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  Agenda Item   24.    
City Council Meeting
Meeting Date: 09/21/2021  
FROM: Bill Gallardo

Subject:
Software Service Agreement with iNet, Inc (dba iParq) for an Online Parking Permit System
RECOMMENDATION
Approve the Software as a Service Agreement (SaaS) between the City of Brea and iNet, Inc. (dba iParq) for an online parking permit system in an annual amount not-to-exceed $25,000 for a term of one year with three optional one-year extensions and authorize the Community Development Director or designee to execute, administer and take the necessary actions to implement the agreement.
BACKGROUND/DISCUSSION
The City of Brea established an overnight parking program in 1951 which restricts the parking of vehicles on public streets between the hours of 2:00 am and 6:00 am. This program is managed in the Community Development Department and can be very time consuming for staff to administer as it requires verification of several site-specific conditions.

In 2009, as part of our internal initiatives to find further efficiencies for providing services, staff initiated a pilot program to automate the overnight parking permit program. We have worked with our vendor, iParq (iParq.com), over that period to use its web tools and online permitting technology to greatly reduce in-house staff resources necessary to manage and implement this program, as well as make it easier for the customer to perform many permitting tasks online, at their convenience.

Historically, approximately 2,500 parking permits are sold each year in the City of Brea. Implementing the iParq online program has resulted in 2,000 permits being sold online which is equivalent to 80 percent. The pilot program proved to be a success and the Community Development Department continues the use of iParq to offer the community easy access to purchasing parking permits online.

Our recent discussions with iParq have identified the ability for cost savings as compared to costs for the technology and permitting tools we have used over the past years of using the iParq system. A Software as a Service Agreement with iParq is proposed to memorialize terms and details going forward. As an authorized contractor under the National Cooperative Purchasing Alliance (NCPA) under federal legislation, iParq complies with the necessary tests for procurement of services without the need to seek further vendors.  Simply, this authorization is only provided to vendors which have achieved competitive bidding criteria resulting in savings to municipal agencies. Additionally, the nature of this service is specialized and finding a vendor to meet Brea’s specific needs could prove challenging.

The updated contract adjusts the online permit base price to $3.36 per transaction in lieu of the existing $4.95 fee. The new contract will provide cost savings, as compared to our current pricing, and is projected to result in an estimated annual savings of $3,128 as compared to current pricing. The reduced rates are largely due to iParq’s participation in the NCPA program and locking in rates via the proposed SaaS. The NCPA certification provides the City with a service at a competitive price and saves the City time from going through the formal procurement process, resulting in additional cost savings.

The overnight parking permit fee is currently $30 a year when purchased in-person at City Hall or $20 plus a $1 shipping fee if purchased online. Annually, parking permits bring in approximately $57,000. Under current pricing, the cost is approximately $74,000 and consists of iParq related products and services (at the current rate) as well as City costs for postage and administration of the program.  The savings realized under the proposed SaaS will help offset staff related costs and overhead associated with administering the overnight parking permit program which are not covered by the current fee.

The table below summarizes the changes staff was able to negotiate in costs for iParq fulfillment services. This is the only portion that affects the end user as the overhead and administration fees remain the same. In addition to the per permit savings, iParq will further customize the City’s existing parking website portal to better serve the community. The table below estimates permit transactions during a typical year.
 
Issuance method Old Contract Proposed Contract Savings or (Expense)
100 permits
Over the counter
$199 $251 (52)
2000 permits
Online
$9,900 $6,720 $3,180
Total $10,099 $6,971 $3,128

There will be no increases in costs to residents for the purchase of an overnight parking permit. The current fees adopted per fee schedule are $21.00 for online purchase and $30.00 for in-house purchase at the Civic Center. 
COMMISSION/COMMITTEE RECOMMENDATION
The Finance Committee discussed this Agreement at their meeting on June 8, 2021 and recommended approval. 
FISCAL IMPACT/SUMMARY
The cost of services and products of the iParq SaaS will be reimbursed by overnight parking permit revenues with no impact to the General Fund.
 
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by: Gabriel Linares, Deputy Director of Community Development and Building & Safety Manager
Concurrence:
 
Attachments
Sole Source Justification
Service Agreement Proposal Attachment A
iParq Agreement

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