Title
Parking Meter Equipment and Services Request for Proposals
Description
Request to authorize the City Manager, or his designee, to issue a Request for Proposals for a new professional services agreement for parking meter equipment and services.
Report
Summary
The City's Parking Meter Program provides an important source of revenue to the City but also provides a benefit to the 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 1,700 "smart" parking meters and 540 older coin-only parking meters for a total of 2,240 parking meters. The coin-only parking meters operate 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 "smart" meters were purchased and installed through current Agreement 135354 with IPS Group, Inc. (IPS) in 2013 and have a ten-year life. IPS provides wireless communications and monitoring services for the "smart" meters under this agreement. The current agreement with IPS is set to expire on Jan. 27, 2022, so it is necessary for Streets to procure a new parking meter services agreement through the issuance of a Request for Proposals (RFP).
There have been significant changes in parking meter preferences and technology since the current agreement was executed in 2013. Increasingly, parking meter customers prefer to pay for meter fees using their smart phones. To meet customers’ expectations, Streets entered into a separate agreement with ParkMobile in December 2017 to support parking transactions using a third-party mobile phone application. Revenues collected through the ParkMobile app average $40,000 per month. A new RFP will allow Streets to further promote these capabilities and enhance customer experience using our meters. Additionally, wireless communication technology has advanced considerably, and a new agreement will allow the City to meet new technical specifications not currently supported by the existing meters.
Despite an increasing preference to pay by phone, payments by coin still account for approximately 30 percent of parking meter revenue, and meters will be required to continue to accept coins under the new agreement. Additional capabilities anticipated with the new agreement include enhanced enforcement tools, compatibility with sensor equipment, and improved web interfacing for program management.
Streets is coordinating with the Information Technology Services Department to ensure technical compliance with the RFP and subsequent agreement.
Procurement Information
Streets will solicit for a new parking meter equipment and services agreement utilizing the RFP procurement process. Staff has revised the previous scope of work for the RFP with a goal to provide a parking meter system that meets the current and future needs of the City. Responsive and responsible proposals will be evaluated according to the following criteria:
- Technical Specifications;
- Pricing;
- Method of Approach;
- Telecommunications and Reporting; and
- Value-Added Services.
The highest-ranked proposal will be recommended for award of the agreement.
Contract Term
The term of the new agreement will be five years beginning on Jan. 28, 2022, and will include five one-year extension options.
Financial Impact
Depending on the need to replace the existing parking meter inventory, the estimated cost of the agreement will be between $5 and $10 million. Funding for the agreement is in the Street Transportation Department's budget utilizing Arizona Highway User Revenue Funds.
The City is expecting to generate approximately $2.1 million in parking meter revenues for Fiscal Year (FY) 2021, which is a decrease from previous years due to the onset of the COVID-19 pandemic in March 2020. Prior to 2020, parking meter program revenues had been steadily increasing and reached approximately $3.9 million in FY 2019. Revenues have begun to trend upward; therefore, the parking meter revenues are anticipated to exceed $21 million over the life of the ten-year agreement.
In the event a new parking meter vendor is awarded the agreement, the RFP agreement structure does include lease and financing options that will provide flexibility to absorb the required capital investment.
Concurrence/Previous Council Action
The City Council approved:
- Installation of New Parking Meter Technology Agreement 135354 (Ordinance S- 39393) with IPS on Nov. 28, 2012;
- Additional payment authority (Ordinance S-43895) to expand the parking meter program on Sept. 6, 2017;
- Parking Meter Technology Agreement 135354 - Amendment (Ordinance S-44122) on Dec. 13, 2017; and
- Parking Meter Technology Agreement 135354 - Amendment (Ordinance S-46975) on Oct. 7, 2020.
The Transportation, Infrastructure and Innovation Subcommittee:
- Recommended City Council approval to issue an RFP on April 7, 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.