Title
Recommendation to Award a Contract in the Amount of $567,000, Including Contingencies, to IPS Group, Inc. for the Purchase, Installation, and Operation of 822 Single-Space "Smart" Parking Meters and Authorize the City Manager to Execute any Necessary Documents. (Public Works 224)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Award a Contract in the Amount of $567,000, Including Contingencies, to IPS Group, Inc. for the Purchase, Installation, and Operation of 822 Single-Space "Smart" Parking Meters and Authorize the City Manager to Execute any Necessary Documents
BACKGROUND
On June 16, 2014, the City Council approved a three-month trial of single-space, credit card enabled "smart" parking meters on Park Street and Webster Street. A public survey in 2014 with responses from more than 800 Alamedans demonstrated that the public much preferred single-spaced, credit card enabled meters over the parking kiosks. Single-spaced, networked meters accept coins and credit cards, are less expensive than kiosks, and alert staff of both malfunctions and the need for coin collection. These meters also offer large, interactive, and easy-to-read LED screens.
On October 6, 2014, the three-month trial began with IPS Group, Inc. (IPS), the provider of the vast majority of smart meters in North America. Forty-one solar-powered meters were installed on Webster Street between Haight Avenue and Santa Clara Avenue, and Park Street between Santa Clara Avenue and Central Avenue. Installation requires replacing the current meter head at each space, utilizing the same meter pole and housing.
DISCUSSION
To evaluate the trial, staff surveyed the public and collected input from City departments and local business associations. The survey was distributed by press release, the web, print (posters and fliers), and directly to members of West Alameda Business Association (WABA) and the Park Street Business Association (PSBA).
From 104 survey responses, 75 rated their experience with the meters as satisfied or very satisfied, consistent with the 2014 Alameda survey showing the ability to use a credit card along with coins as a significant improvement in customer convenience. Some users under 5' 5" said it was difficult to view the LED screen given the height of the meter and the tilt upward. In order to address this concern, staff plans to lower the height of the meter poles in the trial area to ensure the screen is between 42 and 48 inches, an approach consistent with Sacramento and San Francisco, who faced similar concerns. If this approach is successful in improving the user experience, staff may lower the height of the poles citywide, which would delay installation of the meters to ensure more Alamedans positively experience the meters.
Staff solicited input from the Alameda Police Department and staff at other cities who employed these meters, including Berkeley, Walnut Creek, San Francisco, Sacramento, and San Jose. All shared positive reviews.
WABA and PSBA's board of directors recommended purchase of the smart parking meters.
The 41 meters in the trial handled 26,637 transactions with no reported failures. Of those transactions, 17% were by credit card and 36% of the revenue derived from credit cards. Per-transaction credit card revenue was greater than with coins, as credit card users typically purchased more time. In the City of Berkeley, which has had smart parking meters since 2010, credit cards now account for one-half of meter revenue.
Based on the trial's results, staff recommends installing IPS smart meters at all of the City's 822 single-space meters.
The Alameda Municipal Code, Subsection 2-61-7, Joint Purchases with Public Agencies, provides authority for the City to use another government agency's competitive bidding process to purchase materials, supplies, equipment, vehicles, and apparatus, "provided the purchase is the result of competitive bidding or proposal, and is made in compliance with the competitive bid or proposal requirements of any participating agency or organization in a manner that is consistent with law." To obtain the best possible pricing, staff proposes entering a cooperative purchase agreement with IPS based on its contract with the City of Sacramento. Through this cooperative purchase, Alameda benefits from the volume discount afforded to Sacramento, even though Alameda is only purchasing 822 meter heads versus Sacramento's 6,000 meters. Sacramento's public procurement process was extensive and produced a lower per-unit meter cost than other recent regional purchases.
The contract allows for an annual extension of the contract on a year-to-year basis, for up to four additional years, based on mutual agreement and satisfactory performance of all aspects of the contract. If extended, the contract would be for the same terms, and contract prices would be adjusted in accordance with the construction cost index reported in the Engineering News Record for the San Francisco Bay Area. The contract also allows for the City to continue using IPS as sole source for spare parts and on-going monthly meter fees.
FINANCIAL IMPACT
With approximately $3 Million in fund balance and $3 Million in annual revenues, the City's Parking Meter Fund can fund the purchase and on-going operation of the meters. The per-meter head replacement and installation cost is $435. The estimated yearly operations cost per meter is $121, including the fees for wireless access, credit card transaction fees, and the City's access to a cloud-based interface by which each meter's data is accessed.
Funds in the amount of $567,000 will be allocated from the City's Parking Meter Fund (Fund 224) to the Parking Meter Program (0224) for the capital and first year operational expense to purchase, install, and operate the "smart" parking meters.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Cooperative purchase agreements are authorized by Alameda Municipal Code section 2-61.7, "Joint Purchases with Public Agencies."
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).
RECOMMENDATION
Award a contract in the amount of $567,000, including contingencies, to IPS Group, Inc. for the purchase, installation, and operation of 822 single-space "smart" parking meters and authorize the City Manager to execute any necessary documents.
Respectfully submitted,
Robert G. Haun, Public Works Director
By,
Liam Garland, Administrative Services Manager
Financial Impact section reviewed,
Juelle Ann Boyer, Interim Finance Director
Exhibit:
1. Contract