HomeMy WebLinkAboutItem 12g - Extension to Parking Citation, Permits, and Administrative Processing Services Agreement
DATE: June 18,2024
TO: Honorable Mayor and City Council
FROM: Henry Chen, Interim Administrative Services Director
SUBJECT: PROFESSIONAL SERVICES AGREEMENT EXTENSION WITH
PHOENIX GROUP INFORMATION SYSTEMS FOR PARKING
CITATION, PARKING PERMIT, AND ADMINISTRATIVE CITATION
PROCESSING SERVICES IN AN AMOUNT NOT TO EXCEED $58,100
CEQA: Not a Project
Recommendation: Approve
SUMMARY
The City’s contract with Phoenix Group Information Systems (“Phoenix”) to provide
administrative citation services, expires on June 30, 2024. While staff intends to
undertake a comprehensive review of the citation and parking permit process to
enhance the service and make it more user-friendly, this process will involve reviewing
various vendor offerings, researching current best practices, and implementation, all of
which could take substantial time. To facilitate that review period, Phoenix has agreed
to extend the current contract term for two years with no cost increases, and will provide
the City with new equipment. It is recommended that the City Council authorize the City
Manager to execute a Professional Services Agreement extension with Phoenix for
citation and parking permit processing services for two years, in an amount not to
exceed $58,100 annually.
BACKGROUND
The City began working with Phoenix in 2017 to handle the City’s parking and
administrative citations, delinquency collections program, and overnight parking permits.
These responsibilities were previously handled by City staff. Phoenix also conducts the
City’s monthly appeal hearings for citations and provides an interface with the
Department of Motor Vehicles for vehicle information. Annually, the City issues about
10,000 parking citations and 150 administrative citations, as well as selling
approximately 4,000 overnight parking permits.
During the COVID-19 pandemic, Phoenix helped the City implement an online process
for parking permit renewals that helped reduce the number of customers coming to City
Professional Services Agreement Extension
Phoenix Group Information Systems
June 18, 2024
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Hall to renew their overnight parking permits. This enhanced process reduced the lines
that City Hall typically experiences at the end of the year when residents are renewing
their overnight parking permits. As part of implementing the online process, their
contract was extended through the end of this Fiscal Year.
The City has found the online services very beneficial for both staff and the public, and
is envisioning even more improvements to the system to make the process more user
friendly. Some of the additional features the City is looking to implement include,
allowing residents to transfer their permits and contest their tickets online, better
integration with the City’s financial and cashiering systems, electronic document
storage, and an online reporting portal. Additionally, more email, text, and other
electronic communication methods for permit renewals or fulfillment would be beneficial
to the customer experience. As such, the City expects to issue a request for proposals
for an expanded level of service, in the future.
DISCUSSION
Given that the proposal process could take over a year, including implementation of a
new system, Arcadia needs to keep the existing system in place in the meantime.
Phoenix was contacted to see if they had an interest in a short term contract extension.
Phoenix has agreed to a two-year extension with no cost increase, and has offered to
provide the City with new, updated handheld devices for the parking enforcement team.
Staff is satisfied with the services provided by Phoenix and believes this offer is a fair
value exchange for the extension. It is recommended that the City sign a two-year
extension with Phoenix for Parking Citation, Parking Permit, and Administrative Citation
processing services. The estimated annual contract cost of $58,100, shown in the
following table, is based on the average expenses for the last three years. This amount
is slightly higher than the estimate from the prior contract due to a higher volume of
citations and increases in postage rates. The total costs will vary depending on the
number of transactions that occur.
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Phoenix Group Information Systems
June 18, 2024
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ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), under Section 15061(b)(3) of the CEQA Guidelines, as it can be
seen with certainty that it will have no impact on the environment.
FISCAL IMPACT
The contracted rate will not increase over the extension period. The annual contract
cost is not expected to exceed $58,100 but can vary depending upon the number of
transactions that take place. The contracted amount has been included in the Fiscal
Year 2024-25 Operating Budget.
RECOMMENDATION
It is recommended that the City Council approve, authorize and direct the City Manager
to execute a Professional Services Agreement Extension with Phoenix Group
Information Systems for parking citation, parking permit, and administrative citation
processing services for two years, in an amount not to exceed $58,100 annually.
Fixed Costs Variable Costs
Parking Citations
3 x Handheld Lease ($105/month)3,780$
Handheld Support ($40/month)480
Citations and Processing 10,100$
Postage (First Class Rates)5,300
Letters and Notifications 2,400
Payment Plans 1,500
Handheld Supplies and Maintenance 2,800
Estimated Annual Parking Citation Costs 5,760$ 20,600$
Delinquency and Collections
Delinquent Collections (15% of collections)17,200$
Hearings ($100/hr, 4 hour minimum)4,800$
Estimated Annual Delinquency Costs -$ 22,000$
Overnight Permit Processing
Software License & Hosting ($395/month)4,740$
Processing and Reporting 3,200$
Estimated Annual Permit Costs 4,740$ 3,200$
Administrative Citation
Software License & Hosting ($150/month)1,800$
Estimated Annual Administrative Citation 1,800$ -$
Sub-Total 12,300$ 45,800$
ESTIMATED TOTAL ANNUAL COST 58,100$
Estimated Costs for Citations and Permits
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Phoenix Group Information Systems
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