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Home My WebLink About05 AWARD OF CONTRACT FOR ADMINISTRATIVE CITATION SERVICES 1TY O Agenda Item 5 Reviewed: AGENDA REPORT City Manager °rt% Finance Director N/A MEETING DATE: MAY 20, 2014 TO: TUSTIN CITY COUNCIL FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: AWARD OF CONTRACT FOR PROPOSALS FOR THE PROCESSING AND COLLECTION OF ADMINISTRATIVE CITATION FINES SUMMARY: The City adopted the Administrative Citation Ordinance and Program (Administrative Citation Program) in 2008. The Administrative Citation Program was established in response to the need for an alternative method of enforcement for various violations of the Tustin City Code (TCC). The goal of the Administrative Citation Program is to improve quality of life by promoting and protecting the public health, safety, and welfare of Tustin residents and business owners by reducing the number of code violations through the encouragement of expedient compliance with the TCC and State Codes, ordinances, and regulations in a timely and efficient manner when other administrative remedies are unsuccessful. On April 21, 2009, the City Council awarded a consultant contract for professional services with Data Ticket Inc. (DBA: Revenue Experts) to provide processing services and fine collection of administrative citations. At that time, Data Ticket, Inc. (Newport Beach) was selected and contracted for one (1) year with four (4) yearly extensions which will expire in June of 2014. Staff has conducted an advertisement for proposals, conducted interviews, and is recommending selection of Turbo Data Systems, Inc. (Tustin) for the collection and processing services of administrative citations. FISCAL IMPACT: City costs associated with lengthy enforcement and litigation have been reduced since implementation of the Administrative Citation Program in 2008. Fines collected from administrative citations offset the costs associated with collection services. CORRELATION TO STRATEGIC PLAN: Goal B: Public Safety and Protection of Assets Ensure Tustin is an attractive, safe and well maintained community in which people feel pride. City Council Report Administrative Citation Processing Page 2 RECOMMENDATION: That the City Council authorize and direct the Community Development Director to enter into contract with Turbo Data Systems, Inc. to provide collections and processing services of administrative citations. BACKGROUND AND DISCUSSION: The administrative citation process is a procedure that allows the City to take specific enforcement actions when necessary to resolve particular violations of the TCC. Authorized staff, including police officers and code enforcement officers, may issue administrative citations if violations of the TCC are determined. Administrative citations may be issued independent of or in addition to all other legal remedies, civil or criminal, which may be pursued to address a violation of the TCC. The use of this process is at the City's discretion. Generally this process would be used in egregious cases or when there are repeated or continuing violations that need to be corrected and deterred. The processing of administrative citations includes: revenue collection, citation processing, data entry and citation tracking, live customer service inquiry, notification of hearing decisions, monthly reporting, delinquent payment collections, and on-line payments for fines. Fines collected from administrative citations offset the costs associated with collection services. On April 21, 2009, the City Council awarded a consultant contract for professional services with Data Ticket Inc. to provide collections and processing services of administrative citations. The contract with Revenue Experts was for one (1) year with four (4) yearly extensions which will expire in June of 2014. On April 1, 2014, staff completed a Request for Proposals for professional services to perform collections and processing services of administrative citations. The City received two qualifying submittals. The submittals were as follows: • Data Ticket, Inc. (Newport Beach) • Turbo Data Systems, Inc. (Tustin) City staff conducted interviews of the two (2) firms and found that each provides comparable and competitive fees; however, Turbo Data Systems, Inc. is slightly less costly. City Council Report Administrative Citation Processing Page 3 The following matrix shows the interview panel's ratings of each firm based on the RFP requirements: Qualifications Based Data Ticket Turbo Data Selection (QBS) (Newport) (Tustin) Rater#1 Rater#2 Rater#1 Rater#2 Approach and work plan to specified City 22 24 25 25 objectives (25 points) Qualifications and experience of the service provider's 35 38 38 40 manager and other key individuals (40 points) Results of reference 15 15 15 15 checks (15 points) Clarity of proposal (10 10 10 10 10 points) Compliance with proposal requirements 10 10 10 10 including the 10 page limitation (10 points) TOTAL 91 97 98 100 At the time of the City's original 2008 RFP for processing and collection of administrative citations, Data Ticket, Inc. was selected because the firm had more experience processing administrative citations. The current consultant, Data Ticket, Inc. has generally provided satisfactory administrative citation processing services for the past five (5) years. Both Data Ticket, Inc. and Turbo Data Systems, Inc. submitted a response to the RFP but over the past five years, Turbo Data Systems, Inc. has expanded their business to include administrative citation processing for several cities and other agencies. Turbo Data Systems, Inc. is also currently providing parking citation processing and management to the Tustin Police Department and has been well recommended by Tustin Police Department. Additional references were contacted, including the City of • San Clemente, Police Services and the City of Lancaster to whom they provide administrative citation processing and management services. These references provided exceptional reviews for Turbo Data Systems, Inc. and highly recommended their services. Furthermore, Turbo Data Systems, Inc. provides a collection service in- house rather than third party. This allows for more expedient collection of outstanding fees. City Council Report Administrative Citation Processing Page 4 Staff is recommending Turbo Data Systems, Inc. to provide collection and processing services of administrative citations. Turbo Data, Inc. was selected based on the • following conclusions: • Costs were less expensive overall (A fee comparison is attached for reference in the Attachment). • Manual processing is $7 less per cite • Monthly minimum is $50 less • Positive references were provided (including that of the Tustin Police Department). • Turbo Data Systems, Inc. was ranked higher by the interview panel. • Turbo Data Systems, Inc. provides in-house collections service for non-payment rather than using a third party. • Turbo Data Systems, Inc. is a local Tustin-based firm. Amy Stonich, AICP lizabeth A. Binsack Senior Planner Community Development Director Attachment: Administrative Citation Processing & Collection Fee Comparison ATTACHMENT 1 Administrative Citation Processing and Collection Fee Comparison Data Ticket Turbo Data (Newport)* (Tustin) Manual Administrative Citation $22 per Cite $15 per Cite Processing • Data entry • Quality assurance • Scanning Electronic Admin Cite Processing $19 per Cite Electronic Not Applicable • Automated transmission • Confirmation email • Transmission of photos Semi-Custom Noticing Included Included Delinquent Collections Included Included • Courtesy notice (3 total) • Posted to website Adjudication Hold and Scanning Included Included with Administrative • Hearing requests Hearings • Review/approve appeal requests • Hold cite Adjudication Letters Included Included with Administrative • Send hearing determination Hearings letter Administrative Hearings $85 per hour $80 per hour Franchise Tax Board SSN Search $3/per unique SSN OPT1-$2.50 per SSN lookup OPT2-30%of amount collected, includes SSN lookup FTB Collections 15%of revenue collected OPT1-15%of amount collected OPT2-30%of amount collected, includes SSN lookup Credit Reporting Collections Legal 30%of revenue collected 30%of amount collected Action Not required Joint/Escrow Banking Services $100 per month $50/mo. +City pays bank fees and supplies Charge-backs and NSF's $5 per issued instance $5 each Refunds $5 per issued instance $5 each Monthly Minimum $200.00 monthly $150 monthly in Citation Processing Fees Customer and Public Access Included Included with Citation Processing *Cost Model 1