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