ORDINANCE No. 176191

* Approve contract for pay stations services to Schlumberger Technologies, Inc dba SchlumbergerSema and adopt pay and display as the city-wide standard (Ordinance).

The City of Portland ordains:

Section 1. The Council finds:

1.  The Office of Transportation performed a six-month demonstration of Central Pay Station technology for on street parking from July 2000 through April 2001. The testing and evaluation demonstrated that the technology is suitable for the City of Portland. Subsequent investigations and evaluations of other city experiences with the technology showed that the technology is being used successfully on streets in the United States, North America, and Europe.

2.  Portland is experiencing problems with its single-space meter system that include revenue loss due to frequent out-of-service conditions, revenue security concerns, and the unavailability of replacement parts. Given the demonstrated benefits and advantages of pay station technology, the Office of Transportation intends to procure pay station technology to replace most of the existing single-space meters and provide pay stations for new meter districts such as in Northwest Portland. The goal of the technology is to:

▪  Increase customer service by using a more reliable coin recognition system and provide the technology that accepts the US dollar, coins, credit cards, and smart cards.

▪  Improve revenue recovery by eliminating jamming and out-of-service time.

▪  Improve the aesthetic appearance of blocks.

▪  Improve the operational capability of the system by providing a technology that can be programmed for varying rates and times.

▪  Improve security by providing the option for cashless transactions that reduce the need for coin collection and handling activities.

▪  Improve the parking information management system by providing wireless communication capability that allows real-time data gathering and system monitoring.

3.  Ordinance 175834, passed August 1, 2001, provided for an alternative purchasing process and payment for pay stations. The Office of Transportation and the Bureau of Purchases carried out the alternate contracting process under Request for Proposal #100944. Eight proposals were received and the vendor SchlumbergerSema was selected for contract award based on the following:

▪  Their overall experience with pay station installations, wireless communications, card use, and providing solar power was superior.

▪  They demonstrated superior experience with developing effective partnerships with other cities and local service providers.

▪  Their service model for operating and managing the wireless communication system provides the greatest overall benefit while reducing the risk to the City.

▪  They demonstrated a strong commitment to making the pay station project a success.

▪  They provided the lowest responsive price proposal.

4.  The Office of Transportation has performed extensive outreach regarding the appropriate mode of operation for pay stations in Portland. Focus group sessions were planned and executed, a citywide survey was designed and executed, a four-city survey on the pay and display mode of operation was performed, and there were numerous stakeholder group meetings to discuss the results of the outreach work. The results of the work indicate:

▪  Portland citizens favor the customer service enhancements that pay station technology provides.

▪  There is a worldwide market preference for the pay and display mode of operation and,

▪  The pay and display mode of operation is acceptable to citizens and the business community of Portland.

5.  The contract with SchlumbergerSema includes features designed to ensure the success of pay station implementation and continued operation. Some of those features include:

▪  A long-term (five-year) contract that provides a five year warranty for pay station equipment.

▪  Performance standards for pay station operation and SchlumbergerSema support services.

▪  A requirement for SchlumbergerSema to contract with a local company to represent SchlumbergerSema and provide project support.

▪  SchlumbergerSema will provide resources to help design and implement an extensive outreach and education program to introduce pay stations to Portland.

6.  The Central Pay Station System will be acquired in phases over a five-year contract period. Appropriation for the first phase of the project is included in the approved FY 01-02 Budget. The total cost of the project over the five-year period is estimated at $6.8 million dollars ($5.5 million for pay station hardware and $1.3 for pay station services). Operation of pay stations will reduce maintenance and collection costs and increase revenues. The increased revenues will provide the opportunity to finance the debt service associated with the phased procurement.

NOW THEREFORE, the Council directs:

a.  Approval of award of contract for pay station services to SchlumbergerSema in a form substantially in conformance with the contract attached as Exhibit A, to the original of this ordinance and by reference made a part thereof.

b.  The Office of Transportation to employ pay and display as the city-wide standard for pay station mode of operation, and to prepare appropriate ordinances to facilitate pay station system operations.

Section 2. The Council declares that an emergency exists because a delay in executing the contract with SchlumbergerSema would slow procurement of the pay stations, which would delay pay station implementation; therefore, this ordinance shall be in full force and effect from and after this passage by the Council.

Passed by the Council JAN 09 2002 GARY BLACKMER

Auditor of the City of Portland

Commissioner Charlie Hales       By /S/ Susan Parsons

Ellis McCoy/ls

December 17, 2001                    Deputy

TBA:\COUNCIL\ORDS\2002\Ord16 McCoy-CPS Procurement.doc

BACKING SHEET INFORMATION

AGENDA NO. 34-2002

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 176191