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A Resolution Approving a Second Amendment to a Professional Services Agreement and Software License and Support Agreement Between Passport Labs, Inc., a Division of Passport Parking, and the Village of Oak Park to Provide Payment Merchant Solutions for the Village's Flowbird (Cale) Pay Stations and Authorizing Its Execution.
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Introduction
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This Second Amendment to the Agreement with Passport Labs, Inc. provides for merchant processing services for the Village's Flowbird (Cale) pay stations to be completed by Passport, resulting in cost-savings and reporting efficiencies.
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Recommended Action
Adopt the Resolution.
Prior Board Action
• On December 6, 2021, the Village Board approved Resolution 21-305, a Resolution Approving an Amendment to the Professional Services Agreement and Software License and Support Agreement Between Passport Labs, Inc. a Division of Passport Parking, and the Village of Oak Park to Include a Delivery Timeline Schedule and Extend the Term of the Agreement for an Additional Three (3) Years and Authorizing Its Execution.
• On August 2, 2021, the Village Board approved Resolution 21-170, a Resolution Approving an Extension of a Professional Services Agreement and Software License and Support Agreement Between Passport Labs, Inc. a Division of Passport Parking, and the Village of Oak Park.
• On January 19, 2021, the Village Board authorized a Resolution Approving Expenditures for Annual Unified Parking Citation and Permit Management System Services with Passport Labs, Inc., in an Amount Not to Exceed $250,000 for Fiscal Year 2021 Pursuant to the Professional Services Agreement with Passport Labs, Inc., dated September 6, 2018.
• On September 17, 2018, the Village Board approved ORD 18-402, an Ordinance Amending Parking Permit Rates, Vehicle License Fees, Penalties, and the Immobilization Device Removal Fee as Set Forth in Chapter 15 ("Motor Vehicles and Traffic") and Chapter 29 ("Administrative Adjudication") of the Oak Park Village Code as Reviewed at the September 4, 2018 Regular Meeting.
• On September 4, 2018, the Village Board approved RES 18-972, a Resolution to Approve a Contractual Services Agreement and Software License and Support Agreement between Passport Labs, Inc., a Division of Passport Parking, and the Village of Oak Park to Provide a New Software Solution for a Unified Parking Citation and Permit Management System and Processing Technology for all Village Parking Permitting, Parking Passes, Vehicle Sticker Licensing, Mobile Parking Payment, Enforcement, and Adjudication Services.
• On July 16, 2018, staff presented an updated to the Village Board regarding intentions to proceed with Passport following the Request for Proposals (RFP) process.
• On November 21, 2016, the Village Board approved RES 16-371, a Resolution Approving a Professional Services Agreement with Dixon Resources Unlimited to Review Requirements for a Unified Parking, Permits, Citations Technology System and Develop a Request for Proposals in a Total Amount Not to Exceed $59,694 and Authorizing Its Execution.
• On January 21, 2014, the Village Board approved RES 14-21, a Resolution Approving a Services Agreement with Passport Parking, Inc. and Authorizing Its Execution.
Background
The Village's parking system has one hundred and fifty-five (155) Flowbird (Cale) pay stations that accept coin and credit/debit card payment for parking sessions within parking lots and on-street parking spaces. Payment for parking sessions can also be made through the Park Oak Park mobile application. Currently, merchant processing for credit/debit card transactions at pay stations is administered by Heartland Payment Systems which is the Village's merchant processing solution for the majority of its points of sales, including the Village Hall cashier and Village-owned parking structures.
The proposed contract amendment will provide the necessary professional services, including architecture, design, implementation, and information transfer services to provide for a fully integrated payment processing solution powered by Passport Labs, Inc. In addition to the estimated cost savings for the Village, switching merchant processing from Heartland to Passport will result in a robust set of financial and management reports that streamline reconciliation, revenue recognition, and dispute management activities.
An interdepartmental review of the proposed change was done by the Development Services Department, Information Technology Department, and Law Department to consider the data security and legality of this switch. Staff supports the amended contract and believes the change to be consistent with Village practice of prioritizing protecting individual data and privacy, community safety, and efficient delivery of services.
Timing Considerations
There is no time constraint related to this item, however the Village will realize cost savings and improved reporting, if approved.
Budget Impact
Merchant processing fees are accounted for in GL # 5060-43770-101-530675 (Bank Charges). Staff estimates annualized savings in FY 25 of approximately $20,000.00.
Staffing Impact
Village staff from the Development Services, Finance, and IT Departments will work with Passport on the implementation of the project, as required. Once implemented, Finance staff will undergo initial training provided by Passport representatives.
DEI Impact
While there is no direct DEI impact for this particular agenda item, it is important to note the following: pay stations are necessary from an equity perspective to ensure users with limited access to technology and/or electronic payment are still able to utilize public parking. From an environmental justice perspective, the pay stations are solar-powered and do not require the continued use of fossil fuels.
Community Input
There has been no community input received related to this item.
Staff Recommendation
Staff recommends approval of the Resolution. If approved, staff will work with Passport to schedule the actual architecture, design, implementation, and information transfer services for the project.
Advantages:
• Estimated annualized savings in FY 25 of approximately $20,000.00
• Financial and management reports that will streamline reconciliation, revenue recognition, and dispute management activities
Disadvantages:
• The financial and management reporting, while streamlined, will require some upfront training for the Finance Department provided by the vendor, although this is not anticipated to be time-intensive or complex.
Alternatives
Alternative 1:
1. Deny the Resolution.
Advantages:
• Continuing with the existing merchant processing vendor would not require additional staff training for the Finance Department on the financial and management reports that are used for reconciliation, revenue recognition, and dispute management activities.
Disadvantages:
• Failure to realize estimated annualized cost savings of $20,000.00 in FY 25.
Anticipated Future Actions
There are no future anticipated actions associated with this item.
Prepared By: Sean M. Keane, Parking & Mobility Services Manager
Reviewed By: Emily A. Egan, Development Services Director
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution
2. Second Amendment to Passport Agreement
3. Second Amendment Proposal
4. Professional Services Agreement Amendment and Extension_12.06.21
5. Professional Services Agreement Renewal_08.02.21
6. Professional Services Agreement_09.06.18