Committee approves moving forward on extension of Denver parking meter contract with IPS

Denver’s Transportation and Infrastructure Committee voted Wednesday to send to the full City Council a contract amendment that would extend the city’s parking meter, pay-station and software agreement with the IPS Group through Oct. 31, 2027.

The amendment would preserve the city’s existing mixed inventory of single-space smart meters and pay stations and maintain vendor-provided equipment maintenance and software analytics while staff continues work on a broader curbside management strategy. "That contract also manages the equipment maintenance … and it also offers us software system operations, which is really important because that's a lot of the analytic tools that we use," said Cindy Patton, chief operating officer for the Department of Transportation & Infrastructure (DOTI).

The extension request was presented as a capacity-and-time amendment rather than a scope change: DOTI told the committee the IPS Group already provides meter and pay-station installation, hardware repair and the analytics tools the city uses for occupancy and demand estimates. Patton said the 2021 meter replacements (when older devices tied to 2G/3G networks were removed) gave the city equipment with an expected 10-year life span, and DOTI does not have capital to fully replace meters now. "We don't have the capital to do that at this moment, which is why we're asking for an extension for this contract," Patton said.

The department framed the extension as enabling near-term improvements in curb management while longer-term work continues under the city’s curbside action plan. DOTI said it plans to expand mobile payment options, pursue "infrastructure-light" approaches in some neighborhoods, and implement demand‑based pricing (periodic adjustments tied to historical and recent demand) rather than fully dynamic, real-time pricing. Patton noted dynamic systems exist but are more expensive and often require revenue-sharing with vendors: "We have found it to be very expensive…most cities have found that demand based pricing is actually a great tool," she said, citing Seattle as an example of periodic rate adjustments.

Committee members asked technical and operational questions. Council member Alleges asked whether smart meters can detect whether a car is present and unpaid; DOTI staff said Denver’s current meters do not use embedded detection sensors and the city uses paid transactions as a proxy for occupancy. Council member Flynn asked what would happen if the city allowed the current contract to lapse; DOTI answered the city relies on IPS to connect meters to banking services and said losing the contract would be operationally disruptive.

The committee had no recorded abstentions or objections when Council member Alvidrez moved the item and Council President Sanoval seconded; the chair said the amendment "will move forward" to the full body.

The committee presentation and discussion made clear the amendment is intended to maintain continuity of operations and analytical tools while DOTI develops and pilots curbside-area management changes and pricing products. The department said future procurement will be considered once equipment reaches end of life and when policy choices and funding allow a broader replacement or new procurement.

Details not specified at committee included a firm vote tally and any change in contract price. DOTI said the amendment extends the current contract end date to 10/31/2027 and that the department will return to procurement at end of life.