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Home My WebLink About07 - Parking Citation Processing AgreementMeeting Date: September 28, 1998 Agenda Item No. 7 CITY OF NEWPORT BEACH ADMINISTRATIVE SERVICES DEPARTMENT Rcsource Man agcmcnt • Human Rcsourccs• Risk Man agcment • Fiscal Scn iccs • M. t.S. • Rc%cnue • Accounting September 28, 1998 TO: MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Glen Everroad, Revenue Manager SUBJECT: Parking Citation Processing Agreement SUGGESTED ACTION: Approve the attached proposed agreement for Newport Beach to provide Costa Mesa with parking citation processing and adjudication services through June 30, 2003. SUMMARY: The Administrative Services Department processes parking citations issued by our Police Department, with the associated fixed costs in processing these citations. Ten years ago the City realized the potential economies of scale from the processing of an increased volume of parking citations, and contracted with the City of Costa Mesa to process their parking citations. The current processing fee charged to the City of Costa Mesa ($2.00 per citation) no longer covers our fixed costs for processing their manually issued parking citations. This agreement would increase the fee for processing manually issued Costa Mesa parking citations to ensure that the fixed costs for this type of citation are recovered. The proposed fees would also increase Costa Mesa's subsidy of processing our own parking citations. BACKGROUND: In 1988, the City of Newport Beach entered into an agreement to provide the City of Costa Mesa with parking citation processing and adjudication services for parking citations issued by the Costa Mesa Police Department. The agreement was renewed in 1993 by City Council action. During fiscal year 97/98, the Administrative Services Department processed 14,120 Costa Mesa and 47,639 Newport Beach parking citations. Unlike the electronically generated parking citations issued by our Police Department, Costa Mesa parking citations have been manually generated. Our fixed costs in processing manually issued Costa Mesa parking citations are $2.53 per citation, while our fixed costs of processing electronically issued parking citations are estimated to be $1.86. The previous agreement provides for a $2.00 charge for each Costa Mesa citation processed, with an annual CPI adjustment. This agreement does not differentiate between manually and electronically issued parking citations, and expired in June of this year. The proposed agreement would continue the relationship for another five years, expiring in June of 2003. The significant difference between the proposed agreement and previous agreements is the differential processing fees based on whether their citations are automated or manually issued. The proposed agreement provides that electronically issued parking citations will be processed for $2.00 each, while manually issued parking citations will be processed for $4.00 each. The proposed fees would, based on the fixed costs and last year's volume, net the City of Newport Beach at least $1,975 for electronically issued and $20,750 for manually issued parking citations. More importantly, the charges to Costa Mesa partially offset our fixed costs in processing Newport Beach parking citations. The proposed agreement continues the provisions for an annual CPI adjustment to the processing fees. The City of Costa Mesa reviewed the agreement and desires to continue the parking citation processing service. Moreover, the City of Costa Mesa has, as a result of the proposed agreement, purchased automated parking citation writers. Their use of these devices will reduce our costs in providing citation processing services. This agreement was also reviewed and approved by the City Attorney's office. Glen Everroad Revenue Manager Attachments: Agreement for Parking Citation Processing 2 AGREEMENT FOR PARKING CITATION PROCESSING THIS AGREEMENT, entered into this _ of September, 1998, by and between the CITY OF NEWPORT BEACH, a municipal corporation and CITY OF COSTA MESA, a municipal corporation, is made with reference to the following. WHEREAS, the City of Newport Beach and City of Costa Mesa desire to enter into an agreement for service; and activities relevant to the processing of parking citations in both cities upon the terms and conditions herein. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: I. TERM The term of this Agreement shall commence on the 1" day of July, 1998, and shall terminate on the 30'" day of June, 2003, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFOIL_MED The City of Newport Beach shall perform the following services: A. Recruitment, hiring and supervision of Administrative Review Officer(s) to conduct administrative review pertaining to parking citations issued by the City of Newport Beach and Costa Mesa. B. Recruitment, hiring and supervision of Administrative Hearing Officer(s) to conduct administrative reviews pertaining to parking citations issued by the City of Newport Beach and City of Costa Mesa. C. Data entry, verification of citation data, citation processing and records retention in accordance with the California Vehicle Code. D. Citation clearance following disposition by payment or adjudication. E. Department of Motor Vehicles interface to include registered owner inquiry hold placement and release. F. Printed reports by mutual agreement as to format and frequency. G. Provide the appropriate technical specifications and requirements for real -time on -line access to the parking citation computer files /system. H. Coordination and calendaring of hearing and court appearances. I. Accept all violator payments. J. Delinquent citation collections. The City of Costa Mesa shall perform the following services: A. Provide the transportation of Costa Mesa citations for processing by the City of Newport Beach. B. If the City of Costa Mesa desires to have real -time on -line access to the parking citation computer file /system, it shall obtain the installation of data grade telephone line compatible with the City of Newport Beach's computer and pay the monthly rental. D. If the City of Costa Mesa wishes to use a microcomputer for access to the parking citation computer system, it shall obtain and pay for the microcomputer and any other necessary hardware and software. E. If the City of Costa Mesa desires to use automated parking citation writers, it shall obtain and pay for any necessary hardware, software and maintenance. 3. COMPENSATION For services performed under this Agreement, compensation shall be as follows: The City of Newport Beach shall provide the Administrative Review Officer(s) and Administrative Hearing Officer(s) at its own expense. The City of Newport Beach shall provide the physical facilities and clerical support for the Administrative Review Officer(s) and Administrative Hearing Officers(s) at its own expense. The City of Costa Mesa shall pay the City of Newport Beach the sum of- $2.00 for each electronically issued parking citation received for processing $4.00 for each manually issued parking citation received for processing Payment shall be automatically adjusted each year in July to reflect the percentage change, rounded to the next half dollar, in the cost of doing business as measured by the consumer price index. 4. PROHIBITION AGAINST TRANSFERS Either party shall not assign, sublease, hypothecate, or transfer this Agreement or any interest therein directly or indirectly, by operation of law or otherwise without prior written consent of the other party. Any attempt to do so without said consent shall be null and void, and any assignee, subleases, hypothecate or transferee shall acquire no tight or interest by reason of such attempted assignment, hypothecation or transfer. 5. RECORDS Each City shall maintain complete and accurate records with respect to salary, costs, expenses, receipts and other such information that relates to the performance of services under this Agreement. 6. NOTICES All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the second business day after the deposit thereof in the United States mail, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests, or approvals from the City of Costa Mesa to the City of Newport Beach shall be addressed to the City of Newport Beach at: City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 Attention: City Manager All notices, demands, requests, or approvals from the City of Newport Beach to the City of Costa Mesa shall be addressed to the City of Costa Mesa at: City of Costa Mesa 77 Fair Drive Costa Mesa, CA 92626 Attention: City Manager 7. TERMINATION In the event either party hereto fails or refuses to perform any of the provisions hereof at the time and in the manner required hereunder, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of fourteen (14) days after receipt of written notice of default specifying the nature of such default and the steps necessary to cure such default, the Agreement may be terminated effective upon delivery notice. Each City shall have the option, at its sole discretion and without cause, of terminating this Agreement by giving sixty (60) day's prior written notice to the other City as provided herein. Upon termination of this Agreement, each party shall pay to the other party that portion of compensation specified in this Agreement that is earned and unpaid prior to the effective date of termination. 8. WAIVER A waiver by either City of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein whether of the same or a different character. 9. INTEGRATED CONTRACT This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to very the provisions hereof. Any modification of this Agreement will be effective only by written execution signed by both the City of Newport Beach and the City of Costa Mesa. 10. HOLD FLAIUMLESS The City of Costa Mesa shall indemnity and hold harmless the City of Newport Beach, its City Councils, boards, commissions, officers, agents, servants, and employees from and against any and all loss, damages, liability, claims, suits, costs and expenses, whatsoever, including reasonable attorney's fees, regardless of the merit or outcome to any willful or negligent act or omission by the City of Newport Beach in connection with this agreement. The City of Newport Beach shall indemnity and hold harmless the City of Costa Mesa, its City Councils, boards, commissions, officers, agents, servants and employees from and against any and all loss, damages, liability, claims, suits, costs and expenses, whatsoever, including reasonable attorney's fees, regardless of the merit or outcome to any willful or negligent act or omission by the City of Costa Mesa in connection with this agreement. IN WITNESS HEREOF, the parties have caused this Agreement to be executed on the day and year first above written. CITY OF COSTA MESA CITY OF NEWPORT BEACH a municipal corporation a municipal corporation BY City Manager APPROVED AS TO FORM: City Attorney MR City Manager City Attorney ATTEST: City Clerk