February 1, 2022
Police Department
DATE: February 1, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Louie Tirona, Acting Chief of Police
Subject:
Proposed 2-year sole-source contract with T2 Systems
(referred to as “T2”) to provide citation services,
collection services support, and data transfer to California Department of Motor Vehicles.
FINANCIAL IMPACT: Funding will come from the Police Department budget for the period July 1, 2021 through June 30, 2022, in the
amount of $16,176, and the Police Department will
budget accordingly for the period July 1, 2022 through
December 31, 2022, in the upcoming budget cycle
(account string 01191021-400201).
PREVIOUS COUNCIL
ACTION:
(List all dates items were heard or
council action took place)
Click or tap here to enter text.
STATEMENT OF THE
ISSUE:
The Police Department has been using T2 Systems
(“T2”) since 2015, after T2 submitted the lowest bid
during a Request for Proposals. Since then, T2 Systems
has converted hand-written citations to electronic format, managed collections, and communicated with California
(and out-of-state DMVs) to place holds on registration
services for unpaid citations, and to report collections as required by law (Government Code 76000). T2’s contract
is now expired and needs payment for services rendered.
AGENDA
REPORT
February 1, 2022
RECOMMENDED ACTION:
APPROVE a 2-year sole source contract with T2
Systems for an amount not to exceed $50,000, for the
period January 1, 2021, to December 31, 2022 – Police
Department (Louie Tirona 510-621-1802).
DISCUSSION:
T2 Systems won the bid during the Request for Proposals (RFP) process that ended in late 2014. The RFP was put out to bid because the services with the prior vendor, DataTicket, were ending. T2 Systems has been able to streamline our citation process and has alleviated the burden of mailing letters and calling ticketed offenders to collect on past due balances. Additionally, T2 has worked seamlessly with the State of California to report the data collected and lawfully required. Since their prior amended contract ended, T2 Systems has continued with services according to those last approved (which includes the first amendment revision that adds the responsibility that T2 will give customer refunds for any overpayment). T2’s business model is of such that their expenses are deducted from the revenue collected by them – the City receives the excess revenue greater than T2’s expenses; however, the pandemic that started in 2020 drastically lowered the ticketing revenue so much so that T2’s cost for services (i.e. collections) has exceeded the revenue being collected for several months of 2021, and now Richmond Police Department owes T2 for their services that were provided. A new RFP will be submitted prior to December 31, 2022.
DOCUMENTS ATTACHED:
Attachment 1 - T2 Standard Contract with Attachments contract 5913 Attachment 2 - Executed Contract Amendment 12302020
Attachment 3 – Approved Sole Source
Attachment 4 – IT Authorization
Attachment 5 - After the Fact Authorization Form-T2 Systems