Tag Archives: finance

Online Instructor Led Course: Finance & Auditing for Parking, Transportation, and Mobility Pros

Two Day Course:  September 15 & 17, 2020

 

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Overview:

This session is a comprehensive financial foundation for anyone involved in parking and mobility.  It will cover fundamental finance and accounting concepts with a specific reference marking and mobility budgets, including. financial reporting, budgeting, bond basics, Metrics (KPI’s), Captial Planning, Auditing, and the importance of stakeholder involvement.

At the completion of this course you will be able to:

  • Interpret and develop a financial report
  • Recognize why bond basics is a primary means to raise capital
  • Develop an audit checklist for your organization
  • Create a dashboard with metrics

 

Presenter: Samuel Veraldi, CAPP

Sam Veraldi Bio pic

Sam Veraldi, CAPP is Vice  President of Consulting Services at SP+ Corporation. He formerly served as the Director of Parking and Transportation at Duke  University and a Practice Builder with Kimley Horn.  Sam has been teaching in the CAPP curriculum since 2015 and is a member of the Research Committee with the International Parking & Mobility Institute (IPMI). He has been teaching finance at Duke for more than 20 years, and has over 20 years Senior Finance experience with IBM and GE Capital.

 

 

Course Credits: 4 CAPP Points for Candidates and 4 CAPP Points for recertificants in Program Type 5.

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Free Online Shoptalk: Municipalities, Finance, & Recovery: Current Challenges and Next Steps

Wednesday May 13, 2020- 2:00 PM EST

Free Online Shoptalk: Municipalities, Finance, & Recovery: Current Challenges and Next Steps

Pre-Registration is required to attend.

Free to all Industry Professionals

Access the Recording here

 

Join IPMI for our next online Shoptalk diving into cars, cash, and financial impacts to operations. Open to all, moderator Tiffany Smith will lead the group in discussions centering on three key questions. First, discuss of the impact to the short-term financial picture, including revenue, plans to streamline operations to cover losses, and anticipated changes to programs and policies for recovery. Second, address changes to consumer and patron behavior, your expectations of demand in the immediate and longer term, and potential medium-term changes in curbside (and off-street parking) management. Finally, explore adaptions to policies, programs, staffing, customers, and tech to prepare for future operations.

We understand this is an extremely busy time and will record the online shoptalk and distribute to all members and colleagues.  If you have a question or would like to share something that has worked for your organization in advance, please email Fernandez@parking-mobility.org.

 MODERATOR:

 

Tiffany Smith bio pixTiffany Smith, Director of Parking Authority of River City, Louisville Metro Government

I graduated from the University of Kentucky in 1993 and obtained my MBA in 2001. I have been with Metro, Parking Authority for 23 years. I started in Accounting and moved to Administration and now I am the Director. Team building, customer service and improving our operations through technology, innovation and creative thinking are my initiatives in operating the agency. I’m still very much invigorated and excited about how we can make Louisville a better city to live, work and park. My staff is my greatest professional asset.

I am a lifelong learner and am always excited to know more. I serve on the YMCA downtown board, participate in Toastmasters weekly, serve on the International Parking Institutes membership committee and serve on the Bates Community Development Corporation board. I enjoy spending time with family, exercising and traveling. I teach Sunday school youth and serve as a mentor at Newburg middle school through Metro Mentors.

I am hopeful to return to my studies at Southern Baptist Theological Seminary and finish my Masters in Family and Biblical counseling. This is a dream deferred. I have 3 kids that make me smile and give me purpose; they are my greatest life accomplishment.

Online Instructor Led Course: Finance & Auditing for Parking, Transportation, and Mobility Pros

Two Day Course: September 15 and 17, 2020

Register button

Overview:

This session is a comprehensive financial foundation for anyone involved in parking and mobility.  It will cover fundamental finance and accounting concepts with a specific reference marking and mobility budgets, including. financial reporting, budgeting, bond basics, Metrics (KPI’s), Captial Planning, Auditing, and the importance of stakeholder involvement.

At the completion of this course you will be able to:

  • Interpret and develop a financial report
  • Recognize why bond basics is a primary means to raise capital
  • Develop an audit checklist for your organization
  • Create a dashboard with metrics

 

Presenter: Samuel Veraldi, CAPP

Sam Veraldi Bio pic

Sam Veraldi, CAPP is Vice  President of Consulting Services at SP+ Corporation. He formerly served as the Director of Parking and Transportation at Duke  University and a Practice Builder with Kimley Horn.  Sam has been teaching in the CAPP curriculum since 2015 and is a member of the Research Committee with the International Parking & Mobility Institute (IPMI). He has been teaching finance at Duke for more than 20 years, and has over 20 years Senior Finance experience with IBM and GE Capital.

Course Credits: 4 CAPP Points for Candidates and 4 CAPP Points for recertificants in Program Type 5.

Interested in attending both Analysis & Application of Technology and Finance & Auditing for Parking, Transportation, & Mobility Pros.  Register for both and save! Contact us to get a discount code to register for both.

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2020 IPMI Professional Excellence Award- Finance: Kenneth Kimball, CAPP

Kenneth KimballKenneth Kimball, CAPP

DIRECTOR, FISCAL AFFAIRS, HUMAN RESOURCES AND PAYROLL, IT DEVELOPMENT, IT SUPPORT
Texas A&M University, Transportation Service

Kenneth “Kenny” Kimball, CAPP, is chief compliance officer and chief finance officer, Texas A&M University Transportation Services, managing a budget of $50 million, directing the IT development and support unit, and overseeing the human resources manager and staff. He also volunteers in his church and community and for Texas A&M, leading a university committee of business administrators.

Kimball is frequently called upon by peer universities, undergraduates, and graduate students to lend help and solutions to their problems or projects. He recently wrote a comprehensive, instructive article for Parking & Mobility magazine, “Financial Success in a University Environment,” in which he outlined how to create a successful financial plan.

Kimball took the lead for his department in undertaking becoming an APO with Distinction. He met with all of the units to lay out expectations and tirelessly gathered and organized thousands of documents.

His plans help his department thrive even in lean times. In one example, Transportation Services was faced with an aging bus fleet and limited financial resources for replacement. Kimball identified a bus company to serve as a partner and led a significant cost-saving venture to remanufacture the fleet. A new bus costs about $450,000 and takes about two years to build. Remanufacturing usually takes less than a year and saves hundreds of thousands of dollars.

As the department financial adviser, Kimball’s goal is to always make sure leadership has the information needed to make sound fiscal decisions. His strength is projecting what the budgets will look like in the future and creating good models. He is also talented at building models that factor in the many challenges of budgeting for auxiliary services in a university environment. He has an intuitive sense for planning for the unknown, based on his vast experience with the many constraints a government entity is bound to produce. His presentations to propose rate, policy, and infrastructure changes are always based on a careful look at the big picture, constraints, and future projections.

Recently, he was placed on a university-level task force to explore how recent changes to federal tax law will affect parking benefits for staff and faculty.

Free Online Shoptalk: Municipalities, Finance, & Recovery: Current Challenges and Next Steps

Wednesday May 13, 2020- 2:00 PM EST

Free Online Shoptalk: Municipalities, Finance, & Recovery: Current Challenges and Next Steps

Free to all Industry Professionals

Access the Recording here

 

Join IPMI for our next online Shoptalk diving into cars, cash, and financial impacts to operations. Open to all, moderator Tiffany Smith will lead the group in discussions centering on three key questions. First, discuss of the impact to the short-term financial picture, including revenue, plans to streamline operations to cover losses, and anticipated changes to programs and policies for recovery. Second, address changes to consumer and patron behavior, your expectations of demand in the immediate and longer term, and potential medium-term changes in curbside (and off-street parking) management. Finally, explore adaptions to policies, programs, staffing, customers, and tech to prepare for future operations.

We understand this is an extremely busy time and will record the online shoptalk and distribute to all members and colleagues.  If you have a question or would like to share something that has worked for your organization in advance, please email Fernandez@parking-mobility.org.

 MODERATOR:

 

Tiffany Smith bio pixTiffany Smith, Director of Parking Authority of River City, Louisville Metro Government

I graduated from the University of Kentucky in 1993 and obtained my MBA in 2001. I have been with Metro, Parking Authority for 23 years. I started in Accounting and moved to Administration and now I am the Director. Team building, customer service and improving our operations through technology, innovation and creative thinking are my initiatives in operating the agency. I’m still very much invigorated and excited about how we can make Louisville a better city to live, work and park. My staff is my greatest professional asset.

I am a lifelong learner and am always excited to know more. I serve on the YMCA downtown board, participate in Toastmasters weekly, serve on the International Parking Institutes membership committee and serve on the Bates Community Development Corporation board. I enjoy spending time with family, exercising and traveling. I teach Sunday school youth and serve as a mentor at Newburg middle school through Metro Mentors.

I am hopeful to return to my studies at Southern Baptist Theological Seminary and finish my Masters in Family and Biblical counseling. This is a dream deferred. I have 3 kids that make me smile and give me purpose; they are my greatest life accomplishment.

Rolling It

tpp-2016-03-rolling-itby Mark A. Vergenes

Changing jobs? 401(k) rollovers come with lots of choices. Learn how to make the best ones. 

If you’re changing jobs, you may be wondering what to do with your 401(k) plan account. No matter what stage you are in your career or how close you are to retirement, it’s important to understand your options.

Your Entitlements
If you leave your job (voluntarily or involuntarily), you’ll be entitled to a distribution of your vested balance. Your vested balance always includes your own contributions (pretax, after-tax, and Roth) and typically any investment earnings on those amounts. It also includes employer contributions and earnings that have satisfied your plan’s vesting schedule.

In general, there are two ways to become vested in your employer’s contributions to your retirement plan:

  • Cliff vesting means you’re 100 percent vested in employer contributions after three years of service.
  • Graded vesting happens gradually at 20 percent per year. After six years, employees are 100 percent vested.

Plans can have faster vesting schedules, and some even have 100 percent immediate vesting. You’ll also be 100 percent vested once you’ve reached your plan’s normal retirement age.

It’s important to understand how your particular plan’s vesting schedule works because you’ll forfeit any employer contributions that aren’t vested at the time you leave your job. Your summary plan description (SPD) will spell out how the vesting schedule for your particular plan works. If you don’t have one, ask your plan administrator for it. If you’re on the cusp of vesting, it may make sense to wait a bit before leaving if you have that luxury.

Don’t Spend It—Roll It
While your retirement plan’s pool of dollars may look attractive, don’t spend it unless you absolutely need to. Taking a distribution means you’ll be taxed at ordinary income tax rates on the entire value of your account except for any after-tax or Roth 401(k) contributions you’ve made. And if you’re not yet age 55, an additional 10 percent penalty may apply to the taxable portion of your payout. (Special rules may apply if you receive a lump-sum distribution and you were born before 1936 or if the lump sum includes employer stock.)

If your vested balance is more than $5,000, you can leave your money in your employer’s plan until you reach normal retirement age. Your employer, however, must also allow you to make a direct rollover to an individual retirement account (IRA) or to another employer’s 401(k) plan. As the name suggests, in a direct rollover the money passes directly from your 401(k) plan account to the IRA or other plan. This is preferable to a 60-day rollover, in which you get the check and then roll the money over yourself because your employer has to withhold 20 percent of the taxable portion of a 60- day rollover. You can still roll over the entire amount of your distribution, but you’ll need to come up with the 20 percent that’s been withheld until you recapture that amount when you file your income tax return.

IRA or Employer 401(k)?
Picking between your own IRA and an employer 401(k) plan looks like a tough choice, but assuming both options are available to you, there’s no right or wrong answer to this question. There are strong arguments to be made on both sides. You need to weigh all of the factors and make a decision based on your own needs and priorities. It’s best to have a professional assist you with this, as the decision you make may have significant consequences—both now and in the future.

Reasons to roll over to an IRA:

  • You’ll generally have more investment choices with an IRA than with an employer’s 401(k) plan. In a typical situation, you can freely move your money around to the various investments offered by your IRA trustee, and you may divide up your balance among as many of those investments as you want. By contrast, employer-sponsored plans typically give you a limited menu of investments (usually mutual funds) from which to choose.
  • You can freely allocate your IRA dollars among different IRA trustees/custodians. There’s no limit on how many direct, trustee-to-trustee IRA transfers you can do in a year. This gives you flexibility to change trustees often if you are dissatisfied with investment performance or customer service. It can also allow you to have IRA accounts with more than one institution for added diversification. In an employer’s plan, you can’t move the funds to a different trustee unless you leave your job and roll over the funds.
  • An IRA may give you more flexibility with distributions. Your distribution options in a 401(k) plan depend on the terms of that particular plan, and your options may be limited. However, with an IRA, the timing and amount of distributions is generally at your discretion (until you reach age 70½ and must start taking required minimum distributions (RMDs) in the case of a traditional IRA).
  • You can roll over (essentially convert) your 401(k) plan distribution to a Roth IRA. You’ll generally have to pay taxes on the amount you roll over (minus any after-tax contributions you’ve made), but any qualified distributions from the Roth IRA in the future will be tax-free.

Reasons to roll over to your new employer’s 401(k) plan:

  • Many employer-sponsored plans have loan provisions. If you roll over your retirement funds to a new employer’s plan that permits loans, you may be able to borrow up to 50 percent of the amount you roll over if you need the money. You can’t borrow from an IRA; IRA funds can only be accessed by taking a distribution, which may be subject to income tax and penalties. (You can, however, give yourself a short-term loan from an IRA by taking a distribution and then rolling the dollars back to an IRA within 60 days.)
  • A rollover to your new employer’s 401(k) plan may provide greater creditor protection than a rollover to an IRA. Most 401(k) plans receive unlimited protection from creditors under federal law. Creditors (with certain exceptions) cannot attach your plan funds to satisfy any of your debts and obligations, regardless of whether you’ve declared bankruptcy. In contrast, any amounts you roll over to a traditional or Roth IRA are generally protected under federal law only if you declare bankruptcy. Any creditor protection your IRA may receive in cases outside of bankruptcy will generally depend on the laws of your particular state. If you are concerned about asset protection, be sure to seek the assistance of a qualified professional.
  • You may be able to postpone required minimum distributions. For traditional IRAs, these distributions must begin by April 1 following the year you reach age 70½. However, if you work past that age and are still participating in your employer’s 401(k) plan, you can delay your first distribution from that plan until April 1 following the year of your retirement. (You also must own no more than 5 percent of the company.)
  • If your distribution includes Roth 401(k) contributions and earnings, you can roll those amounts over to either a Roth IRA or your new employer’s Roth 401(k) plan if it accepts rollovers. If you roll the funds over to a Roth IRA, the Roth IRA holding period will determine when you can begin receiving tax-free qualified distributions from the IRA. So if you’re establishing a Roth IRA for the first time, your Roth 401(k) dollars will be subject to a new five-year holding period. On the other hand, if you roll the dollars over to your new employer’s Roth 401(k) plan, your existing five-year holding period will carry over to the new plan. This may enable you to receive tax-free qualified distributions sooner.

When evaluating whether to initiate a rollover always be sure to:

  • Ask about possible surrender charges that may be imposed by your employer plan or new surrender charges your IRA may impose.
  • Compare investment fees and expenses charged by your IRA (and investment funds) with those charged by your employer plan (if any).
  • Understand any accumulated rights or guarantees that you may be giving up by transferring funds out of your employer plan.

Outstanding Plan Loans
In general, if you have an outstanding plan loan, you’ll need to pay it back or the outstanding balance will be taxed as if it had been distributed to you in cash. If you can’t pay the loan back before you leave, you’ll still have 60 days to roll over the amount that’s been treated as a distribution to your IRA. Of course, you’ll need to come up with the dollars from other sources.

MIRUS Financial Partners nor Cetera Advisor Networks LLC, give tax or legal advice. Opinions expressed are not intended as investment advice, and it may not be relied on for the purpose of determining your social security benefits, eligibility, or avoiding any federal tax penalties. All information is believed to be from reliable sources; however, we make no representations as to its completeness or accuracy. All economic and performance information is historical and indicative of future results.

MARK A. VERGENES is president of MIRUS Financial Partners and chair of the Lancaster
(Pa.) Parking Authority. He can be reached at mark@mirusfinancialpartners.com.

TPP-2016-03 Rolling It

Smarter than the Average Detective

tpp-2016-03-smarter-than-the-average-detectiveby Charlie Francis

 

How municipal parking finance professionals can catch parking bandits with data visualization. 

I FIRST ENCOUNTERED the parking industry in the early 1970s as an entry-level accountant. I had to manually count the number of parked cars in each of Denver’s public parking lots between downtown and what is now called the LoDo (lower downtown) District as an internal control check on our parking operator. There wasn’t any technology in those lots—just the ubiquitous honor boxes. Nor could I use any technology to help count the spaces; I tallied my results on daily ledger paper using an adding machine that couldn’t even hold a number in memory. Every month, I would compare my daily counts to the parking operator’s monthly remittance as a way of ensuring the public was receiving all the revenues to which it was entitled.

Data visualization was physical, not digital. I physically had to see the cars and physically interpret the counts. Analysis was difficult—trends and patterns got lost in the noise of big data.

Counting cars in parking lots was a fun task in the summer of 1973, but during that freezing winter, I began to dream of leveraging my bachelor’s degree in a warmer location. I continued for three more years, toiling endlessly, adding columns and rows, and footing and cross-footing totals in sequential reconciliations; at least technology improved calculators to hold a number in memory!

Finally, in 1979, I moved to Florida for my first finance director position. And I was still in the parking business! Honor boxes gave way to parking meters, which were an important source of revenue from the beach parking lots of my small, barrier-island community.

Available Data
Meanwhile, calculators gave way to desktop computers. I became adept at using VisiCalc, the first spreadsheet computer program. It forever changed my way of thinking about the world—no longer were calculations sequential, but simultaneous! Four years later, Lotus 1-2-3 entered the market as a three-in-one, integrated solution that handled spreadsheet calculations, database functionality, and graphical charts—hence the name 1-2- 3. I retired VisiCalc and pasted years of daily parking meter revenue from each of the city’s beaches into Lotus 1-2-3. Once the data were loaded, I started graphing the results. I created both incremental and cumulative year-over-year graphs and incremental and cumulative month-over-month graphs. I generated the graphs citywide and for each beach and quickly became an expert at creating Lotus 1-2-3 graphs. They were good-looking graphs—well, as attractive as Lotus 1-2-3 graphs could be, running on DOS computers, back in 1983.

Something Fishy
One day, as I was admiring the handiwork of my new skill, I noticed something curious in the trends depicted in the graphs. Every year, during one week in the height of each summer season, parking meter revenues plummeted. Multiple views of the data showed me this was not a fluke. There was no logical explanation for this abnormality; the city never declared a parking holiday because parking was a mainstay of our revenue base.

The beaches were never closed. There were no neighboring events that competed for beachgoers, reducing demand. The bridges were neither closed nor down for scheduled maintenance. Nothing seemed to explain the deviation.

Then, one evening, I was reading how Sherlock Holmes wrestled with a problem in “The Sign of the Four.” He asks Watson, “How often have I said to you that when you have eliminated the impossible, whatever remains, however improbable, must be the truth?”

“Aha,” I said to myself, and the next day, I told the police chief he should stake out the parking lots during that one particular week. We found that Midwest-based parking lot bandits had an accomplice working at the meter manufacturer and that partner in crime obtained the new master cylinder key for our parking lots. Every year, the bandits would pay for their Florida vacation by emptying the parking meters. Caught red-handed!

Visualization
Data visualization and analysis tools won’t catch parking meter thieves every day, but visualization enables finance directors to identify trends, understand the big picture from large amounts of data, and spot unusual patterns. New operational reporting and analytics tools enable finance professionals to tell better stories (the 2015 Goverment Finance Officers Association theme) and create effective personal reports that permit city councils, city managers, and department heads to see the city’s financial condition at both a high-level glance and at the granularity of the transaction level.

Finance directors are visualizing and analyzing data to better interact not only with their own information but also with their neighboring, regional, and comparison city’s data! And they are able to interact, analyze, and present information with greater velocity—more time to analyze and add value to information and less time spent collecting data. This yields productivity, efficiency, and creativity.

Going forward, new tools will provide city finance professionals with the ability to not only detect and confirm spending inefficiencies, or unrealized revenue, but also to predict, compare, and collaborate on new transformative approaches that will guide the policy decisions for fiscally stable and structurally balanced city governments.

I ended my career in a California city still in the parking business—spearheading a multiphase request for information procurement process to optimize parking technology. The resulting off-street pay station and instreet smart meter installation provided for innovative technologies that integrate credit-card transactions and mobile pay-by-phone applications, on-demand pricing with citation payments, permit management, and builtin data visualization tools.

Best of all, license-plate-enabled readers for enforcement means no more physical daily car counts!

TPP-2016-03 Smarter than the Average Detective

The Parking Professional: Contracts Nothing Lasts Forever

Why and how owners should issue regular RFPs for parking operations services.19_02 Contracts article

By Will Rhodin

REMEMBER THAT OLD CLICHÉ that nothing lasts forever? Well, that can definitely be true when it comes to a parking management relationship. As tempting as it may be to sign that one-page “same terms and conditions” renewal agreement with the parking operator when the operating term is coming to an end, that may not be the best option. Sure, the parking management company may seem to be doing a good job, but doesn’t it make sense to see if the market has changed since you hired your operator?

The approaching end of a management agreement or lease term presents an opportunity to make sure ownership is achieving its desired goals for the parking facility. There are many issues to be assessed, from financial results to service, facility performance, image, and safety, none of which should be given short shrift. How does ownership know if the operator is really doing the best job that can be done, especially if the operation has been on cruise control for a while?

The best way to get to the bottom of this important question is to issue a request for proposals (RFP), laying a framework for qualified operators to present their best case as to why their organization is best to meet or exceed ownership’s needs. You may find out that there’s someone out there who could do a better job. Or perhaps the process will inspire your current operator to up their game.

Laying Out the RFP

An RFP process establishes an even playing field on which operators are given an opportunity to compete for the property owner’s business. Ownership’s pri­orities are detailed in the RFP, addressing key mat­ters such as:

  • Agreement structure: What type of arrangement works best for the owner and the individual parking facilities? The RFP could call for a straight man­agement contract, a lease, a concession, or a hybrid approach combining two or more approaches.
  • Quality of service expectations: Is the property a class A office building, requiring first-class services to be provided by all onsite providers? Are there established standards that must be met by the oper­ator (minimal delays at the exits, shuttles arriving on a mandated schedule, measurable customer satisfaction)? The RFP should clearly state these requirements in a way so the proposer can plan its response accordingly.
  • Operating plan: What are the operator’s plans for helping the owner meet its financial or ser­vice-related goals for the parking facilities? Perhaps a valet compo­nent can be added or the facility can be automated to increase ve­hicle throughput while reducing costs.
  • Innovation and technology: The parking world has become extremely technology-centric. The RFP should provide an opportunity for prospects to demonstrate their experience and expertise in utilizing the latest parking technologies. It should also require them to offer recommenda­tions for how technology can best be applied to the facility or facilities they are proposing to operate.
  • Management fee and operating costs: The RFP response often includes a financial proposal compo­nent, specifying base and/or incentive management fees, revenue budgets, plus payroll and other operat­ing cost budgets. Lease or concession proposals typ­ically require the proposer to commit to a base rent and/or a payment based on a percentage of revenue, perhaps above a threshold.
  • Revenue generation ideas: Parking facilities are often a source of measurable revenue for an owner. If that’s the case, the RFP should require that proposer to submit well-thought-out plans for enhancing revenue. For example, perhaps the rates are not comparable to the market, or there is a full floor available in the garage with no prospect of fill­ing such spaces with internal demand generators, requiring the operator to look to external sources to find revenue.
  • Marketing plans: The parking operator is respon­sible for optimizing the parking facility or facilities. The RFP provides an opportunity for each prospec­tive operator to lay out its marketing plan.
  • Disadvantaged Business Entity (DBE) programs: Many munici­pal parking opportunities, such as city-controlled parking systems or airports, establish DBE programs to create opportunities for small businesses. The RFP may specify DBE participation requirements.
  • Sustainability: Sustainability is an essential ele­ment of parking. Prospective operators should be required to provide recommendations for making parking operations greener, such as by the installa­tion of electric-vehicle charging stations.
  • Capital investment: The RFP may require the proposer to provide funding (reimbursable or other­wise) for much-needed capital improvements to the parking facilities.
  • Base rent and percent rent: The RFP should specify the owner’s requirements for base and/or percentage rent payments, in the case of a lease or concession opportunity.

 

Expert Advice

Property owners sometimes prefer to hire a third-party parking consultant to coordinate the RFP process, including preparing the RFP draft, working with ownership to establish and commu­nicate key milestones (RFP response due dates, onsite pre-proposal meetings, question and answer timelines, etc.), and quarterbacking the process from start to finish. A parking operator RFP package should include a draft management agreement or lease document, allowing the proposing operator to evaluate potential contract terms and prepare its company’s response accordingly.

An RFP forms Excel template can be provided for the operator to complete, ensuring that all of the parking companies are proposing based on the same expense line items and key price categories, such as management fees, payroll, and liability insurance costs. Finally, an evaluation matrix is provided to let operators know what the key rating factors will be, such as price, qualifications, references, management plan, proposed onsite manager, and local or regional support. This gives the operator the opportunity to structure a proposal that is consistent with the own­er’s expectations.

This process can provide property ownership an unvarnished list of parking operators that exhibit a level of quality, experience, and capability consis­tent with the owner’s expectations. RFPs may then be sent directly to those recommended operators, weeding out the companies that may lack owner­ship’s required qualities in the process. RFPs are of­ten posted publicly in the case of many municipal or other government proposals, however, and thus that initial screening process must wait until responses are received and reviewed.

Ultimately, the RFP package is issued, and the clock starts ticking. Onsite operator walk-throughs occur, questions are answered, and electronic and/or hard copies of operator proposals arrive, just in the nick of time!

The next step is to dig into the responses and see how each proposal stacks up against the other. The consultant enters the operators’ financial offers into a comparison spreadsheet, checks references, and pre­pares a summary document, detailing salient points of each proposal. A short list is then developed if mul­tiple companies submit proposals, and operators who make the cut are brought in for in-person interviews.

With comparisons complete, operator inter­views concluded, and proposals evaluated on an apples-to-apples basis, ownership can then move forward with a new operating agreement, confident in the results of a well-informed and well-executed RFP process.

Read the article here.

WILL RHODIN is a consultant with Walker Consultants. He can be reached at wrhodin@walkerconsultants.com.

30 THE PARKING PROFESSIONAL | FEBRUARY 2019 | PARKING-MOBILITY.ORG

IPMI Webinar: Watch Your Assets! How to Monetize Most Effectively

OFFERED FREE TO MEMBERS THROUGH JUNE 2020.

Regular Pricing: $35.00 for IPMI Members, $50.00 for Non-Members

Register Button

Description: In the next decade, a growing number of state and local governments, colleges and universities, airports, transit systems, and water and sewer authorities are likely to explore asset monetization. State and local governments own infrastructure properties of significant value and, despite a 10-year economic expansion, some remain fiscally pressured and unable to properly maintain their properties. The scale of today’s infrastructure decay, the declining fiscal health of the U.S. public sector, and a growing appetite from large institutional investors (private sector) for infrastructure properties make asset sales or leases more likely than in the past.

Parking assets (garages, decks, on-street operations) are often eyed by political administrations as a possible cash cow for their pet projects. Now, we see these assets used to fund much-needed infrastructure and technology upgrades.

Learning Objectives:

In this webinar, we will highlight the pros and cons of:

  • Buy outright; part of a system.
  • Sell or lease the entire system.
  • Lease-Leaseback.

Presenters: 

Mark Vergenes is the president of MIRUS Consultants.

Having entered the parking industry in late 1999, Mark has built a clientele that consists of real estate development firms, individuals, and cities. His practice focuses on consulting with those who need an experienced advisor for their project(s).

He is the co-author of A Guide To Parking; Chapter 9, “Economics and Finance” published by IPMI. You can also find him in IPMI’s magazine, The Parking Professional, where he is a financial columnist.

 

 

 

 

Tim Horstmann is a public finance and tax attorney at McNees Wallace & Nurick in Harrisburg, PA. Tim advises governmental entities on the structuring of taxable and tax-exempt revenue bond and general obligation bond financings for a variety of capital projects, including parking facilities, schools, and higher education institutions and water, sewer and stormwater infrastructure. He also represents clients in the monetization of publicly-owned assets through various arrangements such as sales, leases, sale/leasebacks, and lease/leasebacks.

The S.M.A.R.T. Approach to Financial Goals

By Mark A. Vergenes

As you move through life, it’s essential to continually establish, measure, and refine long-term financial goals. We recommend using the S.M.A.R.T. planning tool. It’s believed George T. Doran created this acronym for a management paper he wrote back in 1981 for the Washington Water Power Company.

S: Specific Financial Goals

When you create goals, it’s not enough to write down that you want to have enough money to live a general kind of life or save for retirement. Instead, be specific in ways that help you map out a real plan: pay off my existing debt in the next 12 months, or save enough in the next eight years to pay for half of my two children’s college.

You can have more than one specific goal but you shouldn’t have dozens. Pick the items that are most important to you and your way of life and focus on achieving the most important goals.

M: Measurable Financial Goals

As you develop your financial goals, you’ll need to assign dollar values. To see your progress as you reach your goals, you’ll need to measure them periodically.

A broad goal is to save for retirement. Think more specifically. You may be 20 years from retirement and want enough to spend $50,000 a year each year for an estimated 15 years of retirement. This allows a financial planner to help you figure out reasonable savings goals, factoring in interest over time, expected returns, social security, cost of living, health care concerns, and inflation.

A: Assignable Financial Activities

Who is going to track your financial goals? Are you going to spend time doing this with your partner or spouse? Would you like a financial planner to help you track your progress? Is your sister-in-law an accountant who wants to help? To reach aggressive financial goals, assemble a team of experts and make sure everyone understands their assigned role.

R: Realistic Financial Goals

We all want a Porsche. And a villa in Italy. And to retire at age 40. But shooting for the moon is not helpful when creating financial plans. Consider your income and a reasonable projection of your future income, and plan accordingly. If you want to eliminate mortgage payments before you retire in five years but you owe more than $100,000, diverting all your money into home payments may not be your best move. It may be more realistic to downsize, refinance, or even rent your home to tourists for three months of every year.

T: Timeline

Most of us postpone serious financial commitments until our 30s, 40s, 50s, or beyond. Create realistic timelines for your goals and stick to them. While it may feel uncomfortable to extend your mortgage into your retirement years, it may be necessary to meet other financial obligations in the interim.

The more time you give yourself to reach financial goals, the more attainable they will become. Planning early can, literally, pay off in the long run.

Mark A. Vergenes is president of MIRUS Financial Partners. He will speak on this topic at IPMI’s 2019 Leadership Summit, Oct. 3-4 in Pittsburgh, Pa.

Investment Advisor Representative offering Securities and Advisory Services through Cetera Advisor Networks LLC, member FINRA/SIPC. Cetera is under separate ownership from any other named entity. MIRUS Financial Partners and Cetera Advisor Networks LLC are not affiliated.