1983-171-Authorizing Execution Of Agreement For The Use Of Datacom Systems CorporationRESOLUTION NO. 1983 -171
RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT FOR THE USE OF
DATACOM SYSTEMS CORPORATION
The Town Council of Los Gatos hereby RESOLVES that
the Town Manager is authorized to execute the attached agreement
for the Use of the DATACOM SYSTEMS CORPORATION on behalf of the
Town.
PASSED
AND
ADOPTED
AT
A REGULAR
MEETING
OF THE
TOWN COUNCIL OF
THE
TOWN OF
LOS
GATOS THIS
6th day of
September,
1983, by the following votes:
AYES: COUNCILMEMBERS Terrence J. Daily, Thomas J.
Ferrito, Marlyn J. Rasmussen and Brent N.
Ventura
NOES: COUNCILMEMBERS None
ABSTAIN: COUNCILMEMBERS None
ABSENT: COUNCILMEMBERS Joanne Benjamin
SIGNED:j%
Mayor of the Town of Los Gatos
ATTEST:
Cl er of the Town of Los atos -
AGREEMENT FOR PROCESSING PARKING CITATIONS
THIS AGREEMENT IS MADE BY AND BETWEEN DATACOM SYSTEMS CORPORATION,
hereinafter referred to as "Contractor," and TOWN OF LOS GATOS
hereinafter referred to as "Agency," and entered into this 6th day
of September , 1983.
The parties intend by this agreement to provide for the processing
of fines, bail and forfeiture thereof, in connection with the issuance of
citations for illegal parking pursuant to the laws of the State of
California and ordinances of the
ARTICLE .-I — Processing
1.1 Referral and Reconciliation. Contractor shall receive and
Process parking citations which Agency delivers to it. Contractor will
provide a daily reconciliation of the number of citations delivered by
Agency. The Agency will be notified of discrepancies in citation counts
delivered for processing.
1.2- Determination of Processable Citations. Contractor shall
screen the parking citations referred to it by Agency to determine if the
citation is processable. If the citation is determined by Contractor to
be unprocessable (e.g., essential processing information is missing),
Contractor shall return the citation to Agency within seven (7) days for
clarification. Contractor will be paid the contractual rate hereinafter
provided, for citations returned to the Agency as unprocessable.
1.3 Collection and Deposit of Funds. Contractor shall collect and
deposit all monies received for the payment of parking citation fines and
fees in a trust account with a local financial institution. Contractor
will receive payments from vehicle owners through the mails and in
person, and from Agencies forwarding payments collected by them from
registered owners. Contractor shall be open a minimum of four hours per
day to accept walk in payments. The four hour period will be determined
by Contractor and will be based on peak payment demand periods.
1.4 Disbursert,nt of funds. Contractor snall disburse monthly, all
monies on deposit from the payment of parking citation fines and fees to
the Agency, including any interest income earned by monies on deposit due
Agency. Monies collected according to Section 4.5 of this agreement will
be disbursed net of Contractor fees. Disbursement shall be made within
the first ten working days of each month.
1.5 Identification of Registered Vehicle Owners. Contractor shall
exert best efforts and attempt to obtain the name and address of the
registered vehicle owner from the California State Department of Motor
Vehicles or from the appropriate out —of —state Department of Motor
Vehicles for each vehicle for which a parking citation has been issued
but payment has not been received within the required time period.
Contractor shall follow all procedures specified by the California State
Department of Motor Vehicles, and be consistent with the California
Vehicle Code when identifying registered vehicle owners.
1.6 Verification of Ownership. Contractor shall insure that
adequate identification of registered vehicle owners and verification
procedures are utilized which take into consideration, at the very least,
the following factors: Issuance of new license plates, address changes,
license plate transfers to other vehicles, name changes, and the validity
Of plates and registration during specific time periods applicable to
individual cases.
1.7 Delinquency Notices. Contractor shall generate 'land mail
(presorted, first —class postage, and within a reasonable period of time)
delinquency notices to all identified registered owners of vehicles who
fail to pay their parking citation fines or to post bail in the required
manner. The delinquency notice form must comply with the requirements of
State law. The mailed notice will include all information required by
the California Vehicle Code, including but not limited to the following:
1. The parking citation issuance date and number;
2. The consequences of nonpayment (i.e., a hold on the vehicle
registration and the imposition of penalties, or issuance of a
possible warrant for their arrest); and
3. The amount of fines and fees due and payable.
2
1.8 Registration Holds, The Contractor will provide the system and
Procedures and will interface with the California State Department of
Motor Vehicles to place a hold on vehicle registrations having unpaid
parking fines and fees due against those vehcles in accordance with the
California Vehicle Code and any other applicable State and local laws.
The holds will be placed within a reasonable period of time after the
issuance of a delinquency notice.
1.9 Removal of Registration Holds. Contractor will provide the
system and procedures and will interface with the California State
Department of Motor Vehicles to remove registration holds when a
registered vehicle owner satisfies the entire amount of parking citation
fines, penalties, and fees due against the vehicle and establishes such
payment to the satisfaction of Contractor.
1.10 Contested Citations. In the event a registered vehicle owner
disputes the liability for the outstanding parking citation, Contractor
shall advise the registered vehicle owner of his /her right to request a
court appearance. The Contractor will coordinate a court appearance for
the registered vehicle owner to the court. All contested citations will
be forwarded to the Santa Clara County Municipal Court within a
reasonable time period after notification by the court.
1.11 Citations Disposed of by Court. The Contractor may be
required, as a result of court action, to reduce or cancel, on an
individual basis, parking citations which have been referred to it.
Contractor shall be paid the contractual rate hereinafter provided for
processing the citation regardless of the outcome of court action.
Contractor shall maintain records indicating the date notice received and
any reduction or cancellations of parking citations as a result of court
action. Parking citations which are dismissed as a result of court
action, will have the dismissal processed by the Contractor within two
working days after receipt from the Santa Clara County Municipal Court.
1.12 Suspension of Processing, Contractor shall suspend processing
any citation referred to it for processing upon written notice to do so
by the Agency. Contractor Will return any citation requested to Agency.
Contractor shall maintain records indicating any suspension of a citation
3
as a result of Agency's request. Contractor shall be paid. the
contractual rate hereinafter provided for processing the citations
suspended by the Agency.
1.13 Parking Citation System Master File Update. Contractor will
update the parking citation master file for new citations, payments,
reductions, cancellations, dismissals and any other pertinent data a
minimum of three times a week.
1.14 On -Line Terminal Inquiry. Contractor will provide on -line
terminal inquiry capability by September 15, 1983, Contractor will
provide the computer terminal, related equipment and technical and
administrative support to Agency which desires to use this capability.
ARTICLE II - General
2.1 Public inquiries. For phone calls and correspondence, the
contractor will process matters of a nonjudicial nature; matters of a
judicial nature will be referred to the appropriate agency for
determination. For scheduled court hearings, the Contractor will
coordinate the necessary information with the court.
The ability to deal with Spanish- speaking individuals will be
provided by the Contractor. The Contractor will provide a reasonable
number of phone lines to accommodate public inquiries.
i
2.2 Contractor Limitations. Contractor may not do any of the
following without Agency's prior approval, in writing:
a) Take any legal action;
b) Threaten any legal action; or
c) Make any communication, oral or written, regarding potential
legal action:
2.3 Use of Approved Forms. All forms, delinquency notices, and
correspondence sent by the Contractor must conform to State and local
law, and be approved by the Agency.
2.4 Books and Records. Contractor shall maintain separate books
4
and records within the County of Santa Clara for parking citations issued
within the Agency's jurisdiction and referred to Contractor for
processing. Such books, records, and computer processing methods and
Procedures shall be available for inspection and audit by Agency at all
reasonable times without prior notice to Contractor. Citations, files,
books, records, and other documents generated by Contractor in the
Performance of this agreement shall be deemed property of the Agency, and
will be returned to the Agency at the termination of this agreement.
A semi— annual reconciliation of the Contractor's trust account shall
be provided to Agency. The reconciliation will be provided within forty
five days after the end of each semi — annual period.
2.5 Contractor Files. Contractor shall maintain files on each
parking citation referred to it for processing under this agreement.
Such files will contain records of payments, collection efforts,
dispositions, and any other pertinent information required to provide a
reasonable audit trail.
2.6 Offices of Contractor. Contractor shall establish and maintain
throughout the period of this agreement and any extensions thereof, an
Office within the County of Santa Clara, for the processing of parking
citations, the maintenance of telephones, and the receipt of mail or
other correspondence or inquiries relating to citations referred to
Contractor under this agreement. The ability to handle walk in traffic
should be available to the public.
ARTICLE III — Advisory Committee
3.1 Formation of Committee. An Advisory Committee shall be formed
to work with the Contractor on the operation of the parking citation
program. The Advisory Committee will meet bi— monthly or as required.
3.2 Advisory Committee Membership. The Advisory Committee will
consist of one representative from each contracting agency.
Participation will be optional on the part of each agency.
5
3.3 Contractor's Role. Contractor shall serve as a member of the
Advisory Committee,
3.4 Duties of the Advisory Committee. The duty of the Advisory
Committee shall be to recommend policy to the Agency on the operation of
the parking citation program within the County of Santa Clara.
ARTICLE IV — Contract Price
4.1 Basis for Fee Structure. The fee structure hereinafter
provided shall be based on the combined parking citation volume of all
agencies within the County of Santa Clara who have contracted with the
Contractor for the processing of parking citations.
4.2 Basis of Fee Computation. The fee due and payable to
Contractor will be computed on a per parking citation basis and will be
based on the issuance date of the citation. Each parking citation
assigned to Contractor for processing shall be utilized in computing the
base for the total fee. Once the initial fee has been charged by parking
citation, no additional costs can be charged by Contractor to pursue
collection except as defined in Article IV, Section 4.4 and 4.5 and
Article VI, Section 6.3, of this agreement.
4.3 Rate. The fee for the first year of this agreement is one
dollar and thirty cents ($1.30) per parking citation based on a minimum
volume of 150,000 parking citations per year for all agencies contracting
with the Contractor within the County of Santa Clara, and if the City of
San Jose is one of the contracting agencies. If the City of San Jose is
not one of the contracting agencies, and a minimum annual volume of
150,000 parking citations is achieved for all agencies contracting with
the Contractor within the County of Santa Clara, the fee will be one
dollar and forty cents ($1.40) per parking citation. The fee for the
second and third year agreements (provided that the contract is renewed
in accordance with the provisions hereinafter set forth) would be
computed as follows:
Year Two: $1.30 plus a cost —of— living adjustment as hereinafter
defined, not to exceed a maximum rate increase of .15¢ per
citation. The cost of living adjustment shall be computed on the
lower of the percentage increase in the annual average Consumer
Price Index for All Urban Consumers (1967 =100) for the San Francisco
Bay Area, or the annual average Consumer Price Index for All Urban
Consumers (1967 =100) for the U.S. City Average as published for
year — ending June 30, 1984, as compared to year— ending June 30, 1983.
Year Three: The second year rate per citation (exclusive of any
postal rate increases) plus a cost —of— living price adjustment based
on the percentage increase in the Consumer Price Index for the
year— ending June 30, 1985, as compared to the year — ending June 30,
1984, not to exceed a maximum rate increase of .15t per citation.
The fees for years two and three are based on a minimum combined
parking citation volume of 150,000 parking citations per year and
inclusion of the City of San Jose as one of the contracting
agencies. If the City of San Jose chooses to terminate their
agreement with the Contractor in year two or three, the parking
citation fee can be increased by an additional .100 in the year the
City of San Jose terminates the agreement.
4.4 Postal rate Increases. Postal rate increases for presorted
first —class mail after July 1, 1985, will automatically increase the per
citation processing fee as hereinafter set forth. The increase will be
effective on the date that the postal rate increase takes place. The
amount of the per citation processing fee increase will be calculated as
follows: The Contractor will maintain adequate records to document the
Contractor's actual increase in postage costs associated with the mailing
of delinquency notices for unpaid citations and for other mailings
related to the processing of correspondence, etc., concerning any
citations.
4.5 Other Fees. Contractor shall retain forty percent (40 %) of
payments from delinquent citations which have been processed in
accordance with the current agreement and remain unpaid for 180 days
after the issue date, and meet the following criteria:
a. Citations for which the California State Department of Motor
Vehicles has not provided registered owner information
because of a transfer of ownership on file and at least
three requests for that information have been made.
7
b. Citations for which the California State Department of Motor
Vehicles has dropped the registration hold because of a
transfer of ownership or non — renewal registration.
c. Citations written on vehicles for which a manual request of
the registered owner is required or the payment of a fee to
a Department of Motor Vehicles for registered owner
information. This would not include license plates for
which the Agency could obtain the registered owner
information free of charge.
d. Citations with license plates from a foreign jurisdiction.
e. Any other citations which the Agency so designates and
refers to Contractor under this agreement.
4.6 Billings and Fee Analysis. Contractor shall bill the Agency
once a month. A fee analysis which accurately reflects the fees earned
during the month will be included with the bill. Not later than ten (10)
business days after the bill and fee analysis have been received, Agency
shall either approve or reject the bill and fee analysis. If these
documents are rejected by Agency, Contractor will be notified and
problems shall be resolved. Once resolved, Agency's controller (or
designee) will request a warrant /check in the amount agreed upon, made
payable to the Contractor. Delivery of the warrant /check will be
arranged at the convenience of Contractor. In the event that such
disputes are not resolved within three (3) business days after the bill
and fee analysis have been rejected, Agency shall issue payment for those
amounts shown which are not disputed.
In the event that the aggregate citation volume of all contracting
agencies within Santa Clara County drops below 150,000 citations for a
contract year, the Contractor shall prepare an annual billing
recalculating the fees due Contractor, at the rate of one dollar and
seventy cents ($1.70) per parking citation.
4.7 On —Line Terminal Inquiry. Agency may use the on —line terminal
inquiry system at no additional cost. Contractor will provide computer
r
terminal equipment, and technical and administrative support in the
installation of the on -line inquiry feature at no additional cost.
Agency will be responsible for all telephone line charges related to the
on -line terminal inquiry feature.
4.8 Maximum Charges. The per citation fee charged to Agency
hereunder represents the maximum cost to be charged to Agency in the
absence of any other written agreement.
ARTICLE V - Reports
5.1 Periodic Reports. Contractor shall submit reports to Agency
within 10 working days after the end of the month or period. The reports
will provide activities relating to performance under this agreement,
including but not limited to the list of reports as follows:
1. Report of Revenue Collected For Month /Period
A detail report for each issuing agency identifying
the parking citations which have been paid, and the
related payment distribution (Bail, Penalties, DMV
Fee, Jail Construction, etc.).This will also include
revenues collected and distributed under Section 4.5
of this agreement and the related reason for
collection.
2. Report by Parking Citations Issued For Month /Period
A summary report by issuing agency, providing the
number of parking citations issued, violation codes
and bail imposed.
3. Report of Jail Construction Revenues Collected For
Month /Period
A summary report of all issuing agencies identifying
the agency and the amount of funds collected for jail
construction.
4. Report of Monthly Activity
A summary report
0
by issuing agency providing the
status of all parking citations at the beginning of
the month, current month activity, and at the end of
the month. Typical items that would be included:
Payments on Citations
Payments on Notice
Payments on DMV Holds
Dismissals
Registered Owner Request Pending
Registered Owner Discrepancy
Registered Owner Notified
Registered Owner Placed on DMV Hold
Registered Owner Holds Released
New citations
Payments In Full
5. Payment Analysis Report (quarterly)
A summary report by issuing agency, identifying
collection results by month in which the parking
citations were issued. Payment statistics would be
broken down to original citation, delinquent notice,
and DMV hold.
6. Habitual Offenders Report (monthly)
A detailed report by issuing agency identifying
registered vehicle owners with five or more
outstanding parking citations. The latest DMV
registered owner name and address should be included
on the report.
7. Officer Performance Report (monthly)
A detailed report by issuing agency and officer
identifying the parking citations issued, location,
violation and bail imposed.
8. Status History Report (quarterly)
A detailed report by issuing agency showing the
periodic status of open and closed parking citations
maintained on the file.
10
9. Special reports as requested or required
5.2 Report of Monthly Activity. Contractor will provide a summary
monthly activity report, which will provide Agency with a full accounting
and reconciliation of Agencies' parking citation activity.
5.3 Microfiche. Contractor will provide all reports on microfiche
if Agency so desires.
ARTICLE VI — Term of Contract and Additional Service
6.1 Term and Renewals. The term of this agreement shall be for the
period commencing September 15, 1983, and ending September 14, 1984 and,
if no notice of change or termination is given by the Agency, the
agreement ,shall be automatically renewed for an additional one —year
periods, on the same terms and conditions provided herein. If no notice
of change or termination is given by the Agency during this initial
extension period, a second additional one —year renewal of the agreement
shall automatically occur, on the same terms and conditions provided
herein.
6.2 Cancellation. Upon a material breach or upon sixty (60) days
written notice to Contractor, the Agency may cancel or terminate this
agreement. All citations, files, reports, information, data, and monies
relating to such citation's shall be returned to Agency after Contractor
has fulfilled all their responsibilities relative to the processing of
the parking citations.
6.3 Additional Service. Any contracting Agency shall be free to
negotiate a different agreement with the Contractor for any specialized
service which does not fall within the standardized policy of this
agreement. Additional service agreements shall not decrease the
aggregate citation volume of all contracting agencies under this
agreement.
6.4 Contractor Responsibility At Termination of Agreement. For all
parking citations for which Contractor has been paid a fee as described
in Section 4.3, the Contractor will perform those functions as provided
11
for in Article I & II of this agreement; provided the Santa Clara County
Municipal Court allows the Contractor to continue to use the court
requestor code for reporting to the California State Department of Motor
Vehicles.
ARTICLE VII — Confidentiality
7.1 Materials Confidential. All reports, information, data, files,
and tapes furnished or prepared by the Contractor, its subcontractors,
successors or assigns (to the extent hereinafter allowed) for the purpose
of transmittal to Agency pursuant to this agreement are confidential.
7.2 Consent Required for Disclosure. No report, information, data,
files or tapes furnished or prepared by Contractor or its subcontractors,
successors or agents, shall be made available to any individual or
organization without the prior written approval of Agency other than
individuals or organizations who are reasonably necessary to properly
effectuate the terms and conditions of this agreement.
ARTICLE VIII — Claims and Actions
8.1 Reasonable Assistance of Contractor.. In the event any claim or
action is brought against Agency relating to Contractor's performance or
services rendered under this agreement, Contractor shall render any
reasonable assistance and cooperation which Agency might require.
8.2 Agency Cooperation. In the event any claim or action is
brought against Contractor relating to Contractor's performance of
services rendered under this agreement, Contractor shall notify the
Agency, in writing, within five (5) days, of said claim or action.
8.3 Hold Harmless and Insurance Provisions. Contractor agrees to
furnish the following bonds and insurance policies prior to the
commencement of work under this agreement and agrees to maintain them
throughout the term of this contract and any renewals thereof:
a) Contractor agrees to indemnify, defend and hold harmless the
Agency, its officers, agents and temployees from any loss,
12
injury or damage arising out of or in connection with
Contractor his agents, contractors or employees performance
under this agreement, excepting only loss, injury or damage
caused solely by acts or omissions of personnel employed by
Agency. Contractor further agrees to reimburse Agency for
all costs, attorney's fees, expenses and liabilities
incurred in any litigation arising out of any obligation on
Contractor's part to be performed under this agreement or
arising from any negligence of Contractor or Contractor's
agents, contractors or employees.
b) Throughout the term of this agreement, Contractor at its
sole cost and expense, shall maintain in full force and
effect comprehensive automobile and general liability
insurance covering bodily and personal injury and property
damage. Limits shall be in an amount of not less than
$1,000,000 per occurrence. Such insurance policies shall
name Agency, its officers, agents and employees,
individually and collectively, as additional insureds. Such
coverage for additional insureds shall apply as primary
insurance and any other insurance or self insured retention
maintained by the Agency, its officers, agents and
employees, shall be excess only and not contributing with
insurance provided under said policy. Such insurance
policies shall not be cancelled or materially changed
without thirty (30) days advance written notice to the
Agency.
c) Throughout the period of this agreement, Contractor at its
sole cost shall maintain in full force and effect a policy
of Worker's Compensation Insurance covering all of its
employees.
d) Throughout the period of this agreement, Contractor at its
sole cost shall maintain in full force and effect a Fidelity
Bond which provides crime coverage including employee theft
and mysterious disappearance for $250,000.
13
e) Prior to commencement of this agreement, Contractor shall
provide on a form approved by Agency a Certificate of
Insurance certifying that coverage as required has been
obtained and remains in force until the date of the notice
of completion or after the date of cancellation of this
agreement, whichever is first to occur.
ARTICLE IX — Subcontractors and Assignments
9.1 Subcontracting. Contractor is authorized to engage
subcontractors within the State of California at Contractor's own expense.
9.2 Assignments. This contract may not be assigned without the
prior written consent of the Agency.
ARTICLE X — Independent Contractor
10.1 Contractor's Relationship. Contractor's relationship to Agency
in the performance of this agreement is that of an independent
contractor. Personnel performing services under this agreement shall at
all times be under Contractor's exclusive direction and control and shall
be employees of Contractor and not employees of the Agency. Contractor
shall pay all wages and salaries and shall be responsible for all reports
and obligations respecting them relating to social security, income tax
withholding, unemployment compensation, workers' compensation, and
similar matters. Neither Contractor nor any agent or employee of
Contractor shall obtain any right to retirement benefits or other
benefits which accrue to employees of Agency, and Contractor hereby
expressly waives any claim it might have to such rights.
ARTICLE XI — Entire Agreement
11.1 Integrated Agreement. This contract is intended by the parties
as a final expression of their agreement and also as a complete and
exclusive statement of the terms thereof, in a prior oral or written
agreement regarding the same subject matter notwithstanding. This
agreement may not be modified or terminated orally, and no modification
or any claim of waiver of any of the provisions shall be effective unless
in writing and signed by both parties.
14
11.2 Law Applicable. Contractor agrees to comply with all laws
within the State of California governing the conduct of business,
including but not limited to laws pertaining to licenses, taxes,
corporate regulation, and collection practices.
11.3 Notices to Parties. Any notice required under this agreement
to be given to either party may be given by depositing in the United
States mail, postage prepaid, first — class, a note address to the
following:
AGENCY: TOWN OF LOS GATOS
110 EAST MAIN STREET
LOS GATOS, CA 95030
CONTRACTOR: Datacom Systems Corporation
777 North First Street
San Jose, CA 95112
WHEREFORE, the parties hereto have entered into this agreement as of
the day and year hereinabove written.
CONTRACTOR
Jill Nic son. Director, West Coast Operations.
AGENCY
8 y ..1�
APPROVED AS TO FORM: David R.,,-Mora
15