guess as to what
your employee demand is going to be
also because the rate is very modest
we're going to have people buying
business permits for convenience so we
might sell 700 of these permits but
we'll only find
maybe 350 park at the peak and i've seen
this in commuter lots and employee lots
in in towns all over the northeast so
um
so the way that the way to deal with it
is to monitor
your the actual demand that's generated
so this adjustments accordingly so um
donna um
good evening
um
which which department would actually
manage these uh monitor and manage the
uh permit issuance
for uh for you know business parking
it actually would be the city clerk's
office the they do all of the parking
right now
okay
so let me
be monitored by by all by police and
finance but they would issue the permits
okay so let's let's take
i think dave just fell out of his chair
let's take a larger establishment maybe
like one of our large uh bar restaurants
that maybe has
let's say they have 50 employees
but at any given time only 10 employees
may actually be working
can they buy
10 permits and say but i'm only going to
be using i may i may have i may register
50 plates but at any given time only 10
would be
there at a time
or is that even possible or would they
have to buy a permit per plate
that's that's a great question
um you can
you have to have a plate number
attached so that they are part of the
system and the when the lprs read them
now you can have two plates attached to
one permit but they will not be allowed
to park at the same time
so if if i hit plate abc123
on a particular day
and there's another permit on and
there's another tag on that same permit
and i read that plate as well
they're going to get a ticket all right
so it sounds like we need to give some
thought to how to accommodate a business
that again like i said may have 50
employees
but at any given time only 10 may be
working
you can also structure it john with the
permits at any given time you're only
allowed to have
10 cars from that business
allowed to park there well that that's
what i'm saying yeah but that yeah but
so that was that's the whole point how
do you really how do you try one
business can get 10 permits and another
business can only get five no they can
buy 100 birds
100 permits but at any given time you
can limit the number of people from that
establishment that can park there
i think i think that's a great leg
i think you get my point though you may
not have the answer right now but i
think you see what i'm getting at no
it's a great flag let us let us take
that in-house and uh come back with
something um i just want to point out
jerry you had said that the permits
would be the the employee permits in the
beginning in the earlier part of this
line of questioning you had said that
the employees would be required to
submit a pay stub
but you know later on just now when you
answer john's questions you just said
they could just submit license plates so
if i were a business owner i would be
just asking all my friends for their
license plates and registering in
january so i had enough spots for my
employees in june
now you would you would still need to
attach a vehicle registration
and either a page stub or a
certification
to each plate number registered for your
business
okay well each number would require
either
eight would definitely require vehicle
registration
plus either a certification from the
business or or a pay stub
a certification uh you know that would
be notarized that correct yeah yeah
so um
my last question around on the permit
parking um has to do with the fact that
we i think the city had secured a grant
around
transit development
related to the railroad and i was
wondering how
john mcnally how that was incorporated
into this plan
um
with that particular grant is it's it's
really for the divine design phase to
the best of my knowledge at this stage
of the game we didn't have patty to come
on to this so it's related but a little
bit far afield
um and it's really you know it's way
finding it's it's aesthetic and and flow
improvements so i think in terms of
parking inventory we're not it's
probably not a related issue at this
stage of the game or just the placement
of the kiosk
correct yeah i mean it's it's where the
kiosks are gonna be
not in the center malls uh they're gonna
be on the corners of basically each of
the blocks so you know the center malls
are not a destination so why you're
putting them there
um so they're going to be
you're not parking in the center malls
to be in the parking in in the center
malls um you're parking there in order
to get to you know a curbside so they'll
be on each curb i i don't think
um we'll flag it and look at it but i
don't think it's going to be affected um
between the two
okay
um roy i think it's your turn
i i'm going to have to go
karen so i'm going to
leave my questions for the next time
okay like i said there's plenty of bites
at this apple
yeah
and roy you know you can always send us
your questions and then we can discuss
them the next time as well
oh i know
okay ask poor john because he gets them
and the residents can also uh reach out
right
for questions uh a hundred percent
um either you know city manager at
longbeachny.gov or jay mcnally at
longbeachny.gov and as noted there's
going to be
um a number of bites of the apple where
public input at regular council meetings
will be will be
not just available but welcomed
i had a question um for the uh for the
app or i guess uh
the lb register
resident registration
what makes you a long beach resident
i'm not sure oh so i mean you would need
to have the same way that you sort of
prove it for a beach pass so you need to
have
you know you need to have a current
utility bill
your license needs to
you know reflect and it's it this is an
annual
annual registration so just because
karen mcginnis signed up for um
and passed the test to be a resident
2022
does not mean that she will be a
resident for life you need to you need
to prove it each year
can we be a little bit rigor rigorous on
that
and you know because
this is you know this is the issue we're
having with you know people that
pay taxes to live here and people that
don't
okay so we'll definitely examine
criteria to make sure that it's as uh
full proof as possible
okay
any other questions from the council
i have just
a final question
for our house for jerry
have we asked the most asked question
that you have received in your years of
experience
are we missing something
uh
no actually that was a very
comprehensive uh
coverage of uh most of the key points
really
thank you
this has been very
very helpful i just want to thank
everybody for being on the call today
um this is a lot of lot to consider um
thank you to flo bird as well um
for all your uh for all your help
and um john mcnally i leave it to you
until the next time and there will be
several next time so uh appreciate you
all
all right thank you
thank you
good everybody
good night