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HomeMy WebLinkAboutItem 09b - Citation and Parking Permit Processing Services STAFF REPORT ADMINISTRATIVE SERVICES DEPARTMENT DATE: May 19, 2026 TO: Honorable Mayor and City Council FROM: Henry Chen, Administrative Services Director SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH PHOENIX GROUP INFORMATION SYSTEMS FOR CITATION AND PARKING PERMIT PROCESSING FOR $83,000 ANNUALLY CEQA: Not a Project Recommendation: Approve SUMMARY The City issued a Request for Proposal (“RFP”) seeking a vendor to facilitate the City’s citation and parking permit process. After reviewing all proposals, staff determined that Phoenix Group Information Systems (“Phoenix Group”) submitted the lowest responsive and responsible bid. Phoenix Group has successfully served as the citation processing company for the City for many years and offered a pricing structure that was substantially lower than other firms. It is recommended that the City Council authorize the City Manager to execute a Professional Services Agreement with the Phoenix Group for citation and parking permit processing services for a three-year term, with the option to renew for two additional one-year terms, at an annual cost of approximately $83,000. It is further recommended that the City Council delegate the authority to approve future extensions of the agreement to the City Manager, without having to return to the City Council for approval, provided that any changes to the agreement stay within standard inflationary limits and sufficient funds are available in the adopted budget. BACKGROUND Approximately 15,500 parking citations, 4,500 parking permits, and 350 administrative citations are issued annually by the City, generating annual revenues Citation and Parking Permit Processing May 19, 2026 Page 2 of 5 of about $1 million. Parking citation processing and overnight parking permit services are currently provided through a contract with Phoenix Group. With the expiration of the agreement, an opportunity was identified to evaluate available technological advancements that could enhance service delivery. Therefore, a Request for Proposal (“RFP”) was issued to companies known to provide these services. Improvements to the permit purchasing experience were sought, along with increased efficiency in the processing of citations and parking permits by staff. DISCUSSION The process of purchasing parking permits was identified in the RFP as a key priority for enhancing service to residents. Opportunities to streamline the application and payment procedures were evaluated, with emphasis placed on simplifying user interactions and reducing processing time. Overnight parking permits currently may be purchased by residents either in person at City Hall or through an online application process. In both cases, a physical sticker is mailed by the City for each approved permit and must be affixed to the vehicle. As part of the RFP, a transition from a physical parking sticker system to the use of license plate reader (“LPR”) technology was proposed. Under this approach, permit information is electronically linked to a vehicle’s license plate, eliminating the need for visible decals and reducing administrative processing. The transition to this technology would also allow for a more flexible schedule to purchase parking permits. Now, parking permits could be issued for a 12-month period from the month of purchase, rather than expire at the end of the calendar year. As a result, renewal periods would be distributed throughout the year, and the influx at City Hall that typically occurs each December would be eliminated. This approach is similar to a transition that was enacted for the City’s business licensing process, which successfully eased staff impacts and provided a better customer service experience overall. In addition to the benefits provided to residents purchasing overnight parking permits, added benefits would be realized through the transition to LPR technology by improving the efficiency and accuracy of parking enforcement operations. Permit and registration information would be verified electronically, in real time, allowing immediate access to permit status and vehicle information by enforcement Citation and Parking Permit Processing May 19, 2026 Page 3 of 5 personnel. The need for manual verification would be reduced, and the potential for human error would be minimized. In addition, citation issuance would be streamlined through automated license plate scanning, allowing vehicles in violation to be identified more quickly and consistently. More reliable citation processing and reporting would be supported through improved data accuracy and integrated recordkeeping. The established procedures related to citation processing, parking permit administration, written notifications, appeals, administrative hearings, and collections would remain in place and continue to be administered in the same manner. Existing timelines, enforcement procedures, and due process requirements would continue to be followed, and no significant changes to the overall operation or administration of these services would be implemented. In response to the RFP, proposals were received from four firms by the City. Proposals were evaluated by staff based on the criteria identified in the RFP, including qualifications, experience, technical capabilities, customer service, implementation approach, and overall cost-effectiveness. Submitted proposals were reviewed for responsiveness and compliance with the City’s purchasing requirements. Following the evaluation process, Phoenix Group was ranked as the most qualified firm. Cost proposals submitted by each bidder were reviewed and evaluated as part of the overall scoring process. Because the total cost of services may vary depending on the number and type of transactions processed, pricing structures were analyzed based on estimated annual citation volumes, permit issuance activity, payment processing, collections, and related administrative services. Proposed fees for individual transaction types, implementation costs, and ongoing service charges were compared to evaluate the overall cost. Cost proposals were considered in conjunction with each bidder’s qualifications, technical capabilities, and service RANK FIRM SCORE 1 Phoenix Group 97 2 Turbo Data 85 3 T2 80 4 IPS 77 Citation and Parking Permit Processing May 19, 2026 Page 4 of 5 approach to determine which proposal provided the best overall value to the City. The table below compares cost structures for the four firms. Phoenix Group’s proposal was half the price of the closest competing firm. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), under Section 15061(b)(3) of the CEQA Guidelines, as it can be seen with certainty that it will have no impact on the environment. Phoenix Group Turbo Data T2 IPS Citations Daily Citation Processing 24,800$ 23,500$ 44,900$ 29,600$ Handheld Ticket Writer Annual Costs Included 9,000 17,300 15,900 Online Payment Process 1,500 13,200 11,600 11,600 Online Payment Setup - - - 1,500 Estimated Annual Costs 26,300$ 45,700$ 73,800$ 57,100$ Parking Permit Startup Costs -$ 2,000$ -$ 6,500$ Annual costs 4,700 7,200 - 12,000 Renewal Notices - 9,000 - - Online Payment Process 1,200 10,800 9,500 9,500 Estimated Parking Permit Annual Costs 5,900$ 29,000$ 9,500$ 28,000$ Administrative Citations Annual Costs 2,800$ 3,100$ 8,700$ 1,000$ Estimated Citation, Parking Permit & Admin Citations Costs 35,000$ 77,800$ 92,000$ 86,100$ Other Charges Credit Card Charges 2,700$ 24,000$ 11,600$ 21,100$ Delinquent Citation Processing 34,000 56,700 56,700 82,400 FTB Collections 11,300 10,300 17,200 24,100 Estimated Other Charges 48,000$ 91,000$ 85,500$ 127,600$ ESTIMATED TOTAL ANNUAL COST 83,000$ 168,800$ 177,500$ 213,700$ Estimated Costs for Citations and Permits Citation and Parking Permit Processing May 19, 2026 Page 5 of 5 FISCAL IMPACT The annual contract cost is not expected to exceed $83,000, although the total amount may vary depending on the number of transactions processed and the level of delinquent collections. Funding for this amount has been included in the Fiscal Year 2026–27 Operating Budget. RECOMMENDATION It is recommended the City Council determine this action does not constitute a project under the California Environmental Quality Act (“CEQA”); and authorize the City Manager to execute a Professional Services Agreement with Phoenix Group Information Systems for citation and parking permit processing services for three years with the option of renewing two (2) additional one-year terms for approximately $83,000 annually. It is further recommended that the City Council delegate the authority to approve future extensions of the agreement to the City Manager, without having to return to the City Council for subsequent approval, provided that any changes to the agreement stay within standard inflationary limits and sufficient funds are available in the adopted budget.