Turbo Data Systems Inc ne 41/ 41/
AGREEMENT FOR PROCESSING
OF PARKING CITATIONS P I 199-:J
..
This Agreement is entered into as of November 23 ,
199 3 ,V by and between Turbo Data Systems, Inc. (TDS) , a
California Corporation, and the Cities of Rolling Hills Estates,
Rancho Palos Verdes, and Rolling Hills, (unless otherwise
indicated collectively referred to as "Customer") .
WHEREAS, new legislation adopted by the State
Legislature (AB 408) requires Cities to assume the responsibility
from the municipal courts for processing parking citations issued
by Cities;
WHEREAS, the Cities do not have a sufficient number of
staff members available to undertake these additional tasks;'
WHEREAS, TDS has represented to the Cities that it has
the necessary expertise to undertake these tasks on behalf of the
Cities;
WHEREAS, TDS and Customer desire to enter into an
Agreement whereby TDS will process parking citations for Customer
pursuant to the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the mutual
covenants, conditions, representations and warranties contained
herein the parties hereby agree as follows:
1. LEAD AGENCY. Rolling Hills Estates will act as the
lead Customer and agent for all three Cities for purposes of this
1/ The City Clerk is to insert the effective date; the
effective date shall correspond to the effective date of the
ordinance last adopted by any of the three Cities which is a
party hereto, whereby each City assumes the responsibility for
processing parking citations.
931022 R6876-00001 pjr 0691350 3
• . 111 110
Agreement and shall serve as the liaison between the Cities and
TDS. Thus, Rolling Hills Estates shall receive all reports,
information and revenue, which are required to be provided by TDS
pursuant to the provisions of this Agreement, on behalf of all
three Cities. Rolling Hills Estates shall supply copies of all
reports or data provided by TDS to Rolling Hills and Rancho Palos
Verdes within thirty (30) days of receipt of same from TDS.
Rolling Hills Estates also shall provide to Rolling Hills and
Rancho Palos Verdes a monthly report indicating the share of the
prior month's revenues which is to be allocated to each City and
shall distribute such monthly revenue to each City.
2 . PURPOSE. The purpose of this Agreement is for TDS to
process parking citations for Customer in a timely manner.
3 . SCOPE OF SERVICES. When and as directed by Customer,
TDS shall perform the following services in processing all
parking citations:
A. Process all parking citations delivered to TDS by
Customer until such time as TDS is (1) notified of
their final disposition; or (2) thirty (30) months have
passed after their date of issuance.
B. Provide monthly reports to Customer indicating the
status of all citations no later than the thirtieth
(30th) day of the following month.
C. Attempt to obtain names and addresses of registered
owners of cited vehicles by conducting a thorough
search of appropriate records for those citations that
have not been cleared prior to their delinquent date.
931022 R6876-00001 pjr 0691350 3 - 2 -
•
D. If no payment has been made and no administrative
review has been requested, print the required Notice of
Delinquent Parking Violation within fifteen (15) days
after the citation has been issued, mail the Notice of
Delinquent Parking Violation to each registered owner
whose name has been retrieved, provided however, in
processing any citation which was delinquent as of the
effective date of this Agreement, TDS shall have one
(1) month to mail the Notice of Delinquent Parking
Violation to the registered owner. These time periods
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
Department of Motor Vehicles ("DMV") for citations
issued in California to vehicles with California
license plates after a Notice of Delinquent Parking
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 of Delinquency to the California DMV
that a Notice of Delinquency has been cleared within
thirty (30) days after TDS has received notification of
clearance.
931022 R6876-00001 pjr 0691350 3 - 3 -
. •
G. Customer shall be responsible for delivering all
citations, payment information and records of
disposition to TDS' place of business, at the address
set forth in paragraph 19, by the United States mail or
other carrier messenger.
H. TDS will provide the following collection services for
Customer:
* Provide a P.O. Box where payments are mailed;
* Courier pickup from P.O. Box daily;
* Open all mail;
* Verify payment amounts and record on computer
system;
* Return questionable mail to Customer for decision;
* Make bank deposits to Customer's bank account;
* Verify amounts deposited, by Citation Number;
* Provide a toll-free 800 number for citizen
inquiries; and
* Provide weekly reports for bank statement
reconciliation.
Except for those services specified in this paragraph,
TDS shall not be responsible for collecting or
receiving payments on citations issued by Customer.
I. TDS shall process citations issued for vehicles not
registered in California by entering the citation
information into the system database and reporting them
in the standard reports along with all other citations
entered on the database. If and when they become
931022 R6876-00001 pjr 0691350 3 - 4 -
411 411
delinquent, requests for registered owner information
will be sent to the appropriate out-of-state department
of motor vehicles. At the same time, a Notice of
Intent will be generated to the registered owner
informing him or her that a request for registered
owner information has been made with his or her state's
DMV, and the parking penalty amount will be requested.
Return payments will be made to the same address as all
other payments. All costs for this processing,
including out-of-state DMV charges, will be incurred by
TDS. TDS will receive from the Customer thirty-five
percent (35%) of the revenues collected from out-of-
state
ut-of-state citations after the Notice of Intent has been
issued. This amount will be billed monthly for the
prior month's receipts (as determined from the TDS
database and/or reports) .
J. TDS shall process contested parking citations in a
manner that complies with state law, Customer's parking
citation processing ordinance, and the following
procedures:
TDS will administer an administrative adjudication
process including the hearing and disposition of all
contested parking violations. In hearing contested
parking citations, TDS will abide by the provisions of
the Parking Citation Administrative Adjudication
Manual, which has been approved by Customer, and
Customer's parking citation processing ordinance. The
931022 R6876-00001 pjr 0691350 3 - 5 -
411 411
process will include the following scope of services
for each of the main activities:
Contesting a Citation:
By telephone - TDS will respond to questions on the 800
number regarding the contesting of parking citations by
explaining the new adjudication procedures provided in
AB 408. Contestants will be told that they must first
request an initial review either by mailing a letter
indicating their reasons for contesting the citation,
by telephoning Customer to request an initial review,
or by going to Customer and filing 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
Customer. Only citations meeting the pre-defined date
criteria (postmarked within 21 days after issuance or
10 days after the mailing of the delinquent notice)
will be forwarded to the City which issued the citation
for an initial review. Those requests not meeting
these specific date criteria will receive a "Too Late
to Request an Administrative Review" letter. Each
citation sent to the City for review will have a
931022 R6876-00001 pjr 0691350 3 - 6 -
x.
• 411 411
"Customer hold" placed on it so that no further
processing occurs during the contesting process.
Contesting in person - A "Request for Administrative
Review Form" will be available at each City's city hall
for contestants to fill out and submit to TDS by mail
or, if Customer desires, by the regularly scheduled
courier to Customer (if provided by TDS) . TDS will
gather all requests for an initial review together for
each Customer. Only citations meeting the pre-defined
date criteria (postmarked within 21 days after issuance
or 10 days after the mailing of the Notice of
Delinquent Parking Violation) will be forwarded to
Customer. Those requests not meeting these specific
date criteria will receive a "Too Late to Request an
Administrative Review" letter. Each citation sent to
the City for review will have a "Customer hold" placed
on it so that no further processing occurs during the
contesting process.
Notification to Customer - Administrative Reviews - All
Correspondence regarding the contesting of citations
will be delivered to Customer in accordance with a
predetermined schedule approved by Customer and TDS.
Each City will perform its own initial review of
contested parking citations issued by that City. The
outcome of these administrative reviews will be
931022 R6876-00001 pjr 0691350 3 - 7 -
•
.
communicated to TDS on the "Administrative Review
Disposition Form". TDS will mail the "Result of
Administrative Review" letter to each contestant
informing them of the disposition of the initial
review. The letter also will indicate to the
contestant the right to further request an
administrative hearing, either in writing or in person,
by paying to TDS the full amount of the parking penalty
along with either a written statement from which to
adjudicate the contestant's claim or a request for a
hearing date. Each letter will include a non-postpaid
return envelope to encourage payment of the parking
penalty. Each contestant will have 15 days from the
date of the mailing of the "Result of Administrative
Review" letter to pay to TDS the full amount of the
parking penalty and request an administrative hearing.
The delinquent date for additional penalties will
coincide with this date.
Scheduling of Administrative Hearings - Parking
penalties received by mail with a request for a hearing
will be deposited into Customer's bank account
immediately like any other payment. Partial payments
will be treated as unusual and will be followed by the
sending of a Notice of Delinquent Payment requesting
payment in full. If a payment is received and it is
after the 15 day time period, the payments will be
931022 R6876-00001 pjr 0691350 3 - 8 -
!II 411
_ .
processed and the citations will be closed.
Contestants will be notified with the "Too Late to
Request an Administrative Hearing" letter if the
payment and request for administrative hearing is
received after the 15 day time limit.
Hearings In-Person - Contestants requesting a hearing
in-person will be notified of a hearing date and
location on the mailed "Hearing Date Notification"
letter. Hearings will be conducted in an area provided
by Customer. The area shall include a closed office
for the hearing with an adjacent lobby for contestants
waiting to be heard.
Hearings by Written Declaration - Written hearing
statements will be placed in the written declaration
file to be decided upon by the hearing examiner on a
pre-determined schedule, agreed upon by Customer and
TDS.
Administrative Hearings - Only those contestants who
have filed timely requests for a hearing and which are
then scheduled for a hearing by TDS will be heard by
the hearing examiner. The hearing examiner will make
all decisions based on the guidelines outlined in
Customer's Administrative Adjudication Manual.
931022 R6876-00001 pjr 0691350 3 - 9 -
411 III
_..
_ .
. ,
Decisions will be made after the hearing and
results mailed to the contestant in the "Result of
Administrative Hearing" letter. Contestants not
appearing at the scheduled date and location will have
their citation closed (as payment was already
received) . Rescheduling of a hearing date will be
permitted only once per citation, provided that the
request for rescheduling is made either by phone or
mail at least one week prior to the scheduled
.
administrative hearing date.
Results of Administrative Hearings - If a citation is
dismissed by the hearing examiner, TDS will prepare a
"Result of Administrative Hearing" letter to be sent to
the contestant. These letters will indicate the amount
of the refund and will be given to the appropriate City
so that the City may prepare a refund check for each
contestant. The City will then be responsible for
preparing and mailing the refunds with the letters to
each contestant.
If a citation is not dismissed by the hearing
examiner, TDS will prepare and send by mail a "Result
of Administrative Hearing" letter to the contestant.
This letter also will include any explanation desired
by Customer regarding the contestant's further
contesting rights.
931022 R6876-00001 pjr 0691350 3 - 10 -
111 411
. •
K. TDS shall prepare an audited report at the end of each
fiscal year pursuant to the requirements of Vehicle
Code Section 40200.3 or any successor statute.
L. For parking citations, TDS shall charge the parking
penalties and any related administrative fees pursuant
to Customer's Parking Citation Penalty Schedule.
M. TDS shall itemize, pursuant to Customer's Parking
Citation Penalty Schedule, the parking citations
issued, the parking penalties collected per citation,
and the amounts or percentages of the parking penalties
which have been collected which are to be distributed
to Los Angeles County.
4. TERM. This Agreement shall be effective for a period
of one (1) year and will be extended automatically for additional
one-year periods, unless any party gives written notice to the
other parties of its intent to terminate the agreement, at least
sixty (60) days prior to commencement of the successive renewal
year.
5. CONSIDERATION. In consideration for services performed
by TDS as provided in this Agreement, Customer shall pay TDS the
following amounts for the services listed below:
Processing fee per Citation $1.10
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 to Customer, for all three Cities,
shall be $300.00.
931022 R6876-00001 pjr 0691350 3 - 11 -
111 411
Fee per letter sent: $1.00
* Too late to Request Administrative Review
Letter
* Result of Administrative Review Letter
* Too Late to Request a Hearing Letter
* Hearing Date Notification Letter
* Result of Hearing Letter
Fee per each hearing conducted (written or
in-person) $10.00
If postal rates increase during the term of this
Agreement, the compensation per notice sent shall be raised
immediately to offset the effect of the postal rate increase.
If telecommunication rates increase during the term of
this Agreement, upon notice by TDS to Customer of the amount of
any telecommunications cost increase, the compensation for
telecommunications costs shall be raised immediately to offset
the rate increase.
Commencing on December 1, 1994, and each successive
year that this Agreement continues in effect, the cost per item
set forth above may be adjusted as follows: The United States
Department of Labor's Bureau of Labor Statistics Consumer Price
Index for all Urban Consumers, Los Angeles-Long Beach-Anaheim,
California: ("Index") which is published on the date nearest the
date of each successive contract year ("Adjustment Index") , shall
be compared with the Index published on the date nearest the date
of execution of this Agreement ("Beginning Index") . If the
Adjustment Index has increased over the Beginning Index, the
931022 R6876-00001 pjr 0691350 3 - 12 -
lip 1104
amount payable by Customer during each subsequent shall be
determined by multiplying the processing fee set forth above by a
fraction, the numerator of which is the Adjustment Index and the
denominator of which is the Beginning Index. In no event shall
the fee charged to Customer be less than the amount set forth
above; and in no event shall the fee charged to Customer increase
more than ten percent (10%) per Agreement year.
6. PAYMENT OF FEES. Charges determined on the basis set
forth in Section 5 shall be billed on a monthly basis and payment
therefor shall be made within thirty (30) days after submission
of each separate invoice.
7. ACCOUNTING RECORDS. Records of the citations
processed by TDS shall be available for examination by Customer
or its authorized representative(s) at a time agreeable to
Customer and TDS within one week following a request by Customer
to examine such records. Failure by TDS to permit such
examination within one (1) week of a request shall permit
Customer to withhold all further payments until such examination
is completed, unless an extension of time for examination is
authorized by Customer in writing. In addition, TDS shall
prepare and provide to Customer the annual audited report
required by Customer's ordinance.
8. 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
purposes of this Agreement as set forth in Sections 2 and 3 .
931022 R6876-00001 pjr 0691350 3 - 13 -
111 111
9. INDEPENDENT CONTRACTOR. At all times during the term
of this Agreement, TDS shall be an independent contractor and
shall not be an employee of Customer. TDS shall comply with the
procedures established by Customer in Customer's ordinance, this
Agreement, and Customer's Administrative Adjudication Manual;
however, Customer shall not have the right to control the means
by which TDS accomplishes the services rendered pursuant to this
Agreement.
10. FACILITIES AND EQUIPMENT. TDS shall at its own cost
and expense, provide all personnel, facilities and equipment
which may be required for performance of the services required by
this Agreement. Office space for hearings conducted by TDS
hearing examiners shall be provided by Customer at the following
location •
11. 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,
employee, and representative of Customer, from any and all
liability or financial loss resulting from any suits, claims,
losses or actions brought by any person or persons including, but
not limited to, officers and employees of TDS and from all costs
and expenses of litigation brought against Customer, its officers
and employees arising directly or indirectly from any negligent
931022 R6876-00001 pjr 0691350 3 - 14
•
410 411
or wrongful act or omission by TDS or any person employed by TDS
in the performance of this Agreement.
12 . 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
which 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 not be responsible for Customer's losses and
expenses resulting from erroneous source materials or information
provided to TDS by Customer. 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 to TDS by Customer.
13 . FAIR EMPLOYMENT PRACTICES/EQUAL OPPORTUNITY ACTS. In
the performance of this Agreement, TDS shall comply with all
applicableprovisions rovisions of the California Fair Employment Practices
Act (California Labor Code Section 410 et seg. ) and the
applicable equal employment provisions of the Civil Rights Act of
1964 (42 U.S.C. 200, 217) , whichever is more restrictive.
14. 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 obligation whatsoever.
931022 R6876-00001 pjr 0691350 3 - 15 -
•
15. 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 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 in writing to the other party. Any changes
in the processing of parking violations as a result of a 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 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 5 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, provided
either party gives sixty (60) days notice of termination in
writing to the other party.
16. OWNERSHIP. Customer acknowledges that the software and
software programs which were developed by TDS and used by
Customer or used for Customer's benefit in connection with this
Agreement are the sole property of TDS, and Customer obtains no
right or interest in the software by virtue of this Agreement.
931022 R6876-00001 pjr 0691350 3 - 16 -
it
411 411
17. 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.
18. TERMINATION. This Agreement may be terminated by any
party upon sixty (60) days written notice prior to the
commencement of any renewal year. However, if there is a
material breach of the terms of this Agreement by TDS, Customer
may cancel or terminate this Agreement at any time, provided that
Customer has notified TDS in writing of the breach and has given
TDS thirty (30) days to cure said breach. If the breach is not
cured within the thirty-day period, the Agreement shall be
terminated as of the end of the thirty-day period.
19. 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.
14272 Franklin Avenue, Suite 100
Tustin, California 92680
Roberta J. Rosen, President
CUSTOMER: City of Rolling Hills Estates
4045 Palos Verdes Drive North
Rolling Hills Estates, California 90274
City Manager
931022 R6876-00001 pjr 0691350 3 - 17 -
410 411
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.
20. EXTENT OF AGREEMENT. This Agreement represents the
entire and integrated Agreement between the parties hereto and
supersedes any and all prior negotiations, representations or
Agreements, either written or oral. This Agreement may be
amended only by a written instrument signed by all the paries
hereto. 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
shall remain in full force and effect.
21. LITIGATION COSTS. If any legal action or any other
proceeding is brought to enforce the terms of this Agreement,
because of an alleged dispute, breach, or misrepresentation in
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.
931022 R6876-00001 pjr 0691350 3 - 18 -
♦Y
•
N �
22 . INSURANCE. TDS shall procure and maintain during the
term of this Agreement the following insurance against claims for
injuries to persons or damages to property which may arise from
or in connection with the performance of this Agreement by TDS,
its agents, representatives or employees:
A. Comprehensive General Liability $1,000, 000 combined single
limit for each occurrence;
B. Workers' Compensation as required by the Labor Code
of California.
Executed as of the year and date first written above.
Dated: November 23, 1993 CITY OF ROLLING HILLS ESTATES
By:
Mayor Pro Tem
Dated: November 23, 1993 CITY OF RANCHO PALOS VERDES
By: - i d/q/
ayor
Dated: November 23, 1993 CITY OF ROLLING HILLS
By• qatf lilta6N5L/
or
Dated: 12/2i c 3 TURBO DATA SYSTEMS, INC.
By.
Roberta J. osen
President
931022 R6876-00001 pjr 0691350 3 - 19 -