Muskegon City reviews parking-enforcement vendors, discusses license-plate readers and app-based passes

Muskegon City public safety staff reviewed the city’s current parking-enforcement setup and discussed options to replace the Passport vendor with a system called T2 that would add handheld license-plate readers and a mobile pay app.

The discussion matters because the city’s Passport contract takes a large share of collected fines, staff said, and a new system could let officers verify a vehicle’s paid status by plate instead of relying on paper or stickers.

Public Safety Director Colesal outlined the city’s existing mix of payment systems and enforcement methods. “We currently have 2 different components to our parking system,” Colesal said, noting kiosks (Flowbird) for on-site purchases and Passport for online payments and fine recovery. Colesal said Passport has been recouping about 25% of all fines and that staff “felt that that was a little bit steep.”

Colesal told the commission the T2 bid would include upfront implementation costs (the largest line item described as a data-transfer expense of about $22,000) and an annual service fee staff listed in the packet as roughly $10,764. He said T2’s three-year projected cost could be less than the city’s one-year cost under the current vendor. Colesal also said Passport charges roughly $0.72 per letter sent to delinquent violators; T2’s comparable charge would be about $1.00 per letter.

A key operational change under consideration is equipping enforcement officers with handheld license-plate readers so an officer can scan a plate and immediately see whether the vehicle has a valid pass. Colesal said that would reduce reliance on paper permits that can be lost or misplaced and could in future eliminate sticker passes by associating plates with paid accounts. He also said T2’s system can show if a vehicle has been sighted previously, which staff consider useful for enforcement.

Commissioners focused on user and vendor fees, kiosk performance and how disputes are handled. Commissioner Kilgill asked how much nonresidents would pay in card fees when buying a day pass via an app; Colesal said the credit-card surcharge is about 33% on app transactions but noted residents can pay in cash at kiosks and avoid that fee. Commissioner Kochan asked whether kiosks remain slow; Colesal said an update to cell service has “helped tremendously.”

On appeals, Colesal said violators can come to city offices to dispute citations and that filing an appeal sets a court date and stops the escalation clock on late fees. “Once you contest it and you go to court, you're set,” Colesal said.

No formal motion or procurement decision was made at the work session. Staff emphasized the current Passport contract runs through July, giving them time to collect more information, negotiate costs and return with a formal recommendation.

The commission asked staff to continue vetting options and to return with contract terms and a recommended path forward before the July contract expiration.