DATE:
October 15, 2024
TO:
Adam Politzer, Interim City Manager
FROM:
Chadrick Smalley, Community Development Director
SUBJECT:
Resolution Of The City Council Of The City Of Emeryville Authorizing The City Manager To Execute The Option To Extend The Professional Services Contract With IPS Group, Inc. For Fiscal Years 2025-2029 For A Total Amount Not To Exceed $780,309 For Continued Management Of Paid Parking In The North Hollis And Triangle Commercial Areas Recommendation
Staff recommends that the City Council approve the attached resolution authorizing the City Manager to execute a five year option to extend the existing contract with IPS Group, Inc. (“IPS”) for a total amount not to exceed $780,309 for Fiscal Years 2025-2029 for the continued management of paid parking in the North Hollis and Triangle commercial areas.
Background
On June 21, 2016, the City Council adopted the 2017-21 Capital Improvement Program (CIP), including the North Hollis Paid Parking and Transportation Demand Management Project. Subsequently, on April 27, 2017, the Alameda County Transportation Commission (ACTC) awarded funding in the amount of $930,000 to support the Project with $270,000 required in local matching funds. On February 19, 2019, the City Council adopted the framework for paid parking in the North Hollis and Triangle Pilot Areas and made findings regarding California Environmental Quality Act (CEQA) compliance. On February 4, 2020, the City Council authorized the execution of a contract with IPS for installation and management of the paid parking program. The contract includes an initial five-year term and provides five one-year options to extend the contract. The City Council’s authorization addressed the not-to-exceed contract amount for the initial term of $3,210,524, but did not specify amounts for the extension options. The contract is attached to this report as Attachment 1.
Paid parking enforcement was initiated in March 2021 after the capital project was completed, which included installation of meters, kiosks, signage and striping and enforcement vehicles and the procurement of automatic license plate readers.
Discussion
IPS has effectively managed the City’s paid parking program since March 2021. IPS has provided consistent service to the City, including maintenance and operation of revenue collection equipment, support of mobile payment options and automatic license plate readers, coin collection and citation processing. IPS has improved customer service by initiating a virtual residential parking permit system and “text to pay” service. IPS has also provided flexibility to the City by agreeing to reduced frequency in coin collection tasks, reducing the costs of the program.
The existing contract with IPS was for an initial five-year term with five one-year options to extend the contract term. Each year of annual services is subject to a contract limit that may, at IPS’s option, increase by the Consumer’s Price Index but not more than 3%. The prior annual expenses in Fiscal Year 2023-2024 amounted to $194,429. However, this reflects higher costs of coin collection than will be experienced going forward, due to the aforementioned reduction in coin collection costs. Adjusting for this change results in projected expenses of $142,694 in Fiscal Year 2024-2025, and including the 3% maximum allowed increase results in a contract limit of $146,975 for Fiscal Year 2024-2025. Authorizing the City Manager to enter into the five one-year options to extend the contract term now will allow for efficient payment and continued services from IPS.
Fiscal Impact
As noted above, the initial option for Fiscal Year 2024-2025 is expected to cost $146,975. Assuming the maximum allowed escalation of 3% annually results in a total cost of $780,309 from Fiscal year 2024/2025 to Fiscal Year 2028/2029, as detailed in the table below.
Fiscal Year
Increase (3% max.)
Annual Amount
2024-2025
$4,281
$146,975
2025-2026
$4,409
$151,384
2026-2027
$4,542
$155,925
2027-2028
$4,678
$160,603
2028-2029
$4,818
$165,421
TOTAL Extensions
$780,309
Fund 269 is budgeted to receive approximately $336,000 in revenue from meter payments and citations in Fiscal Year 2024-2025 and includes sufficient budget for the IPS contract costs. In addition to IPS contract costs, the fund also includes budgeted expenditures for staff costs, for total expenditures of $748,925 in the Fiscal Year 2024-2025 Operating Budget. Consequently, Fund 269 is budgeted to receive $413,000 from the General Capital fund to balance revenues and expenditures in Fiscal Year 2024-2025. This fund transfer represents the general fund contribution for the City staff that also provide parking services in connection with events and street sweeping as well as enforcement of parking regulations citywide.
Staff Communication with the Public
No communication with the public has been made regarding this item.
Conclusion
Staff requests that the City Council authorize the City Manager to execute the five one-year option to extend the contract term with IPS to l ensure ongoing management of the paid parking program.
PREPARED BY: Amber Evans, Community & Economic Development Coordinator II Approved and Forwarded to the
City Council of the City of Emeryville:
Adam Politzer, Interim City Manager
Attachments
Attachment 1: IPS Contract
Draft Resolution
IPS Contract Extension
| October 15, 2024
City of Emeryville
CALIFORNIA
MEMORANDUM