To: MAYOR AND CITY COUNCIL
From: JOE HOFFMAN, CHIEF OF POLICE
TITLE
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APPROVE AN AMENDMENT TO THE AGREEMENT WITH MACKAY METERS, INC. FOR THE PURCHASE OF 43 PARKING METERS TO BE INSTALLED ON HERONDO STREET BETWEEN NORTH FRANCISCA AVENUE AND NORTH PACIFIC COAST HIGHWAY, AND RELATED MONTHLY METER HOSTING CONNECTIVITY FEES, FOR AN AMOUNT NOT TO EXCEED $54,608, FOR THE EXISTING TERM OF THE AGREEMENT THROUGH NOVEMBER 30, 2029
ADOPT A DECLARATION THAT THE METER INSTALLATION WORK IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
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EXECUTIVE SUMMARY
As part of the Fiscal Year 2025-26 Adopted Budget, the City Council authorized the installation of additional parking meters for the 82 parking spaces on the north and south side of Herondo Street between North Francisca Avenue and Pacific Coast Highway. The City’s current parking meter vendor, MacKay Meters, Inc. (MacKay), has provided quotes for the new equipment (43 meters) totaling $34,736, plus additional connectivity fees of $414 per month. There is no change to the exiting contract term, which runs through November 30, 2029.
BACKGROUND
The City has contracted with MacKay for intelligent parking system services, including parking meter equipment and technical services, since 2020. MacKay was selected through a competitive request for proposal process to replace ageing IPS equipment, with the original Agreement being approved by Council on April 21, 2020. The meter installation occurred in phases, with two subsequent contract amendments incorporating additional equipment purchases, connectivity fees, and term extensions.
Currently, there are 157 single-space and 543 dual-space meters active in the City, with a total of 700 parking meters serving 1,243 parking spaces. There are also six MacKay Tango Pay Stations that serve the 99 parking spaces in Lot 5 next to Veteran’s Park.
On August 19, 2025, City Council adopted Ordinance No. 3296-25, which amended the Redondo Beach Municipal Code to add the section of Herondo Street between North Francisca Avenue and Pacific Coast Highway to the list of parking meter locations, and set the parking rate at $2.00/hour. In order to meter this area, staff is recommending the purchase of four single-space and 39 dual-spaces meters to be installed for the 82 parking spaces. This would bring the City’s new total for parking meters to 743, serving 1,325 parking spaces.
These meters are separate and distinct from the 33 pay stations installed in the Pier and Harbor area by T2, another vendor servicing a contract administered by the Waterfront and Economic Development Department.
Installation of the meters will be coordinated by the City’s Parking Meter Technician and the Public Works’ Engineering Services Division. LCR Earthwork & Engineering Corp, the City’s current contractor for the Residential Street Rehabilitation Project, will install the galvanized steel posts that serve as the base for the meters in the sidewalk area. Once the posts are in place, the Parking Meter Technician will install the meter heads. The meters are solar battery powered and require no electrical work. The project is anticipated to be finished by the end of the calendar year, with the new meters expected to be operational in January 2026.
The installation work is exempt from the California Environmental Quality Act (CEQA) under Section 15303(e) - New Construction or Conversion of Small Structures - of the Guidelines for the Implementation of CEQA. Accordingly, an Exemption Declaration has been prepared for the project.
COORDINATION
The contract amendment was prepared by the City Attorney’s Office, and the Community Development Department prepared the CEQA Exemption Declaration. Installation work for the parking meters would be coordinated with the Public Works’ Engineering Services Division.
FISCAL IMPACT
The total cost of the MacKay contract amendment is $54,608, and includes the parking meter equipment ($34,736) and the additional $414 monthly connectivity fees, which total $19,872 for the remainder of the term of the agreement through November 30, 2029.
The cost for installation of the galvanized poles will be $9,550, bringing the total one-time cost for the new parking meters to $44,286.
City Council approved funding for the additional meters as part of the FY 2025-26 Budget Adoption, as presented in BRR #40.
With the increase to the hourly rate that was effective July 1, 2025, existing parking meters are projected to generate $3.6M in General Fund revenue for FY 2025-26. Depending on utilization, the additional meters on Herondo Street are estimated to increase revenue by another $175,200 to $299,300 annually.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• Agmt - Third Amendment to the Agreement with MacKay Meters, Inc.
• CEQA Exemption Declaration, September 16, 2025
• Agmt - Second Amendment MacKay Meters, Inc., July 23, 2024
• Agmt - First Amendment MacKay Meters, Inc., November 16, 2021
• Agmt - Original Agreement MacKay Meters, Inc., April 21, 2020
• Ord - Ordinance No. 3296-25, August 19, 2025