Cincinnati Request for Proposals Parking PARKING CONCESSION

CITY OF CINCINNATI

REQUEST FOR PROPOSALS CONCESSION LEASE AGREEMENT SELECTED CITY-OWNED PARKING ASSETS

RFP353PARKCONCESSION

OCTOBER 26, 2012

Table of Contents
I. Overview of RFP Process .............................................................................................................1 Introduction .....................................................................................................................................1 The Parking System ........................................................................................................................1 City of Cincinnati and Greater Cincinnati Region ..........................................................................2 Overview of Request for Proposals (“RFP”) ..................................................................................2 Overview of Process .......................................................................................................................2 II. Parking System Description .........................................................................................................4 On-Street Facilities in Concession ..................................................................................................4 Off-Street Facilities in Concession .................................................................................................4 Future Plans ....................................................................................................................................6 Historical Parking System Revenues and Expenses .......................................................................8 Revenue ..........................................................................................................................................8 Operating Expenses and Net Income ..............................................................................................8 Downtown On-Street Transaction Volume...................................................................................11 Rate History ..................................................................................................................................11 Enforcement and Collection .........................................................................................................12 Defeasance of Debt .......................................................................................................................13 III. IV. Investment Highlights.................................................................................................................14 Offeror Requirement and Evaluation Criteria ........................................................................15 Technical Capability .....................................................................................................................15 Financial Capability ......................................................................................................................15 V. RFP Submission Requirements and Procedure .......................................................................16 RFP Submission Requirements.....................................................................................................16 No Liability for Costs and Hold Harmless....................................................................................16 Disclosure of RFP Responses Pursuant to a Public Records Request ..........................................16 Data Room ....................................................................................................................................17 Format and Required Information for RFP Submission ...............................................................17 Consultant to the City of Cincinnati .............................................................................................19 RFP Submission Instructions ........................................................................................................20 RFI Submission Instructions .........................................................................................................20

Post RFP Submittal Date ..............................................................................................................20

Appendices Appendix A – Required Agreement Major Provisions Appendix B – Summary of Key Terms

I. Overview of RFP Process
Introduction
The City of Cincinnati (“City”) has engaged Walker Parking Consultants/Engineers, Inc. (“Walker”) as owner’s representative and to assist in evaluating a long-term concession lease for selected City-owned parking assets, including 6,000 on-street spaces (of which approximately 5,700 are metered), 2,528 offstreet spaces in four parking garages and three surface lots and an additional 725 spaces in a proposed parking garage. Collectively, the subject parking assets are referred to as the “Parking System”. See the appendices for some key terms of the proposed agreement, between the City and the successful offeror (the “Agreement”). The following are the primary objectives of the City: • To maximize the amount of capital contribution paid under the agreement, while maintaining the customer service levels and high safety and security standards of the existing Parking System;

• To receive a minimum upfront payment of $40 million, of which a minimum of $20 million should be from the on-street component; • • To maximize the City’s share in the future revenue stream associated with the Parking System; and To complete the development of the proposed Sycamore Garage mentioned herein.

The City seeks a third party to provide the necessary capital for expanding its parking system and to execute the completion of the proposed Sycamore Garage using the team selected by the City. Public sources of financing may be available to assist with funding the Sycamore Garage. Moreover, the third party would operate and maintain both the existing parking structures and once operational, the Sycamore Garage. To summarize, the City is expecting that the successful offeror will complete the following scope of work after the Agreement has been mutually accepted and executed: • • • Operate existing on- and off-street parking facilities comprising the Parking System; Provide project financing and manage development of proposed Sycamore Garage; and Manage effort to construct proposed Sycamore Garage and operate Garage once built.

The Parking System
The Parking System consists of the following assets: • • • • • • • • • 6,000 on-street parking spaces (of which approximately 5,700 are metered); 545-space Garfield Garage; 396-space Fountain Square South Garage; 418-space Gramercy Garage; 623-space Broadway Garage; 260-space Seventh Street Garage to be replaced by proposed 725-space Sycamore Garage which will be completed by the successful proponent, using the team selected by the City; 60-space Third and Butler Lot and adjoining 165-space L&N Loop Lot which are operated as one facility; 32-space West Central Lot; and 29-space McFarland Lot.

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City of Cincinnati and Greater Cincinnati Region
Cincinnati USA, a global business center, is the headquarters of nine Fortune 500 companies and home to more than 300 foreign-owned firms. The Cincinnati-Northern Kentucky International Airport, home to a Delta Airlines hub, and Cincinnati’s location on the Ohio River and Interstate Highways I-71, I-74, and I75, provide accessibility to customers and suppliers across the USA and the world. The City and region have some of the top college talent in the nation at Xavier University, the University of Cincinnati, and Miami University. Nineteen junior colleges and technical institutes are located within 30 miles and private K-12 districts are plentiful. Cincinnati Public Schools boasts the best public high school in Ohio, and is in the process of renovating or replacing every school in its system. Cincinnati USA is one of only a dozen USA cities that has all five major arts disciplines represented (ballet, opera, art museum, symphony, theatre) and is home to the fifth-oldest symphony orchestra and a two-time Tony Award-winning Playhouse in the Park. The region has several established clusters in financial services, consumer products, chemistry, plastics, automotive suppliers and aerospace. Clusters are being developed in advanced energy, creative services, information technology, and biosciences.

Overview of Request for Proposals (“RFP”)
For the purposes of this RFP, the following definitions apply: • • “Team” or “Offeror” means an individual, a company, or a consortium of individuals and/or companies formed to undertake the transaction; and “Team Member” means a member of a Team.

This RFP provides an opportunity for Offerors to formally express their interest in proposing on the right to control and manage the Parking System in accordance with the terms of the Agreement. Sections II and III of this RFP provide an introductory description of the Parking System and include investment highlights of the Agreement. Section IV summarizes the required Offeror qualifications. Section V lists the RFP submission requirements and procedures. Those interested in proposing on the Agreement should respond to this RFP no later than 4:00 PM Cincinnati time on November 26, 2012. Based on the responses to the RFP, the City of Cincinnati will evaluate the proposals, develop a short list, and invite firms to participate in an interview. There are no restrictions as to the number of Offerors that may be considered. The City of Cincinnati retains the right to refuse any and all proposals and Offerors that submit proposals do so at their own expense without any reimbursement from the City of Cincinnati.

Overview of Process
After receipt of a Letter of Interest submitted to potential Offeror by the City, interested parties will receive access to additional information concerning the Parking System and the proposal process, including this RFP. Offerors will have the opportunity to conduct due diligence of the Parking System through (i) access to an on-line data room; (ii) Parking System tours and additional inspections by Offeror representatives; and (iii) review and discussion of this RFP and appendices.

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If the final proposals received at the conclusion of the solicitation process meet the objectives of the City, the City will, at its sole discretion, select what it deems to be the best proposal for the City and enter into the Agreement with the successful Offeror (the “Concessionaire”) relating to the entire Parking System. The City reserves the right to modify or terminate this solicitation at any stage if the City determines this action to be in its best interests. The receipt of proposals or other documents at any stage of either the RFP or the proposal process will in no way obligate the City to enter into any contract of any kind with any party. Approval by the City’s Council will be required before the Agreement is completed. The Agreement will be a long-term agreement granting the Concessionaire the exclusive right to, with limitations, further develop and operate the Parking System and with limitations, to collect parking and advertising concession revenue from the Parking System during the agreed-upon term of the Agreement. Upon entering into the Agreement, the Concessionaire will make a capital contribution as per the Agreement. The primary objective of the City is to maximize the amount of the capital contribution under the Agreement, while providing parking at competitive market rates and maintaining high levels of customer service, safety and security. The Agreement will include standards related to required capital improvements and the operation and maintenance of the Parking System, which the Concessionaire will be required to satisfy. In addition to fulfilling the capital contribution, the successful Offeror will be required to finance and oversee construction of the Sycamore Garage using the team selected by the City, which will revert to City ownership at the end of the lease term. The Offeror will be required to operate and maintain this new parking structure, plus the existing facilities mentioned herein.

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II.

Parking System Description

The Parking System in the concession includes 6,000 on-street spaces (of which approximately 5,700 are metered), 2,528 off-street spaces in four parking garages and three surface lots and an additional 725 spaces in a proposed parking garage. The 300 spaces not currently metered are either part of The Banks proposed development or are presently truck or loading zones. A more detailed description of the facilities follows.

On-Street Facilities in Concession
All 6,000 on-street spaces controlled by the City’s Division of Parking Facilities are to be included in the concession. Approximately 5,700 of these spaces are now metered. The distribution of the 5,700 metered spaces throughout the City is shown on the following table. Table 1: Distribution of On-Street Meters and Rates

Area Downtown Over-The-Rhine Other Neighborhoods Total

Rate Meters $2.00/hr 1,907 $0.50/hr 760 $0.50/hr 3,040 5,707

Other Neighborhoods include but are not limited to O’Bryonville, University of Cincinnati, Clifton, Northside, Hyde Park, Mount Lookout, and Oakley. New parking meters that accept credit cards were fully installed in Downtown in August 2011. A full breakdown of metered spaces by area will be made available. The Concessionaire will have the flexibility to install meters at 200± on-street spaces that are part of The Banks development and 100 other spaces that are not currently metered, subject to the City Manager’s approval. The Cincinnati Streetcar project, which is funded through Phase 1, would result in the permanent removal of 53 metered spaces. In addition, during construction of this project, the curb would be closed in 2 to 3 block intervals for multiple months. Track installation is scheduled to begin in 2013 and details will not be available until January 2013.

Off-Street Facilities in Concession
Four garages (Garfield Garage, Fountain Square South Garage, Gramercy Garage and Broadway Garage) and three surface lots (Third and Butler/L&N Loop, West Central and McFarland), totaling 2,528 spaces, are included in the concession. The Seventh Street Garage, an aging facility, is also included but will be replaced by the Sycamore Garage. City-owned facilities that are NOT included in the concession are the Washington Park Garage, U-Square at the Loop Garage, Town Center Garage, Fountain Square North Garage, Fifth and Race Lot, Third and Central Lot, John Street Lot and Renaissance Lot. The Fountain Square North Garage is owned by the

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City and managed by the Cincinnati Center City Development Corporation under a long-term lease agreement with the City. A description of each off-street facility included in the concession Parking System follows. Garfield Garage The 545-space Garfield Garage is located at 13 West 9th Street, on the south side of 9th Street between Race Street and Vine Street. It is an above-grade facility with eight levels and was built in 1982 using cast-in-place, post-tensioned construction. It is open 24 hours a day, 7 days a week and offers both transient and monthly parking, with a $6.00 daily maximum and $95.00 per month, respectively. This Garage provides convenient parking serving the northern portion of the Downtown area including the main branch of the Cincinnati Public Library, The Phoenix and shops and restaurants located on Court Street, Garfield Place and Vine Street. Fountain Square South Garage The 396-space Fountain Square South Garage is located at 416 Vine Street, on the east side of Vine Street, between 4th Street and 5th Street. It is a below-grade facility with two levels located underneath the Westin Hotel. It was built in 1978 using cast-in-place, conventionally reinforced construction. It is open 24 hours a day, 7 days a week and offers both transient and monthly parking, with a $15.00 daily maximum and $195.00 per month, respectively. This Garage provides convenient parking serving the center of Downtown as well sports venues, including the Great American Ball Park and Paul Brown Stadium. Gramercy Garage The 418-space Gramercy Garage (also known as Elm Street Garage) is located at 710 Elm Street, on the east side of Elm Street between 7th Street and 8th Street. It is a below-grade facility with four levels and was built in 1991 using cast-in-place, post-tensioned construction. It is open 24 hours a day, 7 days a week and offers both transient and monthly parking, with a $7.00 daily maximum and $100.00 per month, respectively. This garage provides convenient parking serving the west side of Downtown which includes the Duke Energy Convention Center and Cincinnati City Hall. Broadway Garage The 623-space Broadway Garage (also known as 7th and Broadway Garage) is located at 351 East 7th Street, on the south side of 7th Street between Sycamore Street and Broadway Street. It is an above-grade facility with five levels and was built in 2002 using cast-in-place, post-tensioned construction. It is open from 6:00 AM to 11:00 PM Monday through Friday and offers both transient and monthly parking, with an $8.00 daily maximum and $135.00 per month, respectively. This Garage provides convenient parking serving the east side of Downtown which includes Procter & Gamble’s headquarters. The City has an agreement in place that calls for a flat rate of $127.77 per month through March 2015 with three five-year options thereafter that define rate increases. The Concessionaire is expected to honor this City agreement. Seventh Street Garage The 260-space Seventh Street Garage is located at 702 Sycamore Street, on the north side of 7th Street between Sycamore and Broadway Streets. It is an above-grade facility with three levels and was built in 1957 using conventional reinforced slab construction. It is open 24 hours a day, 7 days a week and offers both transient and monthly parking. The daily maximum rate is $8.00, monthly rates are $90.00 (unreserved) or $130.00 (reserved) and the special event rate is $10.00. This Garage provides convenient parking serving the east side of Downtown, the Aronoff Center, Hamilton County offices, and the Hamilton County Justice Center.

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Third and Butler/L&N Loop Lot The 60-space Third and Butler Lot and 165-space L&N Loop Lot are adjoining lots that function as one facility located on the south side of 3rd Street just west of where Butler ends at 3rd Street. Portions are located underneath U.S. Highway 50 which is elevated overhead. It is open 24 hours a day, 7 days a week for monthly parkers and staffed during load-in for special events. It offers transient, monthly and special event parking with a daily maximum rate of $3.00, $55.00 or $65.00 per month, and special event parking ranging from $3.00 to $25.00, depending on demand. This lot provides convenient parking for the Great American Ball Park, US Bank Arena and the Taft Museum of Art. West Central and McFarland Lots The 32-space West Central Lot is located at 321 Central Avenue, on the west side of Central Avenue where McFarland ends. Across the street is the 29-space McFarland Lot located at 308 Central, the southeast corner of Central Avenue and McFarland Street. Portions of these lots are located underneath U.S. Interstate Highway 71 which is elevated overhead. It is open 24 hours a day, 7 days a week for monthly parkers and staffed during load-in for special events. It offers monthly parking for $65.00 per month and special event parking ranging from $20.00 to $30.00, depending on demand. This lot provides convenient parking for Paul Brown Stadium as well as businesses in the southwest portion of Downtown. The following table summarizes rates at off-street facilities. Daily, evening and weekend rates are expressed as maximum rates for their respective periods. Table 2: Summary of Off-Street Facility Rates
Facility Garfield Garage Fountain Square South Garage Gramercy Garage Broadway Garage Seventh Street Garage Third and Butler Lot L&N Loop Lot West Central/McFarland Lots Daily Evening Weekend $6.00 $2.00 $2.00 $15.00 $5.00 $5.00 $7.00 $1.00 $1.00 $8.00 $2.00 N/A $8.00 $2.00 $2.00 N/A N/A N/A $3.00 N/A N/A N/A N/A N/A Special Event Monthly N/A $95.00 $10.00 $195.00 N/A $100.00 $10.00 $135.00 $10.00 $90.00 or $130.00 $3.00 to $25.00 $65.00 $3.00 to $25.00 $55.00 $20.00 to $30.00 $65.00

Future Plans
The existing Seventh Street Garage is proposed to be replaced by the Sycamore Garage. The new Garage would have 725 parking spaces and 14,000 square feet of retail. The Concessionaire must use the existing design-build team comprised of Messer and Moody Nolan. Current estimated cost is $14.2 million. The Concessionaire would be responsible for financing and operating the Garage. Tax increment financing from the adjacent hotel project may be available to help finance the Garage. Note that if the adjacent hotel project is built, 200 spaces in the Sycamore Garage would need to be available for transient parking. This number may decrease if the hotel project is reduced in size. The Concessionaire may participate in the development and operation of future City parking facilities, however, the City retains the right to develop its own parking facilities. The following map illustrates where the Parking System or subject off-street facilities are located.

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Figure 1: Locations of Off-Street Facilities

Garfield Garage

Seventh Street/ Future Sycamore Garage Broadway Garage Third and Butler/L&N Loop Lot

Gramercy Garage

West Central/ McFarland Lots

Fountain Square South Garage

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Historical Parking System Revenues and Expenses
This section includes historical information for the five-year period ending December 31, 2011. To summarize, the Parking System generated over $32.5 million in net operating income during this fiveyear period, or an average of almost $6.5 million annually. Net operating income is equal to total parking revenue plus any rent and miscellaneous income, less any operating expenses.

Revenue
Revenue is comprised of parking revenue from the seven off-street facilities including monthly, transient (daily, evening and weekend) and special event parking, as well as revenues from the collection of onstreet meters and parking citations income. Revenue also includes rent and miscellaneous income collected over the 2007 to 2011 period. No advertising revenue is currently generated by the Parking System. However the Concessionaire will be allowed to sell advertising space inside the Parking System’s garages.

Operating Expenses and Net Income
The operating expenses for the facilities include all expenses related to the operation of the garages, surface parking lot and on-street meters. These expenses include the cost of personnel, supplies and equipment, routine repairs, maintenance, utilities, insurance and taxes. On-street meter expenses also include the cost of enforcement. Also shown are annual expenses paid to Hamilton County to handle adjudication and collection of parking tickets. The following table shows the annual revenue, operating expenses and corresponding net operating income for the years 2007 through 2011. During this period, gross revenue experienced a compound annual growth rate of over 2%, while operating expenses increased on the average of less than half of one percent per annum. The net income generated from the Parking System grew at an annualized rate of 3.5% during the five-year period.

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Table 3: Summary of Revenues, Operating Expenses and Net Operating Income (2007 to 2011)
2007 Revenue Off-Street Parking Revenue Garfield Garage Fountain Square South Garage Gramercy Garage Broadway Garage Seventh Street Garage Third and Butler Lot West Central/McFarland Lots Rent and Miscellaneous Garfield Garage Fountain Square South Garage Gramercy Garage Broadway Garage Seventh Street Garage Third and Butler Lot West Central/McFarland Lots Total Off-Street On-Street Meters Parking Tickets Total Revenue
1

2008

2009

2010

2011

2007 to 2011 Total CAGR

$749,458 $1,296,964 $578,646 $659,470 $274,487 $45,911 $49,708 $648 $130 $0 $342 $0 $0 $0 $3,655,763 $2,382,575

$783,874 $1,361,131 $581,979 $670,866 $267,494 $42,318 $57,055 $505 $132 $40,003 $160 $0 $0 $0 $3,805,516 $2,489,914

$837,816 $1,414,782 $570,868 $613,088 $274,921 $44,639 $61,735 $463 $124 $0 $170 $0 $0 $0 $3,818,605 $2,440,675

$852,019 $1,556,459 $574,284 $760,230 $289,146 $50,492 $59,445 $387 $112 $0 $991 $0 $0 $0 $4,143,564 $2,710,796

$926,636 $1,673,447 $566,786 $1,193,938 $311,281 $47,580 $71,724 $324 $325 $0 $721 $0 $0 $0 $4,792,763 $3,271,475

$4,149,803 $7,302,783 $2,872,564 $3,897,591 $1,417,327 $230,940 $299,667 $2,327 $823 $40,003 $2,384 $0 $0 $0 $20,216,211 $13,295,436 $21,339,042 $54,850,689

4.3% 5.2% -0.4% 12.6% 2.5% 0.7% 7.6%

5.6% 6.5% -3.7% 2.3%

$4,511,301 $4,930,995 $4,307,522 $3,844,455 $3,744,769 $10,549,640 $11,226,425 $10,566,803 $10,698,816 $11,809,007

Operating Expenses Off-Street Garfield Garage Fountain Square South Garage Gramercy Garage Broadway Garage Seventh Street Garage Third and Butler Lot West Central/McFarland Lots Total Off-Street On-Street Meters and Enforcement Contract with Hamilton County Total Operating Expenses Net Operating Income Off-Street Garfield Garage Fountain Square South Garage Gramercy Garage Broadway Garage Seventh Street Garage Third and Butler Lot West Central/McFarland Lots Total Off-Street On-Street Meters and Enforcement Net Operating Income
1

$821,852 $618,470 $423,718 $383,774 $185,144 $5,295 $2,642 $2,440,894 $1,631,385 $350,000 $4,422,279

$810,294 $638,118 $430,208 $397,582 $178,715 $5,966 $3,101 $2,463,985 $1,484,103 $350,000 $4,298,087

$844,266 $688,871 $431,089 $427,527 $207,103 $5,942 $6,979 $2,611,775 $1,652,893 $350,000 $4,614,668

$833,021 $634,689 $442,434 $425,036 $219,518 $23,149 $39,269 $2,617,117 $1,561,592 $350,000 $4,528,708

$895,540 $553,950 $396,962 $480,375 $251,674 $25,707 $21,787 $2,625,995 $1,546,086 $350,000 $4,522,081

$4,204,973 $3,134,098 $2,124,411 $2,114,294 $1,042,154 $66,059 $73,778 $12,759,765 $7,876,058 $1,750,000 $22,385,823

1.7% -2.2% -1.3% 4.6% 6.3% 37.2% 52.5% 1.5% -1.1% 0.0% 0.4%

($71,746) ($25,915) ($5,987) $19,385 $678,624 $723,145 $726,035 $921,882 $154,928 $191,773 $139,780 $131,850 $276,038 $273,444 $185,731 $336,185 $89,343 $88,778 $67,818 $69,628 $40,616 $36,352 $38,698 $27,343 $47,066 $53,954 $54,756 $20,176 $1,214,868 $1,341,532 $1,206,831 $1,526,448 $4,912,492 $6,127,361 $5,586,806 $6,928,338 $4,745,304 $5,952,135 $4,643,659 $6,170,107

$31,420 $1,119,822 $169,825 $714,284 $59,607 $21,873 $49,937 $2,166,768 $5,120,158 $7,286,926

($52,842) $4,169,508 $788,155 $1,785,682 $375,173 $164,881 $225,889 $7,456,446 $25,008,420 $32,464,866

N/A 10.5% 1.9% 20.9% -7.8% -11.6% 1.2% 12.3% 0.8% 3.5%

Parking ticket revenues in 2007 and 2008 are estimated. Actual values will be made available.

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The following table shows recent 12-month performance for the period September 1, 2011 through August 31, 2012. The Third and Butler Lot incorporates L&N Loop Lot revenues and expenses beginning in April 2012. For this period, revenues totaled $12.3 million, operating expenses totaled $4.8 million and net operating income totaled $7.6 million. Table 4: Summary of Revenues, Operating Expenses and Net Operating Income (9/11 to 8/12)
Total Revenue Off-Street Garfield Garage Fountain Square South Garage Gramercy Garage Broadway Garage Seventh Street Garage Third and Butler/L&N Loop Lot West Central/McFarland Lots Total Off-Street On-Street Meters Parking Tickets Total Revenue
1

$941,467 $1,673,929 $566,578 $1,297,570 $316,683 $135,915 $74,337 $5,006,479 $3,713,668 $3,624,540 $12,344,687

Operating Expenses Off-Street Garfield Garage Fountain Square South Garage Gramercy Garage Broadway Garage Seventh Street Garage Third and Butler/L&N Loop Lot West Central/McFarland Lots Total Off-Street On-Street Meters Contract with Hamilton County Total Operating Expenses Net Operating Income Off-Street Garfield Garage Fountain Square South Garage Gramercy Garage Broadway Garage Seventh Street Garage Third and Butler/L&N Loop Lot West Central/McFarland Lots Total Off-Street On-Street Meters Net Operating Income
1

$914,145 $578,231 $377,542 $550,783 $195,737 $53,647 $30,267 $2,700,352 $1,700,241 $350,000 $4,750,593

$27,322 $1,095,698 $189,036 $746,786 $120,946 $82,269 $44,070 $2,306,127 $5,287,967 $7,594,094

Estimated. Actual value will be made available.

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Downtown On-Street Transaction Volume
The following table illustrates monthly Downtown meter transaction volume from August 2011 through September 2012. Cash and credit card transactions are shown as well as the total for each month. Trailing twelve month (TTM) totals and averages are shown at the bottom. During the August 2011 to September 2012 period, approximately 19% of transactions were by credit card. Table 5: Monthly Downtown Meter Transaction Volume (August 2011 to September 2012) 

Period Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 TTM Total TTM Average

Cash Credit 187,979 27,955 154,330 27,582 149,580 29,263 135,001 27,740 151,222 31,236 140,146 31,103 149,037 34,568 161,701 38,864 151,292 36,620 161,372 40,645 155,008 37,974 148,681 35,527 164,738 40,562 140,852 36,470 1,808,630 150,719 420,572 35,048

Total 215,934 181,912 178,843 162,741 182,458 171,249 183,605 200,565 187,912 202,017 192,982 184,208 205,300 177,322 2,229,202 185,767

% Cash % Credit 87% 13% 85% 15% 84% 16% 83% 17% 83% 17% 82% 18% 81% 19% 81% 19% 81% 19% 80% 20% 80% 20% 81% 19% 80% 20% 79% 21% 81% 81% 19% 19%

Note: Off-street transaction volume will be made available.

Rate History
Off-street rates have had only one rate increase over the past decade, with a rate increase in 2010. Current rates and prior rates are shown in the next table.

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Table 6: Historical Rates at Off-Street Facilities

Facility Garfield Fountain Square South Gramercy Broadway 3rd & Butler L&N Loop Lot W. Central/McFarland

Monthly/Daily Previous Rate Current Rate Daily $5.00 max $6.00 max Monthly $90.00 $95.00 Daily $15.00 max $15.00 max Monthly $165.00 $195.00 Daily $6.00 max $7.00 max Monthly $90.00 $100.00 Daily $7.50 max $8.00 max Monthly $120.00 $135.00 Monthly N/A $65.00 Daily N/A $3.00 max Monthly N/A $55.00 Monthly $55.00 $65.00

The City increased Downtown parking meter rates from $1.00 to $2.00 an hour in August 2010.

Enforcement and Collection
The Concessionaire would have primary responsibility for ticket writing for meter-related violations. However, the Cincinnati Police Department will continue to exercise parking enforcement authority at its discretion. Enforcement of the City’s residential permit program, street sweeping restrictions and snow route enforcement will remain with the City. On-street meters are currently enforced Monday through Saturday from 9:00 AM to 5:00 PM. Sundays are free. The Concessionaire is free to make adjustments to parking meter enforcement hours throughout the City. Collection of traffic and parking citation payments, which excludes enforcement and the issuance of citations, is currently contracted out to Hamilton County (“County”). The cost of this agreement is $365,000 annually and is shown as a parking system expense. This agreement between the City and County is due to expire on March 31, 2014. The terms of the agreement also stipulate that this agreement may be cancelled by either party prior to the expiration provided that 12 months’ written notice of cancellation is given to the other party. The Concessionaire would be obligated to pay for the agreement for the first 12 months and then could choose to continue in a separate agreement with the County or provide adjudication and citation payment collection in another manner that is accessible to the citizens of the City. The Concessionaire will be responsible for collection-only parking violations and will not collect on moving violations. The following table shows tickets issued and collection percentage for parking citations from 2005 through August 2012.

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Table 7: Parking Citation Data (2005 to 2012, YTD August)

Year 2005 2006 2007 2008 2009 2010 2011 2012 (YTD Aug.)

Tickets Issued Unpaid Tickets Collection % 114,260 22,705 80.13% 100,912 18,098 82.06% 95,172 17,123 82.01% 104,026 14,804 85.77% 90,873 14,192 84.38% 78,642 15,691 80.05% 76,528 15,831 79.31% 49,935 14,993 69.97%

Amount Unpaid $1,653,080 $1,312,120 $1,234,150 $1,081,764 $1,320,760 $1,505,478 $1,487,084 $1,379,712

Defeasance of Debt
Five million in Economic Development General Obligation Bonds were issued in 2010 (Series 2010F of the 2010 G.O. Bond sale). The first principal installment of $150,000 was paid on December 1, 2011, and the second $150,000 principal payment will be paid on December 1, 2012. After December 1, 2012, the principal outstanding will be $4.7 million. Defeasance of this debt by the City will occur prior to transfer of assets to the Concessionaire.

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III.

Investment Highlights

The Parking System has been a stable source of revenue for the City of Cincinnati and although the City cannot make any guarantees, it is unaware of any future developments that would represent a significant threat to the continued stability of this revenue stream. The intent of the Agreement is to provide the highest possible level of customer parking experience and at the same time, maximize the City’s financial return from the Parking System, since a Concessionaire may be able to derive substantially more economic value from the asset while providing excellent service for Parking System users. Highlights of the Parking System include the following: 1. Stable Revenues and Growth. The Parking System has experienced strong growth over the past five years as revenue growth has outpaced operating expenses, as evidenced by the 3.5% compounded annual growth rate for net operating income. 2. Flexibility on Off-Street Rates and Hours of Operation. The Concessionaire will have the ability to phase in initial off-street parking rates with CPI-based or 4.5% per annum adjustments, whichever is greater, after the initial period and facility hours of operation as desired to reflect market and business conditions. 3. Flexibility on On-Street Rates and Hours of Operation. The Concessionaire will have the ability to phase in initial on-street parking rate increases with CPI-based or 4.5% per annum adjustments, whichever is greater, after the initial period and may adjust on-street meter hours of operation. Moreover, the potential exists to charge event parking rates at on-street meters outside of 9:00 AM to 5:00 PM weekday business hours. 4. Potential Metered Parking System Expansion. Approximately 300 on-street parking spaces included in the concession are not currently metered. 5. Potential to Generate Revenue through Advertising. The Concessionaire will have the ability to create a new revenue stream by selling advertising space within the Parking System garages. 6. Barriers to Entry for On-Street Parking. On-street metered parking spaces are some of the most highly desirable spaces due to their proximity to uses. The on-street metered parking system does not and will not have any other direct competitors. 7. Strong Regional Economy. Greater Cincinnati’s economy is diverse with no single industry sector accounting for more than 20% of employment, per the United States Bureau of Labor Statistics (“BLS”). The leading industry sectors in terms of employment are trade, transportation and utilities followed by professional and business services, then education and health services. Government, manufacturing and leisure and hospitality are also significant industry sectors. The economy has experienced strong year-over-year growth and per the BLS, the current unemployment rate projected at 6.7% in August 2012, is below the national average. 8. Geographic Diversity of Parking Facilities. The Parking System includes off-street facilities located throughout Downtown Cincinnati and on-street spaces located throughout the entire City. 9. Potential Efficiency Improvements through Technology Implementation. The Concessionaire will be able to improve the efficiency of facility operations, both off-street and on-street, through the introduction of revenue control systems that reduce the amount of labor required to collect revenue and offer additional payment methods such as credit card and pay-bycell, further enhancing the customer experience.

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IV.

Offeror Requirements and Evaluation Criteria

Upon receipt, the City of Cincinnati will assess each Offeror’s submittal in the areas of (i) technical capability and (ii) financial capability. The City may allow changes in the composition of an Offeror (e.g., joint venture, partnership, etc.) and may request clarification or amplification of any response to the RFP at any time.

Technical Capability
The evaluation of technical capabilities will address whether the RFP submission adequately responds to the technical capability requirements of the Agreement with respect to the following areas of expertise: • • • • • Customer service; Operation and maintenance; Parking facilities development; Safety and security; and Ability to undertake required capital improvements.

Financial Capability
The evaluation of financial capabilities will address whether the RFP submission adequately responds to the financial capability requirements of the Agreement with respect to the following areas: • • • Financial capability to pay the capital contribution due under the Agreement and maintain and upgrade the Parking System; Ability to raise financing without any contingencies; and Ability to fund, operate and maintain the Parking System.

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V.

RFP Submission Requirements and Procedure

RFP Submission Requirements
Offerors shall indicate their intention as soon as possible by returning a Letter of Interest via e-mail to the contact listed below. Upon receiving the Letter of Interest, the Offeror will be able to gain access to information needed to conduct due diligence of the Parking System. RFP submissions should comply with the format provided under “Format and Required Information for RFP Submission” below. Additional information not specifically related to the Agreement or this RFP should not be included. All questions or requests for information regarding this RFP should be directed only to the representative listed below. Please DO NOT contact any other officials or related parties at the City of Cincinnati. The City reserves the right to disqualify firms for making contact with someone other than the following designated representative. Mr. Jeffrey Colvin Parking Consultant Walker Parking Consultants 6602 E. 75th Street, Suite 210 Indianapolis, IN 46250 Phone: (317) 842-6890 Fax: (317) 577-6500 E-mail: [email protected]

No Liability for Costs and Hold Harmless
The City of Cincinnati and its employees, representatives, agents and advisors are not responsible for costs or damages incurred by Offerors, Teams, Team Members, subcontractors, or other interested parties in connection with the solicitation process, including but not limited to costs associated with preparing responses, qualifications, and proposals and of participating in any conferences, oral presentations, or negotiations. By participating in this offer, Offerors, Teams, Team Members, subcontractors, and other interested parties assume responsibility for verifying and testing the information provided herein and hold the City of Cincinnati and its employees, representatives, agents and advisors harmless from consequences arising from any misstatements of fact, whether these be material or otherwise. By submitting a response to this RFP, Offerors agree to not contest any selection made in response to this RFP.

Disclosure of RFP Responses Pursuant to a Public Records Request
By submitting a response to the RFP, the Offeror acknowledges that the City is governed by the Ohio Public Records Laws. Notwithstanding any statement in this RFP to the contrary, the City’s handling of any confidentiality or trade secret obligations are subject to the limitations of this paragraph. Records (as defined by Ohio Revised Code §§ 149.011 and 149.43) related to this RFP may be subject to disclosure under the Ohio Public Records Laws. It is incumbent upon the Offeror to mark or designate those portions of its response to the RFP that it considers to be a trade secret as defined under Ohio Revised Code § 1333.61. The City shall have no duty to defend the rights of Offeror or any of its agents or affiliates in any records requested to be disclosed. Upon receipt of a public records request, the City will notify Offeror of its intent to release records to the requestor. Offeror shall have a maximum of five (5)

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business days beginning with the date it receives notification to respond to the City by either accommodating the requestor or pursuing legal remedies to stop the City’s release of requested information. Said notification shall relieve the City of any further obligation under any claim of Offeror or any of its agents or affiliates in any jurisdiction in connection with the disclosure of such records. Offeror and its agents and affiliates shall have the right to pursue legal and/or equitable remedies to stop or limit disclosure at their sole expense.

Data Room
A Data Room will be available to assist Teams in their due diligence efforts and to provide additional information such as design, operating and maintenance standards. Access will be granted only after receiving a Letter of Interest.

Format and Required Information for RFP Submission
All RFP submissions should follow the format outlined below: 1. Cover Page (to include identification of all Team Members) 2. Cover Letter (2 pages maximum) 3. Table of Contents 4. Executive Summary (Optional) 5. Team Information a. Description of Offeror: Provide a description of the Team, including a description of all Team Members and the anticipated legal relationship (governance and capital structure) among the Team Members (e.g., partners, shareholders, client-consultants, subcontractors, etc.) as appropriate. All equity investors should be identified. b. Roles of Team Members and Key Personnel: Briefly outline the roles of the Team Members and key personnel. In doing so, please ensure that all the requirements as detailed in Section IV are addressed. c. Financier. Specifically identify the entity or entities that will act as the financier of the proposed Agreement. d. Operator. Specifically identify the entity or entities that will act as operator of the Parking System under the proposed Agreement. e. Maintenance Contractor. Specifically identify the entity or entities that will provide structural maintenance and repair services associated with the Parking System under the proposed Agreement. f. Contact Person: Provide a single contact person for all future communication between the Advisor and the Team. Please identify the contact person’s name, title, organization, address, telephone number, fax number, and email address.

g. Controlling Interest: Identify the individuals or companies who hold a major or controlling interest in each Team Member.

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h. Expected Advisors: Identify the companies and individuals who are expected to act as legal, financial, or other advisors for the Team. i. Comparable Projects: Provide a list of comparable projects in which Team Members have participated. Offerors should specify how these comparable projects relate to the proposed Agreement. References. Provide a list of Team Member References. These references should be able to describe the relevant qualifications and capabilities of Team Members seeking to take a leading role in the operation and maintenance of the Parking System.

j.

6. Technical Capability. capability:

Teams should address the following areas with respect to technical

a. Operations and Maintenance Expertise: Teams must provide evidence demonstrating their ability to operate and maintain a Parking System of this nature and scope. Specifically, the Team should have: i. substantial urban parking facility maintenance and operations experience, for both on-street and off-street facilities; ii. advanced knowledge of parking facilities maintenance, repair, construction, and practical application of equipment and materials in parking facility operations; iii. demonstrated understanding in parking facility aging behavior to assess and determine the applicability of remedial maintenance action; iv. all the capabilities necessary to successfully operate and maintain the Parking System including routine maintenance, operations management, parking fee management and operations, administration, marketing and public relations, and parking operations. b. Customer Service: Teams must demonstrate their commitment to achieving the highest standards of customer service and satisfaction. Specifically, the Team must highlight its experience and qualifications providing excellent customer service to the public. Teams may at their option include additional information concerning their experience in maintaining productive ongoing relationships with healthcare entities, similar to the relationship that the winning Offeror will have with the City. c. Safety and Security: Teams must demonstrate their ability to address and resolve safety and security issues. Specifically, the Team should have the following: i. knowledge of parking and public safety and security techniques and methodologies; ii. experience in emergency response support; and iii. expertise in relevant parking engineering standards, specifications, policies, practices, and processes. d. Capital Improvements: Teams must demonstrate their ability to efficiently undertake required capital improvements to the Parking System during the term of the Agreement.

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7. Financial Capability. Teams should address the following areas with respect to financial capability; moreover, additional requests for financial information by the City may occur throughout the evaluation process: a. The Team should provide enough financial information to demonstrate that they have the financial resources to successfully execute a project of this nature and scope. Specific factors that will be assessed include the following: i. capability of raising debt and equity in the current capital market; ii. the number and size of past relevant transactions; and iii. specific experiences on past relevant transactions. b. Financial Capacity to Maintain Parking System. The Parking Operator must demonstrate their financial capacity to fund and maintain the Parking System for the term of the Agreement. To demonstrate sufficient financial capacity, the Parking Operator must provide copies of audited financial statements for the past three years, together with any other relevant financial information. 8. Business Proposal. a. Financial proposals should be separated into two components, one for on-street facilities and one for off-street facilities. For each component, indicate a proposed upfront payment as well as revenue sharing options to include estimates of annual revenue to be shared with the City. For each revenue sharing option, identify the impact the revenue sharing option has on reducing the upfront payment, if any. Also, the off-street component proposal should offer a scenario that transfers the Seventh Street/Proposed Sycamore Garage as outlined herein and another where the City retains control of the Seventh Street Garage and handles development of the Sycamore Garage. b. Provide operating agreement and operating scope of services, including proposed rate structure for on-street meters and off-street facilities for each Parking System asset, for each of the thirty years. c. Document legal terms and conditions of the proposed Agreement. d. A summary of key deal terms is located in Appendix B. 9. Cincinnati/Local Experience in the past five years. a. List any experience in operating similar type parking facilities in the Cincinnati area. b. List any development experience in the Cincinnati area of similar scale and complexity as proposed Sycamore Garage. c. List any other projects the Team has partnered on in the past.

Consultant and Legal Counsel to the City of Cincinnati
Walker Parking Consultants is serving as a consultant to the City of Cincinnati and is not available to provide services to any Offeror or participate as a member of any Team. Frost Brown Todd LLC is serving as legal counsel to the City of Cincinnati and is not available to provide services to any Offeror or to participate as a member of any team.

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RFP Submission Instructions
Ten copies of the RFP submission and one electronic pdf copy (flash drive or CD format) should be delivered to the address shown below no later than 4:00 PM Cincinnati time on November 26, 2012. The City of Cincinnati may determine at its discretion whether to accept any responses that are not received by the date and time set forth in this paragraph. Deliver RFP submissions to: Mr. Jeffrey Colvin Parking Consultant Walker Parking Consultants 6602 E. 75th Street, Suite 210 Indianapolis, IN 46250

RFI Submission Instructions
All Requests for Information (“RFIs”) shall be submitted via email to: Mr. Jeffrey Colvin Parking Consultant Walker Parking Consultants E-mail: [email protected]

Post RFP Submittal Date
Prospective Offerors who are deemed qualified by the City, in its sole discretion, may be asked to participate in interviews and possible further due diligence. Following is the approximate timing for the process: Key Next Step Proposals Due Interviews, Possible Further Due Diligence Concessionaire Selection Expected Timing November 26, 2012 December 2012 December 2012

The City is interested in a proposal that best represents its interests, which may or may not be the proposal that offers the best financial return for the City. To the extent that the City accepts a proposal, it is anticipated that the financial close will be soon thereafter once parties have reached a mutual agreement. The City reserves the right to modify or terminate this solicitation at any stage if the City determines this action to be in its best interests. The receipt of proposals or other documents at any stage of the process will in no way obligate the City to enter into any contract of any kind with any party. Each change or addenda issued in relation to this RFP will be on file with the Consultant. In addition, to the extent possible, copies will be mailed to each person registered as having received a set of the RFP. It shall be the Offeror’s responsibility to make the inquiry as to changes and addenda issued. All such changes or addenda shall become part of the RFP and all Offerors shall be bound by such changes or addenda.

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APPENDICES Appendix A – Required Agreement Major Provisions Appendix B – Summary of Key Deal Terms

APPENDIX A – REQUIRED AGREEMENT MAJOR PROVISIONS
At their option, Offerors are encouraged to submit their own sample concession agreement for consideration by the City of Cincinnati in response to this RFP. The following are several major provisions that the City will require as part of the Agreement: Retention of Union Labor. The Concessionaire will interview and shall consider hiring current Division of Parking Facilities employees for similar positions in their organization. However, the Concessionaire is not required to hire any of these employees. Per Article 49 of American Federation of State, County and Municipal Employees (AFSCME) Collective Bargaining Agreement, the Concessionaire, City and AFSCME shall meet prior to transfer of parking assets to discuss bargaining unit member and union security issues. Payment of Taxes. The Concessionaire shall pay when due, all taxes payable with respect of the use, operations of, occupancy of, or conduct of business in or from the Parking System, including any real property taxes and parking taxes (if implemented in the future; when preparing their business proposals, Offerors should assume that a parking tax would trigger a “compensation event”) that the Concessionaire may be obligated to collect from customers of the Parking System. Indemnification by the Concessionaire. The Concessionaire shall indemnify and hold harmless the City of Cincinnati from and against any losses actually suffered or incurred, based upon, arising out of, occasioned by or attributable to (i) any negligence or willful misconduct of the Concessionaire; (ii) any failure by the Concessionaire to comply with, observe or perform any of the covenants, obligations, agreements, terms or conditions of the agreement (“Agreement”) to be negotiated and executed by the parties. Insurance Coverage Required. The Concessionaire shall provide and maintain at the Concessionaire's own expense, or cause to be maintained, during the term and during any time period following expiration if the Concessionaire is required to return and perform any additional work, the insurance coverages and requirements specified below, insuring the Parking System and all parking facility operations within the Parking System (the "Required Coverages"). (a) Workers' Compensation and Employer's Liability. The Concessionaire shall provide or cause to be provided Workers' Compensation Insurance, as prescribed by applicable Law, covering all employees who agree to provide a service and Employer's Liability Insurance coverage with limits of not less than $500,000 each accident or illness or disease. (b) Commercial General Liability (Primary and Umbrella). The Concessionaire shall provide, or cause to be provided, Commercial General Liability Insurance or equivalent with limits of not less than $25,000,000 per occurrence and in the annual aggregate, which limits may be met through a combination of primary and excess or umbrella policies, for bodily injury, personal injury and property damage liability. Coverage shall include the following: all premises and operations, products/completed operations, explosion, collapse, underground, separation of insureds, defense, terrorism (to the extent commercially available) and contractual liability (with no limitation endorsement). The City of Cincinnati is to be named as additional insureds on a primary, non-contributory basis for any liability arising under or in connection with the Agreement. (c) Automobile Liability (Primary and Umbrella). When any motor vehicles (owned, nonowned or hired) are used in connection with work to be performed, the Concessionaire shall provide or cause to be provided Automobile Liability Insurance with limits of not less than $10,000,000 per occurrence and in the annual aggregate, which limits may be met through a combination of primary and excess or umbrella policies, for bodily injury and property damage. The City of Cincinnati is to be named

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as additional insureds on a primary, non-contributory basis. (d) Garage Liability. The Concessionaire shall provide, or cause to be provided, Garage Liability Insurance with limits of not less than $25,000,000 per occurrence and in the aggregate, which limits may be met through a combination of primary and excess or umbrella policies, combined single limit, for bodily injury and property damage. Coverage extensions shall include Garage Keepers legal liability and pollution. The City of Cincinnati shall be named as additional insureds on a primary, noncontributory basis for any liability arising under or in connection with this Agreement. (e) Builder's Risk. When the Concessionaire undertakes any construction, maintenance or repairs to the Parking System, including improvements and betterments pursuant to this Agreement, the Concessionaire shall provide or cause to be provided, All Risk Builder's Risk Insurance at replacement cost for materials, supplies, equipment, machinery and fixtures that are or will be part of the Parking System. Coverage shall include, but not be limited to, the following: right to partial occupancy, boiler and machinery, business income, valuable papers and other consequential loss, when applicable with aggregate sublimits for catastrophic perils of earthquake, flood and named wind, which are the best available on commercially reasonably terms. The City of Cincinnati shall be named as additional insured and, subject to the claims of any leasehold mortgagee, as loss payee. (f) Professional Liability. When any architects, engineers, construction managers or other professional consultants perform work of a material nature in connection with this Agreement, the Concessionaire shall cause such professional consultants to provide Professional Liability Insurance covering acts, errors or omissions shall be maintained with limits of not less than $2,000,000; provided, however, that design-and-construction architects and engineers performing work of a material nature with respect to any such construction project undertaken by the Concessionaire pursuant to this Agreement must maintain limits of not less than $5,000,000 (to the extent commercially available). Any contractual liability exclusion applying to the policy shall not apply to the extent the professional would otherwise be liable for loss under the policy in the absence of a contract. When policies are renewed or replaced, the policy retroactive date shall coincide with, or precede, start of work in connection with this Agreement. A claims-made policy which is not renewed or replaced shall have an extended reporting period of two years. (g) Property. The Concessionaire shall obtain All Risk Property Insurance at full replacement cost, covering all loss, damage or destruction to the parking facilities system, including improvements and betterments, which insurance may be provided on a blanket basis with reported building values, which shall include the value of the coverage for the Parking System required hereunder. Coverage shall include the following: equipment breakdown; collapse; water including overflow, leakage, sewer backup or seepage; utility interruption; debris removal; business ordinance or law for increased cost of construction; extra expense; boiler and machinery; valuable papers; and, to the extent commercially available, terrorism and aggregated sublimits for flood, earthquake, and named wind. Coverage shall also include business income, which shall be subject to a limit that is separate from and in addition to the limit of full replacement cost for property. The City of Cincinnati is to be named as additional insured. Subject to the claims of any leasehold mortgagee, the City of Cincinnati is to be named as loss payee. The Concessionaire shall be responsible for any loss or damage to City of Cincinnati property at full replacement cost. The Concessionaire shall be responsible for all loss or damage to personal property (including materials, fixtures/contents, equipment, tools and supplies) of the Concessionaire unless caused by the City of Cincinnati.

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APPENDIX B – SUMMARY OF KEY TERMS
1. Subject Assets a. 6,000 on-street parking spaces (of which approximately 5,700 are metered); b. 545-space Garfield Garage; c. 396-space Fountain Square South Garage; d. 418-space Gramercy Garage; e. 623-space Broadway Garage; f. 260-space Seventh Street Garage to be replaced by proposed 725-space Sycamore Garage which may be completed by the successful proponent, using the design/build team selected by the City; g. 60-space Third and Butler Lot and adjoining 165-space L&N Loop Lot which are operated as one facility; h. 32-space West Central Lot; and i. 29-space McFarland Lot The following City-owned facilities are not included in the Concession: Fountain Square North Garage, Washington Park Garage, U-Square at the Loop Garage, Town Center Garage, Fifth and Race Lot, Third and Central Lot, John Street Lot and Renaissance Lot. 2. General a. 30-year deal term. b. Concessionaire to provide a minimum upfront payment to the City of no less than $40 million, of which at least $20 million is from the on-street component. Concessionaire should develop additional scenarios with revenue sharing provisions that include specific ongoing revenue estimates and identify impact on upfront payment, if any. c. Revenue sources for Concessionaire to include monthly and transient parking revenues from off-street facilities, on-street parking meter revenues and parking citation revenue. d. To the extent that technology is not already implemented to automate revenue collection, the Concessionaire may implement solutions. 3. Responsibilities of Concessionaire a. Operate assets in a first-class manner. b. Responsibly maintain existing facilities including routine maintenance and structural maintenance, as required. This may include capital expenditures for items such as concrete repairs, equipment replacement, lighting replacement, elevators, replacement of expansion joints and traffic membranes. The City will retain the right to inspect all facilities to determine Concessionaire’s compliance with this obligation. c. Maintain and return assets to the City in the same or better condition in which they were assumed at the origination of the Agreement. d. Pay operating expenses associated with off-street facilities and on-street meters in a responsible and timely manner. 4. Off-Street Provisions a. Concessionaire will honor existing lease agreements. b. Off-street rate increases to market are to be phased in over a three-year period which should be included in proposals. After the initial period, rates may increase at the higher of the U.S. Consumer Price Index for All Urban Consumers (“CPI-U”) or 4.5% per year. c. Off-Street operating days and hours will be at the sole discretion of the Concessionaire.

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d. Concessionaire may participate in the development and operation of future City parking facilities, however, the City retains the right to develop its own parking facilities. e. The City will increase rates to market in the facilities that are not covered by the Agreement. 5. On-Street Provisions a. Concessionaire will have the flexibility to install new meters on street, in areas not currently metered, subject to the City Manager’s approval. b. The $2.00 per hour Downtown on-street parking rates may increase at the higher of CPI-U or 4.5% per year. The $0.50 per hour neighborhood and Over-the-Rhine on-street parking rates may increase to $1.00 at the beginning of the Agreement and then may be increased at the higher of the CPI-U or 4.5% per year. The Concessionaire is encouraged to propose new onstreet special event rates that could be charged during evenings and weekends except from 8:00 AM to 5:00 PM, Monday through Friday. c. No specific type of equipment or form of payment will be required. However, given the similarities between wayside streetcar ticket vending machines and on street pay-and-display parking meter technology and operations, the City is interested in exploring the possibility of a contractor who may provide services to fulfill both streetcar ticket vending and on-street parking ticket vending. d. Concessionaire may determine days and hours of operation and enforcement. When unique special events occur (such as VIP political visits), the Concessionaire will need to coordinate with the City. 6. Enforcement and Adjudication a. Concessionaire is expected to take over enforcement and adjudication related to on-street parking meters but excluding traffic citations. Concessionaire will not adjudicate parking until City's contract with the County expires or is cancelled. b. Concessionaire will retain revenue from on-street parking meter citation payments collected, including those from delinquent parking citations. c. Booting will be allowed. d. The Cincinnati Police Department will continue to have parking enforcement authority. Enforcement of the City’s residential permit program, street sweeping restrictions and snow route enforcement will remain with the City. The City would retain citation revenue for all parking violations not related to metered parking. 7. Personnel a. Concessionaire to consider but will not be required to hire existing City parking staff. b. The City's living wage ordinance will not apply to the Concessionaire's employees.

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