SUBJECT/RECOMMENDATION:
Title
Authorize an increase to the current contract with American Traffic Solutions, Inc., doing business as Verra Mobility Systems, for postage needed for the red light camera violations through the agreement term in the amount of $175,000.00 bringing the total amount to $943,600.00 and authorize the appropriate officials to execute same.
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SUMMARY:
On January 18, 2024, City Council approved a five-year renewal agreement with American Traffic Solutions Inc., doing business as Verra Mobility Systems, for the City’s red-light camera enforcement program. The renewal included the replacement of existing camera equipment and the transfer of responsibility for issuing Notices of Violation to Verra Mobility, with mailings to be sent at prevailing postal rates. Previously, the Clearwater Police Department (CPD) managed these mailings in-house and maintained a corresponding line item in its annual budget since the program’s inception.
Although citation mailing was included in the scope of services under the renewed agreement, postage amounts for mailing these violations were not included in the renewal agreement as a not to exceed amount to the vendor but incorporated into CPD’s annual operating budget for the program. It is important to clarify that this does not represent a new or additional cost to the City, as the mailings have always been an operating cost of the program. The only change is that Verra Mobility is now managing this function on the City's behalf. Accordingly, we must roll the mailing costs into the Vera Mobility Systems line item and establish a revised not-to-exceed amount for the remainder of the agreement.
CPD budgeted $29,000.00 for mailing services in FY 2025. However, with the deployment of upgraded camera systems, recent software enhancements, and increased traffic volumes, the number of violations and mailings has increased. As a result, based on current postal rates and number of violations, CPD projects the annual mailing costs will exceed the current budget by approximately $6,000.00, bringing the revised annual estimate to $35,000.00. Over the five-year term of the agreement, the total estimated cost for mailing services is $175,000.00.
Summary of Financials:
• $768,600.00 - Council-authorized amount (approved January 18, 2024) for the red-light camera program through January 2029
• $175,000.00 - Total estimated cost for mailing services from inception through January 2029
o $29,000.00 - CPD annual mailing budget for FY25
o $6,000.00 - Proposed annual increase to cover anticipated overages
• $943,600.00 - Total requested purchasing authority through January 2029 for both the red-light camera program and mailing services.
Staff respectfully requests the City Council’s approval to increase the purchase order with Verra Mobility Systems by $175,000.00 for the remaining term of the agreement, for a new not-to-exceed amount of $943,600.00 through January 2029. Although revenues generated by the Red-Light Camera Program significantly exceed operating costs, we would still need to return to Council in the event violations increase further and mailing costs exceed the updated estimates and not to exceed amount with this vendor.
APPROPRIATION CODE AND AMOUNT:
Funding for the current year’s portion of this contract is included in the Police Department’s operating budget in cost code 0101139-530300, Contractual Services. Future fiscal year funding will be requested as part of the annual operating budget process.
The operations of the Police Department are funded by General Fund revenues.
STRATEGIC PRIORITY:
This project is relevant towards accomplishing the strategic goal of a High Performing Government, specifically strategic objective 1.4 to foster safe and healthy communities in Clearwater through first-class public safety and emergency response services.
