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HomeMy WebLinkAboutStaff Report 2506-4781CITY OF PALO ALTO CITY COUNCIL Monday, June 16, 2025 Council Chambers & Hybrid 5:30 PM     Agenda Item     17.Approval of Contract Amendment No. 4 to Contract Number C19171363 with Professional Account Management LLC, dba Duncan Solutions, to Extend the Contract for one year to June 30, 2026, and to Adjust Billing Rates, Without an Increase to Compensation, for a Not -to-Exceed Amount of $767,000 for Parking Permitting and Citation Management Services; CEQA Status -- Not a Project. Updated Consent Questions City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Transportation Meeting Date: June 16, 2025 Report #:2506-4781 TITLE Approval of Contract Amendment No. 4 to Contract Number C19171363 with Professional Account Management LLC, dba Duncan Solutions, to Extend the Contract for one year to June 30, 2026, and to Adjust Billing Rates, Without an Increase to Compensation, for a Not -to- Exceed Amount of $767,000 for Parking Permitting and Citation Management Services; CEQA Status -- Not a Project. RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager or designee to execute Contract Amendment No.4 to Contract No. C19171363 with Professional Account Management LLC, dba Duncan Solutions, to extend the contract term for an additional year through June 30, 2026 and adjust billing rates, without an increase to Compensation. Not To Exceed (NTE) amount of $767,000. EXECUTIVE SUMMARY This action is part of a phased process to potentially transition to a new permit management and citations service provider over the course of the next fiscal year, to streamline the management of the City parking programs. The Office of Transportation (OOT), in coordination with the Administrative Service Department, the City Clerk’s Office, and the Police Department (PAPD), have selected a new parking permit and citation management service provider. That contract approval is currently scheduled to come to Council for approval in August 2025. The new service provider will begin to support the administration of parking permit programs, first in the commercial districts (California Avenue and University Avenue, and then the remaining programs), and to facilitate parking citation processing and collection. The attached amendment with Duncan Solutions extends their term for the current contract to support OOT administration of several Residential Preferential Parking programs while the new service provider takes on program support and administration over the course of the new fiscal year. BACKGROUND 1 2 3 1 City Council, June 24, 2019, Agenda Items #5, SR #10241 https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=2713&compileOutputType= 1 2 City Council, February 22, 2021, Agenda Item #9, SR#11492 https://www.cityofpaloalto.org/files/assets/public/v/2/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id-11492.pdf 3 City Council, April 1, 2024, Agenda Item #6, SR#2402-2689 The attached Amendment #4 with Duncan Solutions extends their term to support OOT administration of several Residential Preferential Parking programs while the new selected service provider takes on program support and administration over the course of the new fiscal year, streamlining management of services in a phased approach, and maintaining continuity of service for residents. Not approving the extensions would jeopardize the City’s ability to enforce its parking polices and issue parking citations. ANALYSIS FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: AMENDMENT NO. 4 TO CONTRACT NO. C19171363A BETWEEN THE CITY OF PALO ALTO AND PROFESSIONAL ACCOUNT MANAGEMENT, LLC This Amendment No. 4 (this “Amendment”) to Contract No. C19171363 (the “Contract” as defined below) is entered into as of April 21, 2025, 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 663 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 (as defined below) 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 extend the term for one year from June 30, 2025, through June 30, 2026, and to adjust billing rates, without an increase to compensation, as detailed in Exhibit C-1. . 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. C19171363 between CONSULTANT and CITY, dated May 20, 2019, as amended by: Amendment No.1, dated September 9, 2020 Amendment No.2, dated March 6, 2024 Amendment No.3, dated October 17, 2024 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 June 30, 2026, unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 3. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “C-1” entitled “SCHEDULE OF RATES”, AMENDED, REPLACES PREVIOUS. Docusign Envelope ID: DEA12295-583B-4B60-AAD8-20F6593CAC82 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: DEA12295-583B-4B60-AAD8-20F6593CAC82 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: Attachments: EXHIBIT C-1 – “SCHEDULE OF RATES, AMENDMENT NO. 4”, AMENDED, REPLACES PREVIOUS. Docusign Envelope ID: DEA12295-583B-4B60-AAD8-20F6593CAC82 President / CEO James Kennedy EXHIBIT C-1 SCHEDULE OF RATES, AMENDMENT NO. 4 (AMENDED, REPLACES PREVIOUS) CONSULTANT shall be paid per unit for processing services for the comprehensive permit and citation managements system. Table 1 below includes the payment rates per unit for the program including pre- defined pricing for implementation and management of the program. The compensation table shall remain fixed for term of the Agreement. Table Set 1 Compensation Terms Per-permit fee $1.00 $10,500.00 Per-renewal letter fee (sent by mail) $0.65 $3,412.50 Per-renewal letter fee (sent by email) $0.00 $0.00 Per-software license fee $0.00 $0.00 Per-permit convenience fee (for web/IVR purchases) $1.00 charged to customer Permits Solution subtotal $2.65 Estimated cost per month Optional service Per-permit fulfillment fee** $4.00 $42,000.00 Permit Solutions subtotal + Optional service subtotal Estimated cost per month *Estimate based on assumption of 10,500 permits issued and 50% of renewal letters are sent by mail. Actual expense may be more or less than this estimate, depending on the actual number of permits issued. **If requested by City, Consultant shall provide this service which includes Consultant: (1) scanning and indexing all paper applications, (2) reviewing and approving scanned applications based on City rules, and (3) reviewing and approving online applications based on City rules. Citation Management System Pricing Seven (7) handheld enforcement devices Item Per Unit Est. Annual Expense * Docusign Envelope ID: DEA12295-583B-4B60-AAD8-20F6593CAC82 $71,801.45 $5,983.45 * Estimate based on assumption of 10,800 citations issued. Other estimates in this column are based on other assumptions, some of which may be noted. Docusign Envelope ID: DEA12295-583B-4B60-AAD8-20F6593CAC82 Vers.: Aug. 5, 2019 Page 6 of 8 Compensation Schedule (Estimated) Table 2 below includes the estimated annual payment compensation schedule for the program, based on assumed numbers of permits and citations issued, equipment utilized, and other services provided. These are estimates only. Table 2 Compensation Schedule Est. Monthly (round ed to nearest t Docusign Envelope ID: DEA12295-583B-4B60-AAD8-20F6593CAC82 Vers.: Aug. 5, 2019 Page 7 of 8 Permit Management System Pricing fee (for web/IVR Optional Service Citation Management System Pricing – Seven (7) handheld enforcement devices state lookups Docusign Envelope ID: DEA12295-583B-4B60-AAD8-20F6593CAC82 Vers.: Aug. 5, 2019 Page 8 of 8 Handheld lease (per month) $66.95 (was $65.00) $5,623.80 (was $5,460.00) Data plan ($60/month) $61.80 (was $60.00) $5,191.20 (was $5,040.00) Citation Solution subtotal $73,955.70 (was $71,801.45) Estimated cost per month $6,162.98 (was $5,983.45) Table 2: Compensation Schedule (Estimated) Est. Monthly 2019 2020 2021 2022 2023 Permit Management (was $5,000) $46,350 (was $61,800 (was $61,800 $61,800 $61,800 Management (was $6,000) $55,620 (was $54,000) $74,160 (was $72,000) $74,160 $74,160 $74,160 Estimates (was $11,000) $101,970 (was $135,960 (was $135,960 $135,960 $135,960 Estimates (was (was (was (was (was Docusign Envelope ID: DEA12295-583B-4B60-AAD8-20F6593CAC82 Dear Mayor and Council Members, On behalf of City Manager Ed Shikada, please see staff responses below for questions from Mayor Lauing and Council Member Lu on the June 16, 2025 and June 17, 2025 City Council Meeting. Monday June 16, 2025 Council Meeting Item 9. Approval of a Surveillance Use Policy for Security Cameras at Ada's Café at Mitchell Park Community Center and Library; CEQA Status - Not a Project 1.Have we considered expanding this policy to any private entity that leases city space? Or creating a director's approval process that allows this? Staff response: Surveillance use policies are required in situations enumerated by PAMC section 2.30.630. This includes approval of a use policy when approving "agreements with a non-City entity to acquire, share, or otherwise use surveillance technology or the information it provides." See PAMC 2.30.630(d). Once approved, the City is required to produce an annual report analyzing the use of each Council - approved technology, including its cost, any complaints received, and the number and nature of Public Record Act requests received. See PAMC 2.30.680(a). If the City wanted to consider allowing staff-level approvals of some or all surveillance use policies, the City Council could adopt an ordinance amending the Surveillance and Privacy Protection Ordinance at PAMC section 2.30.620 et seq. to allow that. Staff is considering expanding this policy to the Palo Alto History Museum at the Roth Building, as cameras were installed during renovation of the building. A director approval process is not in place, but will be considered. Item 12. Approval of a Director’s Interpretation Pursuant to PAMC Section 18.01.025 Concluding That Noncomplying Residential Gross Floor Area may not be Relocated Within a Structure; Denial of the Associated Appeal; Direction to Prepare a Future Code Amendment for Administrative De Minimis Exceptions to the Zoning Code; CEQA: Exempt Pursuant to CEQA Guidelines Section 15061(b)(3) 1.A Councilmember questioned why a formal text amendment was not being initiated now to address the minor adjustments recommended by staff in the council report. This approach could avoid setting an unclear precedent and ultimately resolve the applicant’s is sue. The Councilmember suggests rescheduling the item once the staff recommended amendment is ready. JUNE 17, 2025JUNE 16, 2025 Staff Response: Preparing the amendment is not currently part of the department’s workplan. If Council authorizes and prioritizes it, the ordinance could affect the timeline of other Council-directed efforts. While staff supports moving forward, the intent was to schedule it in a way that minimizes disrupting existing priorities, specifically related to bird safe glass and stream corridor protections. It typically takes 4–6 months to prepare an ordinance, which requires Planning & Transportation Commission and Council review. Alternatively, the appellant could submit their own text amendment application. This would not draw on policy planning resources but would require fees and still be resourced after processing housing development projects, though potentially faster overall. Regardless of the amendment, the decision to pull the item should focus on whether the interpretation was properly issued. If councilmembers believe it was not, the item should be removed from consent and set for hearing, anticipated for mid-August or early September; removing the item from consent would also delay any Council direction on a text amendment. If councilmembers find that the Director’s interpretation is correct, staff recommend approving the item on consent, which would also provide direction now regarding the text amendment. Item 17. Approval of Contract Amendment No. 4 to Contract Number C19171363 with Professional Account Management LLC, dba Duncan Solutions, to Extend the Contract for one year to June 30, 2026, and to Adjust Billing Rates, Without an Increase to Compensation, for a Not –to Exceed Amount of $767,000 for Parking Permitting and Citation Management Services; CEQA Status -- Not a Project. 1.Are there any more resources about how Duncan currently operates? Are there any areas or practices they use to prioritize where to look? (I understand they use automated license plate readers) Staff response: Duncan provides permit and citation management services, providing a website and personal staffing to permit purchases, primarily for RPP programs (all six) and to the California Ave. business district employee program. They also provide Citation processing services. Parking enforcement is provided by a different contractor. 2.Are there any metrics about traffic citations by year for the last 10 years? Staff response: Given Duncan’s limited role in RPP permit and parking citation processing, this information is not readily available for parking and traffic citations overall. Staff will review available information and transmit to the City Council at a later date. Tuesday, June 17, 2025 Council Meeting Item 14: Approval of Professional Services Contract No. C26193874 with Palo Alto Community Child Care in an Amount Not-to-Exceed $3,228,146 to Provide Management of the City’s Childcare Subsidy Program for a Term of Five Years. CEQA Status – Not A Project 1.To be clear, this is only for the administration of the subsidy, and there is no actual subsidy or childcare included in this funding, right? Staff response: The Fiscal Year funding allocated for this contract totals $606,793.73. Of this amount, approximately 10% ($58,565) supports the administration of the City’s Child Care Subsidy Program, while the remaining 90% ($538,138) is directed toward providing childcare subsidies for low -income families. This funding supports access to childcare services for up to 45 children annually.