DATE: FEBRUARY 15, 2022
DEPARTMENTS: SALINAS POLICE DEPARTMENT
PUBLIC WORKS DEPARTMENT
FROM: ROBERTO FILICE, CHIEF OF POLICE
DAVID JACOBS, PUBLIC WORKS DIRECTOR
BY: TONYA ERICKSON, MANAGEMENT ANALYST
ANDREW EASTERLING, TRAFFIC ENGINEER
TITLE: AGREEMENT WITH PARKING MANAGEMENT BUREAU
RECOMMENDED MOTION:
A motion to approve a Resolution authorizing the execution of an Agreement with Parking Management Bureau (PMB) for processing services related to parking citations and resident preferential parking permits.
RECOMMENDATION:
Staff recommends that City Council approve the execution of an Agreement with Parking Management Bureau (PMB) for processing services related to parking citations and preferential parking permits.
EXECUTIVE SUMMARY:
Parking citations within the City of Salinas are issued by Salinas Police Department staff, as well as LAZ Parking via a contract administered by the Public Works Department. The processing of these citations, including collection of associated fees and Department of Motor Vehicle (DMV) holds when appropriate, are performed by an outside contractor with the appropriate expertise in this area. Resident preferential parking permits are issued to residents living within residential parking districts that specifically limit on-street parking to those area residents with a permit. The Residential Permit Parking Program is overseen by the Public Works Department, but parking permit sales and distribution are performed by an outside contractor with the appropriate expertise.
After a review of costs, revenue and quality of customer service with our current contractor, both the Police Department and Public Works Department are requesting the execution of an Agreement with PMB, a bureau within California State University – Stanislaus, for processing services related to both parking citations and preferential parking permits. This transition is scheduled to take place on March 1, 2022.
BACKGROUND:
Approximately 23,000 parking citations are written within the City of Salinas each year. Parking citations are issued by Salinas Police Department staff, as well as LAZ Parking via a contract administered by the Public Works Department. The processing of these citations, including collection of associated fees and Department of Motor Vehicle (DMV) holds when appropriate, are performed by an outside contractor with the appropriate expertise in this area. All parking citation fees are established by the City and that remains the same.
The current contractor charges on both a per-service and percentage of collection basis for processing of parking citations. The per-service charges are related to citation processing, payment processing, courtesy notice generation, per appeal level review/scanning, per appeal adjudication, and per appeal disposition letter. The contractor charges a percentage for out-of-State and delinquent collections – they charge 30% for all out-of-State collections and 32% for all delinquent collections. In contrast, PMB charges a simplified fee of $2.00 per electronic citation and $4.00 per handwritten citation. There are additional charges per level of delinquency, but those additional fees are a set amount and are less than City-approved late fees, thus there is no corresponding decrease in revenue received by the City. The only percentage-based fee charged by PMB relates to those accounts in the final level of delinquency. For these final level collections, often involving a collection agency, PMB charges 35% of the amount collected. In addition to citation-based fees, the current contractor charges the City for additional maintenance and support fees to resolve system issues or request assistance with retrieving data or generating reports. Other than the $1,200 annual data and user access subscription fee, PMB does not charge additional fees for maintenance and support.
Public Works and Police Department staff did a comparison of revenue and fees based upon historic parking citation issuance and collections and determined that services via PMB will result in both lower fees paid to the contractor and higher revenue retained by the City. Based upon limited data available, we estimate a net increase in parking citation-related revenue totaling at least $28,000 per year.
Residential Permit Parking Districts are parking zones in residential areas that specifically limit on-street parking to residents and their guests with a permit. Residential Permit Parking Districts are initiated at the request of residents who petition the City. The process requires a completed and certified petition and a parking study. Community meetings are held to develop the program for each requesting neighborhood, and the Traffic and Transportation Commission reviews the proposed program. City Council must approve the program by adopting a resolution to establish a Residential Permit Parking District.
Currently there is only one Residential Permit Parking District within the City, District 3A on the streets surrounding the Salinas Valley Memorial Hospital. Residents living in this area of the City which has already established a Residential Permit Parking District may purchase Annual Residential Permits, Annual Guests Permits or Daily Guest Permits. Only residents residing on streets within a Residential Permit Parking District may apply for these permits. Vehicle registration for each vehicle needing a parking permit along with proof of residency is required prior to the issuance of any residential parking permit.
Processing services related to parking permit sales and distribution are contracted out to a third party. Fees for Residential Parking Permits are established by the City and those fees will not change with the transition to a new contractor. The current contractor charges $4,000 for annual software costs, $5.00 per permit issued and $1.95 per correspondence to include postage. In contrast, PMB will charge $1,200 for annual software costs, $3.00 per permit issued, and $0.53 for postage. The fees charged by PMB are significantly less than those charged by the current Contractor, thus the City will be expected to retain more revenue under PMB.
The Residential Permit Parking Program operates as an enterprise fund which does not rely on the funding from external sources within the City. Fees for the permit program are aligned with the service. The City’s Residential Permit Parking Program CIP budget will be evaluated at the end the fiscal year to determine if Permit fees need to be adjusted, either increased or decreased, in order to continue providing the residential permit parking program as a sustainable service.
The City of Salinas has utilized the current contractor since 2008 and there have been significant issues with both internal and external customer service. PMB currently provides services to several other Central Coast agencies and jurisdictions including the cities of Greenfield, Marina and Seaside, as well as the Moss Landing Harbor District, CSU Monterey Bay, and Monterey Peninsula College. Local agencies working with PMB report excellent service and exceptional customer service both internally and externally.
Given the anticipated increase in City revenue, as well as the improvement in customer service, both the Public Works and Police Department are recommending the City transition to PMB for parking citation and preferential parking permit processing services via approval of this Agreement.
POLICE COMMUNITY ADVISORY COMMITTEE
The Police Chief discussed this potential Agreement during his Chief’s Report to the Police Community Advisory Committee on January 26, 2022. The Committee did not provide any comments or concerns in response to this proposed Agreement.
CEQA CONSIDERATION
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE
Approving the proposed resolution will support the City Council’s Strategic Plan Goal of Operational Efficiencies and Public Safety.
DEPARTMENTAL COORDINATION
The Police Department and Public Works Department have coordinated on the selection of this contractor and the services to be provided. The departments will coordinate with the Legal and Finance Department during the implementation process.
FISCAL AND SUSTAINABILITY IMPACT
No additional funds are requested to support this Agreement and there are no additional charges to City Residents. All fees will be deducted from the City’s monthly revenue received by the contractor. All revenue related to parking citations will be deposited into the City’s Parking Enforcement Enterprise, account number 6803.50.5448. All revenue related to Residential Parking Permits fees will be deposited into the Preferential Parking Enterprise, account number 6802.50.5447.
ATTACHMENTS:
Resolution
PMB Agreement
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