Title
Recommendation to Approve Implementation of Various Parking Efficiency and Management Actions, including: (1) Authorizing the City Manager to Execute a Five-Year Agreement with IPS Group, Inc., for the Purchase, Installation, Maintenance and Management of 20 New MS3 Parking Pay Stations; the Maintenance and Management of 820 Existing Single-Space Parking Meters; and a Park Smarter Mobile Payment Option in an Amount Not-to-Exceed $1,176,045; and (2) Receiving an Update on Setting a Parking Pricing Strategy for Ferry Terminals.
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section; 15301 (Existing Facilities) and15183 (Projects Consistent with a General Plan or Zoning). (Public Works 26541642) [Continued from September 17, 2024]
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City) actively manages its public parking and curb space to achieve City Council-adopted goals related to transportation management, climate change, environmental protection, traffic safety, and economic development. The City Council Strategic Plan, General Plan, Alameda Point Transportation Management Plan, Transportation Choices Plan, and Climate Action and Resiliency Plan (CARP) call for parking management to reduce traffic, reduce greenhouse gas emissions, ensure access to services and facilities, and support the vitality of the City’s two main street commercial areas.
To fulfill these goals, staff recommend the following actions:
1. Purchase 20 Solar Powered, MS3 Parking Pay Stations from IPS Group, Inc. (IPS) to improve how people pay for parking and to allow the City to better monitor the operability of the stations in existing and new paid parking areas.
2. Introduce IPS Park Smarter Mobile Payment option, which will significantly enhance parking services across the City, particularly in the downtown business districts, curbside, at parking lots, and at the ferry terminals.
3. Enter a new five-year Agreement with IPS for the ongoing maintenance of single space meters and new pay stations to ensure the reliable operability of paid parking equipment.
4. Begin paid parking at Seaplane Lagoon and Harbor Bay Ferry Terminals to help ensure available parking for ferry riders who need to drive, and to meet City goals related to mode shift and greenhouse gas emissions reduction.
BACKGROUND
The City is responsible for the management of on-street parking, curbside space, multiple public parking lots and the Civic Center Parking Garage. To optimize parking availability and utilization, the City employs paid parking systems, which currently include single space meters and pay stations, with pricing strategies to meet established goals.
Existing Pay Stations on Park Street
In 2013, 11 pay stations were installed downtown on Park Street between Central Avenue and San Jose Avenue. The Park Street pay stations offered a Pay-and-Display system, which required parkers to purchase a ticket from the machine and display it on their vehicles dashboard. The transaction took time as users were required to make round trips to their vehicle. The pay stations accepted coin and credit cards. The maintenance and revenue collection for these pay stations were handled by PCI, a parking operator contractor.
In 2020, the COVID pandemic reduced downtown visitation, leading to a significant drop in pay station revenue along Park Street. To reduce operational costs, the City decommissioned the 11 pay stations.
The 11 pay stations are now at the end of their useful life, are incompatible with the City's web-based Data Management System, and do not integrate with the automated license plate reader (ALPR) technology used by parking enforcement staff. As detailed later in this report, implementing a pay-by-plate system will optimize the use of ALPR digital chalking technology, which enables enforcement staff to verify payments directly from their vehicles. A pay-by-plate system also does not require a parker to return to their vehicle with proof of payment.
Existing Pay Stations at Civic Center Garage
In 2008, two (2) pay stations were installed on the ground floor of the six-story Civic Center Parking Garage. The current pay stations offer a Pay-by-Space system that requires users to remember their specific parking space number after they park their vehicle, which often leads to frustration and inconvenience. The pay stations accept coins, bills, and credit cards. The maintenance and revenue collection for both pay stations are handled by PCI, the garage’s operator.
While still functional, these stations are nearing the end of their serviceable life. They are also incompatible with the City's web-based Data Management System and do not integrate with Parking Enforcement’s current ALPR technology.
Existing Single-Space Meters throughout City
On June 16, 2014, City Council approved parking improvements for the Park Street and Webster Street shopping districts to make parking more readily available and achieve a parking occupancy rate of 85% or lower. One of the approved recommendations was to update parking equipment and pilot credit card enabled parking meters. Following a single-space “smart” parking meter trial, in 2015 City Council approved the procurement and operation of 820 IPS single-space “smart” parking meters. In 2015 and again in 2020, five-year term agreements were issued to IPS for the ongoing operation of the meters, which includes a web-based Data Management System for the live time monitoring of all meters. IPS was separately contracted to upgrade the security and cellular communication functionality of the single space meters. IPS’s existing agreement expires November 17, 2025.
Pricing Strategy for Ferry Terminal Parking
Ferry ridership has increased significantly since the pandemic. Based on five midweek parking occupancy counts in August 2024, the Harbor Bay lot averaged 97% full and Seaplane Lagoon 89% full. The busiest observed day demonstrated the need for a parking management as ridership grows: Harbor Bay had just one space available and Seaplane Lagoon was completely full, not including disability spaces.
The City’s Strategic Plan project number TIE17 is to, “Implement paid parking at ferry terminals,” in alignment with multiple City plans. In December 2022, the Transportation Commission endorsed the Alameda Ferry Terminal Parking Pricing Strategy. Since then, parking occupancy has risen significantly and Exhibit 1 includes the Alameda Ferry Terminal Parking Pricing Strategy with updates to background data and information only.
DISCUSSION
As part of ongoing efforts to enhance parking efficiency, improve parker experience and implement paid parking at ferry terminals, staff recommend the procurement of new pay stations that integrate with IPS’s web-based Data Management System, currently used for single space meters, and implementation of IPS’s Park Smarter Mobile Payment option. A summary of the steps needed for this integrated approach is as follows (greater detail of each of these steps is provided subsequently in the report):
1. Contract Changes. Terminate the current five-year agreement with IPS, which expires November 17, 2025, and execute a new five-year agreement with IPS for products and services outlined in this report.
2. New Pay Stations. Purchase 20 new solar-powered MS3 Pay Stations from IPS for the following locations:
|
Area Served |
Quantity |
|
Park Street |
11 |
|
Civic Center Garage |
2 |
|
Seaplane Lagoon Ferry Terminal |
2 |
|
Harbor Bay Ferry Terminal |
2 |
|
City Hall West |
2 |
|
Spare |
1 |
|
Total |
20 |
3. Park Smarter Mobile Payment Option. Introduce the IPS Park Smarter Mobile Payment option for all City-managed paid parking areas, which includes curbside meters, parking lots, and the Civic Center garage. This enhancement will be especially convenient for ferry riders, allowing them to catch their ferry and pay after boarding.
4. Parking Pricing Strategy for Ferry Terminals. Begin paid parking at Seaplane Lagoon and Harbor Bay Ferry Terminals with a $3/day rate. Work to ensure open parking spaces by modifying parking prices incrementally, no more than quarterly, based on how full the parking lot is after the last morning ferries. Alameda Municipal Code (AMC) authorizes the Public Works Director to adjust parking rates within the range specified in the AMC, with the goal of achieving parking availability targets.
New Pay Stations
Staff recommends purchasing 20 new solar powered MS3 pay stations from IPS. Pricing for the stations is based on OMNIA Partners contract 05-49 Integrated Parking Management System. OMNIA Partners is a cooperative purchasing agency who competitively solicits and publicly awards an assortment of contracts consistent with applicable procurement laws and regulations. Use of cooperative purchasing agreements is allowed in the City’s Purchasing Policy, with City Council’s approval for purchases more than $75,000.
The MS3 pay stations will ensure consistency with the City’s current single-space meters and allow staff to manage all paid parking through a unified web-based Data Management System. In addition, the pay stations will be configured to be pay-by-plate, which integrates with license plate reader technology enabling parking enforcement staff to verify payments directly from their vehicles. Pay-by-plate also means the parker does not have to return to their vehicle to place proof of payment on the dashboard. Lastly, the MS3 model pay stations allow for third-party integrations and features like the Coupon Smarter program which enables businesses to offer parking discount and validation codes to their patrons.
As is current practice in the City, and practice across agencies within our region, the credit card transaction and data management fees for the pay stations and single space meters are paid by the City from paid parking revenue.
Thirteen of the 20 new pay stations will replace existing pay stations at the Civic Center Parking Garage and on Park St. Four new pay stations will be deployed at Harbor Bay and Seaplane Lagoon Ferry Terminals and two at the parking lot behind City Hall West. This parking lot will be redone as part of the Adaptive Reuse Backbone Infrastructure Project and eventually become a paid parking lot.
Before existing pay stations are replaced or new stations deployed, staff will implement a public communications strategy for residents, businesses, and visitors that introduces the new pay stations and lets visitors know where payment is required. This plan will focus on highlighting the convenience, efficiency, and environmental benefits of pay-by-plate. Key components of the communication strategy include decals on all paid parking inventory, street, lot and garage signage, additions to the City’s website, and a social media campaign to provide information and address inquiries.
Staff will return later in the year with a competitively solicited contract for parking operator services at the Civic Center Garage and revenue collection at all newly installed pay stations.
Park Smarter Mobile Payment Option
The IPS Park Smarter mobile payment solution will significantly enhance parking services across the City, particularly in the downtown business districts, curbside, at parking lots, and at the ferry terminals. Park Smarter is an optional alternative to pay for parking from a smart phone instead of paying at the single space meter or pay station. There is no cost to the City to deploy this solution.
The Park Smarter app offers a convenient, contactless parking experience that integrates with IPS meters and pay stations. The app supports multiple payment methods, including credit and debit cards, and provides an easy account setup for users on both iOS and Android platforms. Key features include real-time notifications for parking expiration with the option to remotely extend sessions within posted time limits. Ferry riders will be able to make mobile payments as they catch the ferry.
For parkers who prefer not to download the Park Smarter app, a Text-To-Pay feature will also be offered. Text-To-Pay allows parkers to text a zone code or scan a posted QR code for payment. The same benefits of real-time notification alerts allow users to extend their parking session remotely within time limits.
The Park Smarter mobile payment option has a $0.35 transaction fee applied to each payment and time extension, in addition to the standard parking rate. For example, one hour of parking at $1.50 will total $1.85. This is a relatively standard fee across mobile platforms and is the fee included in IPS’ OMNIA Partners contract, which was competitively bid. While the City currently absorbs credit card transaction fees and data management fees at pay station and single space meters, staff recommends the Park Smarter transaction fee be passed to the parker. This is common practice in other Bay Area cities. Park Smarter is optional and offered only for convenience. A parker who does not want to pay the $0.35 transaction fee can pay at the single space meter or pay station, which do not have the transaction fee.
The Park Smarter mobile solution integrates with license plate reader technology enabling parking enforcement staff to verify payments directly from their vehicles. This will enhance the efficiency and accuracy of payment tracking.
As with the new pay stations, staff will implement a public communications strategy to introduce the new mobile payment option to residents, businesses, and visitors. This plan will highlight the convenience, efficiency, and environmental benefits of the mobile payment system. Key components will include decals on all paid parking inventory, updated street, lot, and garage signage, enhancements to the City’s website, and a targeted social media campaign to provide clear and comprehensive information. The $0.35 transaction fee will be clearly communicated as an additional cost on top of the paid parking time.
Parking Pricing Strategy for Ferry Terminals
The AMC authorizes the Public Works Director to adjust parking rates, within a range specified in the AMC, with the goal of achieving a parking occupancy target. Based on recent parking occupancy rates at Harbor Bay and Seaplane Lagoon, a baseline $3/day parking fee will be established. Parking occupancy at the Main Street ferry terminal is only 21% and therefore paid parking will not be established until occupancies reach 85% two quarters in a row.
The $3/day baseline rate at Alameda’s two commuter-oriented ferry terminals is on the low end of nearby transit lots with paid parking. It is designed to incentivize people to avoid driving alone to the ferry terminal, but without pushing them to avoid the ferry altogether. It is also designed so that getting to San Francisco by driving to the ferry is price-competitive with driving to BART, and less expensive than driving all the way to San Francisco.
Parking prices may be incrementally changed based on demand, at limited intervals and with advance notice. No more often than quarterly, parking rates may shift up by $1.00/day if the parking lot is 90% full after last morning ferry and may reduce by $1.00/day if the parking lot is 60% occupied or lower. Rate changes will be published at least two weeks before implementation. Shifting parking prices based on demand is an established best practice utilized by cities in the region and nationally. For instance, San Francisco began this practice in 2011, Berkeley in 2013, and Oakland in 2016.
Projected revenue from paid parking at Harbor Bay and Seaplane Lagoon, along with Harbor Bay Transportation Improvement Funds, is expected to support operations including security services. Due to public concerns about vehicle break-ins, staff will implement paid parking with security at both terminals as soon as the new pay stations are delivered and mobile payment solution configured. This is estimated for January 2025. Security services will also be provided at the Main St. ferry terminal although paid parking will not be implemented unless parking occupancy rises significantly.
For public outreach, the City has coordinated closely with WETA on the paid parking strategy and security services and will continue collaborating with WETA on a comprehensive public outreach campaign. This campaign will encompass on-board ferry communications, vehicle flyers, press releases, social media updates, and website announcements on both WETA and City platforms. The outreach will also introduce people to the mobile payment option, so they can download the app and be ready to use it on day one.
Staff will return later in the year with a competitively solicited contract for security services at the ferry terminal lots.
ALTERNATIVES
• Award the contract, as proposed.
• Direct staff to explore pay station and mobile payment solutions that are not integrated with the City’s IPS single space meters.
FINANCIAL IMPACT
The $180,155 for the one-time purchase and installation of 20 pay stations is appropriated in the Capital Improvement Program, Project 44000. Funding for the ongoing operational costs for the pay stations and single-space meters is appropriated in two divisions in the Parking Fund: On Street Parking and Civic Center Parking Garage. Revenue from paid parking supports ongoing operations.
The current agreement with IPS, which will terminate upon the effective date of this proposed agreement, has a five year not-to-exceed amount $927,837, encumbered annually to 26541642 (Parking-On Street). The table below reflects the annual not to exceed amounts and 5-year total of $1,176,045 in the proposed agreement included in Exhibit 2. Fiscal Year 2024-25 is prorated for 9 months of service for single space meters and 6 months for the pay stations (estimated January startup). There is no impact to the General Fund for the proposed IPS agreement.
|
Contract |
Costs |
Total |
|
|
One Time Capital |
Operations |
|
|
FY2024-25 |
$180,155 |
$144,742 |
$324,897 |
|
FY2025-26 |
-- |
$212,787 |
$212,787 |
|
FY2026-27 |
-- |
$212,787 |
$212,787 |
|
FY2027-28 |
-- |
$212,787 |
$212,787 |
|
FY2028-29 |
-- |
$212,787 |
$212,787 |
|
FIVE YEAR TOTAL |
|
|
$1,176,045 |
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Municipal Code
AMC 12-4.5b establishes a range of acceptable hourly meter rates for public off-street lots between $0.00 and $5.00. It authorizes the Public Works Director to adjust parking meter rates within this approved range consistent with the goal of achieving an eighty-five (85%) percent occupancy target. It also requires publishing parking rate changes at least two weeks in advance. AMC 12-4.4b sets the same rules for on-street parking meter zones.
AMC Chapter 8 contains parking prohibitions and Chapter 12 covers public parking regulations and use of the parking fund. California Vehicle Code section 22500 et seq. regulates stopping, standing, and parking of vehicles.
AMC 2-61.7 covers joint purchases of materials, supplies, equipment, vehicles, and other goods in collaboration with other public agencies, such as cities, counties, states, federal agencies, or joint powers authorities.
The City Council adopted the 2023-2026 City of Alameda Strategic Plan, which includes the following projects:
• Implement paid parking at ferry terminals (TIE17)
• Design and construct Civic Center Garage safety improvements (TIE18)
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section; 15301 (Existing Facilities) and15183 (Projects Consistent with a General Plan or Zoning).
CLIMATE IMPACT
Parking management plays an important role in reducing traffic congestion and greenhouse gas emissions from vehicles. Utilizing parking pricing, and time limits where appropriate, to open up parking spaces allows drivers to park quickly rather than continuing to drive while looking for parking. With on-street parking, achieving the 85% occupancy goal (approved by City Council in 2014, in the General Plan, and municipal code) means that every block has a couple of open parking spaces, so drivers can park where they need to. Reducing double-parking also helps buses run efficiently on commercial corridors, making it that much more viable for people to choose buses over driving.
Paid parking programs can also influence mode choice. Free parking provides a powerful incentive to drive; when parking is priced right and enforced for compliance, people are more likely to consider other modes of travel. Parking management also plays a key role in improving street sweeping effectiveness and litter control by providing the street sweepers better access to the curb line. Improved litter collection at the curb line ensures compliance with regulatory litter control programs and improves local flood control resiliency by keeping more litter out of the municipal storm drainage system.
RECOMMENDATION
Approve implementation of various parking efficiency and management actions, including: (1) authorizing the City Manager to execute a five-year Agreement with IPS Group, Inc., for the purchase, installation, maintenance and management of 20 New MS3 Parking Pay Stations; the maintenance and management of 820 existing single-space parking meters; and a Park Smarter mobile payment option in an amount not-to-exceed $1,176,045; and (2) receiving an update on a parking pricing strategy for ferry terminals.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Ricardo De La Torre, Parking Manager
Lisa Foster, Acting Transportation Planning Manager
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. Alameda Ferry Terminal Parking Pricing Strategy
2. IPS Agreement
cc: Allen Tai, Planning, Building, and Transportation Director