Title
Commuter Parking System Software Upgrade
History
The Village of Orland Park has utilized Passport parking technology since 2007 to support parking operations at its commuter parking facilities. The Village originally purchased fourteen (14) Parking Fare Terminals from Total Parking Solutions, Inc. (TPS) for its three Metra commuter parking lots. Commuters have had the option of purchasing monthly permits or paying for daily parking through the parking fare terminals or the Passport Parking mobile application. As part of the Village's ongoing efforts to modernize its parking operations, staff recommends replacing and upgrading the existing parking kiosks, payment processing system, permit management platform, and license plate recognition equipment.
Through the Passport mobile application, commuters may pay for daily parking by credit or debit card from their smartphone, including after boarding the train. This provides an additional payment option when a commuter is unable to complete payment at a parking terminal prior to departure.
On June 1, 2016, the Village entered into a Software License and Service Agreement with Passport Labs, Inc. Passport has since updated its Terms and Conditions and enhanced its mobile parking experience. The upgraded platform will include a "Text to Park" guest checkout feature, allowing parkers to text a designated code and pay for parking without creating a Passport account or downloading the mobile application.
Staff recommends continuing with Passport Labs, Inc. and upgrading the Village's existing parking infrastructure to Passport's current platform. The proposed solution includes Passport's Digital Permits for Parking platform, payment processing services, and two (2) mobile License Plate Recognition (mLPR) units. The Village would also transition from the existing Worldpay application to Passport's payment platform.
As part of the parking program transition, the Village anticipates moving from pay-by-space to pay-by-plate beginning January 1, 2027. The upgraded system will provide a more integrated approach to parking payments, permits, enforcement, and license plate recognition while replacing aging technology with equipment capable of supporting current EMV payment standards. The program will also support permit-based parking, including free resident parking where applicable.
Passport Labs, Inc. is recommended as a sole source based on the Village's existing Passport parking infrastructure and longstanding use of the system since 2007. Continuing with Passport allows the Village to replace and upgrade its existing equipment while integrating parking payments, permits, and enforcement within the current platform. Transitioning to a separate provider would require implementation of a new system and additional integration, training, and administrative processes.
Financial Impact
The proposed solution includes transaction-based payment processing and gateway fees managed through Passport Unified Payment Processing, with Passport acting as the Merchant of Record. Under this structure, Passport's quoted processing rates are 2.95% plus $0.20 per transaction for mobile and card-present payments (covering Passport Parking and Flowbird meters), 3.50% plus $0.30 per transaction for Digital Permits for Parking, and a $0.05 payment gateway fee per transaction where applicable. Settlement and remittance are handled via daily net settlement, meaning Passport calculates total credit and debit card proceeds less merchant processing fees, refunds, chargebacks, and any applicable adjustments before remitting funds directly to the Village's bank account within 2 to 3 business days. Additionally, any fees not captured directly during the net settlement and remittance process will be invoiced to the Village on a monthly basis. Passport estimates that its proposed payment processing rates will save the Village approximately $5,800 annually in merchant processing fees across mobile payment and pay station transactions.
The estimated cost of the proposed Passport solution is $107,153.11 for Year 1, which includes equipment, installation, licensing, warranty, digital permitting, and related services. The estimated cost for Years 2 and 3 is $20,740.88 annually.
The proposal includes two (2) Genetec mobile LPR units at $54,138.10, installation and labor of $11,590.00, an extended warranty for the two units of $20,684.13, and an annual Genetec licensing fee of $8,740.88. Passport's Digital Permits for Parking platform carries a licensing fee of $1,000 per month, along with applicable permit and transaction-based processing fees.
Recommended Action/Motion
I move to approve the execution of a sole source vendor contract with Passport Labs for the purchase of Parking Management System Upgrades, Payment Services and Mobile License Plate Recognition Equipment for a total not to exceed amount of $148,634.87, plus applicable transaction and permit processing fees, and as fully presented.
(Full Motion - not necessary to be read)
I move to approve the waiver of the competitive bid process to authorize the approval and execution of a sole source vendor contract for the purchase from Passport Labs, Inc. for parking management system upgrades, including Digital Permits for Parking, payment processing services, mobile payment services, and two (2) mobile License Plate Recognition units, including associated hardware, installation, licensing, and warranty services, for three (3) years, in an amount not to exceed $107,153.11 for Year 1, with estimated annual costs of $20,740.88 for Year 2 and Year 3, plus applicable transaction and permit processing fees;
AND
Authorize the Village Manager to execute all related contracts and documents, subject to Village Attorney Review;
AND
Authorize the Village Manager to approve change orders related to this contract within the authorized amount.