City Council
Report
City Council Meeting: April 14, 2026
Agenda Item: 4.A
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To: Mayor and City Council
From: Anuj Gupta, Director of Transportation, Parking Operations (DOT) Subject: Approval of Second Modification of Agreement with Modaxo for Parking Citation Processing and Automated Bike Lane Enforcement Citations for the Department of Transportation
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15321 (Enforcement Actions by Regulatory Agencies) of the California Environmental Quality Act (CEQA) Guidelines.
2. Authorize the City Manager to negotiate and execute a second modification to agreement #11031 in the amount of $120,000 with Modaxo Corporation for parking citation processing and payment services for automated bike lane enforcement citations for the Department of Transportation. This will result in a nine-year amended agreement with a new total amount not to exceed $13,520,000 with future year funding contingent on Council budget approval.
Executive Summary
In Fiscal Year 2024-25, the City of Santa Monica (City) issued 220,000 parking citations that generated $10.9 million in General Fund parking citation revenues, as well as 90,000 residential and recreational parking permits that generated a combined $3.8 million in General Fund and Beach Recreation Fund revenues. Conduent, now Modaxo Traffic Management USA, Inc. (Modaxo), has provided parking permit fulfillment and citation payment solution services to the City under agreement #11031 (CCS) since June 2020.
In February 2026, the Department of Transportation’s Mobility Division launched an automated bike lane enforcement program, governed by California Assembly Bill (AB) 2 of 5
361. This program uses cameras mounted on City parking enforcement vehicles to capture videos of illegal parking events in bike-only zones as evidence for automated citations.
Automated bike lane enforcement activities require technology and a workflow to review and issue citations and to collect fines and any late fees. Citation processing services for parking citations issued manually by traffic services officers are already being provided by Modaxo under agreement #11031, but this specific automated citation program was not anticipated at the time the contract budget was developed in 2020.
Therefore, staff requests approval for a second modification to the contract with Modaxo to increase the budget to cover automated bike lane enforcement citation processing.
The cost of citation processing for the automated bike lane enforcement program over the remaining two 2-year renewal options of the Modaxo contract is estimated to not exceed $120,000 by June 30, 2029, assuming the final option with Modaxo is exercised.
Background
On June 25, 2020, following a competitive procurement process, the City awarded a five-year contract plus two 2-year renewal options to Conduent State and Local Solutions, Inc., for a not-to-exceed total of $13.4 million dollars. Subsequently, Conduent was acquired by Modaxo Traffic Management USA, Inc. and an agreement acknowledging the new entity was executed by the City on March 29, 2024. Conduent, now Modaxo, provides parking permits and citation processing and collections and delinquent account collections management services to the City using a software platform called e-Tims®.
Upon approval from the City Council in January 2026, the Mobility Division launched an Automated Bike Lane Enforcement program using AI-assisted cameras that are being mounted on seven Santa Monica Police Department (SMPD) parking enforcement vehicles. The City is expected to begin issuing citations in July 2026 following a mandatory 60-day warning period. Staff requests approval for a second modification to agreement #11031 with Modaxo to increase its budget authority by $120,000 over the 3 of 5
remainder of the contract term to process citations for the automated bike lane enforcement program.
Previous Council Actions
Meeting Date Description
4/28/2020 Award Request for Proposal and Enter into Agreement with Conduent State and Local Solutions, Inc. for Parking Permits and Citation Services
9/24/2024 Award Contract to Hayden Al, Inc. for Automated Bus Lane Enforcement Services
1/13/2026 Approval of First Modification of Contract with Hayden AI for Launch of Bike Lane Enforcement Program
Discussion
The Mobility Division of the Santa Monica Department of Transportation (DOT) continually evaluates opportunities to enhance City streets so that people walking, biking, riding transit, driving or scooting can travel safely and comfortably. In the interest of further safety on the City’s bike lane network, and in response to direction provided by the City Council in Agenda Item 16E at its September 12, 2023, meeting, Mobility staff proposed implementing an automated bike lane enforcement program using vehicle-mounted cameras, similar to the Automated Bus Lane Enforcement (ABLE) program being operated by DOT’s Big Blue Bus (BBB) division. California Assembly Bill (AB) 361, approved on October 8, 2023, allows local jurisdictions to monitor and enforce bicycle lanes using cameras mounted on parking enforcement vehicles.
A 45-day pilot conducted in May and June 2024 with cameras mounted on two parking enforcement vehicles recorded 1,679 events. 263 of these events were adjudicated as causing the greatest risk to road users due to the extent the vehicles blocked the bike lane. The pilot results suggested that an automated bike lane enforcement program would offer safety and quality-of-life benefits to all road users. 4 of 5
The City Council approved an AB 316 bike lane enforcement program in the FY2025-27 biennial budget and then, on January 13, 2026, approved a first modification of Contract # 11617 with Hayden AI to equip up to seven SMPD parking enforcement vehicles with cameras for an automated bike lane enforcement program. The project is currently on track to begin a 60-day warning period in May 2026, and staff expect citations to be issued beginning in July 2026. A second modification of Contract #11031 with Modaxo is needed to add citation processing services for the automated bike lane enforcement program to the existing budget of the Modaxo contract.
Environmental Review
This contract for citation processing for bike lane enforcement is categorically exempt from CEQA pursuant to Section 15321 of the CEQA Guidelines. Section 15321 exempts project from CEQA that are actions by regulatory agencies to enforce a law or general rule administered or adopted by the regulatory agency. The contract is for citations for automated bike lane enforcement on up to seven SMPD vehicles per California AB 361.
Therefore, this contract is exempt pursuant to Section 15321.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund to increase the amount of agreement #11031 with Modaxo for citation processing services to include automated bike lane enforcement citation processing.
Agreement Modification Request
Agreement
#
Current
Authorized
Amount
FY 2025-26
Modified
Request
Amount
Future
Years
Amount Dept/CIP Account #
Total Revised
Contract
Amount
11031 $13,400,000 $5,500 $114,500 01600002.550010 $13,520,000 Future year funding is contingent on Council budget approval. 5 of 5
Prepared By: Barbara Andres, Customer Experience and Innovation Administrator
Approved Forwarded to Council
Attachments:
A. Award Request for Proposal and Enter into Agreement with Conduent State and Local Solutions, Inc. for Parking Permits and Citation Services (Web Link) B. Award Contract to Hayden Al, Inc. for Automated Bus Lane Enforcement (Web Link)
C. Approval of First Modification of Contract with Hayden AI for Launch of Bike Lane Enforcement Program (Web Link)
D. CT# 11031 Conduent_Original Contract
E. #11031 Modaxo_formerly Conduent_1st Modification
F. Modaxo-Trellint OAKS FY25-26
G. Modaxo_Levine Act Signed 11-18-25