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HomeMy WebLinkAboutItem 5e. Authorize Sole Source Agreement with with IPS Group, Inc. for Parking Citation Processing and Digital Permitting Services Item 5e Department: Public Works Cost Center: 5101 For Agenda of: 5/17/2022 Placement: Consent Estimated Time: N/A FROM: Matt Horn, Public Works Director Prepared By: Gaven Hussey, Parking Services Manager; and Alexander Fuchs, Parking Services Supervisor SUBJECT: AUTHORIZE SOLE SOURCE AGREEMENT FOR PARKING CITATION PROCESSING AND DIGITAL PERMITTING SERVICES RECOMMENDATION 1. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Sole Source Agreement for Parking Citation Processing and Digital Permitting Services with IPS Group, Incorporated” authorizing the City Manager to negotiate and execute a sole source agreement with IPS Group, Incorporated; and 2. Allocate $11,500, annually, beginning in FY 2023, from the Parking Fund’s Unreserved Working Capital to the program’s Contract Services account to cover anticipated costs of services. DISCUSSION Background – Existing Vendor Not Working In August 2016, the Parking Services Program released a Request for Proposals (RFP) for a parking citation issuance and processing services. After review and evaluation of the bid responses, in May 2017 Council authorized the execution of an agreement with Passport Labs, Inc. (“Passport”). Since then, the City has experienced multiple, significant issues with Passport’s citation processing capabilities including incorrect payment timelines on notification letters, inconsistent collection of registered owner (RO) information, issues integrating with the California Department of Motor Vehicles (DMV) computer systems, and unreliable monthly invoicing and reporting. Staff has worked diligently for years to correct these issues including hiring a third-party consultant to work with Passport on DMV integration, but the issues persist. Passport has been unable to integrate with industry standard mobile payment application vendors currently under contract with the City. The lack of integration requires Parking Enforcement Officers to check multiple applications for an active payment before issuing a citation for an expired parking session. This increases the opportunity for the wrongful issuance of citations and increases customer frustrations with the City’s new payment options. Passport’s citation processing application is functional but nowhere close to ideal for the City’s operational needs. Page 499 of 1284 Item 5e There are multiple vendors that offer citation processing and / or digital permitting services including Passport, Data Ticket, Phoenix Group, T2 Systems, etc. However, contracting with a new, untested vendor does not align with best practices of a unified management platform. The addition of mobile payment application services, multi-space pay stations, and license plate recognition (LPR) technology over the past few years has highlighted the importance integration plays in effective communication across multiple platforms. Reason for Sole Source with IPS The City has contracted with IPS for multiple products and services including single space parking meters, multi-space pay stations, and for mobile payment application services. Several years ago, IPS launched an enforcement program offering citation proce ssing and digital permitting services as part of their company’s portfolio. IPS has contracted with multiple municipalities in California, including the City of Paso Robles, and has proven their ability to provide high-quality citation processing and digital permitting services. Allowing IPS to provide mobile application payments, physical payment options at pay stations and single space meters, citation processing and digital permitting services for the City reduces the number of required integration points and reduces the opportunity for miscommunication of vital information used to verify payments and issue parking citations. Staff is therefore recommending the adoption of a Resolution (Attachment A) authorizing the City Manager, or his designee, to negotiate and execute a sole source agreement IPS for parking citation processing and digital permitting services. Next Steps If Council approves the recommendations, then the next steps will be to negotiate and execute an agreement for IPS’s services, finalize the implementation schedule, and provide notification to the existing citation processing contractor of the City’s intent to terminate their agreement. Staff anticipates a 90 -day implementation timeline with IPS going live in August 2022. Staff will then notify property owners and residents of the preferential parking permit districts of the timeline and information needed to transition to a digital permitting system. Previous Council Action In August 2020, City Council adopted a Resolution authorizing the City Manager to execute a sole source agreement with IPS for the purchase and installation of multi-space pay stations. Council also authorized the City Manager to execute a separate sole source agreement with IPS for the operation and maintenance of the pay stations. Policy Context 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. Page 500 of 1284 Item 5e Pursuant to Section 202 (Purchasing Process) of the City’s Financial Management Manual, City Council approval is required for all general services agreements totaling $150,000 or more for the term of the agreement. Staff anticipates the total compensation for the agreement to be roughly $507,000 over the five -year term. Public Engagement Staff did not engage the public regarding the recommendation to execute an agreement with IPS Group for citation processing and digital permitting services. Staff did, however, notify preferential parking permit program participants of the City’s intent to implement a digital permitting program. Information was sent to all property owners of existing parking permit districts in August 2021 along with their annual permit renewal information. CONCURRENCE Information Technology (IT) staff reviewed this project, and they concur that it will have minimal impact on City IT infrastructure and resources because communication and credit card processing of parking citation and digital permit payments will follow the same processes currently used by IPS’s mobile payment application. The City’s Purchasing Division in the Finance Department concurs with the justifications to pursue a sole source agreement with IPS Group. The Police Department, who also issue parking citations, concurs with the recommendation to contract with IPS Group for these services. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: On-going Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost Parking Fund $92,000 $11,500 $0 $96,600 Total $92,000 $11,500 $0 $96,600 Page 501 of 1284 Item 5e The City currently contracts with Passport for citation processing services. The City does not have a current contractor for digital permitting services. Based on the invoices provided by Passport for July 2021 through March 2022, the City is projected to expend approximately $84,000 in FY2022 for citation processing services (This amount does not include the convenience fees that the City is invoiced for but that is paid by customers using Passport’s online payment portal). In FY 2022 and beyond, the Parking Fund budgets $92,000 annually for citation processing services in their Contract Services account. Staff anticipates that contracting with IPS will cost approximately $103,500 in the first year (FY 2023) and approximately $96,600 annually thereaf ter based on the pricing sheet provided by IPS and parking citation issuance statistics from December 2021 through February 2022. The estimated costs include both citation processing and digital permitting services. Staff is, therefore, requesting approval to allocate $11,500, annually beginning in FY 2023, from the Fund’s Unreserved Working Capital to cover the difference in service costs. ALTERNATIVE Council could decide not to approve a sole source agreement with IPS Group. This action is not recommended by staff because the services provided by the current citation processing contractor cannot deliver a high-quality customer experience and issuing a Request for Proposals (RFP) for these services will add months to the transition process from the existing contractor to a new contractor. ATTACHMENTS A - Draft Resolution authorizing the City Manager to execute a sole source agreement with IPS Group for citation processing and digital permitting services B - IPS Group Standard Pricing Sheet Page 502 of 1284 R ______ RESOLUTION NO. _____ (2022 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING A SOLE SOURCE AGREEMENT FOR PARKING CITATION PROCESSING AND DIGITAL PERMITTING SERVICES WITH IPS GROUP, INCORPORATED WHEREAS, the City of San Luis Obispo Parking Services Division is pursuing a unified management platform for parking specific products and services offered by the City; and WHEREAS, the City of San Luis Obispo Parking Services Division has contracted with and maintained a successful relationship with IPS Group, Incorporated (IPS Group) since 2012; and WHEREAS, in 2020, the City Council of the City of San Luis Obispo authorized the execution of sole source contract with IPS Group for the purchase, installation, and ongoing service maintenance of 55 multi-space pay stations; and WHEREAS, in 2021, the Parking Services Division launched multiple mobile payment application services including Park Smarter which is wholly owned and operated by IPS Group; and WHEREAS, IPS Group offers a proven parking citation processing and digital permitting service platform used in other municipal parking operations throughout California; and WHEREAS, the City’s existing parking citation processing vendor is not able to fully integrate with other vendors’ products and payment platforms limiting staff’s ability to function efficiently; and WHEREAS, other cities in the region are using IPS for similar services and similar cost structure that was received through a competitive bid; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The Public Works Department – Parking Services Division is authorized to enter into a sole source agreement with IPS Group, Incorporated for parking citation processing and digital permitting services. Page 503 of 1284 Resolution No. _____ (2022 Series) Page 2 R ______ SECTION 2. Execution of Documents. The Council hereby authorizes the City Manager to negotiate and execute an agreement with IPS Group, Incorporated for parking citation processing and digital permitting services. SECTION 3. Environmental Determination. The authorization to enter into a sole source agreement with IPS Group, Incorporated does not constitute a “Project” under CEQA Guidelines Sec. 15378. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2022. ___________________________ Mayor Erica A. Stewart 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 Page 504 of 1284 ENFORCEMENT/PERMITTING SYSTEMS Our Mobile Enforcement Solution puts you in charge. Select a 1-piece or 2-piece design, Android or iOS operating system. IPS provides a quick and efficient citation issuance process. Electronic citations are immediately loaded into the Enforcement Management System (EMS) allowing timely access to citation information for your Agency and the public. IPS can also utilize existing agency Android and/or iOS devices or can supply new ones as provided below. Paper rolls subject to final volume, approval of artwork design and layout. Pricing does not include any applicable sales tax. Handheld Enforcement Solutions MOBILE ENFORCEMENT 1 OR 2-PIECE SOLUTION LEASE PACKAGE OPTIONS GOLD PLATINUM 1-piece N5 Mobile Enforcement Device with built in Printer Or 2-piece Solution Listed below. x x Mobile Enforcement Software x x Remote Management Suite x x Comprehensive Phone Support x x General Maintenance x x Data Plan x x Installation and Training x x Carrying Case, Spare Battery & Cradle x x Warranty 12 months 36 months Automatic Hardware Refresh (after three years) x LEASE PRICING (per device/month) $225.00 $255.00 IPS can utilize existing agency Android and/or iOS devices or can supply new ones as provided below. City can provide equipment separately if desired. IPS also supports 1-piece and 2-piece devices or any combination thereof. 1 PIECE ENFORCEMENT SOLUTION UNIT PRICE N5 Print Mobile Enforcement Device $2,950.00 N5 Charging Cradle $199.00 N5 Spare Battery $199.00 N5 Carrying Case $50.00 N5 3-Year Warranty (Optional) $750.00 2 PIECE ENFORCEMENT SOLUTION UNIT PRICE Apple iPad Mini 4 with ruggedized case, charger, and shoulder strap $995.00 Samsung Note 8 with ruggedized case, charger, and cradle $995.00 Zebra ZQ510 3in BT Printer (or equivalent) $895.00 Additional warranties or items to be priced as requested To be quoted Page 505 of 1284 Handheld Enforcement Support Mobile Enforcement Solution Units Unit Price Mobile Data Plan Per unit /per month $90.00 Handheld Support Per unit/Per month Software License (one-time fee) Per Unit Included Mobile Citation Paper (per roll) QTY 100 Per roll $11.95 Mobile Citation Paper (per roll) QTY 200 Per roll $7.95 Mobile Citation Paper (per roll) QTY 500 Per roll $5.95 Mobile Citation Paper (per roll) QTY 1000 Per roll $4.95 Plate Charges for Ticket Customization (One-time fee) Per plate $75.00 Estimated Travel Expenses for Installation Per trip $2,000.00 On-site training and installation Per day $600.00 Enforcement Back Office and Processing Services Enforcement Management System Units Unit Price One Time Setup Per Unit $5,000.00 Annual System License for EMS Per user Included Citation Issuing Fee Per unit $0.70 Manual Citation Entry Fee Per unit $1.00 RO Acquisition (local)* Per unit TBD RO Acquisition (out of state) Per unit $0.75 Delinquent Notice Processing fee (Includes Postage) Per unit $1.15 Delinquent Notice Processing fee with tracking (Includes Postage) Per unit $1.25 IVR Solution (Optional) Per month $250.00 IVR Record & Store Calls (Optional) Per call $0.50 IVR Call Transcription (Optional) Per call $1.00 LockBox Setup (one-time fee) Per unit $750.00 LockBox Operations Per Month $95.00 LockBox Mail-in Payments Per unit $1.00 Online & IVR Secure Credit Card Payments - Gateway Fee Note: Charged to the Public - assumes the use of the Client Merchant Account Per transaction $2.00 or 3% whichever is higher Optional: Hosted Merchant Account– Interchange + Fees referenced Note: Charged to the Public Per transaction $2.00 or 3% whichever is higher Additional Letters and Correspondence Per unit $1.20 1st Level Manual Adjudication Services (Online Appeals) Per unit $1.00 2nd Level Adjudication Hearing Services Per hour To be quoted *Local (In-State) DMV RO acquisition pricing to be determined based upon the agency relationship, associated costs and integration options available at time of implementation. Standard integration fees apply Page 506 of 1284 Ticket Collection Services Collections Units Unit Price Local DMV Collections (in-state collections) % of amount collected 25% of amount collected Advanced/Delinquent Collections % of amount collected 35% of amount collected Public Customer Support and Call Center Service Phone, Email and Web Chat Minutes Billing Period Cost 100 Per Month $162.50 130 Per Month $195.00 230 Per Month $325.00 300 Per Month $416.00 375 Per Month $520.00 580 Per Month $780.00 1000 Per Month $1,300.00 +1000 Per Month TBD Permit Management System Fee Schedule Permits Units Unit Price One Time Setup Per unit $5,000.00 $3,500.00 Per Permit Per unit $2.00 Permit Fulfillment (Verification) Per unit $2.00 Per Letter (Includes postage) Per unit $1.25 Online & IVR Secure Credit Card Payments - Gateway Fee *Charged to the Public - assumes the use of the Client Merchant Account Per transaction $2.00 or 3% whichever is higher Optional: Hosted Merchant Account– Interchange + Fees referenced Note: Charged to the Public Per transaction $2.00 or 3% whichever is higher Note: This pricing is FOB, IPS Group, San Diego, CA. Sales taxes and shipping charges will be added to the final invoice. IP S shall have the right to adjust Agreement pricing due to increases in Inflation as published by the US Bureau of Labor Statistics for All Items Consumer Price Index for All Urban Consumers (CPI-U) for the U.S. City Average, and will not exceed 3% compounded annually. Page 507 of 1284 IPS Limited Warranty IPS will provide a limited parts warranty for any new meter or sensor product manufactured and supplied by IPS for 12 months under normal use. The warranty protects against defects in materials and workmanship from the point of installation or 15 months from the date of delivery, whichever is sooner, and 90 days from the date of delivery received in the case of spare or repaired products. Software Services are provided “as-is” and IPS shall provide bug fixes at no cost during the contract term. Additional Warranty Provisions: IPS must have the opportunity to assist in the initial deployment and system installation. Repair or replacement under warranty of any defective product (including any meter or subcomponent) does not extend the warranty period for that product or subcomponent. IPS will either repair or replace products or subcomponents, at our discretion, that are found to be defective within the defined warranty period, with transportation costs pre-paid by the customer. Returns for credit will only apply once IPS has received defective product (including any meter or subcomponent) and confirmed that defects were within the warranty period and are covered under the terms and conditions of the warranty provided. IPS strongly recommends that customers pre - purchase spare parts inventory for immediate access. Defective parts can be replaced immediately from customer stock and IPS shall replace such components upon receipt and determination of defect. On-site labor is explicitly not included in this limited warranty. Customer shall be sufficiently trained to perform all on-site work, including meter or sub-component removal/replacement. IPS can provide additional on-site services under a separate maintenance agreement or quoted on an as-needed basis. THE WARRANTIES CONTAINED IN THE AGREEMENT DOCUMENTS ARE IPS’S SOLE AND EXCLUSIVE WARRANTIES. THE EXTENT OF IPS’S LIABILITY FOR A WARRANTY CLAIM IS LIMITED TO THE REPAIR OR REPLACEMENT OF THE DEFECTIVE EQUIPMENT OR DEFECTIVE SERVICE OR SOFTWARE AT THE SOLE OPTION OF IPS. IPS AFFIRMATIVELY EXCLUDES ANY AND ALL OTHER WARRANTIES, CONDITIONS, OR REPRESENTATIONS (EXPRESS OR IMPLIED, ORAL OR WRITTEN), WITH RESPECT TO THE EQUIPMENT AND/OR SERVICES OR SOFTWARE PROVIDED INCLUDING ANY AND ALL IMPLIED WARRANTIES OR CONDITIONS OF TITLE, MERCHANTABILITY, OR FITNESS OR SUITABILITY FOR ANY PURPOSE (WHETHER OR NOT IPS KNOWS, HAS REASON TO KNOW, HAS BEEN ADVISED, OR IS OTHERWISE IN FACT AWARE OF ANY SUCH PURPOSE) WHETHER ARISING BY LAW OR BY REASON OF CUSTOM OF THE TRADE. Exclusions: Warranty voided with use of imitation or non-genuine IPS replacement parts, un-authorized alterations, abuse, vandalism, improper installation by customer, handling or general misuse to the equipment (hardware or software), including attempted repairs that result in damage. Warranty specifically excludes any consummable items such as paper, batteries, etc. Software warranty is void if usernames and/or passwords are shared with 3 rd parties, or allowance of 3rd party access to IPS software without IPS written consent. Force Majeure: IPS shall not be liable for any warranty provisions where such product failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, hurricane or other natural disaster), war, invasion, act of foreign enemies, hosti lities (whether war is declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation, terrorist activities, nationalization, government sanction, blockage, embargo, labor dispute, strike, lockout or interruption or failure of electricity, internet services or cellular telecommunication failures caused by any of the events or causes described above. IPS provides no warranty with respect to any 3rd party hardware or software, whether supplied in connection with this Agreement or otherwise. Preventative Maintenance: The primary operational elements will be a working battery, card reader, coin validator and printer (if applicable). All product surfaces should be kept clean with mild soap and water. No harsh chemicals should be used on any plastic surfaces. The card reader heads should be cleaned with a cleaning card every 1-2 months to ensure optimum performance. Cleaning cards may be purchased from IPS. Batteries should be replaced when notified by the IPS Data Management System. At 6 month increments, the coin validator shall be visually inspected for any damage or debris. Compressed air may be used to keep the card reader, coin acceptor or printer (if applicable) clear of debris, every 6 months. Additional preventative maintenance shall be administered by customer staff at such time as it is apparent to be necessary, even if it should occur on a more frequent basis than described herein.  Page 508 of 1284