Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Service to modify a professional services contract with IPS Group, Inc., to extend the current Parking Meter Systems contract for one year with the option of three additional one year term extensions. It also authorizes adding additional funding to the contract.
Ordinance 1041-2010 authorized the execution of the original contract, providing the City with the ability to replace its entire inventory of over 4,000 parking meters, which had exceeded their designed service life, and allowed for expansion of the meter program. The contract terms included fixed costs for the parking meters and related services over the five-year contract period and were subject to the availability of funding and the approval of City Council. Ordinance 0582-2015 renewed the contract and extended the expiration to September 30, 2020. Ordinance 1217-2018 extended the contract term until March 31, 2021. Ordinance 0850-2020 added to the scope of services to include additional data collection requirements and provided funding for the annual meter management system as established under the contract, which currently expires March 31, 2021.
A bidding waiver is requested to extend the current contract due to diminished revenue and unanticipated rapid changes in the parking industry brought forth by the current Covid-19 pandemic that would make equipment replacement and system set-up charges cost prohibitive at this time. This contract modification will provide a one year extension of the existing contract from the date of execution to March 31, 2022, with the option of renewing the contract for three additional one year terms and will provide funding for the annual meter management system ($600,000.00) as established under the contract. The management, equipment, and support for the City's entire parking meter system is proprietary to IPS Group, Inc, meeting the sole source procurement provision of City Code Chaper 329. Future contracts and modifications shall be subject to approved appropriations and City Council approval.
Original contract: $749,965.00 (Ord. 1041-2010, EL010977)
Modification 1: $521,000.00 (Ord. 0360-2011, EL011657)
Modification 2: $385,000.00 (Ord. 0710-2012, EL012678)
Modification 3: $500,000.00 (Ord. 0775-2012, EL012734)
Modification 4: $73,500.00 (Ord. 2022-2012, EL013622)
Modification 5: $529,000.00 (Ord. 0934-2013, EL014228)
Modification 6: $935,000.00 (Ord. 1738-2013, EL014727)
Modification 7: $1,178,200.00 (Ord. 0829-2014, EA012012, EL016066)
Modification 8: $40,000.00 (Ord. 1270-2014, EL016067)
Modification 9: $50,000.00 (Ord. 2406-2014, EL016366)
Modification 10: $720,000.00 (Ord. 0582-2015, EL017395)
Modification 11: $785,000.00 (Ord. 2587-2016, PO046459)
Modification 12: $695,700.00 (Ord. 2141-2017, PO082631)
Modification 13: $788,000.00 (Ord. 1217-2018, PO138890, PO140768)
Modification 14: $600,000.00 (Ord. 0174-2019, PO158910)
Modification 15: $300,000.00 (Ord. 3037-2019, PO205406)
Modification 16: $400,000.00 (Ord. 0850-2020, PO227286)
Modification 17: $600,000.00 (This Ordinance)
The total contract amount: $9,850,365.00 including all modifications:
Searches in the System for Award Management (Federal) and the Findings for Recovery list (State) produced no findings against IPS Group, Inc.
This legislation authorizes the transfer of appropriation of $300,000.00 between subfunds within the Parking Fund 2268 to provide the authority necessary for the expenditure.
2. CONTRACT COMPLIANCE
IPS Group’s contract compliance number is CC001842 and expires 09/16/2022.
3. FISCAL IMPACT
Funds in the amount of $600,000.00 are available with the Parking Meter Operating Fund, Fund 2268. The transfer of appropriation in the amount of $300,000.00 between subfunds is necessary to fund this expenditure. This legislation expends $90,000.00 from the balance of the Parking Meter Main Subfund (Subfund 226801); $210,000.00 from the balance of the Parking Meter Short North Parking Benefit District Operating Subfund (Subfund 226803); and $300,000.00 from the balance of the Parking Meter Downtown Parking Benefit District Operating Subfund (Subfund 226805).
4. EMERGENCY DESIGNATION
Emergency action is requested so that the City can continue to receive parts and necessary management services with IPS Group, Inc., without interruption, thereby preserving the public health, peace, property, safety, and welfare of the travelling public.
Title
To authorize the Director of Public Service to modify an existing contract with IPS Group, Inc., by extending the existing contract term with the option of renewal terms and by increasing the authorized expenditure amount to provide parking meter equipment, annual meter management, components, and services for the City's Parking Meter Program; to waive the formal competitive bidding requirements of Columbus City Code; to authorize the transfer of appropriation within the Parking Meter Operating Fund; to authorize the expenditure of up to $600,000.00 from the Parking Meter Operating Fund; and to declare an emergency. ($600,000.00)
Body
WHEREAS, Ordinance 1041-2010 authorized the Director of Public Service to enter into contract EL010977 with IPS Group, Inc., and authorized the expenditure of $749,965.00 for the purchase of single space parking meters, ancillary equipment, and management and training services; and
WHEREAS, Ordinance 0360-2011 authorized the Director of Public Service to execute a planned contract modification in the amount of $521,000.00 for approximately 1,000 meter mechanisms, associated extended warranty costs, and related components and services; and
WHEREAS, Ordinance 0710-2012 authorized the Director of Public Service to execute a planned contract modification in the amount of $385,000.00 for management services necessary for the operation of the Parking Meter Program in 2012; and
WHEREAS, Ordinance 0775-2012 authorized the Director of Public Service to execute a planned contract modification in the amount of $500,000.00 for approximately 1,000 meter mechanisms, associated extended warranty costs, and related components and services; and
WHEREAS, Ordinance 2022-2012 authorized the Director of Public Service to execute a planned contract modification in the amount of $73,500.00 for additional meter mechanisms and related components and services; and
WHEREAS, Ordinance 0934-2013 authorized the Director of Public Service to execute a planned contract modification in the amount of $529,000.00 for management services necessary for the operation of the Parking Meter Program in 2013 ; and
WHEREAS, Ordinance 1738-2013 authorized the Director of Public Service to execute a planned contract modification in the amount of $935,000.00 for meter mechanisms and components; and
WHEREAS, Ordinance 0829-2014 authorized the Director of Public Service to execute a planned contract modification in the amount of $1,178,200.00 for meter mechanisms, components and services; and
WHEREAS, Ordinance 1270-2014 authorized the Director of Public Service to execute a planned contract modification in the amount of $40,000.00 for meter mechanisms, components and services; and
WHEREAS, Ordinance 2406-2014 authorized the Director of Public Service to execute a planned contract modification in the amount of $50,000.00 for meter mechanisms, components and services; and
WHEREAS, Ordinance 0582-2015 authorized the Director of Public Service to execute a planned contract modification in the amount of $720,000.00 for meter mechanisms, components and services and extended the existing contract through September 30, 2020 under the sole source procurement provisions of Columbus City Code Chapter 329, as the materials and services needed to maintain the parking meters were and are proprietary and only available from IPS Group, Inc.
WHEREAS, Ordinance 2587-2016 authorized the Director of Public Service to execute a planned contract modification in the amount $785,000.00 for meter mechanisms, components and services; and
WHEREAS, Ordinance 2141-2017 authorized the Director of Public Service to execute a planned contract modification in the amount of $695,700.00 for meter mechanisms, components and services; and
WHEREAS, Ordinance 1217-2018 authorized the Director of Public Service to execute a planned contract modification in the amount of $788,000.00 for meter mechanisms, components and services; and extended the existing contract through March 31, 2021; and
WHEREAS, Ordinance 0174-2019 authorized the Director of Public Service to execute a planned contract modification in the amount of $600,000.00 for meter mechanisms, components and services; and
WHEREAS, Ordinance 3037-2019 authorized the Director of Public Service to execute a planned contract modification in the amount of $300,000.00 for meter mechanisms, components and services; and
WHEREAS, Ordinance 0850-2020 authorized the Director of Public Service to execute a planned contract modification in the amount of $400,000.00 for meter mechanisms, components and services; and
WHEREAS, all contract renewals have been used and the materials and services needed to maintain the parking meter system are only available from the manufacturer; and
WHEREAS, due to diminished parking revenue and unanticipated rapid changes in the parking industry brought forth by the current Covid-19 pandemic, equipment replacement and system set-up charges are cost prohibitive at this time; and
WHEREAS, it is necessary to extend the current contract for one year to March 31, 2022, with the option of three one-year renewals where future contracts shall be subject to approved appropriations and City Council approval; and
WHEREAS, it is necessary to transfer $300,000.00 in appropriation between subfunds in the Parking Meter Operating fund, Fund 2268; and
WHEREAS, a waiver of the competitive bidding requirements of Columbus City Code is required to enter into a contract modification with IPS Group, Inc., to extend the contract for parking meter equipment, annual meter management, components, and services; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Service in that it is immediately necessary to authorize the Director to enter into a contract modification to fund the existing contract to continue to receive parts and necessary management services without interruption, thereby preserving the public health, peace, property, safety and welfare; NOW, THEREFORE:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Service be, and hereby is, authorized to enter into a contract modification with IPS Group, Inc., 7737 Kenamar Court, San Diego, California, 92121, to extend the Parking Meter Services contract for one year to March 31, 2022, with the option of renewing the contract for three additional one year terms and to add funding in the amount of up to $600,000.00, or so much thereof as may be needed for the purposes of paying for single and multi-space parking meter annual management systems, mechanisms, components, and services.
SECTION 2. That this Council finds that it is in the best interest of the City of Columbus to waive the formal competitive bidding requirements of City Code Chapter 329 in order to modify this contract.
SECTION 3. That the transfer of $300,000.00 in appropriation, or so much thereof as may be needed, is hereby authorized within Fund 2268 (Parking Meter Fund), from Subfund 226801 (Main Subfund), Dept-Div 5906 (Parking Services), Object Class 03 (Purchased Services) to Subfund 226805 (Downtown Parking Benefit District Subfund), Dept-Div 5906 (Parking Services), Object Class 03 (Purchased Services), per the accounting codes in the attachment to this ordinance.
SECTION 4. That the expenditure of $90,000.00, or so much thereof as may be needed, is hereby authorized in Fund 2268 (Parking Meter Fund), Subfund 226801 (Main Subfund), Dept-Div 5906 (Parking Services), in Object Class 03 (Purchased Services), per the accounting codes in the attachment to this ordinance.
SECTION 5. That the expenditure of $210,000.00, or so much thereof as may be needed, is hereby authorized in Fund 2268 (Parking Meter Fund), Subfund 226803 (Short North Parking Benefit District Operating Subfund), Dept-Div 5906 (Parking Services), in Object Class 03 (Purchased Services) per the accounting codes in the attachment to this ordinance.
SECTION 6. That the expenditure of $300,000.00, or so much thereof as may be needed, is hereby authorized in Fund 2268 (Parking Meter Fund), Subfund 226805 (Downtown Parking Benefit District Operating Subfund), Dept-Div 5906 (Parking Services), in Object Class 03 (Purchased Services) per the accounting codes in the attachment to this ordinance.
SECTION 7. Funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 8. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.