STAFF REPORT
Meeting Date:
July 21, 2026
BUSINESS
14 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, with the option of five, one-year extensions upon mutual agreement of the parties, and implement a $.50 transaction fee to all parking transactions;
2. Cancel IPS Agreement Contract No. 24-35 for parking meter device and repair services;
3. Incorporate new and amended terms of Contract No. 24-35 with IPS for parking meter device and repair services, in an amount not to exceed $1,000,000 for a five-year term and authorize the City Manager or his designee to execute the agreement, in a form approved by the City Attorney;
4. 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
5. 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 in the future could 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. The cost of repairs and maintenance of parking meters will not change during the term of this contract. 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.
AWARD OF CONTRACT FOR MOBILE PARKING PAYMENT SYSTEM TO IPS GROUP, INC.
AND RELATED ACTIONS
July 21, 2026
DISCUSSION
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.
The ratings by staff are presented in the table below.
Evaluation Criteria
Max
Points
Per
Evaluator
Max
Points (6
evaluators
Arrive
Total
Frog Parking
Total
IPS Group
Total
Passport
Total
User Interface and Usability 5 30 25 20 27 26.5
Features and Functionality 5 30 26 19.5 28 27
Back-office Functionality 5 30 24 20 29 25
Integration Capability 5 30 24 22 27 25
Support and Help Desk 5 30 29 19 27 22
Experience and Project Management 5 30 29 21 28.5 28
Overall Requirements Compliance 10 60 42 39 54 45
AWARD OF CONTRACT FOR MOBILE PARKING PAYMENT SYSTEM TO IPS GROUP, INC.
AND RELATED ACTIONS
July 21, 2026
Overall Value 10 60 42 41 55 49
Grand Total 300 241 201.5 275.5 247.5
Based on the evaluation criteria described above, IPS Group, Inc. received the highest overall score of the four firms interviewed (275.5 out of 300 points), reflecting the strongest ratings for back-office functionality, integration capability, and overall value. IPS’s proposed transaction fee is also comparable to, or lower than, the fees proposed by the other responsive bidders, as shown in the comparison below.
Transaction Fee Comparison by Vendor (Per Transaction, Paid by End User) Transaction Type Arrive FrogParking IPS Passport
Mobile App Payment $0.65 $0.25* $0.50** $0.50
Voice Payment $0.65 N/A* $0.50** $0.50
Web Browser Payment $0.65 $0.25* $0.50** $0.50
SMS / Text Payment $0.65 N/A* $0.50** N/A
Extending Time $0.65 $0.25* $0.50** $0.50
Digital Wallet $0.25 $0.25* N/A $0.50
*FrogParking’s proposal excludes voice and SMS/text payment options. **IPS’s per-transaction fee is $0.35 plus a $0.15 merchant processing fee, shown here combined as $0.50.
In addition to being the highest-rated proposal, awarding the contract to IPS allows the City to consolidate its existing parking meter device and repair services agreement (Contract No. 24-35) into a single new agreement with IPS, rather than administering two separate contracts for related parking services.
Combining the agreements also allows the City to capture several added benefits at no additional cost, including:
• The extension of the parking meter repair and maintenance contract will not result in any additional costs to the City;
• A credit toward the buyback of up to 1,000 existing single-space meters, valued at $100,000 over the term of the contract;
• A 2-year extension of the warranty on future pay station purchases, valued at $79,000; and • Inclusion of the IPS Elevate parking-analytics platform at no cost, a service that would otherwise cost the City $260,000 annually.
In addition, because the new fee structure shifts the transaction and merchant processing fees to the end user rather than the City, and because the full parking fee revenue will now be remitted to the City, staff estimates the City will realize approximately $250,000 in annual savings while retaining 100% of parking fee revenue for the first time.
Cost Savings Summary
Cost Savings Category Detail Value
Reduced Meter Contract
Cost
No additional costs for parking meter repair and maintenance No additional costs Transaction Fee Shift to
End User
Estimated annual savings as the transaction fee structure changes so fees are paid by the end user rather than the City $250,000 estimated
annual savings
AWARD OF CONTRACT FOR MOBILE PARKING PAYMENT SYSTEM TO IPS GROUP, INC.
AND RELATED ACTIONS
July 21, 2026
Full Parking Fee
Remittance
Full parking fee revenue remitted to the City; the City will keep all of the parking revenue, which has not been the case in the past
100% of parking fee
revenue
Meter Buy-Back Credit IPS credit toward buyback of existing single-space meters, up to 1,000 meters, for an upgrade
$100 credit per meter /
$100,000 total value
Extended Pay Station
Warranty
2-year extension on future pay station purchases (3 years total), provided at no additional cost
$79,000 value
IPS Elevate Analytics
Platform
Software platform included at no additional cost to the City $260,000 value Cost Comparison of Fees FY24-25 Estimated Actual to FY26-27 Proposed Costs The table below is a comparison of costs associated with the current vendors and the proposed new contract.
Estimated 24-25 Costs Proposed Costs
Cost Savings Category IPS Frogparking IPS
Fees and Expenses $267,515 (6% of revenue) $346,515 (13.8% of revenue) $0 The proposed contract will provide for 100% of the parking revenue to go to the City with an estimated net gain of between $500,000 and $600,000.
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
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, targeted outreach, material development) and changing of signage with City branding. (Attachment 1.) Additional features include flexible parking rates at pay stations, (parking meters are dependent on age of meter), pre-parking coupon codes for business, special events or resident uses as directed by the City Council.
AWARD OF CONTRACT FOR MOBILE PARKING PAYMENT SYSTEM TO IPS GROUP, INC.
AND RELATED ACTIONS
July 21, 2026
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.
As part of the program, IPS and City staff will meet at least quarterly to conduct a comprehensive “health check” of the mobile payment parking system. These regular reviews will allow the team to proactively evaluate system performance, quickly identify and resolve issues, and monitor patterns of under‑ or over‑utilization. By using detailed operational data and customer feedback, the team can ensure the system continues to function reliably and remains responsive to community needs. In addition, the quarterly meetings provide a structured opportunity to review emerging technologies and potential system enhancements, enabling the City to plan upgrades that improve efficiency, support long‑term system stability, and enhance the overall parking experience.
Parking Meter Device and Repair Services – Contract 24-35 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.
AWARD OF CONTRACT FOR MOBILE PARKING PAYMENT SYSTEM TO IPS GROUP, INC.
AND RELATED ACTIONS
July 21, 2026
City staff proposes for the do not exceed amount for the meter and repair services not to exceed $200,000.
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 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 $200,000 for repairs and maintenance.
ENVIRONMENTAL ANALYSIS
The proposed actions 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. 8-54)
2. Independent Contractor Agreement for Coin Credit Card Processing and Data Management Services between the City and Consultant dated June 20, 2024 (Pgs. 55-83)
3. Professional Services Agreement, Amendment 4, Frogparking, Inc. (Pgs. 84-86) AWARD OF CONTRACT FOR MOBILE PARKING PAYMENT SYSTEM TO IPS GROUP, INC.
AND RELATED ACTIONS
July 21, 2026
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, Transit and Community Services