September 8, 2026
Agenda Item No. 11
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Jason Al-Imam, Adminstrative Services Director/Treasurer - 949-644-3126, [email protected] PREPARED BY:
Jessica Kan, Revenue Manager - 949-644-3153, [email protected] TITLE:
Approval of Amendment No. Two to Professional Services Agreement with Turbo Data Systems, Inc. for Parking Permit Management and Citation Processing Services ABSTRACT:
On April 1, 2022, the City of Newport Beach (City) entered into a professional services agreement (PSA) with Turbo Data Systems (TDS) for parking permit management and citation processing services. On June 30, 2025, the City amended the contract to increase the not-to-exceed amount and agreement term. For the City Council’s consideration is Amendment No. Two to the PSA with TDS to increase the agreement’s not-to-exceed amount by $180,000 to $1,652,496 to accommodate increased citation-processing costs and the purchase of additional handheld ticketing devices. The devices will support the Newport Beach Police Department’s (NBPD’s) transition from handwritten to electronic citations and provide LAZ Parking California, LLC with equipment to support street-sweeping enforcement. The amendment does not extend the agreement term, which expires on March 31, 2027.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Authorize the Mayor and City Clerk to execute Amendment No. Two to the Professional Services Agreement with Turbo Data Systems, Inc. for Parking Permit Management and Citation Processing Services and increase the total compensation with a not-to-exceed compensation amount of $1,652,496; and c) Approve Budget Amendment No. 27-019, increasing expenditure appropriates by $180,000 from the General Fund unappropriated fund balance to account number 0103032-811080, offset by a corresponding increase in revenues to account number 0103032-531045.
DISCUSSION:
The City currently uses TDS to provide parking permit management and citation processing services. These services are demand-based, and actual costs fluctuate depending on the number of parking permits processed, parking and administrative citations issued, and appeals requested. Costs may include notices, adjudication letters, credit card processing fees, payment plan administration, collection fees, monthly application fees, postage, and related services.
The initial agreement with TDS was based on historical trends in parking and administrative citation activity. Since that time, administrative enforcement and hearing activity have increased significantly beyond the original projections. In Fiscal Years 2024–25 and 2025–26, the NBPD received hearing requests for 54 and 321 administrative citations, respectively. This represents an approximately 494% increase, nearly six times the prior-year activity.
The increase is attributable, in part, to expanded enforcement efforts, including the transition to administrative citations for violations such as e-bike violations on the boardwalk, open-container violations and enforcement within the expanded Safety Enhancement Zone. The increased citation and hearing activity has resulted in higher costs associated with citation processing and adjudication.
In addition, on July 28, 2026, the City Council approved the transition of street-sweeping enforcement responsibilities from the NBPD to LAZ Parking California, LLC (LAZ Parking). As part of this transition, LAZ Parking will provide four dedicated enforcement officers to support the City’s street-sweeping program and will require four handheld ticketing devices.
The NBPD has also requested nine additional handheld ticketing devices to support the transition of the Park Patrol Division from Recreation and Senior Services to the NBPD. The transition includes six employees who currently issue handwritten citations and will require handheld devices.
The NBPD’s Parking Control Division currently has six handheld ticketing devices. The three additional devices will be assigned to the parking control supervisor, the animal control supervisor, and maintained as a spare for employees working overtime or otherwise requiring an additional device.
Accordingly, the request provides for a total of 13 additional handheld ticketing devices: four for LAZ Parking and nine for the NBPD.
Amendment No. Two does not extend the current agreement term, which expires on March 31, 2027. The amendment instead increases the agreement’s total not-to-exceed amount to $1,652,496 to accommodate increased costs associated with citation processing, postage, and the purchase of additional handheld ticketing devices.
FISCAL IMPACT:
The amendment to the agreement with TDS totals $180,000 which includes $140,000 to cover costs associated with the increase in citation processing and a one-time increase of $40,000 for additional handheld ticketing devices. The amendment provides for 13 additional handheld ticketing devices, four for LAZ and nine for the Police Department.
In FY2026-27, the additional costs associated with citation issuance and additional handheld devices are projected to cost $180,000. Therefore, a budget amendment of $180,000 is required to fund the additional costs during FY2026-27. These costs are expected to be offset by increased parking citation revenue generated through consistent enforcement.
Upon approval of Budget Amendment No. 27-019, sufficient funding will be available in the adopted budget to support the additional costs associated with citation issuance and the purchase of new handheld ticketing devices. Funding for future fiscal years will be incorporated into the City’s annual budget process.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A – Amendment No. Two to Professional Services Agreement with Turbo Data Systems, Inc.
Attachment B – Budget Amendment 27-019
Approval of Amendment No. Two to Professional Services Agreement with Turbo Data Systems, Inc. for Parking Permit Management and Citation Processing Services September 8, 2026
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