TITLE
Recommendation to authorize City Manager to amend Contract No. 30774 with Xerox/ACS State & Local Solutions, Inc., and extend the term date to June 30, 2013, for collection services of delinquent parking violations for a period of one year. (Citywide)
DISCUSSION
On May 13, 2008, the Department of Financial Management made the recommendation to award an agreement to Xerox/ACS State & Local Solutions, Inc., now known as Xerox/ACS, for collection services for delinquent parking violations for a three-year period, with the option of renewing for two additional one-year periods. This recommendation was based on an extensive Request for Proposals (RFP) process conducted by the Department of Financial Management and evaluated by a committee comprised of City staff from various departments. The City Council adopted Resolution No. C-27898, authorizing the City Manager to execute an agreement with ACS.
In April 2012, the City Auditor presented the Parking Citations and Collections Process Audit Report, which emphasized the need for new technology. At the direction of the City Council, the Department of Financial Management took steps to address the immediate and long-term needs to improve this collection process. In a memo dated April 27, 2012, the Director of Financial Management provided a summary of the steps taken to address these improvements (Attachment A).
The April 27, 2012 memo recommended extending the collections contract with Xerox/ACS and implementing a number of enhanced collection efforts in their extension including:
· Increased contact with delinquent customers, including telephone and mail contact;
· Reporting of delinquents to credit bureaus;
· Intercepting state tax refunds via the state established tax intercept program; and,
· Concurrently as the City places the delinquent accounts on DMV renewal registration hold, the City will assign to collections and pursue this additional process.
The proposed contract extension will incorporate these changes and include a provision for a contract termination should that be necessary when a new system is installed.
With these immediate improvements, we are confident the City's collection rate will improve. The Department of Financial Management is also working with Technology Services to prepare an RFP for the acquisition of a new parking software system.
This matter was reviewed by Deputy City Attorney Amy R. Webber on July 3, 2012 and Budget Management Officer Victoria Bell on July 9, 2012.
TIMING CONSIDERATIONS
City Council action is requested on July 24, 2012 to amend and extend Contract No. 30774 with Xerox/ACS, to ensure the City receives as much parking citation revenue as possible and there is no lapse in services.
FISCAL IMPACT
The contract currently generates about $250,000 per year net revenue to the General Fund, which is expected to increase with the changes described above. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER