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CC - CONSENT ITEM - (1) Approval of a Five-Year Agreement with IPS Group, Inc., for (a) Purchase and Installation of Modems in 2,000 Parking Meters Owned by the City, to Upgrade the Modems from 3G Communication to 4G Communication, in an Amount Not-to-Exceed $407,925; (b) Upgrade and Repair of Approximately 350 Parking Meters Currently Inoperative, in an Amount Not-to-Exceed $108,045; (c) Purchase of 2,350 Large Coin Cans to Collect Meter Revenue in Parking Meters, in an Amount Not-to-Exceed $116,589.38; (d) Installation Services for Upgraded Parking Meters in an Amount Not-to-Exceed $39,491.55; (e) Conversion and Migration of the Police Department’s Notebook-Based Medeco E-Lock Management Software to the Current Cloud-Based System in an Amount Not-to-Exceed $20,000; (f) Purchase of Necessary Parts to Maintain an Existing System; and (g) Securing 2022 Rates for IPS Parking Meter Hardware and Services During the Term of the Agreement; and (2) Authorization to Staff to Pay Monthly Ongoing Parking Meter Fees for Credit Card Transactions, Gateway Wireless Access, and Access to IPS’s Backoffice Management Software, for All Active Single-Space Parking Meters and Multi-Space Pay Stations
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Meeting Date: November 14, 2022
Contact Person/Dept.: Andrew Maximous/Public Works
Phone Number: (310) 253-5628
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (11/09/2022)
Department Approval: Yanni Demitri, Director of Public Works Department / City Engineer (11/03/2022)
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RECOMMENDATION
Staff recommends the City Council (1) approve a five-year agreement with IPS Group, Inc., for (a) purchase and installation of modems in 2,000 parking meters owned by the City, to upgrade them from 3G communication to 4G communication, in an amount to exceed $407,925; (b) upgrade and repair of approximately 350 parking meters currently inoperative, in an amount not to exceed $108,045; (c) purchase of 2,350 large coin cans to collect meter revenue in parking meters, in an amount not to exceed $116,589.38; (d) installation services for upgraded parking meters in an amount not to exceed $39,491.55; (e) conversion and migration of Police Department’s notebook-based Medeco e-lock management software to the current cloud-based system in an amount not to exceed $20,000; (f) purchase of the necessary parts to maintain an existing system; and (g) securing 2022 rates during the term of the agreement; and (2) authorize staff to pay monthly ongoing parking meter fees for credit card transactions, gateway wireless access, and access to IPS’s backoffice management software, for all active single-space parking meters and multi-space pay stations;
BACKGROUND/DISCUSSION
Parking Meters
The City’s initial installation of smart parking meter technology commenced in 2011. Smart meters have been installed progressively throughout the City during the past decade. As a result, the meter installations utilized communication technology current at the time of the various installations. As of this report, the City’s parking meter inventory is approximately 2,950 meters. Of these, approximately 600 of the initial smart meters had 2G communication - these 600 were upgraded to 4G in 2021. The remaining 2,350 have 3G communication; but 350 of these are in need of additional repairs beyond the need for modem upgrades to 4G.
The need to upgrade from 3G to 4G is due to telecommunications firms such as T-Mobile and Verizon discontinuing support for 3G communications starting in 2022, with possible outages and disruptions in network service initially, and then fully stopping support. The impact on the City’s parking meter inventory is that meters will not be able to accept and process credit card payments, and they will not be able to communicate with the IPS servers to report transaction data or maintenance service needs.
To avoid the initial intermittent failure of the meters followed by their permanent shutdown, along with associated loss of revenue and inability to enforce meter parking violations, it is necessary to upgrade these 2,350 3G smart parking meters to 4G modems. Because staff does not have the equipment or expertise to accomplish these upgrades, it is necessary for IPS to be contracted for this.
It is important to note that the parking meter inventory cited above is the aggregate of active parking meters in the field, numbering approximately 2,000; meters in stock destined to be installed in 2023 under a prior City Council approval, representing approximately 550; meters removed from the field to accommodate COVID-19 parklets and the Move Culver City pilot, totaling approximately 50; and 350 meters that are currently inoperable. The revenue from the field-deployed meters in calendar year 2019, pre-pandemic, was over $1,837,000. The post-pandemic meter revenue in Fiscal Year 2020-2021 was approximately $954,544. Meter use/revenue is trending up post-pandemic, and it is critical that the meter system be kept operational to accomplish parking turn-over as well as to return to pre-pandemic use/revenue.
Coin Cans
The existing coin cans need to be replaced (with the exception of approximately 600 that were purchased in 2021). The coin cans are locked containers into which coins drop when the meters are fed with coins. When the meter revenue is collected by CCPD staff, these coin cans are taken out of the parking meter housings and placed on a portable vault containing a built-in key. When CCPD staff twist the coin can while resting the coin can on the vault, the built-in key opens the coin can and securely drops the coins into the vault. However, due to the age of the existing coin cans, they are failing to open at an increasing rate, and, at times, require force that damages the built-in keys and causes wrist pain for staff. The existing coin cans are old and failing to open, with an increasing failure rate and need to be replaced.
Medeco E-Lock Management System
Smart meters are equipped with e-locks that can be programmed to allow collection on a secure basis, on schedules and staff assignments as determined by the Police Department’s parking revenue collection supervisor, using Medeco electronic keys. The security realized by the e-lock system surpasses that of traditional parking meter keys. The version of the Medeco system currently owned by the City resides in a notebook computer that has surpassed its expected useful life. Further, the notebook-based system is not current, and has experienced recurring technology challenges. To avoid failure of the outdated hardware and software, and the consequent risk of losing access to e-locks for meter-revenue collection, it is necessary to migrate the existing Medeco system to the current cloud-based system. Staff proposes to accomplish this update under this agreement.
Purchase of Parts and Services
IPS Group is the sole provider of parts and services for the City’s IPS meter inventory. The proposed agreement will also explicitly authorize staff to purchase from IPS the necessary parts and services to maintain the parking meter system.
Fixed Rates
IPS has provided the City its 2022 price sheet and is willing to commit to 2022 prices and rates for parking meter hardware and services for the five-year term of the agreement.
Ongoing Monthly Fees
As a housekeeping matter, staff is requesting authority to pay IPS Group, Inc., ongoing monthly parking meter fees for credit card transactions, gateway wireless access and staff access to IPS backoffice management software.
Exception to Bidding Requirements
Pursuant to Culver City Municipal Code Section 3.07.055.B, formal competitive bidding is not required “[w]hen the equipment is a component for equipment or a system of equipment previously acquired by the City, and is necessary to repair, maintain or improve the City's utilization of the equipment.” This procurement meets this exception.
Future Purchases
As in the past, future purchases of parking meter hardware and services, beyond what the City Council authorizes staff to acquire administratively through their adopted Finance Policy, will be brought to the City Council for their consideration and authorization.
Currently, installation of parking meters in new locations requires the City Council adopt a resolution. In the future, staff will propose to the City Council discussion of the idea of delegating to staff administrative authority to install parking meters, to implement work program goals previously presented to the City Council, and when the Council has previously provided funding. This idea will first be vetted through the Mobility, Parking, and Traffic Subcommittee, and if it is supported, staff will agendize it next year.
FISCAL ANALYSIS
There are sufficient funds available in the City Council Adopted Budget for Fiscal Year 2022-2023, in CIP #47580000.730100.PZ949 New Parking Meter Installation, to pay for this proposed project.
The costs for this project are as follows:
1. $407,925 to purchase and install modems in 2,000 parking meters owned by the City, to upgrade them from 3G communication to 4G communication;
2. $108,045 to upgrade and repair approximately 350 currently inoperative parking meters;
3. $116,589.38 to purchase 2,350 large coin cans to collect meter revenue from the parking meters;
4. $39,491.55 for installation services for IPS to install the upgraded parking meters into field housings, commission and configure the upgraded meters; and
5. $20,000 to convert and migrate the Police Department’s notebook-based Medeco e-lock management software and database to the current cloud-based system;
The total project cost is $672,050.93.
Additionally, City Council’s authorization to pay monthly ongoing parking meter fees for credit card transactions, gateway wireless access and staff access to IPS’s backoffice management software for all active single-space parking meters and multi-space pay stations cannot be precisely projected, as the number of meters will vary as more meters are installed and as meters are removed from field operation for maintenance in the shop. However, the single-meter ongoing cost per month is $8.75 and the cost for each multi-space pay station is $55.
It should be noted, staff proposes to deliver the parking meters for upgrades to the IPS facility in San Diego in batches of 200 to 300 at a time, in lieu of shipping meters at a cost of $20 each, which will realize a savings of approximately $59,000 in freight. Additionally, while staff delivers the parking meters to IPS for upgrades, they will receive complimentary training in the data management system or any other aspect of parking meters desired.
ATTACHMENTS
None
MOTIONS
That the City Council:
1. Approve a five-year agreement with IPS Group, Inc., for (a) purchase and installation of modems in 2,000 parking meters owned by the City, to upgrade them from 3G communication to 4G communication, in an amount to exceed $407,925; (b) upgrade and repair of approximately 350 parking meters currently inoperative, in an amount not to exceed $108,045; (c) purchase of 2,350 large coin cans to collect meter revenue in parking meters, in an amount not to exceed $116,589.38; (d) installation services for IPS to install, commission and configure the upgraded parking meters into field meter housings, in an amount not to exceed $39,491.55; (e) conversion and migration of the Police Department’s parking meter revenue collection notebook-based Medeco e-lock management software, to the current cloud-based system, in an amount not to exceed $20,000; (f) purchase of necessary parts to maintain an existing system; and (g) securing 2022 rates during the term of the agreement; and
2. Authorize paying IPS Group, Inc., ongoing monthly parking meter fees for credit card transactions, gateway wireless access, and staff access to IPS backoffice management software; and
3. Authorize the Public Works Director/City Engineer contingency authority of 10%, or $67,205; and
4. Authorize the City Attorney to review/prepare the necessary documents; and
5. Authorize the City Manager to execute such documents on behalf of the City.