To: MAYOR AND CITY COUNCIL
From: STEPHEN SPRENGEL, CHIEF OF POLICE
TITLE
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APPROVE AN AGREEMENT WITH PARKMOBILE, LLC TO CONTINUE THE MOBILE PHONE PARKING PAYMENT APPLICATION SERVICE AS AN OPTION FOR THE PUBLIC TO PAY PARKING METER AND PAY STATION FEES AT A COST TO THE CITY OF $0.20 + 3% OF EACH TRANSACTION AMOUNT (ESTIMATED TO TOTAL APPROXIMATELY $40,000 PER YEAR), WITH AN ANNUAL SERVICE FEE INCREASE, FOR THE TERM AUGUST 4, 2026 THROUGH AUGUST 3, 2029, WITH TWO AUTOMATIC YEARLY RENEWALS UNLESS TERMINATED BY EITHER PARTY
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EXECUTIVE SUMMARY
Since 2021, the City has contracted with Parkmobile, LLC (Parkmobile) to provide a mobile phone parking meter payment service, as a way to offer the public an additional option when paying for parking. The new Agreement will include updated terms for data security, indemnification, and fees. The initial term is three years, with an option for two automatic yearly renewals, unless terminated by either party. The City may terminate the Agreement at any time during the initial term of the agreement with a 90-day written notice to Parkmobile, or during any renewal term periods with a 60-day written notice.
Under the terms of the Agreement, Parkmobile's service fee is $0.20 + 3% of the per transaction amount. The service fee would increase annually by either 10%, or the percentage equal to the average increase in the Consumer Price Index (CPI) over the prior 12-month period, whichever is greater. The total annual service fee paid by the City to Parkmobile is estimated to be $40,000 in year one of the agreement and is expected to grow by roughly $4,000 each year thereafter.
BACKGROUND
Redondo Beach has approximately 1,325 metered parking spaces serviced by Mackay smart-meters, which can accept coin, credit card, and mobile phone payment using a meter payment application service. There are an additional 1,300 parking spaces in the Pier and Harbor area, serviced by pay stations that can also accept mobile pho...
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