HomeMy WebLinkAboutIPS Group Parking Meters - Sole Source Justification - 140 PCouncil/Agency Meeting Held: / —/ 7 -12 -
Deferred/Continued to:
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AApped ❑ Conditionally Approved ❑ Denied
Ci le s Si ature
Council Meeting Date: January 17, 2012
Department ID Number: CS 12-003
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Paul Emery, Deputy City Manager/ Interim Director of Community
Services
SUBJECT: Approve Sole -Source Justification for the purchase of IPS Group
parking meters
Statement of Issue:
The Community Services Department is submitting for City Council approval a Sole -Source
Procurement request for the purchase of 140 IPS Group parking meters. Administrative
Regulation No. 229 requires City Council approval for all sole -source procurements over
$50,000.
Financial Impact:
Funds for this purchase are budgeted in account 10040207.83700, Non- Departmental,
Equipment Replacement - Community Services.
Recommended Action: Motion to:
Approve Sole -Source Procurement with IPS Group for the purchase of 140 parking meters
totaling $69,300.00.
Alternative Action(s):
Do not approve the Sole -Source Procurement with IPS Group, and direct staff accordingly.
HB -43- Item 5. - I
REQUEST FOR COUNCIL ACTION
MEETING DATE: 1/17/2012 DEPARTMENT ID NUMBER: CS 12-003
Analysis: In 2007, the City collaborated with IPS Group to pilot a test program of credit
card meters. Twelve credit card meters were placed in the City's Dog Beach parking lot.
This test was very successful and in 2008, the City made an initial purchase of 130 meters
for use in the Dog Beach parking lot and Downtown Business Zones. The City purchased 30
additional meters in 2009, and another 58 meters in 2010. The IPS Group meters have a
proven record of accomplishment in our environment and have been extremely reliable for
the City. The purchase price of the meters has remained constant at $495 per meter plus tax.
The City currently has 230 IPS Group parking meters. Staying with this current vendor will
maintain uniformity of parts, keep merchant accounts to a minimum, and provide better
customer service to the public by not introducing a new meter. The IPS Group credit card
meters are the only single space parking meter that have a proven record in the industry.
They have an integrated online management system, which allows city personnel the ability
to track revenues and trends. The IPS Group meters also notify personnel of any repair
issues that exist in the meter and are solar powered with a guarenteed three-year battery life.
Similar meters require two 9-volt batteries, which is an increase in maintenance over the IPS
Group solar meters.
If another brand were purchased, the City would need to maintain a additional stock of spare
parts and batteries. The public would not be familiar with a new brand and customer service
could be affected. The City would also need to create an additional merchant account with
the bank and assign personnel to track revenues and trends. Other brands available do not
have the proven record of accomplishment in a marine environment, which is required for
use in our community.
Staff has reviewed two additional parking meter vendors, which have credit card capabilities.
IPS Group provides the in the field experience and usage in coastal communities, which both
of these vendors lack.
Environmental Status: Not Applicable
Strategic Plan Goal: Maintain, improve and obtain funding for infrastructure and equipment
Attachment(s):
Item 5. - 2 HB -44-
ATTACHMENT
CITY OF HUNTINGTON BEACH
Sole -Source Justification
(For use on all goods and services acquisitions.)
This justification document consists of two (2) pages. All information must be provided and all questions must be answered. The "Required
Approvals" section must include a date for each signature, as appropriate for the transaction.
R eq"stio,"9",Dep"artme'nt,infornitit-lon
Date: December 14, 2011
Requestor Name: Scott Smith
Division Manager: Same as requestor
(Type names. Do not sign.)
Department: Community Services
Department Head: Paul Emery
(Type names. Do not sign. Must be same as signature below.)
bepci rtm6hfCohtact lnf6rmation',�,�,
Contact Name: Scott Smith
Street Address: 8669 Edison Avenue
Huntington Beach, CA 92646
Telephone: x5287
Fax: 714 374 9580
Shipping Address: Same as above
Cellular phone: 714 292 1661
q R6 rm aired Contact Info' ation
Contractor/Supplier Name: IPS Group
Contractor/Supplier Address: 6195 Cornerstone Court East
Contractor/Supplier City/State/Zip: San Diego, CA 92121
Original Contract Amount:*
Amendment Amount:* (if applicable)
New Contract Amount:*
$74,670.75
$
$
(*Includes original contract and previously
(*Includes original contract and all amendments,
approved amendments)
(*Current amendment only)
including current amendment)
Provide a brief description of the acquisition, including all goods and/or services the contractor will provide:
The IPS group will provide 140 new model 132 credit card meters and product management support for each meter.
Contract Typ e' .,Ind Term, 41,
Contract Type:
Contract Term:
What account number will be used to purchase?
Select One: F-1 Goods
Begin:
Business Unit: 10040207
F-1 Service
Goods & Services
End:
Object Code: 83700
�-
Approvals _---
Required
),Dep nt Head
Denied
Fiscal Services Manager
KI Appr enied
P rector of Finance
rJ Approved ❑Denied
Deputy City Manager
Approved ❑Denied
-lep —
rIN
Signg�luo`
Signature
Signature
Signa e
1'21 j 31 t
/Dafe
bate
Date
Date
(Transactions exceeding $50,000
must be approved by City Council)
CITY OF HUNTINGTON BEACH
Sole Source Justification
(For use on all goods and services acquisitions.)
Complete responses must be provided for all of the following items.
A. THE GOOD/SERVICE REQUESTED IS RESTRICTED TO ONE SUPPLIER FOR THE REASONS STATED BELOW:
1. Why is the acquisition restricted to this goods/services/supplier?
(Explain why the acquisition cannot be competitively bid.)
The City currently has 230 IPS Group parking meters in the system. Staying with this current vendor will
maintain uniformity of parts, keep merchant accounts to a minimum, and provide better customer service
to the public by not introducing a new meter.
2. Provide the background of events leading to this acquisition.
In 2007, the City collaborated with IPS Group to pilot a test program of credit card meters. Twelve credit
card meters were placed in the City's Dog Beach parking lot. This test was very successful and the City
made an initial purchase of 130 meters in 2008, for use in the Dog Beach parking lot and Downtown
Business Zones. The City purchased 30 additional meters in 2009, and another 58 meters in 2010. The
IPS Group meters have a proven record of accomplishment in our environment and have been extremely
reliable for the City. There were a few issues early on in testing, the IPS Group handled these issues
promptly with replacement meters at no charge to the City.
3. Describe the uniqueness of the acquisition (why was the good/service/supplier chosen?).
The IPS Group credit card meters are the only single space parking meter that have a proven track record
in the industry. They have an integrated online management system, which allows city personnel the
ability to keep track of revenue and trends. The IPS Group meters also notify personnel of any repair
issues that exist in the meter and are solar powered with a guarenteed three-year battery life. Similar
meters require two 9-volt batteries, which is an increase in maintenance over the IPS Group solar meters.
4. What are the consequences of not purchasing the goods/services or contracting with the proposed
supplier?
If another brand were purchased, the City would need to maintain a separate stock of spare parts and
batteries. The public would not be familiar with a new brand and customer service could be affected. The
City would also need to create an additional merchant account with the bank and assign personnel to
track revenues and trends. Other brands available do not have the proven record of accomplishment in a
marine environment, which is required for use in our community.
S. What market research was conducted to substantiate no competition, including evaluation of other items
considered?
(Provide a narrative of your efforts to identify other similar or appropriate goods/services, including a summary of how the department
concluded that such alternatives are either inappropriate or unavailable. The names and addresses of suppliers contacted and the reasons
for not considering them must be included OR an explanation of why the survey or effort to identify other goods/services was not
performed.)
Staff has reviewed two additional parking meter vendors, which have credit card capabilities. IPS Group
provides the in the field experience and usage in coastal communities, which both of these vendors lack.
1) POM Inc.
200 S. Elmira Avenue
Russellville, AR 72802-9626
497-968-2880
The POM Inc. credit card feature is an add on device made by Parkel Inc., which is placed in-between the
meter and collection housing with a card reader, wireless modem, power supply, and button interface.
This design has recently been introduced in October 2011, and lacks the onsite testing that is necessary
in our marine environment. It is also a battery dependant unit, which would require increased
maintenance over the IPS Group solar design. These meters are not currently being used by any agency.
2) Duncan Solutions Inc.
633 W. Wisconsin Avenue, Suite 600
Milwaukee, WI 53203-1907
888-993-8622
The Duncan Solutions Inc. credit card meter is also new to the market and lacks several key features that
are necessary for our environment. The meters are battery powered, not solar, which would be an added
expense of batteries and staff time to replace them. Duncan Solutions Inc. currently states that they have
several hundred of these meters installed, however they have not been installed in a marine environment.
They are currently in discussion with other cities located in California, however they have declined to
divulge any information on where these cities are located or where they will be placed in these cities.
B. PRICE ANALYSIS
1. How was the price offered determined to be fair and reasonable?
(Explain what the basis was for comparison and include cost analyses as applicable.)
The POM Inc. credit card insert is $350 dollars plus the cost of the meter head at $250 for a total price of
$600.
The Duncan Solutions Inc. credit card meter is $495.
The IPS Group meter is competitively priced, comparable to Duncan Solutions Inc.
2. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier.
With this purchase from IPS Group, the City will save $9329.25 over the cost of POM Inc. credit card
meters. Though the Duncan Solutions Inc. meter is priced the same as IPS Group meter, there will be an
overall cost savings by continuing with the IPS Group meter due to the familiarity of staff with parts and
function of the meters. There is an indirect cost saving by keeping merchant accounts to a minimum, this
would not require the Finance personnel to track an additional merchant account.
Remit completed form to: City of Huntington Beach — Purchasing Division
2000 Main Street, Huntington Beach, CA 92648-2702