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Supervisors send $70M parking‑meter contract back to budget committee amid concerns
Summary
The board sent a proposed roughly $70 million contract for citywide parking meter replacement back to Budget and Finance for further review after supervisors raised questions about priorities, contract scope and timing amid a municipal transit and budget crunch.
The Board of Supervisors on July 27 voted unanimously to send a proposed contract authorizing the San Francisco Municipal Transportation Agency (SFMTA) to procure new single‑ and multi‑space parking meter hardware and services — an estimated $70.5 million contract with McKay Meters, Inc. — back to the Budget and Finance Committee for further review. Supervisor Preston, who spoke at length during the Government Audit and Oversight committee hearing, said he struggled to square the request with the city’s transit funding and service restoration needs.
Supervisors raised questions in committee and on the floor about the contract’s total cost, procurement timeline and the long‑term technical viability of the proposed hardware amid evolving cellular standards (3G→4G→5G). Supervisor Peskin noted the contract had grown from earlier estimates in committee and that some proposal elements, including modular updates to support future cellular standards and a multi‑year warranty, did not clearly appear in the original request for proposals. “When this was first coming across our screen it was a $10–$20 million contract, not a 70‑plus million dollar contract,” Peskin said.
SFMTA officials told supervisors the contract would replace aging hardware across the city, increase revenue collection reliability and enable expanded payment and data capabilities. Officials also said installation would take several years and that the agency intended to stagger deployment over the life of the contract. Critics said the timing was problematic because SFMTA is simultaneously facing operational shortfalls and service restorations for Muni.
Supervisor Preston moved to send the item back to the Budget and Finance Committee for further conversation; Supervisor Peskin seconded. The motion to return the contract to committee passed unanimously. The Board asked SFMTA to provide more detail on funding sources, the contract’s long‑term costs (including modular upgrades to future cellular standards), the remaining useful life of existing equipment and an explanation for the timeline and urgency the agency had cited to bring the contract to the board.
SFMTA previously included meter replacement funding as part of a larger bond package and budget discussions; members of the board said they want the Meter procurement and the agency’s broader capital plan reconciled before approval of a high‑dollar contract.
