You are on page 1of 2

115 Broad Street 3rd Floor Boston, MA 02110 (617) 956-1101 Fax (617) 482-6817

August 17, 2011

Via Hand Delivery Mr. Patrick J. Blanchette Chief Economic Development Director City of Lawrence - Office of the Mayor 200 Common Street Lawrence, MA 01840 Re: City of Lawrence Parking Management Services Price Proposal (Revised 2011-08-17) Dear Mr. Blanchette: SP Plus Municipal Services, a division of Standard Parking Corporation (NASDAQ:STAN), is pleased to present the revised price proposal to provide parking management services to the City of Lawrence. Our proposal complies with the terms of the RFP specs and our offer is firm and valid for 180 days. As a leading national provider of Municipal Parking Services including parking enforcement, ticket processing, meter and citation collections, parking meter and facility maintenance, parking studies and all associated activities dealing with municipal parking, we are uniquely qualified to partner with the City of Lawrence to provide the cost-effective, first-class parking services requested in the RFP. We are proposing a comprehensive financial offer to the City of Lawrence, which includes guaranteed rent and a revenue share percentage rent that can potentially exceed $1,000,000 annually upon full implementation of 120-multi space meters as outlined in the RFP specs and our proposal. We believe that our proposed compensation model will foster a true partnership for all stakeholders with the launch of a new paid on-street parking program. The enclosed chart summarizes our revised projected revenues and rent payments to the City of Lawrence generated through the new paid on-street parking program. Thank you for the opportunity to submit our proposal and we look forward to the opportunity to present our proposal in person. Sincerely,

Michael V. Tepper Senior Vice President

Proposed Concession Rent to the City of Lawrence (Revised 2011-08-17)


SP Plus Municipal Services is pleased to design, implement and operate a comprehensive on-street parking management program on behalf of the City of Lawrence. Under this arrangement, SP Plus Municipal Services will invest captial resources to provide the City of Lawrence with approximately 120 multi-space meters for Phase 1 of this program, meter signs and poles, enforcement tools and vehicles, collection equipment, and back office systems and databases to effectively implement and operate an on-street parking management program.

Year 1 Meter Collections Revenue Violation Revenue (meter zone only) Net Gross Revenue $1,090,800 $1,221,643 $2,312,443

Year 2 $1,123,524 $1,258,292 $2,381,816

Year 3 $1,157,230 $1,296,041 $2,453,271

Year 4 $1,191,947 $1,334,922 $2,526,869

Year 5 $1,227,705 $1,374,970 $2,602,675

5 Year Total $5,791,205 $6,485,869 $12,277,074

City of Lawrence Compensation Structure


Annual Base Rent (Guarantee) Revenue Threshold (90% over Revenue Threshold) Revenue Percentage Rent Total Rent to City of Lawrence $400,000 ($1,400,000) $821,199 $1,221,199 $400,000 ($1,442,000) $845,835 $1,245,835 $400,000 ($1,485,260) $871,210 $1,271,210 $400,000 ($1,529,818) $897,346 $1,297,346 $400,000 ($1,575,712) $924,267 $1,324,267 $2,000,000 N/A $4,359,857 $6,359,857

Note: Violation revenues are calculated on the recent citation/fine increased approved by City Council (overtime from $15.00 - $25.00 and disabled parking from $50.00 to $100.00)

You might also like