SR 10-25-2011 3HCity of City Council Report
Santa Monica
City Council Meeting: October 25, 2011
Agenda Item: 9)
To: Mayor and City Council
From: Gigi Decavalles- Hughes, Acting Director of Finance
Subject: Purchase and Installation of New Parking Meters
Recommended Action
Staff recommends that City Council:
1) Authorize the City Manager to negotiate and execute a sole source purchase
and operating agreement to IPS Group Inc., a California -based company, in the
amount not to exceed $4,500,000 for the purchase and installation of 6,100
parking meters with ground sensors throughout the City, and an additional
amount not to exceed $612,000 annually for ongoing operating costs; and
2) Appropriate funds and adopt budget changes as outlined in the Financial Impacts
and Budget Actions section of this report.
Executive Summary
Parking operations staff completed a trial program to test new single -head parking
meters that would provide for multiple payment options, including credit card and pay -
by -phone applications. Two companies were contracted to participate in the single -
space meter trials portion. Only IPS. Groups, Inc. was able to successfully complete the
pilot project. Staff recommends awarding a sole source agreement to IPS Group, Inc. to
deliver and install solar powered parking meters that accept credit card and pay -by-
phone applications, as well as coins. The purchase and installation of the new parking
meters is estimated at $4,500,000 with ongoing operating cost estimated at $612,000
annually.
Background
There are currently 6,100 traditional parking meters deployed throughout the City of
Santa Monica. The conventional parking meters only accept coins and Santa
MoniCards. Drivers who do not have a Santa MoniCard or coins must move to another
parking facility, thereby increasing vehicle circulation and emissions in their efforts to
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avoid a parking citation. To enhance the overall parking experience and accommodate
the implementation of the City's updated parking rate strategy, the City must provide
parking meters that are able to accept multiple payment options in addition to coins and
the Santa MoniCard. The multiple payment options result in drivers being more willing
and able to pay for additional parking and increases customer satisfaction by minimizing
frustration from broken meters.
Discussion
The new parking meters would replace all existing parking meters in the City. These
new single -space meters would provide electronic payment options, such as credit card
and pay -by -phone and enhance the overall parking experience. As part of the trial
program that occurred from January to June 2011, parking operations staff deployed 75
new parking meters in high- demand areas on Ocean Avenue, Arizona Avenue and Main
Street. The new parking meters provide a simple and convenient way for drivers to pay
with coins, credit cards, and phone applications. In addition to enhancing the parking
experience, the meters may be adjusted to accommodate rate changes, thereby
facilitating the rate management strategies endorsed by Council with the Walker
Parking Study. The meters and the ground sensors ,use wireless communication to
allow for remote management. Through this system, meters report their status and
activity and provide parking occupancy data, a technological means to prevent feeding
the meter beyond the posted time limit that requires all parking customers to pay for the
parking they utilize, and send text alerts to instantly report jams to parking meter
technicians in the field. This would enhance the City's transportation demand managing
capability. The new parking meters are also more sustainable in that the change to a
solar powered capability eliminates the need to dispose of over 8,000 AA batteries
annually.
During the new parking meter trial program, staff observed outstanding improvements in
both customer service and parking meter revenue. The new parking meters have
provided the following benefits thus far:
FA
• Enhanced reliability. The proposed parking meters have been more reliable in
the test environment and in actual usage in neighboring cities. When they do
malfunction, they automatically alert meter maintenance staff, significantly
decreasing down -time when malfunctions occur. In addition, typically only one
payment option would be down, so customers would still be able to pay by one of
the remaining two options, decreasing revenue loss from broken meters and
increasing customer reliability.
• A revenue increase of approximately 10 -15 percent, without a rate increase.
• Improved customer experience by allowing for payments with credit cards and by
phone. Increased credit card usage also provides a higher level of revenue
control due to reduced number of staff handling cash. Credit card payments have
accounted for more than a third of payments in the demonstration area.
• Parking rates and all operations criteria can be programmed remotely.
Based on the success of the new parking meter trial program with IPS Group Inc.,
parking operations staff is recommending retrofitting all 6,100 parking meters
throughout the entire City, as a means of extending these benefits to more of the public.
Staff estimates that the new parking meter installation could begin as early as
December 2011 and be completed in June 2012. The fiscal year 2011 -13 budget
includes an increase of approximately $1.7 million in parking meter revenue anticipated
from installation of the proposed meters. If the new meters are not installed, meter
revenue will not meet budget as these meters are more reliable, have the ability to
actively manage parking rates, and require each parking customer to pay for the time
that they use the on- street parking space, similar to how off - street parking resources are
managed.
Vendor Selection
In January 2011, the City initiated a trial program to test new single -space on- street
parking meters with electronic payment options. All companies that produce credit -card
enabled parking meters were invited to participate. IPS Group, Inc. was the only
company that could deliver a functional single -space product. The City has replaced
single -space meters with multi -space meters in locations where the density of parking
makes the use of multi -space meters feasible, such as the Main Street parking lots. IPS
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Group, Inc. has been producing parking solutions for fifteen years and is the leading
provider of single -space credit card meters in California. IPS Group, Inc. single -space
meters have been widely deployed in Los Angeles, Beverly Hills, and West Hollywood
and are widely accepted and known by on- street parkers in the Los Angeles area. IPS
Group, Inc. is a local, San Diego based company. In addition to providing credit -card
and pay -by -phone functionality, the meters produce dynamic real -time usage and
revenue reports. The recommended meters also will allow staff to reconcile actual coins
collected with meter route revenue reports, increasing financial controls. The price
quoted to Santa Monica is consistent with the price provided to these cities.
Financial Impacts & Budget Actions
The purchasing agreement to be awarded to IPS Group Inc. is $4,500,000. While the
project was anticipated to be a three -year phased program with $2 million in funding
budgeted each year beginning in FY 2011 -12, for a total of $6 million, consolidating the
phases and awarding the full contract now would reduce the total cost of the project by
$1.5 million. Staff is requesting an additional appropriation of $2,272,500 million to
account 0010874.589000 in FY 2011 -12. Funds for an estimated $612,000 in ongoing
operating and maintenance costs will be requested in each biannual budget cycle for
Council approval. No maintenance funds are anticipated during the first year. Revenues
are deposited in account 012250.400300.
Prepared by: Frank Ching, Parking Coordinator
Approved:
,Gigi DecavaTles -h
Acting Director of
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Forwarded to Council:
Rod Gould
City Manager
Reference Contract No.
9496 (CCS).