Resolution No. 4833
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RESOLUTION NO. 4833
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING THE EXECUTION OF AN
AGREEMENT FOR PROCESSING PARKING CITATIONS BY
AND BETWEEN DATACOM SYSTEMS CORPORATION AND
THE CITY OF VERNON
6 lIl1HEREAS, the City of Vernon needs the services of an
7 agency to process parking citations on behalf of the C.ity of
8 Vernon; and
9 WHEREAS, the City Council of the City of Vernon on
10 June 30, 1981 authorized the Vernon Police Department to use
11 Datacom Systems Corporation for the purpose of processing parking
12 citations; and
13 WHEREAS, the City 'of Vernon and Datacom Systems
14 Corporation wish to enter into an agreement to provide for the
15 processing of parking citations pursuant to the laws of the
16 State of California and ordinances of the City of Vernon
17 commencing July 1, 1981 and terminating June 30, 1982.
18 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
19 THE CITY OF VERNON AS FOLLOWS:
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SECTION 1: That the City Council of the City of Vernon
21 hereby finds and determines that the recitals contained herein-
22 above are true and correct.
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SECTION 2: That the Agreement for Processing Parking
24 Citations, a copy of which is attached hereto as Exhibit "A" and
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incorporated herein as though fully set forth at length, is
hereby approved and the Mayor of the City of Vernon is hereby
authorized to execute said contract on behalf of the City of
Vernon.
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SECTION 3: That the City Clerk of the City of Vernon
2 shall certify to the passage of this Resolution and thereupon
3 and thereafter the same shall be in full force and effect.
4 APPROVED AND ADOPTED this 18th day of August, 1981.
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ATTEST:
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BRUCE V. MALKENHORST, City Clerk
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STATE: OF .CALIFORNIA )
) SSe
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHQRST, City Clerk of the City.o:l:
Resolution No. 4833
Verno,n, do hereby certify that the foregoing Resolution, being
, was duly adopted by the City Council
of the City of Vernon, and was approved by the Mayor of said
City at a regular meeting of the City Council held on Tuesday,
August 18 " 19,81.
(SEAL)
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AGREEl>1ENT FOR PROCESSING PARKING CITATIONS
3 THIS AGREEMENT is made, entered into and executed in duplicate
4 originals, either copy. of which may be considered and used as the original
5 hereof for all purposes, and to be perforrred in Vernon, California as of
6 the 1st day of July
7 BY ANDBEIWEEN
, 1981
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10 AND
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CITY OF VERNON, a Municipal
Corporation (hereiMfter referred to
as "Vernon")
4305 Santa Fe Avenue
Vernon, CA 90058
DATACOM SYSTEMS CORPORATION
(hereinafter referred to as
"Contractor" )
17900 Skypark Circle, Suite 201
Irvine, CA 92714
RECITALS
WHEREAS, Vernon needs the services of an agency to process parking
15 citations on its behalf; and
16 \'YHEREAS, the City Council of Vernon on June 30, 1981 authorized
17 the Vernon police Department to use Contractor for the purpose of processing
18 parking citations; and
19 WHEREAS, Vernon and Contractor wish to enter into an agreement
20 to provide for the processing of fines, bail and forfeiture thereof , in
21 connection with the issuance of citations for illegal parking pursuant to
22 the laws of the State of California and ordinances of Vernon.
23 NCM', THEBEFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS, PROMISES
24 AND CONDITIONS HEREINAFTER. SET FORI'll, THE PARrIES HEREI'O AGREE AS FOLIDWS:
25 ARI'ICLE 1 - P~SING
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SECTION 1.1 Referral and Reconciliation. Contractor shall
27 receive and process parking citations which Vernon delivers to it. Contractor
28 will provide a daily reconciliation of the number of citations delivered by
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Vemon.
SECTION 1.2
Determination of processable Citations.
Contractor
shall screen the parking citations referred to it 'by Vemon to determine if
the citation isprocessable. If the citation is determined by Contrac.tor
to be unprocessable (e.g., blank license number), Contractor shall return the
citation to Vemon within seven (7) days for clarification. Contractor will
be paid the contractual rate hereinafter provided, for citations returned to
the Agency .as . unprocessable.
SECTION 1. 3 Collection and Dep::>sit of Funds. Contractor shall
10 collect. and deposit all. rronies received for the payrrent of parking citation
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fines and fees in a trust account with a local financial institution.
Contractor will receive. payments fran vehicle owners through the mails and
franagencies forwarding payrrents collected by them fran registered owners.
SECTION 1.4 Contractor shall disburse monthly, all rronies on
deposit from the payrrent of parking citation fines and fees to Vemon.
Disbursement shall be made on or before the 15th of each month beginning the
rronth following the date of this agreerrent. The Contractor shall deduct fees
due under this contract prior to dispensing rronies to Vemon.
SECTION 1.5 Identification of Registered Vehicle OWners.
Contractor shall exert best efforts and attempt to obtain the nan€ and
address of the registered vehicle owner frcm the California 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 Department of t-btor
Vehicles,. and be consistent with the Califomia Vehicle Code when identifying
SECTION 1.6 Verification of OWnership.
Contract. shall insure
that adequate identification of registered vehicle owners and verification
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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 tiIre periods applicable to individual cases.
SECTION 1.7 Delinquency Notices. Contractor shall generate. and
mail (first-class postage, and within a reasonable period of tiIre) 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
period of tiIre will not exceed the tiIre limits. provided by State and local
law. The mailed notice will include all infonnation required by the Cali-
fornia Vehicle Code, including but not limited to the following:
1. The parking citation issuance date and number;
2. The consequences of nonpayment (a hold on the vehicle
registration and the imposition of penalties); and
3. The arrount of fines and fees due and payable. The
delinquency notice fonn must carply with the requirerrents of State law.
SECTION 1.8 Registration Holds. The Contractor will. provide the
system and procedures and will interface. with the Department of M:>tor Vehicles
to place a hold on vehicle registrations having unpaid parking fines and fees
due against those vehicles in accordance with the California Vehicle Code
and other applicable State and local laws. The holds will be placed within a
reasonable period of tiIre after the issuance of a delinquency notice. The
period of tiIre will not exceed the tiIre limits provided by State law.
SECrION 1.9 Rerroval of Registration Holds. Contractor will
provide the system and procedures and will interface with the Depa.rtIrentof
M:>tor Vehicles to rerrove registration holds when a registered vehicle owner
satisfies the .entire arrount of parking citation fines, penalties, and fees
due against the vehicle and establishes such payment to the satisfaction of
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1 Contractor.
2 SECTION 1.10 Contested Citations. In the event a registered
3 vehicle owner disputes the liability for the outstanding parking citation,
4 CoRtractor shall advise the registered vehicle owner of his/her right to
5 request a court appearance. The Contractor will coordinate a court appearance
6 for the registered vehicle owner to the court. The County Municipal Court
7 will establish this process with the Contractor.
8 SECTION 1.11 Citations DisfX)sed of by Court. The Contractor may
9 be required, as a result of court action, to reduce or cancel, on an
10 individual basis, parking citations which have been referred to it. Contractor
11 shall be paid the contractual rate hereinafter provided for processing the
12 citation regardless of the outcome of court action. Contractor shall maintain
13 records indicating any. rE:Xiuction or cancellation of parking citations as a
14 resul t of court action.
15 SECTION 1.12 Suspension of Processing. Contractor shall suspend
16 processing any citation referred to it for processing ufX)n written notice to
17 do so by Vernon. Contractor will return any citation requested to Vernon.
18 Contractor shall maintain records indicating any suspension of citation. as
19 a result of Vernon's request. Contractor shall be paid the contractual rate
20 hereinafter provided for processing the citations suspended by Vernon.
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ARI'ICLE II - GENERAL
SECTION 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.
SECTION 2.2 Contractor Limitations. Contractor may not do any
of the following without Vernon's Prior approval, in writing:
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a) Take any legal action;
b) Threaten any legal action; or
c) Hake any ccmnunication, oral or written, regarding
potential legal action.
SECTION 2.3 Use of Approved Fonns. All forms, delinguency.
notices, and correspondence sent by the Contractor must conform to State and
local law.
SECTION 2.4 Books and Records. Contractor shall maintain
separateb::>oks and records within the State of California for parking citations
issued within Vernon's jurisdiction and referred to Contractor for processing.
Such l:xx:>ks and records shall be available for inspection and audit by Vernon
at all reasonable .tiIres without prior notice to Contractor.
SECTION 2.5 Contractor Files. Contractor shall maintain files
on each parking citation referred to it for processing under. this agrearent.
Such files will contain records of payments, collection efforts, disposition,
and any other pertinent information required to provide an audit trail.
SECTION 2.6 Offices of Contractor. Contractor shall establish and
maintain throughout the period of this agreement and any extensions thereof 1
an office within the State of California, for the processing of parking
citations, the rnaintenance of telephones, and the receipt of mail or other
correspondence or inquiries relating to citations referred to Contractor
under this agrearent.
SECTION 2. 7 Citations, files, l:xx:>ks, records, and other documents
generated by Contractor in the performance of this agrearent shall be deemed
property of the Agency.
ARI'ICLE III - CONTFACT PRICE
SECTION 3.1 Basis of Fee COmputation. The fee due and payable
to Contractor will be canputed on. a pE;!r ~king citation basis. Each parking
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1 citation assigned to Contractor for processing shall be utilized in. carputinq
2 the fee. Once the initial fee has been charged by parking citation, no
3 additional costs can be charged by Contractor to pursue collection except
4 as defined in Article III, Section 3.3, of this agreenent.
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6 SECTION 3.2 Rate. The fee for the first year of the agreement
7 is one dollar and thirty-five cents ($1.35) per parking citation. The fee for
8 the second and third year agreemants (provided that the contract is renewed
9 in accordance with .the provisions hereinafter set forth) would beCOIIputed as
10 follows:
11 Year Two: One dollar and thirty-five cents ($1.35) plus a
12 cost-of-living adjustment as hereinafter defined, not to exceed a maxiInum rate
13 of one dollar and fifty cents ($1.50) per citation. The cost....of-living
14 adjusbrent shall be canputed as the percentage increase in the annual average
15 Consumer Price Index for All Urban Consumers (1967 = 100) for the Los Angeles
16 Area as published for year-ending June 30, 1981, as compared to year-ending
17 June 30, 1980.
18 Year Three: The second year rate per citation (exclusive
19 of any postal rate increase) plus a cost-of-living price adjustrrent based on
20 the percentage increase in the Consumer Price Index for the year-ending
21 June 30, 1982, as compared to the year-ending June 30, 1981, not to exceed
22 a maximum rate of one dollar and sixty-five cents ($1.65) per citation.
23 SECTION 3.3 Postal Rate Increases. Postal rate increa.ses for
24 first....class mail after March, 1981 and subsequently during the period of this
25 agreerrentwill autanatically increase the per citation processing fee as
26 hereinafter set forth. The increase will be effective on the date that the
27 postal rate increase takes place. The anount of the per citation processing
28 fee increase will be calculated as follows: The Contractor will maintain
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1 adequate records to document the COntractor's actual increase in postage co(';)ts
2 associated with the mailing of delinquency notices for unpaid citations and
3 for other mailings related to the processing of correspondence, etc.,
4 concerning any citations. These actual costs will be distributed over the
5 total number of citations received during .the remainder of the contract period
6 for which the increased fee is in force in order to compute a per citation
7 increase. This increase will be added to the per citation fee. The COntractor
8 is hereby authorized to estimate the per citation increase (not to exceed the
9 actual increase) and include it in his billings for citations received after
10 the postal rate increase is effective. COntractor's billing for the last
11 month of the contract tenn shall show the actual increased costs and adjust
12 the per citation fee and resulting anount due from (or to) Vernon to reflect
13 actual increased costs over the entire period during which the increased fee
14 was in force.
15 SECTION 3.4 tII..aximurn Charges. The citation fee charged to Vernon
16 hereunder represents. the maximum cost to be charged to Vernon in the absence
17 of any other written agreerrent.
18 ARl'ICLE IV - REPORI'S
19 SECTION 4.1 M.:>nthly Reports. Beginning the rnonth following the
20 date of this agreerrent, and on or before the 15th of each rnonth thereafter,
21 the Contractor shall sul:mit to Vernon. rnonthly reports of its activities
22 relating to performance under this agreerrent, including but not limited to
23 a surrmary of collections, parking citations processed (including statistics
24 by issuing< agency and type of violation), deliIX1Uent citation notices sent,
25 and delinquent notices paid, vehicle registration holds placed with the
26 Depart:rnent of Motor Vehicles.
27 ARl'ICLE V - TERM OF CONTRACT
28 SECTION 5.1 Tenn and Renewals. The tenn of this agreement shall
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be for the period comrencing July 1, 1981, and ending June 30, 1982 and, if
no notice of change or termination is given by Vernon, the agreerrent shall be
autanatically renewed for t\'K) additional one-year periods, on the same terms
and conditions provided herein.
ARl'ICLE VI - CONFIDENTIALITY
SECTION 6.1 Paterials Confidential. All reports, infonnation,
data, files, and tapes furnished or prepared by the Contractor, its sub-
contractors, successors or assigns (to the extent hereinafter aYlowed) for
the purpose of transmittal to Vernon pursuant to this agreement are con-
fidential.
SECTION 6.2 Consent Required for Disclosure. No report, in-
formation, data, files or tapes furnished or prepared by Contractor or its
subscontractors, successors or agents, shall be made available to any
individual or organization without the prior vrritten approval of Vernon other
than individuals or organizations who are reasonably necessary to properly
effectuate the terms and conditions of this agreement.
ARI'ICLE VII -: CI.AIr-1S AND ACTIONS
SECTION 7.1 Reasonable Assistance of Contractor. In the event
any Claim or action is brought against Vernon relating to Contractor's
performance or services rendered under this agreement, Contractbr shall
render any reasonable assistance and cooperation which Vernon might require.
SECTION 7.2 Vernon Cooperation. In the event any claim or
action is brought against Contractor relating to Contractor's performance of
services rendered under this agreen:ent, Contractor shall notify Vernon, in
writing, within five (5) days, of said claim or action.
SECTION 7.3 Indemnification. Contractor agrees to indemnify and
hold Vernon harmless against any and all liability, costs, and expenses, in-
cluding attorney's fees, occasioned by claims or suits for loss or damages
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1 arising out of acts of the agents, servants, employees, successor, or assigns
2 (to the extent. hereinafter allowed) of Contractor during the term of this
3 agreement. Conversely, Vernon agrees to indemnify and hold Contractor
4 harmless against any and all liabilities, costs, and expenses, including
5 attorney's fees, occasioned by claims or suits for loss or damages arising
6 out of the acts of the agents, servants, or employees of Vernon.
7 SECTION 7.4 Bonds and Insurance. Contractor agrees to furnish
8 the following. bonds and insurance policies prior to the COIl11'eIlcerrent or\\Qrk
9 under this agreernent arrl agrees to maintain them throughout. the term of this
10 contract and any renewals thereof:
11 a) A corrq:>rehensive all-risk policy and/or bond naming Vernon
12 as an insured or real party in interest covering any and all personal property
13 of Vernon,. including but not limited to cash, checks and noney orders against
14 the loss, damage or destruction frcm any cause, including but not limited to
15 ernbezzlerrent, forgery, larceny, or robbery while such property is in the
16 custody or control of the Contractor or any of its subcontractors, agents,
17 employees or assiglts (to the extent hereinafter allowed). Liability under
18 this policy shall be limited to tv.D hundred thousand dollars ($200,000);
19 b) A public liability policy naming Vernon as an insured,
20 and as a real party in interest covering the collection activities of the
21 Contractor and its directors, officers, partners, employees and agents, for
22 personal injury, property damage, defamation, invasion of privacy, negligent
23 and intentional infliction of emotional distress, and violation of civil
24 rights in the upper limits of t\oKl hundred and fifty thousand dollars ($250,000)
25 per individual and five hundred thousand dollars ($500,000) per occurrence:
26 c) \Vorkers' Corrpensation and Employers Liability. Contractor
27 shall obtain .and keep in full force and effect ccmpensation and liability
28 insurance necessary in connection with the performance of this agreernent to
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1 protect itself and its employees under the Workers' Compensation Insurance
2 and Safety Act. Such insurance shall relieve Vernon from all responsibility
3 therefor.
4 d) With respect to the policies of insurance and/or bonds
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required of Contractor under subparagraphs (a), (b),. and (c) hereof, Contracto
shall supply Vernon with a suitable staterrent certifying to the appropriate
protection and defining the terms of the applicable policy and/or bond issued
wi thin thirty (30) days of the execution of this agreerrent.
ARI'ICLE VIII - SUBCONTRACTORS
SOCTION 8.1 Subcontracting. Contractor is authorized to engage
subcontractors within the State of California at Contractor's own expense.
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ARI'ICLE IX - INDEPENDENT CONTRACIDR
SECTION 9.1
Contractor's Relationship.
Contractor's relationship
to Vernon in the performance of this agreerrent is that of an independent
contractor.
Personnel performing services under this agreerrent shall at all
times be under Contractor's exclusive direction and control and shall be
employees of Contractor and not employees of Vernon. Contractor shall pay
all wages and salaries and shall be resp:msible for all reFOrts and obligations
respecting them relating to social security, income tax withholding, un-
20 employment compensation, v.orkers' compensation, and similar matters. Nei ther
21 Contractor nor any agent or employee of Contractor shall obtain any right to
22 retirerrent benefits or other benefits which accrue to employees of Vernon,
23 and Contractor hereby expressly waives any claim it might have to such risrhts.
24 ARI'ICLE X - ENTIRE AGREEMENT
25 SECTION 10.1 Integrated Agreerrent. This contract is intended
26 by the parties as a final expression of their agreerrent and also as a complete
27 and exclusive stat.em:mt of the terms thereof, in a prior oral or written
28 agreerrent regarding the sane subject matter notwithstanding. This agreement
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may not .be rrodified or terminated orally, and no rrodification or any claim
of waiver of any of the provisions shall be effective unless in writing and
signed by b::>th parties.
SECTION 10.2 Law Applicable. Contractor agrees to oomply with
all laws within the State of California governing the conduct of business,
including butno.t limited to laws pertaining to licenses, taxes, corporate
regulation, and collection practices.
SECTION 10.3 Notices to Parties. Any notice required under this
Agreenent to .be given to either party may be given by depositing in the United
States mail, PJstage prepaid, first-class, a notice addressed to the following:
Bruce V. Malkenhorst
City Administrator/City Clerk
4305 Santa Fe Avenue
Vernon, CA 90058
Datacom Systems Corporation
17900 Skypark Circle, Suite 201
Irvine, CA 92714
IN \VITNESS WlfEREY)F the parties hereto have executed thisagreerrent,
or caused it to .be executed as of the day, rronth and year first above written.
CITY OF VERNON
By
LIDNIS C. ~ALBURG, r-~yor
ATTEST:
By
BRUCE V. MALKENHORST, City Clerk
DATAca1 SYSTEMS CORPORATION
By
APPROVED AS TO FORM:
By
DAVID B. BREARLEY, City Attorney
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