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Home My WebLink About11 - Amendment No. Four to PSA for Pay-By-Cell and Parking Reservation ServicesQ SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report March 22, 2022 Agenda Item No. 11 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Scott Catlett, Finance Director/Treasurer - 949-644-3123, scatlett@newportbeachca.gov PREPARED BY: Caryl Bryant, Fiscal Specialist, cbryant@newportbeachca.gov PHONE: 949-644-3149 TITLE: Amendment No. Four to Professional Services Agreement with Parkmobile, LLC for Pay -By -Cell and Parking Reservation Services ABSTRACT: The City of Newport Beach (City) entered into a Professional Services Agreement (Agreement) with Parkmobile, LLC (Parkmobile) for pay -by -cell and parking reservation services on April 5, 2016. The Agreement was amended three times, and currently expires on April 4, 2022. Staff is requesting an extension of the Agreement to March 31, 2023, in order to update the pay -by -cell program to add additional providers. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve Amendment No. Four to extend the Agreement termination date to March 31, 2023, and add $116,000 to the not -to -exceed amount; and c) Authorize the City Manager and City Clerk to execute Amendment No. Four to the Agreement. DISCUSSION: Parkmobile provides a payment platform that allows parkers to pay their parking fees with their smart phones. Payment for parking by cell phone instead of meters or pay stations has increased in popularity during the past few years. In addition, the recent pandemic increased people's comfort level in using cell phone applications to pay for parking. From 2018 to 2021, pay -by -cell transactions increased by 17%, and now represent 34% of all parking transactions in the city. Customers can link the Parkmobile app to various electronic payment methods, including credit or debit cards, PayPal and other mobile wallet options. The customer is then able to pay for parking from the convenience of their car, set up expiration notifications, and add time from their current location without returning to a meter or pay station. Amendment No. Four to Professional Services Agreement with Parkmobile, LLC for Pay -By -Cell and Parking Reservation Services March 22, 2022 Page 2 The City entered into the initial Agreement with Parkmobile on April 5, 2016 for pay -by - cell and parking reservation services. The Agreement was amended by Amendment No. One dated March 26, 2019, to increase compensation as more customers than projected used Parkmobile; Amendment No. Two, dated January 12, 2021, to extend the term of the agreement and update various portions of the agreement for administrative reasons; and Amendment No. Three, dated March 23, 2021, to extend the term of the Agreement to April 4, 2022. As the pay -by -cell option increases in popularity, the City hopes to provide residents, visitors, and businesses additional parking application options. A Request for Proposals was issued on November 10, 2021, to seek additional pay -by -cell providers as well as a data integration company. Staff is currently negotiating and finalizing agreements with four pay -by -cell providers, as well as a data aggregator, and creating the administrative process to manage the parking and payment data from multiple entities. This will provide customers with even greater flexibility in their options to pay for parking transactions. Implementation of the data aggregation system and the expansion to four pay -by -cell providers will take time, and the proposed Amendment No. Four will provide adequate time and funding under the Agreement to complete the implementation. FISCAL IMPACT- Parkmobile charges $0.15 per parking payment transaction, $1 for each reservation, and $200/month for promotional codes. In FY 2020-21, the City paid $105,663 for transaction fees and $5,200 for reservation and promotional codes. Total citywide parking revenues for FY 2020-21 amounted to $11.6 million. Of this amount, $3.4 million related to transactions processed by Parkmobile. The adopted budget includes sufficient funding for this Agreement — approximately $116,000. These funds are budgeted in multiple General Fund and Tidelands Fund accounts associated with the City's various parking facility locations. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to 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 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 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). ATTACHMENT - Attachment A - Amendment No. Four to Professional Services Agreement with Parkmobile, LLC for Pay -by -Cell and Parking Reservation Services 11-2 ATTACHMENT A Amendment No. Four to Professional Services Agreement with Parkmobile, LLC for Pay -by -Cell and Parking Reservation Services 11-3 AMENDMENT NO. FOUR TO PROFESSIONAL SERVICES AGREEMENT WITH PARKMOBILE, LLC FOR PAY -BY -CELL AND PARKING RESERVATION SERVICES THIS AMENDMENT NO. FOUR TO PROFESSIONAL SERVICES AGREEMENT ("Amendment No. Four") is made and entered into as of this 15th day of March, 2022 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and PARKMOBILE, LLC, a Delaware limited liability company ("Consultant"), whose address is 1100 Spring Street NW, Suite 200, Atlanta, Georgia, 30309, and is made with reference to the following: RECITALS A. On April 5, 2016, City and Consultant entered into a Professional Services Agreement ("Agreement") to provide pay -by -cell, parking reservation services, and optional parking permit services ("Project"). B. On March 26, 2019, City and Consultant entered into Amendment No. One to the Agreement to increase the total compensation as a result of an unanticipated increase in the volume of customer transactions for which Consultant receives payment by City. C. On January 12, 2021, City and Consultant entered into Amendment No. Two to the Agreement to extend the term of the Agreement to April 4, 2021, amend the Project Manager, Administration, Conflicts of Interest, and Notices sections, and update Insurance requirements. D. On March 23, 2021, City and Consultant entered into Amendment No. Three to extend the term of the Agreement to April 4, 2022, and update Insurance requirements. E. The parties desire to enter into this Amendment No. Four to extend the term of the Agreement to March 31, 2023 and to increase the total compensation. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM Section 1 of the Agreement is amended in its entirety and replaced with the following: "The term of this Agreement shall commence on the Effective Date, and shall terminate on March 31, 2023, unless terminated earlier as set forth herein." 2. COMPENSATION TO CONSULTANT Section 4.1 of the Agreement is amended in its entirety and replaced with the following: "City shall pay Consultant for the Services on a time and expense not -to - 11 -4 exceed basis in accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Consultant's compensation for all Work performed in accordance with this Agreement, including all reimbursable items and subconsultant fees, shall not exceed Five Hundred Thirty Five Thousand Dollars and 001100 ($535,000.00), without prior written authorization from City. No billing rate changes shall be made during the term of this Agreement without the prior written approval of City." The total amended compensation reflects Consultant's additional compensation for additional Services to be performed in accordance with this Amendment No. Four, including all reimbursable items and subconsultant fees, in an amount not to exceed One Hundred Sixteen Thousand Dollars and 001100 ($116,000.00). 3. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] Parkmobile, LLC Page 2 11-5 IN WITNESS WHEREOF, the parties have caused this Amendment No. Four to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date:%zz By: -P jai, &'-r� KvyAttorney . Harp 4r1w C ATTEST: Date: la Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: BV: Kevin Muldoon Mayor CONSULTANT: PARKMOBILE, LLC, a Delaware limited liability company By: PARKMOBILE USA, INC., a Georgia corporation Date: in Jon Ziglar Chief Executive Officer Date: go [END OF SIGNATURES] Anthony Stewart Secretary/General Counsel Parkmobile, LLC Page 3 11-6