Administrative
Report
H.16., File # 23-6049 Meeting Date: 5/16/2023
To: MAYOR AND CITY COUNCIL
From: JOE HOFFMAN, CHIEF OF POLICE
TITLE
APPROVE AN AMENDMENT TO THE AGREEMENT WITH PAYBYPHONE TECHNOLOGIES, INC.
TO INCREASE THE PER TRANSACTION COST FROM $0.18 TO $0.25 CENTS FOR MOBILE
PARKING APPLICATION PAYMENTS AT NO COST TO THE CITY FOR THE EXISTING TERM THROUGH OCTOBER 18, 2026
EXECUTIVE SUMMARY
In 2020, City Council directed staff to explore the possibility of improving and expanding mobile parking application payment options across the City. An RFP was issued and agreements were approved with ParkMobile, LLC. and PayByPhone Technologies in 2021. The proposed amendment would increase the per transaction charge for PayByPhone use by $0.07, from $0.18 to $0.25. The per transaction charges are recovered by an additional convenience fee charged by the City that is paid by the end user.
BACKGROUND
Redondo Beach has approximately 1,300 metered parking spots in the City, with roughly 1,100 smart -meters spaces in operation. There are an additional 1,300 pay by space parking spots in the pier/harbor area that allow for mobile parking applications. City Council approved an agreement with ParkMobile, LLC on May 5, 2021 and staff worked with ParkMobile, Bank of America, DataTicket, IPS and MacKay to plan, map equipment, implement, test and launch the service on all parking meters in the City and in the Waterfront area. A soft launch of the ParkMobile, LLC. for on-street parking service began on October 1, 2021 and advertisement and education about the service followed. To expand the number of mobile applications, staff per direction from Council, sought services from an additional vendor, PayByPhone, and a contract was approved on October 19, 2021.
Each vendor charges a per transaction service fee to the City for use of the applications, which is recovered by a convenience fee charged by the City to the end parking user that is in addition to the normal cost of parking. This amendment would increase the PayByPhone per transaction fee from $0.18 to $0.25. The vendor has requested the increase to keep pace with market value, which an average is approximately $0.40 per transaction. Per the original Agreement, the fee may be increased by mutual agreement of both parties.
COORDINATION
The contract amendment has been prepared by the City Attorney’s Office.
H.16., File # 23-6049 Meeting Date: 5/16/2023
FISCAL IMPACT
The amendment is cost neutral to the City. The per transaction charges are recovered through an additional convenience fee charged by the City to the end user.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Agmt - First Amendment PayByPhone Technologies, Inc.
· Agmt - Original PayByPhone Technologies, Inc. Agreement, October 19, 2021 · Admin Report - PayByPhone Technologies, Inc., October 19, 2021