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A resolution approving Amendment Number 1 to the contract between the Metropolitan Government of Nashville and Davidson County and LAZ Parking Georgia, LLC (“LAZ”), for the operation and management of the on-street metered parking program within the public rights-of-way of the Metropolitan Government.
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WHEREAS, on or about December 30, 2021, following a competitive bidding process (RFQ # 98182), the Metropolitan Government notified LAZ of its intent to award a contract to it for the operation, maintenance, and management of Metro’s metered parking system, contingent upon successful contract negotiations (“the Contract”); and,
WHEREAS, the Metropolitan Government’s contract negotiations with LAZ were successful and the Contract was subsequently recommended for approval to the Metropolitan Council by the Metropolitan Traffic and Parking Commission; and,
WHEREAS, BL2022-1475 approved the Contract (Contract Number 6518929) and an accompanying lease agreement allowing LAZ to lease Metropolitan Government property for use as an office space in performance of the metered parking program functions; and,
WHEREAS, as set forth in Amendment Number 1, attached hereto, the parties desire to modify certain terms and conditions of the Contract so that the Metropolitan Government, by and through the Nashville Department of Transportation and Multimodal Infrastructure, may perform all aspects of parking enforcement, pursuant to Section 3.2(e)(v) of the Contract; and,
WHEREAS, BL2022-1475 authorized the Metropolitan Council to approve amendments to the Contract by resolution; and,
WHEREAS, it is in the best interest of the Metropolitan Government of Nashville and Davidson County that Amendment Number 1 to the Comcast Contract be approved.
NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1: That Amendment Number 1 to the contract between the Metropolitan Government of Nashville and Davidson County and LAZ Parking Georgia, LLC, for the operation and management of the on-street metered parking program within the public rights-of-way of the Metropolitan Government, attached hereto and incorporated herein, is hereby approved.
Section 2: Any amendments, renewals, or extension of the terms of the agreement may be approved by resolution of the Metropolitan Council.
Section 3: That this resolution shall take effect from and after its adoption, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This resolution approves the first amendment to a contract between the Metropolitan Government (“Metro”) and LAZ Parking Georgia, LLC (“LAZ”) for the operation and management of the on-street metered parking program within public rights-of-way. The Metropolitan Council approved the original contract (“the Contract”) through Ordinance No. BL2022-1475. BL2022-1475 provides that amendments to the Contract may be approved by resolution.
Section 3.2(e)(v) of the Contract provides that Metro retains the right to perform all aspects of parking enforcement, which Metro desires to do. The amendment under consideration makes various changes to the Contract to effectuate Metro’s performance of all aspects of parking enforcement. The proposed amendment would update the Contract’s annual management fee accordingly. In Year 3 of the Contract, the annual management fee would be reduced from $90,000 to $45,000. In Year 4 of the Contract, the annual management fee would be reduced from $105,000 to $52,500. In Year 5 of the Contract, the fee would be reduced from $120,000 to $60,000.
The proposed amendment would also update the Contract’s pricing for an additional performance fee, which was $30,000 each year based on performance measures established in Schedule 13 to the Contract. The proposed amendment provides that no additional performance fee would be paid in Years 2 and 3 of the Contract. Metro would pay a performance fee not to exceed $17,000 to LAZ in Years 3 and 4 of the Contract.
The proposed amendment would also remove Schedule 13 to the Contract, “Key Performance Indicators”, that would no longer be applicable due to this amendment.
Fiscal Note: This amendment to contract number 6518929 reduces the annual management fee paid to LAZ Parking Georgia, LLC beginning in Year 3 from $90,000 to $45,000, Year 4 from $105,000 to $52,500 and Year 5 from $120,000 to $60,000 due to the change in parking enforcement. In addition, the amendment would remove the performance fee for Years 2 and 3 and reduce the performance fee for Years 4 and 5 from $30,000 to $17,000.