City Council
Report
City Council Meeting: September 30, 2025
Agenda Item: 4.C
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To: Mayor and City Council
From: Anuj Gupta, Director of Transportation, Parking Operations (DOT) Subject: Authorization to Extend Agreements for Parking Operations Management, Parking Access Revenue and Control Systems Services, and Credit Card Payment Services for Parking Operations
Recommended Action
Staff recommends that the City Council
1. Adopt a finding of no significant effect pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines;
2. Authorize the City Manager to negotiate and execute a third modification to agreement #10201 (CCS) in the amount of $13,100,084 with SP Plus LLC for Parking Operations Management. This will extend the expiration date from October 31, 2025, to June 30, 2027, resulting in an 11-year and 8 month amended agreement with a new total amount not to exceed $81,800,084, with future year funding contingent on Council budget approval;
3. Authorize the City Manager to negotiate and execute a third modification to agreement #10413 (CCS) in the amount of $2,239,240 with Skidata, Inc. for Parking Access and Revenue Control Systems (PARCS) services. This will extend the expiration date from November 30, 2025, to June 30, 2027, resulting in a 10-year and 3 month amended agreement with a new total amount not to exceed $8,736,240, with future year funding contingent on Council budget approval; and
4. Authorize the City Manager to negotiate and execute a third modification to agreement #10599 (CCS) in the amount of $180,000 with Windcave, Inc. for credit card payment gateway provider services on Skidata Parking Access and Revenue Control Systems. This will extend the expiration date from December 31, 2025, to June 30, 2027, resulting in a 9-year and 10 month amended agreement with a new total amount not to exceed $1,250,000, with future year funding contingent on Council budget approval.
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Summary
The Santa Monica Department of Transportation (DOT) Parking Division oversees the operation of 42 City owned parking facilities that generate $51.4M in annual revenue for the City, representing approximately 6.3% of the City’s total revenue and 7.7% of the City’s General Fund revenue. The SP Plus LLC, Skidata, Inc., and Windcave, Inc. contracts are essential in the operation of these 42 facilities. SP Plus LLC is the City’s parking operator, responsible for the operations and maintenance of these 42 facilities.
Skidata, Inc. is the Parking Access and Revenue Control System (PARCS) operator, providing and maintaining the access and payment systems for the 12 parking structures and the Santa Monica Pier. Windcave, Inc. provides the credit card gateway processor services for the 13 Skidata locations.
All three of these contracts are expiring in late 2025, and the City is currently undertaking a procurement for these three services (as a consolidated contract). The procurement process is expected to take several months into the calendar year of 2026, and the new contract is highly unlikely to be executed before the old contracts expire.
Therefore, the City is proposing to extend these three contracts until the new one is executed in order to avoid service disruption in parking operations. Once the new contract is executed with a selected vendor, the current contracts can be terminated with 30 days notice.
Discussion
A procurement process for Parking Operator, Parking Access and Revenue Control System (PARCS) service provider, and PARCS credit card processor is underway. This combined Request for Proposals (RFP) opened on July 16, 2025, and is scheduled to close on September 30, 2025. The RFP combines all three services into one contract.
The objective is for the Parking Operator to hire the PARCS and PARCS credit card processors as subconsultants, simplifying the contracting process. A review panel will evaluate proposals received and conduct interviews with a shortlisted set of companies to determine the best qualified firm. Shortly thereafter, DOT staff will return to City Council for approval of award of the bid and authorization to execute a contract. After approval by the City Council, a few months are typically needed for the negotiation and 3 of 6
execution of the contract with the new Parking Operator and subcontractors.
Accordingly, execution of these agreements is currently projected for mid-2026, creating the need to extend the existing contracts and provide an overlap to ensure continuity in services.
SP Plus LLC is the City’s parking operator, responsible for maintaining and operating the 42 City owned parking facilities. This includes the maintenance, physical operation, and financial accounting for these facilities. SP Plus LLC has up to 85 employees working within the City consisting of attendants at beach lots, staff for maintaining structures and running the SP Plus public counter, and supervisory and management staff. The existing contract was procured through a competitive bidding process and originally executed on November 30, 2015, and modified on June 24, 2021 and May 1, 2024. The current contract is for $68.7M in total for 9 years and 11 months and is set to expire on October 31, 2025.
Skidata, Inc. is the City’s Parking Access and Revenue Control System (PARCS) provider, providing the systems that operate the 12 parking structures and the Santa Monica Pier Deck. This includes gate arms, payment machines, License Plate Recognition systems, and all associated hardware and software. The contract includes monthly service and an allotment for new parts and equipment as needed. The existing contract was procured through a competitive bidding process and originally executed on March 30, 2017, and modified on June 24, 2021 and February 14, 2025. The current contract is for $6,497,000 in total for 8 years and 8 months and is set to expire on November 30, 2025.
Windcave Inc. is the PARCS credit card payment gateway provider for the City, processing the credit cards used at the Skidata PARCS equipment. The existing contract was procured with an exception to competitive bidding due to the economic viability of it being compatible with other equipment. The contract was originally executed on September 13, 2017, and modified on December 21, 2017 and October 9, 2019. The current contract is for $1,070,000 in total for 8 years and 3 months and is set to expire on December 31, 2025.
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Staff is recommending that each of these contracts be extended to expire on June 30, 2027. They would be terminated with 30 days’ notice once successor firms have been hired by the City. The date of June 30, 2027, is intended to give the City more than enough time to complete the existing procurement process, execute the new contract or contracts, and implement the systems to the point moving from the existing systems to the new ones.
Each of the firms’ ongoing costs will continue to be consistent with the cost of previous years, with some increases for inflation. These costs will be absorbed by the DOT Parking Division’s operating budget. The Skidata contract will include these ongoing operating costs and an additional $1.2 million in Capital Improvement Program funding allocated for License Plate Recognition (LPR). The LPR software and hardware to be used at the structures is purchased through the Skidata contract and is operated and maintained by Skidata.
Environmental Review
The contract amendments are categorically exempt from CEQA pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines which states that CEQA does not apply “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” These amendments would allow the City to continue its parking operations. It can be seen with certainty that the agreement would not result in adverse physical impacts on the environment, and as such, exempt from CEQA.
Past Council Actions
Meeting Date Description
10/13/2015
(attachment A)
Original bid and award of agreement with SP+ Municipal
Services (now referred to as SP Plus LLC)
8/25/2020
(attachment B)
Approval of First Modification to SP Plus LLC contract
1/10/2017
(attachment C)
Original bid and award of agreement with Sentry Control Systems, Inc. (now referred to as Skidata, Inc.)
1/12/2021 Approval of First Modification to Skidata, Inc. contract 5 of 6
(attachment D)
12/12/2017
(attachment E)
Approval of First Modification to Payment Express (now
Windcave, Inc.) contract
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund operating and capital budget to increase the amounts of the following contracts:
1. Contract #10201 with SP Plus LLC for parking operations management;
2. Contract #104130 with Skidata, Inc. for Parking Access and Revenue Control Systems (PARCS) service; and
3. Contract #10599 with Windcave, Inc. for credit card payment gateway provider services.
Agreement Modification Request
Agreement #
Current
Authorized
Amount
FY 2025-
26 Modified
Request
Amount
FY 2026-27
Modified
Request
Amount
Account Number
Total
Revised
Contract
Amount
10201 -
SP Plus LLC $68,700,000 $5,162,744 $7,937,340 01600004.550010 $81,800,084 104130 -
Skidata, Inc.
$6,497,000 $373,443 $665,796 01600004.550010
$8,736,239
$600,000 $600,000 C0109150.689000
10599 -
Windcave,
Inc.
$1,070,000 $60,000 $120,000 01600004.550010 $1,250,000
Future funding is contingent on Council budget approval. 6 of 6
Prepared By: Zach Pollard, Parking Manager
Approved Forwarded to Council
Attachments:
A. Attachment A -10-13-15 Staff Report
B. Attachment B -8-25-20 Staff Report
C. Attachment C -1-10-17 Staff Report
D. Attachment D -1-12-21 Staff Report
E. Attachment E -12-12-17 Staff Report
F. SP Plus Original Contract
G. SP Plus First Modification
H. Skidata / Sentry Original Contract
I. Skidata First Modification
J. Windcave / Payment Express Original Contract
K. Windcave / Payment Express First Modification
L. Windcave Second Modification
M. SP Plus Second Modification
N. Skidata Second Modification
O. SP Plus- Levine Act
P. SP Plus-Oaks Initative
Q. Windcave Levine Act
R. Windcave Oaks
S. SP Plus -Oaks Attachment
T. ADD TO_Skidata Oaks and Levine Forms