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HomeMy WebLinkAboutCity Council Agenda Item No.16CITY OF LADE LSIIYOI.E DREAM EXTREMEn REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FRO M: TOM EVANS INTERIM CITY MANAGER DATE: NOVEMBER 13, 2012 RE: EXTENSION OF PARKING ENFORCEMENT SERVICES AGREEMENT — DATA TICKET INC. Recommendation Authorize the City manager to execute the attached addendum to the services agreement with Data Ticket Inc. to provide services relating to the issuance (handheld units /software) and processing (notices and collections) of parking and administrative citations for a three (3) year term ending June 30, 2015 as allowed pursuant to LEMC 3.08.070(f). Background In 1996, the City of Lake Elsinore initiated a street sweeping and parking enforcement ordinance in an effort to raise the quality of life for its citizens and to significantly reduce the amount of trash and debris that was being carried down to the lake via the storm drain system. As part of this program, CR &R provides street sweeping services on a bi- weekly schedule in all residential areas throughout the City. All areas are set up to be swept the day after trash is picked up in an effort to help remove any excess trash, dirt and debris caused by the dumping of the trash containers. Automobiles parked at the curb are subject to citation. In April 2008, the City of Lake Elsinore entered into a contract with Data Ticket Inc. for the purpose of handling the administrative processing of parking and administrative citations and to provide equipment and software relating to the issuance of these citations. In researching companies that provide similar services, Data Ticket Inc. is the only company that offers programming and devices to electronically process both the administrative and parking citations. The original contract with Data Ticket Inc. was for one (1) year with extensions for two consecutive one -year renewals. The contract was extended for another one -year term but has now expired. AGENDA ITEM NO. 16 Page 1 of 49 Parking Enforcement Services Agreement November 13, 2012 Page 2 Discussion Data Ticket Inc. has provided excellent customer service to the City of Lake Elsinore and its citizens. As a result of their exceptional service, staff would like to extend Data Ticket Inc. contract services for an additional three (3) year period until 2015. The fees being charged will change from the original contract. For parking citation processing Data Ticket Inc. has lowered the per citation charge ($1.25 per cite down to $1.20 per cite) as well as the percentage for both out of state (30% of revenue collected down to 28% of revenue collected) and delinquent collections (32% of revenue collected down to 30% of revenue collected). Data Ticket has also lowered the SSN charge ($5.00 down to $3.00 per inquiry). For administrative citations Data Ticket Inc. has lowered the SSN charge ($5.00 down to $3.00 per inquiry) and eliminated the user access monthly fee ($150.00 month). Continuing the contract with Data Ticket Inc. ensures continuity of service to the citizens of Lake Elsinore at no additional cost or inconveniences. Switching companies would come at a significant cost to the City (new equipment, software and training time) and would greatly impact customer service during the transition period (6 -12 months). Staff believes that the current high level of service, reduced service charges under the new contract, and the cost of transition to another vendor justifies selecting Data Ticket Inc. without conducting an open bid process. Under the Municipal Code, Section 3.08.070(f), the City Council may elect to elect to forgo an open bid process for this type of service if the City Council determines it is in the best interest of the City. City staff believes that such a determination is justified here. Fiscal Impact None. Any fees charged to the City are taken from an escrow account on revenues collected from the citations issued. There may be a slight increase in revenue due to certain fees being reduced. Prepared by: Fred Lopez 4 Code Enforcement Supervisor Reviewed by: Warren Morelion, AICP \� Acting Director of Community Development Approved by: Tom Evans o . Interim City Manag Page 2 of 49 Parking Enforcement Services Agreement November 13, 2012 Page 3 Attachments: 1. Exhibit "A "- Addendum to Services Agreement 2. Exhibit "B" -Fee Schedule (Parking /Administrative) 3. Exhibit "C "- Existing Services Agreement Page 3 of 49 DATA 0 4600 Campus Drive, Suite 200 Newport Beach, CA 92660 TICKET 949 752 6937 (x) 310 ADDENDUM TO AGREEMENT DATED: April 4, 2008 This addendum to the agreement between the City of Lake Elsinore and Data Ticket, Inc. is to renew the terms of the existing contract and all Addenda. The term of this Agreement shall be extended from the date of this contract until June 30. 2015. Exhibit A attached, is the revised fee schedule for the processing and collection of administrative and parking citations representing adjustments made to accommodate new or enhanced services currently provided. The terms of this document shall not be disclosed by the Agency except as required by law, unless written agreement is given by Data Ticket, Inc. ACCEPTED: The City of Lake Elsinore Signature Print Name Title Date � � e19�r7_F�Ce7�xe7_TitlYil:�u1 City Attorney Data Ticket, Inc. Signature Print Name Title Date Page 4 of 49 DATAN TICKETinc 4600 Campus Drive, Suite 200 Newport Beach, CA 92660 888 - 752 -0512 www.DataTicket.com City of Lake Elsinore Parking Citation Processing Services Proposal Electronic Parking Citation Processing: Services for the above - mentioned items includes: $1.20 • Citation entry into Data Ticket's Citation Management System • Registered owner information for all citations issued on California license plates • Registered owner information for all citations issued on out of state license plates • Payment processing of checks, cash, money orders, and credit / debit cards • In- house, bi- lingual Customer Service staff • Call recording of all inbound and outbound customer service calls • Interactive Voice Response System available 24/7 • California DMV Holds and Release performed daily • Notices will be sent via 1S Class Mail • Notices will include a return envelope in which the responsible party may submit payment • If the USPS increases the postal rate, this fee will increase by the amount increased by the USPS Out -of -State Collections: 28% of revenue collected This fee will cover all expenses associated with obtaining out -of -state registered owner information and will be due when a citation is paid This fee is not combined with any other collections charge. For example if a citation is rolled to a delinquent status, only 28% of revenue collected will be charged Delinquent Collections: 30% of revenue collected • This fee will be assessed when a citation is ninety (90) days past the citation issue date, assuming a first notice has been sent to the registered owner and the citation is not on hold for any reason In addition to the Courtesy Notice, three additional notices will be sent to the registered owner Notices will be sent via 1s` Class Mail, and Data Ticket will be responsible for the cost incurred Franchise Tax Board Processing SSN Look -up $3.00 per SSN This fee will be assessed to lookup a social security number associated with particular registered owner and address. This charge is charged per unique SSN, not per citation Phone: 949 752 6937 Fax: 949 752 6033 4600 Campus Drive, Suite 200 Newport BeacWARF49 4600 Campus Drive, Suite 200 Newport Beach, CA 92660 888- 752 -0512 www.DataTicket.com City of Lake Elsinore Parking Citation Processing Services Proposal FTB Collections 15% of revenue collected • This fee is charged if a citation is paid at the Franchise Tax Board. This charge is not combined with any other charge. For example if a citation is rolled to delinquent status and paid at FTB, only the 15% of revenue collected will be charged. Third Party Collections Legal Action Not Required 30% of revenue collected • This fee is charged if a citation is paid at the Third Party Collections. This charge is not combined with any other charge. For example if a citation is rolled to delinquent status and paid at Third Party Collections, only the 30% of revenue collected will be charged • If legal action is required and approved by the City 40% of revenue collected Adjudication: (Optional) 1St Level Reviews Hold & Judgment $1.50 • Data Ticket will place each citation on a Review Hold, review the documentation provided by the Appellant and enter a judgment into the citation management system. 1S and 2n Level Disposition and Scheduling Letters $1.50 • Data Ticket will send a custom judgment letter to the Appellant via 1 Class Mail • Data Ticket will send a hearing schedule letter for all phone and in- person hearings • All letters will be available on the web for City personnel to view and /or re- print at anytime 2n Level Hearings $85.00 per hearing • Data Ticket's independent, certified, insured hearing officers will be provided to the City to perform in- person, phone, and written hearings • Each hearing request will be reviewed, heard or read, and all required research will be performed. The Hearing Officer will enter a judgment into the Citation Processing System for viewing by the City, citizen and Data Ticket • Data Ticket will work with the City to arrange for the use of a conference room at a City location or the City may elect to have citations heard at a centralized location within the County EXHIBIT A Joint Banking Account Services $50.00 per month Services for the above - mentioned item includes: • Daily deposits of funds to the City's escrow account Phone: 949 752 6937 4600 Campus Drive, Suite 0n 200 Fax: 949 752 6033 Newport Beac J A%2 �h-49 4600 Campus Drive, Suite 200 Newport Beach, CA 92660 888- 752 -0512 www.DataTicket.com City of Lake Elsinore Parking Citation Processing Services Proposal • Online, real -time reconciliation reports that tie directly to the bank statement • Processing of all credit card chargebacks and Insufficient Funds • Month -end reconciliation of all funds collected • Disbursement of County / State Surcharges at month -end • Payment of Data Ticket's invoice • Disbursement of the net remittance to the City Refunds and NSFs $5.00 per instance • Issuance of all refunds to citizen who are due a refund via 1 Class Mail • Processing, reopening, addition of all fees and penalties & re- noticing Conversion: $0.00 • Data Ticket will convert the citations currently with the City's existing vendor at no cost to the City • Citations that have not had a payment and do not have a registered owner will immediately be sent to the appropriate DMV so as to obtain a registered owner • Noticing and the processing of the citations will begin once a registered owner is retrieved as the City's current vendor is not performing this Online Access: $0.00 Services for the above - mentioned item includes: Access via the Internet for the City's citizens and visitors to perform the following functions: • View citation specific information • Pay via Visa, MasterCard, Discover, and American Express • Print a receipt for payment processed • Request an Administrative Review online • Ability to attach supporting documentation to an Administrative Review • Request a Hearing online • Ability to attach supporting documentation to a Hearing • Get general information regarding the citation and adjudication processes Access via the Internet for the City's personnel to perform the following functions: • View citation specific information • Process payments via cash, money order, or credit / debit cards • Process refunds issued by the City • Process insufficient funds checks • Reduce, dismiss, void, and place citations on hold • Manage the adjudication process, including the ability to enter judgments on citations Phone: 949 752 6937 4600 Campus Drive, Suite 200 Fax: 949 752 6033 Newport Beacl ) sj 9g? q 4600 Campus Drive, Suite 200 Newport Beach, CA 92660 888- 752 -0512 www.DataTicket.com City of Lake Elsinore Parking Citation Processing Services Proposal • Generate, view and print and save month -end and real -time reports • Add a citation specific note • Review citation specific notes entered by Data Ticket's customer service staff Fees Charged to the Patron: • Credit/Debit Card Transaction Fee charged to patron $3.50* • Credit/Debit Card Chargeback Fee charged to the patron $30.00 • Fee for Payment Plan Initiated by Patron $15.00 *Subject to adjustment by Credit Card Processing Company Postage increases to be charged as increased by the US Postal Service Phone: 949 752 6937 4600 Campus Drive, Suite 200 Fax: 949 752 6033 Newport BeaclPJCAV9V49 4600 Campus Drive, Suite 200 Newport Beach, CA 92660 949 752 6937 (x) 310 City of Lake Elsinore Administrative Citation Processing Proposal EXHIBIT A Manual Administrative Citation Processing: $19.00* Electronic Administrative Citation Processing: $17.00 ** Services for the above - mentioned items includes: • Citation entry into Data Ticket's Citation Management System • Keying of responsible party information into the Citation Management System • Payment processing of checks, cash, money orders, and credit / debit cards • In- house, bi- lingual Customer Service staff • Call recording of all inbound and outbound customer service calls • Interactive Voice Response System available 24/7 • Semi - custom 1St Notice of Delinquency to be sent to the responsible party • In addition to the 1 6t Notice of Delinquency, two additional notices will be sent to the responsible party, at a time frame to be defined by the City • Notices will include a return envelope in which the responsible party may submit payment • Notices will be sent via 1 St Class Mail, for which Data Ticket will be responsible • All adjudication services, including placing citations on a hearing hold, scheduling each hearing, and sending a scheduling letter to the Appellant • Custom judgment letter will be sent to the Appellant via Certified Mail • All letters will be available on the web for City personnel to view and /or re- print at anytime *Since the City opts to use both Parking and Administrative Citation processing services, the fee for manual administrative citation processing is $19.00 * *Electronic File Transmission Administrative Hearings $85.00 per hour • Data Ticket's independent, certified, insured hearing officers will be provided to the City to perform in- person, phone, and written hearings. • Each hearing request will be reviewed, heard or read, and all required research will be performed. The Hearing Officer will enter a judgment into the Citation Processing System for viewing by the City, citizen and Data Ticket. • Data Ticket will work with the City to arrange for the use of a conference room at a City location or the City may elect to have citations heard at a centralized location within the County Phone: 949 752 6937 4600 Campus Drive, Suite 200 Fax: 949 752 6033 Newport Beacq3%WV49 4600 Campus Drive, Suite 200 Newport Beach, CA 92660 949 752 6937 (x) 3 10 City of Lake Elsinore Administrative Citation Processing Proposal Franchise Tax Board Processing SSN Look -up $3.00 per SSN • This fee will be assessed to lookup a social security number associated with a particular responsible party and address. This charge is charged per unique SSN, not per citation FTB Collections 15% of revenue collected This fee is charged if a citation is paid at the Franchise Tax Board. This charge is not combined with any other charge. For example if a citation is rolled to delinquent status and paid at FTB, only the 15% of revenue collected will be charged. Third Party Collections Legal Action Not Required 30% of revenue collected • This fee is charged if a citation is paid at the Third Party Collections. This charge is not combined with any other charge. For example if a citation is rolled to delinquent status and paid at Third Party Collections, only the 30% of revenue collected will be charged • If legal action is required and approved by the City 40% of revenue collected Joint Banking Account Services $50.00 per month Services for the above - mentioned item includes: • Daily deposits of funds to the City's escrow account • Online, real -time reconciliation reports that tie directly to the bank statement • Processing of all credit card charge -backs and Insufficient Funds • Month -end reconciliation of all funds collected • Disbursement of County / State Surcharges at month -end • Payment of Data Ticket's invoice • Disbursement of the net remittance to the City Refunds and NSFs $5.00 per instance • Issuance of all refunds to citizen who are due a refund via 1 Class Mail • Processing, reopening, addition of all fees and penalties & re- noticing Conversion: $0.00 • Data Ticket will convert the citations currently with the City's existing vendor at no cost to the City • Citations that have not had a payment and do not have a registered owner will immediately be sent to the appropriate DMV so as to obtain a registered owner Phone: 949 752 6937 4600 Campus Drive, Suite 200 Fax: 949 752 6033 Newport Bea CAiwgnq DATA 0 TICKET""` 4600 Campus Drive, Suite 200 Newport Beach, CA 92660 949 752 6937 (x) 310 City of Lake Elsinore Administrative Citation Processing Proposal Noticing and the processing of the citations will begin once a registered owner is retrieved as the City's current vendor is not performing this Online Access: Services for the above- mentioned item includes: $0.00 Access via the Internet for the City's citizens and visitors to perform as many functions as the City desires. Other: • A convenience fee will be assessed to the citizen in the event they choose to pay online or via the IVR or phone • An administrative fee will be assessed to citizens who wish to participate in a payment plan will be available to citizens. This fee will cover the cost of the payment plan initiation, and the cost of a confirmation letter that is sent to the citizen confirming the details of the payment plan. FEES CHARGED TO THE PATRON Credit/Debit Card Transaction Fee charged to Patron $3.50 Credit/Debit Card Chargeback Fee charged to Patron $30.00 Fee for Payment Plan Initiated by Patron $15.00 Postage increases to be charged as increased by the US Postal Service Phone: 949 752 6937 4600 Campus Drive, Suite 20 Fax: 949 752 6033 Newport Bea age 1 126T049 4600 Campus Dr. O 1 DATATICKETNC. suite 200 N� REVENUEEXPERTS NC. Newport Beach CA 92660 ADDENDUM TO AGREEMENT DATED: APRIL 4, 2008 "A q ao Date 0 This Addendum to the Agreement between The City of Lake Elsinore (Agency) and Data Ticket, Inc. dba Revenue Experts (Company), is designed to enhance the City's ability to obtain delinquent revenue from its administrative and parking citations and other debts owed the Agency. 1. The Company is authorized to act as an agent for the Agency to collect Delinquent revenue from administrative and parking citations, and other items, as specified by the Agency, for the same period as specified in the Agreement, 2. The Agency will provide a mutually suitable arrangement for the collection of funds, and express authorization to do business on the Agency's behalf. 3. All forms, notices, postage and maintenance of files on collected information shall be provided by Company and available to the Agency to update its files. The Company shall provide the Agency with management reports and use its best efforts to obtain maximum results. 4. Fees for revenue collected by the collection agency shall be: 30% if no legal action is required and 40% if legal action is required. Payment shall be made within 30 days of the receipt of the invoice. 5. The Company shall not be responsible for the Agency's failure to provide correct or timely administrative citation information. 7. The operations of the Company shall not be disclosed by the City except as required by law, unless written agreement is given by the Company. Accepted: The City of Lake Elsinore k&- t- � � Signature Robin K. Chipman Code Enforcement Manager Print Name and Title 4, 2011 Accepted: Data Ticket, Inc. dba Re enue Experts Si re Pdnt Name and TWe Date Page 12 of 49 f CITY OF / LA�AKE L S I H OR DREAM EXTREME April 30, 2008 Data Ticket, Inc. dba Revenue Experts, Inc. Attn: President 4600 Campus Drive, Suite 200 Newport Beach, CA 92660 Subject: Agreement for Services Dear Sir, The City Council of the City of Lake Elsinore approved the agreement between the City of Lake Elsinore and Data Ticket, Inc. dba Revenue Experts, Inc. at their meeting on April 8, 2008. I have enclosed an original, fully executed Contract Agreement for your records. Should you have any questions, please call me at (951) 674- 3124, ext. 262. r , 'Y' L r Vivian M. Munson City Clerk enc. 951.674.3124 130 S. MAIN SIRII IAI(1: EISINCIN CA 92530 WWW.I_AKI =EISI om.ORO Page 13 of 49 AGREEMENT FOR SERVICES (Citation Administration) This Agreement for Services (the "Agreement ") is made and entered into as of the day of Apr i 1 2008, by and between the City of Lake Elsinore, a municipal corporation ( "City ") and Data Ticket, hic. dba Revenue Experts, Inc. ( "Consultant "). RECITALS A. Consultant is specially trained, experienced and competent to perform the special services which will be required by this Agreement. B. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement on the terms and conditions described herein. C. City desires to retain Consultant to render services and related work as set forth in this Agreement. AGREEMENT 1. Scope of Services Consultant shall perform the services described on Exhibit A which is attached hereto and incorporated herein by reference. Consultant shall provide said services at the time, place, and in the manner specified in Exhibit A (Parking Citations) and Exhibit B (Administrative Citations), subject to the direction of the City through its staff that it may provide from time to time. 2. Time of Performance The services of Consultant are to commence upon execution of this Agreement and shall continue for a period of one (1) year and may be extended for two consecutive one -year extensions upon the approval of the City Manager, subject to the review of the City Council. 3. Compensation Compensation to be paid to Consultant shall be in accordance with the Schedule of Charges set forth in Exhibit C and Exhibit D, which are attached hereto and incorporated herein by reference. Payment by City under this Agreement shall not be deemed a waiver of defects, even if such defects were known to the City at the time of payment. 4. Method of Payment Consultant shall submit monthly billings to City describing the work performed during the preceding month. Consultant's bills shall include a brief description of the services performed, the date the services were performed, the number of hours spent and by whom, and a description of any reimbursable expenditures. City shall pay Consultant no later than 30 days after approval of the monthly invoice by City staff. 5. Extra Work At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not Page 14 of 49 r perform, nor be compensated for, Extra Work without written authorization from City. Extra work will be invoiced separately from services performed in accordance with the Scope of Services 6. Termination This Agreement may be terminated by the City after ten (10) days for cause (if Consultant does not rectify the issue(s) or by either parry without cause upon ninety 90 days' written notice of termination. Upon termination, Consultant shall be entitled to compensation for services performed up to the effective date of termination. 7. Ownership of Documents All plans, studies, documents and other writings prepared by and for Consultant, its officers, employees and agents and subcontractors in the course of implementing this Agreement, except working notepad internal documents, shall become the property of the City upon payment to Consultant for such work, and the City shall have the sole right to use such materials in its discretion without further compensation to Consultant or to any other party. Consultant shall, at Consultant's expense, provide such reports, plans, studies, documents and other writings to City upon written request. City acknowledges that any use of such materials in a manner beyond the intended purpose as set forth herein shall be at the sole risk of the City. City further agrees to defend, indemnify and hold harmless Consultant, its officers, officials, agents, employees and volunteers from any claims, demands, actions, losses, damages, injuries, and liability, direct or indirect (including any and all costs and expenses in connection therein), arising out of the City's use of such materials in a manner beyond the intended purpose as set forth herein. a. Licensing of Intellectual Property This Agreement creates a nonexclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data "). Consultant shall require that all subcontractors agree in writing that City is granted a nonexclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. b. Confidentiality All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the services under this Agreement. Nor shall such materials be disclosed to any person or entity not connected with the performance of the services under this Agreement. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs relating to project for which Consultant's services are rendered, or any publicity pertaining to the Consultant's services under this Agreement in any magazine, trade paper, 2 Page 15 of 49 newspaper, television or radio production or other similar medium without the prior written consent of City. 8. Consultant's Books an Records a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant to this Agreement. b. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum period of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement. C. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to the City for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Consultant's address indicated for receipt of notices in this Agreement. d. Where City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant's business, City may, by written request by any of the above -named officers, require that custody of the records be given to the City and that the records and documents be maintained in City Hall. Access to such records and documents shall be granted to any party authorized by Consultant, Consultant's representatives, or Consultant's successor -in- interest. 9. Independent Contractor It is understood that Consultant, in the performance of the work and services agreed to be performed, shall act as and be an independent contractor and shall not act as an agent or employee of the City. Consultant shall obtain no rights to retirement benefits or other benefits which accrue to City's employees, and Consultant hereby expressly waives any claim it may have to any such rights. 10. Interests of Consultant Consultant (including principals, associates and professional employees) covenants and represents that it does not now have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source of income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant's services hereunder. Consultant further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement. Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant: 3 Page 16 of 49 � 3 } a. will conduct research and arrive at conclusions with respect to his/her rendition of information, advice, recommendation or counsel independent of the control and direction of the City or of any City official, other than normal agreement monitoring; and b. possesses no authority with respect to any City decision beyond rendition of information, advice, recommendation or counsel. (FPPC Reg. 18700(a)(2).) 11. Professional Ability of Consultant City has relied upon the professional training and ability of Consultant to perform the services hereunder as a material inducement to enter into this Agreement. Consultant shall therefore provide properly skilled professional and technical personnel to perform all services under this Agreement. All work performed by Consultant under this Agreement shall be in accordance with applicable legal requirements and shall meet the standard of quality ordinarily to be expected of competent professionals in Consultant's field of expertise. 12. Compliance with Laws Consultant shall use the standard of care in its profession to comply with all applicable federal, state and local laws, codes, ordinances and regulations. 13. Licenses Consultant represents and warrants to City that it has the licenses, permits, qualifications, insurance and approvals of whatsoever nature which are legally required of Consultant to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, insurance and approvals which are legally required of Consultant to practice its profession. 14. Indemnity Consultant agrees to defend, indemnify and hold harmless the City, its officers, officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damages, injuries, and liability, direct or indirect (including any and all costs and expenses in connection therein), arising out of the performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement, except for any such claim arising out of the sole negligence or willful misconduct of the City, its officers, agents, employees or volunteers. 15. Insurance Requirements a. Insurance Consultant, at Consultant's own cost and expense, shall procure and maintain, for the duration of the contract, the following insurance policies. i. Workers' Compensation Coverage Consultant shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his/her employees in accordance with the laws of the State of California. In addition, Consultant shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by the City at least thirty (30) days prior to such change. ii. General Liability Coverage Consultant shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per 0 Page 17 of 49 occurrence for bodily injury, personal injury and property damage. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. iii. Automobile Liability Coverage Consultant shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and non -owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence. iv. Professional Liability Coverage Consultant shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Consultant's operations under this Agreement, whether such operations by the Consultant or by its employees, subcontractors, or subconsultants. The amount of this insurance shall not be less than one million dollars ($1,000,000) on a claims -made annual aggregate basis, or a combined single limit per occurrence basis. b. Endorsements Each general liability and automobile liability insurance policy shall be with insurers possessing a Best =s rating of no less than ANII and shall be endorsed with the following specific language: i The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work or operations. ii. This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the City, including any self - insured retention the City may have, shall be considered excess insurance only and shall not contribute with it. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. iv. The insurer waives all rights of subrogation against the City, its elected or appointed officers, officials, employees or agents. V. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents, or volunteers. 5 Page 18 of 49 vi. The insurance provided by this Policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the City. C. Deductibles and Self - Insured Retentions Any deductibles or self - insured retentions must be declared to and approved by the City. d. Certificates of Insurance Consultant shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement. 16. Notices Any notice required to be given under this Agreement shall be in writing and either served personally or sent prepaid, first class mail. Any such notice shall be addressed to the other party at the address set forth below. Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section. If to City: City of Lake Elsinore Attn: City Manager 130 South Main Street Lake Elsinore, CA 92530 If to Consultant: Data Ticket, Inc. dba Revenue Experts, Inc. Attn: President 4600 Campus Drive - Suite 200 Newport Beach, CA 92660 17. Entire Agreement This Agreement constitutes the complete and exclusive statement of Agreement between the City and Consultant. All prior written and oral communications, including correspondence, drafts, memoranda, and representations, are superseded in total by this Agreement. 18. Amendments This Agreement may be modified or amended only by a written document executed by both Consultant and City and approved as to form by the City Attorney. 19. Assignment and Subcontracting The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Consultant and the subcontractors listed in Exhibit E. Consultant shall be fully responsible to City for all acts or omissions of any subcontractors. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the express consent of the City. Consultant shall not subcontract any portion of the work to be performed under this Agreement except as provided in Exhibit E without the written authorization of the City. If City consents to such subcontract, Consultant shall be fully responsible to City for all acts or omissions of those subcontractors. Nothing in this Agreement shall create any contractual relationship between City and any subcontractor nor shall it create any obligation on the part of the City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise is required by law. G9 Page 19 of 49 20. Waiver Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement. 21. Severability If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 22. Controlling Law Venue This Agreement and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this Agreement shall be held exclusively in a state court in the County of Riverside. 23. Litigation Expenses and Attorneys' Fees If either party to this Agreement commences any legal action against the other party arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable litigation expenses, including court costs, expert witness fees, discovery expenses, and attorneys' fees. 24. Mediation The parties agree to make a good faith attempt to resolve any disputes arising out of this Agreement through mediation prior to commencing litigation. The parties shall mutually agree upon the mediator and share the costs of mediation equally. If the parties are unable to agree upon a mediator, the dispute shall be submitted to JAMS /ENDISPUTE ( "JAMS ") or its successor in interest. JAMS shall provide the parties with the names of five qualified mediators. Each party shall have the option to strike two of the five mediators selected by JAMS and thereafter the mediator remaining shall hear the dispute. If the dispute remains unresolved after mediation, either party may commence litigation. 25. Execution This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least two copies hereof shall have been signed by both parties hereto with delivery of one fully executed copy to each party. 26. Authority to Enter Agreement Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party. 27. Prohibited Interests Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 28. Equal Opportunity Employment Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for 7 Page 20 of 49 1 employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non - discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted. IN WITNESS WHEREOF the parties have caused this Agreementto be executed on the date first written above. CITY OF LAKE ELSINORE: ArEj A' Es'r: ((V k City Clerk APPROVED AS TO FORM: Page 21 of 49 CONSULTANT: f Attachments: Exhibit A - Scope of Services — Parking Citations Exhibit B - Scope of Services — Administrative Citations Exhibit C - Fee Schedule — Parking Citations Exhibit D - Fee Schedule — Administrative Citations Exhibit E — List of Subcontractors Page 22 of 49 `i EXHIBIT "A" SCOPE OF SERVICES — PARKING CITATIONS Page 23 of 49 Scope of Service and Performance These services are provided by: Data Ticket Inc. dba Revenue Experts, Inc. a California Corporation 4600 Campus Drive, Suite 200 Newport Beach, California 92660 (hereinafter sometimes referred to as "COMPANY ") UK0 THE CITY OF LAKE ELSINORE 130 S. MAIN STREET LAKE ELSINORE, CALIFORNIA 92630 (hereinafter sometimes referred to as "PUBLIC ENTITY "). Data Ticket, Inc. intends to provide for the processing of bails, fines and forfeiture thereof, in connection with the issuance of administrative citations pursuant to PUBLIC ENTITY municipal code and for the issuance of citations for illegal parking pursuant to the laws of the State of California. 1.1 Referral and Reconciliation COMPANY shall receive and process citations from PUBLIC ENTITY. COMPANY will provide a reconciliation of the number of citations received from PUBLIC ENTITY. 1.2 Determination of Processable Citations COMPANY shall screen the parking citations referred to it by PUBLIC ENTITY to determine if the citation is processable. If the citation is determined by COMPANY to be unprocessable (e.g., essential processing information is missing), COMPANY shall return the citation to PUBLIC ENTITY for clarification. COMPANY will be paid the contractual rate hereinafter provided, for citations properly returned to the PUBLIC ENTITY as unprocessable. 1.3 Collection and deposit of funds A direct deposit system shall be employed for all funds received for payment of citations. The PUBLIC ENTITY shall have the choice of jointly owning a bank account with the COMPANY or directing the COMPANY to - 1 — Page 24 of 49 - 1 deposit into a PUBLIC ENTITY account. Deposits shall be made directly into the account by the COMPANY for the collecting PUBLIC ENTITY, with the exception of credit card payments made using VISA, MasterCard and Discover cards belonging to the COMPANY. These payments will be directly deposited into an account held by the COMPANY. Credit card payments are reconciled and remitted on a monthly basis to the PUBLIC ENTITY, but tracked on the citation management software on a daily basis. Citations paid by credit card are marked "paid" real -time immediately upon authorization, thus affording the citizen the opportunity to make payment at any time and have the payment recognized immediately. 1.4 PAYMENT- If the COMPANY deposits into an PUBLIC ENTITY account, the COMPANY will invoice the PUBLIC ENTITY for services rendered. Payment in full shall be due within thirty (30) days after which interest shall be accrued at the rate of 18% (or lower if any statutes, rules or regulations prohibit this rate). If the COMPANY deposits into an account held jointly between the PUBLIC ENTITY and the COMPANY, the COMPANY shall reconcile the account the month following the banking activity, disperse all revenue due the PUBLIC ENTITY, the COMPANY, any tax liability and all refunds and send all supporting documentation to the PUBLIC ENTITY for its records. 1.5 Identification of Registered V hi .l - Owners COMPANY shall exert best efforts to obtain the name and address of the registered vehicle owner from the California State Department of Motor Vehicles (DMV) and DMV'S nationwide, for each vehicle for which a parking citation has been issued. COMPANY shall follow all procedures specified by the DMV, and be consistent with the California Vehicle Code and DMV'S nationwide, when identifying registered vehicle owners. 1.6 Verification of Ownership COMPANY shall take reasonable measures to identify and verify registered vehicle owners. Such measures will take into consideration factors such as 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. 1.7 Delinquency Notices In accordance with State law COMPANY will generate and mail (presorted, first -class postage) no sooner than twenty -one (21) days of the citation issuance date, a delinquency notice to all identified registered owners of vehicles who fail to pay their parking citation fines or to post bail in the required manner. The mailed notice will include all information required by the California Vehicle Code, including, but not limited to, the following: A. The parking citation issuance date and number; B. The consequences of nonpayment (i.e., a hold on the vehicle registration and the imposition of penalties, towing, or issuance of a possible warrant for their arrest; and Page 25 of 49 C. The amount of fines and fees due and payable D. Affidavit of Non - Ownership 1.8 Registration Holds The COMPANY will provide the system and procedures and will interface with the California State Department of Motor Vehicles to place a hold on vehicle registrations having unpaid parking fines and fees due against those vehicles in accordance with the California Vehicle Code and any other applicable State and local laws. The notification will be given within a reasonable period of time after issuance of a delinquency notice. The period of time will not exceed the time limits provided by state and local law. 1.9 Removal of Registration Holds COMPANY will provide the system and procedures and will interface with the California State Department of Motor Vehicles to remove 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 COMPANY. 1.10 Contested Citations In the event a registered vehicle owner disputes the liability for the outstanding parking citation, COMPANY will advise the registered vehicle owner of his /her right to request an administrative review /hearing /court appearance. All contested citations will be forwarded to the hearing administrator or PUBLIC ENTITY within the prescribed time period so that the matter can be adjudicated. (CVC 40200.7 & 40215) 1.11 Administrative Review and Hearing The COMPANY will schedule administrative reviews and hearings to respond to parking violators wishing to contest their citations, and offers the option to perform and administer those reviews and hearings. The COMPANY will provide toll -free numbers for contestants to call, correspond with contestants and notify them of decisions; maintain records of dispositions and appeal paperwork and refer all paperwork to Court as required. The COMPANY shall not be responsible for the PUBLIC ENTITY'S failure to provide correct or timely infraction information. The PUBLIC ENTITY shall be responsible to pay the $25.00 court- filing fee, if the Review and Administrative Hearing decisions are overturned by the Court. 1.12 Citations Disposed of by Hearing/ •o urt The COMPANY 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. COMPANY shall be paid the contractual rate hereinafter provided for processing the citation regardless of the outcome of court action. COMPANY will maintain records indicating any reduction or cancellations of parking citations as a result of hearing /court action. Parking citations which are dismissed as a result of hearing /court action, will have the dismissal processed by the COMPANY -3— Page 26 of 49 promptly after receipt from the Hearing /Court. 1.13 Suspension of Processing COMPANY will suspend processing on any citation referred to it for processing upon written notice to do so by an authorized officer of the PUBLIC ENTITY. COMPANY will promptly return any citation or facsimile properly requested by the PUBLIC ENTITY. COMPANY will maintain records indicating any suspension of citation as a result of PUBLIC ENTITY'S request. COMPANY shall be paid the contractual rate hereinafter provided for processing the citations suspended by the PUBLIC ENTITY. 1.14 Payments by U.S. Mail It is the citizen's responsibility to ensure that payments are received on or before the date due. The date received by the COMPANY will be the criteria to establish any delinquent fees due. 1.15 Parking Citation System Master File Update COMPANY will regularly update the parking citation master file for new citations, payments, reductions, cancellations, dismissals and any other pertinent data. 2.1 Disposition Processing COMPANY will maintain all citation dispositions for a minimum of two (2) years. Closed citations will remain on -line for at least two (2) years, for research and statistical purposes. 2.2 Payments Pro . sing COMPANY shall process citation payments on a regular basis. Payments shall be immediately posted in one (1) of three (3) following categories: "Regular Payments" are citations with the correct bail, paid on or before the due date. (This includes payments properly complying with Notices -of- Intent). "Partial Payments" are citations paid after the due date, or if the defendant has paid less than the amount of bail due. A Notice -of- Intent, or a postcard will advise defendant of late charges and /or incorrect bail. In such cases, COMPANY, in its discretion, may return the original check to the sender, if the check has insufficient information for deposit. "Appeal Requests" are all requests for administrative /court hearings by defendants. These requests are sorted so that bail submitted is immediately posted, and if needed the original citations are retrieved. 2.3 Miscellaneous Letters Processing COMPANY will receive and review all -4— Page 27 of 49 miscellaneous correspondence. These are generally letters requesting meter checks, refunds, voids, or otherwise setting forth complaints. These letters will be researched by COMPANY for proper follow -up with the PUBLIC ENTITY. 2.4 Batching Procedures COMPANY shall maintain effective procedures of internal control. Such procedures shall involve reconciliation of all payments received using generally accepted accounting principles. After proper reconciliation, deposit slips shall be prepared for and deposits made at the appropriate bank, including an itemized listing of all batch numbers included in the deposit. The batch of citation payment documentation shall then be stored in a file room, for a period of two (2) years. 2.5 Cash Payments COMPANY shall maintain an effective method of handling cash payments. All cash received through the mail, shall be logged in a cash journal. Thereafter, effective internal control procedures shall be implemented to reconcile such payments using generally accepted accounting principles. 2.6 Deposits All deposits shall be made daily, subject to regular banking hours. Deposits shall be itemized and detailed information will be captured regarding submitted funds. Deposit slips shall be prepared in duplicate, allowing one (1) copy for the bank and one (1) copy for the COMPANY. If the bank account is held jointly, COMPANY shall perform all reconciliation, refunds and cut all checks. This information shall be available for PUBLIC ENTITY review. Deposits shall be directly deposited into the PUBLIC ENTITY'S designated bank account, either jointly held with the COMPANY or individually held by the PUBLIC ENTITY. If the PUBLIC ENTITY holds the account individually, it will supply deposit slips and an endorsement stamp to COMPANY. In this case, COMPANY shall only have the capability to make deposits on behalf of the PUBLIC ENTITY. 2.7 RevenueBspad: A monthly revenue report will list all revenues received during the preceding month. This report will also provide information regarding the PUBLIC ENTITY'S responsibility to the County for the Jail and Court fund as required by Sections 40200.3 (a) of the California Vehicle Code. 3.1 Citation Management Web Site The COMPANY offers a web site for PUBLIC ENTITY review of its database, including all citations and information relating to changes in status. 3.2 Citi7pn Web Site Acces When the PUBLIC ENTITY has web site access, citizens who receive citations will be able to access the web site to review their individual citations, pay on -line and appeal on -line. -5— Page 28 of 49 i 3.3 Web Site Interaction The web site may be "view only" or "interactive ", for the PUBLIC ENTITY depending on requirements of the PUBLIC ENTITY. 3.4 Web Site Raports Web site reports are available to the PUBLIC ENTITY on a daily, (24/7) schedule. 3.5 Web Site Cost User ID's and passwords will be assigned to the PUBLIC ENTITY at no cost. ARTICLE IV - GENERAL 4.1 Public Ing iii r.es The COMPANY will respond to reasonable inquiry by telephone or letter of a non - judicial nature. Inquiries of a judicial nature will be referred to the PUBLIC ENTITY for determination. 4.2 COMPANY Limitations COMPANY will not take legal action or threaten legal action in any specific case without PUBLIC ENTITY'S prior approval. 4.3 Use of Approved Forms PUBLIC ENTITY shall have the right to reasonable approval of all forms, delinquency notices, and correspondence sent by the COMPANY. These must conform to State and local law. 4.4 Books and Records COMPANY will maintain adequate books or records for parking citations issued within the PUBLIC ENTITY'S jurisdiction and referred to COMPANY for processing. Such books or records, and related computer processing data, shall be available for reasonable inspection and audit by PUBLIC ENTITY at the COMPANY'S location at reasonable times upon adequate prior notice to COMPANY. 4.5 Ownership All reports, information, and data, including but not limited to computer tapes, discs, or files furnished or prepared by the COMPANY or its subcontractor (collectively the "Materials ") are and shall remain exclusively the sole property of COMPANY, and the PUBLIC ENTITY shall acquire no right or title to said Materials. All computer software and systems, related automated and manual procedures, instructions, computer programs, and data storage media containing same, and written procedures performed hereunder (collectively the "System ") are and shall remain exclusively the sole property of COMPANY, and the PUBLIC ENTITY shall acquire no right or title to said Systems. 4.6 Pro ep U of P B IC ENTITY All documents, records, discs, files and tapes supplied by PUBLIC ENTITY to COMPANY in performance of this contract are agreed to be and shall remain the sole property of PUBLIC ENTITY. COMPANY agrees to Page 29 of 49 return same promptly to PUBLIC ENTITY no later than sixty (60) days following notice to the COMPANY. The PUBLIC ENTITY shall make arrangements with COMPANY for the transmission of such data to the PUBLIC ENTITY upon payment to COMPANY of any open invoices and the cost of copy and delivery of such information from COMPANY'S computer facilities to PUBLIC ENTITY'S designated point of delivery. 4.7 Confirlpnfial In order to enable COMPANY to carry out its work hereunder, to some extent it will have to impart to the PUBLIC ENTITY'S employees information contained in the Materials and Systems (collectively the "CONFIDENTIAL DATA "). The PUBLIC ENTITY agrees that information contained in the data that was marked in writing as "CONFIDENTIAL ", "PROPRIETARY" or similarly, so as to give notice of its confidential nature, when submitted to the PUBLIC ENTITY by COMPANY shall be retained by PUBLIC ENTITY in the strictest confidence and shall not be used or disclosed in any form except in accordance with paragraph 4.8 herein below. The PUBLIC ENTITY recognizes that irreparable harm could be occasioned to COMPANY by disclosure of CONFIDENTIAL DATA, which is related to its business, and that COMPANY may accordingly seek to protect such CONFIDENTIAL DATA by enjoining disclosure. 4.8 Consent For Disclosure No report, information, data, files, or tapes furnished or prepared by COMPANY or its subcontractors, successors, officers, employees, servants, or agents shall be made available to any individual or organization without the prior written approval of PUBLIC ENTITY other than individuals or organization who are reasonably necessary to properly effectuate the terms and conditions of this agreement. This Non - Disclosure obligation shall survive the Termination of this Agreement. 4.9 COMPANY Files COMPANY shall maintain master files on parking citations referred to it for processing under this Agreement. Such files will contain records of payments, dispositions, and any other pertinent information required to provide a reasonable audit trail. 4.10 Storage for PUBLIC ENTITY: A. COMPANY agrees to store original citations for the current year, plus two (2) years, at which time they will be returned or to PUBLIC ENTITY or shredded. COMPANY will have such information available on the citation management system for a reasonable time period to permit PUBLIC ENTITY retrieval of such information. PUBLIC ENTITY relieves COMPANY of all liability costs associated with data released by PUBLIC ENTITY to any other person or entity using such data. B. Subsequent to the termination of the contract, COMPANY will return a -7— Page 30 of 49 j file containing all data belonging to the PUBLIC ENTITY. 5.1 CVC 40215 Services provided include accepting, scheduling, reviewing and hearing first and second level appeals; interfacing and providing backup for Court appearances and notifying PUBLIC ENTITY contestants by phone and in writing of decisions. The PUBLIC ENTITY shall be responsible to pay the $25.00 court- filing fee if the review and hearing decisions are overturned by the Court. 5.2 Other Collections COMPANY shall retain a percent of payments for delinquent citations that have been processed in accordance with the current Agreement, and meet the following criteria: A. Delinquent citations: those citations so designated by the PUBLIC ENTITY, for which the California State Department of Motor Vehicles registration hold has been placed or dropped because of a transfer of ownership or non - renewal of registration or a registration hold has not been placed, but the normal daily processing cycle is complete. B. Citations with out -of -state license plates. C. Any other problem or special citations that the PUBLIC ENTITY so designates and refers to COMPANY under this Agreement. 5.3 Postal Rate Increase The COMPANY will maintain auditable records to document the COMPANY'S actual postage costs associated with the mailing of delinquency notices for unpaid citations and for other mailings related to the processing of correspondence. If there is a postal increase, that increase will be invoiced effective on the date that the postal rate increase goes into effect. 6.1 Per'odic Reports COMPANY will submit reports to PUBLIC ENTITY the month following the month in which activity has been reported. The reports will track activities relating to performance under this Agreement. Among the reports which COMPANY may /will generate are the following: A. Report of Revenue Collected for Period B. Report for Parking Citations Issued for Period C. A balanced summary report for issuing PUBLIC ENTITY providing the status of all parking citations at the beginning of the period, current period activity, and at the end of the period. D. A report for issuing PUBLIC ENTITY identifying registered vehicle owners with five (5) or more outstanding parking citations. E. A report for issuing PUBLIC ENTITY identifying the parking citations M Page 31 of 49 issued, location, violation by each officer. 6.2 Annual Reports Annually, COMPANY shall comply with CVC 40200.3 (b) 7.1 Term and Renewals This Agreement shall be for an initial period offive(, commencing as of the last date of signature. Unless notice of termination is made in writing by either party to the other no less than sixty (60) days prior to the end of the scheduled term. This Agreement shall. automatically renew for °subsequent otte (1) year periods'' In conjunction with this automatic extension of the terms of this Agreement, COMPANY may give notice of reasonable price adjustments for its processing services. The PUBLIC ENTITY has thirty days to respond in writing to the purposed increase. Unless PUBLIC ENTITY gives notice in writing of its rejection of these price adjustments, the term shall be extended with these price adjustments as stated. If the PUBLIC ENTITY gives notice of its rejection of these price adjustments, unless there is a further written Agreement between the parties, the term of the Agreement shall not be extended and the Agreement shall terminate. 72 •an ..11ation Upon a material breach or upon ninety (90) days written notice to COMPANY, the PUBLIC ENTITY may cancel or terminate this Agreement. The COMPANY shall have thirty (30) days to cure any material breach or defect set forth in the written termination notice provided by PUBLIC ENTITY. 7.3 Exclusivity: PUBLIC ENTITY agrees to utilize only the services of COMPANY during the term of this Agreement for the processing of the citations referred to above. PUBLIC ENTITY agrees during the term of the Agreement to not directly or indirectly assist a competitor of COMPANY in the performance of the services provided by COMPANY under this Agreement. 7.4 Cost: Please see Cost Proposal, Exhibit A for all associated costs. 8.1 PUBLIC NTITY Cooperation In the event any claim or action is brought against COMPANY relating to COMPANY'S performance or services rendered under this Agreement, COMPANY shall notify the PUBLIC ENTITY, in writing, within five (5) days, of said claim or action. 8.2 Hold Harmless COMPANY AND PUBLIC ENTITY agree to the following hold harmless clauses. Page 32 of 49 A. COMPANY agrees to indemnify, defend, and hold harmless the PUBLIC ENTITY and its officers and employees against all claims, demands, damages, costs, and liabilities arising out of, or in connection with, the performance by COMPANY or PUBLIC ENTITY or any of their officers, employees, or agents under this AGREEMENT, excepting only loss, injury, or damage caused solely by the negligent acts or omissions of PUBLIC ENTITY or any of its officers or employees. B. PUBLIC ENTITY agrees to indemnify, defend, and hold harmless the COMPANY and its officers and employees against all claims, demands, damages, costs, and liabilities for loss, injury, or damage caused solely by the negligent acts or omissions of PUBLIC ENTITY or any of its officers or employees arising out of, or in connection with, the performance by PUBLIC ENTITY or any of its officers or employees under this AGREEMENT. ARTICLE IX - SUBCONTRACTORS AND ASSIGNMENTS 9.1 Suhcontractina COMPANY is authorized to engage subcontracts, as permitted by law at COMPANY'S own expense, subcontracts shall be deemed agents of COMPANY. 9.2 Assignments This contract may not be assigned without the prior written consent of the PUBLIC ENTITY. It is understood and acknowledged by the parties that the COMPANY is uniquely qualified to perform the services in this agreement. ARTICLE X - INDEPENDENT COMPANY 10.1 COMPANY'S Relationship COMPANY'S relationship to PUBLIC ENTITY in the performance of this Agreement is that of an independent COMPANY. Personnel performing services under this Agreement shall at all times be under COMPANY'S exclusive direction and control and shall be employees of COMPANY and not employees of the PUBLIC ENTITY. COMPANY 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 COMPANY nor any officer, agent, or employee of COMPANY shall obtain any right to retirement benefits or other benefits which accrue to employees of PUBLIC ENTITY, and COMPANY hereby expressly waives any claim it might have to such rights. ARTICLE XI - INSURANCE 11.1 Insurarim Provisions COMPANY shall provide and maintain at its own expense during the term of this Agreement, the following policy or policies of insurance covering its operations hereunder. Such insurance shall be provided by insurer(s) satisfactory to -10— Page 33 of 49 5 the PUBLIC ENTITY and certificates of such insurance shall be delivered to the PUBLIC ENTITY on or before the effective date of this Agreement. Such certificates shall specifically identify this Agreement and shall not be canceled, reduced in coverage or limits or non - renewed except after thirty (30) days written notice has been given to the PUBLIC ENTITY. A) Comprehensive general liability insurance covering bodily and personal injury and property damage. Limits shall be in an amount of not less than one million ($1,000,000) dollars per occurrence. Such insurance policies shall name the PUBLIC ENTITY, its officers, agents and employees, individually and collectively, as additionally insured. Such coverage for additional insured shall apply as primary insurance and any other insurance or self - insured retention maintained by the PUBLIC ENTITY its officers, agents and employees shall be excess only and not contributing with insurance provided under said policy. B) Comprehensive automobile liability owned, non -owned and hired vehicles with not less than one million ($1,000,000) dollars combined single limit, per occurrence for property damage and for bodily injury or death of persons. Such insurance shall include the same additional insured and cancellation notice provisions as specified above and may be combined with the comprehensive general liability coverage required above. C) Throughout the period of Agreement, COMPANY, at its sole cost, shall maintain in full force and affect a policy of workers' compensation insurance covering all of its employees as required by the labor code of the State of California. Sie Page 34 of 49 EXHIBIT "B" SCOPE OF SERVICES — ADMINISTRATIVE CITATIONS Page 35 of 49 Exhitit B(Administrative Citations) DESCRIPTION ADMINISTRATIVE CITATION PROCESSING AND COLLECTIONS Services required for the processing, collection and appeal of Administrative Citations for you and your affiliated departments are described below. The benefits of using the administrative citation management system are: • Toll free phone inquiries provided for citizens • Web Site access for citation look -up provided for both citizen and Agency • Credit cards payments accepted on -line • System marked real -time • Payment accepted by check, money order, or credit card • Data entry and citation tracking is handled • Reports are available 24/7 on the Web Site for the Agency • Handheld ticket writers are available • Multiple notices sent • Delinquent fees collected • Monthly reports provide payment reconciliation • Monthly reports on citation status • Appeals handled professionally and impartially • Trained and certified hearing officers provided • Documentation is prepared and stored in case of court appeals • Social Security numbers are accessed for Interagency Intercept Program participation • Interagency Intercept Program collections are offered • System marked and documented as payments collected through FTB The process is as follows: • The Agency provides warning(s) to citizen regarding violation(s) and a time frame established for compliance. • The Agency revisits site for compliance, if no compliance the citation is written. The citation specifies the violation(s) and informs the violator of the time frame from the date of the citation to pay the violation(s) and /or correct it/them. CONFIDENTIAL INFORMATION Page 36 of 49 • A copy of the citation is sent to The Company for collection on a daily /weekly basis within 7 days of issuance. • Citations received from the Agency are keyed or entered electronically into The Company citation management database. • The Violator has (per agency) days to pay or contest (appeal) the citation from the date of issue. • If paid, payment will be entered on the Company system and deposited in Agency's bank account. • Upon receipt of the citation for process, if no payment is made within the specified time (by Agency), the Company will mail a first notice of delinquency for payment. • After (per Agency) days from the date of the first notice, if the citation remains unpaid, the Company will mail a second and final notice of delinquency for the total amount due (including any added penalties). • After (per Agency) days from the date of the second and final notice, if the citation is unpaid, the Company will mail an FTB notice demanding payment. This notice will indicate the future actions that will be taken to collect the fine including submitting the violator's name to the Franchise Tax Board for collection through the Interagency Intercept Program, and that additional processing costs may be added to the fine. • After 30 calendar days from the date of the FTB notice, if the fine is still unpaid, the Company will place the citation on the Interagency Intercept Program list for submission at the appropriate time. • The Company will then access social security numbers to attach to citations that are eligible for the program. • All citations attached to the same social security number will be grouped together for submission, with a total amount due showing. • Citations will be placed in the Program during the Company's normal file transfer to the Franchise Tax Board. • When the Company places a citation with the Interagency Intercept Program the amount of the fines plus any additional charges will be included on the total amount due by the violator and may be paid in full or in part depending on the amounts available for dispersal. CONFIDENTIAL INFORMATION Page 37 of 49 Hearing Requests • If violator wishes to contest the administrative citation, a toll free number will have been provided on the citation and upon calling the number the violator will be instructed to put their appeal in writing on a form supplied by The Company (or Agency) and post the entire amount of the bail. • If an appeal is not directed to the Company but received by the Agency, the Agency will forward the appeal to the Company. A review will be scheduled and conducted and the decision will be sent to the citizen. • When the appeal and bail are received within the time frame allowed, the violator will be scheduled for a hearing. This information will be transmitted to the Agency via fax and email. The violator will be notified that the appeal has been approved to go forward and will be notified of the time, date and place of the hearing. • If the appeal is not received within the allowable time frame allowed and /or if the entire bail is not posted both the Agency and the violator will be notified that the appeal request has been denied. • All supporting documentation will be requested by The Company from the Agency (including officer's notes and pictures) for the actual hearing. Following the hearing, the citizen will receive written confirmation of the decision of the Hearing Officer sent by certified mail with 10 days of the conclusion of the hearing. The Agency will be notified of the same via fax. • If the citation is upheld, the information will include further instructions to the violator, including the time frame for a court appeal if the violator desires to continue to contest. • If the citation is dismissed, the Agency and the violator will be notified and a refund will be generated for the posted bail. • If there is no further appeal within the time frame allowed, the Agency will be notified of the outcome and the case closed. • If the violator appeals to the court he is subject to pay the $25.00 court- filing fee. • The Company will notify the Agency and all supporting information for the case will be forwarded to the Agency for the court appearance. CONFIDENTIAL INFORMATION Page 38 of 49 1 i • The court decision will be copied to The Company and any refund or correspondence required will be handled. If the court dismisses the citation, the Agency will be responsible for refunding the $25.00 court- filing fee. The system will be updated with the appropriate information and the case closed. • If there is no response to the notice of delinquency from the violator, the Agency will be notified for a decision on further action. Options include closing the citation unpaid, the Agency filing in small claims court against the violator or notification of the Interagency Intercept Program to attach any state tax returns or lottery winnings that would be paid to the citizen during the year. The Hearing Officer will be an impartial official with previous experience in holding hearings and training on Municipal Code Enforcement and who has been trained according the requirements for administrative hearings as mandated by the California legislature and has additional training from the adjudication manual. The Hearing Officer will not be compensated on a commission basis and there will be no connection between decisions and compensation for the job. Hearing Officers will be subject to review by the Agency at the Agency's expense. The only responsibilities to be borne by the Agency are the provision of space for the in- person hearings to be held on a bi- monthly basis, the referral of the original citations and any requested supporting documentation for hearings, and the occasional appearance at a court hearing. The Company will provide forms, notices, correspondence, scheduling, documentation, database updates, tracking, reporting, banking, a toll -free number for violator questions, web site access, the Hearing Officer and all software and hardware required to handle the job efficiently and effectively. We are confident that the Agency will enjoy the benefits of this unique service. CONFIDENTIAL INFORMATION Page 39 of 49 l EXHIBIT "C" \S C FEE SCHEDULE — PARKING CITATIONS Page 40 of 49 EXHIBIT C (Parking Citations) COST PROPOSAL FOR THE CITY OF LAKE ELSINORE Description Proposed Fee Fee for processing and collecting each citation: $ 1.25 per cite Fee for collecting each out -of -state citation: 30% of collected revenue A monthly minimum fee of $150.00 will be assessed if the fees for each month fall below that amount. Specified services and material covered by the fee for both in -state and out -of -state citations include: Data entry & updating of all handwritten citations & electronic entry & updating of all handheld citations Collecting, processing & applying all payments Processing all status changes to citation database Two user ID's & passwords for Client Access to Web Site Viewing and printing of citation management reports and citations at the City 24/7. City will always have access to its citation database including all status updates real -time. Additional user passwords can be issued for a small additional fee. Company credit card payments accepted via phone or paper Company credit card payments accepted on -line, real -time via Ticket Wizard 5000 web site 24/7 citizen access to City database to view, appeal and pay citations On -Line connection to California DMV for daily registered owner information files On -Line connection to California DMV for daily hold and release files On -Line connection to Florida, Ohio, Texas, Washington, Oregon, New York and Maryland DMV's for registered owner information Interface with other DMV's nationwide for registered owner information via diskette, CD & tape, etc. Interface with third party vendor for nationwide registered owner information All forms, postage and tracking Correspondence tracking and response Bi- lingual 800 line voice mail information 24 hours per day, 7 days per week Bi- lingual 800 line customer service answered by customer service representatives Daily bank deposits Bank reconciliation Complete audit trail Comprehensive monthly management reports on citation issuance and revenue available on -line as well as in hard copy with month -end invoice All required insurance California Corporate Headquarters Confidential Information Page 41 of 49 Scheduling: Review, Hearing and Court Appearances $ 0.75 per citation Hearings: All Hearing Appointments, two per hour $75.00 per hour scheduled. (Minimum four hours per visit for in- person hearings. Visits are scheduled in accordance with City requirements at a designated City location, but no less than every 90 days, according to CA law). Additional Correspondence Refunds handled by Company Fee for Delinquent Collection Notices — (Old Citations that have gone through the normal collection cycle including DMV hold, or are 6 months or older and remain uncollected) OPTIONAL SERVICES: For each group of six additional user ID's & passwords For real -time viewing & reporting on City database FTB Tax Lien Participation: Matching social security number to debts Collections, file adjustment& reconciliation reports $ 1.50 per piece $5.00 per refund 32% of collected revenue $50.00 per group $ 5.00 per SS request 15% of collections City will pay all bank charges and court filing fees for citation appeals. Convenience Fee to Violator for Company Credit Card Usage is $3.50 per use on Web Site, phone & paper credit card payments. Fee to be paid to Company. Postage increases to be charged as increased by the US Postal Service. Confidential Information Page 42 of 49 f EXHIBIT "D" PEE SCHEDULE — ADMINISTRATIVE CITATIONS Page 43 of 49 t EXHIBIT D (Administrative Citations) FEE PROPOSAL THE CITY OF LAKE ELSINORE Description — Phase I Proposed Fee Fee for processing and collecting each citation $ 19.00 /cite Specified services and material covered by the Fee for all citations shall include: Data entry of handwritten citations and entry of electronically transferred citations Processing and collection of all payments • Disposition and status updating All forms and tracking Correspondence tracking and response • Up to four Notices • 800 line voice mail information 24 hours per day, 7 days per week 800 line customer service answered by customer service representative Daily Bank Deposits • Bank reconciliation Comprehensive monthly management reports on issuance and revenue All required insurance • Local corporate headquarters * (Minimum monthly fee $ 150.00 per month) Applies if basic charges are less than that amount. Additional Client Real Time Viewing & Reporting on Client $ 50.00 /month Database Includes: • Client access to entire database real -time includes up to six user passwords • Viewing and printing citation management reports 2417 • Citizen web site access for viewing and paying citations 24/7 CONFIDENTIAL INFORMATION Page 44 of'49 z Description - Phase II Social Security Number Access $ (One request for multiple citations attached to one violator) Franchise Tax Board Interface (Interagency Intercept Program) Includes: • Database transfers • Multiple debts consolidated to one record with total due • Files sent to IIP • Noticing • Daily deposits • Payment reconciliation • Deposit reconciliation • Toll -free customer service inquiry lines • Web site inquiry and payment access 24/7 • Overpayment verification and refund service • Customer correspondence as required • Forms • Paperwork back -up • Database updating • IIP updating • Monthly management reports 5.00 /request 15% of collected revenue Fee to Violator for Company Credit Card Usage $ 3.50 /use Option: In- person Hearing and Toll -Free Hearing Appointments $ 75.00 /hr (four -hour minimum every 60 to 90 days, two hearings per hour) All correspondence and taped hearings included; interface with court and client, if hearing goes to court. Cost to Purchase Hand Held Ticket Writers: Please see Cost Sheets for Ticket Writers, upon selection of preferred unit, a total cost proposal will be generated for Agency including exact costs for all hardware, software, ticket stock, envelopes and additional items. CONFIDENTIAL INFORMATION Page 45 of 49 i EXHIBIT "E" LIST OF SUBCONTRACTORS Page 46 of 49 EXHIBIT "E" LIST OF SUBCONTRACTORS 1. Independent Hearing Officers Page 47 of 49 i Heather Nowrlan From: Bill Fleming Sent: Wednesday, January 13, 2010 8:34 AM To: 'Rchipman (rchipman @lake - elsinore.org) Cc: Programming; Accounting; Heather Nowlan Subject: Processing Pricing . 11001117 IT, f J It was good speaking with you earlier this week and I hope your week is going well. As we discussed, as a thank you and in consideration of our positive ongoing relationship with The City of Lake Elsinore we are changing the per citation processing fee for your administrative citations that are transmitted to us electronically from the hand held ticket writers from $19.00 /citation to $15.00 /citation. This pricing change will be effective starting in February for citations received in January. Administrative citations received in paper form will still be processed at $19.00 /citation. We hope this a benefit to The City and we look forward to a long and mutually satisfactory relationship in the years to come. Please call if you have any questions and have a great day, Bill Page 48 of 49 1/13/2010 Page 49 of 49