Title
Parking Meter Mechanisms and Accessories Contract Recommendation (Ordinance S-48318)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with IPS Group, Inc. to provide single-space parking meters, payment processing, and associated back-end support software systems and services. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. The total contract value will not exceed $4.3 million.
Report
Summary
The City's Parking Meter Program provides an important source of revenue to the City but also provides a benefit to downtown businesses, restaurants, and events by managing access and use of on-street parking in the downtown and midtown areas of Phoenix. The Street Transportation Department (Streets) manages the program and continuously works to improve the parking meter system to meet the needs of the public.
Streets currently operates a mix of approximately 1,700 smart parking meters and 500 older coin-only parking meters for a total of 2,200 parking meters. The coin-only parking meters have operated in areas of low parking demand. The 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 their status and use, provide remote diagnostics, and allow for settings to be changed remotely. The 1,700 smart meters were purchased and installed in 2013 and are nearing the end of their anticipated ten-year service life.
As part of the contract, IPS Group, Inc. will replace all 2,200 parking meters with new smart parking meters and will provide wireless communications and monitoring services for the smart meters under this new contract. The contract will also allow Streets to upgrade parking meter mechanisms to current technologies. The new smart parking meters will include a five-year warranty period.
This item has been reviewed and approved by the Information Technology Services Department.
Procurement Information
In accordance with Administrative Regulation 3.10, a Request for Proposals (RFP 63-2201) was conducted. Proposals were received from three firms, and all three proposers were deemed responsive. The selection committee was made up of four staff members from Streets and one member from outside of the City of Phoenix. The committee thoroughly reviewed and scored all proposals based on the evaluation criteria, which included Technical Specifications (225 points), Method of Approach (250 points), Data Management System (200 points), Telecommunication and Reporting (75 points), Value Added Services (25 points), Reference Checks (25 points), and Price (200 points) for a total of 1,000 points maximum. The panel reached consensus in recommending award of the contract to IPS Group, Inc. The proposers and their scores are listed below:
IPS Group, Inc.: 767.50
Duncan Parking Technologies, Inc.: 612.50
MacKay Meters, Inc.: 601.00
Contract Term
The contract term is for a five-year period, commencing March 1, 2022, and ending Feb. 28, 2027. Provisions of the contract include an option to extend the term for an additional five years, which may be exercised by the City Manager or designee.
Financial Impact
The contract will have an estimated initial capital investment of $1.8 million for the purchase of new parking meters. The total contract amount will not exceed $4.3 million over the initial five-year term of the contract.
Funding is available in the Streets' Capital Improvement Program and Operating budgets.
The City anticipates parking meter revenues will exceed $12.5 million over the initial five-year term of the contract.
Concurrence/Previous Council Action
The Transportation, Infrastructure and Innovation Subcommittee recommended City Council approval to issue a Request for Proposals on April 7, 2021, by a vote of 4-0.
The City Council approved the issuance of a Request for Proposals on May 19, 2021.
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.