Meter Summary For The City of Columbia, MO

Presented by: Parkeon Overview

What does the City of Columbia want from meters? Technology is changing, will your meters keep up? Parkeon, the global leader in multiple space parking meters, continues to plan for the future by spending several million dollars annually on Research and Development. An example of this is our latest touch screen meter that is driven by a Linux operating system. This allows for easy integration for solutions such as transit ticketing, pay by plate, mapping and Amber Alerts. The following information provides several possibilities on where you may want to take your parking…we are here to work with you to determine the right suite of solutions for the City of Columbia. Parkeon’s Vision for Columbia

Parkeon’s approach for Columbia starts with the goal of protecting your investment, both today and in the future. This means providing you with the power to upgrade your system to meet the changing needs of the Columbia market. It also means that you will have the ability to utilize the Parkeon system not just for parking applications, but any application that is useful for an on-street networked kiosk. Now you can use your parking infrastructure to give residents an enhanced user experience by offering additional features to make their lives easier.

We start with changing the way we look at the multi-space parking meter. In today’s market, pay stations have software inside to allow them to adequately sell parking to motorists. This is restrictive and doesn’t allow for quick and easy installation of new and exciting applications outside of parking. And, once you’ve invested in a specific machine, you are typically stuck with that technology for years and years.

Parkeon is moving out of the box. Our solution is to take the main intelligence out of the pay station and put that intelligence onto our servers. First, this lets you buy the machine casing and main components but gives you the opportunity to upgrade the software over and over for as long as you like. Second, this allows us to provide a kiosk that is open to offering a multitude of services beyond parking, and gives you the benefit of future proofing your investment by adding these services over time. Examples of these services are:

- Sale of public transportation fares (bus, train, etc) - Acceptance and reload of various smart card solutions - Advertising from local businesses - Public information to residents and tourists - Call of taxi cabs from the pay station - And, of course, new parking services as well such as citation payment on the meter

The unique piece of this solution that will really benefit Columbia is that the system is open to the City or a partner to develop its own special applications. We will provide software development kits (SDKs) to the City so that you can upgrade on the fly and utilize the pay stations as effectively as possible. A Full Line of Pay Stations for Extreme Flexibility

We want to make sure Columbia is aware that Parkeon has various options to handle not only parking, but other services that could be interesting for your motorists. This range is as follows:

CITYPAL Strada ID Line Strada Line (BNA, Rapide, Transfer)

With this full range of products, you will have the ability to mix and match based on functionality of the pay station as well as the price. For example, CITYPAL is the perfect machine to put in the center of the City to provide information to tourists such as maps and places of interest. The Rapide and Transfer units accept coins and cards only but are a very economical choice. The product range is scalable as you grow and as we add features to our offer.

The system we are proposing to Columbia is built using the knowledge and experience we have gained by working with cities such as Columbia for over 20 years. The design of the system is meant to allow for you to build the system you want over the long term and provide:

• Flexibility for the City to make system changes (ie rate changes) as needed without having to call Parkeon every time • A more friendly parking experience for your customers • Two-way real time data exchange between the machines and the back-office • Reliability and security level you expect of Parkeon machines • Significant cost savings over the short and long term

Back-End Flexibility with myParkfolio

By taking advantage of more advanced multi-space meter technology through the Strada ID system, Columbia will have the power to control the units as needed. Through the myParkfolio interface you are already familiar with, you will not only have the ability to monitor meter status and produce various reports, but you can change rates, displays, and receipt layouts when you want with an easy to use tool. Rate Changes on Demand

With Parkeon’s new rate editor and download module, Columbia will be able to modify rates on the fly without having to come back to Parkeon to make the change. If you have a special event coming up, your team will have the power to edit the rate on the machine and send the download to the unit in real-time. If you are trying to manage parking congestion, you can use myParkfolio data to understand the parking trends in the City and then make adjustments to rates at certain times of the day.

Present New Information to Your Customers

Through myParkfolio, Columbia will be able to change messages on the machine display screens and download them remotely. This is the perfect tool to make the public aware of a special event coming up in the City, a pending change to parking regulations, news about road closures, and more. This tool can also be used to place advertising on the displays in order to generate more profitable revenues for the City. You can also present new information to customers via parking receipts. Make changes right on myParkfolio and download the new ticket to Strada ID. In addition to public information, receipts are a great way for businesses to advertise via a printed coupon. Knowing that the City can change the receipts as needed, makes implementing an advertising program much easier.

Fast Reports through Real Time Data

With the Strada ID system, all transactions, warnings, alarms, and collection information is sent in real- time from the units to myParkfolio. You now know at all times exactly what is happening in your park. This makes the myParkfolio hot-line module very effective. When a customer calls in and gives you the machine number, you can easily figure out if there is truly a problem with the machine. Real time data also gives your collection team the exact status of your cash boxes at the time you check, so you can send a collection staff member out if there is machine that needs immediate collection. Reconciliation of collections is also much easier with our real-time transactions feature. An additional feature we will provide is the ability to have an automatic daily export of all transaction data into Excel so that you have access to all your data very quickly to create the custom reports you need.

Transactions Mapping – View color coded meter map to see which areas of your City have high, low, or average performing meters to make decisions on parking policies. Zoom in to get detailed transactions information.

Build the System You Want With Parkeon

By continuing your partnership with Parkeon, you have the flexibility to build a system through us that takes advantages of integrations we have already completed or are currently working on. This allows you to quickly implement solutions without waiting for development to happen. Parkeon has the following integrations:

• Pay-by-Cell - Integrations with Parkmobile and Verrus allowing for integrated enforcement and extension of parking time remotely

• Vehicle Sensors - Integration with StreetSmart Technologies

• Citation Management - Integrations with Duncan Solutions, T2 Systems, and Complus Data

• Single Space Meters - Integration with IPS Group

• Motorist Guidance - Integration with Parking in Motion

• Electric Vehicle Charging - Integration with Schneider Electric

• License Plate Recognition - Integration pending with Genetec (AutoVu)

Pros and Cons of MSPMs and SSPMs

There are pros and cons to both single space and multiple space meters. While Parkeon only manufacturers multiple space parking meters, we have integrated with IPS to provide a single back office management solution through myParkfolio for cities so that they can provide a blended parking program. Several Cities such as Austin, and Fort Worth are all rolling out blended meter programs.

A few reasons for a blended program:

• Acceptance-late adopters will still have a single space parking meter to park at • Coverage-Multiple space parking meters (MSPMs) provide cost effective coverage for 5-15 contiguous spaces. Single space parking meters (SSPMs) can cover areas that are not conducive for MSPMs.

The main advantage of a credit card accepting SSPM is that people are familiar with SSPMs so can easily convert to using one that accepts credit cards but the added costs and lower revenue increase do not outweigh the benefits.

Why Multi-Space Meter Technology Empirical data from cities that have replaced traditional single- space parking meters with Parkeon’s multi-space pay stations achieve a 20-40% increase in parking meter revenue. For example, the City of Seattle increased its revenue by 40% as a direct result of converting their single-space meters to Parkeon’s multi-space pay stations.

Information from other cities indicates that the impact of multi-space meter technology has been positive in a significant way. For instance, Baltimore, MD experienced a 54% increase in revenue after converting its traditional single space meter system to multi-space pay stations. Washington reported at 35% increase and Portland, OR 30%. Hartford, CT and Austin, TX reported improved revenue performance as well as increased turnover in parking spaces and customer satisfaction.

Vs.

Additional Revenue through Automatic Zeroing out of Time: Parkeon pay stations do not allow users to “piggy-back” on existing time on the meter. So each transaction is a new transaction starting from zero. This can bring you anywhere between 30%-40% additional revenue vs. single space meters, and our system does not require the installation of any special vehicle sensing technology.

No Additional Transaction Fees: A city with over 1,000 spaces will save over $1 million in transaction fees over 10 years with Parkeon multi-space meters because we don't charge a per transaction credit card fee. With single space meters you are more than likely going to see a $0.09 per credit card transaction fee imposed by the meter vendor on top of your bank fees. Transaction fees also require additional reconciliation on your part to determine if each one is legitimate.

Improved Streetscape: One multi-space meter controls 10 spaces. You can wipe the old parking meter posts away and have a clean, uncluttered street view.

Uncluttered street with Parkeon pay station

More Spaces = More Revenue: If you go with a Pay & Display system you get more parking spaces per block (no space lines needed), thus more cars can park and the city makes more revenue! Of course, our pay stations can operate in Pay & Display or Pay-by-Space configuration – your choice!

Less Maintenance: The Maintenance Dept. will only have to maintain 100 to 200 pay stations instead of 1,000 to 2,000 meters because pay stations control 10 spaces per block face! You can use your maintenance staff for other services (i.e. parking enforcement).

Less collection time: The city will only have to collect from 100 to 200 pay stations instead of 1,000 to 2,000 single space meters. Our cash box holds $800 in quarters, more than 10 single space meters can hold.

Proof-of-payment: Multi-space meters can provide a receipt as a proof of payment. Single space meters do not. Consumers like receiving receipts, especially on credit card payments.

Receipts For Cash Auditing: After each cash collection, the pay station prints a collection receipt detailing the amount of cash collected (down to the quantity per denomination if you’d like) for auditing purposes. Of course, this information is also sent wirelessly to our back-office system. Coin Return: Parkeon multi-space meters feature a cancel button and coin escrow, so if a customer pays money and wants to cancel their transaction, they can get their money back. This is not the case for single space meters.

Less Risk of Stolen Meters: Stolen single space parking meters are constantly in the news which, of course, means lost revenue. We can provide you with a number of articles to prove it. On the contrary, multi-space meters weigh 200 to 300 lbs, making them almost impossible to steal.

Total Cost Of Ownership Comparison Number of Parkeon Machines 200 Number of IPS Meters 2000

For this analysis we assume that one Parkeon multi-space pay-station would be required for every nine (on average) single-space meters:

Capital Equipment Cost

Assumptions:

Cost per meter includes equipment, installation, and training Cost/Meter Purchase Price Single Space $600 $1,200,000 PARKEON $7,000 $1,400,000 Cost Difference -$200,000

Credit Card Transaction Fees

Assumptions:

Single Space Providers have a transaction fee of $0.13 per transaction (in addition to bank fees)

Each single space meter will generate an average of five credit card transactions per day, 5 days a week

Credit Card Credit Card Annual Trans. Fee Trans/Day Days/wk Trans. Fee Single Space $0.09 5 5 $234,000 PARKEON $0.00 5 5 $0 Cost Difference $234,000

Monthly Back-Office Fees

Assumptions:

Pay and Display Monthly Total Total Fee/Meter Monthly Fee Annual Fee Single Space $5.75 $11,500 $138,000 PARKEON $45 $9,000 $108,000 Cost Difference $30,000

Collection and Maintenance Costs Assumptions:

A typical town dedicates 64 hours per week for collections and maintenance of SSPMs

With 150-200 Parkeon Pay Stations, the city would dedicate 40 hrs per week for collections and maintenance

Hourly rate of $30 per hour (includes salary and benefits)

Hours Annual per week Hourly Rate Cost Single Space 64 $30 $99,840 PARKEON 40 $30 $62,400 Cost Difference $37,440

Battery Costs Assumptions: Batteries on pay stations cost $181 and last 3 years before replacement Batteries on Single Space meters cost $29 and last 3 years before replacement Battery costs realized in years 3, 6, and 9

Year 3 Year 6 Year 9 Total Battery Battery Battery Battery Cost Cost Cost Costs Single Space $58,000 $58,000 $58,000 $174,000 PARKEON $36,200 $36,200 $36,200 $108,600 Cost Difference $65,400

Ticket Roll Costs Assumptions: Assumes that each pay station will use 3.5 ticket rolls per year. Annual Ticket Roll Ticket Roll # of Meter s Cost Cost Single Space 2000 $0 $0 PARKEON 200 $44 $30,800 Cost Difference -$30,800

TOTAL COST ANALYSIS Five Year Year 1 Year 2 Year 3 Year 4 Year 5 Total Single Space $1,671,840 $471,840 $529,840 $471,840 $471,840 $3,617,200 PARKEON $1,601,200 $201,200 $237,400 $201,200 $201,200 $2,442,200

Savings with Parkeon $70,640 $270,640 $292,440 $270,640 $270,640 $1,175,000

Ten Year Year 6 Year 7 Year 8 Year 9 Year 10 Total Single Space $529,840 $471,840 $471,840 $529,840 $471,840 $6,092,400 PARKEON $237,400 $201,200 $201,200 $237,400 $201,200 $3,520,600

Savings with Parkeon $292,440 $270,640 $270,640 $292,440 $270,640 $2,571,800

Over a 5 year p eriod, Parkeon would save the City of Columbia $1,175,000 vs. a single space system

Proposal Summary There is no need for the City of Columbia to enter into a contract that requires any up-front payment to upgrade it parking meter system, or to sacrifice its recurring parking meter revenue that it has enjoyed over the years. Parkeon has established a network of investors who are familiar with the parking industry that will provide the necessary capital funding.

• No Capital Expenditure: At no cost to the City of Columbia, the Parkeon Team will replace all single pace meters with modern, solar powered meter technology. The Parkeon multi-space meter system will be fully funded, and the Parkeon Team will provide all meter equipment, warranty, spare parts.

• No Monthly Expense: The Parkeon Team will provide all back-office monitoring services at no cost to including back-office access, wireless communication and credit card transaction fees.

• Revenue Stream: The City of Columbia and the investors will share in the parking revenues as negotiated in the Term Sheet.

• Warranty, Consumables, Spare Parts: Throughout the duration of the contract all meters will remain under full warranty, including parts. The Parkeon Team will provide all receipt paper and batteries necessary to maintain continuous operation of all units, and keep an appropriate level of spare parts on hand to maintain continuous operation of all meters.

• Your Field Staff: The City of Columbia will keep its current field meter staff in-place to perform maintenance, collection and installation.

• Implementation: The Parkeon Team will train and certify your field staff to prepare for and install the new meters. The Parkeon Team will train and certify the City’s meter team to insure all multi- space meters remain operational and properly maintained.