TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Erick Lee, Public Works Director
Onyx Jones, Interim Finance Director
Libby Bretthauer, Financial Services Manager
Nicky Petroff, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Extending the Agreement with IPS Group, Inc. for Parking Meter Repair Services and Transaction Merchant Processing Services (Budgeted) (Public Works Director Lee).
ADOPT RESOLUTION NO. 25-0025
Body
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RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 25-0025:
1. Authorizing the City Manager to execute a letter extending the agreement with IPS Group, Inc. for parking meter repair services and transaction merchant processing services for one additional year;
2. Authorizing the City Manager and/or his or her designee to extend the agreement for additional one-year terms.
FISCAL IMPLICATIONS:
Sufficient funds for these services are currently budgeted within the Parking Fund Public Works Department budget.
BACKGROUND:
The City maintains and operates 1,275 single-space meters and 12 pay stations at on-street and off-street parking facilities in designated spaces in City, State, and County-owned lots.
In 2019, the City entered into a contract with IPS Group, Inc. (IPS) for parking meter repair services and transaction merchant processing services. Under this agreement, the vendor provided parking meter equipment, software integration, and transaction processing services to allow the City to collect parking revenue. The vendor also provides equipment maintenance, applicable warranties, and parking meter transaction merchant processing services, which are necessary for the ongoing operation of this program.
DISCUSSION:
The initial agreement was for a five-year term starting in 2019 and ending in November 2024. According to the agreement, the City has the right to extend the agreement under the original terms and conditions in one-year increments, up to an additional five years.
Staff has negotiated pricing with IPS for an additional year of services, which equates to a 5.6% increase over the rates that have been in effect since the inception of the contract. This one-year extension allows the City to sustain essential parking operations while engaging in a request for proposal process. Therefore, staff recommends extending the existing agreement.
Over this next year, staff anticipates starting a transition of the City’s parking payment infrastructure from single space meters to payment kiosks and mobile pay options. This work will not begin until directed by the City Council. Staff plans to present recommendations aligned with the Parking Meter and Kiosk Exploration work plan item to the City Council on April 15, 2025.
Additionally, staff recommends that the City Manager be given the authority to administratively extend the term of the agreement with IPS for two additional one-year periods such actions are deemed to be in the City’s best interest.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this issue
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The letter agreement has been reviewed by the City Attorney and is approved as to form.
ATTACHMENTS:
1. Resolution No. 25-0025
2. Agreement - IPS Group, Inc.
3. Draft Agreement Extension Letter