CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 13 Section Name: CONSENT CALENDAR Account Number: 14-4682 File ID: 26-11144 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 15, 2026
SUBJECT:
Downtown Parking Equipment Network Hosting and Materials — Amendment RECOMMENDATION:
Approve Amendment No. 3 to the agreement with IPS Group, Inc. for parking equipment network hosting and materials to increase the agreement in the amount of $125,500 for a revised agreement total not to exceed $800,500, update pricing terms based on the consumer price index, and extend the agreement through December 31, 2026, with one optional six- month extension; and authorize the Public Works Director to execute the amendment in substantially the form presented and approve the optional extension.
BACKGROUND:
The Downtown Parking Technology project resulted in the installation of 119 multi-space pay stations and 386 single-space parking meters for the Downtown paid parking system. Funding for this project included $1.5 million from the Metropolitan Transportation Commission (MTC) and an additional $500,000 from Congestion Mitigation and Air Quality Improvement (CMAQ) funding, as well as $500,000 from City matching funds. In addition to pay stations and parking meters, the project included other parking technology improvements, such as real-time parking occupancy data for Downtown parking garages and wayfinding signage. IPS Group, Inc. installed the pay station and parking meter equipment and the City contracts with IPS Group, Inc. for hosting the network gateway and providing materials for maintenance as needed.
In June 2021, Council approved an agreement in the amount of $300,000 with IPS Group, Inc. to provide the monthly network hosting services required by the City's downtown parking revenue equipment, as well as for providing proprietary parts and materials on an as-needed basis to maintain the equipment in good working condition. This equipment includes all the parking meters and pay stations for the downtown parking program. The funding for the initial agreement also included payment of the credit card transaction fees for each user transaction utilizing credit card payment.
In April 2023, City Council approved Amendment No. 1 to the agreement to increase the total agreement amount by $100,000 to provide enough funding for additional credit card transaction fees through the original agreement duration.
On May 1, 2023, Council adopted the Fiscal Year 2023-24 Comprehensive Fee Schedule, which included that credit card transaction fees would be charged by the credit card provider to users beginning July 1, 2023.
In June 2023, City Council approved Amendment No. 2 to the agreement which extended the term of the agreement until June 30, 2026, and increased the amount of the agreement by $275,000 to add funds for network hosting and materials.
The total not-to-exceed amount for the additional term of the agreement took the reduction in costs from the credit card transaction fees into account.
CITY OF SAN MATEO
Amendment No. 3 extends the agreement term through December 31, 2026, with one (1) optional six-month extension, updates the pricing terms to reflect the consumer price index, and increases the agreement amount by $125,500 to fund network hosting, materials, and required maintenance of the existing parking meters and pay stations during the extension period. Because the pay stations and parking meters are proprietary to IPS Group, Inc., compatibility with the existing system limits the number of vendors able to provide replacement equipment and related services. Authorizing the extension will provide operational continuity and ongoing technical support for the City’s existing parking infrastructure while staff assess future parking technology and service needs. This amendment brings the total not-to-exceed amount for the agreement to $800,500.
BUDGET IMPACT:
Funding for these services is budgeted for in the Downtown Services Operations budget and there are sufficient funds in the FY 2026-27 budget for this amendment.
ENVIRONMENTAL DETERMINATION:
This City Council action approving an amendment to the agreement with IPS Group, Inc. is not a project subject to CEQA, because it can be seen with certainty that there is no possibility that continuing monthly network hosting services and materials required by the City's downtown parking equipment may have a significant effect on the environment. (CEQA Guidelines Section 15061(b)(3).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Amendment No. 3
STAFF CONTACT
Ella Phillips, Assistant Transportation Planner
[email protected]
(650) 522-7326
Jay Yu, Engineering Manager
[email protected]
(650) 522-7323