AGENDA REPORT
Meeting Date: October 20, 2026
Item Number:
To: Honorable Mayor & City Council
From: Daren Grilley, Assistant Director of Public Works/City Engineer Alison Wehrle, Senior Management Analyst
Subject: AMENDMENT NO. 6 TO THE AGREEMENT BETWEEN THE CITY OF BEVERLY HILLS AND I.P.S. GROUP, INC. FOR FLEXPAY SINGLESPACE PARKING METERS Attachments: 1. Amendment
RECOMMENDATION
Staff recommends that City Council approve Amendment No. 6 to the agreement with I.P.S. Group, Inc. to extend the contract term and change the fee structure for flexpay single-space parking meters and payment kiosks, including ongoing and as-needed maintenance and processing services.
INTRODUCTION
The City operates approximately 2,700 single-space on-street parking meters and 10 payment kiosks at the five Santa Monica Boulevard parking lots from I.P.S. Group, Inc.
The City is currently undergoing a meter mechanism upgrade and is taking the time to amend the service terms and per-transaction rates for the meters and pay stations to a tiered option that is more advantageous for the City based on transaction volumes.
DISCUSSION
On June 23, 2026, the City Council approved a meter upgrade project that will replace all parking meters in the City with the new M7 model, allowing for better data analysis and curb space usage. The upgraded meters will also offer contactless payment options via smart phone or watch.
BEVERL
HILLS
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Meeting Date: October 20, 2026
The new parking meter mechanisms will have a two-year warranty for basic maintenance and operation. This will cut down significantly on non-warranty repairs but the City may need to seek out occasional service or repairs that are not covered by warranty caused by vandalism or other damage.
As customers continue to trend away from coins in favor of using credit cards, text-to-pay, and mobile payment apps, the City recognizes that larger numbers of annual transactions will be subject to transaction fees through these payment options. The proposed agreement moves the City to an alternative fee structure offered by I.P.S. Group, Inc. that better reflects the growing share of credit card transactions at both on-street parking meters and the five Santa Monica Boulevard lots, reducing overall transaction fees. The new fee structure option will reduce the City’s transaction costs for regular credit card payments from $0.13 to $0.07 per transaction.
The City will also be moving to I.P.S. Group, Inc. for mobile payment options at the parking meters and kiosks, allowing for a fully integrated parking meter and kiosk system under one umbrella. City staff were notified by the parent company of the current mobile payment provider, Flowbird, that the brand will be sunsetting by December 2026. During the latter part of the installation process of the new meter mechanisms, the informational decals for the current mobile payment vendor will be replaced with decals for I.P.S. Group Inc.’s Park Smarter mobile payment app, and text-to-pay option that does not require the download of an app. The customer convenience fee will remain unchanged at $0.20. Even with the introduction of I.P.S. Group Inc.’s mobile payment options, this will reduce overall operating costs for the Parking Meter Division.
Public Works staff has been working with the Finance and Police Departments in order to prepare for the transition. The Police Department’s Parking Enforcement team will recognize mobile payments made on the current system even after the decals are removed as long as the brand is still operational. Several nearby jurisdictions offer I.P.S.
Group, Inc. mobile payment options, and staff expect a seamless transition.
FISCAL IMPACT
With the adoption of the new fee structure pictured below in Table 1, City staff anticipate no increase in the annual spending on single-space parking meter, multi-space parking kiosk, and mobile payment annual fees. Due to an estimated 2,100,000 annual singlespace meter credit card transactions, the significant cost decrease will offset any minor increases within the other categories. These calculations include the addition of an estimated 300,000 transactions through the new I.P.S. Group, Inc. mobile payment options. With the adoption of Amendment No. 6, the additional five-year projected spending totals $2,521,839.51 (see Exhibit B-3 of Attachment 1). This additional consideration amount is already included in the Parking Meter program budget over the five-year period. There is no additional appropriation request in order to meet this amended consideration amount.
Meeting Date: October 20, 2026
Table 1
Michael V. Hensley,
Interim Director of Public Works
Approved By
Fee Type Description Current Proposed
Single-Space Meter Transactions $ 0.13 $ 0.07
Monthly Transaction Fees Multi-Space Kiosk Transactions $ 0.06 $ 0.07 Single-Space Meter Monthly Fee $ 7.15 $ 9.70
Monthly Unit Fee Multi-Space Gateway/Data Fee $ 60.00 $ 62.00 Secure CC Gateway/Convenience
Fall ($0.20 paid by end user, $0.15
Mobile Payment Fees billed to City to start) NIA $ 0.35 Attachment 1
B0785-0001\3309221v7.doc
AMENDMENT NO. 6 TO THE AGREEMENT BETWEEN THE CITY
OF BEVERLY HILLS AND I.P.S. GROUP, INC. FOR FLEXPAY
SINGLE SPACE PARKING METERS
NAME OF CONTRACTOR: I.P.S. GROUP, INC.
RESPONSIBLE PRINCIPAL Chad P. Randall, CEO
OF CONTRACTOR:
CONTRACTOR'S ADDRESS: 7737 Kenamar Ct.
San Diego, CA 92121
CONTRACTOR’S E.I.N./TAX I.D. NO.: 23-3028164
CITY'S ADDRESS: City of Beverly Hills
345 Foothill Road
Beverly Hills, CA 90210
Attention: Director of Public Works
COMMENCEMENT DATE: June 1, 2008
TERMINATION DATE: June 30, 2013, unless extended pursuant to Section 2 of the Agreement (Original termination
date)
June 30, 2014, unless extended pursuant to
Section 2 of the Agreement (as extended pursuant
to Amendment No. 1)
June 30, 2020, unless extended pursuant to
Section 2 of the Agreement (as extended pursuant
to Amendment No. 2)
June 30, 2021 (as extended by letter, dated May
27, 2021)
June 30, 2022 (as extended by letter, dated April
13, 2021)
June 30, 2023 (as extended by letter, dated July
21, 2022)
June 30, 2025, unless extended pursuant to
Section 2 of the Agreement (as extended pursuant
to Amendment No. 5)
June 30, 2026 (as extended by letter, dated April
23, 2025)
June 30, 2027 (as extended by letter, dated March
23. 2026)
June 30, 2032, unless extended pursuant to
Section 2 of the Agreement (as extended pursuant
to this Amendment No. 6)
Docusign Envelope ID: 23B523C8-915D-8774-82F7-012A3936CDF3 2 B0785-0001\3309221v7.doc
CONSIDERATION: Original Agreement: Not to exceed $2,155,277 for the term of the Agreement, in one-time fees based
on the unit costs set forth in Exhibit B.
Not to exceed a CITY authorized purchase order
based on the calculated value per the Agreement
for credit card transaction fees, management
system fees, communications fees, other fees,
costs for supplies, and repairs and maintenance
(including warranty).
Total Not to Exceed: Amount set forth in CITY
authorized purchase orders.
Amendment No. 1: Not to exceed $1,860,000
based on the unit costs set forth in Exhibit B-1.
Amendment No. 2: Not to exceed $1,800,000 for
the term of the Agreement, based on the unit costs
set forth in Exhibit B.
Not to exceed $750,000 on an annual basis for
maintenance and operating fees.
Amendment No. 3: Not to exceed $2,155,277 for
the term of the Agreement, in one-time fees based
on the unit costs set forth in Exhibit B.
Not to exceed CITY authorized purchase orders
based on the calculated value per the Agreement
for credit card transaction fees, management
system fees, communications fees, other fees,
costs for supplies, and repairs and maintenance
(including warranty).
Total Not to Exceed: An amount set forth in CITY
authorized purchase orders.
Amendment No. 4: No additional consideration.
Amendment No. 5: Not to exceed CITY authorized
purchase orders based on the calculated value per
the Agreement for credit card transaction fees,
management system fees, communications fees,
other fees, costs for supplies, and repairs and
maintenance (including warranty).
Amendment No. 6: Not to exceed CITY authorized
purchase orders based on the calculated value per
the Agreement for credit card transaction fees,
management system fees, communications fees,
other fees, costs for supplies, and repairs and
maintenance (including warranty).
Total Not to Exceed: $15,362,792.75 (Total
includes the Original Agreement through
Amendment Nos. 1 through 6) and more
particularly described in Exhibits B, B-1, B-2, and
B-3.
Docusign Envelope ID: 23B523C8-915D-8774-82F7-012A3936CDF3 3 B0785-0001\3309221v7.doc
AMENDMENT NO. 6 TO THE AGREEMENT BETWEEN THE CITY
OF BEVERLY HILLS AND I.P.S. GROUP, INC. TO PROVIDE
FLEXPAY SINGLE-SPACE PARKING METERS
This Amendment No. 6 is to that certain Agreement between the City of Beverly Hills (hereinafter called "CITY"), and I.P.S. Group, Inc. (hereinafter called "CONTRACTOR") dated May 30, 2008 and identified as Contract No. 171-08, as amended by Amendment No. 1, dated February 17, 2009, and identified as Contract No. 63-09, and as amended by Amendment No. 2, dated February 17, 2015, and identified as Contract No. 58-15, and as amended by Amendment No. 3, dated December 18, 2018 and identified as Contract No. 769-18, and as amended by Amendment No. 4, dated February 8, 2022 and identified as Contract No. 107-22, and as amended by Amendment No. 5, dated August 2, 2022 and identified as Contract No. 500- 22 (collectively the “Agreement”).
RECITALS
A. CITY and CONTRACTOR entered into an Agreement for Flexpay singlespace parking meters, which was previously amended.
B. CITY and CONTRACTOR desire to further amend the Agreement to modify the fee structure, increase thee Consideration and extend the Termination Date.
NOW, THEREFORE, the parties agree as follows:
Section 1. The TERMINATION DATE shall be amended as set forth on the cover page.
Section 2. The CONSIDERATION shall be amended as set forth on the cover page.
Docusign Envelope ID: 23B523C8-915D-8774-82F7-012A3936CDF3 4 B0785-0001\3309221v7.doc
Section 3. Exhibit B-3, “Compensation Chart” shall be amended and retitled as “Fee Schedule”, as attached hereto and incorporated herein.
Section 4. Except as amended by this Amendment and previous amendments, if any, the remaining provisions of this Agreement shall remain in full force and effect.
EXECUTED the _____ day of __________________, 20___, at Beverly Hills, California.
CITY OF BEVERLY HILLS
A Municipal Corporation
__________________________________
CRAIG A. CORMAN
Mayor
ATTEST:
_________________________(SEAL)
HUMA AHMED
City Clerk
CONTRACTOR: I.P.S. Group, Inc.
___________________________________
CHAD P. RANDALL
Chief Executive Officer
___________________________________
NAREN GOEL
Chief Financial Officer
APPROVED AS TO FORM:
____________________________
LAURENCE S. WIENER
City Attorney
[Signatures continue]
Docusign Envelope ID: 23B523C8-915D-8774-82F7-012A3936CDF3 Ce.P 2
5 B0785-0001\3309221v7.doc
APPROVED AS TO CONTENT:
___________________________________
MICHAEL V. HENSLEY
Interim Director of Public Works
___________________________________
NAREK KATABYAN
Risk Manager
___________________________________
ANTHONY RODSTEIN
Purchasing Services Manager
Docusign Envelope ID: 23B523C8-915D-8774-82F7-012A3936CDF3 6 B0785-0001\3309221v7.doc
EXHIBIT B-3
FEE SCHEDULE
CITY shall compensate CONSULTANT for the satisfactory performance of the work described in this AGREEMENT in an amount not to exceed Fifteen Million, Three Hundred Sixty-Two Thousand, Seven Hundred Ninety-Two Dollars and Seventy-Five Cents ($15,362,792.75) for ongoing fees for meter management and software, credit card processing, and mobile payment services.
Monthly Transaction Fees, Monthly Device Fees, and Mobile Payment Fees:
Single-Space Meter Transactions $0.07
Multi-Space Kiosk Transactions $0.07
Single-Space Meter Monthly Fee $9.70
Multi-Space Gateway/Data Fee $62.00
Mobile Payment Fees
Secure CC Gateway/Convenience
Fee ($0.20 paid by end user,
$0.15 billed to City to start) $0.35
Monthly Transaction
Fees
Monthly Unit Fee
Transaction & Device Fees
Docusign Envelope ID: 23B523C8-915D-8774-82F7-012A3936CDF3 EXHIBIT B-3
COMPENSATION CHART - ORIGINAL AGREEMENT THROUGH AMENDMENT NO. 6 Fiscal Year Consideration One-Time Fee Notes
08/09
09/10
10/11
11/12
12/13
13/14
14/15
15/16
16/17
17/18
18/19
19/20
20/21
21/22
22/23
23/24
24/25
25/26
26/27
27/28
28/29
29/30
30/31
31/32
Total
1,860,000.00
750,000.00
750,000.00
750,000.00
750,000.00
750,000.00
848,621.00
569, 603.10
528,308.00
562,607.18
491,689.72
532,017.41
506,103.51
527,204.61
509,521.71
475,000.00
489,250.00
503,927.50
519,045.33
534,616.68
13,207,515.75
Original & Amendment 1- first 5years
Year2
Year3
Year4
Year 5
1,800,000.00 Amendment 2
355,277.00 Amendment 3
Pursuant to PO
Pursuant to PO
Pursuant to PO
Amendment 5
Amendment6
2,155,277.00
Total Consideration for Amendment 6 15,362,792.75
Certificate Of Completion
Envelope Id: 23B523C8-915D-8774-82F7-012A3936CDF3 Status: Sent Subject: Complete with Docusign: CLEAN Attachment 1 - Amendment 6 - IPS Group, Inc. (2).pdf Source Envelope:
Document Pages: 6 Signatures: 5 Envelope Originator:
Certificate Pages: 3 Initials: 0 Cole Duffy
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.177
Record Tracking
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10/14/2026 4:23:46 PM
Holder: Cole Duffy
[email protected]
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Chad P. Randall
[email protected]
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Naren Goel.
[email protected]
CFO
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Narek Katabyan
[email protected]
Risk Manager
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Michael V. Hensley
[email protected]
Deputy Director of Public Works-Operations
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Anthony Rodstein
[email protected]
Purchasing Services Manager
City of Beverly Hills (Finance Department)
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Craig A. Corman
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