Title
Authorization to Amend Parking Meter Contract (Ordinance S-44122)
Description
Request to authorize the City Manager, or his designee, to amend Contract 135354 with IPS Group Inc. (IPS), to extend the term by three years, and to increase the aggregate contract amount during this extension. Further request authorization for the City Treasurer to accept and the City Controller to disburse all funds related to this item. The total amount not to be exceeded over the life of the three-year extension is $2,125,000.
Report
Summary
The Street Transportation Department operates approximately 1,700 "smart" single-space wireless parking meters that are provided by IPS. These meters operate on a proprietary back-office financial software. The software 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 allows for settings to be changed remotely. The City’s "smart" meters have been operating for approximately three years and have an expected life of 15 years.
The Street Transportation Department is requesting the continued business relationship 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 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, 2018. The Street Transportation Department requested an exception to the procurement process via Determination Memo to extend the contract with IPS for three additional years. It is in the best financial interest of the City to extend the IPS contract. No other vendor can supply or provide service for IPS meters, as they operate with IPS proprietary software.
Contract Term
The term of this extension will be from Jan. 28, 2018 until Jan. 27, 2021.
Financial Impact
This is an expense and a revenue contract. The total amount not to be exceeded over the life of the three-year extension is $2,125,000. Funds are available in the Street Transportation Department's Operating and CIP budgets. The City is expected to generate $3.9 million in parking meter revenue this fiscal year.
Concurrence/Previous Council Action
The original contract with IPS Group, Inc., was approved by City Council on Nov. 28, 2012. It was also amended on Aug. 30, 2017 to request additional funding for 200 parking meters which were installed in downtown Phoenix.
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.