Submitted By: Finance and Administrative Services
Prepared By: Brian Brower, Assistant City Manager
Matthew Schmelzel, Senior Management Analyst
Subject:
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CONSIDERATION OF A RESOLUTION AUTHORIZING AN EXEMPTION TO THE CITY’S PURCHASING POLICY, AWARDING AN AGREEMENT TO ACE PARKING FOR PARKING ENFORCEMENT SERVICES FOR PHASE 2 OF THE PILOT PROGRAM, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT
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Summary:
Before City Council is a request to authorize an exemption from the formal solicitation process and award a Professional Services Agreement to Ace Parking III, LLC (Ace Parking) for supplemental parking enforcement services in accordance with the City’s Procurement Policy. The requested exemption is based on the need to maintain current conditions for Phase 2 of the parking enforcement pilot program, making compliance with the formal bidding requirements and procedures inefficient, impractical, and not in the best interest of the City, including the need to maintain continuity of supplemental parking enforcement services while the City continues to evaluate long-term parking enforcement and parking management needs. The proposed agreement will provide continued enforcement support to complement the City’s Retired Senior Volunteer Program (RSVP) and improve parking compliance and turnover in high-demand areas during Phase 2.
Background:
In March 2026, the City entered into a five-month agreement with Ace Parking. The engagement provided a cost-effective opportunity to supplement the City’s existing parking enforcement resources while assessing the effectiveness of additional enforcement coverage during Phase 1 of the parking enforcement pilot program.
During the initial agreement, Ace Parking worked alongside City staff and RSVPs to provide supplemental enforcement services, collect operational data, and evaluate parking trends throughout the City, with particular emphasis on the downtown area. The experience demonstrated the value of continued supplemental enforcement and ongoing data collection while staff evaluates long-term parking management needs in Phase 2 of the parking enforcement pilot program.
Discussion:
Downtown parking demand routinely reaches full capacity during peak periods, making consistent parking enforcement essential to maintaining parking availability and encouraging compliance with posted time limits. Beach areas also experience significant parking demand, particularly during peak periods and high-activity days. Effective enforcement promotes parking turnover, allowing residents, customers, and visitors greater access to available parking while supporting local businesses, beach access, and downtown activity.
The City’s Retired Senior Volunteer Program remains the foundation of the City’s parking enforcement program. RSVP personnel provide valuable enforcement services and community presence; however, because the program relies on volunteer staffing, enforcement coverage is inherently limited by volunteer availability and scheduling constraints. Supplemental enforcement services ensure consistent coverage during peak demand periods while allowing RSVP personnel to focus on priority enforcement activities and community engagement.
Staff has identified opportunities to improve parking operations beyond traditional enforcement. Currently, the City’s parking system includes multiple payment methods, including coin meters, credit card meters, pay stations, and mobile payment platforms. These payment systems are not fully integrated with one another or with the City’s parking enforcement technology, creating administrative and enforcement challenges and limiting the City’s ability to efficiently collect, access, and analyze parking data. As the City evaluates future parking management solutions, staffing augmentations and technology improvements, including a potential transition from space-based payment systems to license plate-based parking management, will be considered during Phase 2 to improve enforcement efficiency, enhance permit administration, and simplify the customer experience.
Awarding supplemental enforcement services during Phase 2 under a new agreement with Ace will allow the City to maintain operational continuity, refine enforcement practices, and continue collecting performance metrics necessary to evaluate future parking improvements. Staff will analyze this information and develop recommendations for a comprehensive parking enforcement and parking management approach that considers parking regulations, parking turnover, employee parking needs, technology improvements, parking permit administration, and current and future strategic parking lot agreements.
Based on enforcement activity to date, staff anticipates that citation revenue generated during the proposed agreement term will, at a minimum, offset the cost of providing these services, with the potential to generate additional revenue for the City. The program provides the dual benefit of supporting a financially sustainable enforcement model while improving parking compliance, increasing turnover in high-demand areas, and enhancing the availability of parking.
Considerations Identified by Staff:
The proposed agreement provides an interim approach to maintain supplemental parking enforcement services while the City evaluates long-term parking management solutions during Phase 2 of the parking enforcement pilot program. The continued engagement with Ace Parking provides operational continuity and additional enforcement data to help inform future service and procurement needs.
In accordance with Purchasing Policy 201-2-1, Section XI.A.1.1.2, staff supports an exemption from the formal solicitation process based on the current conditions and operational needs of the City. Compliance with the bidding requirements and procedures at this time would be inefficient, impractical, and not in the best interest of the City due to the need to maintain continuity of parking enforcement services during Phase 2 while the City evaluates future parking management and procurement needs.
Staff anticipates that a future RFP could provide an opportunity to establish a more comprehensive and integrated approach to parking management based on current operations, parking needs, and future requirements. This process would support long-term improvements in parking availability, turnover, compliance, and overall management throughout the City.
The proposed agreement will complement the City’s RSVP program by providing additional enforcement resources during periods of increased demand, scheduling gaps, and other periods when additional coverage is needed. Enforcement activity during the agreement term is anticipated to offset the cost of services while supporting improved parking compliance and more effective management of the City’s limited parking resources.
Council Options:
• Adopt Resolution No. 26-141, authorizing an exemption to the formal solicitation process, awarding a Professional Services Agreement to Ace Parking III, LLC, for Parking Enforcement Services for Phase 2 of the parking enforcement pilot program, and authorizing the City Manager to execute the agreement.
• Modify and adopt Resolution No. 26-141.
• Continue the item with direction to provide additional information.
• Do not adopt Resolution No. 26-141.
Environmental Review/Analysis:
Not a “project” under the California Environmental Quality Act.
Fiscal Impact:
Funding is available within the current fiscal year budget in accounts 001-203-43690, 001-218-43624, and 001-218-43627 to support the agreement for the initial six month term. If the City Manager, at his discretion, authorizes the continuation of services on a month-to-month basis following the initial term, any associated funding needs will be evaluated based on available appropriations and, as appropriate, through the City’s mid-year budget review process. Based on current enforcement activity, parking citation revenue is anticipated to fully offset the cost of the agreement, with the potential to generate additional net revenue for the City.
Potential Action(s):
recommendation
If the City Council concurs with the information provided within this staff report, moving this item without modifications would result in adoption of Resolution No. 26-141, which would:
1. Authorize an exemption to the formal solicitation process under Section XI.A.1.2 of City Policy 201-2-1; and
2. Award a Professional Services Agreement to Ace Parking III, LLC for Phase 2 parking enforcement pilot program services for an initial six-month term in an amount not to exceed $89,700, and authorize the City Manager to extend the agreement on a month-to-month basis, at an amount not to exceed $14,950 per month, for up to six additional months; and
3. Authorize the City Manager to execute a Professional Services Agreement with Ace Parking III, LLC.
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Attachment:
1. Resolution 26-141
2. Ace Parking III, LLC Professional Services Agreement
Notification:
None.