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A resolution approving the execution of the Third Amendment to the Agreement between the Metropolitan Government and the Nashville Downtown Partnership, amending their original contract, and the first and second amendments to it, and extending its term.
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WHEREAS, the Metropolitan Government of Nashville and Davidson County (“Metro”) owns certain public parking facilities in the downtown Nashville area; and,
WHEREAS, Metro and the Nashville Downtown Partnership (collectively, the “Parties”) previously entered into a contract on June 7, 2017 (“the Contract”) for the management of Metro’s parking facilities; and,
WHEREAS, the Contract was approved by Council by Ordinance No. BL2017-709, and Section 2 thereof stated, “any amendment to the Contract may be approved by resolution of the Metropolitan Council receiving at least 21 affirmative votes;” and,
WHEREAS, the Parties entered into the First Amendment amending the Contract on March 13, 2018 (“the First Amendment”), and Council approved same by adopting Resolution No. RS2018-1108; and,
WHEREAS, the Parties entered into the Second Amendment amending the Contract on June 9, 2022 (“the Second Amendment”), and Council approved same by adopting Resolution No. RS2022-1584; and,
WHEREAS, the Parties now wish to further amend the Contract, the First Amendment, and the Second Amendment, and to extend the term of the Contract, by entering into the Third Amendment to the Agreement between the Metropolitan Government and the Nashville Downtown Partnership (the “Third Amendment”); and,
WHEREAS, the Metropolitan Traffic and Parking Commission recommended approval and execution of the Third Amendment during their meeting on November 13, 2023.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the Third Amendment to the Agreement between the Metropolitan Government and the Nashville Downtown Partnership, attached hereto, is hereby approved and execution thereof by the Director of the Nashville Department of Transportation and Multimodal Infrastructure or her designee is hereby authorized.
Section 2. That this resolution shall take effect from and after its final passage, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This late resolution approves an amendment to a contract between the Metropolitan Government and the Downtown Partnership (“NDP”) for the management of public parking facilities of Metro.
Metro has had a contract with the NDP for operation of parking garages since 2002. Ordinance No. BL2017-709 approved a contract between Metro and the NDP for the management of the Church Street Garage and the Public Square Garage. In addition to these two garages, the NDP also operates the shuttle program, consisting of parking and shuttle transportation for the parking lots surrounding Nissan Stadium, including lots used primarily for parking by Metro employees. Pursuant to that original agreement, the NDP is paid $5,250 per month for operation of the Church Street Garage and $3,750 per month for operation of the Public Square Garage. The agreement further provides that amendments to the contract can be made by resolution.
The first amendment was approved pursuant to Resolution No. RS2018-1108 and added management of the Howard Complex Parking Garage and surface parking lot located at 806 President Ronald Reagan Way and delegated the management of the bike share initiative and right-of-way landscaping maintenance to the NDP. NDP is paid $1,250 per month for the management of the Howard Complex Parking garage. The second amendment was approved pursuant to Resolution No. RS2022-1584 and extended the term of the agreement by 18 months, from 60 months to 78 months, updated references from the Department of Public Works to the Nashville Department of Transportation and Multimodal Infrastructure, and removed NDP’s management of the bike share initiative from the contract.
The resolution under consideration approves the third amendment to the contract. The amendment extends the end term of the agreement by one year, from December 7, 2023, to December 7, 2024. The amendment also extends the timeframe within which the annual audit of parking operations at each parking facility managed by NDP must be completed from within 60 days from the end of the reporting year to within 90 days from the end of the reporting year. Finally, the amendment modifies the contract provision regarding surplus revenues allocated to the NDP to require these revenues to be used for capital expenditures and other downtown improvements, that all unspent allocated surplus revenues revert to Metro’s use, and that all surplus revenues allocated for parking and downtown projects be available for that purpose until depleted or the end of the fiscal year, whichever comes first. Pursuant to Section 11.907 of the Metropolitan Charter, all revenue collected by Metro relating to parking must be used for traffic and parking improvements.