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Home My WebLink AboutStaff Report 14337 City of Palo Alto (ID # 14337) City Council Staff Report Meeting Date: 5/23/2022 Report Type: Consent Calendar City of Palo Alto Page 1 Title: Approval of Amendment Number 2 to Contract Number C17164727 with Professional Account Management, LLC. for Parking Citation Processing and Collections to Extend the Term and Increase the Amount by $70,000, for a new Not-To -Exceed Total of $720,000 From: City Manager Lead Department: Police Recommendation Staff recommends that Council approve and authorize the City Manager or their designee to execute Contract Amendment No. 2 (Attachment A) with Professional Account Management LLC for an extended term of one year (April 30, 2022 to April 30, 2023), and increase compensation by $70,000 for a total not-to-exceed amount of $720,000 over six years. Background Management for public parking is been performed by both Office of Transportation (OOT) and Police, depending on scope of enforcement. Currently Police is managing timed enforcement in the commercial cores, utilizing Community Services Officers (CSOs). OOT manages all other aspects of public parking including parking garages and Resident Parking Programs (RPP) with enforcement utilizing contractors. Aspects of managing the timed parking program by the Police Department include enforcement of timed parking regulations, enforcement of other vehicle related requirements such as license plate placement or disability identification (placards), and in rare cases, enforcing no-parking tow-away zones. The Police Department staff provide the enforcement while engaging a contractor to provide “back-office” services such as maintaining database records of violations, vehicle owners, payment transactions, or a record of contesting, along with collection of overdue payments. More recently, service providers were only considered if they could provide a portal to make citation payments on-line, supplementing mail-in to a vendor serviced lockbox and in-person option at Revenue Collections. The Palo Alto Police Department initiated the current contract, C17164727, December 5, 2016 with a five-year term at a total cost of $650,000 (Staff Report #7179). The current vendor, Professional Account Management LLC, was selected after conducting a formal request for proposal seeking professional services for parking citation processing and collections for timed City of Palo Alto Page 2 parking enforcement by the Police Department CSOs. At the end of the original term, Amendment No. 1 was executed to extend the term of the contract for an additional 6 months. There was no change to the established not-to-exceed limit of $650,000 and no change for billing rates by vendor; this was authorized by the Chief Procurement Officer in accordance with the City municipal code. No increase in contract amount nor funding was required as enforcement services were suspended for a period during shelter-in-place beginning March 2020. Discussion An extension for services is recommended with Professional Account Management LLC, through May 30, 2023, at the same terms as previously agreed to in 2016 with an updated not-to- exceed limit of $720,000. Services to be provided include: 1. Accepting citations from City-owned parking enforcement hardware and software 2. Recording citation data in a vendor-maintained database 3. Receiving payments for citations online or by mail to lockbox 4. Collecting unpaid parking citations The extension is recommended to ensure services are maintained while allowing for city staff to coordinate the management of public parking among stakeholders adapting to the evolving environment during this transition period. In January 2022, significant changes to parking permit program fees both in the downtown cores and the RPP programs were implemented. In March and April, many companies implemented hybrid work schedules. Staff is monitoring how changes such as these are impacting parking demand and the programmatic changes necessary to ensure sustainability of parking programs in the future. As such, staff recommends maintaining services until 2023 to focus on this effort in the near term. After this extension, staff expect to re-evaluate the market space for these services. If not approved, the parking enforcement in timed zones enforced by City employees will need to be suspended without the infrastructure to process and collect the parking citations in place. Resource Impact Timed parking enforcement is a net-zero cost to the city in that the revenue received from enforcement offsets the cost of enforcement (staff, supplies and equipment, and overhead). Approximately 97% of the revenue and expense is recognized in the General Fund; the remainder is accounted for in the Parking Fund (overseen by OOT) as a small percentage of the Police parking operations supports RPP. While the cost of the contracted back-end services referred to above is expected not to exceed $130,000 annually, the annual expense during shelter-in-place and the gradual re-opening was much less as the costs are tied to volume of activity. Not all of the anticipated expense were realized over the initial five-year term. Funds needed for Amendment No. 2 are available in FY 2022 Adopted Operating Budget and are City of Palo Alto Page 3 accounted for in the FY 2023 Proposed Operating Budget through the duration of the extension. No further funding is requested at this time. Stakeholder Engagement Office of Transportation was consulted as it oversees some aspects of parking management in conjunction with the Police Department. Environmental Review The recommendation in this report does not constitute a project requiring review under the California Environmental Quality Act (CEQA). Attachments: • Attachment A: Professional Account Management, LLC.; Contract, C17164727, Amendment #2 Vers.: Aug. 5, 2019 Page 1 of 3 AMENDMENT NO. TWO TO CONTRACT NO. C17164727 BETWEEN THE CITY OF PALO ALTO AND PROFESSIONAL ACCOUNT MANAGEMENT, LLC This Amendment No. Two (this “Amendment”) to Contract No. C17164727 (the “Contract”) entered into as of April 29, 2022 by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and PROFESSIONAL ACCOUNT MANAGEMENT, LLC, a Wisconsin limited liability company, located at 633 W. Wisconsin Avenue, Suite 1600, Milwaukee, WI 53203 ("CONSULTANT").CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract was entered into by and between the Parties hereto for the provision of parking citation processing and collection services, as detailed therein. B. The Parties now wish to amend the Contract in order to increase compensation by Seventy Thousand Dollars ($70,000) from Six Hundred Fifty Thousand Dollars ($650,000) to a new total not-to-exceed amount of Seven Hundred Twenty Thousand Dollars ($720,000) with no increased in rates; to extend the term for one additional year, from April 30, 2022 through April 29, 2023. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term “Contract” shall mean Contract No. C17164727 between CONSULTANT and CITY, dated December 5, 2016. b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 2, TERM, of the Contract is hereby amended to read as follows: “The term of this Agreement shall be from the date of its full execution through April 29, 2023, unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 3. Section 4 “COMPENSATION FOR ORIGINAL TERM” of the Contract is hereby amended to read as follows: “The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, for a total not to DocuSign Envelope ID: 6036C3E8-3A03-4E6A-BAB8-6EC18F12F111 Vers.: Aug. 5, 2019 Page 2 of 3 exceed amount of Seven Hundred Twenty Thousand Dollars ($720,000). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount with no changes to Exhibit C-1, Schedule of Rates.” SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) DocuSign Envelope ID: 6036C3E8-3A03-4E6A-BAB8-6EC18F12F111 Vers.: Aug. 5, 2019 Page 3 of 3 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO _____________________________ City Manager: APPROVED AS TO FORM: _____________________________ City Attorney or designee PROFESSIONAL ACCOUNT MANAGEMENT, LLC. By:______________________________ Name:___________________________ Title:____________________________ DocuSign Envelope ID: 6036C3E8-3A03-4E6A-BAB8-6EC18F12F111 Tim Wendler President and CEO