REPORT TO THE CITY COUNCIL FROM: JENNIFER K. CLARK, AICP, Director Planning & Development Department BY: MELISSA ALMAGUER, Parking Division Manager Planning & Development Department SUBJECT ..Title Actions pertaining to IPS Group, Inc. as the Sole Source Original Equipment Manufacturer (OEM) for parking meter equipment, materials, supplies and components: 1. ***RESOLUTION - Authorizing an exception to the formal bidding procedures and award a Sole Source Product Purchase Contract with IPS Group, Inc. (Subject to Mayor's Veto) 2. Award a multi-year Sole Source Product Purchase Contract with IPS Group, Inc. for three years with provisions with the option for three one-year extensions thereafter, in an amount not to exceed $1,366,000 per year. 3. Authorize the Purchasing Manager or their designee, to execute all documents related to the Sole Source Product Purchase Contract with IPS Group, Inc. ..Body RECOMMENDATION It is recommended that the City Council adopt the Resolution authorizing an exception to the formal bidding procedures and award a Sole Source Product Purchase Contract with IPS Group, Inc., award a multi-year Sole Product Purchase contract with IPS Group, Inc. and authorize the Purchasing Manager to execute a multi-year sole source product purchase contract with IPS Group, Inc. in an amount not to exceed $1,366,000 for a three-year term, with provisions for three optional one-year extensions. EXECUTIVE SUMMARY The Planning and Development Department, Parking Division, requests approval of a sole source product purchase contract with IPS Group, Inc. (IPS) for the continued procurement of parking meter equipment, replacement parts, and related components necessary to maintain the City's existing IPS single-space parking meters. The proposed contract has a total estimated value of $1,366,000 over an initial three-year term, with provisions for three optional one-year extensions. IPS Group, Inc. is the sole manufacturer and authorized provider of the proprietary components required for compatibility with the City's existing parking meter infrastructure. These components include IPS-specific lithium-ion battery packs, coin validators, card readers, keypad assemblies, as well as any other IPS-manufactured spare parts. Due to the required products only being supplied by IPS Group, Inc., staff is requesting Council approval of a sole source exception to the City's competitive bidding requirements pursuant to the Fresno City Charter Section 1208(a)(5)(iv). BACKGROUND The City of Fresno Parking Division currently operates approximately 2,000 IPS single-space parking meters throughout the city. To ensure continued operation and reliability of this infrastructure, the City must routinely purchase replacement original equipment manufacturer (OEM) components and specialized parts manufactured specifically for the IPS parking meter system. The required replacement components include IPS-manufactured lithium-ion battery packs, coin validators, card readers, keypad assemblies, and other proprietary parts necessary to maintain compatibility with the City's existing parking meter hardware systems. Since these products are exclusive to IPS Group, Inc., no alternative vendors are capable of supplying compatible equipment for the current parking meter network in place. Staff evaluated available options and determined that IPS Group, Inc. is the only vendor that's capable of supplying the components required to maintain the City's existing parking meter system. Utilizing non-original equipment components or incompatible components could compromise the meter functionality, create operational failures, void manufacturer warranty or support, and negatively impact parking revenue collection and customer service. The proposed agreement establishes a three-year term with provisions for three optional one-year extensions and a total estimated contract amount of $1,366,000. The Parking division has been satisfied with IPS Group's performance, product reliability, and ongoing support of the City's parking meter infrastructure. Approval of this agreement will allow staff to continue maintaining uninterrupted parking meter operations and avoid delays associated with equipment failures or incompatible replacement parts. ENVIRONMENTAL FINDINGS Staff has determined this project is exempt under CEQA Guideline 15301 Class 1, which provides exemption for the operation, repair, maintenance, permitting, leasing, licensing, or other minor alteration of existing public structures and facilities, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. The proposed requirements contract is within the Class 1 exemption because it involves negligible or no expansion of use of facilities or structures. LOCAL PREFERENCE Local preference did not affect the award of this sole source because IPS Group, Inc. is the sole manufacturer and provider of the required parking meter equipment and components necessary for compatibility with the City's existing parking meter system. FISCAL IMPACT The services will be funded with existing appropriations in the Parking Division's budget. Attachments: Resolution - IPS Group, Inc. Sole Source Sole Source Product Contract with IPS Group, Inc.