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
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j
I
I
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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
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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 ($25) for each person for each calendar day during which
such person was discriminated against, as damages for said breach
of contract or both. Only a finding of the State of California
Fair Employment Practices Commission or the equivalent Federal
agency or officer shall constitute evidence of a violation of
contract under- this paragraph.
11. 6 NOTICES TO PARTIES. Any notice required under this `--..
agreement to be given to either party may be given by depositing in
the United States mail, postage prepaid, , first=class, a -pat-ice
addressed to the following:
CONTRACTOR:
Turbo Data Systems, Inc.
14272 Franklin Avenue, Suite. 100
Tustin, CA 92680
CITY:
City Clerk's Office
City of San Luis Obispo
P. 0. Box8100 -. . :: .•
San Luis Obispo; CA 93403=8100
Attention: Diane Gladwell, City Clefk
WHEREFORE, the parties hereto have entered into this agreement .
as of the day and year first hereinafter written.
CITY OF SAN LUIS OBISPO
By:
MAYOR
ATTEST:
By;
CITY CLERK
TURBO DATA SYSTEMS, INC.
By: — - - — —
(REPRESENTATIVE'S NAME % TITLE_) J.
±�-n W� y J "YO
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` FEE SCHEDULE• ` }^
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Fee schedule ,I:EY based :'on 61_1, d. i't at i 6 h AgUdd:by. ;the CITY
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Cita tions: Issued Annually :, Per Citation Issue
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1st Notice 2n4Notice'b!
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0. - 65.,.000'.1 ations, issuedi . ;; 79 ". s z. 9 ,
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Out-ofState'
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FEE 33$it of, r--eyenue collected. from •noticed Out_of�State
ci atfons r
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..,.. �1 <Y3•..„�y��,`�,r. - r .. ,, _ p 9 ;mat rc a
Option_ al Servi''ces-(rf- reques_ ted_by 'CITYI
SPECIALLCOLLECTIONS PROCESS:2NG including
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*, 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..
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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
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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