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HomeMy WebLinkAboutItem 12e - Citation and Parking Permit Processing Services DATE: April 6,2021 TO: Honorable Mayor and City Council FROM: Hue C. Quach, Administrative Services Director Henry Chen, Financial Services Manager/City Treasurer SUBJECT: EXTENSION OF PROFESSIONAL SERVICES AGREEMENT WITH PHOENIX GROUP INFORMATION SYSTEMS FOR PARKING CITATION, PARKING PERMIT, AND ADMINISTRAITVE CITATION PROCESSING IN AN AMOUNT NOT TO EXCEED $53,300 Recommendation: Approve SUMMARY Due to the changes necessitated by the COVID-19 pandemic, Staff has been evaluating how to let customers purchase annual overnight permits virtually. As part of the due diligence process, the City reached out to Phoenix Group Information Systems (“Phoenix”), our current vendor, to determine the feasibility of adding this feature. Phoenix provided a quote of $15,000; however, they offered to forego the fee in exchange for a 3-year contract extension. After further negotiations, Phoenix agreed to additional incentives with one minor cost increase. It is recommended the City Council approve, and authorize and direct the City Manager to execute a Professional Services Agreement extension with Phoenix for citation and parking permit processing services for three years in an amount not to exceed $53,300 annually. DISCUSSION As part of the assessment of how the City delivers its services during the COVID-19 pandemic, parking permit sales were identified as an area that involved a lot of in- person contact. In the past, the City generally sold/renewed the annual parking permits during the last few weeks of December and first two weeks in January. There would be long lines of customers waiting to purchase the permits because the City did not have an effective online presence for customers to purchase their permits without visiting City Hall. The pandemic gave staff the impetus to more directly contemplate what improvements would be needed to be able to conduct parking permit sales more effectively in a socially distant way. Professional Services Agreement for Citation/Parking Permit/Admin Citation Processing Extension April 6, 2021 Page 2 of 4 Staff reviewed the entire process and determined that in addition to creating a web- based form and transaction process, adjusting the expiration date for the permits would also be beneficial for all parties. Currently, all permits are set to expire on December 31, thus requiring everyone to renew at the end of the year; in addition, permits need to be prorated throughout the year, which adds slightly to the complexity of the process. Under an updated method, permits would expire 12 months from the date of purchase. This way, the renewals would be more evenly spread throughout the year, reducing the amount of crowding that may happen at the public counters. Having determined what was needed, the City reached out to our current vendor to assess their ability to implement our changes and obtain a quote for the services. The vendor provided a quote of $15,000 for the changes requested. The vendor also made an additional proposal: they would absorb the cost of the changes if the City would sign a 3-year extension of the current contract. In exchange, the City countered with a request for no cost increases for the 3 years and other additional incentives. After further negotiations with the vendor, they agreed to the 3-year extension with only an increase in the cost of hosting the permit system from $150 per month to $395 per month due to the additional data load of the new features that the City is asking them to provide. In addition, they would provide the City with new, updated handheld devices for the parking enforcement team and reduced cost in repairs if needed. Staff has been happy with the services provided by Phoenix over the last 5 years and felt that this offer was fair value in exchange for the 3-year extension. It is recommended that the City sign a 3-year extension with Phoenix for Parking Citation, Parking Permit, and Administrative Citation processing services. The estimated annual contract cost of $53,300, shown on the following table, is based on the average for the last 3 years. Total costs will vary depending on the number of transactions that occur in any given year. Professional Services Agreement for Citation/Parking Permit/Admin Citation Processing Extension April 6, 2021 Page 3 of 4 ENVIRONMENTAL IMPACT The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT The annual contract cost is not expected to exceed $53,300 but can vary depending upon the number of transactions that take place. The contracted amount has been included in the proposed Fiscal Year 2021-22 Operating Budget. RECOMMENDATION It is recommended that the City Council determine that this is not a project under the California Environmental Quality Act (“CEQA”), and approve, and authorize and direct the City Manager to execute a Professional Services Agreement Extension with Fixed Costs Variable Costs Parking Citations 3 x Handheld Lease ($105/month)3,780$ Handheld Support ($40/month)480 Citations and Processing 8,400$ Postage (First Class Rates)4,200 Letters and Notifications 3,200 Payment Plans 1,500 Handheld Supplies and Maintenance 3,200 Estimated Annual Parking Citation Costs 5,760$ 19,000$ Delinquency and Collections Delinquent Collections (15% of collections)14,800$ Hearings ($100/hr, 4 hour minimum)4,800$ Estimated Annual Delinquency Costs -$ 19,600$ Overnight Permit Processing Software License & Hosting ($395/month)4,740$ Processing and Reporting 2,400$ Estimated Annual Permit Costs 4,740$ 2,400$ Administrative Citation Software License & Hosting ($150/month)1,800$ Estimated Annual Administrative Citation 1,800$ -$ Sub-Total 12,300$ 41,000$ ESTIMATED TOTAL ANNUAL COST 53,300$ Estimated Costs for Citations and Permits Professional Services Agreement for Citation/Parking Permit/Admin Citation Processing Extension April 6, 2021 Page 4 of 4 Phoenix Group Information Systems for parking citation, parking permit, administrative citation processing in an amount not to exceed $53,300 annually. Attachment: Proposed Amendment No. 3 to the Professional Services Agreement AMENDMENT NO. 3 TO THE PROFESSIONAL SERVICES AGREEMENT FOR PARKING CITATION, PARKING PERMIT AND ADMINISTRATIVE CITATION SERVICES BY AND BETWEEN THE CITY OF ARCADIA AND PHOENIX GROUP INFORMATION SYSTEMS This Amendment No. 3 (“Amendment No. 3”) is hereby entered into this ______ day of _____________, 2021 by and between the City of Arcadia, a municipal corporation of the State of California, and Phoenix Group Information Systems, a California Limited Liability Corporation with respect to that certain Professional Services Agreement (“Agreement”) between the parties dated August 24, 2016; and amended by Amendment No. 1 dated September 18, 2019; and amended by Amendment No. 2 dated August 20, 2020. The Parties agree as follows: 1. Section 3.1.2 of the Professional Services Agreement, the Term is hereby extended from July 1, 2021 through June 30, 2024 (“Extended Term”). 2. Monthly fee for permit processing is increased from $150 per month to $395 per month. 3. All terms and provisions of the Agreement not amended by this Amendment No. 3 are hereby reaffirmed. In witness whereof the Parties have executed this Amendment No. 3 on the date set forth below. CITY OF ARCADIA PHOENIX GROUP INFORMATION SYSTEMS By: By: Dominic Lazzaretto City Manager Title: Dated: Dated: By: ATTEST: Title: Dated: City Clerk APPROVED AS TO FORM CONCUR: Stephen P. Deitsch Hue Quach City Attorney Administrative Services Director