Title
Authorization to Extend Parking Meter Contract (Ordinance S-46975)
Description
Request to authorize the City Manager, or his designee, to amend Contract 135354 with IPS Group Inc. (IPS), to extend the term of the agreement by one year. Further request authorization for the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. No additional funding is necessary with the extension so the aggregate contract amount remains $3,637,500.
Report
Summary
Since the inception of the contract in January 2013, the Street Transportation Department (Streets) has purchased approximately 1,700 wireless single-space parking meters capable of both coin and credit card transactions through IPS. These smart meters operate on a proprietary financial software that utilizes wireless technology for two-way communications with the parking meters to accept and monitor payments, monitor the status and use, provide remote diagnostics, and allow for settings to be changed remotely. Currently, Streets operates 1,690 smart meters in the downtown and midtown areas of Phoenix, which have been operating for approximately seven years with a life expectancy of 10 years.
Streets is requesting to continue for an additional year the current contract with IPS for the purchase and management of credit card enabled single-space parking meters. This will include the purchase of additional parking meter units and continued credit card processing.
This item has been previously reviewed and approved by the Information Technology Services Department.
Procurement Information
The original contract was procured in accordance with Administrative Regulation 3.10, and will expire on Jan. 27, 2021. Streets is requesting to extend the contract with IPS for one additional year to provide staff the opportunity to revise the scope of work for a new procurement in conjunction with the Parking Management Study currently being conducted by Streets and the Community and Economic Development Department. The revised scope of work will allow vendors to bid based on updated criteria, with the goal to provide a City parking meter system that fully meets the current and future needs of the City.
Contract Term
The term of this extension will be from Jan. 28, 2021 until Jan. 27, 2022.
Financial Impact
As this is an expense and revenue contract, funding approved by Council on Dec. 13, 2017 (Ordinance S-44122) has not been exhausted and remains available. No additional funding is required for this extension; the aggregate spending authority of the contract remains $3,637,500. The City is expected to generate $2 million in parking meter revenues this fiscal year.
Concurrence/Previous Council Action
- City Council approved the original contract with IPS on Nov. 28, 2012 (Ordinance S-39393).
- On Sept. 6, 2017 (Ordinance S-43895) Council approved additional funding to expand the parking meter program.
- On Dec. 13, 2017 (Ordinance S-44122) Council approved a three-year extension and additional funding for maintenance and supplies and ongoing operational costs.
- The Transportation, Infrastructure and Innovation Subcommittee recommended approval of this requested one-year extension on Sept. 2, 2020 by a vote of 4-0.
Location
Council Districts: 4, 7 and 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Street Transportation Department.