REPORT TO THE CITY COUNCIL
March 31, 2016
FROM: JENNIFER CLARK, Director
Development and Resource Management Department
BY: DEL ESTABROOKE, City Engineer
Development and Resource Management Department
SUBJECT
Title
Award a three-year contract in the amount of $508,640 to Turbo Data Systems, Inc. for parking citation services with the option of up to four (4) two-year extensions.
Body
RECOMMENDATION
Staff recommends awarding a three-year contract in the amount of $508,640 to Turbo Data Systems, Inc. for parking citation services with the option of up to four (4) two-year extensions.
EXECUTIVE SUMMARY
The Parking Division of the Development and Resource Management Department solicited proposals through the Request for Proposal (RFP) process for parking citation processing services. Some of the services requested included; handheld TicketWriters for the Parking Controllers, software to process citations, mailing notices, providing online and telephone payment options, and collection services.
The RFP for Parking Citation Services was released on October 27, 2015 and 30 potential bidders downloaded the proposal. Proposals were due on December 1, 2015 and revealed in a public bid opening. Proposals were received from Turbo Data Systems, Inc., Phoenix Group, Data Ticket, Inc., T2 Systems, Inc., Complus Data Innovations, Inc., and INET Inc. dba iParq. These bids were scheduled to expire 120 days after the bid opening (March 30, 2016) but a 30 day extensions was requested and granted by each of the companies. INET Inc. dba iParq’s proposal was removed from consideration by Purchasing as they did not meet all of the requirements of the RFP.
The Proposal Evaluation Committee was comprised of three Parking Division employees, one Code Enforcement employee and the Parking and Code Enforcement Manager. After interviewing responsive candidates at the end of January 2016, the committee’s evaluation determined that Turbo Data Systems, Inc. presents the best value for the public and the City.
BACKGROUND
Prior to June of 2006, Parking Services had an agreement with Cardinal Tracking to provide software and support for citation processing. During that time, City employees processed all notices, payments, answered all phone calls, made repairs to the handhelds, etc. It was a very labor intensive process and resulted in a very low collection rate.
By September 2005, Parking Services had more than 38,000 unpaid parking tickets totaling more than $1.6 million. At that time the Council agreed to institute an amnesty program for 30 days to allow unpaid citations to be paid at their original rate without penalties. During the Council meeting, it was suggested that Parking Services look into contracting with a private company to provide citation services to help ensure payment for Parking citations.
In June of 2006, Parking Services entered into an agreement with Turbo Data Systems, Inc. to provide citation processing services. Currently, Turbo Data Systems, Inc. provides handheld TicketWriter support, citation processing software, online and over the phone payments, mails notification letters, communicates with the DMV to collect information, and works with the Franchise Tax Board and Collection agencies to collect unpaid parking tickets.
In 2015, Parking Services put together an RFP package. Staff put together a list of parameters and requirements needed to ensure appropriate services were provided to both the City and the customer. Proposers were required to provide specifications and costs based on annual predictions of citations issued. A Notice Inviting Proposers was published in the Business Journal and posted to the City’s Website on October 27, 2015. The proposal specifications were downloaded by 30 prospective bidders.
Six sealed proposals were received and opened on December 1, 2015. Qualified proposers and their three year proposal prices were as follows:
Total Three (3) Year Proposed Estimated Costs Including Startup Costs
Complus Data Innovations, Inc. $344,847.00
Data Ticket, Inc. $458,006.64
Phoenix Group $434,793.50
T2 Systems, Inc. $525,073.75
Turbo Data Systems, Inc. $508,640.00
The RFP provided a table that each bidder was to use to determine their proposal costs. City staff checked each proposal and only Phoenix Group and Turbo Data Systems, Inc. provided bids that staff could recreate using the table. Each bidder was asked to come to the interview prepared to discuss their bids but only Turbo Data Systems, Inc. covered their pricing during the presentation. When specifically asked, the others did not have an answer as to why their prices did not match their bids. Complus Data Innovations, Inc. did submit a new cost sheet, however, staff was still unable to recreate their bid amount. Turbo Data Systems, Inc. was also the only bidder to provide costs for cellular and data plans on their devices. These would be extra, unknown costs for the other bidders.
Selecting Turbo Data Systems, Inc. is believed to be the best value for the City of Fresno in both cost and service provided and is recommended to be awarded a 3 year contract for services.
ENVIRONMENTAL FINDINGS
Staff has determined that the proposed Agreement is exempt under CEQA Guideline 15301 Class 1, which provides exemption for the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public structures and facilities, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. The proposed Agreement is within the Class 1 exemption because it involves existing City parking structures and facilities involving negligible or no expansion of use.
The above exemption is not precluded by Guideline 15300.2, which prevents the use of categorical exemptions for projects where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances, or where a project may cause a substantial adverse change in the significance of a historical resource. The proposed Agreement does not have a significant effect on the environment due to unusual circumstances, nor does it cause a substantial adverse change in the significance of a historical resource. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply to this project.
LOCAL PREFERENCE
Local preference did not affect the award of this requirements contract since none of the bidders qualify for the local business preference according to the Fresno Municipal Code Section 4-108(a).
FISCAL IMPACT
The budget for Parking Services comes from General Fund dollars. Currently, Parking spends between $150,000 and $200,000 a year on parking citation services. With an upgrade to equipment needed as part of a new contract, staff predicted an average cost of $240,000 annually. Turbo Data Services, Inc.’s bid amount is an average of $170,000 annually. Costs are proportional to the number of citations issued so any increases in cost should be offset by citation revenue.
Attachments:
Sample Contract
Evaluation Committee Report