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HomeMy WebLinkAbout10/20/1992, C-3 - PARKING FINE COLLECTION CONTRACT I�II�I�IIIIUI�0IIIII�iII�III � MEETING DATE: II��u�► c� o san �aIs osIspo i0 .1 . . Y.D . COUNCIL AGENDA REPORT ITEM NIJMBER/,e�y FROM: , Wayne Peterson/„ Prepared by: Keit2i�bpalewski Acting Public .Works Director Parking Manager SUBJECT: Parking Fine Collection Contract CAO RECOMMENDATION: By motion, approve the award to, and authorize the Mayor to execute, a contract with Turbo Data Systems, Inc. for parking fine collection at the base price of $0.79 per citation. BACKGROUND: i At its July 7, 1992 meeting, Council authorized the soliciting of RFP's for parking fine collection. A provision of the approval process was to return to Council with the final recommendation of either continuing to contract for this service or perform it by in- house personnel. The. need for seeking comparative pricing stemmed from the fact the that current contract for citation processing has expired on September 15, 1992 . We are currently on a month-to- month arrangement with our existing contractor. DISCUSSION: i The primary reason for soliciting RFP-'s was to establish the j current market price for contract citation processing and compare this to an in-house operation. We have received five (5) very competitive responses from the RFP process. All vendors are reputable companies who have been in the citation processing business for many years. The unit prices for processing citations ranged from $0.79 to $1.50 (Exhibit A) for the first notice. The total operating costs for the respective companies are reflected on Exhibit A-1. The latter higher price was from our current contractor, Lockheed, IMS, with two companies (Turbo Data and Enforcement Technology) coming in below one dollar per citation. All of these prices are for full-service processing, which includes DMV on-line interface for registered owner info and hold processing, posting payments, mailing notices, generating management reports, and maintaining a customer service phone bureau. The lower unit prices ($0. 79 and $0.90) from the two companies reflect lower overhead costs and a strong desire by these particular Southern California companies to establish a client base in the Central Coast area. Contracting for citation processing continues to give the City greater flexibility for adjusting to the volume of citations written, without increasing unit costs for processing or adversely impacting City staff's workload. All administrative, clerical, and �ijll!illlll1° �illlhi city of San .-AIS OBISpo COUNCIL AGENDA REPORT Council Agenda Report Page two technical support personnel for citation processing are••supplied by the contractor. The contract process offers the City full-service operations without the potential problems and additional costs associated with an in-house operation. Given the substantial cost j savings ($0.79 vs. $1.55 or more for in-house, Exhibit B) and past success with contract services, staff recommends awarding the j contract for full-service processing to Turbo Data Systems (see j attached company profile) at the base unit price of $0. 79 per citation. FISCAL IMPACT: Contract services, quite simply, is substantially less than performing the service by in-house personnel ($0 . 79 vs $1. 55) . Paying virtually double for the same service if it were performed by in-house personnel, would obviously be an economic decision we could not justify. The projected operations cost for the new contractor would be approximately $44, 000 based on an annual volume of 50, 000 citations with 20% requiring a second notice. The same volume for in-house processing would cost $81, 000 (Exhibit C) . Any of the five contractor's prices would be cheaper to process than doing it in-house. Even partial processing would not be cost effective ($44, 000 for complete contract service vs. $62 , 000 for partial in-house) . The latter cost is based on the proposal from Turbo Data (only contractor to submit a proposal for partial processing) of a fee of $0. 64 per citation. This would also mean maintaining a minimum of one full-time clerk, along with substantial staff time for phones, payment processing and customer service. For an additional $0. 15 per citation ($7, 500 per year) we get full-service processing without any additional staff or other affiliated expenditures. The fact that the citation processing industry has been refined through competition and technical advances to offer full-service processing at below a dollar per citation, clearly makes this mode of operations the optimum choice for years to come. The current budget for citation processing is $114, 000 (based on old higher rates `and an annual volume of 65, 000 citations) . Future operational costs for this service will be dramatically reduced. i ALTERNATIVES: j 1. Extend current contract 2. Process citations in-house Since our current contract is considerably higher than the lowest price received ($1.54 vs. $0.79) from the RFP process, we could not justify rejecting all proposals and staying with our current contractor. ,i:IJi!I'iijl� IIIP�' �IIIIhI city of san is oBispo COUNCIL AGENDA REPORT Council Agenda Report Page three Processing citations by in-house personnel has both negative and positive aspects. The primary drawback is the high cost of j handling citations in-house. This also creates the normal problems (recruitment, supervision, poor employee performance, benefits, etc. ) associated with expanding and maintaining a larger permanent staff for this specialized processing. Additional liability, ! potential inefficiency and inflexibility to volume changes, are some other disadvantages which support a contract operation. One of the advantages of in-house processing is maintaining total control of the citation process, which can give more of the "personal touch". However, our experience with contract services, as well as other cities, has shown this form of processing to be ! very successful with regards to public relations. A quality contractor, experienced in citation processing and customer service operations, can provide a high degree of client/customer satisfaction. The large client base from the five (5) companies that responded to our RFP process supports the fact that this mode of processing parking citations can be very effective. Finally, utilizing staff personnel would not only be much more costly, but it would also not eliminate the normal problems (human errors) iassociated with large-volume processing of parking citations. Given the high costs and increased responsibilities the City would have to absorb for in-house processing, it is clearly not the most cost effective, nor is it necessarily the most efficient means for handling the City's parking. citations. Maintaining the flexibility and taking advantage of the reduced costs offered by contract services is the best course of action for the City. i j Exhibit A: Contract citation processing (cost per citation) j Exhibit A-1: Contract citation processing (total operating costs) Exhibit B: In-house vs. contract costs Exhibit C: Annual operating cost comparison Attachment: Company profile of Turbo Data Systems, Inc. Consultant Service Agreement I i j I I I i C33 1 Citation Processing cost per citation in dollars 1 .2 0.8 - -- - - - - - - 0.6 - ........... 0.4 0.2 — .__. ._ _ _.. _...._........... _ 0 : lockh phoenix comput enforce turbo staff Series 1 1st notice Series 2 2nd notice Series 3 in-house ® Series 4 in-house Exhibit A CONTRACTOR OPERATION COSTS Lockheed Phoenix Computil Enforce Turbo Unit price $1.50 $1. 25 $1. 20 $0.90 $0.79 (1st notice) 2nd notice $0. 00 $0. 60 $0.50 $0.39 $0. 39 on-line access $25. 00 $0. 00 $0. 00 $100. 00 $0. 00 (monthly fee) data inquiry $0. 00 $100. 00 $100. 00 $100. 00 $100. 00 (est.monthly phone bill) software $0. 00 $400. 00 $400. 00 $400. 00 $400. 00 (one time) P.O. Box $0. 00 $250. 00 $250. 00 $250. 00 $250 . 00 (annual) subtotal yearly costs $300 $1,850 $1,850 $3 . 050 $1, 850 yearly cost* with citations $75, 000 $68, 500 $65, 000 $48, 900 $42 , 400 Grand Total $75,300 $70,350 $661850 $51,950 $44,250 * Based on 50, 000 citations with 20% requiring a second notice Exhibit A-1 69_s-� COST COMPARISON FOR TICKET PROCESSING The following comparisons are based on 50, 000 citations annually. In-house Contract $14, 500 Postage @ $0. 29 per cite Turbo Data Systems $2,500 Envelopes & Forms $4, 500* Software upgrade for processing $2, 000* Additional hardware $54, 000 (2-Office Asst. I with benefits) $0.79 per citation Total $77,500 $39,500 * one time cost for 1st year In-house Turbo Data (1st notice costs) 1st year cost per citation $1.55** $0.79 2nd year cost per citation $1. 42** $0. 83 3rd year cost per citation $1.42** $0. 87 ** The cost per citation is based on the assumption of a complete in-house operation with direct on-line access to DMV and all other processing procedures performed internally. Any partial processing through the County would add their surcharge processing fee which has been estimated at up to $1. 00 per citation. This would make the cost for in-house processing more $2. 50 per citation. Note: The above figures are for a one notice procedure. A two notice procedure is our current operation because of the two-tier penalty. Turbo Data's cost for the second notice is -$0. 39 per citation. Our estimate for in-house processing would be approximately the same ($0.36 for notice, postage, and staff time for internal processing) . Based on 20% requiring a second notice, the costs would be $3 ,900 for Turbo Data vs. $3 , 600 for in-house processing. Exhibit B Operation Costs Annual in thousands 100 80 - — -- 60 - 40 -0 40 — - .-..--... . ..... 20 - --- ----- .....- - 0 Lock Phoen Comput Enforc Turbo In-house ® series 1 Exhibit C �,3- 7 CITY OF SAN LUIS OBISPO B. COMPANY PROFILE Turbo Data Systems, Inc. (TDS) marked its seventh (7) anniversary in June 1992 and will have its seventh (7) consecutive profitable year. TDS is a small company when compared to some of our competitors who are owned by Lockheed, NUI, and other large companies. To successfully compete, we take the leading edge in software development and provide a high level of service rather than only filling needs brought to our attention by others. This is the main reason for our success in the highly competitive parking citation processing services business. The added value of ongoing maintenance and enhancements ensures that our Parking Citation Collection System (PCCS) not only keeps pace but outdistance others in the fast-paced technology of the computer industry. We are committed to doing so. Our system now has online capability to the DMV to retrieve registered owner information and for placing and releasing registration holds in a matter of seconds. Within a year of its founding, TDS became a recognized Hewlett Packard Value Added Supplier. It became clear that the problems of many cities,colleges,and universities in the parking citation management and collections business were not being addressed by the existing traditional solutions. Our first.objective, to enhance the Parking Citation Collection System, had been set for us. PCCS is now qualified as an HP Plus Referenced Software Product, a distinction given only to software highly recommended by six (6) or more satisfied customers. At the same time, we upgraded our computer hardware to a "state-of-the-art" technology. Another important company objective was to get accepted by the parking enforcement community as Turbo Data Systems rather than the previous PADS(Public Agencies Data Systems). We entered into our first public sector parking citation contract in 1986 with the City of San Clemente for the processing of both in-state and out-of-state parking citations. Thereafter, we wereawarded a contract by the County of Orange to process in-state parking citations for all of the County's issuing agencies including the Highway Patrol, Sheriffs-Coroners, Marshals, Parks, and State Troopers. TDS' staff has accumulated over twelve (12) years of valuable experience working with clients in the area of parking citation and collection processing. As a result, our software has been developed to accommodate the majority of a jurisdiction's needs. We do, however, recognize that each jurisdiction has unique ordinances and practices which must be incol•porated into a system for it to be usable. 5 eu 8 CITY OF SAN LUIS OBISPO TDS has been in business over seven (7) years and has every intention of continuing the business for decades to come. This can best be illustrated by the following facts: ' we are privately held • we are very cautious in our expansion, as is evident in our history • we fund all growth from earnings ' we have never had to seek venture or equity capital. Our projections for continued growth are attributable to our firm's philosophy, including after-the-award support and service. That's why the implementation of our parking citation data processing services for a new customer is seen as the beginning of a long relationship. 6 �3 9 ::ITY OF SAN:LUIS OBISSPO III. RE'FERENCES-�' • ray: - M .i' _ F DATE AGENCY .- co is SERVICES a 10/80 city oC Bcvcil:y Hills Margic Ivloorc in=state ' 464'North Rcaford Drive- Parking Coordinator out=of-state c; ;Beverly Hills,CA 9off0 .4(213) 285-2196 collection ,+ 51 l handhcld ,/07/89 City`oC Santa.Mon'ica Debra Sowcrs in-state 1685`Ma:iivSti'cct Liccnsc/Permit Supervisor handhcld Sanfa,Monica.,CA;90.61' (31.3) 458-8745 „ . . r 01/87 CityoC Wc'i,Holl'ywood Toby Fox in-state 8617 Santa+Monica Blvd Parking Managcr out-of=state F,1 West Holly -hod, CA 90069 .(2k3•p854-7374 collection s ts . fl U handhcld 05/79 city;6r'Fo-Vnta n.Vallcy Jo Wcbstcr in-state v 1 10200'Slatcr Avenue Records Supervisor out=oC=state h Y' Fountain Vallcy,,.CA 93708 (714) 9654470 collection 05/86 Crty of San Clemente Mikc Whitc in-"state . 1001.P,residio= Asst. Finance Director out=of-state. Sam Clccncntc, CA 9267.2 (714) 361-.8312 collections t . i handhcld ,y + 07/86 zCounty of Orangc Dc"eisc"Recd in state ' 10 Ei'vic'Gentcr Plaza (I i4) 83-4-4.431 out-of-state L Santa=Acia,'.CA 92.701 l ' t • 09./86 Cify',oC Palm Springs Dana Rascon in-state a•.. t r - _ v 3200 Tahqui'tz Road (619) 323-823:1 out-of-state Palm Springs,;CA 92263 collection ;. handhcld 5 _ 22 r CONSULTANT SERVICE AGREEMENT FOR PROCESSING AND COLLECTING PARKING CITATIONS This AGREEMENT is made by and between Turbo Data Systems, Inc. , hereinafter referred to as "CONTRACTOR, " and the City of San Luis Obispo, hereinafter referred to as "City, " and entered into this WITNESSETH WHEREAS, CITY desires to retain certain services to provide for timely processing of. citations to discourage abuse of established parking time limit, encourage intended usage of parking spaces and generate income for the parking program, the services provided by CONTRACTOR are for processing of fines, bail and forfeiture thereof, in connection with the issuance of citations for illegal parking pursuant to the laws of the.State of California and ordinances of the City and County of San Luis Obispo. WHEREAS, CITY desires to engage CONTRACTOR to provide services described hereinafter by reason of its qualifications and experience for performing such services on the terms and in manner set forth in agreement and Exhibit 'A' attached hereto. NOW, THEREFORE, in consideration of their mutual covenants, the parties hereto agree as follows: ARTICLE I -- PROJECT COORDINATION 1. 1 CITY. The Director of Public Works shall be the representative of the CITY for all purposes under this agreement. The Director or his designated representative shall supervise the progress and performances of services under this agreement. 1.2 CONTRACTOR. CONTRACTOR shall assign an individual as liaison with the CITY'S representative. Roberta Rosen is hereby designated CONTRACTOR'S liaison. Should circumstances or ' conditions subsequent to execution of this agreement require a substitute liaison for any reason, the replacement designee shall be subject to prior written acceptance and approval of the Director. Such approval shall not be unreasonably withheld by the CITY. ARTICLE II -- PROCESSING 2 . 1. REFERRAL AND RECONCILIATION. CONTRACTOR shall receive and .process _parking citations which are forwarded through a local Post Office Box to CONTRACTOR and computer-generated citations transmitted to CONTRACTOR via modem. CONTRACTOR will provide a daily reconciliation of the number of citations delivered, and transmitted, by CITY. 2-.2 DETERMINATION OF PROCESSABLE CITATIONS. CONTRACTOR shall screen the parking citations referred, or transmitted, to it by CITY to determine if the citation is processable. If the citation is determined by CONTRACTOR to be unprocessable (e.g. , blank license number) , CONTRACTOR shall return the citation to CITY within seven (7) days for clarification. CONTRACTOR will be paid the contractual rate of seventy-nine (79) cents for citations returned to the CITY as unprocessable. 2-.3 COLLECTION AND DEPOSIT OF FUNDS. CONTRACTOR .shall collect and deposit all monies received for the payment of parking citation fines and fees in an account, with a mutually-agreed-upon financial institution within 24 hours of receipt in office. CONTRACTOR will receive payments from vehicle owners through the mail. 2.4 CONTRACTOR will provide use of all the necessary hardware and software including full maintenance and all support services required to provide total citation processing and reporting within 30 days of approval of this Agreement. 2..'S IDENTIFICATION OF REGISTERED VEHICLE OWNERS. CONTRACTOR shall make at least three (3) attempts to obtain the name and Address of the registered vehicle owner from the California Department of Motor Vehicles for each vehicle for which a parking citation has been issued and for which payment has not been received within the required time period. CONTRACTOR shall follow all procedures specified by the Department of Motor Vehicles, and be consistent with the California Vehicle Code when identifying registered vehicle owners. 2.6 VERIFICATION OF OWNERSHIP. CONTRACTOR shall ensure that adequate identification of registered vehicle owners and verification procedures are utilized which take into consideration,. at the very least, the following factors: issuance of new license plates, address changes, license plate transfers to other vehicles, name changes, and the validity of plates and registration during specific time periods applicable to individual cases. 2 .7 DELINQUENCY NOTICES. CONTRACTOR shall generate and mail (first-class postage and within a reasonable period of time) delinquency notices to all identified registered owners of vehicles who fail to pay their parking citation fines or to post bail in the required manner. The period of time will not exceed the time limits provided by State and local law. The mailed notice will include all information required by the California Vehicle Code., including but not limited to the following: C'3�z 1. The parking citation issuance date and number; 2. The consequences of nonpayment (a hold on the vehicle registration and the imposition of penalties) ; 3 . The amount of fines and fees due and payable; and 4 . An affidavit of non-ownership. NOTE: The delinquency notice form must comply with the requirements of State law. 2. 8 DMV REGISTRATION HOLDS. The CONTRACTOR will be responsible for placing a DMV hold on vehicle registrations having unpaid parking .fines and fees due against those vehicles in accordance with the California Vehicle Code and other applicable State and local laws. The holds will be placed within a reasonable period of time after the issuance of a delinquency notice. The period of time will not exceed the time limits provided by State law. 2.9 REMOVAL OF DMV REGISTRATION HOLDS. CONTRACTOR shall be responsible for removing DMV registration holds when a registered vehicle owner satisfies the entire amount of parking citation fines, penalties, and fees due against the vehicle, and establishes such payment to the satisfaction of the CONTRACTOR. 2 . 10 CONTESTED CITATIONS. In the event a registered vehicle owner disputes the liability for the outstanding parking citation, CONTRACTOR shall advise the registered vehicle owner of his/her right to request a court appearance. CONTRACTOR shall coordinate a court appearance for the registered vehicle owner by referring the registered vehicle owner to the CITY. 2 .11 CITATIONS DISPOSED OF BY COURT. CONTRACTOR may be required, as a result of court action, to reduce or cancel, on an individual basis, parking citations which have been referred to it. CONTRACTOR shall be paid the contractual rate hereinafter provided for processing the citation regardless of the outcome of court action. CONTRACTOR shall maintain records indicating any reduction or cancellations of parking citations as a result of court action. 2 .12 SCOFFLAW. CONTRACTOR shall provide monthly reports of registered vehicle owners whose records indicate multiple violations to facilitate the CITY'S enforcement against scofflaws. 2. 13 SUSPENSION OF PROCESSING. CONTRACTOR shall suspend processing any citation referred to it for processing upon written notice to do so by the CITY. CONTRACTOR shall maintain records indicating any suspension of a citation as a result of CITY'S request. CONTRACTOR shall be paid the contractual rate hereinafter provided for processing the citations suspended by the CITY. C-3•/3 2.14 OUT-OF-STATE CITATIONS. Out-of-state citations may be entered the same as in-state citations. These citations will be processed separately from the in-state citations. If they become delinquent, a request for registered owner's information will be sentto the appropriate state agency within a reasonable period of time.. Notices of intent will be mailed. The bail amount will be requested from the registered owner and received by CONTRACTOR which shall deposit such moneys in a mutually-agreed-upon financial institution within 24 hours of receipt. 2.15 ON-LINE DATA SERVICES. The City of San Luis Obispo shall be charged a flat rate of $-0- per month for on-line phone services to access CONTRACTOR'S database for inquiry and downloading of electronic citations and uploading of information to the hand-held computer units. The City shall not be liable for damage to CONTRACTOR'S equipment as a result of transmission of data via phone and conversely CONTRACTOR will not be liable for damage. to City equipment as a result of transmission of data to the City.. CONTRACTOR shall provide sufficient data terminals to allow phone access to database information at least 95% of the time. City shall have access to database information 24 hours a day, Monday through Saturday. ARTICLE III -- GENERAL 3. 1 PUBLIC INQUIRIES. For telephone calls and correspondence, the CONTRACTOR will process matters of a non- judicial nature in a manner which will promote positive public relations; matters of a judicial nature will be referred to the appropriate agency for determination. For scheduled court hearings, CONTRACTOR will coordinate the necessary information with the CITY. Toll-Free/Foreign Exchange telephone service via a local phone number shall be provided by CONTRACTOR at no charge to CITY. 3 .2 CONTRACTOR LIMITATIONS. CONTRACTOR may not do any of the following without CITY'S prior approval, in writing: 1. Take any legal action; 2. Threaten any legal action; or 3 . Make any communication, oral or written, regarding potential legal action. 3.3 USE OF APPROVED FORMS. All forms, delinquency notices, and correspondence sent by the CONTRACTOR must conform to State and local 'law. 3 .4 CONTRACTOR FILES. CONTRACTOR shall maintain files on each parking citation referred to it for processing under this agreement. Such files will contain records of payments, collection efforts, disposition, and any other pertinent information required to provide an audit trail. CONTRACTOR files shall be available for on-site audit upon 24 hours notice. ARTICLE IV -- COMPENSATION The CITY shall compensate CONTRACTOR for its services according to the Fee Schedules attached in Exhibit 'A' and the terms of Article IV. 4 . 1 PROCESSING SERVICES. For performance of the processing services described in ARTICLE II, the CITY will pay CONTRACTOR the rate set forth on the Schedule of Fees (Exhibit 'A' ) for each parking ticket processed by CONTRACTOR, regardless of the ultimate disposition or processability of such ticket. No extra processing charge shall be made for a ticket determined to be unprocessable pursuant to paragraph 2 and subsequently corrected and reentered into the data base. 4 .2 BILLING AND PAYMENT PROCEDURE. CONTRACTOR shall provide the CITY on a monthly basis with a bill and fee analysis which accurately reflects the fees earned during the preceding period. Not later than five (5) business days after the bill and fee analysis have been received, the CITY shall either approve or reject the bill and fee analysis. If approved, the bill will then be processed for payment within 30 days of receipt. If these documents are rejected by the CITY, CONTRACTOR will be notified, and both parties shall use their best efforts to resolve the disputed items. 4.3 CONTRACT ADJUSTMENTS. If postal rates increase during the term of this agreement, the compensation the CITY has agreed to pay CONTRACTOR shall be raised immediately by a corresponding amount to offset the effect of the postal rate increase. ARTICLE V -- REPORTS 5. 1 MONTHLY REPORTS. A Revenue Distribution Report detailing a complete reconciliation of monies received and deposits made, together with supporting detail, shall be delivered to the City of San Luis Obispo by the fifth working day following the end of the monthly remittance period. 5.2 MONTHLY REPORTS. Beginning the month following the date of this agreement, and on or before the tenth (10th) of each month thereafter, CONTRACTOR shall submit to CITY monthly management , reports of its activities relating to performance under this agreement, including but not limited to a summary of parking citations processed (including statistics by issuing City and type of violation) , delinquent citation notices sent, and vehicle registration holds placed with the Department of Motor Vehicles. 5. 3 Failure of CITY to agree with CONTRACTOR'S independent findings, conclusions, or recommendations, if some are called for under this agreement on the basis of differences in matters of judgement shall not be construed as a . failure on the part of CONTRACTOR to meet requirements of this agreement. 5.4 WEEKLY REPORTS. Weekly open citation reports shall be amended to include the due date for the first and second notices. Open citation reports shall be generated on Fridays and be received by the City no later than the following Tuesday. All reports shall be complete and accurate as of the run date. Contractor shall bear all costs associated with guaranteeing timely delivery of the required reports. ARTICLE VI -- TERM OF CONTRACT 6. 1 TERM OF CONTRACT. The term of this agreement shall be from the date signed by CONTRACTOR and CITY until June 30, 1993 , and may be extended for additional one-year periods, up to three years, upon agreement by both parties. The Public Works Director shall be authorized to extend the contract on behalf of the CITY. 6.2 CONTRACTOR'S RATES. Beginning July 1, 1994 , and effective July 1 in subsequent years of the agreement, the CONTRACTORS rates shall increase according to the increase in the Consumer- Price Index (CPI) , during a prior 12-month period, for All Urban Consumers, Los Angeles-Long Beach-Anaheim Metropolitan Area, All Items. This index shall be the index published by the United States Department of Labor, Bureau of Labor Statistics. 6.3 TEMPORARY SUSPENSION. The Public Works Director shall havethe authority to suspend the project under this agreement wholly, or in part, for such period as he deems necessary due to unfavorable conditions or to the failure of the CONTRACTOR to perform any provisions of this contract. CONTRACTOR will be paid the. compensation due and payable to the date of temporary suspension. 6. 3a PERFORMANCE STANDARDS. For any and all citations that are determined to have errors as a result' of any of the conditions cited below, the processing fee for said citations shall be waived. -- Delayed payment and/or citation and/or disposition posting which result in citizen complaints (greater than 48 hours from receipt) . -- Delayed updating (updating on a daily basis) . -- Erroneous bail and penalty applications which are reflected on the Notice of Delinquent Parking Violation and result in lost revenue to the City. Additionally, if more than 2% of citations entered are erroneously keypunched in any month, the processing fee shall be waived on those. citations over the 2$ limit. CONTRACTOR shall continue to endeavor for term of contract to provide and maintain consistent and competent personnel for services rendered. CONTRACTOR must comply with all provisions of the contract pertaining to timely posting of payments and quick problem resolution as well as other provisions. Failure to meet said .performance standards may result in termination of the contract.. 6.4 TERMINATION. The CITY retains the right to terminate this agreement for any cause by notifying CONTRACTOR in writing sixty (60) days prior to termination and by paying the compensation due and payable to the date of termination; provided, however, if this agreement is terminated for fault of CONTRACTOR, CITY shall be obligated to compensate CONTRACTOR only for that portion of services which are of benefit to the CITY and which should take into account the work completed up to the date of termination. Said compensation is to be arrived at by mutual agreement of the CITY and CONTRACTOR. Should they fail to agree, an independent arbitrator is to be selected by the parties whose decision shall be binding upon the parties. Upon such termination, CONTRACTOR shall turn over to the CITY immediately all unprocessed citations, monthly reports to date, files of unprocessed citations, undeposited monies received for payment of parking citation fines and fees, and any other records or documents for which CONTRACTOR shall not be liable .for CITY'S use of incomplete materials. ARTICLE VII -- CONFIDENTIALITY 7 . 1 MATERIALS CONFIDENTIALITY. All reports, information, data, files, and tapes furnished or prepared by the CONTRACTOR, its subcontractors, successors, or assigns (to the extent hereinafter allowed) for the purpose of transmittal to CITY pursuant to this agreement are confidential. 7 .2 CONSENT FOR DISCLOSURE. No report, information, data, files, or tapes furnished or prepared by CONTRACTOR or its sub- contractors, successors, or agents, shall be made available to any individual or organization without the prior written approval of CITY other than individuals or organizations who are reasonably necessary to properly effectuate the terms and conditions of this agreement. 7.3 RIGHTS IN DATA-CONFIDENTIALITY. All computer software and systems, related automated and manual procedures, instructions, computer programs, and data storage media containing same, and written procedures related thereto as they relate to the service to be performed hereunder are and shall remain exclusively the sole property of CONTRACTOR and the CITY shall acquire no right or title . to such items. The CITY shall not provide or otherwise make available said systems, procedures, instructions, programs, or media, in any form, to any ,person except as otherwise provided in this Article. In order to enable Turbo Data Systems, Inc. , to carry out its work hereunder, to some extent, they will have to impart information which is the subject of this paragraph. To the extent that such confidential material is imparted to the CITY'S employees, the CITY agrees that it will retain all information submitted by CONTRACTOR to the CITY in the strictest confidence and will neither use or disclose it without the explicit permission of CONTRACTOR. The CITY recognizes that irreparable harm can be occasioned to Turbo Data Systems, Inc. , by disclosure of information related to its business and that Turbo Data Systems, Inc. , may accordingly enjoin such disclosure. �3�� Iry 1 • ARTICLE VIII CLAIMS AND- ACTIONS-8.1 REASONABLE A9SISTANCE' 0P CONTRACTOR. In the event� any.,.� ,. claim or action 'is brought against CITY relating to CONTRACTOR',S;•. • performance:'oriservices rendered. under this agreement; :CONTRACTOR. shall rendef any 'reasonable assistance and coop eration. whlch �CITY::= might require ` 8 _2 CITY COOPERAT2ON. In the event any claim or action s, brought against .CCNTRACTOR relating to CONTRACTOR'S performance of;"L% service rendered under- this agreement, CON.TRACTgR shall notify tie: CITY, -in• wr_it ng--- within. (5) days, of said claim or action- 5 -8.3 INDEMNIFICATION: CONTRACTOR agrees- to indemnify 'and hold CITY harmlessxagainst any and all. liability, costs,_ and expenses.; ; ,. • includ'Zng 3t'forney"s fees, occasioned by claims or suits for lossi: 1111. _.: _ _ or damages azisking. out. of acts of the agents., •servants.,' employees°;,;; successors, ; or-. assign (to the extent her-eina'fter allowed) of CONTRACPOR; dur ng the term of this AGREEMENT. Conversely; avm?- agrees to indemnify and hold CONTRACTOR harmless against any and;,., all liabilities; costs; and expenses, including attorney's occasioned by claims or- suits for loss or damages arising .out of 5.. the, acts of =:the, agents; servants, or employees of CITY: 1 _8.4 INSURANCE: CONTRACTOR shall provide and maintain at- own t own expense during the term of this agreement., the following: policy or P.o.". i-cies of insurance covering its oP erations hereunder:- Such insuranc-e ,-shallbe - provided. by insurer(s) satisf'•actory to the 711 -, CITY and certificates of such. insurance and copies of endorsements+ shall be delriverad. 'to the CITY on or before the effective: date ofi thisagreement,. Such certificates shall 'specifically identify this:' _ agreement and sha31 not be canceled, reduced in coverage or limits;: or non`renewed except after- thirty (30) d'ay's written notice has: - LL ^ �R been. givento ,the CITY'. (a)� Comprehensive general liability with -a combined single.' lim t of not less than $1, 000, 000 per occurrence for-.', property 'damage+ and .for bodily injury o= death of persons. insurance 'shalh. be primary with respect to 'any insurance mairntained ,!- - by the- CITY., and shall not call on the CITY'S insurance for^ contributions ; . . Such insurance shall be endorsed for contractual',: liability -and -personal injury and _shall include the CITY, its' ' officers, agents.; and employees_ as -1 _ additional insureds: W , respect to 'the ,interest of the CII-TY; such insurance shall not canceled,,,-.keduced in coverage or limits, or non renewed except" ,,.°: _ • after thirty (30) day's, written -notice by Certified Mail; ,Return x: Receipt Requested; has been. given to the CI:T,Y. r (bj Comprehensive. automobile liability owned; non=owned;;;-.; and hired :vehicles with not less than '$'1; 000, 000 combined°.sing.le limit .per occurrence forproper--f-y damage and f;or bodily injury or,-'. death of persons. Such insurance shall include the) same'^ additional insured and cancellation-notice provisions as sp.ecified` . in sub paragraph (a) above and may be combined with the comprehensivd, .general liability coveragq required above," F L�.3- (c) Comprehensive blanket crime policy, in an amount of. $100,000 per occurrence insuring against loss of money, securities, or other property referred to hereunder which may result from (1.) dishonesty or fraudulent acts of officers, directors, employees of CONTRACTOR, (2) disappearance, destruction, or wrongful abstraction inside or outside the premises of CONTRACTOR while in the care, custody, or control of CONTRACTOR, or (3) sustained through forgery or alterations of checks, drafts, or any order or direction to pay a sum certain in money. (d) A program of Worker's Compensation insurance in an amount and form to meet all applicable requirements of the labor code of the State of California and which specifically covers all persons providing services on behalf of CONTRACTOR and all risks to such persons under this agreement. ARTICLE IX -- SUB-CONTRACTORS AND ASSIGNMENTS 9 . 1 SUB-CONTRACTING. CONTRACTOR is authorized to engage sub- contractors within the State of California at CONTRACTOR'S own expense. Any sub-contractor would not operate to relieve CONTRACTOR of duties, liabilities, and obligations. 9. 2 ASSIGNMENTS. This agreement may not be assigned without the prior written consent of the CITY. ARTICLE X -- INDEPENDENT CONTRACTOR 10. 1 CONTRACTOR'S RELATIONSHIP. CONTRACTOR'S relationship to CITY in the performance of this agreement is that of an -independent contractor. Personnel performing services under this agreement shall at all times be under CONTRACTOR'S exclusive direction and control and shall be employees of CONTRACTOR and not employees of the CITY. CONTRACTOR shall pay all wages and salaries and shall. be responsible for all reports and obligations respecting them relating to social security, income tax withholding, unemployment compensation, worker's compensation, and similar matters. Neither CONTRACTOR nor any agent or employee of CONTRACTOR shall obtain any right to retirement benefits or other benefits which accrue to employees of CITY, and CONTRACTOR hereby expressly waives any claim it might have to such rights. 61-3-! �' ARTICLE XI -- ENTIRE AGREEMENT 11. 1 INTEGRATED AGREEMENT. This agreement is intended by .the parties as a final expression of their agreement and also as a complete and exclusive statement of the terms thereof, a prior oral or written agreement regarding the same subject matter. notwithstanding. The terms, covenants, and conditions of this agreement shall. apply to and shall bind the heirs, successors, executors, administrators, assigns, and sub-contractors of both parties and may not be modified or terminated orally and no modification or any claim of waiver of any of the provisions shall be effective unless in writing and signed by both parties. 11..2 LAW APPLICABLE. CONTRACTOR agrees to comply with all laws within the State of California governing the conduct of business, including but not limited to laws pertaining. to licenses, taxes, corporate regulation, and collection practices. 11.3 WAIVERS ' The waiver by either party of any breach or violation of any term, covenant, or condition of this agreement of any provision, ordinance, or law shall not be deemed to be a waiver of any subsequent breach or violation of the same or of any other term, covenant, conditions, ordinance, or law. The subsequent acceptance by either part of any fee or other money which may become due hereunder shall not be deemed to be a waiver of any preceding breach or violation by the other part of any term, covenant, or condition of this agreement or of any applicable law ' or ordinance. 11.4 COSTS AND ATTORNEY'S FEES. The prevailing party in any action between the parties to this agreement brought to enforce the terms of this agreement or arising out of the terms of this agreement may recover its reasonable costs and attorney's fees expended in connection with such an action from the other party. 11.5 DISCRIMINATION. No discrimination shall be made in the employment of persons under this agreement because of the race, color, national origin, ancestry, religion, or sex of such person. If, CONTRACTOR is found in violation of the non-discrimination provisions of the State of California Fair Employment Act or similar provisions of Federal Law or executive order in the performance of this agreement, it shall hereby be found in material . breach of this agreement. Thereupon, CITY shall have the power to cancel or suspend this agreement, in whole or in part, or to deduct from the amount payable to CONTRACTOR the sum of twenty-five dollars ($25) for each person for each calendar day during which such person was discriminated against, as damages for said breach of contract or both. Only a finding of the State of California Fair Employment Practices Commission or the equivalent Federal agency or officer shall constitute evidence of a violation of contract under- this paragraph. 11. 6 NOTICES TO PARTIES. Any notice required under this `--.. agreement to be given to either party may be given by depositing in the United States mail, postage prepaid, , first=class, a -pat-ice addressed to the following: CONTRACTOR: Turbo Data Systems, Inc. 14272 Franklin Avenue, Suite. 100 Tustin, CA 92680 CITY: City Clerk's Office City of San Luis Obispo P. 0. Box8100 -. . :: .• San Luis Obispo; CA 93403=8100 Attention: Diane Gladwell, City Clefk WHEREFORE, the parties hereto have entered into this agreement . as of the day and year first hereinafter written. CITY OF SAN LUIS OBISPO By: MAYOR ATTEST: By; CITY CLERK TURBO DATA SYSTEMS, INC. By: — - - — — (REPRESENTATIVE'S NAME % TITLE_) J. ±�-n W� y J "YO ?il �1Si ''• r f'w y�'p h' if` ,k yyAq Fxi t1"'ry ') � ' JN �. •'^'SS- y9 .. r�b�"N X'E/y�k V ..'d "'�� , U. . ,ya.9 ': ° as y,q " ♦i... S . ddif ',t r <; � e '� � ++.f�., L 3a.-' � ,• 1.!�zlySat4 Z^'^b ,mssr$'g' 'EXHIBI-I-v - A ` FEE SCHEDULE• ` }^ -W1 - ' Si•ti.Kim i y� r. ', p:. t, vc� ., ,. r t•p�"F.yvt�;s' , Fee schedule ,I:EY based :'on 61_1, d. i't at i 6 h AgUdd:by. ;the CITY �" _ ! a �� � .,. �. ,. .cpm •. y' r d.Lt, i� „y'�,4 •��,�.F�.tr 6. } ;- r, Volume �r :�7a Flat Rater Cita tions: Issued Annually :, Per Citation Issue --- - .• , r 71 1st Notice 2n4Notice'b! f'€'�'. h 0. - 65.,.000'.1 ations, issuedi . ;; 79 ". s z. 9 , rt r4 : j1 r ..e„ t in-y -a• - 1`r'C 41 " r ItiC •a-'^�`r 2 Out-ofState' = P' c ssina. FEE 33$it of, r--eyenue collected. from •noticed Out_of�State ci atfons r S ..,.. �1 <Y3•..„�y��,`�,r. - r .. ,, _ p 9 ;mat rc a Option_ al Servi''ces-(rf- reques_ ted_by 'CITYI SPECIALLCOLLECTIONS PROCESS:2NG including t , *, DMV ho_�ld r-e]ects 4.* 1 ..: -p ° 4•r�„ + rMF les �:{ . Inactive scofflaw status wsv ,tier y *a*Vehic`le make mismatch infortation y�- * out of-State open and unpaid for .one 'No name o= address for one year FEE::' `df revenue collected.. r NON SUFFICIENT FUNDS (NSF) CHECK PROCESSING linZ Sendirng a fo low-up •letter- to citiaen hotifying .of NSF..ch6'— status,:-iapplicat on of NSF penalty of .$-N./A—, and requesting; remittance #6f funds.. Includes system• adjustments reactsvation_ Sof' records,; penalty',', and. hold procedures. , FEE , per- NSF .pk--ocbssed. HABITUALkOF.EENDER' LETTERS' 6 s 1�Lrbl a Inc ludesr,-reseachng. database to• obtain "current. r-egistered. owned(�R/�O)% status, updating habitual offender -hotsheet, and`� {9 sendling"s a special letter tp R/0!s wtib have accumulated�r a' h specified, number of unpaid) citations FEE ` NSA' perms letter, FIRST VhDEO a;DISPLAY TERMINAL No_ ChargeLb iAi R•r a' 1 G,s Y�'•Y r .J ' .. .. C'• 4 �� ,,V yya�lT�i«"! lt•`, , ��,"�"wc •. '!� - ^ 9. ._ � �"iii f s-oC,'��+y`� lP,..i: 4'' �// . . .. � .•..��'�:"'�'!6_.$�v` .. :r u"r'@ ah �¢+S 5`.,. o �t r��' 7tf.�yV`�w� �.x.b:,, _. INSURA. . d, REQUIREMENTS FOR CONI. _ .CTORS Contractor shall procure and maintain for the.duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees or subcontractors. Minimum Scone of Insurance Coverage shall be at least as broad as: 1 1. Insurance Services Office Commercial General Liability coverage (occurrence form CO 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1. (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. Minimum Limits of insurance Contractor shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. Deductibles and Self-insured Retentions Any deductibles or self insured retentions must be declared to and approved by the City. At the option of the City, either. the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions The genera! liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor, premises owned, occupied or used by the Contractor, or automobiles owned leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self- insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers. 4. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the-limits of the insurer's liability. S. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, cancelled by either party, reduced in coverage or in limits except after thirty(30)days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of insurers Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Verification of Covernce Contractor shall furnish the City with a certificate of insurance showing required coverage. Original endorsements effecting general liability and automobile liability coverage are also required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. Subcontractors Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. n 3`_J G14