SUBJECT/RECOMMENDATION:
Title
Approve a Scope of Services and Performance Agreement for a three-year term, October 1, 2014 through September 30, 2017, to include two optional additional one-year renewals with Data Ticket Inc., Newport Beach, CA, for parking violation processing services at a cost of $1.29 per citation processed and for collection agency services at a fee of 23% of total delinquent fines collected and authorize the appropriate officials to execute same; and approve addition of one new FTE to the Parking Enforcement Division (consent).
Body
SUMMARY:
The current agreements with Citation Management, a division of Professional Asset Management, LLC, for parking violation processing services and collection agency services expire on September 30, 2014.
Five firms responded to RFP 22-14 by submitting written proposals and three made presentations to the selection committee. The selection committee ranked Data Ticket Inc. as top firm. The selection committee was comprised of representatives from Internal Audit, Information Technology (IT) and the Parking System.
Data Ticket Inc. was ranked the top firm based on the following selection criteria: experience and qualifications, project approach, financial stability/references, customer service approach, hardware/software and fees.
This is a 3-year agreement with two one-year renewal options, upon the written mutual agreement of both parties. The parking violation process fee of $1.29 per citation is for years one through three. The collection agency service fee will be 23% (Collection Fee) for all three years. The Collection Fee will be added to the outstanding ticket balance when a citation is 31 days old and will be paid by the customer. Approximately 32,000 citations are issued annually. The estimated annual cost to the City under the proposed contract is $41,170. Staff anticipates approximately $18,500 in additional start-up costs during the first year of the contract.
The terms of the parking violation processing services agreement include: all hardware/software for noticing and coordination with the State Division of Motor Vehicles for registration holds; processing of all delinquent notices; delinquent collections; City lease of seven handheld ticket writers with integrated printer and color photography; and establishment of a web site with the following capabilities:
· View real-time citation(s) data, including pictures taken by the issuing officer
· Accept payment via VISA, MasterCard, Discover and American Express credit/debit cards, cash, check or money order
· Process insufficient-funds-requests and refunds
· Reduce or increase violation amounts, dismiss citations, void citations and place a citation on hold
· Change citation data, including violations, date, time, plate, location, comments, make, model, color, registration expiration date and others
· Perform administrative reviews online by entering the disposition directly online
· Generate a time expired or letter of non responsibility for a citation in the adjudication process
· View the complete reason for the review request and supporting documentation provided by the appellant directly online
· Edit appellant information
· Upload disposition documents sent to the City via US Mail
· Add a note to a citation and see all comments added to the citation
· View the reason for the 2nd Level Administrative Hearing Request online and view the supporting documentation provided by the appellant, directly online
· Print a receipt with or without registered owner information
Many of these website features are not available under the current contract and are intended to provide customers with any available information, in real time, related to their citation. This may result in a reduction in the number of citation disputes and cases brought to court.
Citations that are unpaid after 90 days are forwarded to the delinquent services - Penn Credit for collection efforts. Penn Credit receives 23% of the funds they collect.
Current average annual gross parking fine revenue is $810,000 with $5 for every citation collected, or an estimated $160,000, directed to the School Crossing Guard Program.
The City intends to bring in-house the customer service function previously provided by Duncan Solutions. The new functions to be performed in-house include: acceptance of walk-in payments; establishment of a local and toll free telephone line going directly to City staff; City staff review and adjudication of citation appeals in person; and routine correspondence (citizen questions, complaints, concerns, etc.).
In order to perform this function staff has identified a need for one new FTE, Customer Service Representative, to be located in the Garden Avenue Garage office and paid from the Parking Fund. Savings from the new contract with Data Ticket are sufficient to cover the salary and benefits of this new FTE.
APPROPRIATION CODE AND AMOUNT:
0435-01334-530300-545-000-0000
Funding for this agreement is included in the 2014/15 City Manager's Recommended Parking Enforcement Operating Budget of Contractual Services. Future years funding will be included in the Parking Enforcement operation budget from the Manager.
Type: Operating Expenditure