SR 05-08-2018 3J
City Council
Report
City Council Meeting: May 8, 2018
Agenda Item: 3.J
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To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Revenue
Subject: Fifth Modification to Agreement 9210 (CCS) with Conduent State & Local
Solutions, Inc. to add the Installment Payment Plans Software Module to
Process Payment Plans for Parking Citations
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a fifth modification to agreement #9210 (CCS) in an estimated amount of
$61,250 with Conduent State & Local Solutions, Inc., a New Jersey-based company, to
add the Installment Payment Plans software module to process payment plans for
parking citations in compliance with Assembly Bill 503. The nine -year term of the
contract will remain unchanged. This will result in a nine-year amended agreement with
a new estimated total amount of $14,561,250, with future year funding contingent on
Council budget approval.
Executive Summary
The City currently contracts with Conduent State & Local Solutions, Inc. (Conduent) for
parking citation processing, parking permit fulfillment, and payment processing services.
On October 13, 2017, the State of California approved Assembly Bill No. 503 (AB 503),
which mandates that cities provide payment plans for any unpaid parking citations for
qualified indigent individuals who request it. Staff recommends a fifth modification to
agreement #9210 with Conduent to add the Installment Payment Plans (IPP) software
module to process payment plans in compliance with AB 503. The amended cont ract
would be for an estimated additional amount of $61,250 for the remainder of the
contract, for an estimated amended total of $14,561,250. The nine -year term of the
contract would remain unchanged.
Background
On November 23, 2009, the three Westside cities of Santa Monica, West Hollywood,
and Beverly Hills jointly issued a RFP for citation processing, handheld devices, license
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plate readers, and permit processing systems. A selection committee of
representatives from all three cities reviewed the proposals and unanimously selected
Xerox (then ACS State & Local Solutions, Inc.) as the best bidder based on price, range
of products and services offered, ability to address the Westside cities’ issues, and
commitment to implement an integrated parking solut ion.
On May 11, 2010 (Attachment A), Council authorized the City Manager to negotiate and
execute agreement #9210 (CCS) with ACS State & Local Solutions, Inc . in an estimated
amount of $1,400,000 per year for a period of five years, with two additional t wo-year
renewal options, to provide parking citation processing, parking permit fulfillment, and
payment processing services. In April 2012 agreement #9210 (CCS) was assigned to
Xerox following the name change as a result of ACS State & Local Solutions, I nc. being
acquired by Xerox. Xerox later separated its parking operations under Conduent. The
City’s agreement to maintain the software is now with Conduent.
The most recent contract modification was approved by Council on May 9, 2017
(Attachment B) to increase the contract amount by an estimated $1.9 million (including
a 10% contingency) and extend the contract term to June 30, 2018, with one remaining
one-year renewal option. This modification resulted in a nine-year amended agreement
with an estimated agreement amount of $14.5 million, with future year funding
contingent on Council budget approval. As stipulated in the fourth modification, the City
is currently in the process of extending the contract for an additional one -year term
through June 30, 2019.
Discussion
On October 13, 2017, the State of California approved AB 503 which mandates that
cities offer payment plans for unpaid parking citation(s) to all qualified indigent
individuals who request it. The City has not offered payment plans for parking citations
in the past, and the current contract with the company providing parking citation
processing services (Conduent) does not include an IPP software module or pricing
information. The implementation deadline for AB 503 is July 1, 2018. To aid in this
implementation, staff recommends acquiring Conduent’s IPP software module.
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In concert with AB 503 implementation, staff also recommends offering payment plans
for parking citations to all people issued citations. This option has been requested
many times in the past and would enhance customer service levels by offering a new
payment option and reducing the number of Department of Motor Vehicles registration
holds on cited vehicles. In addition, this service could potentially reduce the City’s
parking citation collections costs as it could lead to fewer delinquent citations.
Staff estimates the cost to provide these services will be approximately $61,250.
Staff examined whether to only offer payment plans to indigent people as required by
AB 503 or to offer the option to all citation recipients. Staff recommends offering the
option to everyone because it provides operational efficiency and reduces the average
cost per payment plan. Since the cost of the service would be an estimated amount o f
$61,250 regardless of the number of participants, offering this option to the general
public would lower the average cost per payment plan and enhance the level of
customer service.
Financial Impacts and Budget Actions
Since the City has not offered payment plans to the public in the past, no historical data
is available. The contract modification to be awarded to Conduent State & Local
Solutions, Inc. is for an estimated agreement amount of $61,250. Funds for the one -
time payment are available in the FY 2017-18 budget in the Finance Department
account number S010130.589000 (expenditure control savings) for the initial setup
costs and account number 012241.555010 (Contractual Services) for ongoing costs
(mailing expenses). Future year funding is contingent on Council budget approval.
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Prepared By: David Carr, Assistant City Treasurer
Approved
Forwarded to Council
Attachments:
A. May 11, 2010 Staff Report (Weblink)
B. May 9, 2017 Staff Report (Weblink)
C. 2018 Conduent Oaks Initiative Form
CITY OF SANTA MONICA
OAKS INITI ATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as
the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s
text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection. It
prohibits a public off icial from receiving, and a person or entity from conferring, specified
personal benef its or campaign advantages from a person or entity after the official votes,
or otherwise takes official action, to award a “public benefit” to that person or entity. The
prohibition applies within and outside of the geographical boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of Santa
Monica shall provide the names of trustees, directors, partners, and officers, and names
of persons with more than a 10% equity, participation or revenue interest. An exception
exists f or persons serving in those capacities as volunteers, without compensation, for
organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the
Internal Revenue Code. However, this exception does not apply if the organization is a
political committee or controls political committees. Examples of a “public benefit” include
public contracts to provide goods or services worth more than $25,000 or a land use
approval worth more than $25,000 over a 12-month period.
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an
entity, rather than an individual person, the information includes the name of every person
who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent
interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks
Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This
inf ormation must be updated and supplied every 12 months.
Officers of
Conduent State Local Solutions, Inc.
Name Title
David A. Amoriell President
Nicholas Bevilacqua Assistant Secretary
Scott Cade Vice President
Lawrence Callahan Vice President ‐ Real Estate
Mark Cantelli Vice President
Karen Caruso Vice President
Michael Cerone Vice President
Kevin Ciaglo Assistant Secretary
Joseph Cinquemani Vice President
Allen Cohen Vice President
Michael M. Davis Senior Vice President
Thomas Dorazio Vice President
Jeffrey Friedel Senior Vice President
Carrie Glidden Assistant Secretary
Rahul Gupta Vice President
James Haddow Assistant Secretary
Sonia A. Hollies Vice President
Don Hubicki Executive Vice President
Alan R. Jolly Vice President
Zahoor A. Karamally Vice President
Carol Kline Vice President
Michael Langenohl Executive Vice President
David Lemoine Vice President
Tonya Love Assistant Secretary
Scott Morrow Assistant Secretary
Vishnu Nanan Vice President
J. Michael Peffer Secretary, Vice President
David Pierson Vice President ‐ Real Estate
John Polk Vice President
Richard J. Russin Senior Vice President, Assistant Secretary
Louis Schiavone, Jr. Vice President
Nancy A. Schnepf Vice President
Robert Starr Treasurer
Marek Tyszkiewicz Vice President
Brian Walsh Senior Vice President
Paul R. Webber IV Assistant Secretary
David Wright Senior Vice President