To: MAYOR AND CITY COUNCIL
From: KEITH KAUFFMAN, CHIEF OF POLICE AND STEPHEN PROUD, WED DIRECTOR
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APPROVE AGREEMENT WITH PAYBYPHONE, FOR MOBILE PARKING PAYMENT SERVICES AT NO COST TO THE CITY FOR THE TERM OCTOBER 19, 2021 TO OCTOBER 18, 2023 WITH AN OPTION TO EXTEND FOR THREE ADDITIONAL YEARS
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EXECUTIVE SUMMARY
City Council previously directed staff to explore the possibility of improving and expanding mobile parking application payment options across the City and an RFP was issued. On May 5, 2021 City Council approved an agreement with ParkMobile, LLC. Council further directed staff to bring an additional contract back to Council -- from vendor Pay By Phone -- to potentially serve as a second parking mobile application in the City of Redondo Beach.
BACKGROUND
The City of Redondo Beach has approximately 1300 metered parking spots in the City, with approximately 1100 smart-meters spaces in operation, and separately the pier/harbor parking facilities with an additional 1300 parking spaces. City Council approved an agreement with ParkMobile, LLC on May 5, 2021 and City 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 throughout the Waterfront. A soft launch of the ParkMobile, LLC on-street parking service began on October 1, 2021 and more advertisement and education about the service will follow. As directed by Council, staff simultaneously worked with a second vendor, Pay by Phone, to bring a contract back to Council for review and approval within four months.
Process
As was noted by staff at the May 5, 2021 City Council meeting, PayByPhone was determined, by the RfP Selection Committee, to be a qualified vendor of mobile parking payment services. The process therefore, involved finalizing contract details, including but not limited to payment rates.
The PayByPhone business model was not able to accommodate the request, made by City Council, that PayByPhone match the ParkMobile, LLC ability to include any additional extensions by the customer in the initial transaction rate. However, as PayByPhone is offering their service at a lower per-transaction rate ($0.18c per transaction), they are confident customers will select their service. If Council approves this agreement, the parking customer in Redondo Beach will have the option to select either vendor at all City meters, once fully implemented.
Throughout the contract negotiation process, staff continuously worked with both vendors to ensure the measures being undertaken in the implementation of the ParkMobile services would not hinder, and indeed would aid, PayByPhone implementation. Much of the leg work has been completed by staff to: create the “zone mapping” for the City (creating a database with unique identifiers for every parking space), create new accounts with Bank of America to receive payments, design decals and signage displays, and to update and train on new enforcement techniques related to mobile payment methods. This effort has all been undertaken while keeping the possibility of a second vendor contract in mind. Although there is still much work associated with implementing a second vendor option on all City meters, it is hoped that these efforts will aid and expediate the PayByPhone implementation.
COORDINATION
The Police Department and Waterfront & Economic Development has coordinated with the City Attorney, Finance and City Treasurer’s office in developing the PayByPhone agreement.
FISCAL IMPACT
No cost to the City
$0.18 per parking transaction to Customer
APPROVED BY:
Joe Hoefgen, City Manager
ATTACHMENTS
PayByPhone Agreement
Insurance
Request for Proposals
RfP Addendum #1
PayByPhone Response