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SR-07-14-2015-3KID City Council Report City of AY 9 Santa Montle City Council Regular Meeting: July 14, 2015 Agenda Item: To: Mayor and City Council From: David Martin, Director, Transportation Engineering & Management (PCD) Subject: Request for Authorization to Negotiate and Execute a License Agreement with Macerich SMP LP, for Parking Equipment Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a new license agreement with Macerich SMP LP (Macerich), a Delaware limited partnership, for up to 10 years to install, maintain, and operate parking equipment. This will result in a five year agreement, with one five year option to renew. Executive Summary In 2010, the City entered into a five year agreement with Macerich to install, maintain, and operate parking equipment in Parking Structures 7 and 8. The equipment directs visitors to available parking spaces, provides dynamic available space count signage at entrances to and decision points within each structure, and also provides self - service kiosks to help visitors locate their vehicles. The agreement expires on August 1, 2015. Staff recommends that Council authorize a license agreement for up to five years to continue service with Macerich, with one five -year option to renew. The costs of installation, maintenance, and operation of this equipment are fully borne by Macerich. There is no immediate financial impact or budget action necessary as a result of the recommended action. Discussion On September 17, 2010, the City entered into a five year agreement with Macerich to install, maintain, and operate Park Assist® parking equipment in Parking Structures 7 and 8. The equipment directs visitors to available spaces within the structures using dynamic signage at each entrance and decision point within each structure. The system also uses overhead red and green lights to direct users to available spaces and provides self - service kiosks to help visitors find their vehicles within each parking structure. The agreement expires August 1, 2015. While not integral to traditional parking operations, Macerich requested the ability to 1 of 3 provide this added service as an amenity to their visitors. Macerich continues to value the service this equipment provides to visitors of Parking Structures 7 and 8 and requests a new license agreement to continue this service. The equipment is owned by Macerich and the costs of installation, maintenance, and operation of this equipment are fully borne by Macerich. An agreement is necessary because the installation of the equipment in a public parking structure is a disposition of City property. If a new license agreement is approved, Macerich plans to upgrade the current system to a newer model. The newer model is faster, more accurate, uses less energy, and provides enhanced reporting capabilities. Staff recommends a five year base term, with one five year option to renew as the anticipated lifespan of the equipment is eight years. 2 of 3 Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Prepared by: Jason Kligier, AICP, Parking Administrator Prepared By: Jason Kligier, Parking Administrator Approved . .e Davla Martin, Dire ` 7/2/2015 Elaine M Polachek, Asst. City Manager 7/6/2015 3of3 Reference: Agreement No. 10096 (CCS)