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Emerald Isle raises parking fees and approves short-term revenue split change with UPP Global
Summary
After debate over transparency of vendor deductions, the Emerald Isle board approved a $1 hourly parking fee increase and a contract amendment shifting the revenue split with UPP Global to give the town a larger share, which staff estimates will produce about $120,000 more annually.
The Emerald Isle Board of Commissioners voted to raise hourly beach parking from $4 to $5 and to approve a contract amendment that will change the vendor revenue split with UPP Global from roughly 50/50 to 65/35 in the town’s favor.
Town staffer Frank told commissioners the linked actions — a fee increase and a minor contract amendment — together would generate approximately $120,000 in additional annual revenue for the town, taking estimated net revenue from about $332,000 to roughly $452,000 under staff projections. Frank said the contract includes a guaranteed minimum to the town (about $225,000 next year under the current formula) and that the proposed amendment would let the town retain most of the extra revenue generated by the higher fees.
Several commissioners pushed back, asking for more detail about which operational costs the vendor may deduct before splitting the balance. Commissioner Brownlow said he had “dived into it” and was not fully comfortable approving the change without additional information on town versus vendor expenses, listing items such as septic pumping and solid-waste pickup and asking who pays those costs. Brownlow said the current contract language allows UPP to deduct operating costs without a cap and that he wanted to ensure the town wasn’t “leaving a lot of money on the table.”
Frank responded that the formula is part of the existing contract and that the proposed amendment was negotiated to be simple, to honor the final year of the contract, and to retain nearly all of the additional revenue for the town. He said the town could consider a more complex renegotiation later that would allow the town to deduct its operating costs before profit sharing.
Commissioners discussed implementation risk if UPP refused the change. Frank noted UPP could choose not to accept the amendment and could terminate the contract with 90 days’ notice; in that scenario, the town would continue operating a parking program, potentially with town staff collecting payments, but could see lower short-term revenue. Several commissioners said they favor researching alternative technologies and vendors before making a long-term change.
Despite questions about cost allocations, a motion to adopt the fee schedule amendment passed. The board also approved the companion resolution amending the parking contract with UPP Global so the town’s net share increases to 65% of the post-deduction balance. The board directed staff to report monthly on revenue collection during the coming season and to continue studying longer-term contract and technology options.
The board also accepted a recusal disclosure earlier in the meeting: Commissioner Sanders disclosed employment with UPP Global and was recused from voting on item 14 concerning the parking program.
