HomeMy WebLinkAbout12 - Parking Meter Equipment Replacement Plan and Purchase AuthorizationQ �EwPpRT
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<,FORN'P City Council Staff Report
October 13, 2020
Agenda Item No. 12
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Dan Matusiewicz, Finance Director - 949-644-3123,
dmatusiewicz@newportbeachca.gov
PREPARED BY: Caryl Bryant, Fiscal Specialist, cbryant@newportbeachca.gov
PHONE: 949-644-3149
TITLE: Parking Meter Equipment Replacement Plan and Purchase
Authorization
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During the study session on August 25, 2020, the City Council directed staff to return with
a plan to replace the single space meters with the lowest possible number of pay stations,
as may be required by State law. In consultation with our parking consultant and the
Community Development Department, staff reviewed the placement of pay stations,
being mindful of Council's desire to limit their number while providing the public
reasonable access to physical payment locations as is required by current law. Staff is
requesting City Council to authorize the City Manager to enter into a contract for the
purchase, installation and maintenance of approximately 58 pay stations, and related
monthly fees, to replace the City's single space meters; as well as the purchase of other
supporting pay station equipment, in an amount not to exceed $661,004.
RECOMMENDATION:
a) Find this project exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably
foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity
is not a project as defined in Section 1578) of the CEQA Guidelines, California Code
of Regulations, Title 14, Chapter 3, because this project has no potential to have a
significant effect on the environment;
b) Authorize staff to purchase and install the minimum number of pay stations as may be
required to ensure compliance with the City's Local Coastal Program Implementation
Plan and the California Vehicle Code;
c) Authorize the City Manager or designee to enter into an agreement for the purchase,
installation and maintenance of the minimum number of multi -space pay stations
required to replace single space parking meters, in an amount not to exceed
$661,004; and
d) Waive the standard bidding requirements provided by City Council Policy F-14 and
approve a single source award of the agreement to T2 Systems, Inc. (T2).
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Parking Meter Equipment Replacement Plan and Purchase Authorization
October 13, 2020
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FUNDING REQUIREMENTS:
Funds are set aside annually to manage the perpetual replacement of parking equipment
in an equipment internal service fund, which has accumulated roughly $1.6 million for this
purpose. Had the City simply replaced the 821 existing single space meters and housings,
the equipment cost alone would have totaled $1.1 million. The proposed contract
authorization of $661,000 includes a 10% contingency in case additional equipment is
deemed necessary; there are sufficient appropriations available in this fund to
accommodate this purchase. Staff estimates that combined parking revenues over the
next ten years will exceed $80 million, not including parking citations.
DISCUSSION:
Background
The City has approximately 4,100 on -street and off-street pay parking spaces, which
includes the Balboa Parking Lot and Corona del Mar Parking Lot. Most of the City's single
space meters are located on the Balboa Peninsula. There are also single space meters
located on Pacific Coast Highway in West Newport, the Mariners Mile area, and the
beachfront ends of numbered streets off Seashore Drive.
Parking revenues generate approximately $8.2 million annually and are collected from
821 single space parking meters, 84 multi -space pay stations, and the Parkmobile parking
pay -by -phone app. In Fiscal Year 2019-20, single space parking meters accounted for
$984,000, or 12% of the parking revenues, and multi -space pay stations accounted for
$5,248,000, or 64% of the parking revenues. The remaining $1,968,000 (24%) came
from individuals using Parkmobile.
The City's single space parking meters are approximately ten years old and difficult to
maintain. Existing meters are becoming increasingly inoperable, allowing drivers to park
for free at that space. The meters suffer from battery and corrosion issues, but most
critically, the meters use 2G cell service, which may no longer be supported by wireless
carriers by the end of this calendar year. In addition, the manufacturer has stopped
servicing and providing batteries and other replacement parts for those meters.
Physical Payment Options Still Required
E -Commerce is evolving rapidly, and the COVID-19 pandemic has accelerated the
adoption of e -currency, mobile payment and other touchless payment alternatives. During
the month of July 2020, 30% of all parking revenue was collected through the mobile
payment option. Therefore, this may be the time to accelerate the City's plan to reduce
parking infrastructure on public sidewalks and provide more cost-effective payment
alternatives. However, at the current time, it is still necessary to provide physical payment
options to comply with the California Vehicle Code and to ensure all visitors to the City
are reasonably accommodated.
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Parking Meter Equipment Replacement Plan and Purchase Authorization
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Staff and consultants have proposed a plan for the placement of 58 new pay stations in
addition to the 84 pay stations already in service. This proposal would provide one pay
station per 10-20 parking spaces currently served by single space parking meters. Under
this plan, if a visitor cannot or prefers not to use mobile payment options to pay for parking,
that visitor would not need to go more than two blocks to find a physical pay station.
California Coastal Act
As a certified agency, staff will obtain a Coastal Development Permit (CDP) through
Community Development Department. With any CDP issued in the coastal appeal areas,
notification of the CDP is sent to the California Coastal Commission (CCC). If the CDP
is appealed by the CCC, then staff will work collaboratively with them to find equitable
solutions to any issues they may have. Staff may need some latitude to successfully
negotiate the minimum number of pay stations necessary to adequately serve the
beachgoing public, which may result in a higher number of pay stations than what is
planned.
Single Source Award of Contract
In July 2019, the City issued a Request for Proposal (RFP) solicitation seeking proposals
for single space meters and multi space pay stations with a web -based data management
system. Following the RFP process that included evaluations of written proposals,
interviews and hardware demonstrations, the RFP's evaluation panel confirmed that the
two finalist proposers, 1) IPS and 2) a collaboration between T2 and Civic Smart, could
best meet the City's requirements for infrastructure replacement. Because the City is no
longer considering the use of single space meters and emphasis has shifted toward using
multi space pay stations, the scope of the RFP and its findings are no longer applicable.
However, during the RFP process, T2 pay stations scored comparably to IPS pay
stations. T2 and IPS pay stations performed comparably at a live demonstration where
the public was invited to process sample transactions on both brand products. The public
also completed a short survey form to rate the equipment.
The City currently uses T2 pay stations. Customers are familiar with the T2 pay station
interface, reducing the amount of change to the customer parking experience. In addition,
the pay stations would use the same replacement parts, allowing for stocking efficiencies.
The back -end data would also be more accessible and reconcilable. Using T2 pay
stations would provide data and maintenance efficiencies that would result in cost savings
and customer service ease of use.
Purchasing different pay stations from another vendor would complicate and slow the
process of daily/monthly/yearly reconciliations due to pulling data from two sources. The
additional cost to integrate two software systems is also avoided by remaining with T2.
Data flow from multiple pay station types to enforcement software may cause small delays
and can reduce enforcement efficiencies.
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Parking Meter Equipment Replacement Plan and Purchase Authorization
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City Council Policy F-14 allows for the request of sole and single source awards in certain
cases when competitive bidding is either impractical or impossible. Council's approval of
a single source award to T2 is recommended for the aforementioned reasons.
Equipment Costs
The City intends to purchase 58 pay stations to replace the remaining 821 single space
meters in the City — 1 pay station would replace approximately 15 single space meters.
The cost associated with the purchase of 58 new pay stations is $517,462 and includes
the acquisition of EMV (credit card chip) readers, vault locks, coin cannisters, bill note
stackers, wireless telecommunication SIM cards and miscellaneous other hardware
items. This is a significant savings compared to replacing 821 new single space meters
that would have a total hardware cost of $1,097,424. The cost associated with the
necessary upgrades to 84 existing pay stations is $83,450 and also covers the acquisition
of EMV readers, vault locks, and similar hardware equipment. The addition of a 10%
contract contingency adds $60,091 for a total cost of $661,004 as summarized in the
table below. The lifespan of a pay station is seven to ten years.
New Parking Equipment Costs
Hardware - Paystation
Paystations, EMV (cc chip) readers, vault 517,462
lock, coin cannister, etc.
Upgrades to 84 Existing Paystations
EMV readers, vault lock, etc. 83,450
10% Contingency 60,091
Grand Total $ 661,004
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 1578) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because this project has
no potential to have a significant effect on the environment.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
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