R7Z - Piggyback Oregon Contract for New Parking System

Resolutions - R7 Z

R7 Z A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER TO PIGGYBACK FROM THE LEAGUE OF OREGON CITIES CONTRACT NO. PS24290 FOR A NEW PARKING MANAGEMENT SYSTEM WITH FLASH PARKING, INC., AND FURTHER WAIVING, BY A 5/7TH VOTE, THE FORMAL COMPETITIVE BIDDING REQUIREMENTS PURSUANT TO SECTION 2- 367(E) OF THE CITY CODE, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY; AND AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO NEGOTIATE AN AGREEMENT WITH FLASHPARKING, INC. FOR THE PARKING MANAGEMENT SYSTEM TO REPLACE THE CURRENT PARKING ACCESS REVENUE CONTROL SYSTEM ACROSS THE CITY’S PARKING GARAGES, AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE A FIVE-YEAR AGREEMENT, IN AN AMOUNT NOT TO EXCEED THE ANNUAL APPROPRIATION FOR THESE PRODUCTS AND SERVICES THROUGH THE CITY’S BUDGET PROCESS. Applicable Area:

COMMISSION MEMORANDUM

RECOMMENDATION

The City Administration (Administration) recommends that the Mayor and City Commission (City Commission) approve the resolution authorizing the Administration to enter into an agreement with Flash Parking, Inc., and, by a 5/7th vote, waive the formal competitive bidding requirements pursuant to Section 2-367(e) of the City Code, finding such waiver to be in the best interest of the City. The agreement will utilize the League of Oregon Cities’ contract pricing for parking management systems to replace the City’s current parking access revenue control system (PARCS) across all municipal parking garages.

This recommendation aligns with the Finance and Economic Resiliency Committee’s favorable recommendation at its September 26, 2025, meeting to advance the modernization of the City’s parking infrastructure. The proposed system will improve operational efficiency, enhance customer experience, and strengthen revenue control through the use of advanced technology and centralized management capabilities.

BACKGROUND/HISTORY

The City of Miami Beach Parking Department operates twelve municipal garages that collectively serve an average of 2,000 visitors per month, with volumes increasing significantly during peak periods such as Spring Break, the Miami International Boat Show, and upcoming FIFA related activity. The City entered into a contract with SKIDATA on October 15, 2015, for the design, construction, installation, and maintenance of the parking garage gated revenue control system pursuant to ITN 2014-170-SW. While the contract expires on October 14, 2030, the system has reached a point where ongoing performance and end of life issues require consideration of early termination through the 30-day clause in the agreement.

Industry standards show that the average lifespan of a PARCS should be no more than five years. The primary reason is the incredible rate of progress in parking technology. The system in place

has exceeded that life cycle by a considerable margin. As equipment surpasses its expected operational life, component failure rates increase, and replacement parts become more difficult to source. The aging infrastructure has resulted in slow gate operation, unreliable equipment performance, and the inability to support modern mobility integrations or advanced payment methods.

The effects of operating a system that is significantly past end of life are visible in the City’s maintenance spending. The current service agreement totals $483,306 annually, but the Parking Department budgets an additional $444,000 for maintenance that is not covered by the service contract. This means the City is spending nearly the same amount on uncovered maintenance as it does on the service agreement itself, highlighting the financial and operational burden caused by the aging system. These challenges, combined with increasing customer expectations and the City’s goal of providing a world class experience, while also strategically reducing costs, during one of the busiest seasons in Miami Beach history, reinforce the need to transition to a modern system immediately.

ANALYSIS

The Parking Department sought to identify a competitively bid procurement mechanism that would allow the City to expedite the upgrade to a more advanced and technologically modern PARCS within the municipal garages due to the age and declining reliability of the current system. As part of this effort, the Department also prioritized identifying a financial structure that minimized upfront capital investment to remain fiscally prudent while still delivering a significant modernization of garage technology. The Hardware as a Service (HAAS) model provides the opportunity for the City to upgrade the entire PARCS without a large capital outlay, keeping annual operating costs predictable and comparable to what the City already spends today on service agreements and uncovered maintenance. FlashParking is the only known PARCS provider that offers a true Hardware as a Service structure, making it uniquely capable of supporting the City’s financial and operational goals. This modernization is especially critical as the City prepares for one of the most active event seasons in recent history.

Working in coordination with the Procurement Department, Parking evaluated multiple cooperative contracts to determine which competitively bid vehicle provided the strongest combination of pricing, term length, and operational capability. Three options were identified: the City of Joliet Contract 2861-1024, the OMNIA contract (NCPA 05-60 RFP 1821), and the League of Oregon Cities Contract PS24290. The City of Joliet contract included installation and implementation but relied on location specific lump sum pricing without itemized detail. Its smaller scale and limited applicability made it unsuitable for Miami Beach. The OMNIA contract included the required PARCS components but featured higher pricing and is in its final renewal term, expiring July 31, 2026, making it incompatible with the City’s long term modernization strategy.

The third option, the League of Oregon Cities Contract PS24290, awarded to FlashParking, Inc. through a competitively bid RFP process, provides the most favorable pricing, longest term stability, and strongest combination of operational and technological capabilities. This contract includes fixed discounts of 20 percent for hardware, 10 percent for software, and 15 percent for implementation through January 27, 2031. The agreement also includes a performance bond, which ensures full project completion and protects the City’s financial investment.

Flash offers a modernized PARCS platform that introduces significant enhancements over the City’s current system. Flash integrates with Waze, Google Maps, and ParkMobile, expanding the visibility of Miami Beach parking assets across widely used mobility and navigation platforms. The PARCS supports multiple payment options including ParkMobile payments, tap to pay, Google Pay, and Apple Pay. License Plate Recognition at every entry and exit allows the license plate to function as the access credential, greatly reducing congestion and improving ingress and egress times. Flash supports payment on entry and includes a comprehensive validation platform that provides advanced and flexible offerings for local businesses.

Flash has a proven record of supporting large scale, high demand PARCS environments. The Texas Medical Center, one of the largest medical districts in the world, operates more than 200 entry and exit terminals on the Flash platform, demonstrating Flash’s ability to support sprawling, complex campuses. Denver International Airport, which generates more than $250 million annually in parking revenue, uses Flash for its PARCS operation, illustrating Flash’s capacity to securely process extremely large revenue streams.

Additional features include cloud based PARCS architecture instead of on premise servers, allowing real time diagnostics, software updates, and remote monitoring. A built in 5G cellular backup maintains PARCS continuity if the primary network is interrupted, and the system is capable of operating in full offline mode during temporary connectivity disruptions as long as power remains active. These capabilities directly address existing operational limitations and advance the City’s goal of implementing a world class, technologically advanced, fully integrated PARCS.

The League of Oregon Cities contract, awarded to FlashParking, Inc. through a competitively bid RFP process, provides a turnkey solution for all City garages under a 60-month hardware as a service model totaling $4,028,580.00. Of this amount, approximately 86% equating to $3,450,041.15, covers hardware, installation, implementation, and software as a service component that comply with the cooperative contract pricing. The remaining 14%, totaling $578,538.85, covers capital costs, support, and warranty services that fall outside the scope of the cooperative agreement and exceed the City Manager’s approval authority. The City also added an additional 10% contingency for the out of scope items which is an additional $57,853.89. As such, Commission approval by a 5 to 7 vote is required to waive the formal competitive solicitation requirements for this portion. When compared to the City’s current annual spending on service agreements and uncovered maintenance, this approach results in an anticipated annual savings of close to $120,000 while delivering a state of the art PARCS. Supporting documentation is provided in Attachment A (League of Oregon Cities contract) and Attachment B (FlashParking quote).

FISCAL IMPACT STATEMENT

The projected annual cost of the upgraded system is $805,716. The city’s current budget includes $483,306 dollars for service costs along with an estimated $444,000 for maintenance activity, for a total ongoing expense of roughly $927,306 each year. When compared to the projected cost of the proposed system, this reflects an anticipated annual savings of close to $120,000.

60-month (5 year) Anticipated Investment Hardware, Installation, Implementation, and SaaS Capital Costs, Support, Warranty Services Total FLASH Proposal

Contingency of Additional Costs ONLY 10% Total Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

This represents the projected annualized expense for FY26 with additional years subject to future funding approval

$3,450,041.15 $ 578,538.85 $4,028,580.00

$

57,853.89

(G2,G3,G5,G6,G7,G10,G11) 480-0463-000325-27-413-526-00-00-00- $430,124.00 (G1)142-6976-000325-27-413-526-00-00-00- $74,508.00 (G4) 463-1990-000325-27-413-526-00-00-00- $75,372.00 (G8) 484-0470-000325-27-413-526-00-00-00-$68,112.00 (G9) 467-1996-000325-27-413-526-00-00-00- $68,772.00 (G12) 468-1998-000325-27-413-526-00-00-00- $52,140.00 (G13 “Potential Deauville Garage Agreement”)- 480-0463-000325-27-413-526-00-00-00 $36,688.00

CONCLUSION

The Administration recommends that the City Commission approve the resolution authorizing the Administration to enter into an agreement with Flash Parking, Inc., and, by a 5/7th vote, waive the formal competitive bidding requirements pursuant to Section 2-367(e) of the City Code, finding such waiver to be in the best interest of the City. The agreement will utilize the League of Oregon Cities’ contract pricing for PARCS to replace the City’s current parking access revenue control system across all municipal parking garages.

This recommendation aligns with the Finance and Economic Resiliency Committee’s favorable recommendation at its September 26, 2025, meeting to advance the modernization of the City’s parking infrastructure. The proposed system will improve operational efficiency, enhance customer experience, and strengthen revenue control through the use of advanced technology and centralized management capabilities.

Applicable Area

Citywide

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

Parking

Sponsor(s)

Co-sponsor(s)

Condensed Title

Execute 5-Year Agmt w/ Flash Parking, Citywide Parking Mgmt System at Parking Garages. PK 5/7