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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Agreement with T2 Systems Canada, Inc. for the Operation and Maintenance of Digital Multi-Space Parking Meters.
1. Resolution dispensing with competitive bidding and authorizing the City Manager or his designee to extend an existing agreement with T2 Systems Canada, Inc. for a term of five years in the not-to-exceed amount of $784,750 for continued uninterrupted system operation and maintenance of digital multi-space parking meters.
COUNCIL ACTION
Item Type: Action Item
Approved for October 21, 2025 calendar
EXECUTIVE SUMMARY
T2 Systems Canada, Inc. is responsible for the maintenance and operation of 73 digital multi-space parking meters in the downtown and Glendale Community College areas.
Services include operational support for the Digital IRIS software and maintenance of all parking meter components.
The intent of this item is for the City Council to dispense with competitive bidding and approve an extension to the existing agreement with T2 Systems Canada, Inc. (T2) for a total amount not-to-exceed $784,750.
RECOMMENDATION
Adopt the resolution dispensing with competitive bidding and authorize the City Manager to execute an extension to the existing agreement with T2 for a total five-year term in the amount not-to-exceed $784,750 for continued uninterrupted system operation and maintenance of digital multi-space parking meters.
ANALYSIS
In March 2008, the City strategically invested in modernizing its on-street and off-street parking infrastructure, guided by the Mobility Study and stakeholder input from the downtown business community. In alignment with these priorities, the City issued a Request for Proposals (RFP) for the acquisition of digital multi-space parking meters. T2 (formerly Digital Payment Technologies) was selected based on its ability to deliver a 22 25-88734
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comprehensive meter solution tailored to meet the City's parking needs. On July 22, 2008, the City Council authorized an agreement with T2 for the initial deployment of digital multi- space meters on Brand Boulevard and downtown parking lots. This action paved the foundation for a long-term technology partnership and enhanced customer parking experience.
On July 16, 2013, the City Council adopted a resolution to dispense with competitive bidding and awarded an agreement to T2 for continued system operation, maintenance, and meter expansion. This approach ensured consistency in hardware and software platforms throughout the city, reduced integration costs, and enhanced the City's parking meter investment. To maintain system integrity and performance, the City Council approved an additional $340,000 on August 23, 2016, for the phased replacement of the aging Luke I pay stations with upgraded Luke II units, completed in 2018.
On June 9, 2020, the City Council gave its approval to dispense with competitive bidding and entered into a five-year agreement with T2 totaling $1,282,000, with the option of purchasing up to 25 Luke II digital multi-space parking meters to modernize the parking meter program in Montrose. Due to the Covid-19 pandemic and its effects on the parking program overall, this modernization effort was placed on hold until parking utilization returned to pre-pandemic levels.
The Luke II meters require maintenance and technical support to ensure optimal functionality. These services include real-time credit card processing, Payment Card Industry (PCI) compliance, remote diagnostics, and audit capabilities, all supported through T2’s Digital IRIS platform. As the original manufacturer of the meters, T2 is the sole provider capable of delivering the critical parts and specialized services necessary to maintain and support the system. Its offer also includes an extended warranty for replacement parts, which further protects the City’s investment and reduces long-term maintenance costs. The ongoing costs associated with software upgrades, system alerts, and technical support are essential for maintaining high service levels and ensuring continued regulatory compliance.
The Luke II meters are not yet at the end of their life and continue to function effectively with ongoing support and maintenance. Transitioning to a different vendor at this time would require a full system replacement, resulting in significant additional costs and operational disruption. Extending the current contract allows the City to maximize the value of its existing investment by continuing to utilize the current infrastructure while maintaining service quality.
The 73 Luke II meters generated approximately $2.2 million in revenue over the past year, reflecting strong overall usage of the parking program; however, some meters in specific locations are still underperforming. With the successful rollout of PayByPhone, customer payment habits are also shifting from physical meters to mobile transactions. In response, staff is actively evaluating both underperforming meters and evolving payment trends to further optimize the program and reduce reliance on Luke II meters where feasible. The contract with T2 is structured to support this transition as, once a meter is 23 25-88734
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decommissioned, the associated monthly and annual fees are no longer billed to the City.
This structure supports a cost-effective transition strategy, allowing the City to gradually reduce meter infrastructure in advance of a future system replacement, which will be pursued through a competitive RFP process when appropriate.
T2 has agreed to extend its current discounted pricing for an additional five-year term with no increase, resulting in savings for the City. Furthermore, the annual contract cost has been reduced from $206,400 to $156,950, reflecting the cancellation of planned expansion into Montrose due to the Covid-19 pandemic. This extension represents the most advantageous option, providing budget certainty while ensuring uninterrupted access to high-quality services.
Table 1
Description Amount
Maintenance and Operation Costs FY 2025-26 (73 Meters)* $156,950 Maintenance and Operation Costs (additional 4 years) $627,800 Total $784,750
*Represents $2,150 annually per unit for 73 multi-space parking meters.
Over the past 17 years, T2 has demonstrated reliable performance and service as a technology partner. The City's long-term partnership with T2 has proven to be a sound strategic investment as the digital multi-space meters are user friendly, straightforward to maintain, cost effective, and reliable. As the City engages in future parking management strategies, continued collaboration with T2 supports both fiscal responsibility and customer service excellence.
STAKEHOLDERS/OUTREACH
None.
FISCAL IMPACT
The extension of the Professional Services Agreement with T2, to maintain and operate digital multi-space parking meters, will cost a total of $784,750 for five years. The cost for year one of the agreement, $156,950, was approved as a part of the FY 2025-26 budget. No new appropriation is being requested at this time.
Existing Appropriation
Amount Account String Funding Source
$156,950 43110-1010-PWD-7518-P0000 General Fund
ENVIRONMENTAL REVIEW (CEQA/NEPA)
The action being considered does not constitute a “project” within the meaning of CEQA pursuant to CEQA Guidelines sections 15378(b)(2), as it constitutes continuing administrative or maintenance activity. Even if it is a “project,” the action is categorically 24 25-88734
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exempt from CEQA pursuant to CEQA Guidelines section 15301 in that it consists of the operation, repair, maintenance, or minor alteration of existing public facilities, mechanical, or topographical features, including existing streets and sidewalks; and, in any event, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment; thus, it is exempt from CEQA pursuant to CEQA Guidelines section 15061(b)(3).
CAMPAIGN DISCLOSURE
The names and business addresses of the members of the board of directors, the chairperson, CEO, COO, CFO, Subcontractors and any person or entity with more than 10% interest in the company proposed for contract in this Agenda Item Report are attached in Exhibit #, in accordance with the City Campaign Finance Ordinance No. 5744.
ALTERNATIVES TO STAFF RECOMMENDATION
The City Council may reject the resolution to dispense with competitive bidding and not award an extension to T2 Systems Canada, Inc. which may disrupt key parking meter operations.
ADMINISTRATIVE ACTION
Submitted by:
Daniel Hernandez, Director of Public Works
Prepared by:
Tad Dombroski, Parking Manager
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1: Campaign Disclosure Form