HomeMy WebLinkAbout- - Award RFP 1136- Contract for Parking Ti - 7/6/2010CITY COUNCIL AGENDA REPORT
MEETING DATE: JULY 6, 2010
ITEM NUMBER:
SUBJECT: AWARD RFP 1136 -CONTRACT FOR PARKING TICKET CITATION PROCESSING
SERVICES
DATE: JUNE 14, 2010
FROM: POLICE DEPARTMENT — SUPPORT SERVICES/TRAFFIC
FINANCE DEPARTMENT — FINANCIAL PLANNING DIVISION
PRESENTATION CHRISTOPHER SHAWKEY, CHIEF OF POLICE
BY:
FOR FURTHER INFORMATION CONTACT: DEBBIE CASPER, PURCHASING SUPERVISOR
(714) 754-5212
MARTY CARVER, LIEUTENANT (714) 754-5384
RECOMMENDATION:
1. Award contract for Parking Ticket Citation Processing Services per Request for Proposal
(RFP) 1136 in a not to exceed amount of $125,000 per year to Data Ticket Inc, 4600
Campus Drive, Suite 200, Newport Beach, California 92660. The term of the contract is
from July 7, 2010 through July 6, 2012 with the option to extend the contract for three
additional years.
2. Authorize the Mayor and the City Clerk to execute the Professional Services
Agreements for the contract.
3. Authorize the City Manager to extend the contract for three additional one-year terms upon
recommendation from the Police Department.
BACKGROUND:
The City of Costa Mesa has maintained a professional services agreement with Data Ticket Inc
since November 19, 2001 for data processing, collection of fines, administrative reviews and
hearings for parking citations issued by the Police Department. The current five-year
agreement expired on March 31, 2010. Since there were no remaining extensions on the
contract, it was determined that it was in the City's best interest to conduct a formal request for
proposal process. The City entered into a month-to-month agreement with Data Ticket during
the solicitation process.
The services provided by this contract include: on-line California DMV access and nationwide
access for out of state DMV information, holds and releases, daily and delinquent collections,
adjudication scheduling and services, and Franchise Tax Board interface for collections through
the Interagency Intercept Program, as well as third party collections. This contract is critical in
maximizing revenue recovery.
As required by the Costa Mesa Municipal Code, staff sent the "Request for Proposals" (RFP)
electronically to seven (7) prospective companies including qualified providers whose names
were on the bidders' list, and other vendors requesting information. To ensure adequate notice
and competition, the RFP was also posted on the public bulletin board in City Hall and
published in the Daily Pilot. A downloadable version of the RFP was also made available on the
City's website.
On March 18, 2010, a non -mandatory pre -proposal meeting was held in Conference Room 1A. The
purpose of the pre -proposal meeting was to provide an opportunity for prospective companies to
request clarification and explanation of RFP requirements. Three (3) prospective companies were
represented by the eight (8) attendees at the pre -proposal meeting. The purchasing supervisor
served as the meeting chair with police and treasury management staff available to answer
technical questions. An addendum was issued on March 24, 2010, to address the clarifications
discussed in the pre -proposal meeting. On April 8, 2010, the City received three (3) proposals.
The analysis of the proposals was based on the volume of 26,000 citations, the number of
citations processed in FY 2008-09. The previous contract price paid for the processing both
electronic and manual citations was $0.96 each. The new pricing is $0.70 for electronic
citations and $0.88 for manual citations. The new contract pricing includes courtesy notices,
follow up notices, payment plan letters, and postage for all mailings. The new contract will
result in a savings of approximately $43,566 in the citation processing services. Data Ticket
Inc. is offering to perform the collections for both out of state and delinquent for a lower
percentage resulting in an additional savings of $13,000 based on FY 2008-09 estimates. This
agreement provides a cost effective means of outsourcing a large volume of work that would
otherwise have to be performed by city staff.
ANALYSIS:
In order to ensure a fair and objective RFP process, the evaluation process was conducted by
purchasing staff. The criteria used for scoring the evaluations included method of approach,
technical requirements, qualifications & experience, and proposal costs. A three-person
evaluation team was assembled and all members were instructed to conduct their evaluations
independently of each other.
The intent of the evaluation process was to award a contract to the highest scoring service provider.
There were a total of 100 points possible in the evaluation process. Each evaluation team member
evaluated the companies, and their raw score was converted to a ranking from 1 to 3. The sum of
the results for each company was totaled and the resulting rankings are shown below. This method
of evaluation is known as the Heisman Method and it is used to prevent one committee member
from skewing the scores in favor or not in favor of a particular company. There was a natural break
between the first and second ranked companies.
ALTERNATIVES CONSIDERED:
Qualified staff members have invested extensive time independently evaluating and scoring the
solicitations received.
The City could develop its own system for data processing, fine collection and administrative review
and hears, however this option would require additional staffing to carry out all the necessary
responsibilities. Additional costs would include computer programming development and
maintenance, hardware, debt collection fees, postage and supplies. It is estimated that the costs
for these responsibilities to be performed by city staff would exceed the cost of the contract with
Data Ticket and it is therefore not recommended.
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Evaluator 1
Evaluator 2
Evaluator 3
Total
Data Ticket
1
1
1
3
Turbo Data Systems
3
2
2
7
Phoenix Group
2
3
3
8
ALTERNATIVES CONSIDERED:
Qualified staff members have invested extensive time independently evaluating and scoring the
solicitations received.
The City could develop its own system for data processing, fine collection and administrative review
and hears, however this option would require additional staffing to carry out all the necessary
responsibilities. Additional costs would include computer programming development and
maintenance, hardware, debt collection fees, postage and supplies. It is estimated that the costs
for these responsibilities to be performed by city staff would exceed the cost of the contract with
Data Ticket and it is therefore not recommended.
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FISCAL REVIEW:
Payments for the services performed under this agreement are included in the budget. The total
expenditures associated with this agreement are offset by the revenue generated from issued
citations. The City paid Data Ticket $115,209 in FY 2008-09. This amount is offset by $880,459 in
parking citation revenues, for net revenue of $765,250. The RFP process will result in cost savings
of $56,014 in the first year when compared to data from FY 2008-09 data for citations processed,
and both out of state and delinquent collection services.
LEGAL REVIEW:
The attached Professional Services agreement has been reviewed and approved as to form by
the City Attorney's Office.
CONCLUSION:
After thorough review and comparison of the three proposals received, it is the recommended that
the City Council award a two-year contract per RFP 1136 for Parking Citation to Data Ticket Inc. In
addition, it is recommended that City Council authorize the Mayor and the City Clerk to execute the
Professional Services Agreement and to authorize the City Manager to extend the contract for three
additional one-year terms if the Police Department recommends doing so.
CHRISTOPHER SHAWKEY MARTY CARVER
Chief of Police Police Lieutenant
COLLEEN O'DONOGHUE DEBBIE CASPER, C.P.M., CPPB
Assistant Finance Director Purchasing Supervisor
DISTRIBUTION: City Manager
ATTACHMENTS: Professional Services Agreement
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