Finance & Management Committee
October 13, 2026
RECOMMENDATION
AGENDA REPORT
Staff Recommends That The City Council Adopt A Resolution:
(1) Authorizing The City Administrator To Amend The Agreement With Modaxo Traffic Management Inc. For Parking Citation System Software, Hardware, And Related Services To Extend The Term Up To March 31, 2028 For An Amount Not To Exceed $5,279,143 Over The Amended Term, Including Authorization To Pay Up To $1,347,328 In Outstanding Invoices; And
(2) Waiving The Competitive Multi-Step Solicitation Process.
EXECUTIVE SUMMARY
The City’s parking enforcement and permit/citation management operations rely on a comprehensive software and services platform currently provided by Modaxo Traffic Management Inc. (Modaxo). The proposed extension will provide continuity of these critical services while the City completes a competitive Request for Proposals (RFP) process for a long-term parking management solution. The additional contract term will provide sufficient time for staff to conduct the competitive procurement process, evaluate proposals, and execute a subsequent long-term contract. Staff is actively developing a Request for Information (RFI) to broaden the City’s understanding of available solutions, along with the RFP to ensure that the future parking management solution addresses the City’s current and anticipated operational, technological, and administrative needs, while maintaining continuity of essential parking enforcement, citation, permit, payment processing, and related services throughout the procurement process.
The existing contract with Modaxo expired in April 2026. An extension is necessary to maintain continuity of parking citation processing and revenue collection and avoid disruption to the City’s parking citation management system. This system is critical to administering citations and collecting the approximately $29.70 million in parking citation revenue anticipated in the Fiscal Year 2026–27 Midcycle Budget.
TO: Elizabeth Lake FROM: Bradley Johnson
Interim City Administrator Director of Finance
SUBJECT: Parking Citation System Agreement
Extension
DATE: September 21, 2026
City Administrator Approval Date: Elizabeth Lake (Oct 1, 2026 15:53:14 PDT) Oct 1, 2026 Elizabeth Lake, Interim City Administrator
Subject: Parking Citation System Agreement Extension
Date: September 21, 2026 Page | 2
Finance & Management Committee
October 13, 2026
Following the July 1, 2026 transition of the parking citation management program from the Department of Transportation (DOT) to the Finance Department, Finance reviewed the proposed contract extension and existing program practices to ensure they aligned with the City’s current operational and financial requirements. Because the existing contract had expired prior to the transition, Finance needed to conduct additional evaluation and negotiate revised contract terms, resulting in a more extensive process than initially anticipated. Staff is now bringing the contract extension forward to formalize the revised terms and bring the service provider into contractual compliance promptly, while ensuring the program continues to operate in accordance with the City’s current requirements.
BACKGROUND / LEGISLATIVE HISTORY
In February 2018, the City Council adopted Resolution No. 87051 C.M.S., authorizing the City to enter into an Agreement with Conduent State & Local Solutions, Inc. to provide Parking Citation Management Software, Parking Enforcement Hardware, Document Production, Mailing, and Special Collection Services, including installation, implementation, training, maintenance, support, and related professional services for an initial five-year (5) term at approximately $497,870 per year, for a total of $2,489,350, with two one-year options, for a grand total amount not to exceed $3,485,095.
In June 2019, by Resolution No. 87755 C.M.S., City Council approved the Surveillance Impact Report for an Automatic License Plate Reader (ALPR) System for the Department of Transportation, adopted the use of the ALPR as City Policy, and authorized the City Administrator to acquire and use the ALPR System at a cost not to exceed $366,000.00.
In June 2019, the Original Professional Service Agreement’s Statement of Work was amended by Change Order No.1 (“First Amendment”) to add the ALPR System (“as Amended Agreement”).
In June 2022, by Resolution No. 89277 C.M.S., City Council authorized an increase in the amount of $876,000.00 to support citation systems, residential parking permits, and payment processing, making the grand total authorized for the As Amended Agreement a not to exceed amount of $4,361,095.
In April 2023, pursuant to the authority granted by the City Council in Resolution No. 87051 C.M.S., the city administrator, entered into a two (2) year extension of the professional services agreement with Modaxo Traffic Management Inc, which acquired Conduent State & Local Solutions, Inc.
In July 2025, pursuant to the authority granted by the City Council in Resolution 90825 C.M.S., Council authorized and the parties entered into the Third Amendment to the Amended Agreement, extending the term of the Agreement to April 1, 2026 for an amount not to exceed over the one-year term of $2,509,697.
Effective July 2026, responsibility for these services transitioned to the Finance Department as part of the FY 2026–27 Midcycle Budget. The Department is leading the transition of the associated processes, systems, and administrative functions to ensure operational continuity and establish a sustainable framework for ongoing service delivery.
Elizabeth Lake, Interim City Administrator
Subject: Parking Citation System Agreement Extension
Date: September 21, 2026 Page | 3
Finance & Management Committee
October 13, 2026
ANALYSIS AND POLICY ALTERNATIVES
The City’s parking enforcement and permit/citation management are supported by a comprehensive software and services platform currently provided by Modaxo. The system integrates in real time with field enforcement tools, including handheld devices and License Plate Recognition (LPR) systems, as well as parking payment platforms and citation and permit databases. It also provides web and telephone portals through which customers can make payments and conduct other permitted transactions. The system maintains a complete record of processing activity, including status updates, correspondence, and interactions conducted by phone, online, or by mail. In addition to the software platform, Modaxo provides related administrative services, including the management of outgoing correspondence, invoicing, and collections for parking citations.
During the most recent contract negotiations, the Finance Department reviewed the vendor’s collection services and associated compensation structure. Under the existing agreement, the vendor may receive a 30% contingent collection fee on citation balances it successfully collects through its Special Collection Services. The fee is contingent upon successful recovery of the applicable citation revenue. Per Oakland Municipal Code 10.48.030, “Fee for collection of delinquent penalty payments,” when the City incurs collection costs in connection with the assignment of a parking citation for collection, those costs may be added to the penalty, and the violator is liable to the City for both the civil penalties and the collection costs.
Finance raised concerns regarding the application of this fee in certain circumstances, particularly when collection activities overlap with efforts performed by another entity or when the collection fee has been waived pursuant to state legislative authority. These circumstances include citations referred to the Department of Motor Vehicles (DMV) or Franchise Tax Board (FTB) for collection through those agencies, as well as citations subject to the state-mandated Indigent Parking Payment Plan (IPP), for which the collection fee has been waived.
As part of the negotiations, the vendor presented two alternatives for the contract extension:
one that includes Special Collection Services and the 30% contingent collection fee, and one that does not. The estimated costs for each option over the extended term are presented in Table 1 below.
Elizabeth Lake, Interim City Administrator
Subject: Parking Citation System Agreement Extension
Date: September 21, 2026 Page | 4
Finance & Management Committee
October 13, 2026
Table 1: Breakdown of Estimated Costs
Description Unit of Measure
24 Month Term 24 Month Term
With Special
Collection Services
Without Special
Collection Services
Past Due Amount (Months 1-5)
Outstanding Invoices Through August 31, 2026 1,347,328 1,347,328 Softwware Services (Months 6-24)
Monthly Fixed Fee $17,390 or $153,000 / mo $ 330,410 $ 2,907,000 IVR Fee $675 / month $ 12,825 $ 12,825
Document Production & Mailing Services (Months 6-24)
Courtesy / Follow -Up Notice $0.2027 / unit $ 105,911 $ 105,911 First Delinquent Notice $0.2027 / unit $ 52,955 $ 52,955 Second Delinquent Notice Included Included Included
All Other Delinquent Collection Notices (FTB,
Sweep) Included Included Included
Correspondence $0.2027 / unit $ 46,613 $ 46,613
Lockbox Services $0.2027 / unit $ 9,194 $ 9,194
Postage for the Courtesy / Follow-up & First
Delinquent Notices Reimburseable at Cost $ 501,600 $ 501,600 Subtotal City Funding $ 2,406,837 $ 4,983,427
Special Collections (Months 6-24)
Special Collection Services*
30% Pass Through
Collections Fee $ 2,872,306 $ -
Total 24 months $ 5,279,143 $ 4,983,427
* Estimated based on actuals from previous contract
As shown in Table 1, the primary distinction between the two options is how the vendor is compensated for collection activities. Under the Special Collection Services option, the vendor would continue to receive a 30% contingent collection fee on successfully recovered citation balances. Under the alternative without Special Collection Services, the vendor would forgo the contingent collection fee and adjust other contract fees to offset the associated revenue and maintain for the most part the overall financial value of the agreement.
Under the Special Collection Services option, the 30% collection fee averaged approximately $151,000 per month during the most recent contract term, based on approximately $503,000 in average monthly collections. The 30% fee was established under a prior administration. As part of the current negotiations, Finance has raised questions regarding its continued application, including the impact of adding a 30% fee to amounts collected from residents and the sequencing of the City's collection efforts.
Under the current process, the contractor's collection activities can occur outside of, and in many cases before, the City's internal collection efforts and DMV hold processes, which are handled by City staff. Finance also raised concerns regarding situations in which citation balances are subsequently reduced or eliminated through the state-mandated IPP and processes associated with Assembly Bill 1299 (AB 1299). As part of the negotiations, the parties agreed that the 30% collection fee would not apply to outstanding citations subject to the IPP for which the collection fee has been waived. This change addresses Finance's concerns regarding the application of the collection fee in circumstances where the fee has been waived pursuant to state authority.
Under the option without Special Collection Services, the vendor has indicated that it would Elizabeth Lake, Interim City Administrator
Subject: Parking Citation System Agreement Extension
Date: September 21, 2026 Page | 5
Finance & Management Committee
October 13, 2026
adjust its other contract fees to offset the revenue associated with the foregone collection fees.
As a result, the overall cost would be expected to be similar to the option that includes Special Collection Services. However, the collection fees are a pass-through cost paid by the customer, rather than by the City. Furthermore, Collection-related activities currently performed by the vendor would instead need to be handled by City staff. No additional staffing resources are currently proposed for these activities, which would require the City to accommodate this work within existing resources.
Based on the negotiated terms, staff recommends a limited extension of Special Collection Services at the 30% contingent collection fee, subject to the IPP-related exclusions described above. The extension would provide sufficient time for the City to complete its competitive procurement/RFP process and negotiate and execute a longer-term agreement with the selected provider, while maintaining service continuity in the interim. If the RFP process concludes sooner than anticipated, the City may shorten the extension accordingly. The competitive process will allow all qualified vendors, including the current provider, to compete for a potential longer-term contract.
The extension would allow the City to continue utilizing the vendor’s existing collection infrastructure and specialized collection services, with fees for Special Collections remaining tied to successful collection activity. The extension would not constitute a determination that the current level or scope of collection activity should continue. Rather, the City and contractor would use the extension period to continue negotiating the appropriate scope and terms of future collection services for DMV- and FTB-related accounts within the existing budgetary framework. This approach would also avoid shifting collection-related activities to existing City staff during the procurement period, for which no additional staffing resources are currently proposed.
WAIVER RATIONALE
Pursuant to Oakland Municipal Code (OMC) Title 2, Chapter 2, Article I, Section 2.04.042(D), the City Council may waive competitive solicitation requirements for computerized/information technology systems upon the recommendation of the City Administrator and a finding that the waiver is in the best interests of the City.
Staff recommends that the City Council waive the City’s competitive solicitation requirements and authorize an extension of the City’s existing contract with Modaxo for parking citation management and related services. The waiver is necessary to avoid an interruption in critical parking enforcement and citation management operations while the City completes a competitive procurement process for a long-term solution.
In preparation for the upcoming procurement, staff has undertaken a broader review of parking management system practices and available technologies. Staff has engaged with counterparts from jurisdictions nationwide to better understand emerging practices, lessons learned, and system capabilities that support effective parking enforcement, customer service, revenue collection, and administrative functions. These discussions are informing the City's requirements and evaluation criteria for the forthcoming procurement.
Staff has prepared a Request for Information (RFI) to solicit information from potential service providers regarding available technologies, services, and approaches to parking management Elizabeth Lake, Interim City Administrator
Subject: Parking Citation System Agreement Extension
Date: September 21, 2026 Page | 6
Finance & Management Committee
October 13, 2026
and citation processing. As of the preparation of this report, the RFI has been submitted to the City’s Contracting Unit for review, with the goal of issuing the RFI prior to presentation of this report to the City Council. The RFI is intended to broaden the City’s understanding of available solutions and identify technologies or approaches that may not have previously been considered.
Following completion of the RFI, staff will issue the comprehensive RFP incorporating identified best practices, operational requirements, technology needs, and lessons learned from other jurisdictions. The resulting procurement will be conducted competitively, and Modaxo will be eligible to submit a proposal and will be evaluated in accordance with the same requirements and criteria applicable to other proposers. The estimated timeline for the RFP is outlined on Table 2 below.
Table 2: RFP Timeline
Item Target Date
Develop updated scope of work and procurement documents October 2026 Release Request for Proposals November 2026
Proposal evaluation and interviews December 2026 - January 2027 Selection and contract negotiations February 2027 – March 2027 Finance & Management Committee review April 2027
City Council consideration and contract award April 2027 Transition and / or implementation period Spring 2027 - Summer 2027 Commencement of new operating agreement Fall 2027
RELATED PLANNING EFFORTS: OAKLAND STRATEGIC PLAN
In April 2025, the City Council adopted five Strategic Priorities as part of its three-year Strategic Plan. This contract extension supports the Streamline Operations priority by maintaining the City’s existing integrated system for managing parking citations, including citation processing, payment processing, correspondence, and collections noticing. Continuing the existing system will help maintain operational continuity, minimize the risk of service disruptions, and support the efficient administration of the City’s parking citation program. This will also allow the City to continue advancing the objectives of the Oakland Roadmap to Fiscal Health, which was received and filed by the City Council in June 2025, particularly its direction to maximize collection of existing revenue sources.
FISCAL IMPACT
Maintaining uninterrupted parking enforcement and citation management services currently provided by Modaxo is essential to the City’s ability to achieve the $29.70 million in parking citation revenue projected in the Fiscal Year 2026–27 Midcycle Budget.
A total of $3,416,704 is needed during FY 2026–27 to cover outstanding invoices, subject to reconciliation, for services provided in the prior fiscal year; outstanding invoices for services Elizabeth Lake, Interim City Administrator
Subject: Parking Citation System Agreement Extension
Date: September 21, 2026 Page | 7
Finance & Management Committee
October 13, 2026
provided in July and August; and the anticipated cost of services for the remaining ten months of the fiscal year. Sufficient funding is included and available in the Fiscal Year 2026–27 Midcycle Adopted Budget to support these required services, with funding included as an ongoing expenditure pending future budget adoptions.
A breakdown of the project funding sources is included in Table 3 below.
Table 3: Project Funding Sources
Fiscal Year Fund Organization Account Project Program Amount FY 2026-27 1010 08911 54919 1000007 IP60 $3,416,704
FY 2027-28
(Pending
Budget
Adoption)
1010 08911 54919 1000007 IP60 $1,862,439
PUBLIC OUTREACH / INTEREST
No outreach was deemed necessary for this report beyond the standard City Council agenda noticing procedures.
COORDINATION
This report was prepared in coordination with the Budget Bureau and the City Attorney’s office.
PAST PERFORMANCE, EVALUATION AND FOLLOW-UP
Modaxo has provided the City with parking citation management software and related services since 2018. The agreement has been amended over time to expand the scope of services, including the addition of the Automatic License Plate Reader (ALPR) System and continued support for updated citation systems, residential parking permits, and payment processing.
Modaxo’s performance has been satisfactory, supporting the City’s parking enforcement and citation operations through reliable software, system integrations, customer payment portals, correspondence, and invoicing. During the most recent contract negotiations, the Finance Department expressed concerns regarding the 30% collection fee and the overall collections process, including the cost and administration of collection activities. Long-term performance and service needs, including the City’s approach to collections and associated fees, are being evaluated through a formal RFP process, which will inform the subsequent long-term contract.
RACE AND EQUITY
Staff did not complete a Racial Equity Impact Analysis for the recommended action. The analysis will be conducted as part of the RFP process for the long-term solution to this program.
Elizabeth Lake, Interim City Administrator
Subject: Parking Citation System Agreement Extension
Date: September 21, 2026 Page | 8
Finance & Management Committee
October 13, 2026
Bradley Johnson (Oct 1, 2026 15:27:16 PDT)
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That The City Council Adopt A Resolution:
(1) Authorizing The City Administrator To Amend The Agreement With Modaxo Traffic Management Inc. For Parking Citation System Software, Hardware, And Related Services To Extend The Term Up To March 31, 2028 For An Amount Not To Exceed $5,279,143 Over The Amended Term, Including Authorization To Pay Up To $1,347,328 In Outstanding Invoices; And (2) Waiving The Competitive Multi-Step Solicitation Process.
For questions regarding this report, please contact Jose Segura, Assistant Revenue & Tax Administrator, Finance Department, at (510) 238-2972.
Respectfully submitted,
BRADLEY JOHNSON
Finance Director, Finance Department
Reviewed by:
Nicole Welch, Revenue & Tax Administrator
Prepared by:
Jose Segura, Assistant Revenue & Tax
Administrator, Revenue Management Bureau