title
CC - FOUR-FIFTHS VOTE REQUIREMENT (BUDGET AMENDMENT ONLY): Approval of a Budget Amendment in the Amount of $96,780 from the Parking Authority’s Fund Balance to Fund Years 1 and 2 of an existing 10-Year Agreement with SkiData to Service and Maintain Parking and Revenue Control System Equipment in the City Hall, Watseka, Cardiff and Ince Garages.
body
Meeting Date: January 24, 2022
Contact Person/Dept: Todd Tipton CDD/Economic Development
Phone Number: (310) 253-5783
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X]
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (01/20/2022), (E-mail) Downtown Business Association (01/20/2022);
Department Approval: Sol Blumenfeld, Community Development Director (01/11/2022)
______________________________________________________________________
RECOMMENDATION
Staff recommends the City Council approve a budget amendment in the amount of $96,780 from the Parking Authority’s Fund Balance to fund years 1 and 2 of an existing 10-year agreement with SkiData to service and maintain parking and revenue control system (PARCS) equipment in the City Hall, Watseka, Cardiff and Ince Parking Garages (Garages). (A budget amendment requires a four-fifths vote.)
BACKGROUND/DISCUSSION
In October 2016 the City Council authorized execution of an agreement with Sentry Control Systems (Sentry) for: (1) the purchase and installation of new PARCS equipment in City garages; and (2) a 10-year agreement in an amount not to exceed $1,145,238 to service and maintain the equipment (Maintenance Agreement). The Maintenance Agreement 10-year term began after the PARCS equipment satisfied conformance testing parameters in early 2020.
In late 2019 Sentry was acquired by SkiData, creating the largest provider of PARCS equipment in the United States.
In mid-2020 SkiData executed an Assignment and Assumption Agreement whereby it assumed Sentry’s rights, responsibilities and obligations related to the City’s PARCS equipment. After SkiData assumed Sentry’s rights, staff became aware that City funds had not been appropriated for the Maintenance Agreement and Staff is now seeking a budget amendment to appropriate the funds.
FISCAL ANALYSIS
The PARCS equipment is warrantied the first two years, resulting in a significantly lower cost during that time (service only). During year three (following expiration of the two-year warranty period), the maintenance agreement price increases an average of 3.1% per year to continue to fund equipment coverage. The cost of the annual preventative maintenance agreement is as follows:

The annual preventive maintenance fee for Fiscal Years 2020/2021 and 2021/2022 is $48,390. Staff recommends the City Council approve a budget amendment to the FY 2021/2022 Adopted Budget in the amount of $96,780 (Years 1 and 2) from the Parking Authority Fund Balance into Account #4758000.619800. Funding for the remainder of the service agreement will be incorporated into future annual budgets.
Note: As of June 2021, the Parking Authority’s Fund Balance was $14.4M.
The minimum expected life cycle of this equipment is 10 years, with a strong likelihood it will last longer with regular service and maintenance.
ATTACHMENTS
None.
MOTIONS
That the City Council:
Approve a budget amendment in the amount of $96,780 from the Parking Authority’s Fund Balance to fund an existing 10-year agreement with SkiData to service and maintain parking and revenue control system (PARCS) equipment in the City Hall, Watseka, Cardiff and Ince Parking Garages. (A budget amendment requires a four-fifths vote).