AGENDA #4t

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Budget Amendment for Closeout of the SafeLight Chapel Hill Contract

 

DATE:             June 30, 2004

 

 

Enactment of the attached budget amendment would provide the budgetary authority to allocate funds necessary for closing out the Town’s contract with ACS, Inc. for the SafeLight Chapel Hill Program.

 

BACKGROUND AND DISCUSSION

 

At its January 26, 2004 meeting, the Town Council terminated the SafeLight Chapel Hill Program and directed the Manager to close out the Town’s service contract with ACS, Inc.  Subsequently, Town staff worked with ACS to close out the project in accordance with the contract provisions.

 

According to Article 7.1 (Termination Without Cause) of the contract, ACS is entitled to recoup two separate types of fees upon termination of its contract with the Town.  Attachment 1 is an excerpt from the contract regarding termination.

 

Fee for Citations Collected as of Termination Date:

The contract entitles ACS to receive fees on a per-paid-citation-basis.  ACS issued 494 citations (including 24 warning citations), and is entitled to a payment of $15,915.00 for paid citations.

 

Termination Fee:

The contract also entitles ACS to receive 60% of the value of outstanding (unpaid) tickets.  ACS is entitled to $5,126.40 for 178 unpaid citations.

 

According to our analysis, ACS is entitled to receive a total payment of $21,041.40 to close out the SafeLight service contract with the Town.  The Town Attorney has submitted a letter to ACS summarizing this matter. 

 

To date, we have collected a total of $20,306.00 under the SafeLight program.  This amount includes citation collection efforts performed by the Town after termination of its contract with ACS. Town staff continues its efforts to collect on the remaining unpaid citations.

 

Enactment of the attached budget ordinance would provide the necessary budget amendment for the Town to pay fees necessary to close out its contract with ACS, Inc. for the SafeLight Chapel Hill Program.

 

MANAGER’S RECOMMENDATION

 

The Manager recommends that the Council enact the attached budget ordinance.

 

ATTACHMENTS

 

1. Excerpt from ACS, Inc. Contract: Article 7, Termination without Cause (p. 4).
 

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2003 (2004-06-30/O-7)

BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled “An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 2003” as duly adopted on June 9, 2003, be and the same is hereby amended as follows:

 

This the 30^th day of June, 2004.