STAFF REPORT
Meeting Date:
May 12, 2026
CONSENT
13 SUBJECT: THIRD AMENDMENT TO AGREEMENT BETWEEN THE CITY OF LAGUNA BEACH AND FROGPARKING, INC. FOR SMART PARKING GUIDANCE
RECOMMENDATION: It is recommended that the City Council:
1. Authorize the City Manager to execute the Third Amendment to the Agreement with Frogparking, Inc. for parking services, in a form approved by the City Attorney, to extend the agreement until October 2, 2026 for an amount not to exceed $47,040; and
2. Find the action is not a project within the meaning of the California Environmental Quality Act under Public Resources Code Section 21065.
SUMMARY OF THE MATTER
The City of Laguna Beach is currently conducting a Request for Proposals (“RFP”) process for new mobile parking software and hardware services. To ensure uninterrupted parking operations while the City completes the RFP process and transitions to a new vendor, staff recommends extending the existing agreement with Frogparking, Inc. (“Frog”) through October 2, 2026.
The proposed Third Amendment would authorize continued mobile parking and smart parking guidance services for an amount not to exceed $47,040, or $7,840 per month. The extension would allow the City to maintain continuity of parking operations during the peak summer season while staff completes vendor evaluation, contract award, and implementation of a new parking services platform.
The amendment also clarifies the handling of the 2.6% transaction convenience fee collected through the parking payment system and remitted to Frog’s authorized payment processing subcontractor, Windcave.
DISCUSSION
On April 25, 2019, the City of Laguna Beach entered into a five-year software and hardware agreement with Frog for mobile parking services (the “Agreement”). The first year of the Agreement included a onetime hardware cost in the amount of $1,101,846.79, a one-time set up cost in the amount of $17,550, and a subscription cost of $87,913.81. Thereafter, the remaining four years of the term included a subscription cost in the amount of $104,967.80. On April 22, 2024, the City and Frog amended the Agreement to extend the term of the Agreement for one (1) additional year through April 2, 2025 for the subscription cost in the amount of $95,000 (the “First Amendment”). On March 11, 2025, the City and Frog amended the agreement for a second time to extend the term of the Agreement for one (1) additional year through April 2, 2026 for the subscription cost in the amount of $95,814.47 (the “Second Amendment”). Now, the City and Frog desire to amend the agreement a third time to extend the term of the Agreement for six months or until October 2, 2026 for the subscription cost of $7,840 per month for a total amount not to exceed $47,040 (the “Third Amendment”). The Third Amendment will provide the City with additional time to complete its THIRD AMENDMENT TO AGREEMENT BETWEEN CITY AND FROGPARKING, INC. FOR
SMART PARKING GUIDANCE
May 12, 2026
request for proposals for mobile parking services and award a new contract. The responses to the RFP closes on May 8, 2026. While City staff expects to be able to award a new contract by the June 9, 2026 City Council meeting, City staff recommends implementing the new contract or delaying the effective date until after the summer season or by October 2, 2026 (when the Frog Agreement will automatically terminate if the Third Amendment is approved). If the City is able to secure the services of another vendor at an earlier date, the City can terminate the Agreement with Frog and need only pay the prorated services provided from the date notice of termination was provided to Frog. (See Agreement, Paragraph 4.6.) As part of this Third Amendment, the City and Frog put in a term that recognizes that a subcontractor of Frog, Windcave, charges a 2.6% convenience fee on each user transaction. Since the City collects the entire transaction fee, including the convenience fee, a term was added to the Third Agreement that provides that upon presentation of an invoice, in a form deemed acceptable to the City, City will remit payment of the convenience fee for each identified and verified transaction to Windcave.
FINANCIAL ANALYSIS
The Third Amendment proposes six additional months of mobile parking subscription services at $7,840 per month for a total amount of $47,040. Funding for this project is in the FY 2025-26 and FY 2026-27 budgets.
ENVIRONMENTAL ANALYSIS
The recommended action consists of organizational or administrative activities of the City that will not result in a direct or indirect physical change in the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; 14 CCR Section 15378(b)(5).) Here, the recommended action allows the City to maintain the status quo and consists of extending an existing contract with an existing service provider.
ATTACHMENTS
1. Third Amendment (Pgs. 3-5)
2. Agreement (Pgs. 6-24)
3. First Amendment (Pgs. 25-30)
4. Second Amendment (Pgs. 31-34)
Submitted By: Alexis Braun Approved: .David A Kiff
Alexis Braun, Acting Director of
Transit and Community Services
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Carol Jacobs, Management Specialist Jane Abzug, Assistant City Attorney Alexis Braun, Acting Director of Transit and
Community Services