HomeMy WebLinkAboutItem 18 - Agreement with IPS Group, Inc for Smart Parking Meters Community Development Agency
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Item # 18
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 19, 2023
TOPIC: First Amendment to Agreement with IPS Group, Inc. for Smart Parking Meters
AGENDA TITLE
Approve the First Amendment to the IPS Group, Inc. Agreement for Increased Monthly
Smart Parking Meters Service Cost, Warranty Purchase, Repair, Modem Upgrades, and
Contingency Cost in the Amount of $540,000 (Non-General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute an amendment to the agreement with IPS
Group, Inc. for increased monthly smart parking meters service cost, warranty
purchase, repairs, and modem upgrades, to increase the compensation amount by
$540,000, for a total amount not to exceed $840,000 for the existing term of February
15, 2022 to February 14, 2027, subject to non-substantive changes approved by the
City Manager and City Attorney.
DISCUSSION
Parking meters were authorized by the City Council in the late 1980s with the objectives
of improving traffic circulation and parking availability due to the increasing density of
the area. In accordance with Section 36-398 of the Santa Ana Municipal Code, there
are approximately 1,300 meters within the Parking Meter District as shown in Exhibit 2.
Meter Areas Meter Total
Downtown (includes Civic Center, Library, & Old OC Court)540
Mid-Town 373
Willard 349
Total 1,262*
*Note: Some meters were temporarily or permanently removed due to construction, new
developments, or reserved as backup inventory.
In 2014, the City of Santa Ana entered into an agreement with IPS Group, Inc. for the
purchase and installation of approximately 593 credit card-enabled parking smart
meters. IPS Group, Inc. presented quality equipment, approach, and methodology with
the credit-card enabled meters, real-time data, and sensors. These smart meters have
three forms of payment: credit card, coin, and mobile app. Smart meters were installed
in more active areas, such as Civic Center and Downtown. The monthly service cost
and credit card processing fees for smart meters are absorbed by the City. However,
the City has the ability to pass those fees on to the end users, if desired.
Agreement with IPS Group, Inc for Smart Parking Meters
September 19, 2023
Page 2
3
7
1
2
In February 2022, the City Council approved an agreement with IPS Group, Inc. in the
amount of $300,000 for modem upgrades. The wireless carriers, Verizon and T-Mobile,
are planning to sunset the older networks of 2G/3G to the new technologies of 4G/5G.
The smart meters require the modem upgrade in order to continue their functionality of
accepting all payment options: coin, credit card, and tracking of data. IPS Group, Inc.
provides proprietary smart meters and are the only firm that can provide such an
upgrade.
Given the significant surge in parking demand within the metered districts and to
maintain current operations, an amendment to the existing IPS Group, Inc. agreement is
warranted. The proposed amendments include:
•Completion of modem upgrades from 2G to 4G
•Procurement of an extended warranty to extend meter lifespan by five
years
•Allocation of adequate funding to cover escalating monthly operational
costs
•Provision for repairs of meters without warranties
•Potential replacement of coin-only meters with smart meters to offer
multiple payment options
•Contingency provisions for inflation-related costs and repairs outside
warranty coverage.
FISCAL IMPACT
Funds are available in the Parking Meter account (02718131-62300 Contract Services)
and funding for subsequent fiscal years will be included in the proposed budgets for City
Council consideration as seen below:
Fiscal Year Accounting Unit-
Account Fund Description Amount
FY 2023-2024 02718131-62300 Parking Meter $ 200,000
FY 2024-2025 02718131-62300 Parking Meter $ 140,000
FY 2025-2026 02718131-62300 Parking Meter $ 100,000
FY 2026-2027 02718131-62300 Parking Meter $ 100,000
TOTAL $ 540,000
EXHIBIT(S)
1. First Amended Agreement – IPS Group, Inc.
2. Map & Statistics – Parking Meter District
Submitted By: Michael L. Garcia, Executive Director of Community Development
Approved By: Kristine Ridge, City Manager
FIRST AMENDMENT TO AGREEMENT TO PURCHASE PARKING TECHNOLOGY
AND RELATED SERVICES
THIS FIRST AMENDMENT to the above-referenced agreement is entered into ____ , 2023,
by and between IPS Group, Inc., a Pennsylvania corporation ("JPS"), and the City of Santa Ana, a
charter city and municipal corporation organized and existing under the Constitution and laws of
the State of California ("City"). IPS and the City shall be collectively referred to as the "Parties."
RECITALS
A.The Parties entered into Agreement No. A-2022-028 ("Agreement") dated February 15,
2022, whereby IPS agreed to deliver and install parking technology hardware (the
"Equipment") and related software services (the "Services," and collectively "Equipment
and Services") to the City.
8.The Parties now wish to amend the Agreement to increase the aggregate compensation paid
by the City to fPS, by $540,000, to accommodate increased costs for ongoing monthly data
management services, purchase of a 60-month warranty, funds for repairs and/or
replacement parts, and modem upgrades that would assist in continuing the operations of
the parking meters throughout the City.
The Parties therefore agree:
I.Section 5.1, Compensation, is hereby amended to read in its entirety as follows:
The City will compensate JPS for the Equipment and Services, as set forth in Attachment 8.
The total sum to be expended during this Agreement, including any extension periods, shall
not exceed $840,000.
2.Except as modified by this First Amendment, all terms and conditions of the Agreement, shall
remain in full force and effect.
[signature page to follow]
Page 1 of2
EXHIBIT 1
IN WITNESS WHEREOF, the patties hereto have executed this First Amendment to the
Agreement on the date and year first written above.
ATTEST
Jennifer Hall
City Clerk
APPROVED AS TO FORM
SONIA R. CARVALHO
City Attorney
By �ML (}jJ !kt,__� -AJL,
Andrea Garcia-Miller
Assistant City Attorney
RECOMMENDED FOR APPROVAL
Michael L. Garcia
Executive Director
Community Development Agency
CITY OF SANTA ANA
Kristine Ridge
City Manager
JPS GROUP, INC.
Cltttd Rttudttl I 81!, AJJ I.JJ::1!>8�ft
Chief Operating Office, C.EN6R.Flt.. C-()U��/..
Page 2 of2
EXHIBIT 1
Parking Meter Statistics
Meter Locations
Table 1
Areas Meter Total
Downtown (includes Civic Center, Library & Old OC Court) 540
Mid-Town 373
Willard 349
Total 1,262*
*Note: some meters have been temporarily removed or permanently removed due to construction and/or
new developments and some are placed in reserve as back-up inventory.
Meter Statistics
751 Traditional Meters
Only two forms of payment: coin and mobile app
Meters located mostly in the Mid-Town and Willard areas
593 Smart Meters
Three forms of payment: coin, mobile app, and credit card
Meters located mostly in the Downtown area (Civic Center, Library, and old
OC Court)
Meter Revenue
Parking meter revenue has fluctuated over the past three years due to the pandemic and
OC Streetcar construction. Table 2 below provides the parking meter revenue and the
various payment methods for Calendar Year 2022.
Table 2
Meter
Type
Revenue
(Coin)
Revenue
(Credit Card)
Revenue
(Mobile App)
Revenue
(Total)
Traditional Meter $229,325 $0 $73,113 $302,438
Smart Meter $367,506 $555,884 $161,646 $1,085,036
Total $596,831 $555,884 $234,759 $1,387,474
(%) (43%) (40%) (17%) (100%)
EXHIBIT 2
FMP
5th & MAIN
OCC
City of Santa Ana Parking Meter District
MAX PARKING TIME
1 Hour
2 Hours
2-3 Hours
4 Hours
9 Hours 24 Minutes
Impacted By Construction
RATE BREAKDOWN
$2.00/Hour $1.00/Hour
Dollar = 30 min. 60 min.
Quarter = 7.5 min. 15 min.
Dime = 3 min. 6 min.
Nickel = 1.5 min. 3 min. Parking Meter Locations-DETAILED 20230824-RG WILLARD
Duncan, $1.00/Hr
Enforced:
M-F, 8am-8pm
MIDTOWN
Duncan
$1.00/Hr
Enforced:
M-Sat,
8am-8pm
DOWNTOWN
IPS, $2.00/Hr
Enforced: M-Sun, 8am-10pm
LIBRARY
IPS, $2.00/Hr
Enforced:
M-Sun, 8am-6pm
OCC
IPS, $2.00/Hr
Enforced:
M-Sat, 8am-10pm
EXHIBIT 2