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HomeMy WebLinkAboutItem #06 Approval of Extension of the Agreement with American Traffic Solutions, LLC Pertaining to the Red Light Running Camera Enforcement SystemAGENDA ITEM COVER SHEET Meeting Date: August 19, 2014 Item # Contact Name: Contact Number Reviewed By: Lieutenant Brad Dreashe Department Director: Chief C 407 - 905 -3160 ext. 3028 City Manager: Robert Franl Subject: APPROVAL OF EXTENSION OF THE AGREEMENT WITH AM9RICAN TRAFFIC SOLUTIONS. LLC PERTAINING TO THE RED LIGHT CAMERA ENFORCE SYSTEM Background Summary: The City of Ocoee desires to ensure the safety of the citizens that travel the roadways within the city limits. The disregard of traffic control signals within intersections poses a threat to all citizens who travel our roadways. The current contract with American Traffic Solutions (ATS) expires December 02, 2014, The City has an option, in its sole discretion, to further extend the term of this contract for an additional two (2) years. Accordingly, following execution of this Amendment the term of the Agreement shall expire and terminate on December 02, 2016. Issue: Should the Honorable Mayor and Board of City Commissioners approve this Amendment of the two (2) year extension of the Agreement with ATS? Recommendations It is recommended that the Honorable Mayor and Board of City Commissioners approve the Agreement with ATS? Attachments: Contract reviewed by Shuffield & Lowman Financial Impact: The City of Ocoee has previously selected a Flat Fee per camera per month under "Option 1.0 of Exhibit B to the first Amendment Option 1 provides for certain adjustments based on ATS's actual cost of service. Notwithstanding any provision contained in the Agreement to the contrary, ATS agrees that any adjustment based on ATS's actual cost of service as provided in "Option 1" shall not become effective until after ATS has provided the City with one hundred eighty (180) days prior written notice of such adjustments. t 4-�f Ocoee Mayor S. Scott Vandergrift City Manager Robert Frank fIorida Type of Item (please mark with an z') Public Hearing Ordinance First Reading Ordinance Second Reading Resolution X Commission Approval Discussion & Direction X Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney Robin Drage Reviewed by Finance Dept. Reviewed by Q Commissioners John Grogan, District 1 Rosemary Wilsen, District 2 Rusty Johnson, District 3 Joel F. Keller, District 4 For Clerk's Dept Use: Consent Agenda Public Hearing Regular Agenda City of Ocoee • 150 North Lakeshore Drive • Ocoee, Florida 34761 phone: (407) 905 -3100 • fax: (407) 905 -3167 • www.ocoee.org Ike %/� Ocoee florida August 18, 2014 American Traffic Solutions 7681 E. Gray Road Scottsdale, Arizona 85260 Mayor S. Scott Vandergrift Commissioners John Grogan District 1 Rosemary Wilsen District 2 Rusty Johnson District 3 Joel F. Keller District 4 City Manager Robert D. Frank Police Chief Charles J. Brown Re: City of Ocoee Services Two Phase Agreement with American Traffic Solutions, LLC Pertaining to Red Light Camera Enforcement System Dear Sir or Madam: Pursuant to Section 3 of Amendment No. 2 of the above - referenced Agreement, the City of Ocoee, in its sole discretion, has the option to extend the term of the Agreement for two additional years. Please be advised that the Ocoee City Commission has authorized the two year extension. Therefore, the Agreement shall terminate on December 2, 2016. Regards, S. Scott Vandergrift Mayor of Ocoee Cc: Charles Brown, Police Chief Rob Frank, City Manager Scott Cookson, City Attorney City of Ocoee Police Department • 646 Ocoee Commerce Parkway • Ocoee, Florida 34761 Phone: (407) 905 -3160 • Fax: (407) 905 -3164 • www.ocoee.org AMENDMENT NO.2 TO CITY OF OCOEE SERVICES TWO PHASE AGREEMENT WITH AMERICAN TRAFFIC SOLUTIONS LLC PERTAINING TO RED LIGHT RUNNING CAMERA ENFORCEMENT SYSTEM THIS SECOND AMENDMENT TO CITY OF OCOEE SERVICES TWO PHASE AGREEMENT WITH AMERICAN TRAFFIC SOLUTIONS, LLC PERTAINING TO RED LIGHT RUNNING CAMERA ENFORCEMENT SYSTEM (this "Amendment ") is made and entered as of the 1ST day of /W u , 6 rba 2011 by and between the CITY OF OCOEE, a Florida municipal corporation (hereinafter referred to as the "City ") and AMERICAN TRAFFIC SOLUTIONS, LLC, a Delaware limited liability company (hereinafter referred to as the "ATS" or "Contractor "). PREMISES WHEREAS, the City and Contractor have entered into that certain City of Ocoee Services Two Phase Agreement with ATS Pertaining to Red Light Running Camera Enforcement System dated December 2, 2008, as amended by First Amendment thereto dated July 23, 2010 (the "Agreement "); and WHEREAS, the term of the Agreement is scheduled to expire on December 2, 2011; and WHEREAS, Section 11(d) of the Agreement provides that the Agreement may be renewed by the parties for a maximum total of an additional five (5) years; and WHEREAS, the City and Contractor desire to extend the term of the Agreement and to make other changes to the Agreement as set forth herein. WITNESSETH NOW, THEREFORE, for and in consideration of the sum of Ten Dollars ($10.00) and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, City and Contractor hereby agree as follows: 1. The above recitals are true and correct and are incorporated herein by reference. 2. All capitalized terms used herein shall be as defined in the Agreement unless otherwise indicated or defined in this Amendment. 3. The term of the Agreement is hereby extended for an additional three (3) years, (an ith the option of the City, in its sole discretion, to further extend the term of the Agreement for additional two (2) years. Accordingly, following execution of this Amendment the term of the greement shall expire and terminate on December 2, 2014, subject to a further extension as erein provided. 4. Section 24(A) of the Agreement is hereby amended to ready as follows: (Revised 1/2612010) 4823 - 3176 - 6029.1 "(a) Notwithstanding any other provision of this Agreement, the City shall have the right at any time to terminate this Agreement in its entirety without cause; provided that ninety (90) calendar days prior written notice is given to the Contractor of the City's intent to terminate." 5. The parties acknowledge that the City has previously selected the Flat Fee per camera per month under "Option 1" under Section 1.0 of Exhibit B to the First Amendment. Option 1 provides for certain adjustments based on ATS's actual cost of service. Notwithstanding any provision contained in the Agreement to the contrary, ATS agrees that any adjustment based on ATS's actual cost of service as provided in Option 1 shall not become effective until after ATS has provided the City with one hundred eighty (180) days prior written notice of the such adjustment. 6. Except as amended hereby, the Agreement remains unchanged and in full force and effect, and each of the parties hereto hereby ratifies and confirms the terms and conditions of the Agreement. All references herein to the Agreement shall refer to the Agreement as amended by this Amendment unless the text or context indicates otherwise. In the event of any conflict between the Agreement and this Amendment it is agreed that this Amendment shall control. 7. This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original instrument, but all such counterparts shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have set their hands and seal as of the day and year first above written. Signed, sealed and delivered in the presence of: For use and reliance only by the City of Ocoee, Florida• pproved to form and legality this day of 2011 2011 Foley Lardner B l Y• City Attorney CITY OF OCOEE By: ' S. Scott Vandergrift, Mayor Attes : — e ikenberry, City Clerk APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON N u�eamb ►_ , aU 1 UNDER AGENDA ITEM NO. 4823 - 3176- 602 -2- CONTRACTOR Signed, sealed and delivered in the presence of: AMERICAN TRAFFIC SOLUTIONS, LLC, a Delaware limited liability company � By: f�tiv�v� ,.tom Name: Title: Co C (SEAL) 4823 - 3176 - 6029.1 -3- EXHIBIT B , SERVICE FEE SCHEDULE 1.0 Description of Pricing Fee Fees are based on per Camera and are as follows: . Option 1 : Flat Fee per Camera per Month. In addition to the fee, Customer $4,750 shall pay (1) a surcharge of $4 per piece of certified mail (no return receipt) for mailing Uniform Traffic Citations and (2) a surcharge of $1.65 per returned, uncashed check mailed by ATS to a person receiving a Notice of Violation, subject to adjustment based on ATS's actual costs of such service. Option 2 : Lane based pricing. In addition, Customer shall pay (1) a surcharge of $4.00 per piece of certified mail (no return receipt) for mailing Uniform Traffic Citations and (2) a surcharge of $1.65 per returned, uncashed $3,750 check mailed by ATS to a person receiving a Notice of Violation, subject to $4,750 adjustment based on ATS's actual cost of such service $5,750 • For 1 or 2 lanes • For 3 or 4 lanes • For 5 or 6 lanes Option 3 : Base Fee Per Camera Per Month, plus flat fee per service unit for $2,750 individual work elements. • For violation data transmission, first review, second quality review service, supervisory review, Traffic Infraction Enforcement Officer (TIEO) access and review portal $6.50 • Data acquisition fee per registered owner match $3.50 • Mail printing, processing, and handling service includes Notice of Violation (NOV) by first class mail and UTC by certified mail including bad address processing and remailing. $7.50 • Inbound call /customer service $4.50 • Affidavit processing service $4.50 • Payment processing service $1.50 • Data archival service $1.50 • Return of uncashed check to violator $1.65 Service Fees Include Fee includes all costs required and associated with camera system installation, maintenance and on -going field and back -office operations. Includes red -light camera equipment for a 4 -lane approach (except for Option 2) with up to two (2) signal phases, installation, maintenance, violation processing services, DMV records access, mailing of Notice of Violation in color with return envelope, lockbox and epayment processing services, call center support for general program questions and public awareness program support. Note: Customer will notify ATS which Pricing Fee Option to utilize within 30 days of Amendment being executed by both parties. 2.0 Flexible Payment Plan During the term of the contract, payments by the City may be made to Contractor under a Flexible Payment Plan. Under the Flexible Payment Plan, the City may defer certain payments to Contractor until the City has collected sufficient funds pursuant to the terms of the contract. If, at the end of the term of the contract, sufficient funds have not been collected by the City to pay the balance then due to Contractor, Contractor; agrees to waive its right to recovery of any outstanding balance. For purposes of this clause, the term 'funds" means the revenue retained by the City from the operation of the Red Light Camera System according to the distribution methods applicable under this contract and applicable state law. This Flexible Payment Plan will be applied as follows: Contractor will mainteon an accounting of any net balances owed to Contractor. If the funds collected by the City during a billing period exceed the amount of Contractor Invoices during the same period, the City shall pay Contractor the total amount due. If the funds collected by the City during a billing period are less than the Confidential Page 14 of 15 Ocoee, FLATS Contract Amendment_2010.07.20 City of Ocoee, FL