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Agenda 12/15/2009 Item #16F 1 Agenda Item No. 16F1 December 15, 2009 Page 1 of 3 EXECUTIVE SUMMARY Recommendation to approve a fiscal year 2010 budget amendment establishing dedicated appropriations covering anticipated contraclor and administrative expenses associaled with the Intersection Safety Program. Fiscal Impact $841,000. OBJECTIVE: Establisb budget appropriations in FY 2010 covering anticipated Intersection Safety Pro!,'Tam expenses. CONSIDERATIONS: Ordinance 2008-22 adopted by tbe Board of County Commissioners (Board) on April 22, 2008 established the Intersection Safety Pro!,'fam, which utilizes unmanned cameras to encourage vcbicle owners to ohey traffic control devises. The agreement for intersection safety camera enforcement with American traffic Solutions (ATS) was entered into on February 10, 2009. Since initial program autborization, tbe Board altered the fee structure througb a subsequent ordinance amendment on Octoher 13, 2009; establishing a tiered system whereby a first and second notice would yi.eld fees of $62.50 and $75.00 respectively. A third and all subsequent notices thereafter would result in a fee of $1 00.00. The original fee for all issued notices was $125.00. - With the pro!,'fam in its initial stages of operation and recognizing that contractor and administrative expenses have and will continue to be incurred, it is appropriate to establisb an initial FY 20 I 0 budget to cover contractor invoices from A TS and administrative expenses which to date are part time job bank costs under Code Enforcement associaled witb tbe volume of onsite citation inquiries and payments. By far the vast majority of program expenses are contractor payments. For tbe most part, existing permanent staff at the Sheriffs Office, Tbe Clerk's Finance Office, Transportation and Code Enforcement is ahsorhing the management and administration of this pro!,'fam. The Board will recall that compensation for ATS under the contract is based upon monthly paid notice volume. Tbe County's cost per notice paid is reduced as the number of paid notices increase. Specifically the contract provides that $47.50 per paid notice is remitted to the vendor for the first 89 monthly notices per camera. Thereafter, the vendor fee drops to $27.50 and this fee is applied to the next 90 to 149 paid monthly notices per camera. Monthly paid notices per camera above 150 are invoiced at $]7.50 per notice. In addition, a supplemental fee 01'$3.70 per notice is applied to cover certified mail costs. As of November 30, 2009, the County has remitted a total of $179,863 to ATS, In addition, during the current fiscal year, Code Enrorcement has expended $1,614 in palt time job bank salaries. Other costs connected with the special magistrate process and program/contract administration may run between $25,000 and $35.000 annually. -- Agenda Item No. 16F1 December 15, 2009 Page 2 of 3 The following table provides a description of the expenses incurred to date plus a projection of program expenses anticipated through fiscal year 2010. Actual Pniected Total (FY) Contractor County Contractor County Contractor County (ATS) (ATS) (ATS) FY 09 $30,570 $0 $0 $0 $30,570 $0 $149,293 $1,614 .-- $40,000 $799,293 FY 10 $650,000 $41,614 (through (through (remaining (remaining November November FY) FY) 2009) __ JOO~) While it is difficult to project A TS expenses, monthly paid notices will covcr expenses associated with the program. As of Novemher 30, 2009, notice revenue collected totals $622,487. Of this amount, $287,165 was collected during FY 2009 and $335,322 has been collected thus far (through November 2009) in FY 20 I O. All notice revenue collected has becn deposited within the Board's General Fund (001). General ProLJTam Comments: A deployment team consisting of the governmental stakeholders in this program was created shortly after pro!,'Tam inception and is meeting regularly to address administrative, logistical, contractual and process flow issues which often arise with a prO!:,'T3m of this nature after inception. Modifications to the vendor contract will be required to reflect recent Board action adjusting the rate structure. Additional contract modifications related to collections as well as the responsibilities of ATS and the County will be discussed based upon actual program occurrences. Contract amendments will he presented to the Board at the appropriate time. FISCAL IMPACT: A separate cost center within the Board's General Fund (001) will be established to account for and track pro!,'Tam revenues and expenses. A budget amendmcnt totaling $841,000 will be necessary to recognize program revenue and set up the ceJlTesponding expense appropriations. Contractor, part time job bank expenses and other probrram expenses which have been paid from other appropriation centers will bc reversed and posted to this new General Fund cost center. GROWTH MANAGEMENT IMPACT: None. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office and it does not present a legal issue---SRT. RECOMMENDATION: To approve a budget amendment in the amount of $841,000 which recognizes revenue and sets up corresponding pro!,'Tam expenses sufficicnt to administer the Intersection Safety Program. Prepared by: Mark Isackson, County Manager's OfJice ~ Corporate Financial and Management Services Agenda Item No. 16F1 December 15, 2009 Page 3 of 3 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Ilem Number: Item Summary: 16Fl Recommendation to approve a fiscal year 2010 budget amendment establishing dedicated appropriations covering anticipated contractor and administrative expenses associated with the Intersection Safety Program. Fiscal Impact $841,000. 12/15/2009 9:00:00 AM Meeting Dale: Approved By OMS Coordinator Date County Manager's Office Office of Management & Budget 1217120093:41 PM Approved By Scott R. Teach Deputy County Attorney Date County Attorney County Attorney 12/7120093:43 PM Approved By Robert W. Tipton, P.E. Director - Traffic Operations Date Transportation Division Traffic Operations 1218120099:24 AM Approved By Jeff Klatzkow County Attorney Date 1218/200911:15 AM Approved By Therese Stanley Manager - Operations Support - Trans Date Transportation Division Transportation Administration 121812009 1: 35 PM Approved By Diane B. Flagg Director - Code Enforcement Date Community Development & Environmental Services Code Enforcement 1218/20092:19 PM Approved By Mark Isackson Management/Budget Analyst, Senior Date Office of Management & Budget Office of Management & Budget 1218120092:29 PM . ~ r