HomeMy WebLinkAbout22C - SPEC - PARKING METERSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
FEBRUARY 16, 2016
TITLE:
CONTRACT AWARD TO IPS GROUP INC.,
FOR DOWNTOWN PARKING METER
OPERATIONS & MAINTENANCE
(SPEC. NO. 16 -023)
(STRATEGIC PLAN NO. 3, 4B, 4C)
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑
As Amended
❑
Ordinance on 1't Reading
❑
Ordinance on 2 "' Reading
❑
Implementing Resolution
❑
Set Public Wearing For
CONTINUED TO
FILE NUMBER
Award a contract to IPS Group Inc. for the expansion of the smart meter program and
enhancement of additional features for the balance of the initial five -year agreement expiring
May 19, 2019, in an amount not to exceed $486,000, subject to non - substantive changes
approved by the City Manager and City Attorney.
DISCUSSION
On March 18, 2014, Council approved the release of a Request for Proposals to replace on-
street parking meters in Downtown. After reviewing and evaluating proposals from four qualifying
firms, City staff determined IPS Group, Inc. (IPS) was the top firm and received the highest
overall ranking as a result of their proposal and interview. Therefore, on May 20, 2014, Council
approved a five -year term agreement effective through May 19, 2019 with five, one -year renewal
options with IPS, to provide single space parking meters, in- ground sensors and the Data
Management System reporting software. The purchase of these smart meters was intended to
replace outdated parking technology while fulfilling the evolving needs of the Downtown. These
smart meters provide electronic payment options, such as credit card and pay -by -phone features
to enhance the overall parking experience. When paired with in- ground sensors, which detect the
absence and presence of a vehicle, the meters reset upon vehicle departure and prevent feeding
of the meter beyond the posted time limit to increase vehicle turnover.
Phase I of the Downtown smart meter program began in July 2014 and continued with the
installation of the in- ground sensors in September 2014. By the end of December 2014, city wide
meter revenue had increased by an average of $11,000 per month since the installation of the
smart meters and sensors.
Phase II of the Downtown smart meter program began in October 2015 with the adjustment of
parking meters rates as a result of the adoption of the Downtown Enhancements and Parking
Modernization Plan. As a result of the modernization efforts, by the end of December 2015, the
22C -1
Contract Award for Downtown Parking Meter Operations & Maintenance
February 16, 2016
Page 2
City's revenue generated from credit card transactions increased by an average of $23,000 per
month since the adjustment of meter rates.
In order to meet the needs of the Downtown parking meter users and enhanced customer service
levels, additional funds for the continuation of Phase II are required. The current agreement with
IPS allows for on -going monthly operating and maintenance expenses. Staff recommends
approval of the recommended action to allocate the necessary funds for the on -going monthly
operating and maintenance expenses ($234,000), extended warranty purchases ($126,000),
miscellaneous costs for repairs ($45,000) and a contingency ($81,000) for the expansion of the
smart meter program and further enhancements of pay -by -phone features to facilitate daily
operations.
STRATEGIC PLAN ALIGNMENT
Approval of these items assists the City in meeting Goal #3 — Economic Development, Objective #4
(continue to pursue objectives that shape downtown Santa Ana into a thriving, culturally diverse,
shopping, dining, and entertainment destination), Strategy B (create a comprehensive program to
manage parking that includes innovative strategies to provide parking , create revenue and enhance
accessibility in the downtown), Strategy C (use technology to promote downtown Santa Ana
businesses, entertainment, restaurants as well as to improve patron experience [e.g. smartphone
application, wayfinding application, smart meters, electric vehicle charging stations, etc.).
FISCAL IMPACT
Funds are available for the operating costs for the balance of FY 2015 -2016 (March 2016 -June
2016) and the three remaining years (FY 2016 -17, 2017 -18 and FY 2018 -19) of the contract will
be budgeted into the Parking Meter— Contract Services account (02710131- 62300) as follows:
Fiscal Year
Account
Amount
FY 2015 -16 (March 1, 2016 -June 30, 2016)
02710131 -62300
$ 54,000
FY 2016 -17
02710131 -62300
162,000
FY 2017 -18
02710131 -62300
162,000
FY 2018 -19 (July 1, 2018— February 28, 2019)
02710131 -62300
108,000
Total
$486,000
APPROVED AS TO FUNDS AND ACCOUNT:
Francisco Gutierrez
Executive Director
Finance and Management Services Agency
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