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2011-166-1559 - Addendum to ATS Agreement City of Miami Gardens Agenda Cover Memo Council Meeting Date: September 28, 2011 Item Type: (Enter X in box) Resolution Ordinance Other X Fiscal Impact: (Enter X in box) Yes No Ordinance Reading: (Enter X in box) 1st Reading 2nd Reading X Public Hearing: (Enter X in box) Yes No Yes No X Funding Source: General fund Advertising Requirement: (Enter X in box) Yes No X Contract/P.O. Required: (Enter X in box) Yes No RFP/RFQ/Bid #: N/A X Strategic Plan Related (Enter X in box) Yes No Strategic Plan Priority Area: Enhance Organizational Bus. & Economic Dev Public Safety Quality of Education Qual. of Life & City Image Communication Strategic Plan Obj./Strategy: (list the specific objective/strategy this item will address) N/A X Sponsor Name Dr. Danny O. Crew, City Manager Department: Office of the City Manager Short Title: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, AUTHORIZING THE CITY MANAGER AND THE CITY CLERK TO EXECUTE AND ATTEST RESPECTIVELY, THAT CERTAIN SECOND ADDENDUM TO THE AGREEMENT BETWEEN THE CITY OF MIAMI GARDENS AND AMERICAN TRAFFIC SOLUTIONS, A COPY OF WHICH IS ATTACHED HERETO AS EXHIBIT “A”; PROVIDING FOR INSTRUCTIONS TO THE CITY CLERK; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING FOR AN EFFECTIVE DATE. Staff Summary: On November 14, 2007, the City Council Adopted Ordinance No. 2007‐26‐132 entitled Dangerous Intersections that provided for the enforcement of red light violations using traffic infraction detectors. Subsequently, the City entered into a contract with American Traffic Solutions (ATS) to provide services in connection with the enforcement of the Dangerous Intersections Ordinance. ITEM L-1) RESOLUTION Agreement with American Traffic Solutions 1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 In July of 2010, a new state law went into effect, which significantly changed the method under which Red light Camera Violations are enforced in the State of Florida. These changes also regulated the way that third party vendors (i.e. ATS) may be compensated by State and local governments who chose to use an outside vendor to enforce red light camera violations. In light of these statutory changes, the City amended its original contract with ATS to establish a flat fee of $7,550.00 per month, per camera to administer the dangerous intersection program. In the fourteen months since the change in the State law, the City of Miami Gardens has seen a sharp decrease in the revenues collected in association with the Red Light Camera program. These decreases can be attributed to the state mandated revenue split of red light camera violations coupled with greater awareness of the red light camera monitoring statewide. While the program is achieving its goal of changing the behavior of drivers at intersections citywide, it is important that the program continues to pay for itself in the upcoming months and years. In light of these concerns, ATS agreed to the following substantive changes: • Lowers the per camera, per month fee to $4,750.00 effective July 1, 2011; resulting in a current budget year savings of $168,000 and an estimated savings of $1 Million per year in future fiscal years; • Includes a “Most Favored Nation” clause which ensures that the City will continue to receive the most competitive rates in the State of Florida. • In exchange for these changes, City would agree to extend the current term of the ATS agreement for an additional five years, the City would not be able to terminate the agreement until 120 prior to the end of the five year term. Proposed Action: It is recommended that Council approve the attached resolution adopting Amendment No. Two to the agreement between the City of Miami Gardens and American Traffic Solutions. Attachment: Attachment A: Amendment No. Two ‐ATS