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sr-011012-3eID City of Santa Monica City Council Report City Council Meeting: January 10, 2012 Agenda Item: 5 ' F To: Mayor and City Council From: Gigi Decavalles- Hughes, Acting Director of Finance Subject: Amendment to Agreement 1994 with Sheri E. Ross for Parking Citation Administrative Hearing Examiner Services Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a modification to Professional Services Agreement 1994 with Sheri E. Ross, a California based independent hearing officer, to extend the contract term an additional three years through December 31, 2015 at an estimated amount of $80,000 per year for parking adjudication services. The total cost of this five year agreement would be $400,000. Executive Summary The State of California requires municipalities to follow the provisions of the California Vehicle Code (CVC), which mandates that issuing agencies provide an impartial review process for contested parking citations. The City of Santa Monica contracts out the adjudication of contested parking citations to an independent administrative hearing examiner and wishes to extend its existing two -year contract for an additional three years. The annual cost of the agreement is based on the number of citations appealed and is estimated to be approximately $80,000 per year for a five year total cost of $400,000. Background In July 1993, the State of California decriminalized parking citations and transferred responsibility for citation processing and adjudication from the courts to local jurisdictions. State law requires that all counties and municipalities follow the provision of the California Vehicle Code (CVC) in adjudicating parking citations. Section 40215 of the CVC specifies that citations must be paid or contested no later than 21 calendar days from the issuance of a parking citation or 14 calendar days from 1 the mailing of a notice of delinquent parking violation, whichever is later. To contest a parking citation, a person may request an initial administrative review of the citation. This review is conducted by the Police Department for the purpose of determining whether the violation did occur, whether the registered owner was responsible for the violation and /or whether extenuating circumstances make dismissal of the citation appropriate in the interest of justice. A person dissatisfied with the results of the initial administrative review can request an administrative hearing no later than 21 days following the mailing of the initial administrative review decision letter. If found liable after the administrative hearing, the person can then file an appeal to be heard by the Superior /Municipal Court within 30 calendar days after the mailing of the administrative hearing decision. These timelines are set by the CVC, which also specifies that failure to exercise appeal rights by the deadlines eliminates any further appeals. The process and timelines are detailed on the City's website and in notices sent to those who receive parking citations. Discussion The CVC stipulates the administrative hearing process and requires that the issuing agency appoint or contract with qualified administrative hearing providers. Hearing examiners cannot be employees of the City. They are paid a flat fee per administrative hearing and compensation cannot be linked to decisions. The training requirements for the hearing officer are set by the CVC. Approximately seven percent of all parking citations are contested and enter the adjudication process. On average, 50 percent of the citation recipients found liable at the initial review phase continue to an administrative hearing held by the hearing examiners. During the past year, 45 violators out of 4398 hearings continued to the final or court appeal stage. Staff anticipates an average amount of 4300 hearings per year for the next three years. Contractor /Consultant Selection In December 2009, Staff issued a Request for Proposals (RFP) for parking citation administrative hearing examiner services for a term up to five years. The RFP was sent 2 to known hearing examiners in the Los Angeles area, posted on the City's website, and posted on the California Public Parking Association website. One proposal was submitted in response to the RFP by Sheri E. Ross. City staff from the Police and Finance Departments, acting as the review committee, considered references, presentation materials, sample decisions, and years of experience conducting parking citation hearings and unanimously selected Sheri E. Ross, who has conducted parking hearings for Beverly Hills, West Hollywood and the City of Los Angeles since 2005. Sheri Ross has successfully provided hearing officer services in compliance with all contract requirements and, therefore, staff recommends Council authorize the City Manager to execute the option extending the contract period provided for in the current agreement. Financial Impacts & Budget Actions Fees are paid on a per -case basis. On average, the number of cases heard each year is 4,300. The rate for the first year of the three year extension is $17.50 per case, with an estimated annual cost of $75,250. The rate for the second year is $18.50 per case, with an estimated annual cost of $79,550. The rate for the third year is estimated at $19.50 with an estimated annual cost of $83,850. Sufficient funds are included in the Parking Operations Division's FY 2011 -13 Adopted Budget; the costs associated with this agreement will be charged to account 01225.555060. Prepared by: Frank Ching, Parking Coordinator Approved: 1 f'orGigi Decavalles- Hughes Acting Director of Finance 3 Forwarded to Council: Rod Gould City Manager Reference Contract No. 9529 (CCS).