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SR 11-28-2023 5D City Council Report City Council Meeting: November 28, 2023 Agenda Item: 5.D 1 of 5 To: Mayor and City Council From: David Martin, Director, Code Enforcement Subject: Approval of Professional Services Agreement with Data Ticket for Administrative Citation Processing Services Recommended Action Staff recommends that the City Council: 1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3)(Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines. 2. Award RFP #370 to Data Ticket, Inc. for administrative citation processing services for the Community Development Department. 3. Authorize the City Manager to negotiate and execute an agreement with Data Ticket, Inc., in an amount not to exceed $214,000 over a five-year period with future year funding contingent on Council budget approval. Summary Code Enforcement Division staff issue Administrative Citations for violations of the Santa Monica Municipal Code. The City currently uses Data Ticket, Inc. to provide administrative citation processing services and collection of delinquent fines. The current agreement with Data Ticket, Inc., will expire on January 25, 2024. Staff evaluated the proposals and met with both prospective vendors and determined that Data Ticket, Inc.’s proposal met the needs of the City. Staff recommend that the Council authorizes the City Manager to negotiate and execute a five-year contract for administrative citation processing services with Data Ticket, Inc. in an amount not to exceed $214,000 with future funding contingent on Council budget approval. Discussion 5.D Packet Pg. 134 2 of 5 Prior to May 2018, payments for Administrative Citations issued by the Code Enforcement staff were processed by the City’s Finance Department. Under this system, there were many challenges that staff had to address on a regular basis, including delinquencies and collections. Therefore, it was determined that it would be beneficial and more cost effective in the long term to utilize a vendor for issuance and processing of administrative citations and delinquent fine collections. This decreased the volume of fines that were unpaid and made the citation process more efficient by freeing up the officers’ time to investigate and enforce violations of the Santa Monica Municipal Code rather than pursue unpaid citations. The Santa Monica Police Department contracted with Data Ticket, Inc. in May 2017 after evaluating three firms through the competitive bidding process. On May 23, 2018, the City entered into a three-year agreement with Data Ticket, Inc., for the Code Enforcement Division resulting from the competitive process conducted by the Police department. Since 2018, Data Ticket, Inc. has been providing citation entry, online citation management for city personnel and customers, online payment options, noticing, Franchise Tax Board services, customer service, data management, reporting, and statistical capabilities. The initial contract was for three years for an amount not to exceed $40,000. On August 22, 2019, a first modification to the contract was executed to extend the term through December 31, 2022 and include additional funds, as Data Ticket, Inc. charges the City a percentage of the revenue they collect in delinquent fines. On January 24, 2023, a second modification to the contract was executed to extend the contract through January 31, 2024, to coincide with the termination date of Data Ticket’s agreement with SMPD and to provide staff with time to conduct a solicitation process to award a new agreement. The City conducted a formal RFP solicitation in August 2023 and received two responses: one from Data Ticket, Inc. and one from TBL Systems, Inc. Data Ticket, Inc., has been providing administrative citation processing services to the city since 2017. Their proposal provides two pricing options which offers the city with the ability to either pay a single fee up front for all services or pay for each instance. The Code Enforcement Division recommends continuing with the pay for each instance option as some of the services included in both options are not utilized, such as Hearing Schedule 5.D Packet Pg. 135 3 of 5 Letters and Hearing Performance. In addition, there would be no CPI increases for the duration of the contract. A response was received from TBL Systems, Inc. an Arizona corporation. TBL Systems, Inc. provides most of their services to law enforcement agencies by building web-based cloud systems tailored to each agency’s needs. This process takes about six months from project initiation through transition to operation with the first-year costs at $625,000 and over $2.6 million for the five-year period. Staff from Code Enforcement and the Police Department met with both prospective vendors who provided an overview of their platforms and the services they provide. It was determined that Data Ticket, Inc. best meets the needs of the city. 5.D Packet Pg. 136 4 of 5 VENDOR SELECTION Bidder Recommendation Best Qualified Firm Data Ticket, Inc. Evaluation Criteria Customer service, including the size and capabilities of a full-time dedicated customer call center; staffing levels and whether they are able to meet or exceed the City’s anticipated volume; comprehensive cost structure specific to services requested; full access to data collected by the vendor; ability to receive citation data in the preferred format; ability to meet the City’s reporting capabilities; references. Municipal Code SMMC 2.24.190 RFPs Received Data Ticket, Inc. TBL Systems, Inc. RFP Data Date Posted Posted On Advertise In (City Charter & SMMC Date Publicly Opened 08/14/2023 City’s Online Bidding Site Santa Monica Daily Press 09/11/2023 Justification to Award Based on the evaluation criteria above and the criteria in SMMC 2.24.190, staff recommends Data Ticket, Inc. as the best qualified firm to provide Administrative Citation Services based on previous experience working with the City, their ability to deliver quality services, their compliance with all City requirements, and fair pricing . Environmental Review The agreement is categorically exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The agreement is covered by the common sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” This agreement will allow the City to continue to contract with Data Ticket, Inc. for the processing of administrative citations and the collection of delinquent fines. Therefore, it can be seen with certainty that the agreement will not result in adverse physical impacts on the environment, and as such, is categorically exempt from CEQA. 5.D Packet Pg. 137 5 of 5 Financial Impacts and Budget Actions Staff seeks authority to approve available funding from the General Fund to award a contract with Data Ticket, Inc. for administrative citation processing and delinquent citation collection. Contract Request Current Year Request Amount Amount for Future Years FY 2023-24 Budget Department Account # Total Contract Amount $21,400 $192,600 01700005.550010 $214,000 Future year funding will be contingent upon Council budget approval. Prepared By: Cheryl Shavers, Senior Administrative Analyst Approved Forwarded to Council Attachments: A. Attachment A - Data Ticket, Inc. CSA #4449 B. Attachment B - Data Ticket, Inc. CSA #4449 First Modification C. Attachment C - Data Ticket, Inc. CSA #4449 Second Modification D. Data Ticket, Inc. OAKS FY 23-24 5.D Packet Pg. 138 5.D.a Packet Pg. 139 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation 5.D.a Packet Pg. 140 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation 5.D.a Packet Pg. 141 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation 5.D.a Packet Pg. 142 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation 5.D.a Packet Pg. 143 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation 5.D.a Packet Pg. 144 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation 5.D.a Packet Pg. 145 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation 5.D.a Packet Pg. 146 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation 5.D.a Packet Pg. 147 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation 5.D.a Packet Pg. 148 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation 5.D.a Packet Pg. 149 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation 5.D.a Packet Pg. 150 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation 5.D.a Packet Pg. 151 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation 5.D.a Packet Pg. 152 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation 5.D.a Packet Pg. 153 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation 5.D.a Packet Pg. 154 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation 5.D.a Packet Pg. 155 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation 5.D.a Packet Pg. 156 Attachment: Attachment A - Data Ticket, Inc. CSA #4449 [Revision 1] (5998 : Approval of Agreement with Data Ticket for Administrative Citation DocuSign Envelope ID: E3FBAD33-FE9A-47DD-878B-CC168BDF194A 5.D.b Packet Pg. 157 Attachment: Attachment B - Data Ticket, Inc. CSA #4449 First Modification (5998 : Approval of Agreement with Data Ticket for Administrative DocuSign Envelope ID: E3FBAD33-FE9A-47DD-878B-CC168BDF194A 5.D.b Packet Pg. 158 Attachment: Attachment B - Data Ticket, Inc. CSA #4449 First Modification (5998 : Approval of Agreement with Data Ticket for Administrative DocuSign Envelope ID: E3FBAD33-FE9A-47DD-878B-CC168BDF194A 5.D.b Packet Pg. 159 Attachment: Attachment B - Data Ticket, Inc. CSA #4449 First Modification (5998 : Approval of Agreement with Data Ticket for Administrative DocuSign Envelope ID: E3FBAD33-FE9A-47DD-878B-CC168BDF194A 5.D.b Packet Pg. 160 Attachment: Attachment B - Data Ticket, Inc. CSA #4449 First Modification (5998 : Approval of Agreement with Data Ticket for Administrative 1 SECOND MODIFICATION OF CONTRACTUAL SERVICES AGREEMENT NO. 4449 This Second Modification of Contractual Services Agreement No. 4449 (“Second Modification”), entered into as of _________________(“Execution Date”), by and be- tween the City of Santa Monica, a municipal corporation (“City”), and DATA TICKET, INC. (“DATA TICKET, INC.”) is made with reference to the following: RECITALS A. On or about May 23, 2018, City and DATA TICKET, INC. entered into Contrac- tual Services Agreement No. 4449 (the “Original Agreement”) for the processing of administrative citations and the collection of delinquent fines. B. On or about August 22, 2019, City and DATA TICKET, INC. entered into the First Modification of Agreement Number 4449 (“First Modification”) to extend the contract term and to increase the contract price. C. City and DATA TICKET, INC. desire to modify the Original Agreement to ex- tend the contract term. TERMS AND CONDITIONS Now, therefore, the undersigned parties do hereby mutually agree to modify the Origi- nal Agreement as follows: 1. Section 1 of the Original Agreement entitled “Term” shall be deleted in its entirety and replaced with the following: Term. This Agreement begins on the Execution Date and terminates on January 31, 2024, unless sooner terminated in accordance with Sec- tion 14 or extended by the parties in writing. /// /// DocuSign Envelope ID: 3DA699FE-D3CC-4598-A7F8-9AD3A16798EC 1/24/2023 5.D.c Packet Pg. 161 Attachment: Attachment C - Data Ticket, Inc. CSA #4449 Second Modification (5998 : Approval of Agreement with Data Ticket for Administrative 2 2. Execution in Counterparts. This Second Modification may be executed in coun- terparts with the same effect as if both parties hereto had executed the same docu- ment. All counterparts shall be construed together and shall constitute a single modification. Any signature to this Second Modification transmitted electroni- cally through DocuSign or PDF shall be deemed an original signature and be bind- ing upon the parties hereto. 3. Except as expressly modified by this Second Modification, all other terms and con- ditions of the Original Agreement shall be and remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Second Modification as of the date and year first written above. ATTEST: ______________________________ NISE AgNDERSON-WARREN City Clerk APPROVED AS TO FORM: ______________________________ LANE DILG City Attorney CITY OF SANTA MONICA, a municipal corporation By: ______________________________ RICK COLE City Manager DATA TICKET, INC. Corporation #VENDOR By: _______________________________ DocuSign Envelope ID: 3DA699FE-D3CC-4598-A7F8-9AD3A16798EC 1/20/2023 City Attorney DOUGLAS SLOAN Chief Operating Officer Brook Westcott Data Ticket, Inc. 1/20/2023 1/24/2023 City Manager David White 1/25/2023 Denise Anderson-Warren City Clerk 5.D.c Packet Pg. 162 Attachment: Attachment C - Data Ticket, Inc. CSA #4449 Second Modification (5998 : Approval of Agreement with Data Ticket for Administrative 5.D.d Packet Pg. 163 Attachment: Data Ticket, Inc. OAKS FY 23-24 (5998 : Approval of Agreement with Data Ticket for Administrative Citation Processing Services) 5.D.d Packet Pg. 164 Attachment: Data Ticket, Inc. OAKS FY 23-24 (5998 : Approval of Agreement with Data Ticket for Administrative Citation Processing Services) 5.D.d Packet Pg. 165 Attachment: Data Ticket, Inc. OAKS FY 23-24 (5998 : Approval of Agreement with Data Ticket for Administrative Citation Processing Services) 5.D.d Packet Pg. 166 Attachment: Data Ticket, Inc. OAKS FY 23-24 (5998 : Approval of Agreement with Data Ticket for Administrative Citation Processing Services)