REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Alisa Backstrom, City Treasurer
PREPARED BY: Joyce Zacks, Deputy City Treasurer
Subject:
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Approve and authorize execution of a contract with Data Ticket, Inc., for the provision of Parking and Administrative Citation processing and Parking Permit Services
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Statement of Issue:
City Council approval is requested for an agreement between the City of Huntington Beach and Data Ticket, Inc. (Data Ticket) to provide parking and administrative citation processing, collection services, and parking permit services.
Financial Impact:
The FY25/26 proposed budget for the Treasury Department contains sufficient funding in the General Fund to support the annual cost of the contract with Data Ticket for parking citations and fines, parking permit services, and administrative citations. These combined are anticipated to generate approximately $6,000,000 in General Fund revenue each year.
Recommended Action:
recommendation
(A) Approve and authorize the Mayor and City Clerk to execute “Service Agreement Between the City of Huntington Beach and Data Ticket, Inc. For Citation Processing and Parking Permit Solution Services” in an amount not to exceed $1,950,000 for a 3-year term with two additional one-year extensions; and
(B) Authorize the City Manager to execute all documents in furtherance of this Agreement.
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Alternative Action(s):
Do not approve, and direct staff accordingly.
Analysis:
The City of Huntington Beach has maintained an external contractor to perform parking citation processing since 1992 due to the high costs of performing these functions in-house.
The City of Huntington Beach conducted a competitive bid in July 2021 where it was determined that Data Ticket offered both the lowest cost and best customer service, along with the most advanced technology. Data Ticket also offers technological and customer service capabilities in the areas of online permit sales, as well as License Plate Recognition (LPR) capability to further enhance Police and Parking Enforcement efficiencies.
The current agreement with Data Ticket expires at the end of June 2025. The City would like to continue with Data Ticket for parking citation and parking permit services to ensure ongoing collection. Additionally, as part of the City’s ongoing efforts to improve operational efficiencies and increase revenue, we would like to expand the scope of services to include processing of administrative citations. The addition of administrative citations will enhance noticing, aging, and collection of citations across multiple City departments, resulting in increased revenues for the General Fund.
Municipal Code 3.02.190.C (Interagency Purchase Agreements) allows the City to “piggyback” off the County of Riverside’s existing contracts/purchase orders with Data Ticket. Their agreement was procured through an approved Request for Bid process, and the contract was issued on July 1, 2022.
City Council authorization is requested to execute a new three-year agreement with Data Ticket, Inc. in an amount not to exceed $1,950,000 over 3 years.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Service Agreement Between the City of Huntington Beach and Data Ticket, Inc. For Parking and Administrative Citation Processing and Parking Permit Solution
2. City of Riverside Professional Service Agreement for Citation Processing Services with Data Ticket, Inc.