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LAZ PARKINGMarch 3, 2009 LAZ Parking LLC 777 Brickell Avenue Suite P] Miami, FL 33131 P 305.423.4727 F 305.423.4731 Luis Macedo, General Manager lnt��m South Miami Miiaami loin EXECUTIVE LETTER r March 3, 2009 Matilde G. Menendez Finance Director City of South Miami 6130 Sunset Drive South Miami, FL 2001 RE: RFQ NO. FN090303 Management Operations and Maintenance of Parking Dear Matilde: On behalf of the entire LAZ Parking organization, I am pleased to submit the enclosed proposal for management operation and maintenance of the parking services for City of South Miami. As the incumbent parking operator for the South Miami parking system, we believe we are well- positioned to provide the best possible value in managing the parking operations. It is with pleasure that LAZ parking has been your parking services provider since 2006. We have thoroughly enjoyed our business relationship with all members of the City's management team, employees, Mayor and commissioners over the past three years. In that time we have established a dedicated group of employees that are grateful for the opportunity to serve your beautiful city. LAZ also appreciate the opportunity to serve the residents, business owners, and patrons of the city. We take this responsibility as a privilege and would like to continue our job in serving the community as a representative of the city of South Miami. LAZ Parking understands the needs of the residents, business owners and visitors of your City and the requirements of South Miami in providing a pleasant and esthetic parking experience. Furthermore, we have streamlined our customer service provisions to offer the most efficient and customer friendly service in the industry. South Miami is unique in that an operator is privately outsourced to provide the collection and enforcement. We take great pride in having the city entrust us with both these significant parking operational duties. As cities continue to create sources of revenue, LAZ Parking stands head and shoulder above our competition in partnering up with municipalities to maximize revenue while maintaining a high level of service. Our recent award of the Chicago parking meter system demonstrates our ability to monetize and asset and allowed to flourish through partnership. The addition of Pay and Display machines will enhance the parking experience for all users and create an esthetically pleasing operation. 2 In reviewing our proposal and present experience in managing meter parking operations for municipalities you will find that our approach to service delivery is a well managed and efficient process. Our structure allows for the provision of services and streamlines procedures to offer the best service possible. LAZ Parking was founded 28 years ago, and has grown from a single valet station to over 980 locations throughout the entire United States. Today, we are responsible for the management of more than $310 Million in annual revenues. As our company has continued to grow, our founders and their three original partners are still deeply involved with the company, bringing their strengths to various aspects of our parking business. The success of their business stems from building strong client relationships, empowering employees to "Think like an Owner," and never losing touch with their roots. As part of our corporate culture, everyone at LAZ Parking goes beyond the normal client - operator relationship and fosters a true "Partners in ParkingT"M" philosophy. LAZ Parking is proud of its ability to be flexible in meeting each client's needs, and after our analysis of current operations and review of the RFQ, we are confident that our strategies and procedures will result in better output for the South Miami parking patrons. Thank you for giving our organization the opportunity to submit this proposal; we look forward to continue to work with you. Sincerely, Luis Macedo General Manager 3 i t t TABLE OF CONTENTS ExecutiveLetter ................. ............................... ...........................Page 2 ExecutiveSummary ................................... ............................... ...........................Page 5 SECTION 1 — PARKING EXPERIENCE AND COMPANY QUALIFICATION .......... Page 7 1. Corporate History ..... ............................... ...........................Page 8 2. Operating Philosophy .... ............................... .........................Page 10 3. Corporate Key Personnel ...:::... .................. ...........................Page 10 4. Corporate Organizational Chart .... ............................... ...........................Page 13 5. South Florida Key Personnel ........................ ...........................Page 14 6. South Florida Organizational Chart ................ ...........................Page 16 7. Newly Awarded Municipal Contracts. ........................................ Page 17 8. Current Municipal Agreements ............................................... Page18 9. References....,........ ............................... ...........................Page 21 SECTION 2— SCOPE OF SERVICES REQUIRED FOR METER MANAGEMENT ..... Page 26 1. Summary of requirements— ........................ ...........................Page 27 a. Sample Training Manual ........................ ...........................Page 32 2. Staffing Requirements - ..............._ ............ ............... .........Page 34 3. Operations Manager ... . .............._................ ....................Page 35 4. Hiring and FIR ..... ............................... ...........................Page 36 a. LAZ Benefits ...... ............................... ...........................Page 43 SECTION 3— TECHNOLOGY AND OPERATIONAL ENHANCEMENTS ..............Page 44 1. Intro to Pay and Display Technology.. . .................................... Page 45 2. Parking Recommendations ......................... ..........................Page 46 3. Return on Investment ............................... ...........................Page 47 4. Additional Technologies ........................... ...........................Page 48 5. LAZ Parking Capitalization Cost of Equipment ..........................Page 49 SECTION 4— PROPOSED MANAGEMENT FEE AND OPTIONS .....................Page 50 1. LAZ Parking Proposed Management Fee ....... ...........................Page 51 2. Citation Revenue..... . ......... ............. ...........................Page 52 3. LAZ Parking Public — Private Partnership ... ...........................Page 53 SECTION 5— ADDITIONAL INFORMATION ................ ...........................Page 54 1. Customer Service .... ............................... ...........................Page 55 2. Revenue Control Experience ..................... ...........................Page 58 3. Additional Revenue Generator ( Marketing) .... ...........................Page 60 4. Proof of Insurance. .. . ............ ....................................... Page 62 5. LAZ Financial Statement.. . ..... ......... .... ..........................Page 64 6. LAZ, Parking Incorporation.... -. ..........................Page 75 4 EXECUTIVE SUMMARY MISSION STATEMENT To create value for City of South Miami by implementing our successful management philosophy aimed at complete customer satisfaction, maximizing profitability through revenue integrity and expense savings, and bringing innovative operating improvements to the City's parking infrastructure. PARTNERS IN PARKINGTM LAZ Parking trademarked this phrase because it best describes the essence of our company. We are not a typical parking management company. We are truly focused on providing the highest level of service while exceeding the financial expectations of each of our client's parking assets. The long -term success of the South Miami parking operation relies heavily upon the relationship that exists with the parking operator. We are proactive rather than reactive, we are creative not complacent. We foster a working relationship that goes beyond a normal vendor relationship. We become your parking partner. PARKING FxPFRTISE LAZ Parking's senior management team has over 180 years of combined parking experience. Over the past twenty -eight years, LAZ Parking has developed into one of the largest parking companies in the Eastern United States with over 425,000 parking spaces under management in eighteen states. Our present parking portfolio includes entertainment/event venues, municipalities, Class A office buildings, mixed -use retail projects, hotels, hospitals, universities, stand -alone garages, surface lots, and valet parking sites. We have significant experience in every aspect of parking management, as evidenced in this proposal and from our many strong operating references. LOCAL. OWNERSHIP AND MANAGEMENT LAZ Parking of Florida, LLC has been headquartered in South Florida its inception in 1494. Senior Vice President, Georgi Taja, Regional Vice President of Government Services, Phil Oropesa, General Manager, Luis Macedo and Operations Manager Jose Fernandez will continue to provide the City of South Miami a unique hands -on parking management operation that will be superior to any other local or national parking company. This team is comprised of seasoned parking professionals who have significant experience in providing the specific parking services required to be successful at the South Miami Parking Management Operation. We have the same management team in place since taking over in 2006. Our synergy with the City's management team has allowed us to increase revenue significantly every year while maintaining a high level of service. R Many of the facilities under management by LAZ Parking gross over a million dollars annually. LAZ. Parking's experience is widely diversified and includes the following: • Municipal Garages • Office Buildings • Event parking • Hotel parking • Residential parking OPERATING PROCEDURES AND POLICIES • Commercial parking • Commuter parking • Shared parking • Self park and valet parking • Transportation intermodals Based on our experience working with the City of South Miami we have the in depth knowledge to implement any new policies or procedures that the City may wish to institute. We have vast experience in implementing a variety of specifications that address the following objectives: • Educate the public on new technology (Pay and Display) • Respond to all City calls and attend commission meetings Q Implement cash control and audit procedures © Institute comprehensive quality service programs for community • Provide stringent revenue control and superior financial reporting • Provide required personnel during hours of operation with proper training levels ® Provide towing /immobilization services O Handle all customer service issues If our contract with South Miami is extended, we will implement monthly meetings with City of South Miami's Representatives in order to accomplish the following objectives: (a) review financial reports, (b) review the past months' operational performance, and (c) set objectives for the upcoming months. The representatives from LAZ would include General Manager, Luis Macedo, Director of Operations, Jose Fernandez and our Vice President Georgi Taja as needed. CONSULTING AND DESIGN Many of LAZ's managers have been involved with the design and development of a variety of parking facilities, as well as consulting for redevelopment projects and upgrades for garages. LAZ can provide expertise in the following areas: O Revenue Control Equipment and (D Monthly Revenue and Expense Procedures Proformas /Analyses • Audit Control and Procedures ® Parking Operations • Procurement of capital O Installation of parking equipment improvements (D Specialized training for parking • Traffic Flow and Design enforcement specialists • Graphics O Design 2 SECTION I PARKING EXPERIENCE COMPANY QUALIFICATIONS rl LAZ PARKING CORPORATE HSTORY In the fall of 2007, LAZ Parking formed a partnership with Europe's top parking operator, VINCI Park. This transaction represented a mutual growth strategy by both parking leaders. VINCI Park has built an extremely successful network of parking operations in countries throughout Western and Eastern Europe and Canada. VINCI Park, headquartered in Paris, France currently operates over 863,000 parking spaces in 300 cities, in 14 countries. This joint venture between LAZ and VINCI enables LAZ Parking to support VINCI Park's growth in the United States by giving it the benefit of its top - quality management, and a successful track record of significant growth. Our success story is founded in the same principal that guided our early years. When we were provided with the opportunity to manage our first garage, a 600 -space facility for the Hilton Hotel, we increased net income by 50% in the first 12- months of operation. There was no real magic to what we did. We were young, aggressive, honest valet parkers focused on the facility's financial performance and service requirements. Today, that same story resonates in each facility we acquire, as we demonstrate similar results: increased profitability and enhanced customer service. We have skillfully built a reputation based on efficiency, integrity, and above all, value added enhancements reflected in our clients' bottom line. LAZ Parking specializes in the management, leasing, ownership and development of parking facilities. We currently operate in eighteen states: California, Connecticut, Florida, Georgia, Illinois, Maryland, Massachusetts, New Jersey, New Hampshire, New Mexico, New York, North Carolina, Pennsylvania, Rhode Island, Texas, Vermont, Virginia, West Virginia and Washington DC. LAZ Parking is headquartered in Hartford, Connecticut and has nine divisions and a partnership with the largest parking operator in the world, VINCI Park: ➢ LAZ Parking, LTD, LLC — Our parent company provides services throughout Southern New England including Hartford, New Haven, Bridgeport, Norwalk, and Stamford, Connecticut. 8 v LAZ Parking Limited, LLC -- Our regional office in Boston services Northern New England including Massachusetts, New Hampshire and Rhode Island. B LAZ Parking Georgia LLC. -- This location represents one of the fastest growing parking companies in Atlanta. ➢ LAZ Parking Mid - Atlantic, I.LC — Our local office, with 70 locations in the Washington, DC Metro area, is supported by our regional office located in Baltimore, MD. This region handles operations in the Philadelphia, Baltimore, Washington, DC and Northern Virginia markets. LAZ Parking Florida, LLC — This office opened in Jacksonville,, Florida in 1999, and has grown to service several parking facilities in Jacksonville and Miami. Proof of incorporation attached to proposal. ➢ LAZ Parking New YorklNew Jersey, LLC — Our office in Manhattan services Manhattan, Long Island, Westchester County,, Rockland County and upstate New York, along with Northern New Jersey. A LAZ Parking Texas, LLC — Established in June of 2006, this location now operates Victory Park in Dallas, which includes the operations of a W Hotel, along with residential, retail and event venues in Austin, Dallas, Houston, San Antonio and Albuquerque, New Mexico. ➢ LAZ Parking Chicago, LLC — Our Midwest office is located in the heart of downtown Chicago. LAZ began operations in December of 2006 at four downtown garages, which comprise over 9,200 parking spaces. This contract represents one of the largest parking systems in the world. ➢ LAZ Parking California & Sunset Parking Service, LLC — Our Western Regional Office is comprised of a partnership with Sunset Parking Service. Sunset has served Southern California since 1981, and operates 140 locations, employs 500 people and has a strong presence in the San Diego and Orange County markets. ➢ LAZIVINCI Partnership - LAZ. Parking LTD, LLC formed a partnership with Europe's top parking operator, VINCI Park in the fall of 2007. VINCI Park, headquartered in Paris, France is the largest parking operator in Europe. This partnership gives LAZ Parking the benefit of VINCI's expertise in every aspect of the parking industry. EXPERIENCE OF LAZ PARKING Headquartered in Hartford, Connecticut, LAZ Parking currently owns, manages and leases parking facilities across the country, as noted above. All administrative functions are handled out of the company's home office in Hartford. Executive functions are performed in Hartford and in our regional offices. Day -to -day operations are handled by our local organization through the development of strong regional vice presidents. This 0 regional day -to -day management style, as found in small local companies, allows for effective "hands on" supervision. Centralization of administrative functions at our Hartford office allows the company to operate with the efficiency and professionalism required of a national concern. LAZ currently manages many municipal parking operations including the City of Norwalk, Baltimore Parking Authority and Town of Surfside, FL which have many similarities to the City of South Miami operation. LAZ, has identified commuter rail parking as a rapidly growing sector within the parking management industry and are poised to be the industry leader in providing these services. OPERATING PHILOSOPHY Standing in the Shoes of the Client We know of no better way to prepare for an engagement than to place ourselves in the shoes of the client. We operate each facility as if we were the owners of the facility: We focus on the high standards which we would set, and of the exceptional service level which we would insist upon, if we were the owners. We picture in our minds the experience that we would like "our" parkers to enjoy, and the impressions which we would like them to remember from their parking encounter with us. KEY BACKGROUND PERSONNEL The following personnel will support the operation from the corporate office and are available to meet on site at the location or a designated meeting area. The LAZ Parking corporate contact information is: LAZ Parking 15 Lewis Street Hartford, Connecticut 06103 860 -522 -7641 Phone 860 -524 -8249 Facsimile LAZ Parking Executive Management Team Chairman Alan B. Lazowski is Co- Pounder of LAZ Parking, Ltd. and President of LAZ/Karp Associates, Inc. 1le attended the University of Connecticut and has completed work in the Graduate School of Design at Harvard University, specializing in Real Estate Investment Analysis. He is an active member of the National Parking Association and is on the Board of Directors of Homeward Bound Foundation, the Jewish Community Center and the Advisory Board of First National Bank. He is a member of the Advisory Board of the Hartford Downtown Council. Mr. Lazowski works closely with the home office and management personnel to ensure successful operations. E i s Y } _1 President Jeffrey Karp is Co- Pounder of LAZ, Parking, Ltd. and heads the Boston division. He graduated from Northeastern University with a B.S. in Management. An active member of the Boston Downtown Crossing Association, combined Jewish philanthropic organizations, B'nai B'rith Real Estate Charity Foundation, the Massachusetts Parking Association and various neighborhood organizations, Mr. Karp is on the Advisory Board of Save the Harbor Foundation. COO Michael J. Kuziak is a graduate of the University of Hartford with a B.S. in Finance and Marketing. Mr. Kuziak oversees the Connecticut based parking company including personnel, operations, finance and new business development. He is the primary owner contact for management clients and works closely with property owners to ensure satisfaction with the operation and marketing of each facility. He served on the Board of Directors for Business for Downtown Hartford and serves in an advisory capacity for various other community groups. Mike has been with LAZ Parking since its inception 25 years ago. Principal Operating Partner Marc Lutwack is a 1982 graduate of Boston University with a B.S. in Finance. For the past fourteen years, Marc has managed all aspects of surface and garage parking operations in Massachusetts for LAZ Parking. Marc brings a unique blend of operational knowledge and daily implementation that ensures customer service and revenue integrity for all facilities. Mr. Lutwack, along with Mr. Karp, would be the primary contact for ensuring complete satisfaction with the overall operation. Principal Operating Partner Robert DeBurro graduated from Boston University with a degree in Business Administration and a concentration in Operations Management. He has spent most of his professional life in the parking business and has been with LAZ Parking since November 1985, having worked his way up through the LAZ ranks. In 1992, Fie opened the Georgia regional office together with the original founders. His customers include some of the preeminent facilities in the Atlanta region, The Westin Buckhead (formerly known as Swissotel), Clark Atlanta University, Starwood Lodging, and the developer Charles Ackerman. In May 1999, Mr. DeBurro opened an office in Jacksonville, Florida to serve that metro market. Mr. DeBurro is an active member of the Parking Association of Georgia. Controller and CFO Raymond H. Skoglund holds a BS degree in Accounting from Upsala College and did graduate work in finance at New York University. Early in his career, he spent five years with Price Waterhouse and Company in their New York office and is a Certified Public Accountant. In addition, he has 20 years controllership experience in various companies, primarily in the service industry. 12 $ � � $ $ $ � : 13 RESUMES OF KEY PERSONNEL FOR CITY OF SOUTH MIAMI The following personnel will support the operation from the Regional and Local Level office and are available to meet on site at the location. VICE PRESIDENT, GOVERNMENT SERVICES DIVISION Phil Oropesa, is based in St. Petersburg FL, Mr. Oropesa has over twenty -seven years of hands -on municipal operations experience including a fifteen -year career with the City of New York. With New York City, Mr. Oropesa served as a Deputy Borough Engineer responsible for vehicular and pedestrian safety in the Bronx (population 1.7 Million). Before leaving New York City he held the position of Chief of Research and Development for the Bureau of Parking, responsible for 71,000 metered spaces, 13 Municipal Garages and 111 surface lots with total annual revenues in excess of $68 Million. After leaving New York, Mr. Oropesa went on to head the Reading Parking Authority in Pennsylvania as Executive Director where he administered 8 Garages, 11 surface lots and the enforcement of 2,000 on- street spaces. He also served as the Parking Manager for the City of St. Petersburg; Florida's fourth largest and fastest growing municipality. Most recently, Mr. Oropesa was Director of Central Parking System's Municipal Services Division where he was responsible for the company's national Municipal Services portfolio. A true Parking and Transportation professional, Mr. Oropesa holds Certificates in Traffic Engineering Studies from the City University of New York, Traffic Incident Management from the National Highway Institute, Computer Network Design and Project Management from the American Management Association and Advanced Management Training from the City of New York. He has served on the International Parking Institute Board of Advisors, the Pennsylvania Parking Association and the Florida Parking Association Board of Directors. SENIOR VICE PRESIDENT, SOLITIIEA ST DIVISION Georgi Taja, is based out of Atlanta, GA and has been in the parking industry since 1988. After graduating from George T. Baker Aviation Institute and after being working for Eastern Airlines for many years, he accepted a full time supervisory position at one of the high volume Hotel in. After working his way up through the ranks, he was promoted to General Manager and began learning and developing expertise in multi -unit P &L management, personnel development, major marketing plans, economic pro forma generation, facility design and review and proposal generation. He has gained experience in all phases of the parking business including municipal parking operations, on- and off - airport parking operations, multi -use facility management, hotel valet, surface lot/garage management, stadium/event management, on- street meter collections and enforcement and shuttle operations His marketing operations and management experience also includes, process improvements, implementing web -based applications, new location planning, acquisition and set -up, asset management, employee recruitment, training and retention and customer /guest services. Mr. Taja is in Florida one week out of the month and has met with City of South Miami staff members on several occasions. 14 GENERAL MANAGER, SOUTH FLORIDA Luis Macedo is based out of our Miami office and graduated from with a degree in Business Administration from FIU. He has over 16 years of parking experience in the South Florida market. Luis has extensive operational experience in operating mixed -use project, municipalities, high end valet parking, stadiums and large malls. Experienced in personnel recruiting, fiscal responsibilities, budgeting, accounting, developing and evaluating performance. Conduct customer service training seminars and assists in recruiting personnel and coordinating new location opening activities. Luis is the primary contact for the City of South Miami Manager and support staff. He has direct oversight of the entire operations and has been involved in the following aspects of the City of South Miami parking operation: ® LAZ Parking's direct liaison with City of South Miami's Manager Q Consulting and attending the City's Parking Board for over 2 years © Involved in City's annual Larkin's hospital charity event @ Direct oversight of transition from previous operator and maintaining key personnel and implementing operational changes a Participated in selection committee for Valet Parking centralized stations Q Meets with City valet parking operator to assure compliance with city ordinances Q Oversees operational plan to monitor new garage and maximize enforcement DIRECTOR OF OPERATIONS, SOUTH FLORIDA Jose Fernandez is based out of our Miami office and is the Contract Manager for the City of South Miami operation. Jose joined LAZ in 2006 and has over 12 years of administrative corporate accounting experience with a strong track record in revenue controls, human resources, employment recruitment, financial growth development and management of new parking acquisitions including hotels, office building, hospitals, entertainment valet venues and municipalities. Jose also oversees our contract with the University of Miami, Town of Surfside and Village of Bal Harbour. While his tenure with his previous employer, he oversaw the Jackson Memorial Hospital account with a financial budget of over $9,000,000. Jose has also worked at LAZ Parking hotel locations and has done customer service training for 4 and 5 star hotels. He is committed to the success of our entire staff by providing advancement and commitment to excellence. © .Oversees day -to -day operations for the South Miami Meter operation Q Involved with all citation complaints Q Meets with city management 2 times per week a Involved in decal zoning of South Miami 15 t 1� Additional LAL Regional Support includes: Christopher Walsh, Regional Vice President (Part -time Miami Resident) Robert DeBurro,- Executive Vice President (Part -time Miami Resident) 16 CHICAGO ON- STREET METERED PARKING SYSTEM In 2008, based on the success of its first venture in creating a thriving concession from a parking asset, Chicago offered its 36,000 metered parking spaces for long term lease. A highly competitive bidding process ensued with major infrastructure financing entities from Europe, Australia and North America all competing for the prized asset. In the end, leveraging the experience gained from operating the City's only parking related concession; in December of 2008 the Morgan Stanley /LAZ team was again successful by proffering a bid of 1.157 Billion dollars for the asset. The concession involves an aggressive system modernization program through the replacement of single space meters with Cale AB on -line pay stations that will allow the City to implement such traffic demand management tools as congestion pricing. The concession will also have the ability of enforcing meters which will be achieved through the integration of Enforcement Technologies hand held ticket writing solutions. This is the same state -of- the -art combination of technologies proposed by LAZ for use in the City of Atlanta. This operation began in February 12, 2009 and is the largest private parking meter operation in the Unites States. 17 The City of Macon Georgia In January of 2009 LAZ was selected by the City of Macon Georgia ' to provide turnkey parking management services. Pending City per" Council approval, LAZ will install 800 meters and manage all aspects of the City's parking system. Enforcement, Garage, Lot and Residential Parking Program administration are included. The City is in the process of negotiating parking equipment contracting with LAZ parking as their consultant. This operation is scheduled to begin in April 2009. LAZ Parking Senior Vice President, Georgi Taja was instrumental in preparing and negotiating contract with the City of Macon. �. Client: Morgan Stanley Infrastructure Partners MSIP and LAZ were awarded the 99 -year concession agreement to operate America's largest underground parking system by the City of Chicago for 9,178 spaces in four parking garages in downtown Chicago. MSIP purchased the concession for $563MM and holds 100% of the equity. Client: New York City Port Authority Bus Terminal LAZ Parking provides/4 -hour parking management for this facility near Times Square and which serves as the country's largest and busiest bus terminal. This is one of Manhattan's two largest public parking facilities. This garage contains approximately 1,500 spaces and produces $8.5 million per year in revenue. The facility services every parker type including retail, office, hotel, municipal and general commuters. Since taking over the management of the garage, LAZ Parking has invested over $500,000 in new state -of- the -art revenue control and access control equipment. The new equipment includes a license plate recognition system, credit card in and out payment methods, automatic pay stations, gate arms, nesting area for reserved parkers and digital recording devices and cameras. 18 Client: Norwalk Parking Authority LAZ Parking operates this municipal parking system in Norwalk, Connecticut, which consists of four garages, nine lots totaling over 4,000 parking spaces, on- street valet and all on- street enforcement and metered operations. LAZ has developed procedural and valuation models for each of the locations as well as implementing cashless operations at recommended locations. LAZ not only manages each location for Norwalk, but also provides comprehensive on- street parking operations with ACS State and Local Solutions. LAZ meets regularly with senior staff and elected officials, as well as with various civic and business organizations to maintain a comprehensive parking management plan which meets the diverse parking demands placed on the Norwalk Parking System. LAZ acts as a resident parking consultant to city officials to ensure all customer service goals and fiscal and operational obligations are met. IAZ/Vinci Park Municipal Matrix A. LAZ Parking and Vinci Park of Paris partnered to create the largest private operator of Municipal parking in the world. Many of the cutting -edge parking technology is manufactured in Europe and Vinci is one of the largest purchasers of parking equipment This allows LAZ parking the opportunity to have a product proven in the field prior to implementation in the United States. The breakdown of locations and amount of on street parking for the partnership is as follows: 19 US Municipal Clients On-Street Municipality # of Spaces Meters -City of Chicago 36,000 36,000 Was lhntqn_ Metro Area Transit Authority 59,000 --- Port Authority of New York 1,250 City of Norwalk Parking Authority____ 850 200 Norwalk Parking Authority 40,000 Massachusetts Bay Transportation Authority_ 25,037 ---------- - ------- of South Miami of Miami Bal Harbour, FL 1000 700 350 350 50 50 Town of Surfside, FL 750 750 US Total 650 650 164,937 38,700 European On-Street Contracts Country # Meters Belgium 13,353 Czech Republic 33,813 Paris (Center & Suburbs)__ 106,485 France (Other Regions) United European Total 31,160 SEMI 20 1 3 s `3 s i i Nor ivalk Parking Authority Various locations & On Street Nortvalk, CT Operated by LAZ Parking since 2003 4,000 + spaces Client Information: Katherine Hebert Norwalk City Hall Purchasing Department, Room 103 125 East Avenue P.O. Box 5125 Norwalk, CT 06856 (203) 854 -7712 LAZ Parking was selected to operate this municipal parking system which consists of 4 Garages, 9 lots totaling over 4,000 parking spaces, on- street valet and all on- street metered operations. LAZ has developed procedural and valuation models for each of the locations as well as implementing cashless operations at recommended locations, along with recommendations for developing the optimal operating format for each of the City's locations. LAZ not only manages each location for the City, but we also provide comprehensive On- Street parking operations accompanied with ACS State and Local Solutions. LAZ meets regularly with senior staff and 19 elected officials, as well as with various civic and business organizations in the development of a comprehensive parking management plan designed to meet the diverse parking demands placed on the Norwalk Parking System. LAZ performs as a resident parking consultant working with City officials to ensure all customer service goals and fiscal and operational obligations are met. LAZ personnel are trained to perform multiple tasks, which translates into significant operational savings and increases in overall customer satisfaction. LAZ Parking assumed the on- street parking management responsibilities for the City of Norwalk in January 2005. The on- street system contains 150 2 -hour parking meters located throughout South Norwalk and 250 2 -hour limit spaces located in East Norwalk, better known as the Wall Street Area. LAZ is directly responsible for the on- street parking system to include: Supervision of four City of Norwalk Parking Enforcement Officers • Management and supervision of LAZ and contracted parking enforcement staff • Installation, maintenance and collection of 150 2 -hour parking meters • Installation and maintenance of all parking regulatory signage • Parking violation management and collection of parking violation fines and penalties Since assuming these duties LAZ has significantly increased parking meter revenue, parking violations issued and parking fines collections as illustrated below: 21 3 j 3 i i 3 t FY 05 FY 06 FY 07 Meter Revenue $ 79,351 $88,775 $ 93,531 Violation Revenue $521,212 $629,789 $858,304 Violations Issued 21,326 33,467 43,523 The improvement in performance is directly contributable to the on- street parking management principals LAZ Parking recommended and ultimately implemented in the City of Not-walk as well as other LAZ Parking on street operations. These included: • On street parking should promote short term durations to support retail uses • On street parking should economically encourage short-term durations • On street parking should economically discourage long -term duration in retail areas • Non - punitive economic strategies should be employed to encourage parking durations • On street parking should be convenient • On street parking regulations should be easily understood • Parking enforcement efforts should be fair and consistent • Recognition that the level of compliance with parking regulations is a result of a credible collection effort, and not the number of violations issued Parking Authority of Baltimore City Baltimore, MD Operated by LAZ Parking Since 1990 5,000 spaces LAZ Parking manages six (6) garages consisting of nearly 5,000 spaces which service the parking needs of a wide variety of users in greater Baltimore City. Some of the facilities are operated in partnership with PMS Parking (Minority Owned Business). Client Information: Bheti Molock Parking Authority of Baltimore City 200 West Lombard St Baltimore MD 21201 (443) 573 -2800 LMJ r �, ■w 22 Town of Surfside Surfside, %I, Operated by LAZ Parking since 2006 w4w, 600 spaces LAZ Parking manages meter collections and maintenance for over 700 meters for the Town of Surfside. We are currently consulting for the Town to convert over to Pay and Display technology for over 75% of the parking meters. LAZ Parking will finance the entire cost of buying the machines on behalf of the Town is they choose this option. Client Information: Gary Word Town Manager Municipal Building 9293 Harding Avenue Surfside, FL 33154 gword @townolsurfsidefl.gov University of Miami Coral Gables, FL Operated by LAZ Parking since 2006 Hant 400 spaces University of Miami- LAZ Parking provides meter collection services for over 400 single space meter and 5 New Digital multi -space meters for UM. This agreement has been in place for over 4 years and continues to grow as the University acquires more land and installing additional meter space parking. Client Information: Norma Perez Budget Director 5665 Ponce De Leon Blvd. Coral Gables, FL 33124 (305) 284 -1640 Village of Bat Harbour Bat Harbour, FL Operated by LAZ Parking since 2006 Village of Bat Harbour — LAZ Parking provide meter collection and maintenance for this village. LAZ Parking has been involved in all phases of converting single head meter operation to multi space master meter operation. Bat Harbour chose Digital Pay and Display Machines. They will be installed May 2009. 23 Client Information: Alfred Treppeda Bal Harbour Village Hall 655 96 "' Street Bal Harbour, FL 33154 mananler a,balharbourfloddacom WMATA Washington Metro Area Transit Authority began operations June1,2004 Total Number of Spaces — 59,000 Location of facilities — 35 locations in the Greater Washington, DC area, including Maryland and Virginia. Technical Proficiency Revenue control systems utilized at each facility - Patrons pay with SMART TRIP CARD, installation of AMANO pay -in -lane to accept credit cards for non - traditional riders Contract Value Annual gross receipts -$54 Million. Renewed in 2008 for 5 additional years Contracting Party Patrick Schmitt WMATA 600 5ti, Street. NW Washington DC 20001 (202) 962 -1783 rpsclunittodwmata.com Type of Work Completed LAZ provides staffing (PCAR) and oversight for all locations throughout the WMATA Transit Rail System. This includes 57 locations with approximately 59,000 parking spaces throughout Maryland, Virginia and Washington, DC. Our main function is customer service; assist and provide general information to the METRO ridership. Revenue Collection Amano- McGann pay in lane has been installed in 6 properties as "pilot' program for WMATA to receive Credit Card payments for parking. Prior to this the only way to pay for parking was on SMART TRIP CARD which had to be purchased in the stations. 24 LAZ Parking in the process of installing pay in lane systems in the rest of the Washington Metropolitan Area Transit Authority facilities. As stated above, 6 out of 58 pay in lane stations have been installed for non - traditional riders. However, for the majority of the people who ride daily pay with the "Smart Trip Card ". Customers load money on to the card and can use it to pay for the train or pay for parking. These pay in lane systems and Start Cards eliminates cash which in turn aids in eliminating potential theft. Schenectady Metroplex Development Authority Schenectady, NY Operated by LAZ Parking Since 2004 3,000 Spaces Client Information: Jayme Lahut Executive Director Schenectady Metroplex Development Authority 433 State Street Schenectady, NY 12305 (518) 377 -1109 x102 Type of Work Completed In December of 2004 LAZ Parking commenced a five-year contract to manage a total of 8 parking facilities on behalf of the Schenectady Metroplex Development Authority. One facility is a garage encompassing over 2,000 parking spaces. The remaining 7 facilities are public surface lots encompassing over 1000 spaces. The parking facilities service area residents, businesses (including office towers, theatres, and restaurants), commuters and patrons. The greatest challenge in this project has been the conversion of free parking to pay parking. The 7 surface parking lots were "free" parking facilities. LAZ Parking developed a comprehensive and well coordinated plan to implement a pay parking program at each of the surface lots. This program was successfully implemented in June of 2005. 25 SECTION 2 SCOPE OF SERVICES REQUIRED FOR METER MANAGEMENT 26 1. SUMMARY OF REQUIREMENTS Parking Enforcement Training All newly hired parking enforcement officers are required to go through a rigorous and thorough training program. The training program has been established in order to ensure continuity and consistency regarding all areas of enforcement. It stresses professionalism, respect, honesty, courtesy; appropriate conduct, duties, responsibilities, knowledge and instruction in general administrative rules and procedures governing the parking enforcement unit. The role of the Parking Violation Bureau as it relates to parking regulation and enforcement is to be in compliance with proper techniques and methods relating to the enforcement of parking laws, ordinances, regulations and codes. It also stresses the importance of maintaining a customer friendly attitude while interacting with coworkers and the public. The key here is to remain professional at all times and do not take anything personal. LAZ Parking strongly committed to training all enforcement officers to meet the criteria set forth by the city of South Miami and Miami -Dade County parking violations bureau. That is why all employees are required to complete and acquire parking enforcement certification prior to eligibility for employment with LAZ Parking. A copy of our detailed training manuals can be provided upon request including our "Enforcement Training ". Our training program continuously offers on site field support to ensure standards set forth in the contract are exceeded. LAZ emphasizes techniques used to increase public awareness and to improve the human relations skills of parking enforcement afficers. Effort is made to develop effective interpersonal communication skills for dealing with disgruntle individuals and groups encountered by disgruntle patrons that have received violations. Miami -Dade county Parking enforcement officers utilize Autocite handhelds and its software for issuance of parking citations and data downloading. Aside from the PVO certification training as it refers to the Autocite handheld and computers with multiple reporting capabilities, LAZ Parking conducts training on all functions of the reporting system administered by the Parking Violations Bureau. This includes full training and education on parking violation provisions such as: How to, Identify special decals and license plate recognition, writing manual citations, County ordinances, Florida statutes, scoff laws, court procedure hearing, etc. Additional customer service training is provided on site in the field. LAZ Parking takes pride in having our enforcement officers well trained to learn and memorize city layout, decal parking zones, assigned schedules and strategic routes; concise records, reports, declarations, traffic safety laws and citations act in a courteous and effective manner when dealing with the general public and /or irate parking violators. 27 Our parking enforcement officers are given a copy of the South Miami valet parking agreement wherein provides detailed guidelines and regulations to be followed by the valet operators, to be regulated and enforced accordingly. In addition LAZ Parking was involved in the first transition and implementation of the parking phase of the newly launched Miami -Dade County Court Notify Subpoena manager system in October, 2007, known throughout Miami -Dade County's justice system as e- Notify. The implementation of this software gave our enforcement officers an opportunity to be part of the first phase of E- notify introducing this benefit to Parking divisions of enforcement agencies. This will ensure prompt notifications for those violators receiving subpoenas and court notification. The e- Notify system enables the Courts to increase enforcement agency attendance, improve efficiencies and accountability across multiple departments, agencies and jurisdictions. LAZ Parking provides additional training for all parking enforcement officers on updating scheduling and personal acknowledgement including execution of electronic court subpoenas. ENFORMENT DUTIES Patrol an assigned area by vehicle or on foot to ensure public compliance with existing parking ordinance. ➢ Maintain close communications the city and LAZ Parking personnel, using two - way radios. ➢ Write citations for violator with illegally parked vehicles. ➢ Mark tires of parked vehicles with chalk and record time of marking and return at regular intervals to ensure that parking time limits are not exceeded. ➢ Perform simple vehicle maintenance procedures such as checking oil, and report mechanical problems to supervisors. Safe work methods and safety regulations pertaining to the work, including driving habits. ➢ Observe and report hazardous conditions such as missing traffic signals or signs, and street markings that need to be repainted. ➢ Investigate and answer complaints regarding contested parking citations, determining their validity and routing them appropriately. ➢ Maintain assigned equipment and supplies such as handheld citation computers, citation books, electronic PDA, tire - marking chalk. ➢ Provide information to the public regarding parking regulations and facilities, and the location of streets, buildings and points of interest. ➢ Appear in court at hearings to contest traffic citations. ➢ Make arrangements for illegally parked or abandoned vehicles to be towed and direct tow -truck drivers to the correct vehicles, Miami -Dade Scofflaw compliance. 28 ➢ Enter and retrieve information pertaining to vehicle real time online paid by space using handheld PDA ➢ Patrol assigned areas and identify and issue citations to vehicles in violation of appropriate codes, laws, ordinances and regulations pertaining to on- street and public parking. ➢ Monitor and report parking signing and vandalism problems to appropriate repair maintenance staff, ➢ Report malfunctioning meters to meter repair and maintenance. ➢ Respond to public complaints of abandoned vehicles; tag vehicles after investigating vehicle status; arrange for the towing of vehicles if not removed within the specified time frame. ➢ Testify in court cases related to parking violations and citations as required. ➢ Maintain records related to work performed. ➢ Use sound independent judgment within established guidelines. ➢ Deal tactfully and effectively with those encountered in the course of the work, including hostile and irate citizens. ➢ Prepare and maintain required records, including logs of parking enforcement activities, voids and records of contested citations. METER COLLECTION & MAINTENANCE LAZ Parking recognizes the importance of continuing our aggressive approach to ongoing everyday repairs of single meter with malfunctioning equipment problems. It our responsibility to aggressively execute meter refurbishing programs in conjunction with our objective to aesthetically improve overall appearance we also understand revenue producing impact and negative feedback that occurs. Below are some of the everyday issues we will continue to address. We are responsible for the collection of meters including maintenance and installation of parking meters, meter post, and parking sign faces shall be scheduled on a proactive basis. We will also perform new meter installations parking meter post, valet ramps and decal parking LAZ Parking understands the importance of minimizing the broken meters great deal of importance as it pertains to maintenance of meters and how aesthetically and for revenue enhancements all pertain to the meters being well maintained and properly working which at the end of the day, translates into generating more revenue for the city. As part of our maintenance program we will maintain and furnish upon request weekly, monthly maintenance activity reports summarizing all work that was scheduled and completed during the previous month. Please refer to our "Technology" section were we make recommendations for improvements on technical efficiency and effectiveness for the overall operation. This specifically focuses on meter maintenance and collection. LA-Z's 29 suggest that this equipment be utilized to improve checks and balances, a maintenance track record and tighter revenue controls. Maintenance issues are reported to the supervisor daily, to avoid delays or problems that may arise. Supervisors will be required to perform a thorough inspection the compiled and will follow up with maintenance personnel. LAZ Parking will provide weekly productivity report with detailed activity reporting, summarizing all work scope detailed meter number and specifics repairs conducted and demonstrating a daily breakdown. Following are duties performed. ➢ Meters that are jammed, low battery, changing of domes, replacing hourly stickers and rate plates, fixing pole heights and bent poles, jammed meters, painting of meter heads and poles, cash key malfunction, etc. ➢ Prepare and maintain required records, including logs of meter maintenance repair records. ➢ Daily meter repairs including weekly meeting with the supervisor to continue to tackle the everyday maintenance needs. ➢ Assign and review the work scope and projection of future repair timelines. ➢ Oversee review meter labeling and imperative to ensure compliance with laws, ordinances and administrative rules for public safety. ➢ Responsible for collection of coins and meter parking revenues twice a week. ➢ New parking meter installation and of meter post and parking signage which will be scheduled on a proactive basis. SUPERVISOR Customer concerns are resolved in accordance with South Miami guidelines. Our field Supervisor's expertise with conflict resolution can be accessed via telephone, written correspondence or face -to -face communication. Enforcement or maintenance program deficiencies are addressed via training, policies changes and /or disciplinary action. ➢ Supervisor will be completely trained and capable to handle meter repairs as a support on the weekend, should an emergency broken meter situation arise. ➢ Under the direct supervision of the Operation manager, in compliance with all PVB laws, ordinances, codes and regulations; interacts with the public in regard to enforcement issues and general information matters; evolved in the entire Parking enforcement and maintenance program of services and repairs of parking enforcement equipment, such as meters, parking machines and signs; and performs related duties as assigned. A Observe and evaluate effectiveness, and ensure that certain areas are being patrolled. 30 Our onsite supervisor will work very closely with the city of South Miami management to ensure the daily coordination and resolution of any operational issues as they arise. v Oversee the maintenance program, including data entry and implementation of new programs and procedures including weekly meeting with maintenance personnel to ensure all repair and project are meeting deadlines. ➢ Responsible for assuring that requisition necessaiy supplies. ➢ Processing officer activity reports to ensure continued high citation productivity. Supervision of LAZ Parking will provide productivity monthly activity reports summarizing all work citation output for each enforcement officer during shifts. The report will demonstrate a daily breakdown by enforcement officer and the time sequence citation output throughout each shift. A copy of this report shall be provided to the city for review. OPERATIONS .MANAGER - JOSE FERNANDEZ Jose joined LAZ in 2006 and over has over 12 years of parking management experience and currently oversees the overall management of the South Miami parking contract for the past 3 years. • Responsibilities include: oversight of all parking operations at South Miami, staffing requirements and all essential aspects of the contract with a high level of customer service. • Manage, planning, scheduling, training, and directing of all operational activities to ensure that we are exceeding all expectations. • Resolving Parking Hotline related parking issues, questions, disputes or concerns from violators, visitors and residents of South Miami, left directly on our Parking Hotline. • Monitor, review and analyze the fluctuation of approaching the most effective method and strategic approach to enforcement. • Ensuring that increased revenue, managed expenses, and customer satisfaction is maximized by maintaining the highest level of service thresholds and initiatives that are aligned with the expectations of the city of South Miami. • Implement and complete other projects, programs, and initiatives that may arise from the operation of the enforcement, collection and maintenance • Conduct field inspection and follow up on maintenance program, including inspection of "parking signage" throughout the city, to ensure they are clearly displayed and utilized when applicable. 31 Training Manuals (Sample) PARKING ENFORCEMENT MANAGEMENT ;�. LAW Intro Courtesy MH Accurory !. �w x. t rr Y Y Y911!`SPf{ {� Romp v tr r rr o�d Stx;w rv.s —kecer n "ttse all P240UnCC9 'q cernsiderrt�nn d Thut ymr hvnin"n to you 'Pa Be resp"tful end for others r, hr. 'mr TeIIS c Inf Maintain n hove fiord fur especially when alract a Y ' <piensont end pothers' ¢eelinp they may not be polite demeanor, in ion of xo*iic,s the fncTS oe < e fan, LMuimer even I durnst. T r,0- .. aCCOrtYSYaF1cP5. off rnm9m u rcmu MH Accurory !. �w x. rr Y Y Y911!`SPf{ {� Romp v tl dli '(hl i...e come. h m's r+ ncPt nad P r ofs n rcted to "ttse all P240UnCC9 Pny lose r rth earn and 'th ca Fr.`drm ar hvnin"n to you 'Pa otteniioo to penchle ; ya :1y9'iryg nf.rl'e Uro(rer ". detail +nfnrmnt"a xo*iic,s LMuimer ,g a�rYon) 33 1 1 l i 3 ,lira i i. NAFFING REQUIREMENTS (ADJUSTED) Pro osed Staff LAZ Parking proposes to add on on -site supervisor to assist in the operation. We will also add a full -time Maintenance employee. This would add about 40 hours of Meter citation coverage and 16 hours of Maintenance coverage per week. This coverage is needed to assist in the conversion to master meters as well as much needed coverage for new garage that was not included in original scope. Sample of new schedule below: City of South Miami Staffing Schedule Hours per Monday Tuesday Wednesday Thursday Friday Saturday Sunday Week Personnel Hours per Maintenance/Collection Staff: Supervisor 1 Fulltime — Ruben Gonzalez I Fulltime - TBD I Part- time- Lazaro Gonzalez Enforcement Officer: 3 Fulltime — David Dzamba, Mike Perdomo, Carlos Marenco I Part -time — Alex Ruano ( 1 employee on Military Leave, Elinor Berkowvitz) 34 3. OPERATIONS MANAGER ® JOSE FERNANDEZ Jose joined LAZ in 2006 and has over 12 years of administrative corporate accounting experience with a strong track record in revenue controls, human resources, employment recruitment, financial growth development and management of new parking acquisitions including hotels, office building, hospitals, entertainment valet venues and municipalities. Jose has parking management experience and currently oversees the overall management of the South Miami parking contract for the past 3 years. • Responsibilities include: oversight of all parking operations at South Miami, staffing requirements and all essential aspects of the contract with a high level of customer service. • Manage, planning, scheduling, training, and directing of all operational activities to ensure that we are exceeding all expectation. • Resolving any parking hotline questions, disputes and concerns from violators, visitors and residents of South Miami left directly on our Parking Hotline. • Monitor, review and analyze the fluctuation of approaching the most effective method and strategic approach to enforcement. • Ensuring that increased revenue, managed expenses, and customer satisfaction is maximized by maintaining the highest level of service thresholds and initiatives that are aligned with the expectations of the city of South Miami. • Implement and complete other projects, programs, and initiatives that may arise from the operation of the enforcement, collection and maintenance • Conduct field inspection and follow up on maintenance program, including inspection of "parking signage" throughout the city, to ensure they are clearly displayed and utilized when applicable. 35 4. HIRING AND HR LAZ Parking believes that first impressions are lasting impressions. We believe people make the key difference in the service sector and have developed the following training - intensive program to help develop our employees into the best in the industry. All new employees have a training session with either their manager or the city manager to go over important aspects of the job, i.e. uniform policy, review process, pay scales, policies and procedures on missed days, etc., and customer relations. Most importantly, all new employees are introduced to LAZ's "Think like an Owner" philosophy. At the front - line employee level, this translates into providing service to and solving problems for, the customer. Employees are encouraged to demonstrate initiative and make common - sense decisions in order to satisfy specific needs of the customer. Our aim is to impress upon our customers the fact that our employees are empowered to assist them -- and exemplary performance by employees in these categories is acknowledged and / or rewarded. An employee who perceives his role as a "processor" rather than as a problem solver, and who demonstrates any trace of "it's not my job -ism" will be negatively reviewed (and warned that failure to address that attitude problem will be the basis for termination). After this initial session with a manager, all employees are scheduled to work with another employee to assist with the adjustment to a new work environment. Training ranges from 8 hours to 32 hours based on manager and employee (trainer) evaluations. During this time, trainees are instructed on shift reports, punch -in and punch -out procedures, revenue control, equipment, deposits and emergency procedures. LAZ Parking has consistently found ways to attract and retain quality employees from the competitive employment market. This is achieved through several different avenues that start with the recruiting efforts, the selection process, ongoing training and developing, motivational techniques, providing upward advancement opportunities and offering better wages and benefits than the industry average to all employee levels. Emulovmentwith LAZ Preliminary Pre - Interview Screening At the front -end of the process, LAZ Parking often uses a professional telephone interviewing service to pre- screen candidates before they are invited in for formal interviews. Hiring managers are trained in how to narrow down the potential pool of applicants to qualified individuals, and how to thoroughly check employment and personal references. All potential enforcement officers must complete state certified test prior to applying. Background Checks All candidates for employment, prior to receiving an employment offer, must successfully pass a criminal background check. Depending on the preference of our 36 client at any given location, candidates may also have to pass a pre- employment drug test. Criminal Background Checks LAZ Parking utilizes the services of American Background Information Services, Inc., to perform background checks (including criminal record searches, credit history and motor vehicle record searches) on all prospective entry -level and management candidates. Screening of all management -level candidates, including supervisors, specifically covers criminal records, credit violations, motor vehicle driving infractions (if the positions involve driving), educational credentials and prior employment. Candidates for non - management positions that involve driving are screened for criminal and motor vehicle driving infractions. If the position does not involve driving, the candidate is screened for a criminal record. Pre - employment Drug Tests Pre - employment drug testing is required of all candidates for employment at the request of our client. We administer similar drug screening tests at all managed locations in which the client requests that we do. Screening Reduces Turnover and Improves Customer Relations Our hiring and pre - screening process helps us retain qualified employees for the long- term, which, in addition to reducing turnover costs, gives our clients and parking customers the opportunity to establish the personal relationships and trust that facilitates a successful and profitable parking operation. LAZ Parking has an industry leading 10% turnover ratio. Initial Employment All persons lured to work, full or part-time, become employees of LAZ, are required to conform to the rules and regulations of LAZ, and are expected to perform their duties in the best interests of LAZ and its customers. The Human Resources Department performs a criminal background check for all new hires and follows the guidelines set forth by state and local government. All new hires participate in LAZ's orientation program, which educates them on company policies, procedures, ethical obligations, and employee benefits. Federal laws require that every employee must show proof of citizenship or a right -to -work document. At the start of employment, each employee is on probation for a period of 90 days, during which time the employee's performance, attendance, job skills, and attitude is carefully evaluated. If at any time during the probation period, the new 37 employee fails to meet the requirements specified for the job, the employee may be terminated or offered another assignment. Employees must have self - confidence and a high level of self - esteem, must have good social skills, and must present a good personal appearance. Because LAZ believes that first impressions are lasting impressions, and because LAZ understands that people make the key difference in the service sector, LAZ has developed a four -part training program in which all employees participate. Classroom Training LAZ Parking's basic instructional program introduces each new employee to the fundamentals of parking. A comprehensive training guide educates employees on resident/customer relations, codes of conduct, job performance techniques, and problem solving. Most importantly, all new employees are introduced to LAZ Parking's "Recipe for Success ": Trust, Dependability, Positive Attitude, Teamwork, and the Ability to Learn. Here, the employees are taught the 5 building blocks of success and how to utilize these qualities during employment with LAZ. At the front -line employee level, this translates into providing high quality service, creating a positive attitude, and solving problems for the customer. Employees are encouraged to show initiative and to make common sense decisions in order to address specific needs of the customer. Our aim is to impress our customers with the fact that our employees are empowered to help them- -and exemplary performances by employees in these categories are acknowledged and /or rewarded. An employee who perceives his role as a "processor" rather than as a problem- solver, and who demonstrates any trace of "it's not my job -ism" will be negatively reviewed (and will be warned that failure to address that attitude problem will be the basis for termination). Mentor Shadowing: New employees are scheduled to work with an employee in the same job category 16 to 32 hours, based on manager and mentor evaluations. During the mentor shadowing process, the mentor reviews all important procedures within the cashier /valet training guide. This important step assists new employees in adjusting to the specific work environment, and gives the new employee and example of acceptable work habits and teamwork. Mentors are chosen from the field of veteran t � employees based on their performance. ff Feedback Initial feedback - An employee's first 10 days are carefully monitored by the manager. The employee is shown an initial review, which addresses work habits, appearance, paperwork, customer contact and on- the -job performance. 38 90 -day performance appraisal - All new employees are given a comprehensive evaluation after 90 days. Group evaluations- Group evaluations of work teams are conducted on a regular basis through staff meetings and at special training events. Additional individual evaluations - Additional evaluations are performed on an as- needed basis and at time of periodic salary reviews. Post Employment Education: LAZ Parking also has a "Post Employment Education" program which instructs line level employees and managers on developing skills necessary for advancement within the company. Formal classroom setting courses are offered, and employees must accumulate course credits in order to be considered for promotion. Examples of some of the courses that LAZ offers follows: "GET 100" III "How to become a better Manager" "Motivating your Employees" "Communicating to Employees" "Loss Prevention" "Property safety" "Time Management" "Business Ethics" Employee Retention During the employee screening process, LAZ Parking tries to identify any employee who may have the potential to leave prematurely or who may pose a termination risk. As a whole, LAZ Parking's turnover ratio is well below the industry average. LAZ employees stay with the company an average of 7 years. Our ability to retain employees is a function of (i) maintaining a positive and supportive work environment; (ii) providing qualified employee's meaningful career advancement opportunities; and (iii) providing a quality benefits program (see Employee Benefits section below). We believe in taking care of our employees to the best of our ability. 39 EQUAL EMPLOYER OPPORTUNITY LAZ Parking is an equal opportunity employer. We recruit, hire, train and promote our employees and administer our personnel policies without regard to race, color, national origin, ancestry, religious creed, age, gender, pregnancy, marital status, veteran status, disability, sexual orientation, lifestyle or non - job - related handicap or medical condition or any other factor in accordance with applicable laws. We are dedicated to ensuring that all decisions regarding personnel are in accordance with our principles of equal opportunity. In line with our business philosophy which is rooted in the goal of providing opportunities to all employees, LAZ Parking is deeply committed to growing our diversity spending by engaging women and minority owned businesses, as well as inner - city residents and veterans. Alan Lazowski, our CEO, has imbued the company culture with a deep conviction of "doing the right thing." Giving the economically - challenged citizens of our country an opportunity to grow their business is just the "right thing to do." In order to accomplish our goal, we have employed a three -pong approach as outlined below: State- Certified W /MBE and ICBE Information Having contracted with numerous municipal organizations throughout our regions to manage their parking facilities, we are familiar with the lists of certified MBE /WBE and ICBE that can be obtained through state agencies. We obtain updated lists periodically and use those lists whenever we need to subcontract specific projects or purchase materials. Working with Jobs - Training Programs Many local governments have established some type of jobs training programs aimed at giving disadvantaged residents the opportunity to receive training that will enable them to earn living wages. Whenever possible, we participate in those programs and work with the local agencies to formulate the types of training programs that mesh with the government or quasi - government agencies overseeing those programs. As an organization, we are delighted when a previous hourly employee whom we hired through a jobs program has advanced to a management level position. We provide every opportunity for these employees to advance, from shadowing a manager with good teaching skills, to sending employees to classes such as "hnproving Communication Skills" and "Developing Leadership Skills." Equal Employment Opportunity Policy It is the policy of LAZ to provide equal employment opportunities by recruiting, hiring, training, and promoting employees without regard to race, color, religion, age, sex, national origin, ancestry, marital status, pregnancy, present or past history of disability, sexual orientation, veteran status of National Guard or reserve unit duty obligations, or any other criteria prohibited by applicable law. LAZ will not tolerate any conduct in violation of this policy. Violations will result in swift disciplinary action including termination if appropriate. 40 EEO Responsibilities All managers, supervisors and employees who make recommendations regarding the employment - related factors noted in this policy are responsible for the policy. All managers and supervisors are responsible for reporting and correcting any observed violations of this policy regardless of whether a complaint is received by another employee. EEO and Affirmative Action Guidelines and Procedures The company is committed to the principles of EEO and takes affirmative actions to ensure that all employees are treated fairly without regard to race, color, age, religion, sex, national origin, disability, veteran's status or other legally protected status. Such action includes, but is not limited to, employment, promotion, demotion, transfer, recruitment or recruitment advertising; layoff or termination; rates of pay; benefits, or other forms of compensation; selection for training and educational reimbursement; and social and recreational programs. The company fully complies with all the laws and regulations that require filing annual statistical reports on employees and applicants for employment. In addition, the company strives to fully comply with all the laws and regulations that protect the disabled and disabled veterans. All applicants and employees are invited to voluntarily self - identify gender, race, veteran status, and any disabilities that require special accommodations for the purpose of equal employment opportunity as required by Federal and State laws. Employees should be made aware of the company's procedures for reporting violations of this policy by publication of these procedures such as this manual and other means as appropriate. All violations of this policy must be reported to the appropriate supervisor, the next level of supervision, or the Human Resources Department. The manager or supervisor must forward all complaints directly to the Human Resources Department. The Human Resources Department or its designee shall conduct a thorough, discreet and prompt investigation of all claims in violation of this policy upon receipt of the complaint. The investigation will be conducted by an objective member of the Human Resources Department or its objective designee. The investigation may include, without limitation, interviews with all parties to the complaint, any other person who witnessed the incident or has any other information concerning the matter. Confidentiality will be maintained to the extent possible without jeopardizing a full investigation. No employee will be disciplined or otherwise retaliated against for making a good faith complaint or for participating in or cooperating with an investigation. Once the investigation is complete, immediate, appropriate, corrective and /or disciplinary action will be taken. The result of the investigation as well as the decision as to any corrective and /or disciplinary action will be reported to both the complaining party and the accused party. 41 Immigration Law Compliance Policy The company will verify, through documentation, all employees' personal identity and eligibility to work in the United States in compliance with the Immigration and Naturalization Services' Employment Eligibility and Verification I -9. Procedures Management must have newly hired employees complete, sign, and date Section I of the form 1 -9 on the first day of employment. By the end of the third day of employment, management must complete, sign, and date Section 2 of the Form I -9 by reviewing the employee's original documents and establishing the employees identity and eligibility to work in the U.S. Management should not ask for or record more documents than are necessary per the form I -9 and its instructions. Management must review Section 2 documents to ensure they are on the list of acceptable documents, appear genuine and relate to the employee. If the document must be verified, Human Resources must record the expiration date of the document in its re- verification tickler system. I -9 forms should not be kept in the employee's personnel files. Instead, the 'forms and document copies should be maintained together and audited annually. If a receipt is presented for verification purposes, counsel should be consulted with regard to whether or not the receipt is acceptable. Form I -9's must be kept on file for the longer of 3 years or 1 year after the employee terminates employment. Sexual Harassment It is the policy of LAZ to oppose any form of harassment -- including sexual harassment on the job by co- workers, subordinate employees, or supervisors. Substance Abuse Alcohol and drug consumption is not allowed during work hours or permitted in any work areas of LAZ Parking. Employees who show signs of being affected by drugs and /or alcohol will be subject to possible termination process. Employee Insurance LAZ Parking provides group medical insurance benefits and group dental insurance benefits. LAZ Parking and each full-time employee share the cost of the insurance policy premiums equally. Employees must, however, pay the full premium cost for any dependents added to their policies. Full coverage for employees under the medical, life, and dental group plan is outlined below, based upon a bi- weekly pay schedule. Employee 401K Plan Every employee who has been with the company for at least one year and who works a minimum of 20 hours per week is eligible to participate in the 401K Plan. LAZ, Parking matches every dollar contributed by the employee up to 5% of their contribution. For further details, please contact the LAZ Parking office. 42 1 I . e i { EMEEM Medical Insurance 90 calendar days Bi- weekly contribution by employee. X X May purchase dependent coverage X X Dental Insurance 90 Calendai Bi- weeekly contribution by employee. X X days May purchase dependant coverage. X X Life 90 calendar days Paid for by Company X X Insurance Vacation I year I week paid vacation X X 3 years 2 weeks paid vacation X X 5 Xears 3 weeks paid vacation X Paid Sick Leave I year 2 days per year X X 3 years 3 days per year X X Paid Holidays 90 calendar days New Year's Day, MLK Day, Inauguration X X Day, Presidents Day, Memorial Day,, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, Christmas Da Personal Leave 1 year 1 day per year X X 3 years 2 days per year X X 5 years 3 days per year X X Emergency Leave 90 calendar days 3 days off with pay in the event of death X X of immediate blood relative Medical Leave I year Up to 12 weeks recuperative leave of X X absence Military Leave 1 year On a case by case basis X X Jury Leave 90 calendar days Time off granted, and jury pay X X supplemented to equal normal earnings Military Re -hire 90 calendar days Employee re -hired in the event of active X X duty or reserve component call-up Tuition 1 year Employee reimbursed cost of tuition & X X Reimbursement fees for approved study 401(k) Plan 1 year 50% Company Matching Funds up to 5% X X of employee salary invested. Vesting is on basis of yearly employment with the company. 43 SECTION 3 MIMM wil An IIUTMIIITAVwuq ml 44 t 'i 1 lmcys, , MrIum s Parking Equipment LAZ Parking embraces technology and with over 950 garages and surface parking lots currently under management, LAZ Parking has extensive experience with a wide variety of municipality conversions, revenue control equipment, systems and manufacturers. We are currently in the process of converting a 36,000 meter operation in Chicago to almost 75% pay- and - display technology. LAZ Parking is not tied to any particular equipment vendor, but provides a significant discount to clients due to our large purchasing power. We use a parking equipment vendor with a proven product that performs well in the geographical area we are installing and local service response. The following includes some of the equipment we have installed and currently use at other LAZ, locations: Digital Technology CALE z_ 4 LAZ parking is currently installing Cale machines in City of Chicago. Also used by City of St. Petersburg, FL PARKEON The largest supplier of pay- and - display machines in Florida. City of Miami Beach and City of Miami use Parkeon. 45 Parking Equipment Recommendation We recommend the installation of 13 -15 Digital Master Machines in Phase I of parking improvements in the City of South Miami. Illustrated in the picture below are the possible locations of the Master Meters on 72nd Avenue, surface lots and 73rd Avenue. This would cover most of the Central Business District. We also recommend replacing approximately 100 Duncan meters in other high traffic areas with new conventional single meters. Our team has over 20 years of experience in installation, maintenance and collection of parking meters including overseeing all parking operations for the City of South Miami. Phase II would include additional master meters in the CBD. We also recommend changing the current rate of $1.00 an hour to $1.25 or $1.50 per Hour. 46 RETURN ON INVESTMENT (MASTER METERS) PROPOSED EQUIPMENT IMPROVEMENTS & REVENUE ENHANCEMENTS CITY OF SOUTH MIAMI Increased Meter Rate 1. Increase Meter Rate From $1.00 per Hour to $1.25 per Hour. This increase would reflect a 18% additional revenue. Factors are loss of use due to dissention. Change Hours of Operation (9 :00 am - 1:00 am) Friday and Saturday. Total benefits of 25 %. (escalated annually by 3 %) 2. Installation of 15 Master Meters. Meters would replace approx. 120 single head meters in Central Business District> These high volume and high revenue meters represent approx. 26% of the overall revenue. Industry standard of 11% increase in revenue is projected when converting single head to master meters..( escalated annually by 3 %) Year 1 2 3 4 5 Total $198;000 $203,940 $210,058 $216,360 $222,850 $1,051,208 $31,460 $32,404 $33,376 $34,377 $35,409 $167,026 Total Revenue Increase $229,460 $236,344 $243,434 $250,737 $258,259 $1,218,234 CAPITAL COSTS & OPERATING EXPENSES 1 .Purchase and Installation of 15 Pay - and Display and upgrade to accept credit card Parking Master Meter equipment (Total Cost of Equipment is $225,500 including installation). Total Cost has been leased over 5 years with 8.5% interest charge 2. Repair and Maintenance: The new equipment is under warranty during year 1 and we estimate that only $8, 000 of R &M expense will be necessary in year 2, and it would increase by 3% thereafter. 3. Cost to operate the New Master Machine :, DSL lines, Paper, Ink, etc. TOTAL CAPITAL COSTS & OPERATING EXPENSES TOTAL ANNUAL RETURN w/ Rate increase TOTAL ANNUAL RETURN w/ NO Rate increase ($55,518) ($55,518) . ($55,518) $000 ($8,000) ($8;240) ($55,518) ($55,518) ($277;590) ($8;488) ($8,742) ($33,470) ($18,000). ($18,900) :($19;800) ($20;700)" ($21,600) ($99,000) ($73,518) ($82;418) ($83;558) ($84,706) ($85,860) ($410,060) $155,942 $153,926 $159,876 $166;031 $172,399 $808,174 ($42,058) ($50,014) ($50,182) "($50,329) ($50451) ($243,034) 47 t ADDITIONAL TECHNOLOGY AND OPERATIONAL ENHANCEMENTS Electric Enforcement Vehicles (Gem Vehicles) LAZ Parking recommends replacing current (Cushman) vehicles with 2 new electric vehicles to reduce emission, gas consumption and overall compliance with a greener operation. Current vehicles need to be replaced due to repairs and age. Approximate cost is $1,3,500 per vehicle. Total Cost $27,000 (Z) Electric Enforcement Vehicles (Segway) LAZ Parking recommends adding this vehicle in addition to the 2 Clem vehicles to keep of the demand of enforcement. Currently we have to schedule one officer without a vehicle during peak demand and this vehicle will increase patrol time while maintaining a green policy. Approximate cost is $8,000 fully loaded Meter Collection and Maintenance Device LAZ Parking recommends adding this device to streamline collection and maintenance process. These handhelds tracks money collected by meter and does a complete diagnostic test of meters. These devices will assist in check and balance with revenue collections and allows us to keep a historical of repairs and citation contested. Approximate cost is $4,500 48 i LAZ PARKING CAPITALIZING COST OF TECHNOLOGY ENHANCEMENTS LAZ Parking has the financial resources to purchase all new Master meters on behalf of the City of South Miami. This cost can be amortized over an agreed upon term or paid in one lump sum back to LAZ Parking. LAZ Parking does not profit from the purchase of the equipment. We are extending the direct cost from the vendor to us and passing on the savings to the City of South Miami. LAZ recommends using Digital Technology for the master meters and Duncan for the single head meters. Digital is currently being used by the City of Fort Lauderdale and University of Miami. Duncan is the current vendor being used in the City of South Miami and includes interchangeable components with existing meters. LAZ Parking will purchase and maintain liability insurance in compliance with the City's requirement during the install. LAZ can capitalize the cost of the following: © (15) Master Meters (Digital) or a different vendor if city chooses Q (15) Additional Meters in Phase 11 of modernization QP (2) Gem Vehicles @ (1) Segway transport vehicle ®(1) Collection & Enforcement Device All cost can be amortized during term of the agreement. LAZ does not install master meters, a company certified to install will be responsible. The operation and management of the parking meter services for the City of South Miami represents an exciting opportunity for LAZ Parking. Our supervision and management of the meters will maximize revenue, beautify through the use of new technology, add much needed controls and ensure a welcoming, user friendly experience for all patrons of the service. 49 MMAHIME am 50 The monthly rate will include the services described in the RFQ. All cost below is included in the fee: ® All staff described in staffing schedule and operational plan. Q All payroll related cost, including taxes, health insurance and 401k 0 All training and on -going training ® Criminal background checks and random drug testing © (1) Maintenance Service vehicle (including gas, insurance and maintenance) and necessary tools to perform maintenance of meters (replace single head meters) Q Uniforms and Badges for all employees Q All necessary permits and licenses to operate duties © Issuing and paying for Nextel phones for all employees 0 Cost to hire state certified parking enforcement specialists ( All necessary insurance coverage and indemnification to operate in the city Monthly Fee $25,975.00 per month or $31.1,700 Annually Fee will require a yearly cost of living or CPI index increase during term of the agreement. Current agreement did not include any adjustments for cost of living increases. LA7 parking will also entertain a fat inanagement fee with all cost passed back to client. 51 INNAVIrOrMTRUM LAZ Parking is always striving to maximize profit while maintaining a balance of client satisfaction and the sensitive nature of our business. We are constantly reminding our enforcement specialist that our job is to encourage meter feeding. Quotas are never set. LAZ Parking took over operations in 2006. The citation revenue has increased 35% in the past 4 years. This can be attributed to usage and the well trained and efficient staff. The low in crease from 2006 to 2007 was attributed to several days of inclement weather and the loss of the surface lot due to new garage. We also increased spaces when garage was completed in 2008. The increased usage and new garage resulted us in adding an additional parking enforcement specialist for the new contract terms. We are projecting to finisli 2009 with approximately $1,316,000 in tonal citation revenne. This additional revenue along with increased revenue from meter collections will allow city to absorb increased cost to operate enforcement and collection duties. 52 In response to the privatization opportunities in Chicago in 2006, LAZ Parking partnered with Morgan Stanley to become the operating partner for the largest parking system in the US, with 9,200 spaces at Millennium Park in Chicago. With the increased demand and growing opportunity to invest in all types of parking real estate, LAZ formed LAZ Parking Realty Investors in the fast quarter of 2007. LAZ Parking Realty Investors is currently engaged in co- investment and advisory activities with various infrastructure funds on parking projects throughout the country. LAZ Parking Realty Investors has created a partnership with Lubert Adler Real Estate funds to invest in up to $1 billion in parking assets, including non - infrastructure parking garages and lots throughout the country. Acquisition opportunities include privatization projects in small, midsize and large cities, as well as counties, hospitals, universities, transportation intermodals, arenas and on- street meters and enforcement. Future Trends in Parking Privatization ® Continued expansion of private projects investors Strong market Opportunities through increased awareness Fueled by concerns about public debt QP Better definition of equity TD Streamlining the process Leasing and PrivaYizins City of.South Miami Parking 4ssets Agreement Lease Optional LAZ Parking would like to entertain the possibility of operating under a lease /shared revenue or complete privatization agreement to operate all parking for the City of South Miami. If LAZ and the City of South Miami can mutually agree to a fair Market Parking Rate structure we can commence with a lease agreement. Under this optional lease agreement, LAZ Parking would pay all normal operating costs associated with the ongoing operation of a parking facility; this would not include costs such as structural repairs, utilities, etc.... 53 SECTION 5 .� flymil 54 We have built our reputation by the excellent customer service we provide to our clients, customers, parkers and visitors. We continuously explore new ways to improve on the experience that people have when they utilize parking facilities which we manage. Our goal is to "GET 100" all the time on customer service and on resolving all customer issues, complaints or concerns in a prompt, courteous manner. The majority of customer/ staff interactions involve the following situations: 1. Customer looking for information — Information sought usually includes: ® Hours of operation ® Directions O Parking rates @ Available parking spaces Resolution: The information is provided to our employees so they can quickly answer the customer's questions. If they do not know the answer, there is a chain -of- command regarding who they should contact for the information. 2. Customers looking for a solution — Typical examples of this are: © Customers who are lost © Customers who do not have sufficient money to pay O Customers who cannot find their vehicles Resolution: LAZ Parking has specific policies and procedures to follow and resolve these types of issues. We will provide these to the South Miami for approval before implementing them. Employee training involves discussion of these issues so they understand their role and responsibility. 3. Customers who want to be heard — These customers can be the most challenging because they may exhibit and following actions: © Angry or upset © May be irrational O Need to vent (B Not interested in explanations Resolution: Employees are trained to listen effectively to the customer and identify the issue. They are also taught to remain professional, patient and offer a solution. We teach the cashiers phrases on how to choose the most appropriate words when offering a solution. If a customer does not want to accept the employees' solution, they immediately contact their supervisor. He or she will be available to assist with these situations and will promptly work with the customer to resolve the issue. We ask to get a name and phone number for further follow up action if necessary. 55 ADDITIONAL, CUSTOMER SERVICE All complaints are recorded in the operational logbook which is available for review by management and City of South Miami. This logbook serves as an aid to management to identify any reoccurring complaints in order to implement a more lasting solution or develop additional training programs for the staff. ESSENTIAL CUSTOMER SERVICE SKILLS FOR WMATA EMPLOYEES The First Impression - Everyone has heard the old phrase "You never get a second chance to make a good first impression." This still holds true ever more today than before. As the current service provider for South Miami, it is expected that we uphold the highest level of customer service and professionalism. Not only are we the face of LAZ but the City of South Miami as well! Like most businesses, Parking Operations are a customer service business. How we handle those first impressions set the tone for our entire relationship with our customer. Each contact you have with any patrons, tourists or employees is one of those "moments of truth" where impressions are formed. We need your help in being the best that we can be! SMILEN! WHY The ultimate Isr impression. It shows that you are happy and confident. It sometimes makes other people smile and can cheer them up as smiling is contagious. WHEN Instantly of course!! As the car pulls up, we say "When the window rolls down "(or as the customer approaches on foot). WHERE Everywhere of course! You are on stage. Sometimes those "moments of truth" happen at the Booth... sometimes in the parking lot. REMEMBER, you are on stage. HOW You've got to mean it - A forced, half- hearted smile is seen by everyone. Make it easy on yourself - Do your best! ! SPEAK FIRST! WHY To show the customer you care and are confident. It makes them believe in you; that you will help them. WHEN Just like it says ... talk to them before they talk to you!!! 56 WHERE Anytime at work, remember you could be the first and last impression HOW Be enthusiastic and friendly. Give them a solid opening salutation "Good Morning, etc.... EYE CONTACT WHY The highest form of human courtesy is listening! The best way to show people you are listening is to look them in the eye. It shows that you are paying attention and that they are important to you. WHEN As soon as possible. WHERE Everywhere HOW Don't stare, but show the customer that they are important and you are paying attention. They will see you as confident. FRIENDLY CONVERSATION WHY It cements the positive experience you have already built. Friendly conversation is a "Rapport Builder ", it's non - threatening and you are making the initiative again. It is a welcome step and possibly will allow you to solve or avoid problems. WHEN When it is appropriate, look for the opportunity but don't push as you do not want to come across intrusive. WHERE As above, where it is appropriate, if you think it might be awkward do not engage in the conversation. But don't be bashful. HOW Small talk, sports, hometown, the weather, and practice it just like anything else you will become better. BENEFITS We have transitioned hundreds of different parking contracts over the last twenty -six years of business. These include transportation intermodals, hospitals, municipalities, university, government and private contracts. Some of these contracts have required us to provide certain benefits, wages and employee perks. Our organization has the flexibility to provide at least the "equal" amount in these areas if not better. We differentiate ourselves from our competitors as we currently pay 97% of the total cost for health benefits to our employees at South Miami. 57 With over 950 garages and surface parking lots currently under management, LAZ Parking has extensive experience with a wide variety of revenue control equipment, systems and manufacturers. Shown below is some recent equipment that we consulted on and implemented: Connecticut Financial Center — New Haven Connecticut LAZ Parking, in conjunction with owner Chase Enterprises, replaced an outdated DOS based SECOM system with a Federal APD SCAN NET Windows based system for a 700 - space, high volume transient and monthly garage. Hartforrl21 — Hartford. Connecticut This location consists of two components. The first is a total redevelopment and restructuring of the old Hartford Civic Center public and event garage. LAZ Parking worked alongside the developer and : owner, Northland Investment Corporation, and their consultants to accomplish the task of redeveloping the existing 375 -space garage to accommodate a highly volume of monthly, transient and event parkers. The second component was the development of a brand new 428 -space residential garage. The parking revenue control package consists of a variety of technology from proximity cards to AVI technology, pay -in -lane, central cashiering, and a full _ security surveillance system. Norwalk Parkine Authority — Norwalk, Connecticut After being awarded the parking management contract for the City of Norwalk, LAZ Parking was instrumental in consolidating the access and revenue control systems in each of the five off - street facilities. Using Amano /McGann and Parkeon equipment the consistencies brought about through these new installations enhanced customer services and cost efficiencies. The access and revenue control systems consisted of all aspects of technology from proximity cards to central cashiering and automated pay 58 stations that have effectively reduced labor expenses. 18 Temple Street Garage — Hartford, Connecticut Just recently constructed, this brand new 343 -space parking garage services the downtown Hartford business district along with The University of Hartford student housing and 11,000 square feet of retail and restaurant space. LAZ Parking successfully bid this project and oversaw the installation of new parking revenue control equipment consisting of an AVI TRANSCORE system, pay -on -foot, central cashiering, and pay -in- lane. Metropolitan Garage — Boston, Massachusetts The Metropolitan Garage contains two lanes of Zeag equipment. This garage has a central cashiering system /lag time reader format. 59 l'. • 1 ` j. iii 11 LAZ Parking believes that it is important to provide additional revenue streams for our clients; below please find our suggestions for additional revenue generation. ➢ Parking Stripe Advertising Parking Stripes® are slip- resistant, fully insured, printed vinyl which covers existing painted parking stripes. The adhesive firmly bonds Parking Stripes® to the existing painted stripe, yet can be removed without damaging the surface. Parking Stripe® advertising messages are unobtrusive from public right -of- way areas, yet highly effective when standing over Parking Stripes Parking Stripe® Ink Parking Stripe® ink has been designed specifically for outdoor use and can handle any weather conditions. Each Stripe will maintain its color for up to 5- years, well beyond the life of the stripe itself. Parking Stripe© Durability Parking Stripes® are weather resistant and provide excellent reflectivity and color retention. Experience has shown that these stripes will show no appreciable fading, lifting, shrinkage or chipping when applied according to Parking Stripe® Advertising's recommendations. All Parking Stripes(M are fully insured. BIG Media Sales LLC originated as a means to sell unique vinyl vehicle wraps on high visibility trolley cars and double decker buses across major markets in the US. Over the past few years, BIG Media has evolved into a powerful entity of its own- reaching a more targeted consumer on the streets of cities all over the USA via vehicle wrap programs,, sampling efforts, promotions and now - Parking Garage advertising programs all over the USA, working side by side with today's biggest brands in business, and making headlines with our investment in state -of -the art technology - 0111 bringing the Outdoor category into a league of its own. BMS is in touch with every major out of home media buying and planning group, and is constantly added new options for those buyers to consider. Most recently, BMS embarked on a plan to deploy 32" to 50" flat screens above "pay on foot" stations in parking garages all over the USA via our connections with LAZ Parking. To say the least, we have no fear of the unknown. In fact ... we embrace creative challenges, we thrive on the unexplored, and we defy conventional thinking with BIG action. We like to call it MOBILE EXPERIENTIAL MARKETING. A true branding experience. We target people that are constantly on the MOVE, on foot and in cars. With a vinyl / sign program in place in side garage /lot entry / exits, along with a broadcast system deployed in garages /lots coast to coast, clients can expect to see revenue streams of between $5,000 to $25,000 per month based on market ranking, and ability to display screens and vinyl wrap / banner programs. Please see more example of advertising on the following page. 61 Insurance — LAZ Parking currently maintains the following minimum insurance coverage's however additional coverage can be added if needed. We have provided a sample certificate on the following page. General Liabili $2,000,000 $2,000,000 $1,000,000 $1,000,000 $ 50,000 $1,000,000 $1,000,000 $1,000,000 $ 25,000 Automobile Liability: $1,000,000 $ 5,000 $1,000,000 $1,000,000 $ 1,000 Crime Coveraee Employee Dishonesty — Blanket Money and Securities on/off Premises Robbery and Safe Burglary on /off Premises Excess Liability: $50,000,000 $50,000,000 General Aggregate (Per Location) Products and Completed Operations Aggregate Personal and Advertising Injury Each Occurrence Fire Legal Liability (Any one Fire) Non -Owned and Hired Automobile Liability Employee Benefits Liability Garagekeepers Legal Liability (Per Location) Self- Insured Retention — Combined Per Occurrence For General Liability and Garagekeepers Legal Liability and Garagekeepers Legal Liability (Loss Costs Included within the self- insured retention) Automobile Liability Medical Payments / per person Uninsured Motorists Underinsured Motorists Physical Damage Deductible Liability Deductible $ 500,000 $5,000 $ 10,000 $1,000 $ 10,000 $1,000 Excess Liability Per Occurrence Aggregate Limit 62 SAMPLE CERTIFICATE OF INSURANCE AGOR0. CERTIFICATE OF LIABILITY INSURANCE %is3 zoce° k'- pn'ctA (617)471 -2220 FAX: )617 1 4 79 -5197 THIS CERTIFICATE 1S ISSUED AS • MATTER OF INFORMATION Amity Ins,4xanCe Agency. In--. ONLY AND CONFERS 110 RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 500 %°ictoxy Rd ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Marina Hay North Q01n^_' MA 02171 INSURERS AFFORDIW3 COVERAGE NAICI 111_Rl. 1111 IE ALEXInat= Insurance LAZ Parking ml:tp,Val'ey Fore Insurance ':Ht4'rtfi !: Federal Insurance 15 Levis stIeet ,,,lo,Rational Union Inearanoe nl=xiLFT:e Hartford Co 06103 �M -IS' OF I: LYA.CE U ­Ti: SELO A - .A.EEEE E.E_70- XEVV.E: NkIs] AE9:E= CR- .iF „[YFEFOC 1_. pTyl'n Tldr]I &iAl = EC'.eREl.IEnT. TEF ORCCYC -ION.. A Y : I.TlZ :T -Z - -kER DIO= : SN- Vl-- RE_. v T TO d' -IC dI -FICA?E t{ EE :tLi- _ AI '. FERTM. Y_ Y2Li {VC£ { RGEE £'? FE :LS EL C .RIBED FERE 4 :.B.EGT F. _„ BE TEF.V Ek L I- ]'. .1.. OF ,JC9 F]OC E] Yv(t Vl'NyVNFhVt .. 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C C0 V1Y�k Crime - Empl.7ycG OJCSSi9ls 7t xxi'^ $530, OCC H DiASoac:ty 1m1: 3 ng vuccx $3,000 Third f'er_y Crnrcragc UA iIIG�YVf CI _k I I3ha.LOCA =. +kVbr Y]lU 6:14151Jh5 tt c,+on r o_ t. oii q:t sr.. tS .. c.vtt.te !. _ d1 a atltl_oLl,d. von roel vs aori a .at Lot 1, *n x_. tl wLRE -. kL „ _� b t my v-yth ien¢oc: to U yov'ni co f Lpo no<mw 1a�arad. or. p,,x I'll .. oh+ 11 111 441 k LII,.EU H l,t {Ak_E , IM: tI.19PI11 Vz 1, 1x1 It V1 IYt NW-11 IfY h_N I'll-, ER llllN 'o NAi 30 L 'xn rev LCn 1 rv..ee nee +ate r.4roe tit_ .r to I 1F 11 G to 1111 INI `11 COV)fill V 1N I.A "-Il111 L"V JI: 111 IAI\ AC DRD 25 ;20OINEI ACORO CCRPORATION 198E 63 f 1 r ➢ LAZ Parking 2006 Financials LAZ Parking 2007 Financials LAZ Parking requests that the following financial statements be kept confidentiaL FEDF- nmAN', LALLIY & REMIS LLG CERTIPIEO PUBLIC ACCOUNTANTS 231 FARMINGTON AVENUE FARMINGTON, CONNECTICUT 06032 (860) 678 -7100 • FAX (860).678 -7101 To the Stockholders Laz Karp Associates, Inc. and Subsidiaries Hartford, Connecticut We have reviewed the accompanying consolidated balance sheets of Laz Karp Associates, Ino. (an "S" Corporation) and Subsidiaries as of December 31, 2006 and 2005 and the related consolidated statements of income and retained earnings and cash flows 'for the years then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American hrstitute of Certified Public Accountants. All information included in these consolidated fraancial statements is the representation of the management of Laz Karp Associates, Inc. A review consists principally of inquiries of the owners and management personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the consolidated financial statements taken as a whole. Accordingly, we do not express such an opinion Based on our reviews, we are not aware of any material modifications that should be made to the accompanying consolidated financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. our reviews were made for the purpose of expressing limited assurance that there are no material modifications that should be made to the accompanying consolidated financial statements in order for them to be in conformity with generally accepted accounting principles. The accompanying consolidated supplementary information presented in Schedules 1 and 2 is presented only for supplementary analysis purposes. Such information has been subjected to the inquiry and analytical procedures applied in the review of the basic consolidated financial statements, and we are not aware of any material modifications that should be made 1 F//jj „Q.t�C9-t�vVl,t#Nl i L_L- G Certified Public Accountants April 23, 2007 (Except the last sentence in the third paragraph of Note 4, as to which is dated May 24, 2007) 64 LAZ KARP ASSOCIATES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, 2006 and 2005 ASSETS Security deposits and bonds 2006 2005 CURRENT ASSETS: 157,512 163,079 Cash $ 2,054,719 $ 971,155 Accounts receivable, net of allowance for doubtful accounts of $25,000 80,904 69,768 at December 31, 2006 and 2005 2,829,051 1,841,249 Prepaid expenses and other current assets 665,778 532,771 Current portion of note receivable - related party 2,411 - Note receivable 75,000 - Due from management locations 299,714 529,823 TOTAL CURRENT ASSET'S 5,926,673 3,874,998 FIXED ASSETS, NET 1,436,559 883,047 OTHER ASSETS: Security deposits and bonds 34,540 79,567 Note receivable- related party 157,512 163,079 Receivables from stockholders, officers, and affiliated organizations 419,944 306,434 Other assets 80,904 69,768 TOTAL OTHER ASSETS 692,900 618,848 TOTAL ASSETS S 8,056,132 $ 5,376,893 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 2,236,290 $ 1,201,161 Accrued expenses 1,232,692 905,863 Deferred income. 735,776 382,259 Current portion of long-term debt 180,739 200,533 Due to management locations 66,126 332,951 Accumulated losses in excess of investment In unconsolidated subsidiary 117,539 TOTAL CURRENT LIABILITIES - 4,569,162 3,022,767 LONG -TERM LIABILTTIPS: - Debt, net of current potion 642,445 323,200 Other liabilities 123,625 151,289 TOTAL LONG- TERM LIABILITIES 766,070 474,489 TOTAL LIABILITIES 5,335,232 3,497,256 MINORITY INTEREST 133,272 172,187 STOCKHOLDERS' EQUITY: Common stock, class A. voting, no par value, authorized 10,000 shares, 7,126 shares issued and outstanding 2,143 2,143 Common stock, class B, non - voting, no par value, authorized 10,000 shares, 2,850 shares issued and outstanding 857 857 Retained earnings 2,584,628 1,704,450 TOTAL STOCKHOLDERS' EQUITY 2,587,628 1,707,450 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 8,056,132 $ 5,376,893 See notes to the consolidated financial statements and accountanu'review report 65 LAZ KARP ASSOCIATES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS For the Years Ended December 31, 2006 and 2005 2005 REVENUES: Parking and management contracts $ 36,651,512 $ 25,822,525 Reimbursement of management contract expenses 21,254,351 14,402,930 TOTAL REVENUES 57,905,863 40,225,455 DIRECT COSTS: Cost of parking and management contracts 26,625,661 17,782,533 Reimbursed management contract expenses 21,254,351 14,402,930 TOTAL DIRECT COSTS 47,880,012 32,185,463 GROSS PROFIT 10,025,851 8,039,992 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 7,617,173 6,365,892 INCOME FROM OPERATIONS 2,408,678 1,674,100 OTHER INCOME (EXPENSE): Interest income 34,439 56,698 Interest expense (45,884) (63,117) Loss on unconsolidated subsidiary (216,914) - Miscellaneous 64,566 (20,476) TOTAL OTHER INCOME (EXPENSE) (163,793) (26,895) INCOME BEFORE MINORITY INTEREST 2,244,885 1,647,205 MINORITY INTEREST IN SUBSIDIARY EARNINGS 144,707 183,622 NET INCOME 2,100,178 1,463,583 RETAINED EARNINGS, beginning of year 1,704,450 1,080,867 LESS: DISTRIBUTIONS TO SHAREHOLDERS (1,220,000) (840,000) RETAINED EARNINGS, end of year $ 2,584,628 $ 1,704,450 See notes to the consolidated financial statements and accountants' review report M LAZ KARP ASSOCIATES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2006 and 2005 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of fixed assets �S)Q� (220,148) CASH FLOWS FROM OPERATING ACTIVITIES: 4,972 - Net income $ 2,100,178 $ 1,463,583 Adjustments to reconcile net income to net cash provided by operations: 3,156 3,036 Depreciation and amortization 310,331 210,975 Loss on disposal of fixed assets 4,586 17,953 Loss on unconsolidated subsidiary 216,914 - Bad debts 1,985 3,274 Minority Interest 144,707 183,622 Changes in assets and liabilities: 1,083,564 380,420 Accounts receivable (989,787) (380,783) Prepaid expenses and other current assets (130,242) 273,937 Due from management locations (36,716) (46,403) Accounts payable 1,035,129 279,014 Accrued expenses and other liabilities 299,165 (162,433) Deferred income 353,517 59,094 NET CASH PROVIDED BY OPERATING ACTIVITIES 3,309,767 1,901,833 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of fixed assets (713,675) (220,148) Proceeds from the sale of fixed assets 4,972 - Advance of note receivable (75,000) - Payments received from notes receivable - related party 3,156 3,036 (Increase) decrease in deposits and bonds 45,027 (7,567) (Increase) decrease in other assets (13,040) 110,406 Investment in unconsolidated subsidiary (99,375) - Investments in joint ventures 1,904 (681) NET CASH USED BY INVESTING ACTIVITIES (846,031) (114,954) CASH FLOWS FROM FINANCING ACTIVITIES Net advances to stockholders, officers and affiliated organizations (113,510) - Net repayments from stockholders, officers and affiliated organizations - 45,268 Financing costs (15,350) - Advances from the issuance of notes payable and other long -term debt 367,066 - Repayments of notes payable and other long -term debt (214,756) (316,601) Repayments of notes payable- related parties - (168,000) Distributions to shareholders (1,220,000) (840,000) Distribution to minority shareholder (183,622) (127,126) NET CASH USED EY FINANCING ACTIVITIES (1,380,172) (1,406,459) NET INCREASE IN CASH 1,083,564 380,420 CASH, beginning of year 971,155 590,735 CASH, end of year $ 2,054,719 $ 971,155 SUPPLEMENTAL CASH FLOW DISCLOSURES Operating activities reflect: Interest paid $ 45,884 $ 63,117 Non -cash investing and financing activities: Purchase of fixed assets with notes payable 147,141 236,236 Debt retired through trade -in - 32,292 See notes to the consolidated financial statements and accountants'review report 67 LAZ KARP ASSOCIATES, INC. AND SUBSIDIARIES SCHEDULE 1- CONSOLIDATED SCHEDULES OF PARKING AND MANAGEMENT CONTRACT REVENUES AND DIRECT COSTS For the Years Ended December 31, 2006 and 2005 See accountants' review report U-1 2006 2005 PARKING AND MANAGEMENT CONTRACT REVENUES: Transient parking $ 9,689,594 $ 2,828,305 Monthly parking 7,405,777 6,151,489 Management and data processing fee income 6,624,605 4,785,300 Coupon, validations and special revenue 12,506,762 11,299,101 Maintenance revenue 435,982 766,577 Refunds and cash shortages (11,208) (8,247) TOTAL PARKING AND MANAGEMENT CONTRACT REVENUES $ 36,651,512 $ 25,822,525 DIRECT COST OF PARKINO AND MANAGEMENT CONTRACTS: Location rentals and related taxes $ 13,439,329 $ 5,770,563 Gross wages & bonuses 9,009,476 8,250,262 Payroll taxes 869,662 798,446 Employee benefits 546,799 597,381 Telephone & utilities 457,424 264,339 Vehicle expenses 363,104 374,129 Insurance 331,049 406,658 Repairs & maintenance 308,123 286,584 Claims 258,678 251,619 Supplies 245,482 208,525 Depreciation and amortization 213,019 111,836 Uniforms 190,605 134,239 Printing 125,985 51,484 Snow removal 96,219 158,465 Taxes and licenses 85,616 64,817 Signs 73,884 44,304 Miscellaneous 11,207 8,882 . TOTAL DIRECT COST OF PARKING AND MANAGEMENT CONTRACTS $ 26,625,661 $ 17,782,533 See accountants' review report U-1 FEDEi?MAN, LALLY & REMIS LLG CERTIFIED PUBLIC ACCOUNTANTS 231 FARMINGTON AVENUE FARMINGTON, CONNECTICUT 06032 (860) 678 -7100 • FAX (860) 678 -7101 To the Stockholders Laz Karp Partners, Inc. and Subsidiaries Hartford, Connecticut We have reviewed the accompanying consolidated balance sheet of Laz Karp Partners, Inc. (an "S" Corporation) (formerly known as Laz Karp Associates, Inc.) and Subsidiaries as of October 31, 2007 and the related consolidated statements of income and retained earnings and cash flows for the ten months then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these consolidated financial statements is the representation of the management of Laz Karp Partners, Inc. A review consists principally of inquiries of the owners and management personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the . consolidated financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying consolidated financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. Our review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the accompanying consolidated financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. The accompanying consolidated supplementary information presented in Schedules I and 2 is presented only for supplementary analysis purposes. Such information has been subjected to the inquiry and analytical procedures applied in the review of the basic consolidated financial statements, and we are not aware of any material modifications that should be made thereto. n L I 3 f Certified Public Accountants December 17, 2007 69 LAZ KARP PARTNERS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET October 31, 2007 ASSETS CURRENT ASSETS: 2,143 Cnsh and cast, equivalents 5 1,864,571 Accounts receivable, net ornnowancc for doubtful accounts of 825,000 2,730,134 Prepaid expenses 757,564 Note receivable 75,000 Deposits can'ently refundable and other current assets 441,740 Due from management locations 1,020,401 TOTAL. CURRENT ASSETS 6,889,410 FIXED ASSETS, NET 1,565 442 OTHER ASSETS: Security deposits and bonds 101,180 Receivables from stockholders, officers, and affiliated organizations 39,683 Investment in unconsolidated subsidiary 25,296 Management and lease originating costs, net 231,260 Other assets 108,158 TOTAL OTHER ASSETS 505,577 TOTALASSETS $ 8,960,429 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable 8 2.421.002 Accrued expenses 1,713,646 Deferred intone 803,651 Current portion of long -term debt 300,724 Due to management locations 44.701 TOTAL CURRENT LIABILITIES 5,283,724 LONG -TERM LIABILITIES: Debt, net ofcurrent portion 658,004 Self-insured claims reserve 188,000 Other liabilities 33,835 TOTAL LONG -TERM LIABILITIES - 879.839 TOTAL LIABILITIES 6,163,563 MINORITY INTERESTS: Minority Interest- Laz Investments, LLC 663,920 Minority Interest - Laz Parking Atlanta, LLC 349,543 1,013,463 STOCKHOLDERS' EQUITY; Common stock, class A, voting, no par value, authorized 10,000 shares, 7,126 shares issued slid outstanding 2,143 Common stock, class D, non - voting, no par value, authorized 10,000 shares, 2,850 shores issued and outstanding 857 Retained earnings 1,780,403 TO'T'AL STOCKHOLDERS' EQUITY 1,783,403 TOTAL LIABILITIES AND STOCKI'IOLDERS 'EQUITY S 8,960,429 See notes to the consolidated financial statements and accountants' review report 70 LAL. KARP PARTNERS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OFINCOME AND RETAINED EARNINGS For the Ten M ontlts Ended October 31, 2007 REVENUES: _ Parking and management contacts S 36,032,814 Reimbursement of management contract expenses 21.184.978 TOTAL REVENUES 57.217,792 DIRECT COSTS: Cost ol'parking and management contracts 25,632,064 Reimbursed manugement conbnot expenses 21,184,979 TOTAL DIRECT COSTS 46,517,042 GROSS PROFIT 10,400,750 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 8,200,062 INCOME FROM OPERATIONS - 2,200,688 OTHER INCOME (EXPENSE): Interest income 83,251 Interest expense (64,766) Income of unconsolidated subsidiary 9,985 Miscellaneous (24,405) TOTAL OTHER INCOME (EXPENSE) 4,065 INCOME BEFORE MINORITY INTEREST 2,204,753 MINORITY INTEREST IN SUBSIDIARY EARNINGS - Luz Parking Atlanta, LLC 360,978 NET JNCOME 1,843,775 RETAINED EARNINGS, January 1, 2007 2,584,628 LESS: DISTRIBUTIONS TO SHAREHOLDERS (2,648,000) RETAINED EARNINGS, October 31, 2007 S 1,780,403 See notes to Lite consolidated financial statements and accountants' review report 71 LAZ KARP PARTNERS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS For the Ten Months Ended October 31, 2007 CASH FLOWS FROM OPERATING ACTIVITIES: Net income S 1,843,775 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization 343,391 Loss on disposal affixed assets 875 Income of unconsolidated subsidiary- Pnrking Partners 1 (9,985) Loss on disposal of investments 29,696 Bad debts 6,945 Minority interest - Laz Parking Atlanta, LLC 360,978 Changes in assets and liabilities: Accounts receivable 91.972 Prepaid expenses (226.792) Deposits currently refundable and older Current assets (306,734) Due from management locations (720,687) Due to management locations (21,425) Accounts payable 194,712 Accrued expenses and other liabilities 486,164 Self- insm'ed claims reserve 93,000 Deferred income 67,875 NET CASH PROVIDED BY OPERATING ACTIVITIES 2,223,760 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of fixed assets (218,830) Insurance proceeds on theft offixed assets 3,000 Increase in beneficial interests in lending mists (500,000) Decrease in beneficial interests in lending vests 500,000 Payments received from note receivable - related party 159,923 Increase in security deposits and bonds (66,640) Increase in other assets (2,916) Increase in management and lease originating costs (230,000) Investments in unconsolidated subsidiary - Parking Partners 1 (132,850) Investments in joint ventures (533) N13T CASH USED BY INVESTING ACTIVITIES (488,846) CASH FLOWS FROM FINANCING ACTIVITIES: Repayments from stockholders, officers and affiliated organizations 1,005,102 Advances to stockholders, officers and affiliated organizations (624,841) Repayments ofnotes payable and otter long -tent debt (176,536) Distributions to shareholders (2,648,000) Distribution to minority shareholder - Laz Parking Atlanta, LLC (144.707) Contribution from minority shareholder - Laz Investments, LLC 663,920 NET CASH USED BY FINANCING ACTIVITIES (1,925,062) NET DECREASE IN CASH AND CASH EQUIVALENTS (190,148) CASK AND CASH EQUIVALENTS, January 1, 2007 2,054,719 CASH AND CASH EQUIVALENTS, October 31, 2007 S 1,864,571 SUPPLEMENTAL CASH FLOW DISCLOSURES Operating activities reflect: Interest paid S 64,766 Non -cash investing and finnneing activities: Purchase of fixed assets with notes payable 230.754 Debt inctmad as agent of managed property 81,325 See notes to the consolidated financial statements and accountants' review report 72 LAZ KARP PARTNERS, INC. AND SUBSIDIARIES SCHEDULE I - CONSOLIDATED SCHEDULE Or PARKING AND MANAGEMENT CONTRACT REVENUES AND DIRECT COSTS For the Ten Mouths Ended October 31, 2007 PARKING AND MANAGEMENT CONTRACT REVENUES: - Trnnsientparking Monthly parking Mmmgernent and administrative fee income Coupon, validations mud special revenue Maintenance revenue Refunds and cnsh shortages TOTAL PARKING AND MANAGEMENT CONTRACTREVENUES DIRECT COST OP PARKING AND MANAGEMENT CONTRACTS: Gross wages & bonuses Location rentals and related taxes Payroll taxes Repairs & maintenance Telephone & utilities Supplies Insurance Employee benefits Vehicle expenses Claims Snow removal Uniforms Taxes and licenses Depreciation and amortization Signs Printing Miscellaneous TOTAL DIRECT COST OF PARKING AND MANAGEMENT CONTRACTS See accountants , review repot S 9,532,575 7,978,234 7,033,501 11,064,844 430,348 (6,688) $ 36 032,814 8,131,607 13,859,584 782,939 258,861 433,361 180,197 218,090 600,286 284,098 192,440 63,341 908,624 139,404 227,864 72,302 65,498 13,568 S 25,632,064 73 Atneripark Florida Inc.,D /B /A LAG Parking of Florida LLC'- Registered in 1999 ARTICLES ORINCORPORATION OF Ameripark Florida, Inc. The undersigned Business Corporation Actaher by adopts purpose he following fnArticles corporation f incorporation. e Florida FIRST: The name of the corporation is Ameripark Florida, Inc. SECOND: The street address of the initial principal office, and, if different, the mailing address of the corporation: is: 1 o LAZ Barking Hartford, CT 06103 THIRD: The number of shares the corporation is authorized to issue is: 1, 000 FOURTH: The street address of the initial registered office of the corporation is c/o CT Corporation System, 1200 South Pine Island Road, City of Plantation, Florida, 33324, and the name of its initial registered agent at such address is CT Corporation System. FIFTH: The names and addresses of the persons who are to serve as initial directors are: Alan Lazowski c/o LAZ Parking, LTD. 15 Lewis Street Hartford, CT 06103 >4 �h m ca SIXTH: The name and address of each incorporator is: a_ Alan Lazowski do LAZ Parking, LTD. 15 Lewis Street !"o -a j'p"j Hartford, CT 06103 " r•Cn .G, SEVENTH: Any other provision required or permitted by law is: N/A 4 to Date: April 7, 1999 n e flnc�OratOr an Laz w CT Corporation System is familiar with and accepts the obligations provided for in Section 607.0505 of the Florida Statutes. CT Corporation Syste Date: April 7, 1999 Edw wisdalia, Assistant Vice President n�emmmU„smA.vmmwM..uceiw 74 2009 LIMITED LIABILITY COMPANY ANNUAL REPORT den IL 2009 DOCUMENT# L07000100284 Secretary of State Entity Name: AMERIPARK FLORIDA, LLC Current Principal Place of Business: New Principal Place of Business: 15 LEWIS STREET C/O LAZ PARKING LTD LLC ATTN.: A. BRODEUR HARTFORD, CT 06103 Current Mailing Address: 15 LEWIS STREET C/O LAZ PARKING LTD LLC ATTIC: A. BRODEUR HARTFORD, CT 06103 FEI Number: 26. 1172679 FEI Number Applied For ( ) Name and Address of Current Registered Agent: C T CORPORATION SYSTEM 1200 SOUTH PINE ISLAND ROAD PLANTATION, FL 33324 US 15 LEWIS STREET C/O LAZ PARKING LTD LLC ATTN.: H. MORTIME HARTFORD, CT 06103 New Mailing Address: 15 LEWIS STREET C/O LAZ PARKING LTD LLC ATTN.: H. MORTIME HARTFORD, CT 06103 FEI Number Not Applicable ( ) Certificate of status Desired( ) Name and Address of New Registered Agent: The above named entity submits this statement for the purpose of changing its registered office or registered agent, or both, in the State of Florida. SIGNATURE: Electronic Signature of Registered Agent Date MANAGING MEMBERSIMANAGERS: ADDITIONS /CHANGES: Title: ( ) Change ( ) Addition Title: MGRM ( ) Delete Name: LAZ KARP PARTNERS, I, NC. Name: Address: 15 LEWIS STREET Address: City -St-Zip: HARTFORD, CT 06103 City -St-Zip: Title: PRIES ( )Change (X) Addition Title: ODelete Name: LAZOWSKI, ALAN B Name: Address: 1010 PROSPECT STREET Address: City -St -Zip: HARTFORD, CT 08103 City -st -Zip: Title: SEC ( ) Change (X) Addition Title: ( ) Delete Name: KARP, JEFFREY Name: Address: 36 CLAYPIT HILL ROAD Address: CitY-St -Zip: WAYLAND, MA 01778 City-St-Zip: I hereby certify that the information supplied with this fling does not qualify for the exemption stated in Chapter 119, Florida Statutes. I further certify that the information Indicated on this report Is true and accurate and that my electronic signature shall have the or the receiver or t trustee lempoweredlto execute this report oath; eport as required by Chap er member 608,rFlorida Statutes. limited liability comp SIGNATURE: ALAN B. LAZOWSKI PRES 01/22/2009 Electronic Signature of Signing Managing Member, Manager, or Authorized Representative /Date 75