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Home My WebLink About25D - AGMT ANIMAL LICENSE FEEREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 6, 2017 TITLE: FIRST AMENDED AGREEMENT FOR ANIMAL LICENSE FEE COLLECTION PROGRAM WITH CIVIC COLLECTIONS, INC. ISTRATFGIC PLAN NO 7_-5FS RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 151 Reading ❑ Ordinance on 2"" Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute a two-year amended agreement with Civic Collections, Inc., for canvassing and collection of new and delinquent dog license fees and penalties, effective July 1, 2017 through June 30, 2019, with the option to extend one additional year from July 1, 2019 through June 30, 2020 upon a written request executed by the City Manager, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Treasury & Customer Service Division of the Finance and Management Services Agency ("Treasury") is responsible for the processing of applications and fees for dog licenses. The authority to collect dog license fees is provided by State statute for this effort. In addition, the State Health and Safety Code (Sections 121575-121710) require that local agencies implement a program that provides for the control of rabies. As such, Treasury's dog licensing program serves to verify the ownership and rabies compliance of dogs within the City in support of the Police Department's animal control program. Community field inspection and collection efforts are a critical component of the dog licensing program. In 2012, the Police Department and Treasury released a Request for Proposals (RFP) relating to field inspection and collection services in which Civic Collections, Inc. ("CCI"), the incumbent animal license fee collection service provider, was the sole responder. As a result of the limited response, which reflects the specialized nature of the services provided and the limited market for such services in Orange County due to the majority of local cities having historically contracted with the county for their animal control services, the Police Department decided to bring the Feld canvassing and collection process in-house on a trial basis in the 2012- 25D-1 First Amended Agreement With Civic Collections, Inc. For Animal License Fee Collection Program June 6, 2017 Page 2 2013 fiscal year period. However, after a one year trial results did not meet expectations and a decision was made to re -contract with CCI. On August 5, 2013, the City Council approved a re -instated agreement with Civic Collections, Inc. (Agreement # A-2013-121) for collection of new and delinquent dog license fees and penalties, covering a two year period ending June 30, 2015, with a provision allowing for up to three successive two year extensions. Subsequently, in accordance with a City Council desire to limit net optional contract extensions to five years or fewer, Treasury, in July 2015 negotiated a new superseding agreement with CCI for a single year term ending June 30, 2016, with an option for a single year extension ending June 30, 2017 (Agreement A-2015-125). The City Manager exercised the City's option on June 27, 2016, extending the contract through June 30, 2017. The field inspection and collection efforts provided by CCI have resulted in a significantly higher rate of revenue recovery than experienced using in–house resources. As such, the City is seeking to maintain the relationship with CCI which promotes quality of service and increased efficiency. Since the re -commencing their dog license canvassing and collection services for the City, CCI has collected/generated the following amounts for the City (revenues - net of fees): 9 FY 2013-14 — $119,477 • FY 2015-16 — $113,329 • FY 2014-15 — $130,256 • FY 2016-17 — $116,500 (projected) During the recommended two-year term of the amended agreement CCI will continue to be compensated for dog license canvassing and collection services at the current rate as follows: • Fifty percent (50%) for each dog license fee collected by CCI, • Fifty cents (50¢) for each new dog license registered via CCI, and • Fifty cents (50¢) for each rabies vaccination certificate issued via CCI. In providing an option for a one year extension of the CCI agreement to June 30, 2020, staff is allowing extra scope for review of possible alternative dog license software replacement scenarios, including an internally developed application, as well as third -party software, and software as service models. The selection of a dog license software replacement plan will directly affect any future dog licensing canvassing & collections RFP which may in turn encourage additional qualified vendors to bid for these services. Accordingly, after the selection of a dog license software replacement plan and prior to the conclusion of the amended agreement staff will issue an RFP for future dog license canvassing and collection services. 25D-2 First Amended Agreement With Civic Collections, Inc. For Animal License Fee Collection Program June 6, 2017 Page 3 STRATEGIC PLAN ALIGNMENT Approval of this item assists the City in meeting Goal #7 - Team Santa Ana, Objective #5F (explore opportunities to engage with outside agencies, both private and public, to share information and increase efficiencies). FISCAL IMPACT As payment for services is contingent upon successful collection, CCI will share in the total revenue recovered from their canvassing/collection efforts and paid from dog license revenue account (no. 01110002-51003) for fiscal year 2017-18, fiscal year 2018-19, to include fiscal year 2019-20 if the additional optional extension under the terms of said amended agreement is exercised. APPROVED AS TO FUNDS AND ACCOUNT: QI�A�l Francisco Gutierrez Executive Director Finance and Management Services Agency EXHIBIT: 1. First Amended Agreement ISE 25D-3 25D-4 W:/:i FOR a FIRST AMENDMENT TO AGREEMENT THIS FIRST AMENDMENT TO AGREEMENT, made and entered into this 6" day of June, 2017 by and between Civic Collections, Inc., a California corporation (hereinafter "Consultant"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "City'). RECITALS: A. The parties entered into a dog license fee canvassing and collections agreement (Agreement #A-2015-125) dated July 8, 2014 (hereinafter "said Agreement") by which Consultant has provided payment processing services to the City. B. The Tenn of said Agreement was one year effective as of July 1, 2015 and ending June 30, 2016, with an option, exercisable by the City, to extend said Agreement for an additional one (1) year period covering July 1, 2016 through June 30, 2017. C. On June 27, 2016, City exercised its option to extend said Agreement for a second year (Consultant Extension #A-2015-125). D. In accordance with the terms and conditions of said Agreement, the parties wish to amend the Term to provide for an additional two year period beginning July 1, 2017 and "ending June 30, 2019 with an option, exercisable by the City Manager and City Attorney, to renew said Agreement for an additional one (1) year period covering July 1, 2019 through June 30, 2020. E. The parties also wish to amend the Scope of Services to provide a Change Order Contingency. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1, Section l of said Agreement, "SCOPE OF SERVICES" shall be amended to read as follows: 1. SCOPE OF SERVICES a. Consultant shall collect delinquent dog license fees and penalties, and license fees for new dogs. Consultant will also canvas the City ofSanta Ana and collect dog license fees at the clog owner's door. The Consultant will encourage the dog owner to pay by cheek made payable to the "City of Santa Ana". Consultant will collect dog license fees at rabies clinics if requested by the City. Consultant will verify rabies certificates in connection with, the collection of dog license fees. This scope of services is intended to cover all labor, material and standards of workmanship to be employed for in this work plan or reasonably implied by terms of same. Work or materials of a major nature which may not be 25D-5 specifically mentioned, but which may be reasonably assumed as necessary for the completion of this work, shall be provided by the Consultant, b. Change Order Contingency — from time -to -time, at City's option, City may request additional dog license canvassing and collection related services of Consultant at mutually agreed upon scope and fees (to be applied as an offset to Consultant's delinquent dog license collection remittances to City). 2. Section 3 of said Agreement, "TERM" shall be amended to read as follows: This First Amendment to Agreement shall commence on July 1, 2017 and terminate on June 30, 2019, unless City exercises its option to extend the Agreement for an additional one (1) year period beginning July 1, 2019 and ending June 30, 2020, or unless terminated earlier in accordance with Section 12 of this Agreement. 3. Except as hereinabove modified, all terms and conditions of said Agreement shall remain unchanged in full force and effect, 4. This First Amendment to said Agreement must be signed below and may be signed in counterpart and delivered by fax, email as a PDF (Portable Document Format) file attaclunent, or by other means that displays the original or a copy of the signatures. Any subsequent amendments may be signed and delivered in the same manner, (Signatures on,follotivingpagej 25D-6 N WITNESS WHEREOF, the parties hereto have executed this First Amendment to Agreement on the date and year first written above. ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney Lisa Storck Assistant City Attorney RECOMMENDED FOR APPROVAL: Francisco Gutierrez, Executive Director Finance & Management Services Agency 3 25D-7 CITY OF SANTA ANA CYNTHIA J. KURTZ Interim City Manager CIVIC COLLECTIONS, INC. Douglas Shaw President Tax ID# 33-0486455 25D-8