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AWARD A PURCHASE AGREEMENT FOR PARKING PAYMENT MACHINES TO IPS GROUP, INC.
recommended action
RECOMMENDATION
It is recommended that the Parking Authority of the City of Stockton adopt a resolution to:
1) Award a Purchase Agreement in the amount not-to-exceed $750,000, between the City and IPS Group, Inc. for the purchase, installation, and on-going software support of parking payment machines for the City’s Parking Operation.
2) Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
3) Authorize the Executive Director of the Parking Authority of the City of Stockton to execute the Purchase Agreement.
4) Authorize the Executive Director to approve the appropriation of funds, in the amount of $100,000 from the Parking Authority of the City of Stockton fund balance (Fund 419) to be used for the purchase of on-street payment machines.
5) Authorize the Executive Director of the Parking Authority of the City of Stockton to take appropriate actions to carry out the purpose and intent of this resolution.
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Summary
The Parking Operation needs new equipment to allow parkers to pay for on-street parking. A rash of meter thefts spanning the last two years has left the downtown parking area with a fraction of what was once there. Revenue from on-street meters has continued to impact overall parking revenue at a loss of approximately $35,000 to $50,000 monthly. Pay-by-plate machines have been identified as the best replacement solution due to their ease of use and vandal/theft resistance. Pay by plate machines allow a paid vehicle to be identified by the license plate number, without need for the customer to return any identifying marking or receipt to the vehicle. Parkers will simply enter their license plate into the payment machine, select the desired time, and make payment using a credit card or cash.
It is recommended that the Parking Authority of the City of Stockton (Authority) approve the purchase agreement in an amount not to exceed $750,000.
DISCUSSION
Background
The deficiencies in parking payment options were identified in a comprehensive consultant’s review of the Parking operation in 2015, causing the Parking Authority to appropriate project funding in the 2014/15 amended and the 2015/16 approved budgets. The report suggested that the stationary dial-operated, coin meters be replaced with new technology meters that would accept credit cards. The Parking Authority implemented the use of a parking App, Parkmobile in late 2015, to immediately create more payment options, as the App allowed credit card payment with the old meters.
In December 2017, the Parking Authority was given information regarding potential on-street payment options for resolving the dwindling meter issue. Those options included 1) replacing single-space meters with pay-by-plate payment machines, 2) using new “smart” (technology-based) meters that accept credit cards, and 3) designating parking spaces to be paid by exclusively using a parking App, hence removing all on-street payment equipment.
During budget hearings in May 2018, the Parking Authority was advised that staff would bring back a recommendation for pay-by plate machines at a future meeting following a trial of the machines. The options were narrowed to the pay-by-plate machine option because theft of parking meters had continued, even after the reinforcement of meter poles. The option of exclusively relying upon payment by a parking App was abandoned, as it would not work for individuals who don’t have access to a smart phone or credit card.
Staff reviewed other City Parking operations in search of best practices and vendors for parking payment machines. With similarities in ongoing thefts of single-spaced meters, the City of Berkeley was found as an example of how best to remedy the issue. Berkeley installed IPS parking payment machines following a competitive request for proposal (RFP) process.
Present Situation
Currently, there are fourteen parking payment machines in the Downtown area. Three machines are in surface lots, two of which have been in place since May of 2016; and the remaining eleven machines have been recently placed on Hunter and Main Streets in early September of this year. The machines are working well, and users have found the machines easy to use, and like the credit card payment option, over 57% of customers are using credit cards. The pay-by-plate machines accept both coins and credit cards and operate on solar power with back up batteries. The technology in the machines allows SP+ to review operability, battery and coin levels, and frequency of use at all times.
The current Resolution before the Parking Authority is a request to approve a Cooperative Purchase Agreement with IPS Group, Inc. (IPS) in the amount not-to-exceed $750,000. (A Cooperative Purchase Agreement allows for an agency to use the recent procurement process of another agency to select and award an agreement for services and/or goods.) This amount will allow the purchase of approximately one hundred twenty additional Pay-by-Plate machines to be placed on most blocks within the downtown area. IPS has been selected to provide the machines, warranty, and software support due to the recent procurement process completed by the City of Berkeley.
Stockton Municipal Code, section 3.68.070 provides an exception to the competitive bidding process in cases where the City Council has approved findings, which support and justify this action.
Findings to justify an exception to the competitive bidding process are as follows:
1. The City of Berkeley formally conducted a competitive bid process for the purchase of parking payment machines and meters.
2. The bid specifications used by the City of Berkeley have been assessed as compatible with the Authority’s needs and standards.
3. The City of Berkeley’s agreement allows for a cooperative purchase agreement with the Authority for parking payment equipment and supporting services.
4. IPS, has agreed to provide parking payment goods and services to the Authority through a cooperative purchase agreement under the same terms and conditions provided to the City of Berkeley.
5. Contracting for parking payment goods and services through a cooperative purchase agreement best serves the Authority by saving the time and expense of duplicating a competitive bid process.
6. The Authority benefits from a lower cost as the pricing structure reflects the greater quantity of equipment purchased by City of Berkeley.
FINANCIAL SUMMARY
An additional appropriation from fund balance is needed in the amount of $100,000 to meet the total project amount of $750,000. $650,000 was appropriated within the FY2018-19 budget for the purchase of on-street payment machines (419-4030-670.20-62). Within this not-to-exceed amount is also a contingency for replacement parts. The ongoing expense for the warranty and monthly data charges is estimated at approximately $108,000 annually and will be paid out of the parking operating budget as approved by Parking Authority through the annual budget process. Expense for newly incurred data charges have been included in the approved FY 2018/19 operating budget, therefore adjustment to the current operating budget is not required.