Loading...
HomeMy WebLinkAboutC-3069 - Collection of Delinquent Parking CitationsQ agW P°�T ° - CITY OF NEWPORT BEACH U P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915 C'9C! FO RNNP TO: FROM: DATE: PURCHASING /ADMINISTRATIVE SERVICES DEPARTMENT CITY CLERK September 28, 1995 / 0 g 1.7-'?-9- SUBJECT: Contract No. C -3069 Description of Contract Collection of Delinquent Parking Citations Effective date of Contract September 26, 1995 Authorized by Minute Action, approved on July 10, 1995 Contract with Data Ticket, Inc. Address 9911 Larson Avenue Garden Grove. CA 92644 Amount of Contract (See Agreement) Wanda E. Raggio City Clerk WER:pm. Attachment 3300 Newport Boulevard, Newport Beach AGREEMENT This agreement between the City of Newport Beach (hereinafter "City "), a Municipal Corporation and Charter City, and Data Ticket, Inc., A California Corporation ( "DTI") is dated September 26, 1995, and entered into for the following reasons: 1. DTI is authorized to act as an agent for various cities in the State of California to process and collect unpaid parking citations. 2. City employees cite for, and process citations pursuant to the provisions of Vehicle Code Section 40200, et seq. City has need for a consultant to assist City in the processing and collection of unpaid parking citations. 3. DTI has submitted a proposal to City to provide such services and City desires to accept the proposal., . NOW THEREFORE, the parties agree as follows: 1. The term of this Agreement is three years from the date first written above. The term of this Agreement may be automatically renewed for an additional three year term, upon mutual written agreement of the parties. 2. During the term of this Agreement, either party may terminate the Agreement at any time, without cause,' upon 30 days written notice to the other party. 1 0 • 3. DTI will, under the terms of this Agreement perform the following services as an agent for the City: a. Solicit payment for delinquent parking citations. b. Maintain records of all actions taken to solicit payment for each citation, and make such records and information available to City upon request during regular business hours. C. Provide City with management reports of all activities on behalf of City on a monthly basis. d. Use DTI's best efforts to solicit payment to obtain the best results. e. Perform all activities in strict compliance with Federal, State, and local. laws, including but not limited to adherence to the Fair Debt Collection Practices' Act (FDCPA). 4. Under the terms of this Agreement, City will assist DTI in performing its services.by doing the following: a. Provide authorization for DTI to do.,business on the City's behalf, with. the Department of Motor vehicles and credit bureaus in the United States and Canada. b. Forward to DTI all citations which are unpaid 60 days from the date of issuance, except the following which will be forwarded to DTI as specified: 1. out of state citations - forwarded when issued; 2. wrong addressed mail- forwarded when received by City; 3 City. any other conditions to be determined by the 3 5. City will receive all proceeds from DTI's efforts pursuant to this Agreement and administer and be accountable for all funds received. 6. As consideration-for DTI's services, City will pay to DTI 30 percent of all funds collected pursuant to this contract. 7. City will reimburse DTI for postage at current first class postage rates. Three mailings for an unpaid citation will occur before specialized mailings begin. specialized mailings will be subject to prior approval of City. 8. ' :City will place DMV holds as direct by DTI. DTI will be responsible to pay DMV hold fees under the following conditions: All holds previously placed by City, prior to the 'effective date of this Agreement, shall be the City's responsibility. All holds placed during this agreement shall be solely placed by DTI and DTI shall offset funds expended by City for these holds in its regular billing. 9. DTI shall not be responsible for City's failure to provide correct or timely parking ticket information. 19.. If City elects to 'terminate this agreement, DTI shall have 12 months to collect sums outstanding for all unpaid citations for which collection efforts were commenced prior to the termination date and DTI is, entitled to receive compensation for these efforts as noted in Paragraph 6. City will provide monthly accounting to DTI. 3 • • 11. The operations of DTI shall not be disclosed by City, except as required by law, unless written agreement is provided by DTI. 12. DTI shall comply with Title VI of the Civil Rights Act of 1964, and no person shall,•,on the grounds of race, creed, color, sex, or national origin, be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination under this agreement. DTI will comply with all State, Federal, and local municipal laws of City. 13. DTI agrees to the provisions mentioned in the City of Newport' Beach Notice requesting proposal, consultant services -- parking citation collections, dated May 15, 1995. 14. DTI shall indemnify and hold harmless City, its officers, directors, employees,. and subcontractors from all claims and actions, including reasonable attorneys fees, based on, or arising out of damages, or injuries to persons or tangible property caused by error, omission or negligent act of DTI, or any of its agents in the performance of the services under this agreement. 15. City shall indemnify and ..hold harmless DTI, its, officers, directors, employees, and subcontractors from all claims and actions, including reasonable attorneys fees, based on, or arising out of damages, or injuries to .persons or'tangible property caused by error, omission or negligent act of City, or any of its agents in the performance of the services under this agreement. 16. This agreement may not be assigned or transferred or any interest in the agreement assigned or transferred, directly or 4 indirectly, by operation of law or otherwise without prior written consent of City. Any attempt to do so, without consent of City, shall be null and void. In any assignees, or transferees shall acquire no right or interest by reason of an attempted assignment or transfer. 17. All notices, demands, requests, or approvals to be given under this agreement shall be given in writing and shall be deemed served when delivered personally, or when the second business day after deposit in the united States mail, postage prepaid and addressed as provided as addressed in this agreement. a. All notices to City shall be addressed at: Revenue Manager, City of Newport Beach, 3300 Newport Beach, Newport Beach, CA 92659 -1768 b. All notices to DTI shall be addressed as follows: Data Ticket, Inc., 9911 Larson Avenue, Garden ,Grove, CA 92644 DTI: By: j U CITY: By: r APPROVED AS TO FORM: CITY ATTORNEY: By ATTEST: CITY CLERK: wb \agt \datatick.agt 0 A._ 1 0 1995 July 10, 1995 TO: HONORABLE MAYOR FROM: Glen Everroad, Revenue Manager SUBJECT: PARKING CITATION COLLECTIONS A* C 3o69 � � N�) Council Agenda No. #7 C COUNCIL Recommendation The Administrative Services Department respectfully recommends the City Council adopt the attached proposed Resolution and authorize an agreement with Data Ticket to assist in the collection of delinquent parking citations. . Backeround The City issues approximately 90,000 parking citations annually, with an average fine of $36. In 1993, parking citations were decriminalized by Assembly Bill 408, and collection of parking violations became a civil pursuit. AB 408 also established noticing and adjudication requirements the City must follow in the collection of parking fines. While approximately half of the parking citations issued are paid by the violator after receiving just the citation, the other half require the City to take additional steps to collect the fine. When notices to the violator do not result in payment of the fine, the City places a hold with the Department of Motor Vehicles (DMV) on the violating vehicle requiring the registered owner to pay the fine prior to registering the vehicle. Only about one third of the nearly 20,000 citations sent to DMV each year are collected through this process. Unpaid parking citations are returned to the City after four years. The statute of limitations for parking citations is five years. Once returned to the City, the City takes no additional collection action. Each year, the statute of limitations for as many as 10,000 unpaid parking citations expires. Discussion Last April, a Request for Proposal (RFP) was transmitted to twenty companies offering parking citation related and /or collection services. The RFP sought a consultant with experience in parking citation collections to provide collection services for delinquent parking violations on both in -state and out -of -state plates, including temporary tags, dealer plates, leased and rental vehicles. Proposals were evaluated on the following criteria: 1. Qualifications of the consultant, knowledge and experience in parking citation processing and collections in California 2. Responsiveness to the City's requirements 3. References from other California governmental agencies 4. Cost of engagement The City received proposals from six companies, three of which were from companies with experience in parking citation collections. On June 26, 1995, these three companies provided presentations of their services to the Finance Department. Based on the criteria set forth in the RFP, the Administrative Services Department selected Data Ticket as the most qualified proposer to provide the City assistance in delinquent parking citation collections. A copy of the RFP is attached, and copies of the proposals received are available for review in the Administrative Services Department. Parking Citation Collections page 2 Vehicle Code 40203.5(a) provides that the issuing agency (City) may impose late fees, administrative fees and other charges related to the cost of collection on parking penalties. Data Ticket's proposal provides that their compensation be based on a percentage (30 %) of their collections. The attached proposed Resolution would provide that the cost of collection for those citations collected by the City's consultant would be added to the penalties owed by the violator. If adopted, the proposed resolution would ensure that the City collect 100% of the original amounts owed by the violator and that the costs for any additional collection effort be borne by the violator. Glen Everroad Revenue Manager attachments CITY OF NEWPORT BEACH NOTICE REQUESTING PROPOSALS CONSULTANT SERVICES - PARKING CITATION COLLECTIONS The City of Newport Beach invites your proposal to provide collection services for delinquent parking violations on vehicles licensed both in -state and out -of- state, including temporary tags, dealer plates, leased and rented vehicles. The City intends to capture the costs of the consultant's collection services from fees imposed on the violator. The City desires the consultant to accept credit card and repayment plans for payment of parking citations. The City desires the consultant to have a thorough knowledge of Assembly Bill 408, parking citation issuance, identifying registered owners of vehicles registered in the United States and Canada, noticing, and collections as evidenced by being actively involved in parking citation processing for a minimum of three years. The successful bidder should have the ability to trace debtors, obtain address corrections, be a credit reporting company for major credit reporting agencies and have the software /hardware to electronically interface with. appropriate City computer systems. The successful bidder will also be responsible for payment of fees to place unpaid citations on hold with the California DMV. It is the intent of this proposal bid to allow the City to select the most qualified and dependable consultant to provide this service at a competitive price. PROPOSAL FORMAT The 'following proposal format is required and has been designed to facilitate comparison among the bidding consultants. Three copies of the proposal must be provided. Cover Letter - Introduction Introduce your firm and summarize your proposal. Describe your understanding of the project and your general approach to responding to City requirements. Please include the name and telephone number of a contact person in your firm. Qualifications Include specifics regarding your knowledge and experience in providing parking citation collections. Describe your understanding of the provisions of AB 408 as it applies to parking citation collections. List five current customers receiving parking citation collection services and any previous customers by contact name, title, telephone number and period of time services were provided for each. Indicate your effectiveness in terms of percentage of collections for each. List the States and Canadian Provinces from which you have successfully accessed registered owner information. Indicate which credit cards you accept and whether you accept repayment plans, and how you account for such payments. 01 Technical Approach Describe the techniques you utilize in obtaining payment of delinquent (at least 60 days unpaid) parking citations. Compensation for consultant services will be provided as a percentage of the collections from delinquent violators. Many existing unpaid citations date back several years. The City desires proposers to represent both the rate for collection of of delinquent citations existing as of the contract date and the rate for collection of parking citations which become delinquent after the contract date. Responses must be received no later than 4pm, May 15, 1995. Vendors are to send three copies of their bid response to: Mr. Glen Everroad Revenue Manager City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92658 Any questions should be directed to Mr. Glen Everroad, at (714) 644 -3141. OPERATIONAL INFORMATION The City will electronically provide information of delinquent parking violations issued to in- state, out -of- state, leased and rented vehicles. This information will be provided to the Vendor on a monthly basis or as mutually agreed. Either party may receive all payments and forward the receipt of payment information to the other on a weekly, monthly or as mutually agreed upon basis. SELECTION PROCESS The successful consultant will be selected by City staff and recommended to the City Council. City staff may conduct interviews of the best qualified consultants if it is deemed necessary. The consultant's proposal will be evaluated on the following criteria: Qualifications of the consultant, knowledge and experience in parking citation processing and collections in California. 2. Responsiveness to the City's requirements. 3. References from other California governmental agencies. 4. Cost of engagement. INSURANCE The successful bidder will be required to present to the City evidence of insurance. Specific coverage required are Workers Compensation and Comprehensive General Liability of $1,000,000 naming the City as additional insured. 2 CONFIDENTIALITY The Vendor agrees that it will at all times protect the City's information and not make it available to any other than the City, unless so directed by the City in writing. ADDITIONAL PROVISIONS 1. The Vendor agrees that it is an independent contractor and that its officers and employees do not become employees of the City, nor are they entitled to any benefits as City employees as a result of the execution of this bid. 2. No officer, member or employee of the City and no member of their governing bodies shall have any pecuniary interest, direct or indirect, in this bid or the proceeds thereof. 3. The City shall have the right to access Vendor's workpapers for the purpose of a review audit. 4. Both the City and the Vendor may terminate this contract at any time by giving a 120 -day written notice of such early termination; and the contract may be terminated at any time, without notice, upon a material breach of the terms of this agreement. 5. Contract period will be for three (3) years at the quoted rate commencing with the awarding of the bid. The contract may be renewed contingent upon satisfactory performance of the Vendor and mutual agreement of both the City and the Vendor. 6. The Vendor assures it will comply with Title VI of the Civil Rights Act of 1964 and that no person shall, on the grounds of race, creed, color, sex, or national origin be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination under this agreement. RESOLUTION NO. 95- 85 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ESTABLISHING ADDITIONAL PENALTIES ON DELINQUENT PARKING CITATIONS WHEREAS, Newport Beach Municipal Code establishes certain parking regulations; and WHEREAS, in 1993 the State of California adopted Assembly Bill 408 which decriminalized parking violations and required the City to assume processing, collection and adjudication responsibilities for parking violations; and WHEREAS, California Vehicle Code Section 40203.5 provides that the City may impose penalties, late fees, administrative fees and other charges related to the cost of collection of parking violations; and WHEREAS, the City desires to recover the costs associated with the use of a consultant to collect unpaid delinquent parking citations; and WHEREAS, the cost to the City for the collection of delinquent parking citations is thirty percent (30 %) of the amount owed by the violator; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach as follows: A penalty of thirty percent (30 %) shall be added to the total amounts owed by violators for unpaid parking citations referred to the City's delinquent parking citation collection consultant at the time the citation is referred to the City's consultant for collection. ADOPTED, this 10th day of July, 1995. ATTEST: J MAYOR