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HomeMy WebLinkAboutAGMT - Turbo Data Systems (Parking Citation Processing) VII AGREEMENT FOR PROCESSING -LC -6e-e-p6 - OF PARKING CITATIONS This Agreement is entered into by and between Turbo Data Systems, Inc. (TDS), a California Corporation, and the City of Seal Beach, (hereinafter "Customer "). Whereas, TDS and the Customer desire to enter into an agreement whereby TDS will process parking citations for the Customer pursuant to the terms and conditions set forth herein. In consideration of the mutual covenants, conditions, representations and warranties contained herein the parties hereby agree as follows: 1. PURPOSE. The purpose of this Agreement is for TDS to process parking citations for the Customer in a timely manner. 2. SCOPE OF SERVICES. When and as directed by the Customer, TDS shall perform the following services in processing all parking citations: A. Process all parking citations delivered to TDS until such time as TDS is 1) notified of their final disposition or 2) twenty -four (24) months has passed after their date of issuance. B. Provide monthly reports indicating the status of all citations, such reports to be delivered to the Customer (or other appropriate destination) no later than the thirtieth (30th) day of the following month. C. Attempt to obtain names and addresses of registered owners of cited vehicles for those citations that have not been cleared prior to their delinquent date. D. Print the required Notice of Violation and mail to each registered owner whose name has been retrieved within thirty (30) days after the citation has been issued. The notice date shall be extended whenever there is an unusual delay in delivery of information or citations to TDS. E. Transmit a Notice of Delinquency to the California DMV for citations issued in California to vehicles with California license plates after a Notice of Violation has been mailed to the registered owner and TDS has not received notification that the citation has been cleared. This Notice of Delinquency will be transmitted to the California DMV within thirty (30) days after the date specified by the Customer to be the DMV Date. F. Transmit Notice to the California DMV that a Notice of Delinquency has been cleared within thirty (30) days after TDS has received notification of clearance. G. Except as provided in Exhibit "B" which is attached hereto and incorporated herein by this reference, Customer shall be responsible for delivering all citations, payment information and records of disposition to TDS's place of business at the address set forth in paragraph 18. H. Except as provided in Exhibit "C" which is attached hereto and incorporated herein by this reference, TDS shall not be 1 e A AGREEMENT FOR PROCESSING OF PARKING CITATIONS responsible for collecting or receiving payments on violations or citations. I. TDS shall process citations on vehicles not registered in California by entering the citation information into the system database and reporting them along with all other citations on the database with the standard reports. TDS shall have no further obligation to process citations on non - California registered vehicles except as provided in Exhibit "D" which is attached hereto and incorporated herein by this reference. TDS shall be entitled to full citation payment after it has entered the citation information into the system database regardless of whether the Customer and TDS enter into Exhibit "D J. TDS shall process payments by credit card pursuant to the procedures set forth in Exhibit "E" which is attached hereto and incorporated herein by this reference. K. TDS shall process contested parking citations pursuant to the procedures set forth in Exhibit "F" which is attached hereto and incorporated herein by this reference. L. TDS shall allow online inquiry access to the parking citation database pursuant to the procedures set forth in Exhibit "G" which is attached hereto and incorporated herein by this reference. 3. TERM. This agreement shall become effective for a period of one year, provided however, the agreement shall automatically be extended annually for one year periods unless either party gives the other party sixty (60) days notice of its intent to terminate the agreement, starting February 1, 2003. This agreement may be terminated by either party upon sixty (60) days written notice. 4. CONSIDERATION. In consideration for services performed by TDS as provided in this agreement, Customer shall pay TDS pursuant to the teens set forth in Exhibit "A" which is attached hereto and incorporated herein by this reference. 5. PAYMENT OF FEES. Charges determined on the basis set forth in Exhibit "A" shall be billed on a monthly basis in arrears and payment therefore shall be made within fifteen (15) days after submission of each separate invoice. 6. ACCOUNTING RECORDS. Records of the citations processed by TDS shall be available for examination by the Customer or its authorized representative(s) at a time agreeable to the Customer and TDS within one week following a request by the Customer to examine such records. Failure by TDS to permit such examination within one (1) week of a request shall permit the Customer to withhold all further payments until such examination is completed unless an extension of time for examination is authorized by the Customer in writing. 7. TIME OF PERFORMANCE. Time is of the essence, and TDS shall perform the services required by this agreement in an expeditious and timely manner so as not to unreasonably delay the purpose of this agreement as set forth in Sections 1 and 2. 2 • AGREEMENT FOR PROCESSING OF PARKING CITATIONS 8. INDEPENDENT CONTRACTOR. At all times during the term of this agreement, TDS shall be an independent contractor and shall not be an employee of the Customer. The Customer shall have the right to control TDS only insofar as the results of TDS's services rendered pursuant to this agreement; however, Customer shall not have the right to control the means by which TDS accomplishes the services rendered pursuant to this agreement. 9. FACILITIES AND EQUIPMENT. TDS shall, at its own cost and expense, provide all facilities and equipment that- may be required for performance of the services required by this agreement. 10. INDEMNIFICATION BY TURBO DATA SYSTEMS, INC. TDS is skilled in the professional calling necessary to perform the services and duties agreed to be performed by TDS under this agreement, and Customer, not being skilled in such matters, relies upon the skill and knowledge of TDS to perform said services and duties in the most skillful manner. Therefore, TDS agrees to indemnify, hold harmless and defend every officer and employee of Customer, from any and all liability or financial loss resulting from any suits, claims, losses or actions brought by any person or persons and from all costs and expenses of litigation brought against the Customer, its officers and employees, by reason of injury to any person or persons including but not limited to officers and employees of TDS or damage, destruction or loss of property of any kind whatsoever and to whomsoever it may belong, including but not limited to that act of TDS resulting directly or indirectly from any act or omission by TDS or any person employed by TDS in the performance of this agreement. 11. LIABILITY LIMITATION AND INDEMNIFICATION BY CUSTOMER. TDS shall use due care in processing work of the Customer but TDS shall be responsible only to the extent of correcting any errors that are due to the equipment or personnel of TDS; such errors shall be corrected by TDS at no additional charge to the Customer. TDS shall be entitled to reimbursement from the Customer for any expenses incurred by TDS for the correction of any erroneous information provided by the Customer and TDS shall not be responsible for Customers' losses and expenses resulting from erroneous source materials provided by the Customer. Neither party shall be liable to the other for any indirect or consequential losses or damages resulting from any errors within the scope of this. Section 11. The Customer shall indemnify and hold harmless TDS and its officers, directors, shareholders, employees and representatives from any and all claims,_ demands, liability, damages and judgments arising out of erroneous information provided by the customer. 12. FAIR EMPLOYMENT PRACTICES /EQUAL OPPORTUNITY ACTS. In the performance of this agreement, TDS shall comply with all applicable provisions of the California Fair Employment Practices Act (California Labor Code Sections (410 et seq.) and the applicable equal employment provisions of the Civil Rights Act of 1964 (42 U.S.C. 200e 217), whichever is more restrictive. 13. AGENCY. Except as Customer may specify in writing TDS shall have no authority, expressed or implied, to act on behalf of the Customer in any capacity whatsoever as an agent. TDS shall have no authority, expressed or implied, pursuant to this agreement to bind Customer to any 3 • •_ AGREEMENT FOR PROCESSING OF PARKING CITATIONS obligation whatsoever. 14. CHANGES IN -LAW. Should there be any changes in the law applicable to the processing of parking citations which would require material changes in the method of the processing as contemplated in this agreement, or materially reduce or eliminate the amount of revenue received by the Customer from parking citations, this agreement shall terminate on the date such law becomes effective, provided either party gives sixty (60) days notice of termination. Any changes in the processing of parking violations as a result of changes in the law or DMV regulations affecting such violations, which do not materially add to the cost of processing such citations by TDS shall be implemented by TDS at the request of the Customer, provided however, that the cost of such implementation does not exceed the fee paid to TDS for performing such services. If any such change results in the cost of processing citations exceeding the amounts provided for in Section 4 and the Customer declines to amend this agreement to provide for the payment of such increased costs, the agreement shall terminate as of the effective date of the change in the law or regulations. 15. OWNERSHIP. Customer acknowledges that the software and software programs used by the Customer or used for the Customer's benefit which were developed by TDS are the sole property of TDS and the Customer obtains no right or interest in the software by virtue of this agreement. 16. FORCE MAJEURE. Neither party shall be responsible for delays or failure in performance resulting from acts beyond the control of such parties. Such acts shall include, but are not limited to, Acts of God, strikes, riots, acts of war, epidemics, fire, communication line failure, earthquakes or other disasters. 17. TERMINATION. This agreement may be terminated by either party upon sixty (60) days written notice. 18. NOTICE. Whenever it shall be necessary for either party to serve notice on the other respecting this agreement, such notice shall be served by certified mail addressed to: TDS: Turbo Data Systems, Inc. 614 West Katella Avenue Orange, California 92867 Roberta J. Rosen President CUSTOMER: City of Seal Beach 211 Eighth Street Seal Beach, CA 90740 unless and until different addresses may be furnished in writing by either party to the other, and such notice shall be deemed to have been served within seventy -two (72) hours after the same has been deposited in the United States Post Office by certified mail. This shall be valid and sufficient service of notice for all purposes. 19. EXTENT OF AGREEMENT. This agreement represents the entire and integrated agreement between Customer and TDS and supersedes any and all 4 • AGREEMENT FOR PROCESSING OF PARKING CITATIONS prior negotiations, representations or agreements, either written or oral. This agreement may be amended only by written instrument signed by both Customer and TDS. This agreement may only be assigned with the express written consent of each of the parties hereto. In the event that any provision hereof is deemed to be illegal or unenforceable, such a determination shall not affect the validity or enforceability of the remaining provisions hereof, all of which remain in full force and effect. 20. LITIGATION COSTS. If any legal action or any other proceeding is brought to enforce the terms of this agreement, or because of an alleged dispute, breach, or misrepresentation in the connection with any of the provisions of this agreement, the successful or prevailing party or parties shall be entitled to recover their reasonable attorneys' fees and other costs incurred in that action or proceeding, including the costs of appeal in addition to any other relief to which it or they may be entitled. 22.. EFFECTIVE DATE OF THIS AGREEMENT. This agreement, made in duplicate, shall be effective from and after February 1, 2003. Executed on thisok - day of , 2003. CITY OF S /BE H •3.IFORNIA By: AV Jod Bahorski Cit Manager -= - • SYS _u Roberta J. Ro- en President 5 • 21. MANDATORY INSURANCE. TDS shall maintain the following insurance coverage throughout the term of this Agreement, and upon request TDS shall show CITY evidence of such coverage, which may include visual inspection of all policies, copies of declarations page, endorsements signed by an authorized representative of the underwriting company, or certificates of insurance. Insurance coverage shall be provided in the following form: 1. Insurance Services Office Commercial General Liability coverage occurrence form number CG 00 01 11 85 or 88. 2. Insurance Services Office form number CA 00 01 06 92 including symbol 1 (any auto) covering Automobile Liability. 3. Workers Compensation insurance as required by the State of California and Employer's Liability insurance. A. MINIMUM LIMITS OF INSURANCE. TDS shall maintain insurance coverage limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury, and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project or the general aggregate limit shall be twice the required occurrence limit, and shall contain specified language creating a duty to defend against any suit seeking damages. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. B. DEDUCTIBLES AND SELF - INSURED RETENTIONS. Any deductibles and /or self- insured retentions must be declared and approved by the CITY. At the option of the CITY, either: the insurer shall reduce or eliminate such deductibles or self - insured retentions as respects the CITY, its officers, officials, employees and volunteers; or TDS shall provide a financial guarantee satisfactory to the CITY guaranteeing payment of losses and related investigations, claim administration and defense expenses. C. VERIFICATION OF COVERAGE. TDS shall furnish the CITY with evidence of the insurance required by this Section, satisfactory to CITY, consisting of original certificates of insurance and amendatory endorsements, and an additional insured endorsement using Insurance Service Office form CG 20 10 11 85. The endorsements should be on forms provided by the CITY or on other than the CITY's forms or a separate owners policy, provided those forms or policies are approved by the CITY, and amended to conform to the CITY's requirements. All certificates and endorsements are to be received and approved by the CITY before work commences. The CITY reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time. TDS agrees to provide complete copies of policies to CITY upon request. Section 21 Ac - wledged: City: I' Turbo Data: . . AGREEMENT FOR PROCESSING OF PARKING CITATIONS EXHIBIT "A" CONSIDERATION Customer shall pay TDS for the listed services at the amounts shown.: Processing fee per citation $1.16 • Included: TDS entry of citations and citation dispositions (bounced checks, payments, extensions, etc. ) , notice forms, printing and postage, database maintenance, daily system backups, DMV interface (r/o retrieval and placing and releasing registration holds) , weekly/monthly reporting, toll-free telephone number (for public access) , Interactive Voice Response System (IVRS) , Customer Service Representatives (8 :00 am - 5:00 pm, Monday through Friday, excluding holidays) , customized recorded telephone information, ongoing Client support, weekly delivery via courier of reports, correspondence and other documentation, daily pick up of payments and other documents from a TDS provided P. 0. Box, • daily payment processing, daily bank deposits, Internet-based online inquiry access to the City's database and documentation and training for successful use of TDS provided online system: Due to the fact that fees for processing services are determined by unit and that there are certain fixed costs required to perform these services, regardless of volume, the minimum monthly invoice amount for citation processing fees shall be $500 .00 . Final Notice Processing $1. 10 per notice mailed DMV Hold Letters $1.24 per letter mailed Out of State Processing 35% of amount collected (plus fees for credit card service if paid by credit card) Credit Card Collection Service by Phone 3% of amount collected And Internet + Actual merchant Fee (Fee is currently 2.7% and is subject to chance.) pticket.com Internet Setup Fee (one-time) $300 Administrative Adjudication Processing $2 . 18 per letter mailed Telecom Equipment use (PC. keyboard, monitor) $20 . 00 per month If postal rates increase during the term of this agreement, the per item fee(s) to TDS shall be raised immediately to offset the effect of the postal race increase. For each additional year that this agreement continues due to the failure of either party to terminate this agreement pursuant to the provisions of paragraph 3, the costs per item set forth above shall be adjusted as follows: The United States Department of Labor's Bureau of Labor Statistics Consumer Price Index for all Urban Consumers, Los Angeles - Riverside - Orange County, California: All items (Base Year 1982- 84=100) ("Index") which is published for the date two months prior to the start date of each contract year ("Adjustment Index") , shall be compared with the Index published from the date two months prior to the start date of the previous contract year ("Beginning Index") . If the Adjustment Index has increased over the Beginning Index, the fees payable by the Customer during each contract year subsequent to the first contract year shall be determined by multiplying the processing fees set forth above by a fraction, the numerator of which is the Adjustment Index minus the Beginning Index and the denominator of which is the Beginning Index. • In no event shall the fee charged the Customer be less than the amount set forth above. In no event shall the fee charged to the Customer increase more than ten percent (10%) per contract year. 6 • AGREEMENT FOR PROCESSING OF PARKING CITATIONS EXHIBIT "B" COURIER SERVICE Courier Service will be provided once per week on a mutually agreeable schedule for the pickup and delivery of source documents and reports . Payment for this service is included in the rates outlined in Exhibit A, Processing Fee per Citation. • • • 7 AGREEMENT FOR PROCESSING OF PARKING CITATIONS EXHIBIT "C" COLLECTION SERVICE/PAYMENT PROCESSING TDS will provide the following collection and payment processing services for Customer; • Provide P. 0. Box where payments are mailed ▪ Courier pickup from P. 0. Box daily ▪ Open all mail ▪ Verify payment amounts and record on computer system within 2 business days (48 hours) ▪ Use postmark date to establish payment date • Respond to reasonable non-judicial inquiries by phone or mail • Return questionable mail to Customer for decision . Make bank deposits to Customer bank account • Verify amounts deposited, by citation number ▪ Provide toll-free 800 number for citizen inquiries • Provide weekly reports for bank statement reconciliation • Provide monthly Paid Citation Distribution Report Payment for this service is included in the rates outlined in Exhibit A, Processing Fee per Citation. • a S AGREEMENT FOR PROCESSING OF PARKING CITATIONS EXHIBIT "D" OUT OF STATE PROCESSING SERVICE Citations issued to out-of-state license plates will be entered into the system database as all other citations . If and when they become delinquent, requests for registered owner information will be sent to the appropriate out-of-state DMV. The Notice of Intent will be generated to the registered owner and the bail amount requested. Return payments will be made to the same address as all other payments . TDS will incur all costs for this processing, including out-of-state DMV charges . TDS will receive payment from Customer based on the amount of revenues collected from out-of-state citations after the Notice of Intent has been issued. This amount will be billed monthly for the prior months ' receipts (as determined from our database and/or reports) . Payment percentage for this service is included in the rates outlined in Exhibit A, Out of State Processing. • 9 • • AGREEMENT FOR PROCESSING OF PARKING CITATIONS EXHIBIT "E" CREDIT CARD COLLECTION SERVICE BY PHONE AND INTERNET Through the Interactive Voice Response (IVR) System that all callers go through when they call our Toll Free numbers, and through the pticket .com web site,we are able to accept credit card payments via Visa and MasterCard. As callers and internet customers inquire about their citations, either by citation or license number, they are informed of the option to pay either one or all of their citations by credit card. If they choose to make a payment, the system authorizes each transaction while the caller is on the phone or online . If the charge is declined, they are informed of that . If the charge is accepted, they are given an authorization number or email confirmation to confirm their charge. The IVR system and the pticket .com web payment system both automatically update the citation database with the payment immediately, so that if the caller were to call back in (or you were to do an inquiry) , the citations are reported as paid. .Credit Card payments are differentiated on our inquiry system by showing a "Cl" in the operator indicator field. Credit Card monies are paid to a Turbo Data Systems bank account and a check is written to each customer on a monthly basis for the total monies collected for that customer. Each customer receives their own "merchant statement" from the bank showing the total dollars that were charged for the month. Turbo Data provides a "credit card postlog" which shows in detail which citations were paid and for what amount, along with the deposit slip from the bank showing that these funds have been deposited in the customers account . The merchant statement, the credit card postlog and the deposit slip all balance to ensure each customer that all payments received have been credited to them. Should there be any charge backs to your merchant account, the funds are pulled directly from the Turbo Data master account and the citation will be reactivated, much like a bounced check. The violator will be sent a notice and will then proceed to DMV hold. TDS will provide all services regarding reconciliation, reactivation of charge backs, etc . Customer will not be involved in the daily processing. Payment for this service is included in the rates outlined in Exhibit A, Credit Card Processing Service by Phone . There is a $300 one-time setup charge for the use of pticket.com. 10 • • AGREEMENT FOR PROCESSING OF PARKING CITATIONS EXHIBIT "F" ADMINISTRATIVE ADJUDICATION PROCESSING SERVICE TDS will provide Administrative Adjudication Processing Services as follows : The key elements of the this service includes processing of requests for contesting citations, allowing for agency processing of administrative reviews, tracking and monitoring all relevant dates on an automated system, mailing timely notification to respondents regarding the status of their claims, and scheduling of administrative hearings . All Administrative Adjudication information entered into the system is done in real time and is linked to existing database information to ensure proper tracking of relevant dates, mailing names and addresses and other pertinent information. Contesting by phone - TDS will respond to questions on the toll free number regarding the contesting of citations by explaining the adjudication procedures defined by law. Respondents wishing to contest will be told to either mail a letter indicating their reasons for contesting the citation or to fill out a "Request for Administrative Review Form" to contest the citation. - Contesting by mail - TDS will open all mail received and gather all requests to contest together for each agency. These requests will be sorted by postmark date. Only citations meeting the pre-defined date - criteria (postmarked within 21 days after issuance or 14 days after the mailing of the delinquent notice) will be forwarded to each agency for an administrative review. Each citation sent to the agency for review will have an "agency hold" placed on it so that no further processing occurs during the contesting process . Those requests not meeting the timelines for an administrative review will not be processed further in the administrative adjudication process . However, a letter will be mailed to the respondent indicating their request for an administrative review was sent late. Contesting in person - As requests for administrative reviews are received at the City, they will be forwarded to TDS daily via TDS courier. TDS will gather all requests to contest together for each agency. These requests will be sorted by the date they were received at the City. Only citations meeting the pre-defined date criteria (received at the City within 21 days after issuance or 14 days after the mailing of the delinquent notice) will be forwarded to each agency for • an administrative review. Each citation sent to the agency for review will have an "agency hold" placed on it so that no further processing occurs during the contesting process . Those requests not meeting the timelines for an administrative review will not be processed further in the administrative adjudication process . However, a letter will be mailed to the respondent indicating their request for an administrative review was sent late . Administrative Review Request for Decision • All correspondence regarding the contesting of citations will be delivered to the agency on a predetermined schedule. The agency will 11 • • • AGREEMENT FOR PROCESSING OF PARKING CITATIONS perform the administrative reviews . The outcome of these administrative reviews will be communicated to TDS on the "Administrative Review Disposition Form" . The Form contains boxes for each citation where the reviewer can enter either a Liable Reason Code (defined by each agency, allowing specific messages to be returned to the respondent) or a Not Liable response . TDS will then mail a letter, the "Result of Administrative Review Letter" , to each respondent telling them of the disposition of their administrative review with the specific comments from the reviewer included in the text . The letter will also indicate to the respondent their right to further contest their citation by requesting an administrative hearing, either in writing or in person. Directions are clearly defined on each letter for doing so. The respondent must then send in their fine along with either a written statement from which to adjudicate their claim or a request for a hearing date by choosing an in-person hearing at a City designated location. Each letter, will include a non-postpaid return envelope to encourage payment of the fine. Each respondent will have 21 days from the date of the mailing of the "Result of Administrative Review Letter" to mail in his or her payment and request an administrative hearing. Scheduling of Administrative Hearings All correspondence relating to the Administrative Adjudication Process will be sorted by postmark date. Fines received by mail with a request for a hearing will be deposited into the agency' s bank account immediately as any other payment . Partial payments will be treated as usual with a delinquent notice going out requesting the additional payment . If a payment is received and it is past the 21-day time limit according to the postmark, the payment will be processed as a partial payment . A letter will then be mailed to the respondent indicating the remaining amount due and the fact that they requested a hearing but were too late. Hearings In-Person - Respondents requesting a hearing in-person will be mailed a hearing date and location on the "Hearing Date Notification Letter" . The dates and times of hearings will be coordinated with each City' s liaison to ensure space is available for the hearing examiner to conduct hearings prior to scheduling. All hearings will be scheduled at least two weeks in advance. Hearings by Written Declaration - Written hearing statements will be forwarded to the Hearing Examiner to be decided upon on a pre-determined schedule. Administrative Hearings Results of the administrative hearing will be communicated back to TDS and then the result will be mailed to the respondent in the "Result of Administrative Hearing Letter" . Respondents not appearing at their scheduled date and location will have their citation closed (as payment was already received) . A "failure to appear" letter will be generated and mailed to the person requesting the hearing. 12 AGREEMENT FOR PROCESSING OF PARKING CITATIONS Results of Administrative Hearings Citations that are dismissed by the hearing examiner will have a "Result of Administrative Hearing Letter" prepared to be sent to the respondent . These letters will indicate the amount of the scheduled refund and will be given to each agency so that they may prepare a refund check for each respondent . Each agency will then be responsible for mailing the actual refund with the letter. Citations that are not dismissed by the hearing examiner will have a "Result of Administrative Hearing Letter" prepared to be sent to the respondent. These letters will be prepared and mailed by TDS. All recipients of a letter indicating they were found" liable will also be advised of their rights to further contest and the timeframe in which to do so. Reports are generated each month indicating any remaining Administrative Reviews or Hearings that have no result. Payment for this service is included in the rates outlined in Exhibit A, Administrative Adjudication Processing Service. 13 • • AGREEMENT FOR PROCESSING OF PARKING CITATIONS EXHIBIT "G" ONLINE INQUIRY ACCESS • TDS will provide a real-time secured high-speed connection to TDS ' citation database through the Customers ' Internet connection. Customer must meet software, hardware and Internet connection requirements . TDS will install a small client-side application on the Customers PC that will enable the Customer to click and connect directly to the TDS inquiry system. — Payment for this service is included in the rates outlined in Exhibit A, Processing Fee per Citation. 14 •