CONTRACT 4223 Other CLOSEDX *?
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AGREEMENT FOR PROCESSING PARKING CITATIONS
This Service Agreement is made by and between
Citation Management, a division of
Professional Account Management, LLC, a
Duncan Solutions Company, hereinafter
referred to as "Contractor" and The City of El
Segundo, CA, hereinafter referred to as
"'A ency"aand entered into this j day of
2011. . The parties intend by
this Agreement to provide for the processing of
fines, penalties, and forfeiture thereof, in
connection with the issuance of citations for
parking violations, and the collection of
delinquent parking fines and penalties pursuant
to the laws of the State of California. In the
furtherance of this purpose, the parties do hereby
agree to the following terms and conditions:
ARTICLE I- PROCESSING
1.1 REFERRAL AND
RECONCILIATION
Agency enters all manual citations. The
Contractor will make zero (0) pickups of
parking citations or payments at the office of the
Agency each week.
1.2 COMPUTER PROGRAMS AND
HARDWARE
Contractor will provide all the computer
programs, written procedures and other
supporting items used in carrying out the
purpose of this Agreement. The
AutoPROCESS citation processing System will
be provided and hosted by the Contractor. The
Agency staff will have access to the system and
provide all the day -to -day processing functions,
except those specifically assigned to the
Contractor. Agency shall be responsible for the
warranty and maintenance of all the hardware
and software including the AutoCITEs and other
computer equipment listed on Attachment A.
The Agency is responsible for any damage, loss,
and/or theft of any /all computer hardware,
software, and/or equipment used by the Agency
at the Agency location. The Agency will
provide insurance coverage for such equipment
as described herein.
1.3 BASE PROCESSING
Citations issued by the Agency (AutoCITE or
manual) will be entered onto the Contractor's
Service Center Computer System and cleared
upon payment or other disposition. Requests
for Registered Owner information will be sent to
the appropriate Departments of Motor Vehicles
(DMV). The Notice of Illegal Parking (NOI)
will be generated to the Registered Owner and
the penalty or fine amount requested. Return
payments will be made directly to the
Contractor. DMV registration holds will be
placed on vehicles having unpaid parking fines
and fees due
against those vehicles in accordance with the
California Vehicle Code and other applicable
state and local laws. The Agency will be
responsible for any and all Court, State, and
DMV charges for the hold placement. DMV
holds shall be removed through DMV when the
registered owner satisfies the entire amount of
parking citation fines, fees, and penalties due
against the vehicle.
1.4 NOTICE GENERATIONS AND
MAILING
The Notice of Illegal Parking (NOI) will be
generated by Contractor and mailed by the
Contractor to the Registered Owner requesting .
the penalty and/or fine amount due, Postage for
the notices will be paid by the Contractor and
billed to the Agency for reimbursement. Return
payments will be made directly to the
Contractor. The Contractor will complete all
collections and banking activity.
1.5 SUSPENSION OF PROCESSING
Contractor shall suspend processing any citation
referred to it for processing upon written notice
to do so by the Agency. Agency shall maintain
records indicating any suspension of a citation as
a result of Agency's request. Contractor shat l
be paid the contractual rate hereinafter provided
for processing these suspended citations.
1.6 COMPUTER SYSTEM
Contractor will provide Agency with Internet
inquiry capability at the Agency location for
inquiry into the AutoPROCESS citation
processing system for retrieval of parking
citation information. This capability will be in
the form of named user license accessible from
the Agency location. The Agency will be
responsible for all connection and/or line costs.
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The Citrix software add -in required will be
provided by the Contractor at no additional cost.
1.7 CONTESTED CITATIONS
In the event a registered vehicle owner disputes
the liability for the outstanding parking citation,
the Agency shall advise the registered vehicle
owner of his/her right to request a court
appearance, or an administrative review or
hearing by the Agency.
1.8 CITATIONS DISPOSED OF BY
REVIEW HEARING OR COURT
The Agency, as a result of an administrative
review or hearing, or court action, may be
required to reduce, cancel or void, on an
individual basis, parking citations, which have
been referred to it. Contractor shall be paid the
contractual rate hereinafter provided for
processing the citation regardless of the outcome
of such action. Contractor shall maintain
records indicating any reduction or cancellations
of parking citations as a result of such action.
1.9 SERVICE OPTIONS
Agency shall receive, and pay for services as
outlined in Attachment "A" (Schedule of Fees).
1.10 OUT -OF -STATE CITATIONS
FOLLOW -UP COLLECTIONS
Out -of -State citations will be entered onto the
system the same as in -state citations. Requests
for registered owner information will be sent to
the appropriate state agency and delinquent
notices will be mailed. The fine and penalty
amounts will be requested from the registered
owner and instructions issued for payment to be
to the Contractor. The fee for this Out -of -State
Processing follow -up s listed on Attachment
"A,.
1.11 COLLECTION AND DEPOSIT OF
FUNDS
At the direction of the Agency, the Contractor
shall collect and deposit monies received for the
payment of parking citation fines and fees into a
parking account with a financial institution local
to the Contractor. Compensating balances on
deposit in the account will offset bank charges.
If such balances are not sufficient to cover such
charges the Contractor shall pay such additional
charges and then bill the Agency accordingly
with the monthly reporting and billing process.
Contractor will receive payments from vehicle
owners through the mail.
1.12 COLLECTION DISBURSEMENT
Contractor shall disburse monthly, all monies on
deposit from the payment of parking citation
fines and fees to the Agency. Disbursement
shall be made after the close of the processing
month beginning the month following the
Agreement date.
1.13 IVR PAYMENTS
Contractor shall provide the public with the
ability to pay parking citations using an accepted
credit card via the Contractor provided
Interactive Voice Response system. The cost for
this service, including credit card discount fees,
will be recovered by the Contractor in the form
of a reasonable convenience fee assessed to the
violator for each citation.
1.14 INTERNET PAYMENTS
At the option of the Agency, the Contractor shall
provide the public with the ability to pay parking
citations using an accepted credit card via the
Contractor provided Internet payment site.
The cost for this service, including credit card
discount fees, will be recovered by the
Contractor in the form of a reasonable
convenience fee assessed to the violator for each
citation.
ARTICLE H - GENERAL
2.1 PUBLIC INQUIRIES
The Agency will process telephone calls, and
correspondence. Explanations of the process for
contesting violations, including the judicial
appeal of the administrative review, hearing, or
court appearance that may come to the attention
of the Agency, will be handled by the Agency
with the guidelines set forth in the Vehicle Code
and the Agency. The Agency will schedule
Court and/or Agency Hearings and
Administrative Reviews where applicable.
2.2 CONTRACTOR LIMITATIONS
Contractor may not do any of the following,
without Agency's prior approval, in writing:
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(a) Take any legal action;
(b) Threaten any legal action; or
(c) Make any communication, oral
or written, regarding potential legal
action.
(d) Disclose any information
regarding driving records or registration
information which is in violation of the
provisions of the laws of the State of California.
2.3 USE OF APPROVED FORMS
All forms, delinquency notices, and
correspondence sent by the Contractor must
conform to State and local law and Agency
procedures, and be approved by the Agency.
2.4 TAXES AND FEES
The Contractor will meet any Agency
requirements for a Business License, Local or
State Sales or Use Taxes. The Contractor will
pay these taxes or fees when required.
ARTICLE III - COMPENSATION
The Agency shall compensate the Contractor
for services according to the Schedule of Fees
attached hereto as Attachment "A" and the
terms of this Article III.
3.1 PROCESSING SERVICES
For performance of the processing services
described in Article 1, the Agency will pay the
Contractor the rate set forth on the Schedule of
Fees, Attachment A, for each parking citation
entered and processed by the Contractor,
regardless of the ultimate disposition or
processability of such citation. No extra
processing charge shall be made for a citation
determined to be unprocessable pursuant to
paragraph 1.1 and subsequently corrected and
re- entered into the database. Out -of -State
Citation Processing Services, Special Collection
Processing Services and any other follow -up
services are in addition to regular processing as
described in the Schedule of Fees. The
contingency fee for Out -of -State Citation
Processing Services will be applied to all Out -
of -State citations. The contingency fee for
delinquent Special Collection Processing
Services and/or any other delinquent follow -up
services, are not accessed for citations in those
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categories which are paid prior to referral for
Collection Services.
3.2 BILLING AND PAYMENT
PROCEDURES
Contractor shall provide the Agency on a
monthly basis with a statement and fee analysis
that accurately reflects the fees earned during the
preceding period. The Agency shall either
approve or reject the statement and fee analysis.
If these documents are rejected by the Agency,
Contractor will be notified, and both parties
shall use their best efforts to resolve the disputed
items.
3.3 CONTRACT ADJUSTMENTS
All postage for this agreement will be paid by
the Contractor and then itemized on the monthly
billing to Agency for reimbursement. If the
postal rates increase during the term of this
Agreement, such increases will be included in
the postage fees paid by the contractor and
reimbursed by the Agency.
3.4 CONSUMER PRICE INDEX
ADJUSTMENTS
The Contractor will be entitled to annual cost of
living adjustments beginning on the first
anniversary of this Agreement, based on the
Consumer Price Index (CPI) for all urban
consumers as calculated by the United States
Department of Labor, Bureau of Labor
Statistics, for the Los Angeles- Riverside -Orange
County area, all items. This increase shall be
automatic and effective upon the anniversary
each year of the Agreement.
ARTICLE IV - TERM OFAGREEMENT
4.1 PERIOD OF PERFORMANCE
The Period of Performance under this
Agreement shall be for five (5) year(s) and shall
commence upon the approval as attested by the
signing by the Agency and the Contractor.
4.2 PRICE INCREASES
The Contractor may request other price
increases, thirty (30) days prior to the
anniversary date of the Agreement. Any
increase in price for this Agreement, excepting
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postage in paragraph 3.3, and CPI in paragraph
3.4, shall require prior written approval by the
Agency.
4.3 TERMINATION
This Agreement may be terminated in writing,
without cause, by either party upon thirty (30)
days written notice to the other party. This
Agreement may be terminated upon the failure
of either party hereto to fulfill any of its
obligations under this Agreement provided that
the party aggrieved by such default has given to
the other party written notice of such default
and, for a period of ninety (90) days from the
date of such notice, and the defaulting party has
failed or refused to remedy such default.
4.4 COMPENSATION
Upon termination of this Agreement, Contractor
shall be compensated for parking citations
processed through the date of termination of the
Agreement.
4.5 APPROPRIATION CLAUSE
This Agreement shall be subject to the
availability of an appropriation by the City of El
Segundo in each fiscal year; provided,
however, that (i) the City of El Segundo and
agrees to use its reasonable best efforts to obtain
such appropriation in its budget.
ARTICLE V - CLAIMS AND ACTIONS
5.1 REASONABLE ASSISTANCE OF
CONTRACTOR
In the event any claim or action is brought
against the Agency relating to Contractor's
performance or services rendered under this
Agreement, the Contractor shall render any
reasonable assistance and cooperation, which the
Agency might require.
5.2 AGENCY COOPERATION
In the event any claim or action is brought
against the Contractor relating to the
Contractor's performance of services rendered
under this Agreement, the Contractor shall
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notify the Agency, in writing, within five (5)
days, of said claim or action. Agency shall
render any reasonable assistance and
cooperation that the Contractor might require.
5.3 INDEMNIFICATION. Contractor
indemnifies and holds Agency harmless from
and against any claim, action, damages, costs
(including, without limitation, reasonable
attorney's fees), injuries, or liability, arising out
of this Agreement, or its performance, except for
such loss or damage arising from Agency's sole
negligence or willful misconduct. Should
Agency be named in any suit, or should any
claim be brought against it by suit or otherwise,
whether the same be groundless or not, arising
out of this Agreement, or its performance,
Contractor will defend Agency (at Agency's
request and with counsel satisfactory to Agency)
and will indemnify Agency for any judgment
rendered against it or any sums paid out in
settlement or otherwise.
5.4 INSURANCE
Contractor shall, at its expense, provide general
public liability insurance, in an amount not less
than $1,000,000.00, with the Agency named as
an additional insured, and with the insurance
carrier and form of policy subject to approval by
the Legal Counsel of Agency. Contractor shall
provide a certificate of insurance, showing the
Agency, its officers and employees, as an
additional insured, with a provision that the
policy shall not be canceled or terminated except
upon thirty (30) days prior written notice to
Agency. Upon request by Agency, Contractor
shall furnish the original or a copy of such
insurance coverage, which shall be maintained at
all times during the term of this agreement. In
addition to the said liability insurance,
Contractor shall provide and maintain workers'
compensation insurance as required by law and
shall furnish a certificate to the Agency showing
such coverage in effect.
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ARTICLE VI - SUB - CONTRACTING AND
ASSIGNMENTS
6.1 SUB - CONTRACTING
Contractor is authorized to engage sub-
contractors at the Contractor's expense.
Contractor shall notify Agency of the name,
address, and other personal information
reasonably requested by agency regarding any
proposed sub - contractor, within 24 hours after
Contractor retains said services. if Agency
disapproves of the use of such sub - contractor,
Contractor shall immediately cease to use same
on Agency's account. This approval by the
Agency may not be unreasonably withheld.
6.2 ASSIGNMENTS
This Agreement may not be assigned without
the prior written consent of the Agency.
ARTICLE VII - INDEPENDENT
CONTRACTOR
7.1 CONTRACTOR'S
RELATIONSHIP
The Contractor's relationship to the Agency in
the performance of this Agreement is that of an
independent Contractor. Personnel performing
services under this Agreement shall at all times
be under the Contractor's exclusive direction and
control and shall be employees of the Contractor
and not employees of the Agency. Contractor
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 Contractor nor any
agent or employee of Contractor shall obtain any
right to retirement benefits or other benefits that
accrue to employees of the Agency, Contractor
hereby expressly waives any claim it might have
to such rights.
7.2 EQUAL OPPORTUNITY
EMPLOYER
Contractor is an Equal Opportunity Employer
and does not discriminate in the hiring, firing, or
other employment practices engaged in by it.
ARTICLE XIII - ENTIRE AGREEMENT
8.1 INTEGRATED AGREEMENT
This contract is intended by the parties as a final
expression of their Agreement and also as a
complete and exclusive statement of the terms
thereof, any prior oral or written Agreement
regarding the same subject matter
notwithstanding. This Agreement may not be
modified or terminated orally, and no
modification or any claim of waiver of any of
the provisions shall be ef'f'ective unless in writing
and signed by both parties..
8.2 COMPLIANCE WITH
APPLICABLE LAWS
Contractor agrees to comply with all laws
within the State of California governing the
conduct of business, including but not related to
laws pertaining to licenses, taxes, corporate
regulations, and collection practices.
8.3 GOVERNING LAW
Agency and Contractor agree that the law
governing this Agreement shall be that of the
State of California.
8.4 NOTICES TO PARTIES
Any notice required under this Agreement to be
given to either party may be given by depositing
in the United States mail, postage paid, first -
class, a notice addressed to the following:
Contractor:
Professional Acct. Mgt. LLC
633 W. Wisconsin Ave
Suite 1600
Milwaukee, W153203
Agency:
City of El Segundo
348 Main Street
El Segundo, CA 90245 -3885
WHEREFORE the parties hereto have entered
into the Agreement on the day and year first
hereinabove written. The agreement is to be
prepared in duplicate and after acceptance by the
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Agency; a duplicate copy shall be forwarded to
the Contractor.
Professiona' ,ccou t Manage nt Oc
By:
Title:
v mi
Title: City Manager
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ATTACHMENT A
SCHEDULE OF FEES
The processing fee per citation for the period of
this Agreement will be based on the following
options:
RATE PER CITATION ISSUED:
$0.95 will be the initial processing fee subject to
CPI increases as described in Section 3.4 of the
Agreement. Fee is applicable for parking
citations generated by handheld computers
and/or electronically transferred to Contractor
Processing Center, and for manual parking
citations processed by Contractor into the
citation master file.
AutoCITE COMPUTERS: (Parking)
(0) AutoCITE Series X3
(0) USB Charger Unit
(0) Desktop PC (monitor, keyboard, mouse and
cables included)
(0) Laser Printer
AutoISSUE Software
Full Maintenance for the term of the Agreement
ADDITIONAL FEES:
All Notices: 1 st Notice ,2nd Notice (Notices sent
to lessees, renters, second registered owners and
second addresses, or any other Notice or Letter
deemed necessary) will be an additional fee of
$0.35 per item (POSTAGE ADDITIONAL).
An additional fee of $0.25 (POSTAGE
ADDITIONAL) will be charged for any hand
processing associated with any notice, letter or
correspondence. The Contractor will retain fees
collected for the processing of NSF checks.
HABITUAL OFFENDER LETTERS:
Habitual Offender Letters may be prepared at
Agency request on Agency letterhead or on
Parking Enforcement Center (PAM) letterhead
or both, accompanied by corresponding
delinquent citation information from the habitual
offender hotsheet report at a rate of $1.00 per
letter mailed plus postage.
OUT -OF -STATE CITATION PROCESSING
The fees for Out -of -State citation processing
shall be forty percent (40 %) of the revenue
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received on Out -of -State citations which are
paid prior to 80 days from date of issuance.
DELIQUENT OUT -OF -STATE FOLLOW -
UP COLLECTION PROCESSING:
The fees for Out-of-State citation follow -up
collection processing shall be forty percent.
(40 %) of the revenue received on Out-of-State
citations that become delinquent, and 80 days
has passed since the issue date. The Contractor
will require that the Agency execute a standard
collection services agreement before
undertaking any collection processing.
DELINQUENT IN -STATE FOLLOW -UP
COLLECTION PROCESSING:
The fees for In -State citation fallow -up
collection processing shall be forty percent
(40%) of the revenue received on In -State
citations that become delinquent, and 80 days
has passed from the issue date. The Contractor
will require that the Agency execute a standard
collection services agreement before
undertaking any collection processing.
DATA CONVERSION:
Conversion of data files that meet our
conversion file standards will not incur any
additional charges. Custom programming
required to convert data files that do not meet
our conversion file standards will be charged at
$150.00 per hour.
A MINIMUM FEE OF $12,000 PER YEAR
WILL BE CHARGED.
SYSTEM ENHANCEMENTS
System enhancement or customization requests
will be billed at the rate of $150 per hour.
BACKLOG CITATION PROCESSING:
All original citations, accompanied by all
dispositions for the same period, defined as the
backlog, will be processed by Contractor at no
additional "'charge.
INTERNET ACCESS WORKSTATION
Licenses
Agency Internet access workstation licenses
include software to access database for
AutoPROCESS at $100.00 per workstation.
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ATTACHMENT B
OPTIONAL CONTRACT PRODUCTS AND
SERVICES
WHEREAS, the City of El Segundo may desire
to engage the Contractor to provide certain other
products and or services that support or are
otherwise related to the City's parking program.
In addition to the core contract products and
services stated previously, the Contractor,
subject to the City's prior approval, shall
provide, complete and deliver certain Optional
Contract Products and Services. The City shall
determine the Optional Contract Products and
Services it needs to enhance the parking
program. At the City's written request and/or
Contract Amendment as required, and in accord
with the terms herein, the Contractor shall
provide such Optional Contract Products and
Services. The Optional Contract Products and
Services, and all related all goods, services,
tasks, deliverables and work, are set forth below
B.1 PROCEDURE
At the City's written request, the Contractor
shall deliver the Optional Contract Products and
Services authorized by the City. The Contractor
shall not provide any Optional Contract Products
or Services until notified by the City to do so in
writing. Upon receiving proper authorization,
the Contractor shall implement the Optional
Contract Products and Services in accordance
with the implementation requirements set forth
and mutually agreed upon by the City of El
Segundo and the Contractor.
B.2 COMPENSATION SCHEDULES
The City and Contractor may adopt updated
compensation schedules for Optional Contract
Products and Services at any time during the
contract tern. If the City desires any Optional
Contract Products and/or Services, it may
request the Contractor to submit an updated
proposal of terms and costs for said services,
including any underlying cost assumptions.
Upon accepting the Contractor's updated terms
and costs, the City shall issue a Project Task
Order authorizing the Contractor to proceed with
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the delivery of said services. The City shall pay
the Contractor for any Optional Contract
Product or Service in accordance with the terms
of this contract or the Project Task Order issued
by the City. The Contractor shall provide the
City with full documentation of any fees and
expenses at the City's request.
B.3 OPTIONAL PRODUCTS OR
SERVICES
City of EI Segundo may engage the Contractor
to deliver certain Optional Products and/or
Services in accordance with its requirements as
defined herein. Such Optional Products or
Services may include, but are not limited to, the
following:
• Parking Ticket Issuance Products /Services
• Parking Ticket Processing Services
• Secondary Collection Services/FTB
Processing
• Administrative Adjudication Services
• Single Space Meters
• Multi Space Meters
• Meter Management Software
• Any and all products or services that are
provided by Duncan Solutions, its entities,
related partnerships and or any
subcontractors
The City shall determine the Optional
Products /Services it needs to enhance the
parking violation program or other related
municipal services. At any time during the
course of this contract, the City may issue a
written Project Task Order to the Contractor
specifying the Optional Products/Sery ices that it
requires, the compensation it agrees to pay the
Contractor for said services and any other terms
and conditions. As necessary, the City may also
request a proposal for any of the services
described herein reflecting revisions in the scope
and cost specified herein. Upon accepting the
City's Project Task Order, the Contractor shall
deliver the Optional Services requested by the
City in accord with the terms therein.
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