HomeMy WebLinkAboutItem 08 - Purchase of Multi-Space Pay Stations for On-Street Parking Management Department Name: Public Works
Cost Center: 5101
For Agenda of: August 18, 2020
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Gaven Hussey, Parking Services Manager
SUBJECT: PURCHASE OF MULTI-SPACE PAY STATIONS FOR ON-STREET
PARKING MANAGEMENT
RECOMMENDATION
1. Adopt a Resolution (Attachment A) authorizing the City Manager to execute a sole source
contract with IPS Group for purchase and installation of Multi-Space Pay Stations in an
amount not to exceed the available project budget; and
2. Authorize the City Manager to execute a separate sole source contract with IPS Group for
the operation and maintenance of the Multi-Space Pay Stations.
DISCUSSION
Background
In January 2012, the City entered into an agreement with IPS Group, Incorporated (IPS) to
purchase and service 400 single-space credit card capable parking meters. In March 2012, the
400-credit card capable meters were installed in various surface parking lots as well as on-street
locations throughout the downtown area. Within a year of implementation, credit card
transactions accounted for 38% of revenue collected from the 400 meters and generated more
than 28% increase in net revenue over staff’s original revenue projection prior to
implementation. As of 2019, credit card transactions accounted for 57% of the total revenue
collected from the credit card capable meters with almost 32,000 credit card transactions per
month.
Now, over eight years later since implementation, most of the credit card capable meters
purchased in 2012 are still in operation but they continue to require more maintenance and
support as they age out. According to IPS, the average lifespan of the credit card capable meters
used by the City is five years before major components begin to fail. Staff has experienced
failures and is now having to rebuild some of the meters out of spare parts to keep them
operational (which is not recommended by the manufacturer).
However, the most pressing issue with the current parking meters is that they use AT&T’s 3G
cell network to communicate wirelessly for the transfer of data. In 2018, AT&T announced that
they will begin phasing out all 3G network equipment and support. Loss of communication via
3G cell network will mean that credit card transactions can no longer take place, resulting in loss
of revenue and data collected (maintenance activity, battery health, failed components, etc.) by
the meters to the City.
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Parkers would still be able to pay with coin at the meters but would impact credit card payment
adoption and be confusing for users since the meter would still appear as though it accepted
credit cards. IPS indicates that 3G will be supported through the end of 2020, possibly extending
into early 2021, but loss in communication amongst the current parking meters is already
occurring in various locations downtown.
Upgrade / Replacement Plans Pre- and Post-COVID
In response to the anticipated loss of support for AT&T’s 3G cell network and the impacts it
would have on the City’s credit card capable meters, Parking Services, as part of the 2019-21
Financial Plan, requested and was approved to invest $257,500 in both FY 2019-20 and FY
2020-21 (total of $515,000) to replace and upgrade the City’s existing credit card capable meters
with a newer single-space meter model that uses 4G cell network for communication. Parking
Services has tested two different single-space models that use 4G cell networks for
communication and both models have operated with minimal issues for over a year.
But, before the funds could be invested in new single-space meters, the COVID-19 pandemic
and resulting shutdown, required Parking Services to reevaluate its operations and services. This
reevaluation led to Parking Service’s decision to pursue multi-space pay stations for on-street
physical payments instead of the more traditional single-space meters currently used by the City.
On June 20, 2020, as part of the 2021 Supplemental budget, Council approved the reallocation of
the previously approved parking meter upgrade / replacement funds to be used for multi-space
pay stations.
Multi-Space Pay Stations Integration into “Complete” Modern Parking Payment System
As Council is aware, Parking Services is focused on upgrading its infrastructure to make the user
experience as friendly and safe as possible. Multi-space pay stations receive payments for
multiple parking spaces via a single piece of equipment rather than an individual meter for each
space. This limits the amount of equipment that needs to be maintained and, in the case of
COVID-19, the amount needed to be disinfected by City staff. Parking Services is also pursuing
pay-by-phone technology that will further limit the need for customers to physically touch and
use public parking equipment to pay for their parking sessions.
Pay-by-phone technology will integrate seamlessly with IPS’s pay stations as well as the City’s
current license plate recognition (LPR) enforcement technology. With this “Complete” modern
parking payment system, the pay stations and future pay-by-phone technology both allow the
City to publish occupancy data to a website or mobile application that provides customers with
real-time information on parking availability. This in turn will reduce vehicle time while
searching for parking spaces.
Why Sole Source the Purchase?
Pursuant to the City’s Municipal Code Section 3.24.060(D), certain acquisitions in which the
equipment or services have been uniformly adopted in the City or otherwise standardized may be
obtained from a single source without engaging in bidding procedures. While there are multiple
vendors that manufacture multi-space pay stations, they will not fully integrate with IPS’s back-
end management system (which the City presently uses) because they are different platforms that
are only designed to manage equipment from one manufacturer.
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A back-end management system is a web-based application that allows staff to monitor usage
and maintenance needs for multiple pieces of equipment remotely from an office environment.
Maintaining single-space meters as well as new multi-space pay stations through one integrated
back-end management system will allow staff to easily monitor the equipment for issues, report
on revenue, and adjust pricing as needed. Utilizing one back-end system also reduces the cost of
integration fees that vendors charge the City which allows equipment and software from
different manufacturers to communicate with one another. The City’s Information and
Technology Department has reviewed this project and is supportive of the recom mendation
because communication and credit card processing at the pay stations will follow the same
processes currently used by the credit card capable meters. Attachment A is a resolution
authorizing the City Manager, or his designee, to execute a sole source contract IPS for the
purchase of multi-space pay stations as well as a sole source contract with IPS for the operation
and maintenance of the multi-space pay stations the City will purchase.
IPS also has a proven track record of integrating with the City’s LPR technology vendor
(Genetec, Inc.) as well as most of the major pay-by-phone vendors that the City may contract
with in the future.
Implementation, a Phased Approach
Staff plans to replace a majority of the credit card capable meters in the downtown area with
multi-space pay stations through this initial purchase agreement with IPS. The new pay stations
will replace approximately 325 credit card capable single-space meters and 77 coin only single-
space meters. The locations are based on the number of parking meters being displaced per block
as well as input received from IPS based on their operational experience in different cities
throughout California. The current plan includes the installation of 54 pay stations with 1 spare
pay station if, after implementation, it is determined that another station is needed to provide
adequate coverage.
The displaced single-space credit card capable meters will be, temporarily, relocated to blocks
with existing coin only parking meters. The coin only meters operated by the City are over 20
years old and are no longer supported by the manufacturer. The relocated single-space credit
card capable meters will be phased out at a later date by multi-space pay stations or an equivalent
technology that provides the same parking payment access before the anticipated loss of 3G cell
network connectivity takes place. Staff believes this phased approach to implementation is the
best way to transition paid parking from single-space meters to multi-space meters by offering
both for a period of time before removing single-space meters altogether.
Next Steps
If the purchase is approved, the next steps for staff are to finalize the purchase agreement with
IPS, develop marketing and outreach materials about the pay stations, and schedule a time for the
installation of the pay stations. Attachment B is a term sheet outlining the services and
responsibilities of both IPS and the City for the purchase and installation of the multi-space pay
stations. IPS has indicated that they will need 10 to 12 weeks from the execution of the purchase
agreement to fulfill the order. IPS also indicated that the installation will take approximately 12
to 15 working days depending on the existing conditions of each pay station location. Given
these timelines, staff anticipates that the installation will be completed by the end of 2020.
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Public Engagement
Staff discussed the proposed project with Downtown SLO’s Parking and Access Committee on
May 28, 2020. The Committee members were contacted again on June 15, 2020 to provide staff
with feedback on the project; however, no formal position was taken.
CONCURRENCE
The Parking Services Program has reviewed this project with Information Technology Staff and
they concur this project work will have minimal impact on City IT infrastructure because the
multi-space pay stations communicate and process credit cards in the same way as the current
single-space parking meters. The Purchasing Division of the Finance Department concur with
the justifications to pursue a sole source purchase with IPS Group.
ENVIRONMENTAL REVIEW
This project is considered a project under California Environmental Quality Act (CEQA)
guidelines; however, it is categorically exempt under CEQA Guidelines Sec. 15301 Class 1(c).
FISCAL IMPACT
Budgeted: Yes Budget Year: FY2021
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Implementation Cost
Parking Fund $404,171.98 $36,300* $440,471.98
Total $404,171.98 $36,300* $440,471.98
*On-going costs include wireless gateway / data fee and meter management software license fee. This amount does
not include merchant processing fees which vary depending on usage, merchant processor, and banking service
provider used by the customer.
As part of the 2020-21 Supplemental Budget that was presented to Council on June 2, 2020, the
Parking Fund requested and was approved to reallocate $515,000 in funds previously earmarked
for the single-space parking meter upgrade / replacement project to be used instead to invest in
multi-space pay stations.
The cost to purchase and install the pay stations is $392,756.53 (Exhibit A to Attachment B) and
the cost for spare parts for the pay stations is $11,415.45 (Exhibit B to Attachment B). This
amount does not include the City’s cost for public noticing during the installation of the
equipment or the cost of wayfinding signage. These costs will be determined once final locations
of pay stations have been identified.
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ALTERNATIVES
1. Deny sole source purchase request and direct staff to pursue a purchase agreement
through a Request for Proposals (RFP) process. Staff does not recommend this alternative
as the existing single-space credit card parking meters are experiencing more issues and will
lose cell network support over the next year. The RFP process will add three to six months,
minimum, to the acquisition process not including the time for contract negotiation,
purchase, and installation. Additionally, the uniform adoption of new equipment and
payment technology from a single vendor reduces integration costs and requires no additional
setup for City IT or Finance since communication and credit card processing procedures are
already established.
2. Deny the investment in new payment technologies altogether. Staff does not recommend
this alternative for the reasons identified in the above alternative but also because multi -space
pay stations provide a more “future proof” payment option that is easier to integrate with
enforcement technology and non-physical forms of payment.
Attachments:
a - Draft Resolution
b - Term Sheet for Multi-Space Pay Station Installation
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R ______
RESOLUTION NO. _____ (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO
EXECUTE A SOLE SOURCE CONTRACT FOR PURCHASE AND
INSTALLATION OF MULI-SPACE PAY STATIONS AND A SOLE
SOURCE CONTRACT FOR OPERATION AND MAINTENANCE OF
MULTI-SPACE PAY STATIONS WITH IPS GROUP, INCORPORATED
WHEREAS, the City of San Luis Obispo has contracted with IPS Group, Incorporated
(IPS Group) since 2012 for the use and maintenance of single-space credit card capable parking
meters; and
WHEREAS, the existing single-space credit card capable parking meters communicate
via 3G cellular network that, by the end of 2021, will no longer be supported by the cellular
network provider; and
WHEREAS, the City has budgeted to invest in new technologies to upgrade the existing
on-street and off-street parking payment systems including replacement of existing single-space
parking meters; and
WHEREAS, the City has recognized the need to upgrade public amenities to provide safer
and easier to sanitize equipment in response to the COVID-19 pandemic; and
WHEREAS, IPS Group offers multi-space pay stations that have been used in other
municipal parking operations to replace single-space parking meters; and
WHEREAS, multi-space pay stations offered by IPS Group utilize the same back-end
management system currently used by the City to manage the operations and maintenance of all
existing single-space credit card capable parking meters; and
WHEREAS, utilizing one back-end management system for all on-street payment
technology operated by the City provides a holistic, uniform source for all operation, maintenance,
and payment information; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The City Manager, or his or her designee, is authorized to execute a sole
source contract with IPS Group, Incorporated for the purchase and installation of multi -space pay
stations, as well as any amendments thereto.
SECTION 2. The City Manager, or his or her designee, is authorized to execute into a
separate sole source service contract with IPS Group, Incorporated for the operations and
maintenance of multi-space pay stations as well as any amendments thereto.
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Resolution No. _____ (2020 Series) Page 2
R ______
SECTION 3. Environmental Determination. This action is considered a project under
California Environmental Quality Act (CEQA) guidelines; however, it is categorically exempt
under CEQA Guidelines Sec. 15301 Class 1(c).
Upon motion of Council Member _________________, seconded by Council Member
__________________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2020.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, on ______________________.
____________________________________
Teresa Purrington
City Clerk
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Term Sheet for Multi-Space Pay Station Equipment Purchase and Installation
Exhibit A: Cost Quote for Pay Stations
Exhibit B: Cost Quote for Spare Parts
IPS Group, Incorporated:
•Furnish and install multi-space pay stations in compliance with City Standard
Specifications and Engineering Standards.
•Provide, to the City, insurance in compliance with City Standard Specifications 7-1.06
•Timeframe from date of agreement execution for milestone activities:
o Within seven days, submit order for equipment
o Within 14 days, provide construction schedule for completion of equipment
installation
o Within 150 days, complete installation, commissioning, and training for equipment
▪Anticipated manufacturing and production of pay stations is 10-12 weeks.
•Equipment integration with City’s license plate recognition (LPR) enforcement vendor.
o IPS Group and the City have not identified a cost for integration but both parties
recognize that there may be an integration fee associated with the project.
City of San Luis Obispo:
•Provide plan set, encroachment permit(s), and Traffic Control Plan; as necessary.
•Complete site prep at off-street locations one week prior to beginning of installation of
equipment.
•Coordinate with PG&E for A/C power; as necessary.
o IPS Group will support the City as needed and provide installation specifications
for Multi-Space Pay Stations but is not directly responsible for coordination with
PG&E on A/C power units.
•Communication and outreach to neighboring properties and public about the project.
o IPS Group will support the City as needed
•Installation of wayfinding signs related to the equipment.
o IPS Group will support the City as needed
ATTACHMENT B Item 8
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767-058-4 MS1 Multi-Space - Pay by Plate US Cabinet -
EU Interface - US Module – Contactless
55 $6,150.00 $338,250.00
767-296 MS1/MS3 Standard Mounting Plinth 55 $00.00 $00.00
767-295 MS1/MS3 Standard Mounting Pedestal 55 $00.00 $00.00
767-089 MS1/MS3 Installation Hardware 55 $00.00 $00.00
Installation On-site Services
(2 Technician(s) - 11 Days)
1 $20,900.00 $20,900.00
Notes-Freight + FREIGHT CHARGES 1 $7,392.15 $7,392.15
Page 1/1
7737 Kenamar Court,
San Diego, CA 92121
IPS Sales Quote
Date Quote #
07/23/2020 IPS-2020-040372219
Name / Address
City of San Luis Obispo
Parking Services Dept. Public Works 1260 Chorro ST STE B
San Luis Obispo, CA 93401
Ship To
City of San Luis Obispo
Parking Services Dept. Public Works 1260 Chorro ST STE B
San Luis Obispo, CA 93401
Rep P.O. No.Terms FOB
PS Net 30 San Diego
Item Description Qty Price Total
TERMS AND CONDITIONS:
1. Quote is stated in USD. Shipping and sales tax charges may apply.
2. Orders will not be submitted until a Purchase Order has been issued or a signed copy of the
quote is received by IPS Group, Inc. If your company uses a blanket purchase order, please
write the number in the 'P.O. No.' box near the top of the quote.
3. All requested information must be sent to the email address listed below or via mail.
Notification will be sent once the order is submitted for processing.
4. This quote expires 90 days after the date it was issued.
5. Additional installation services required will be charged $950/day per technician.
6. Training and Commissioning will be $1000 minimum on a new installation if applicable.
Remarks:None Subtotal $366,542.15
Sales Tax (7.75%)$26,214.38
Grand Total $392,756.53
Signature _______________________________________
Phone #Fax #E-mail
858-568-7648 858-408-7839 support@ipsgroupinc.com
EXHIBIT A Item 8
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800-001 Multi-Space Main Operating Board with
LCD and Modem (US)
3 $995.00 $2,985.00
767-026 Standard USA MS 1 Card Reader Assembly 3 $129.00 $387.00
795-054 Coin Validator Assembly Compatible with
MK5 and MS1
3 $75.00 $225.00
800-006 Hengstler Thermal Printer with IPS Cover
and Custom Spout
2 $795.00 $1,590.00
767-471 Hengstler Printer Custom Spout 2 $05.00 $10.00
767-047-ASY MS 1 Cash Box Assembly with Lock 3.7 L 15 $195.00 $2,925.00
767-019 Pay by Plate Alphanumeric Keypad 6x7
Assembly
2 $225.00 $450.00
767-622-2P MS 1 Multi Space Battery - Tandem/Dual
Battery Pack
3 $324.00 $972.00
767-075 MS1 Tandem Battery Bracket 1 $40.00 $40.00
795-600-MST Multi-Space Main Battery Eve (BAT-0005)3 $15.00 $45.00
800-030 Multi-Space Armored Glass Replacement
Assembly
3 $125.00 $375.00
767-686 MS1 Battery Cable For Battery Bar (New
Battery Cable)
2 $25.00 $50.00
Page 1/2
7737 Kenamar Court,
San Diego, CA 92121
IPS Sales Quote
Date Quote #
07/28/2020 IPS-2020-072882784
Name / Address
City of San Luis Obispo
Parking Services Dept. Public Works 1260 Chorro ST STE B
San Luis Obispo, CA 93401
Ship To
City of San Luis Obispo
Parking Services Dept. Public Works 1260 Chorro ST STE B
San Luis Obispo, CA 93401
Rep P.O. No.Terms FOB
PS Net 30 San Diego
Item Description Qty Price Total
EXHIBIT B Item 8
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767-901 MS Paper - 7 inch Paper Roll (Standard)15 $25.00 $375.00
Notes-Freight + FREIGHT CHARGES 1 $178.20 $178.20
Page 2/2
7737 Kenamar Court,
San Diego, CA 92121
IPS Sales Quote
Date Quote #
07/28/2020 IPS-2020-072882784
Name / Address
City of San Luis Obispo
Parking Services Dept. Public Works 1260 Chorro ST STE B
San Luis Obispo, CA 93401
Ship To
City of San Luis Obispo
Parking Services Dept. Public Works 1260 Chorro ST STE B
San Luis Obispo, CA 93401
Rep P.O. No.Terms FOB
PS Net 30 San Diego
Item Description Qty Price Total
TERMS AND CONDITIONS:
1. Quote is stated in USD. Shipping and sales tax charges may apply.
2. Orders will not be submitted until a Purchase Order has been issued or a signed copy of the
quote is received by IPS Group, Inc. If your company uses a blanket purchase order, please
write the number in the 'P.O. No.' box near the top of the quote.
3. All requested information must be sent to the email address listed below or via mail.
Notification will be sent once the order is submitted for processing.
4. This quote expires 90 days after the date it was issued.
5. Additional installation services required will be charged $950/day per technician.
6. Training and Commissioning will be $1000 minimum on a new installation if applicable.
Remarks:None Subtotal $10,607.20
Sales Tax (7.75%)$808.25
Grand Total $11,415.45
Signature _______________________________________
Phone #Fax #E-mail
858-568-7648 858-408-7839 support@ipsgroupinc.com
EXHIBIT B Item 8
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