Loading...
HomeMy WebLinkAbout0419.000, ~ .. Auqust 9, 1990 i'HE HONORABLE CITY COUNCIL Palo Alto, California Parking Citattoo Processing Agreement Members ot the Council: o ThiS report reCODDllends Cou·ncil approval of a two-year contract with West computil Corporation to process parking citations for a 24- month period beginning september 1, 1990, for a total not to exceed $174,C>OO «first year of t·he contract not to e::li:cee<:l $90.,SO'0; contingent upon Council approval, second year not to exceed $83,5-000).. Approval is also requested for a BUdget .Amendment Ordinance in the amount or $11,300 to cover the one-time contract transition costs. Backarou.nd For the last ten years, the City bas utilized various contractors to process parking citations after the County divested itself of the responsibilit.y. ApprOllimatel.y 6·C,C-CO parking citations are issued each year 'With associated revenues exceeding $650,0'0'0.. The contractor handles all aspects of processing including collectinq fine.s. sending delinquent notices, placing Department of Hotor­ Vehicles registration holds, setting cou~ dates and tracking of habitual offenders. The City has contracted with Lockheed Ir,forllation Management Services COmpany {previously known as Datacom Systems .corporation). for the last two years. The contract has been a one-year agreement renewable annually by mutual consent. Loclcheed notified staff that the pr-ocessinq costs per citation would increase from $1. 37 to $1~89, or 21.6 percent for the t.hird year.. Because of this substantial increase, staff initiated a request for proposal process to ensure that the services would be provided at a competitive price. Selection of Vendor Is. request for proposal 1ias SE:nt to three finns: Lockheed Information Management services Company. West computil corporation and Enforcement Technology Incorporated~ Responses were received froD eaCh of theD and interviews were conducted vith all three by a selection comaittee. Members of the committee included the FInance Director: a Police Captain: the Treasury Manager: a Police sergeant: a Police Lieutenant; and the Reven,l.le CollectiOfls Supervisor. • \ \ , \ . " \ \ -\.., , ~ I [ ",-" , .r ,... r··- .. I ~/- c- Q o Based on the information Obtained in the interviews~ staff narrowed the vendor selection to Lockheed aM West Computil~ Staft compared the services and the related oosts of both companies~ staff was already familiar vith the services provided by Lockheed. Extensive research was conducted into the operations and management of west Computil. Staff requested and rec~ived copies of West computil's written cash handling procedures, and also visited their San Jose oftice to Observe those procedures in operation, as Yell as visited their Huntington Beach office and observed citation processing proced.ures~ staff also cbecked 'With the 12 other agencies in Santa Clara and Alameda counties presently using West Computil. As a result of this eValuation process, staff learned that west Computil enjoys a excellent re.PfJtation with these agencies due to their efficiency, dependability and professionalism. Staff ~luded that West computil would provide the same level of service at a cost of approximately $24 ... 50'0 less than Lockbeed for the first year of the agreement and $30,300 less for the second year.. Therefore, West Computil vas selected based upon cost considerations, experience, financial strength and stability ... quality_control procedures and the services provided. Cant ra-et. Te rlIlS The cost of this contract Yill not exceed $90,500 for the first year.. This aJIlQ\lnt includes approximately $10,000 (a one-time expenditure) for neW vendor transition costs associated with the transfer of outstanding citations and fines yet uncollected by Lockhe~. First year proceSSing costs ~ill be $1.28 per citation issued using autocite units and $1~40 for citations issued Ilanually .. Council vlll recall that autocite units are computerized instruments purchased by the Police Department to issue parking citations in order to assist in the detection of habitual offenders ~ Staff estimates that approximately 50 # 0<1'0 autoci te citations will be issued during fiscal-y~ar 1990-91 and the remaining 10,000 citations vill be issued manually. Contingent upon Council approval of funds, second year costs viII increase to $1.33 per citation issued using autocite and $1.46 per citation issued manually. This aqreement includes a clause which allows for renewal of the contract in 12-month increments for a total period not to exceed four years. Third and fourth year costs would increase according to the San Francisco Bay Area consumer price index. Funds in the amount of $79,2GO for the first year of this agreement were approved in the Pol ice Department's 19"9 a -91 budget. A Budget Amendment Ordinance in the amount of $11#300 is requested to cover the additional contract costs for the first year. Funds for the second year were included in the Police Department·s 1991-92 budget. C~.R: 4J g: a 8-9-90 -2- . -e- -\ • \ , , \ -, .. ~.: :-.'.' -",~ 'J":.' . -.' ~ I 'I _,:c, ;' -:~-:~'ls:. __ __ --'-' _~_,_ '"""'~~""~"""~"""'»~"Jb£' __ '_I __ ''''_","~, / - o o PolIce and Finance Department staff 1IIi11 contin.ue to monitor the contractual obliga'tions at. a level comlllensurate with .e)(isting staff resources. R§C9l1Q!!endations Staff recommends that council: 1. Approve and authorize the Mayor to el!:ecute the attached aqreement in t.he aJllount not t.o e:.:cee-d $114.,000 (first year $90,SOO and second $83,50~) with West Computil corporation to provide processi.ng for par'king: citations for a 2t("month period b~inning September 1, 19"90: and 2. Approve the attached Budget AlDendment ordinance in the amount of $11/3~ to cover the increased costs associated with the agreement tor fiscal year 1990-91~ EM HARRISON Finance Director Att:achlDents CIIR:419:0 :-,-. -.'--'<"'-~,--. er 8-9-90 -3- • \ ":,-, , - ! f I f i ! ';-~".,~ : ~ "-~. , 1 1 1 -I I -- til • o •• , . / o o . ORDINANCE NO. ORDINANCE OF THE COUNCIL OF' THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR. 1990-91 TO PROVIDE AN ADOITIONAL APPROPRIATION FOR THE PAP~ING CITATION CONTRACT IN THE TRAFFIC ENFOR1:EKENT PROGRA,. OF THE POLICE DEPARTMENT WHEREAS~ pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto~ the Council on June 18, 1990 did adopt a budget for fiscal year 1990-91; and WHEREAS, approximately 60,000 parking citations are issued in the City of Palo Alto each'year and the City utilizes a contractor to process the citations; and 'JIj""1iEREAS, the city vas notified of a 'Li.6 percent increase in the 1990-91 contract price from the 1989-90 contractor, Lockheed Information Management Services Company; and WHEREAS. the Police proposal. and from the contractor. West Computil Department competitive Corporation, processing; and initiated a request for bidding, selected a new to provide parking citation WHEREAS, the West' Computil bid is fou~teen percent higher than the Police Department's budget for the parking citation contract due to one-time transition costs associated with the transfer of citations and fines outstanding from the previous contractori NOW, THEREFORE, the council of the City of Palo Alto does ORDAIN as follows: SECTIon 1. The sum of Eleven Thousand Three Hundred Dollars ($11,30'O} is bereby appropriated to Contract Services in the Traffic Enforcement Program of the Pol ice Department and. the Reserve for Capital Projects is correspondingly decreased. . SECTION" 2. The appropriation from the Reserve for Capital Projects will reduce the Reserve from $3,746,B63 to $3,735,5,63 as of Kay 31. 1990. §.EC'I'J.oN l. The COUncil of the city of Palo Alto bereby finds that the enactment of this ordinance is not a project under the california Environmental Quality Act and, therefore, no environmen­ tal iIlpact assessment is necessary. SECT,lQ1L..i • Municipal Code .. adoption. As provided in Secti~n 2.04.375 of the Palo Alto this ordinance shall become effective upon • • \ ., \ \ , \ ' ........ I ........ " , . .. f .. " ~,. , i , I , I I - -- o INTRODUCED }~D PASSED: AYES: NOES: ABSTENTIONS, ABSENT: ATTEST: City Clerk APPROVED AS ro FORK: Asst. City Attorney APPROVED, Chief of Police. ::-~I __ --.~-, --'--',',., .,-' .' '. '. - o APPROVED: Mayor 90-1.1 • '" ' "~ ",¥ : i l -; /" o o A G R E E ~ B X 7 BETWEEN THE CITY O~ PALO ALTO AND WEST-OOKPUTZL CORPORATION FOR PROCESSING or PARKING CITATIONS THIS AGREEMENT, made and entered into this September, 1990, by and bet~een the CITY OF PALO ALTO, co~ration of california, he~einafter referred to as WEST-COMPUTIL CORPORATION, a California corporation, 1870-0 Beach Boulevard, Suite 110, Huntington Beach .. hereinafter referred to as -VENDOR-; 9 I ~ • E SSE T H: 1st day of a munIcipal ·CITY,· and located at CA 92648, WHEREAS, CITY desires to retain services for the processing of citations, including fines, bails and forfeitures thereof, for illegal parking in CITY pursuant to the la~s of the State of California and to the ordinances of the County of Santa Clara and of <:ITY, including but not limited to performance by VENDO~ of all duties and responsibilities of a wprocessing agency· as that te~ is defined and used in the California Vehicle Code; and WHEREAS, CITY desires to engage VENDOR to provide these services by reason of its qualifications and experience for perforIlling such services... and VENOOR has offered to provide the required services on the terms and in the manner set forth herein: NOW, THEREFORE, in consideration of tbeir mutual covenants, the parties hereto agree as follows: 1~ PROJECT COORDINATION~ 1~1 City_~ The City Manager shall be representative of CITY for all purposes under this Agreement. The captain of Field services Division of the Palo Alto Police Department hereby is designated as the :PROJECT MANAGER for the City Manager-and he/she shall supervise the progress and execution of this Agree­ :ment~ 1~2 Vendor. VENDOR shall assign a si~le PROJECT DIRECTOR to have overall responsibility for the progress and execution of this Agreement for VENDOR.. The local Director of Operations is hereby designated as the PROJECT DIRECTOR for VENOOR. Should circumstances or conditions SUbsequent to the execution of the Agree~ent require a substitute PROJECT DIRECTOR for any reason, VENDOR shall notify CITY in writing vithin ten 110) business days~ 1 \ -~""-------" --------'---~, ........ , .. • • . - .- I .. r-- . ' .- I '··',:,"r l .' " . ".'.,:,::;'1 .. " .... ,". . .... ~ . :::-~_~ -;."_' __ "~;::t':: ,'t~_.i=)!IIi:;:;..2w ___ ~ ___ . ] i I I 1 o o 2. DUTIES OF \'ENDUR. 2.1 Services to be Furnished. VENOOR sha.ll provide all of the services and shall have all the duties and responsibili­ ties set forth in Exhibit -A-to this ~greement entitled ·Scope of Sc-.n-ices· ~ ..... hich is attached hereto and incorporC!ted herein by this re.!erence. '2~2 La"lllS to he Observe_q __ ~ VENOOR sha1.1: (ll Keep itself fully informed of all existing and ~utcre federal, state, and local laws, ordinances, regulations, orders" and decrees -which m.ay affect those engaged or employed under this Agreement... or 'Which may affect, in any way, the performance of services under this Agreement, or ..,bieh govern the coOO'uct of business., including but not 1 imited to laws pertaining to licenses .. taxes, corporate regulation, and collect.ion practices; {2) Observe and comply with .. and cause all of its subcontractors and employees.,. if any, to observe and comply with., all. of said laW's.. ordinances, regulations ... orders, and decrees mentioned above; (3} Immediately report to the PROJECl' MANAGER in vriting any 4iscrepancy or inconsistency it discovers in said laws, ordinances .. regulations, orders.,. and decrees mentioned abOve in relation to the provisions of this Agreement. 2.1 VENDOR Li.mit_~_tion$ __ ~ VENOOR shall not do any of the following without CITY'S prior approval ... in writing: {I) Take any legal action. (2) Threaten any legal action; or (J} Make any co~unication .. oral or vritten, regarding potential legal action. 3.1 Manual Cjtation Iss~ From September 1.,. 1990 through August 31, 1991 CITY shall pay VENDOR the rate of $1.40 for each parking citation issued manually th.at VENOOR processes and enters into VENDOR'S automated system regardless of the ultimate disposition or processability of such citation. F~om September I, 1991 through August 31, 1992 CIT¥ shall pay VENDOR the rate of $1.46 for each parking citation issued manually that VENDOR processes and enters into the VENDOR'S automated system regardless of the ultimate disposition or processability of such citation. This rate shall compensate VENDOR for all of the services specified in this Agreement ... unless specifically stated otherwise belo"'. This processing rate shall include all federal, state, and local 2 , f ~ , t I , I r f~ r' • . . c~.;_ '. \ \ \. \. \ \.. ~. \" , . --.- - .' o sales, use, excise, transportation, privilege, occupati~nali and other taxes applicablE: to any service, materials or equipment VENOOR .fUrnishes under this Agreement. VENDOR agrees to indemnify and save CITY harmless from and against any liability for any such taxes or payroll premiums and contributions • .J .. 2 Automated --":::1 t?#tion Issuance.. From September 1,. 19510 through August 31,. 19'91, CITY shall pay \i'ENOOR the rate of $L 28 per citation that is processed by an automated citation writing device. From September 1, 1991 through August 31. 1992, CITY shall pay VENDOR the rate of $1 .. 3.1 per citation that is processed by an automated citation writing device. 3.3. .gel __ :inquency Notices. CITY shall pay VENDOR the rate of $l.~O for each set of delinquency notices maileo to second reported owners and/or lessees of c1 ted vehicles under section 2.9 of Exhibit ·A·~ Increases tor established u.s~ Postal Service rate inc~eases during the term cf this Agreement will be allowed on the per ci taticn cost rates for such delinquency not.ices. :3.4 Special Collection SeryJ_~~n"'--VENDOR shall be reimbursed for the special collection process oLltlined under Section 2.11 of Exhibit -A-at a rate of thirty-two percent (32\) of any amounts actually collected by VENDOR. 3.S ItgnQklog Fee Payment:. A conversion fee of thirt.y-five cents ($.J.5) ·per citation ... ill be allowed for any .citations over thirty (30) eays in age vhich are converted from CITY's current vendor 1 s data base to VENDOR's data base under this Agreement. CITY reserves the right to select the criteria "for which citations are converted into VENDOR'S new data base. Pa}~ent for such conver$ion sball be billed to CIlr y in monthly increments over the term of this Agreewent as the backlog conversion services are performed. :3.6 Monthly Compensation. VENDOR shall monthly submit to CITY itemized invoic~s for the services rendered during the previous month in accordance with this section 3. VENDOR's costs shall be identified with sufficient detail to provide verification of invoiced a_mounts. Said invoices shal 1 als.o include " copy of the monthly Revenue Disposition Report as provided under Section 3.2 of Exhibit -A-. Payment to VENDOR by CITY will be made -within thirty (30) days of receipt of said invoicesa VENDOR shall maintain books and records supporting all reimbursable costs for services provided hereunder. CITY shall have access (within normal business hours) to such books and to all other records of VENDOR as required to verity any and all reimburs­ able costs invoi"-~. Notwithstanding the foregoing, in no event shall total payment under this Agreement exceed Ninety 'l'housand Five 3 L • \ .' \ - \ \ . -':'" .\~ , , ~.,. '. .-, . - • / U_J!t&fO'!ltt4i#si±_.l~L;~"~~~·~:-'-~~~_~~"~~?:~~~,~-~~~2 ... *2/·:; .• ~~ ·~,~x~ o Hundred Dollars ($90,500 .. 0.0) from September 1.. 1990 through August 31.... 1991 and Eighty Three Th-ousand Five Hundred Dollars ($81.500.0~) troD September 1, 1991 through August 31, 1992 .. Should additional services in excess of such amounts in either year become necessary, the Project Manager agrees to request additional funding authority for such services from the City Council in its discretion. 3~ 7 No Additional Char-gesn ,". No charge by VENOOR will ~ allowed for extras or for transportation, storage .... drayage, insurance, boxing, pacJdnq, crating or carting unless specified and agre~ to by CITY under this Aqreement~ J.8 Increase ~ The parties may extend the term. of this Agreement for an additional two (2) years '!lpon the agreement of both parties and subject to the City Council's appropriation of funds for the Agreement in the subsequent fiscal years. However, any increase in VENDOR's compensation under this Agreement for the third and fourth years shall not exceed the annual change in the Consumer Price Index ,-CPI-) for the San Francisco Bay Area. 4. TERK. The term of this Agreement shall be froll Septem­ ber I, 1990 to August 31, 1991, contingent upon the City Council's appropriation of funds for the second year of the term. Said tet1ll shall be extended for two (2) additional one-year periodS contin­ qent on: {il City Council approval of each additional year's budget to include funds for payment under this Agreement; (ii) VENDOR meeting the established terms and conditions of this Agreement during the initial term; {iii) Satisfactory compliance by VENDOR with the required certificates of insurance, licensing, permits .. and any other requirements of this Agreement; (Iv) Maintenance of cost per citation fixed over the succeeding contract period as provided under Section 3.9 of this Agreement; and (v) Mutual negotiations between the parties confirming the extension of the AgreeDient for each additional year .. 5. TERMINATION. 5 .. 1 VE1i...©..-~s cancelJatiCTn. VENDOR Jnay terminate or suspend. its se,rvices und~r this Agreement upon providing sixty (6·0) days' written notice to CITY, but only in the event of substantial failure of perfo~ance by CrTY under this Agreement. I , l " f !- • \ , \ l , . i --1,' I ,-. -- 5~2 CITY's Cancellation. Without limication to such Tights or remedies as CITY shall othervise have by law, city shall have the right to s~spend or terminate this Agreement in its discn~tion" upon providing thirty PO) days' 'Written notice to VENDOR, ,or immediately after submission to CITY by VENDOR of any CQmp1.etet1 ite.m. of service under Exhioit "A"~ VENDOR shall. cease all work under this Agreement upon receipt of said written notice. S.l Return of Documents." upon termination of this Agreement. all of CITY's original documents and copies of all VENDOR1S documents and cata relating to performance of its duties and responsibilities under this Agreement shall be promptly delivered to CITY or CITY'S agent as soon as possible, but not later than thirty (30) days following such termination. 5.4 Effect of TermifM..:tion. Upon receipt of CITY'$ written notice of termination,. VENDOR shall not incur any addition­ al obligations under any term of this Agreement vithout the prior "Written consent of CI'l'Y. However, VENDOR shall complete all obligations it "Would incur in the ordinary course of business,. including, but not limited to collection and processing of CITY's then current citations up to the: date of termination" at the option of CITY. and the payment thereof. 6. INSPECTION AND AUDIT. VENOOR sha1.l furnish CITY -with every reasonable opportunity for CITY to ascertain that the services of VENDOR are ·being performed in accordance vith the requirements and intentions of this Agreement. All r~ords, files l tapes and other mat~rials in VENDOR'S pc.ssession "\.'hicb relate in any way to VENDOR'S performance under this Agreement shall be available for inspection by CITY staff, or CITY'S agent, at any time, upon reasonable prior notification. VENDOR shall maintain all records, files, or tapes for the. teem. of this Agreement in California~ HQl,r{ever, payment records must be maintained in VENDOR's Northern califqrnia office. VENOOR sball cooperate and assist CITY or its agent in any audit or inspection pursuant to this Section. 7. CONFIDENTIALITY. 7.1 Ma~~rials con%idential. All reports, informa­ tion and data including but not limited to all computer tapes or discs, files, and tapes furnished or prepared by VENDOR, its sub­ contractors, successors, or assigns (to the eli:tent hereinafter allowed] for the purpose of transmittal to CITY pursuant to this Agreement are confidential and subject to city, State and Federal regulations on ~fidentiality. 7. -;! Rights in ___ Data: .4',;9Jtfidential ill..:. All computer soft'Ware and systems, related automated and manual procedures,. instruction, computer programs,. and data storage media containing ~ ·-'.·_h ___ ~""~-··---. L - • \ • '. '~- \ \ \ \ . .,. \' , ., -I ; 'I - -... • o same, and written procedures performed hereunder are and shall remain exclusively the sole property of VENDOR. and CIT"i shall acquire no riqht or title to such items. CITY shall not provide or otherwise make available said confidential systems, procedures .. in::.tructions. programs, or media, in any form to any person except as otherwise provided herein. In order to ~nable it to carry out its obligations under this Agreement, VENDOR .. to some extent, shall have to disclose informaticn which is the subject of this Section~ To the extent that such confidential material is impaxted to CITY's employees .. CITY shall make its best efforts to retain all confiden­ tial information submitted to CIT\' by VENDOR,. and marked! in writing as ~confidential·. in the strictest confidence possible. 7.3 Consent For oisclosuren __ No report, informa­ tion, data, files Qr tapes furnished or prepared ~y VENDOR or its subcontractors, successors, or agents, shall be made available to any individual or organization without the prior .. ritten approval of CITY, other than individuals or organizations who are reasonably necessary to properly effectuate the terms and conditions of this Agreement. 8. ASSIGNMENT AND STIB-CONTRACI\)RS. 8.1 Subcontracto~ VENOOR shall be responsible for employing or engaging all persons necessary to perform the sez:vices of VENOOR hereunder_ Use of subcontractors shall not operate to relieve VENDOR of any duties, liabilities l or obliga­ tions of VENDOR hereunder.. VENDOR shall <Jive its personal . attention to the fulfillment of the provisions of this Agreement by ~11 of its employees and subcontractors, if any, and shall keep the work under its control. Should VENDOR contemplate subcontracting any p?_rt of the work or services under this Agreement l it shall suhmit to CITY for its consent and approval a description of the work or service to be done ~mder sucb subcontracts together ~ith the name of the proposed subcontractors who shall perfonn any part of the work. 8. 2 ~ __ !;>_J._.s{nrnent. This Agreement shall not be assigned or transferred without the written consent of CITY. 9. INDEPENDENT ~~NTRACTOR. VENDOR's relationship to CITY in the performance of this Agreement is that of an independent contractor. Personnel performing services under this Agreement shall a~ all times be under VENOOFt'S exclusive directio-n and control and shall be employees of VENDOR and not employees of CITY. VENDOR shall pay all wages and salaries and sh~ll be responsible fer all reports and obligations respecting them relating to social security, income ta~ withholding. onemployment compensation l .. orkers' ccmpensation, and similar matters. Neither VENOOR nor any agent or employee of VENDOR shall obtain any right to retirement benefits or other 6 • i t , f I , 1 f , . -, \ \ \ , - \. L , ..J '.' -, -I 1 • i ~' '., iliij~;t:: o o benefits which accrue to employees of CITY. and VENDOR hereby expressly waives any claim it might have to such rights. 10. ENTIRE AGREEMENT. This Agreement is intended by the parti-es as a final expression of their agreement and also as a complete and exclusive statement of the terms thereof r any prior oral or -..ritten agreement regarding the s~me subject matter not~ithstanding. This Agreement may not be modified or terminated orally and p.o-modific:.:!-t.!on or-any claim of waiver o~ any of the provisions shall be effective unless in writing and signed by both parties. 11. CIAIMS AND ACTIONS. 11.1 Reasonable Assistn~nce QJ __ VENOOR. In the event any -claim or action is brollg·ht against CITY relating to VENDOR's performance or services rendered under this Agreement, VENDOR shall render any and all reasonable assistance and cooperation 'Which CITY might require. 11.2 No-ti ficatiQn_ of Claim Against VENDOR. In the event any claim or action is brought against VENDOR relating to Vendor"s performance of service rer.tdered under this Agreement.,. VENOOR: shall notify CITY ... in writing, within five {5} days of service of said claim or action. 12. INDEMNIFICATION. VENDOR hereby agrees to indemnify, defend and hold harmless CITY, its officers, agents, and employees from any and all demands, claims 01" liability of any nature r including 'Wrongful death, caused by or arising out of VENDOR's,. its officers",-agents' or employees',. negligent acts, errors,. or omissions, or willful misconduct. or conduct for ~hich the law i~po£es strict liability on VENDOR, in the performance or non~erformance of this Agreement. 13. INSURANCE. VENDOR shall provide and maintain at its own expense, during the tena·of this Agreement. the following policy or policies of insurance cover:!ng its operations her..;under. Such insurance shall be provided by insurer(s} satisfactory to CITY. Certificates of all such insurance shall be del ivered to CITY before the effective date of this Agreement and shall be attached hereto-as Exhibit -B-and incorporated herein by this reference. Such insurance shall not be canceled, reduced in coverage or limits, or non-rene ..... ed except after thirty {3~) days' ~ritten notice has been given to CITY by VENDOR or the insurer{s}. 13.1 Com.pnreh_,§!_D.sive General Liability. VENOOR shall Obtain comprehensive ger~ral liability insurance ~ith a combined 7 ," • • • • ") -~ "!tl' ,," "-" , o sing-1e limit of riot less than one Million Dollars l$l~O'OO~OO'O) pEr occurrence for property damage and for bodily injury or death of persons. Such insurance shall be primary ",ith respect to any insurance maintained by CITY and shall not calIon CITY's insurance for contributic>ns~ Such insurance shall be endorsed for contrac:tu­ al liability and personal injury and shall include CITY ... its officers, agents, and employees, as additional insureds under the policy or policies~ With respect to the interest of CITY, such insurance shall not be canceled, reduced in coverage or limits, or non-renewed except after thirty (30) days' written notice by Certified Mail, Return Receipt Requested l has been given to CITY. 13 ~2 ~ehensive Automobile I.iability. VENDOR shall Obtain comprehensive automobile liability insurance covering VENDOR's owned~ non-owned I and hired vehicles ~ith not less than One Million ()ollars ($l~ 000,000) Combined Single I.imit per occur­ rence for property damage and for bodily injury or death of persvns. Such insurance shall include the same additional-insu~ed and cancellation-notice provisions as specified in Section 13.1 above and may be combined with the compreh~nsive general liability coverage required above. 13.3 Comp.LEW_.§:_n.~ __ ,i..Y_o§:~~lanket C_:r __ -t~_g _:P9:_1J __ <;-y~ VENOOR shall obtain a comprehensive blanket crime insurance policy, in an amount of Tiio Hundred Tbousand Dollars {$2:00 1 0{l'O] per occurrence insuring against loss of money, securi ties~ or other p-roperty refereed to hereunder which may result {rom (1) dishonestY6 fraudulent acts or breach of fiduciary duty of officers, directors, ,employees of VENDOR, (2) disappearance, destruction, or ~ongful removal inside or outside the premises of VENDOR ~hile in tbe care, custody, or Control of VENDOR, or (3) forgery or alteration of checks 6 drafts~ or any order or direction to pay a sum certain in mO!ley. Such insurance shall be primary to any other similar insurance maintained by CITY and shall include a Loss Payee endorsement naming CITY as its interest may appear~ 13 .. " Workers' Compensation Insurance~ VENOOR shall obtain a policy or program of Workers' Compensation insurance in an amount and form to meet all applicable requirements of the Labor Code of the state of California and which specifically covers all persons providing services on behalf of VENDOR and all risks to such persons und~r this Agreement~ 14. WAIVERS. The waiver by either party of any breach or -violation of any term, covenant .. or condi tien of this Agreement o~ of any provision .. ordinance, or law shall not be deemed t? be a waiver of any other term, covenant .. condi tien, ordinance, or law or of any subsequent breach or violation of the same or of any other term, covenant 6 condition~ ordinance l or laW'. The subsequent acceptance by either party of any fee or other money .... hich may 8 \ , , • \ ,-\ • i" I " , • ,-:,~ t , i f I ~ . , I I . i - r t. " ... - o o become d,ue hereunder shall not be deemed to bE-a waiver of any preceding breach or violation by the other party of any term .. covenant .. or condition of this Agreement or of any applicable la~ or ordinance. 15. COSTS AND ATTOP~EYS FEES. The prevailing party in any action brought to enforce the terms of this Agreement or arising out of this Agreement may recover its reasonable costs and attorneys' fees expended in connection .ith such an action from the other party_ 16. NONDISCRIKINATION. No discrimination shall be made in the employment of persons under this Agreement because of the race .. color, national origin, ancestry, religion or sex of such person. VENDOR shall meet all requirements of the Palo Alto Municipal Code pertaining'to nondiscrimination in employment and sha11 complete and submit the ·Compliance Report--Nondiscrimination Provisions of City of PdIo Alto Contracts· on the form furnished by CITY. If VENDOR is found in violatior. of the nondiscrimi­ nat.ion provisions of the State of Cal ifornia Fair Employment Practice Act or similar provisions of federal law or executive order in the performance of this Agreement# it shall thereby be . found in material breach of this AgreeQent. Thereuponl ClT¥ shall have the power to cancel or suspend this Agreement~ in whole or in part# or to deduct from the amount payable to VENDOR the sum of Twenty-five Dollars {$25) for each person for eaCh calendar day during which such person was discriminated against~ as damages for said breach of contract~ or both~ Only a finding of the State of California Fair Employment Practices commission or the equivalent federal agency or officer shall constitute evidence of a violation of contract under this Section. If VENDOR is found in violation of the nondiscrimi­ nation provisions of this Agreement or the applicable affinnative action guidelines pertaining to this Agreement., VENDOR sb-all 'be found in material breach of this Agreement. Thereupon, CITY shall have the power to cancel or suspend this Agreement~ in whole or in part# or to deduct. from the amour!t payable to VENDOR the sum of 'lvo Hundred Fifty Dollars ($250) for each calendar day during which VENDOR is found to bave been in such noncompliance as damages for said breach of contract~ or both. 9 • \ 1 I 1 o 11.. WARRANTY. 17.1 Vendor shall be required to unconditionall~· warrant that it shall use sound and professional principles and practice in accordance with the highest degree of skill and care as those observed bt nation-al finns of established good reputation as well as the current normally accepted industry standards, in the performance of services required herein. The performance ~f its personnel shall also reflect their best professional knowledge .. skill and judgement. 17 .. 2 If any failure to meet the foregoinq warranty appears within the Agreement period the CITY may terminate the Agreement and require reimbursement of all expenses necessary to. replace or restore such service.. CITY shall be required to document all such expenses and VENDORS's warranty for defective or negligently performed services shall be limited to the cost of re­ performing such services. 18.. AGREEMENT BINDING The terms, covenants~ and conditions of this Agreement shall apply to, and shall bind, the heirs, 5uocessors~ executors, adDinistrators~ assigns,. and subcontractors of both parties. 19. GOVERNING LAW This Agreement shall be governed by the laws of the State of California. 20. NOTICES All notices hereunder shall be given in writing and mailed, postage prepaid, by certified mail l addressed as follows: To CITY: To Vi.~OOR: ~ ... ",: ;<:\ \~ Office of the City Clerk 250 Ham i 1 ton Avenue Palo Alto~ CA 94303 Attention of the at the address above 10 PROJECT DIRECTOR of VENOOR 1 isted t I f , , % , ~ i > >-. ~"." .. ,,;;,-~ ".-'>": , I i .1 I 1 -.'. - .I, .. / o o IN WITNESS WHEREOF. the parties hereto have executed this Agreement the day and year first above written. ATTEST: CITY OF PALO ALTO City ClerJc Mayor APPROVED AS TO FORK: WEST-COHPUTIL CORPORATION Assistant city Attorney By:------------- APPROVED: Its: ________ __ AssIstant City Ma~qer Taxpayer Identification No~ Director of Finance Risk Manager APPROVED AS TO CONTENT: Police Chief Attachments': EXHIBIT -A-: EXHIBIT -S-: SCOPE OF SERVICES INSURANCE CERTIFICATES kJc7/2 5/ 9 Obdc 11 . .... : -' .. ' ' ~. . , , . o o VENDOR'S SCOPE OF SERVICES SECTION 1 --TRAIIU".G. INFOP1Q,TION ANP CUSTOMER.SERVIC!; 1.1 LOCAL OFFICE. Vendor shall maintain an office between San Jose and San Mateo, California 'Which shall serve {minimum hours 9 am to 2:30 pm on business days) walk-in ~ustomers and process City's parking citations pursuant to this Agreement: 1.2 RESPONSE TO PUBLIC INQUIRIES. Vendor shall receive and process all telephone L~ written inquiries of a non-judicial nature~ and shall refer, within two {2) business days, all telephone and written inquiries of a judicial nature to the appropriate aqency for determination and response. VENDOR shall provide personnel in order to serve Spanish-speaking custo:mers. Vendor shall provide sufficient customer service representatives to answer phone calls (minimum business hours 6:30 am to 2:30 pm) and provide responsive inton:ation to the public within three (3J minutes and provide the service levels outlined in this section. 1. 3 CONTESTED CITATIONS. vebicle owner desires to contest VENDOR shall: In the event a registered an outstanding parking citation* 1.3._1 Advise the regist~red vehicle owner of his or ber right to request a court appearance in ~ccordance with Santa Clara county Municipal Court Policy and Procedure and. either: 1.3.2 Coordinate a court appearance for the registered venicle own~_~ with the appropriate court facility; or 1. 3 ~ 3 Refer-the registered vehicle owner to the court upon refusal of said owner to cooperate vith VENDOR in coordination of a court appearance. 1.4 ON-LINE TERJUNAL TO CITY. Vendor shall input into the ~n-1ine co~~ter system ~ll citations, deleticns p holds and dispositions vithin forty-eight (48) business hours of being received~ Vendor shall ensure that CITY will be able to retrieve that data by the following day of entry via the Video Display Ter»tnal. ~he ci~atiGn database sball be accessible by venicle license number or citation number. Vendor shall maintain security on the computer system by means of specific account numbers and pass'Words. 1.5 TRAINING. All training required for CITY stat.! for Vendor's system shall bE; provided by VENOOR on a continuous basis at no additional charge to the CITY. • , \ \ , i _~?5,1 o 0 1.6 RESPONSE TO CITY INQUIRIES. Vend-or shall respond to the CITYIS telephone or electronic mail inquiries within t'Ol.'enty-four (24) business bours ¢t receipt. 1.7 UPDATE MEETINGS. Throughout the course of VENDOR'S service to the CITY" VENDOR'S Director of Operations in the San Jose" California office shall meet on a monthly basis with the CITY'S Project Hanager or designee. SE~~ON 2 --PROCESSING 2.1 -COLLEC'l'ION OF CITATIONS.. VENOOR shall pick up citations froD. the CITY on Mondays" Wednesdays and Fridays of each 'Week or arrange for the daily weekday processing of citations received fro. the CITY by mail or electronic transmission. VENDOR will -work with the CIT'! to set up a UPS delivery system at the expense of the VENDOR, if deemed necessary by the CITY for such collection. 2.:2 RECONCILIATION. VENDOR will provide a daily reconciliation of the nu.mber of citations VENDOR receives froll. CITY and will transmit reconciliation via the electronic mail system and/or UPS or u.s. Pos~al Service. 2.3 DETERKIliATION OF PROCESS1>JlLE CITATIONS. VENDOR shall screen each of CITY·S parking citations to detel1lline if the cita~ion contains the information necessary to process it. If the ,citation is .determined by VENDOR to be unprocessable {e.g., violation not checked, date missing, n;:) license number or VIti provided, etc.), VENDOR shall return the citation to CITY vithin seven (7) calendar days for clarification. Once clarified, CITY shall then resubmit citatIon to VENDOR for processing. VENDOR shall receive no additional compensation for processing a re­ submitted citation. 2.... VENDOR R.J..RDWARE AND SOF'NARE.. VENOOR shalllllaintain modero, reliable, hardware and software such as TRAVICS. 2.5 DEPOSIT CF REVENUES. 2.5.1 VENDOR shall deposit all revenues into the CITY'S bank account vithin tve::1ty-four (24) hours of receipt, except on bolidays and weekends, ~hen revenues shall be deposited the ne~t business day. If revenues must be beld overnight for any reason, VENDOR will ensure that adequate physical security is maintained. Adequate physical security shall be, at a minimum, retaining payments in a locked fireproof safe, secured ~ithin the office of the lockbox supervisor. Access to said container shall be limited solely to the supervisor or acting supervisor. VENDOR shall make deposits into CITY·S bank account of funds held overnight before the close of the following business day. Any exception to this deposit policy must be pre-approved by CITY, in writing. • • . , \ \ , , I .J'" ,} t h I ,'",' 2~5.2 CITY shall receive of California. for DMV holds. ,In VENOOR'S monthly reports. all revenues directly from the state VENDOR sball account for this ~venue 2.5.3 Upon notIfication from the CITY that a payment check for a citation has been returned tor insufficient funds l VENDOR shall, within forty-eight <tSl hours, re-activate the processing of that citation at that point in the process where the citation was when the bad check was received. VENDOR shall not receive any additional compensation for this procedure. 2.6 DELINQUENCY NOTICES. VENDOR shall generate, on at least a veekly scbedule, a Notice of Delinquent: Parking {delinquency notice) for all citations which remaIn unpaid twenty-tive days after the date of issuance. Vendor shall mail these notices to the identified registered owners or the vehicles cited, by means of first class mail l and shall enclose a return envelope to e.xped.ite payments by return mail~ The notice shall indicate that payment Is due vithin fifteen calendar days of the date of l1ail!nq. In addition l these notices shall contain all information required by the California Vehicle Code and any other relevant provisions of state law .. including, at a :minimum, the following: -Expired registration date. -Registered owner and address. -Vebicle license number. -Vehicle make, color .. and year~ -Parking citation issue date and nu~er~ -Location of parking citation issuance. -Issuing aqency. -Violation descrlptlon~ -Procedures of how to clear the parking citation. -Phone number ('08 or sao prefix) for VENDOR assistance. -Fayment address. -Amount necessary to clear cit.ation. -Consequence of non-payment (towIng, immobllization~ etc., -Procedures to schedule a court date or trial~ -Sold or leased automobile affidavit. 2.7 IDENTIFICATIO!; OF REGISTERED VEHICLE OWNERS. VENDOR shall ~ake at least ten (10] attempts~ not less than two (2) weeks apart to obtain the name and address of the registered vebicle owner from the California state Department of Motor Vehicles (UMV) for each vehicle for which a parkinq citation has been issued l but payment for which has not been received within the required time period. VENDOR sball follow all procedures specified by DKV, and sha11 be consistent with the California Vebicle Code ~hen identifying registered vehicle owners. , , ' l : • , ; , \ \ , . • \ ~ \- ~~>< \ • , ' -.-. , ' o Z.8 Vl!RlFICATION OF OWN:ERSHIP. with each attempt to verify ownership through D~J, VENDOR shall ensure that adequate identification of registered vehicle owners and veyifieaticn procedures are utilized vhicb take into consideration, ,at the very least6 the follovinq factors: -Xssuance of new license plates. -Address changes ~ -Tr,ansfe-r of ownership. -License plate transfers to other v~bicles. -Name chanqes. -ValIdity of plates and registration during specific time periods applicable to individual cases. 2.9 NOTIFlCATlo:< OF LESSEE AND/OR SECOND REPORTED OWNER. VENDOR shall notlfy by mail any delInquent lessee and/or second reported owner vhose name and address is provided in the information received from DMV. 2 .. 10 VEHICLE REGI:S'rRATION HOLDS. VENDOR shall be respcnsible for placing a hold ,..ith DMV on vehicle registrations having unpaid parking citations and fees due against those v~hicles in accordance vltb 6 and within the ti~e period provided in, the california VehiQle Code and other applicable State and local la~s. said time period is forty-five (45) oays from the date of the delinquency notice, or as that minimum time period is amended in the California Vehicle Code. VENDOR shall transmit such holds to DMV, via on-line transmission, for all citations that have not been , satisfied. 2.11 REMOVAL OF REGISTRATION BOLOS. Once a registered vehicle owner remits the entire amount of finesl penalties, and fees d,ue on unpaid parking citations to the satisfaction of the VENDOR, VENDOR shall notify DMV vi thin five (5} days to remove the registration hold on that vehicle. 2.12 OOT-Oi'-S'I'A'rE ClTATIONS. VENDOR sbail prt:'Ce5S citations against vehicles -with out-of-state registrations separat~ly according to the sa~e procedures as those arising from in-state citations. If such citations become delinquent VENDOR sball request registered owner's in~ormation from the motor vehicle agency of tbe appropriate state. VENDOR shall mail a Notice of Intent to the registered owner, and shall request that the registered owner remit the bail amount to VENDOR, payable to CITV. 2.13 SUSPENSION OF PROCESSING. VENDOR sball suspend processing any of the CITY'S citations upon the CITY'S wri~ten notice to do so. 2.14 ASSISTANCE \jITH 'PAJU(!NG CITATION DESIGN. Upon request of CITY', VENDOR shall provide any assistance required in the desi9n or procurement of a standardized parking citation for use by the CIT'!. \ • ,\ • f • • " ,:", r ". "' '. I ! ~ ;: 1 1 1 t L·· ,. .. •... f .0 ...... _ ,. -- ;~::. o o '2.l5 PRODUCTIONS CON'l'ROL UN1T~ VENDOR'S Produ.ction Control Department shall provide qual! ty control by daily moni toring of all phases of processing, including batch control entry, disposition, and inventory. These quality control procedures shall provide a second cbeck on the accuracy of all citations end dispositions entered into the system on a daily basis. 2.16 USE OF APPROVED FORMS. All forms, delinquency notlces~ and correspondence sent by the VENDOR shall conform to State and local law and shall be in"itlally appr~ved by the CITY. 2.17 SPECIAL COLLECTIONS PROCESSING. If requested by the CIT Y6 VENDOR shall provide special processing of citations ~hich re~ain ~npaid after all normal processing steps have been taken~ Such citations yould include, but not be limited to: -OMV holds rejects. -Inactive scofflaw status due to change of ownership. -out-of-state open, delinquent and unpaid for one year. If the CITY requests VENDOR to perform this service, VENDOR shall receive an additional fee for this service which shall be thirty­ two (32) percent of the amount actually collected by VENDOR. 3 .. 1 VENDOR shall provide to CIT'l the foll~ing monthly reports within fifteen (lS) days of the last day of the preceeding month at no additional charge to CITY: 3.1.1 FINANCIAL. Revenue reports and citation tracking reports. 3.1.2 I'.Al'IAGEMENT. Citation statistice and officer report. 3.1.3 FlEW. with five or more dates with a total Habitual offender reports showing vehicles deliquent citations issued on .five different bail of at least two hundred dollars ($200.0.0) 3.1.4 voids. COORT. Open citations, dismissals, ~aivers, and 3.1 .. S OUT OF STATE. Statistica1 and year t.o date revenue reports. 3.1.6 3.Z provide of. each SPECIAL. Special reports as requested by CITY. MONTHLY REVENUE DISPOSITION REpORT. to CITY a Revenue Disposition Report (RDR}, month. This report shall include: VENDOR sha 11 on the last day -Monies received and deposits made including supporting detail~ • \ " i 1 I ." ~~,«:.; r;' -::-~>. " :... . , -. . , - i " -" ~ I"~" :,A. ~.l.~ ... ~ •. · .... ·, .... , .. :."· l}~J L' . ," '-"~~. - o o -Konies due Santa clara County and DMV, including supporting details. These reports shall be marked -Preliminary. -A copy of bank statements tor the CITY'S parking revenue account shall be sent directly to VENDOR. After receipt of the bank statement l VENDOR shall deliver to CITY t~o (2) copies of the ROR marked -Final­ within five (5j business days after receipt of the bank statement I along with a complete bank reconciliation. 3.3 CLOSED CITATION REPORT. VENDOR shall provide to CITY a Quarterly Closed Citation Report within t~enty-one (21) days from the close of each quarter. 3.4 VENDOR FILES. VENDOR shall maintain computer files i.n standard ASCII ~ormat on each parking citation referred to it for processing under this Agreement. Such files shall include all records of payments. collection ef~orts. disposition. and any and all other information required to provide an audit trail. Vendor shall pr-ovide CITY vith .. file layout descdbing how the data is stored and a listing of special codes for file descriptions. 3.5-RECORD RETENTION AND STORAGE. For the entire tel1ll of this agreement, VENDOR shall file and retain all citations and payment information in its office located between San Jose and San Mateo. California with the exception of computer generated citations which shall be maintained within the California office of VENDOR. Upon request I VENOOR shall provide to CITY a backup of the last t-welve (12) months of documentation on magnetic tape. VENOOR shall provIde disposition forms and batc~ control forms. VENDOR shall ~ile and retain dIsposition forms in its office between San Jose and San Mateo. VENDOR shall store the citations and records received per section 3~lO 01 the contract agreement at no additional cost to CITV. \ • , \ ". l' .