CITY COUNCIL ACTION REQUEST
Department(s):
Finance
CEQA:
Not a Project, File No. PP17-
003, Agreements/Contracts
(New or Amended) resulting
in no physical changes to the
environment
Coordination:
City Attorney’s Office,
City Manager’s Budget
Office, and Department of
Transportation
Dept. Approval:
/s/
Rick Bruneau
Council District(s):
Citywide
CMO Approval:
8/29/23
SUBJECT: FIRST AMENDMENT TO THE AGREEMENT FOR PARKING PAYMENT
SYSTEM, HOSTING, AND AUTOMATED PAYMENT PROCESSING SERVICES WITH T2 SYSTEMS CANADA, INC.
RECOMMENDATION:
Adopt a resolution authorizing the City Manager to negotiate and execute the First Amendment to the Agreement for Purchase of Parking Payment System, Hosting, and Automated Payment Processing Services with T2 Systems Canada, Inc., formerly Digital Payment Technologies Corporation, to extend services for up to three additional two-year option terms through October 29, 2029 under the same material terms and conditions as the original agreement for a maximum compensation not to exceed $160,000 for the option period beginning October 30, 2023 and ending October 29, 2025, subject to the appropriation of funds.
Desired Outcome: Authorizing the City Manager to take this action provides ongoing support and maintenance for the City’s automated parking payment system.
BASIS FOR RECOMMENDATION:
In 2013, the City entered into an agreement with Digital Payment Technologies Corporation, later purchased by T2 Systems Canada, Inc., for parking payment machines, hosting, and related services with an initial term ending October 29, 2015 and up to four additional two-year options to extend the agreement. In 2014, staff executed two change orders to the agreement to add products and services and increase compensation by approximately $79,000 combined for a revised contract maximum of $155,605 for the initial term.
Beginning in October 2015 through current, the City exercised the four available options to extend the agreement through October 29, 2023. To date, the total contract not-to-exceed amount, inclusive of the initial term plus the four option terms exercised to date, is $532,965.
The current equipment has not yet reached end of life and can be maintained in good working condition for at least six more years. Three additional two-year options provides sufficient time for the Department of Transportation to obtain funding for the high cost of equipment replacement, complete a new procurement, execute the agreement, and complete implementation of a new system, if required.
Approval of this recommendation will ensure ongoing support and maintenance for the existing equipment and system while staff completes a new solicitation for these products and services. In the event the equipment reaches end of life sooner than expected, or the procurement and new contract are completed sooner, the City may elect to not exercise all options or terminate for convenience with 60 days’ notice to the vendor in accordance with the terms of the agreement.
Commission Recommendation/Input: There is no commission recommendation or input associated with this action.
COUNCIL AGENDA: 9/12/23
FILE: 23-1181
ITEM: 2.9
COST AND FUNDING SOURCE:
Fund
#
Appn
# Appn. Name
Total
Appn
Amt. for
Contract*
2023-2024
Proposed Operating
Budget Page**
Last Budget
Action (Date,
Ord. No.)
533 0512 Non-
Personal/Equipment
$7,555,053 $146,520 892 6/20/2023,
30933
*Does not include $13,480 of the recommended maximum compensation of $160,000 reflected in the recommendation. These additional contingency funds may be added, if required, to the option ending October 29 , 2025, subject to the appropriation of funds.
** The 2023-2024 Adopted Operating Budget was approved on June 13, 2023 and adopted on June 20, 2023 by the City Council.
FOR QUESTIONS CONTACT: For program-related questions, please contact Lily Lim-Tsao, Assistant Director of Transportation, at [email protected]. For procurement- and contract-related questions, please contact Albie Udom, Deputy Director of Finance – Purchasing and Risk Management, at [email protected].