STAFF REPORT
Meeting Date:
July 7, 2026
CONSENT
11 SUBJECT: AWARD OF CONTRACT FOR MOBILE PARKING PAYMENT SYSTEM TO IPS GROUP, INC. AND RELATED ACTIONS
RECOMMENDATION: It is recommended that the City Council:
1. Award a contract to IPS Group, Inc. to provide the City with a new mobile parking payment system (MPPS) for a five-year term, including parking meter device and repair services, in an amount not to exceed $2,000,000 and authorize the City Manager or his designee to execute the agreement, in a form approved by the City Attorney;
2. Cancel IPS Agreement Contract No. 24-35 for parking meter device and repair services;
3. Authorize the City Manager to execute the fourth amendment with Frog Parking, Inc., in a form approved by the City Attorney, to identify transaction cost in the amount of $0.25 per transaction in an amount estimated as $11,000.00 per month for six months from May 2026 through October 31, 2026; and
4. Find the action exempt under the California Environmental Quality Act under CEQA Guidelines Section 15061(b)(3).
SUMMARY OF THE MATTER
As part of the City’s Parking Management Plan (PMP), the City operates a mobile parking payment system, which collects electronic parking fees at the City’s parking lots and on street parking locations with both pay stations and parking meters. The mobile parking system operates through the Laguna Beach Parking App owned by the City. The current system was implemented in 2019, and it has been six years since the City has gone out to bid for a mobile parking system. Parking technology has changed significantly over those years, and an updated mobile parking system will enhance customer experience, provide additional revenue for the City, reduce vendor costs, provide enhanced technology, and provide more effective integration with software currently used by the Police Department for parking citations. The City issued a Request for Proposal (RFP) for a new vendor and based on the proposals staff is recommending the City Council award of the contract to IPS Group, Inc. (IPS).
Based on the existing contract with IPS for parking meter operations and transaction processing, it is recommended to combine contract no. 24-35 into a new agreement to reflect new terms. In addition, due to the expiration of the contract with the current mobile parking payment system, Frog Parking, Inc. staff is requesting an amendment to the contract to include both the monthly fee and the per transaction fee during the IPS implementation process.
DISCUSSION
AWARD OF CONTRACT FOR MOBILE PARKING PAYMENT SYSTEM TO IPS GROUP, INC.
July 7, 2026
The Mobile Parking Payment System (MPPS) is key to managing the City’s parking inventory. The MPPS provides the customer with payment options that include voice, website, SMS/texting, Apple and Google Pay and are compatible with iOS and Android operating systems. The system works with the City’s zone system, allows a number of license plates to be registered to one account, pay as a guest without downloading the app, provide customer messaging and identify parking availability, purchase of additional time, may in the future integrate with the Police Department License Plate Reader (LPR) technology, provide overall support for the system, and ensure the City is receiving the revenue it is due.
The City hired Dixon Resources Unlimited (Dixon) for parking consultancy services to provide staff with expert assistance with parking technologies to move forward with the project. A team of City staff worked with Dixon to ensure that the City receives the most integrated, cost-effective payment system available.
The City issued the Mobile Parking RFP on March 31, 2026, and received seven responses on May 8, 2026.
The bidders are identified below:
Bidder Location Responsive Bid
Arrive/ParkMobile, LLC Atlanta, GA Yes
Frogparking Irvine, CA Yes
FSH Technologies Philadelphia, PA No
IPS Group, Inc. San Diego, CA Yes
Passport Labs, Inc. Charlotte, NC Yes
PGS Unknown No
ZipBy Pompano Beach, FL No
Staff evaluated each of the proposals based on responsiveness, quality of the scope of services, applicability of references and experience and technical solutions. After the first review, staff then requested four vendors to participate in interviews with both Dixon and the City including staff from the Transit and Community Services Department and Police Department. Staff interviewed four firms and based on the responsiveness of the proposals and interviews conducted, staff recommend IPS Group, Inc. (IPS). Attachment 1 is the proposed professional services agreement with IPS for these services.
IPS Group Inc.
Qualifications
IPS has been in business for more than 25 years, specializing in innovative technology, proven operational processes, and a high level of customer service. The company currently serves over 400 municipal, state, higher education, and private-sector clients. IPS is headquartered in San Diego, California, with notable local clients including the cities of San Diego, Santa Monica, Del Mar, and Pismo Beach.
The City of Laguna Beach has worked with IPS since 2013 for the management of parking meters and pay stations and most recently with Shopper’s Parking Permit payment portal. To date, the City has been very satisfied with its partnership with IPS, particularly with the company’s responsiveness to both parking system users and City staff. With the addition of a mobile parking payment system, the City will benefit from a more fully integrated parking management solution.
Mobile Parking Payment System Service
AWARD OF CONTRACT FOR MOBILE PARKING PAYMENT SYSTEM TO IPS GROUP, INC.
July 7, 2026
There will be a number of enhancements to the parking program including: multiple languages within the app, text to pay, more effective integration with police license plate readers, an intuitive customer experience including where to park, confirmation customer has entered the correct zone, high level of security and compliance with compliant payment processing, marketing (social media, website graphics, AWARD OF CONTRACT FOR MOBILE PARKING PAYMENT SYSTEM TO IPS GROUP, INC.
July 7, 2026
targeted outreach, material development) and changing of signage with City branding. (Attachment 1.) IPS will charge end users a transaction fee to end-user in an amount not to exceed $0.35 per transaction and a merchant processing fee to the end user in an amount not to exceed $0.15 per transaction. Consultant shall remit the entirety of the parking fees to the City. Consultant shall retain the transaction fee and merchant processing fee as compensation. This change in payment structure (i.e., charging the user directly) will result in savings of approximately $250,000 per year. IPS will also provide the City at no additional cost additional services, such as IPS Elevate which will assist the City with understanding parking patterns. The cost of this additional service is usually $260,000 but the City will be getting it at no cost.
Should the City Council award the contract to IPS the transition is expected to take 13 weeks to implement, conduct public outreach, and fully launch the program.
Parking Meter Device and Repair Services
In May of 2024, the City Council approved a five-year agreement with IPS for Parking Meter Operations and Transaction Processing. The contract term is from July 1, 2024, though June 30, 2029 in an amount not to exceed $1,490,000. The purpose of this agreement is to continue to provide maintenance, replacement parts, and data management for parking meters. From July 1, 2024, to June 30, 2026, the City expended approximately $500,000 on the services.
Based upon a review of the 2024 agreement with IPS and the new software agreement with IPS, discussed above, City staff has identified the ability to remove the following services from the parking meter contract with IPS: (1) single space ongoing fees (secure wireless gateway/ data fee and meter management system software license fee (per meter per month); (2) secure credit card gateway fee (per transaction); (3) multispace ongoing costs (secure wireless gateway/data fee and meter management system software license fee (per meter per month); and (4) PARK SMARTER mobile payment decals. These changes will reduce the cost of the parking meter agreement. IPS also provided a new quote for device and repair services that will reduce costs to the City. IPS offered and City staff agreed to combine the relevant parking meter agreement provisions in the new agreement with IPS. The relevant parking meter agreement provisions that are being combined in the new agreement with IPS are as follows:
• 2026 Customer Price List including cost for additional pay stations should the City request them • Single space parking meter buy back (up to 1,000 meters) provides a credit of $100 for each meter the City returns to IPS for an upgrade for a total of $100,000 over the term of the contract. • 2-year extended warranty for future pay stations valued at $79,000.
City staff proposes for the do not exceed amount for the meter and repair services not to exceed $500,000.
Under the new agreement, the City would combine both the parking meter operations and the new Mobile Parking Payment System into one contract. The previous parking meter contract will be terminated.
Frog Parking
The City Council considered the third amendment to the agreement with Frog Parking in April to ensure a smooth transition in services while the City integrates services with its new vendor. The third amendment extended the term of the agreement through October 2026 and the monthly fee from Frog in the amount of $7,850 per month. City staff is bringing forward a fourth amendment to the City Council at this time to also memorialize the $0.25 transaction fee that Frog charges the City. Based on the number of transactions in AWARD OF CONTRACT FOR MOBILE PARKING PAYMENT SYSTEM TO IPS GROUP, INC.
July 7, 2026
FY 2024-25, it is estimated that the transactions for the next 6 months are approximately 65,500 (or $11,000 per month). City staff has prepared the fourth amendment with Frog to address that the six month period from April to October will cost the City $18,850 per month ($7,850 + $11,000(approx.)) in a total amount not to exceed $113,100.
FINANCIAL ANALYSIS
As part of this contract, the City will not incur operating costs for the mobile payment portion of the parking program. In the past, the City paid the merchant and processing fees along with rental costs from the City’s parking revenue. The new contract includes a transaction fee of $0.50 on each transaction. This includes $0.35 for credit card gateway fees and $0.15 for merchant processing which is paid for by the customer.
The full parking fee will be remitted to the City. The $.50 transaction fee will be collected by IPS and is their payment for services rendered. The City will keep all of the parking revenue, which has not been the case in the past. The City will continue to utilize IPS for all replacement parts for the parking meters and IPS pay stations.
It is estimated that the annual cost of the contract is $400,000, which includes purchase of 10 pay stations annually for approximately $100,000 and repairs and maintenance of $300,000.
ENVIRONMENTAL ANALYSIS
The proposed action are not subject to the California Environmental Quality Act (CEQA) pursuant to State CEQA Guideline, as it is not a “project” and has no potential to result in a direct or reasonable foreseeable indirect physical change to the environment (14 Cal Code Regs. § 15061(b)(3).). Instead, the proposed actions are administrative in nature, given that they merely authorize the City Manager to the execute an agreement that implements a new mobile parking system and allows repairs and upgrades to parking systems.
ATTACHMENTS
1. Professional Services Agreement, IPS Group, Inc. (Pgs. 5-51)
2. Independent Contractor Agreement for Coin Credit Card Processing and Data Management Services between the City and Consultant dated June 20, 2024 (Pgs. 52-80)
3. Professional Services Agreement, Amendment 4, Frogparking, Inc. (Pgs. 81-83) Submitted By: Alexis Braun Approved:
Alexis Braun, Acting Director of
Transit and Community Services
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Carol Jacobs, Transit and Community Services Alexis Braun, Acting Director of Transit and Community Services
Jane Abzug, Assistant City Attorney