To: MAYOR AND CITY COUNCIL
From: JOE HOFFMAN, CHIEF OF POLICE
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APPROVE A SECOND AMENDMENT TO THE AGREEMENT WITH PAYBYPHONE TECHNOLOGIES, INC. FOR THEIR MOBILE PARKING PAYMENT APPLICATION SERVICE TO INCREASE THE PER TRANSACTION CONVENIENCE FEE TO THE FOLLOWING AMOUNTS: $0.30 EFFECTIVE APRIL 16, 2024, $0.32 EFFECTIVE APRIL 16, 2025, AND $0.45 EFFECTIVE APRIL 16, 2026, AND TO ESTABLISH A SMS TRANSACTION FEE OF $0.20 PER TEXT MESSAGE EFFECTIVE APRIL 16, 2024 FOR USE OF THE OPT-IN TEXT MESSAGE REMINDER FEATURE, WITH NO CHANGE TO THE EXISTING AGREEMENT TERM WHICH ENDS OCTOBER 18, 2026
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EXECUTIVE SUMMARY
In 2020, the City Council directed staff to explore the possibility of improving and expanding mobile parking payment application (app) options across the City. A request for proposals (RFP) was issued, and, in 2021, agreements were approved with ParkMobile, LLC and PayByPhone Technologies.
The mobile parking payment application companies charge a convenience fee for each transaction, which is added to the customer's cost of parking, and incorporated into the parking fee revenue collected by the City. The company then sends monthly invoices to the City to remit the convenience fee portion of the revenue. The second amendment would set convenience fees (which are currently $0.25) through 2026, to $0.30 effective April 16, 2024, $0.32 effective April 16, 2025, and $0.45 effective April 16, 2026.
Additionally, the second amendment incorporates a new SMS transaction fee of $0.20 per text message, should the customer opt-in to text messages for payment confirmation and expiring parking meter reminders. Similar to the convenience fee, the SMS transaction fee would be incorporated into the overall parking meter fee collected by the City, and then remitted to PayByPhone. The SMS transaction fee is optional for the customer, and only those opting-in to the SMS text message service would be charged this fee.
BACKGROUND
Redondo Beach has approxim...
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