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HomeMy WebLinkAbout01/19/1988, C-11 - REQUEST FOR AUTHORIZATION TO NEGOTIATE A CONTRACT FOR CITATION PROCESSING SERVICES.���H�i�►��NI11��I�ii�I�1 city of San tins osIspo COUNCIL GENDA FROM: David Romero i Wayne Peterson Public Works Director City Engine SUBJECT: YEE71N6 DA., 1988 IdOIL anuarY REPORT 11 NUMBER Prepared by: Candace Havens Parking Program Coordinator Request for Authorization to Negotiate a Contract for Citation Processing Services. CAD RECOMMENDATION: Authorize Staff to Negotiate Contract for Citation Processing Services with Firms as Ranked. BACKGROUND: In October 1987, the City Council approved a Parking Management Plan which mandated the hiring of a citation processing agency to eliminate the backlog of unpaid citations and establish an efficient system for processing of future payments. The processing of citations in a timely fashion will discourage people from abusing the time limits downtown, encourage intended usage of parking spaces, and generate income for the parking program. In accordance with the city's Purchasing Procedures, city staff has received and evaluated proposals from three qualified firms. Each proposes to receive current citations, deposit money daily, send notices to those with outstanding tickets and make referrals to the Courts or DMV for further action on citations, as needed. These companies also will prepare data to aid staff in evaluating parking trends, identify flagrant violators and generally strengthen the parking management program. After evaluating proposals received, staff has ranked the firms as follows: 1. Datacom Systems Corporation 2. Computil 3. Judicial Data Systems Cost of the proposals varies from $100,000 to $140,000 per year, depending on the number of citations processed and the processing fee. Last year, citation revenues were about $150,000. Due to increases in citation rates, annual citation revenues are estimated at about $300,000. Recovery of unpaid bills will produce another $150,000. Half of the citation revenues will go to the Parking Fund and half to the Street Improvement Fund. Net annual revenue to the parking fund after expenses of citation processing will be about $100,000. ALTERNATIVES Option 1: Authorize staff to negotiate with first - ranked candidate. If an agreement is reached, a contract will be prepared. If an agreement is not reached with the first -ranked firm, negotiations with the second and third -ranked firms will proceed until an agreement is reached. The formal contract will be submitted to the City Council for approval before its award to the selected professionals. (Staff recommended action.) el - // - / ������ ►�ull�llllllllll�q��111 city of sari Luis osispo XMIGM COUNCIL AGENDA REPORT Option 2: Do not authorize staff to negotiate a contract. A private agency will not be hired to do this work and city staff will continue to receive citations. Option 3: Direct staff to hire additional staff to process citations. It is estimated that two full -time staff would be needed to perform this work. A computer, related software and special training of staff also will be needed to provide these services in- house. The initial contract for these services is intended to be 18 months and will terminate about the time Parking Management offices are relocated in the Marsh Street Parking Structure. At that time, the success of the program will be evaluated and it may be appropriate for city staff to be trained to assume the processing under the established system. CONSEQUENCE OF NOT TAKING THE RECOMMENDED ACTION: By state law, referrals to the DMV and County courts will not be made until notices to violators are first sent. Current city staff is not presently available to perform this task. The backlog of approximately 21,000 unpaid citations will remain, potential revenues will be lost and enforcement of parking laws will suffer. ACTION RECOMMENDED: Authorize staff to negotiate a contract with citation processing firms as ranked. ACTION TAKEN: Approved As Recommended As Modified Denied Continued VOTE: NOTE: Copies of proposals received are available at the Council Office. e, — //_ '