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SR-20080422-1C (2)~~~ ~;tYof City Council Report Santa Monica City Council Meeting: April 22, 2008 Agenda Item: To: Mayor and City Council From: Carol Swindell, Department Director Subject: Parking Citation Processing Services Recommended Action Staff recommends that the City Council authorize the City Manager to execute an amendment to extend the City's agreement with ACS State and Local Solutions (ACS) to conduct parking citation processing services for an amount not to exceed $2,790,000. Executive Summary The Cities of Santa Monica and West Hollywood contract jointly for process of parking citations with ACS State and Local Solutions. The current contracts expire June 30, 2008. The cities have jointly concluded to extend the contract for two years. The estimated costs for these services for the next two years are $2,790,000. Background The cities of Santa Monica, West Hollywood and Beverly Hills originally issued a RFP in 2003 for proposals for parking citation processing. Beverly Hills initially opted to perform many of the duties in-house for the following year and later recognized the benefits of an outside entity and contracted with ACS. Parking citation services include payment processing, scheduling of hearings, customer service, collection of delinquent accounts, and other related services. The contract expires June 30, 2008. Discussion A two-year extension will provide the cities the opportunity to realign contract expiration dates and move forward as a unified group. The cities have also jointly agreed to request the authority to engage a consultant in exploring the possibility of conducting some of the parking citation processing in-house 1 to enhance services, specifically customer service. A request for $50,000 for the City of Santa Monica's portion of this study has been submitted with the Fiscal Year 08/09 budget. It is estimated that it will take at least two years to conduct the study and implement any potential changes determined to be appropriate. Based on the results of the study, the cities will determine if a request for proposals for parking citation processing services should be issued for some or all of the parking citation services. If the study is not conducted, the City will coordinate with the Westside cities and issue a request for proposals for parking citation processing. The issuance of a request for proposals and the joint selection process will take nearly two years. We are therefore requesting approval of a two-year extension of the contract whether a study is authorized or not. The contract with ACS will include a 30-day termination clause to allow the City to opt out should the Council decide to bring contracted services in- house. Financial Impacts & Budget Actions Parking citation processing costs are estimated to be $1,370,000 and 1,420,000 for each of the fiscal years 08/09 and 09/10, respectively. Budget authority for future years will be included in the respective Proposed Budget for Council's review and adoption. Prepared by: Eva U'Ren, Revenue Manager Approved: Forwarded to Council: Carol Swindell Director of Finance ~mont Ewell Manager 2 Reference Amendment to Contract No. 8201 (ccs).