HomeMy WebLinkAbout17 - Amendment to PSA for Pay-By-Cell and Parking Reservation ServicesQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
August 22, 2023
Agenda Item No. 17
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jason AI -Imam, Finance Director/Treasurer - 949-644-3126,
jalimam@newportbeachca.gov
PREPARED BY: Anthony Alannouf, Management Assistant,
aalannouf@newportbeachca.gov
PHONE: 949-644-3148
TITLE: Amendment No. Eight 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 seven times and currently
expires on August 31, 2023. Staff is requesting an extension of the Agreement to
November 30, 2023, to ensure continuity of pay -by -cell parking in the community while
the City negotiates terms and conditions of new pay -by -cell contracts in connection with
a competitive procurement process that is nearing completion.
RECOMMENDATIONS:
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;
and
b) Approve Amendment No. Eight to extend the Agreement termination date to
November 30, 2023, and authorize the Mayor and City Clerk to execute the
Amendment.
DISCUSSION:
On April 5, 2016, the City entered into a Professional Services Agreement with
Parkmobile for pay -by -cell and parking reservation services. The goal of the Parkmobile
agreement was to provide an additional payment option to the single-space meters and
pay stations for parking in Newport Beach. Rather than walk to the meters or pay stations,
customers could download the Parkmobile app on their cell phones and pay for parking
immediately by linking 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.
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Amendment No. Eight to Professional Services Agreement with Parkmobile, LLC
for Pay -By -Cell and Parking Reservation Services
August 22, 2023
Page 2
Payment for parking by cell phone instead of meters or pay stations has increased in
popularity the past few years. From 2016 to 2023, pay -by -cell transactions have
increased and now represent 42% of all parking transactions in the City.
As pay by cell becomes an increasingly popular payment option state and nationwide, to
provide more options to pay for parking by cell phone, the City issued an RFP for multiple
mobile parking payment services on November 10, 2021. The City received eight
proposals, which included two submissions that were incomplete and therefore were
considered non -responsive.
City staff intends to recommend contracting with four pay -by -cell providers. While
negotiations are ongoing, staff requests City Council approval to amend the Parkmobile
Agreement to extend the expiration date from August 31 to November 30, 2023, to ensure
continuity of pay -by -cell parking in the City. Staff intends to bring the pay -by -cell contracts
to Council for approval in the next few months.
FISCAL IMPACT:
The adopted budget includes sufficient funding for the extension of this agreement. The
City receives approximately $4.2 million of revenue for pay -by -cell parking related activity
each year, net of credit card fees. Parkmobile's transaction fee is currently
$0.15/transaction. If the City Council approves the Amendment, the pay -by -cell
transaction fees for the three-month extension period are estimated to be approximately
$34,000, which will be paid by the customer.
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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. Eight with Parkmobile
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ATTACHMENT A
AMENDMENT NO. EIGHT TO
PROFESSIONAL SERVICES AGREEMENT
WITH PARKMOBILE, LLC FOR
PAY BY CELL SERVICE PROVIDER
THIS AMENDMENT NO. EIGHT TO PROFESSIONAL SERVICES AGREEMENT
("Amendment No. One") is made and entered into as of this 22nd day of August, 2023
("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. On March 15, 2022, City and Consultant entered into Amendment No. Four to
extend the term of the Agreement to March 31, 2023, and to increase the total
compensation.
F. On October 31, 2022, City and Consultant entered into Amendment No. Five to
increase the total compensation to cover unanticipated increasing demand for pay -
by -cell transactions.
G. On March 28, 2023, City and Consultant entered into Amendment No. Six to
extend the term of the Agreement to May 31, 2023, and to increase the total
compensation.
H. On May 30, 2023, City and Consultant entered into Amendment No. Seven to
extend the term of the Agreement to August 31, 2023, to increase the total
compensation, and to update the Consultant's Notices section.
The parties desire to enter into this Amendment No. Eight to extend the term of the
Agreement to November 30, 2023, and to increase the total compensation.
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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 November 30, 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 -
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 Six Hundred Eighty Nine
Thousand Dollars and 001100 ($689,000.00), 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. Eight,
including all reimbursable items and subconsultant fees, in an amount not to exceed
Thirty Four Thousand Dollars and 001100 ($34,000.00).
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 17-4
IN WITNESS WHEREOF, the parties have caused this Amendment No. Eight to
be executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date:
I1o/Z
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By: A'P (1 j1 By:
A r n C. Harp 7-10-z% w� Noah Blom
City Attorney Mayor
ATTEST: CONSULTANT: PARKMOBILE, LLC, a
Date: Delaware limited liability company
By: PARKMOBILE USA, INC., a
Georgia corporation
By:
Leilani I. Brown Date:
City Clerk
By:
Justin Clifford
Chief Financial Officer/
Head of US Finance
Date:
By:
Tony Stewart
General Counsel/Secretary
[END OF SIGNATURES]
Parkmobile, LLC Page 3 17-5