Item - 2019.PA8.11

The Board of Directors of Toronto Parking Authority:

1.  Authorized the expenditure of $1,473,587 plus contingency of $73,679 totalling $1,547,266 plus Harmonized Sales Tax to HUB Technologies for the acquisition of parking revenue control equipment, including associated software and support agreements to support modifications to operations and to meet Payment Card Industry compliance standards at 16 Municipal Car Parks, as outlined in Attachment 1 to the report (July 15, 2019) from the Acting President, Toronto Parking Authority.

Toronto Parking Authority (TPA) has a need to acquire parking revenue control equipment, including software licensing and hardware to meet EuroPay/MasterCard/Visa (EMV) Interac and Payment Card Industry (PCI) compliance requirements as well as to acquire equipment needed for upcoming operational changes.

TPA has been proceeding with the phased implementation of a multi-year program of upgrading the revenue control equipment in its controlled access (gated) parking facilities. The Board of Directors approved the initial plan in July of 2014, as revised in July of 2015. Overall, approximately two-thirds of the necessary upgrades are in place, including point-of-sale fee computers and lobby pay stations. The remaining phase of the planned implementation is the in-lane exit payment stations at 16 locations with a total of 31 exit lanes. In total, 11 out of 26 facilities are already fully upgraded, including the in-lane exit payment stations.

This final phase of the upgrade, consisting of the acquisition of in-lane exit payment stations, associated software, licences, and support agreements, is necessary for a number of reasons: the older Orion model in-lane exit stations are at the end of their lifecycle (they have 10 to 15 years of service) and these older stations which currently employ magnetic stripe card readers cannot be upgraded to the current EMV payment card standards which the payment card brands (VISA, MasterCard, and American Express) have mandated by mid-October 2019. The upgrade will extend the ability to accept Interac payments in unattended lanes to all of our controlled access facilities. In addition, PCI Data Security Standards (PCI-DSS) requires this upgrade in order for TPA to ensure full compliance with PCI-DSS.

In addition to ensuring PCI compliance, the majority of this equipment will be purchased to support modifications to car park operations which will offer an improved customer experience by adding exit lanes and/or lobby pay stations to locations to reduce time to exit and reduce cash handling by TPA staff.

This report is requesting authorization to expend the funds allocated in the Approved 2019 Toronto Parking Authority Capital Budget to complete the in-lane exit terminal upgrade phase of the plan. This is a sole sourced purchase from HUB Technologies Inc. (HUB), as they are the exclusive supplier of this proprietary revenue control equipment. HUB's equipment is in place at all of TPA and TPA-operated gated parking facilities.