Laserfiche WebLink
REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 16, 2019 <br />TITLE: <br />APPROVE AGREEMENT WITH AMERICAN <br />CAPITAL ENTERPRISES, INC. AND <br />SECOND AMENDMENT WITH PENNCREDIT <br />FOR COLLECTION AGENCY SERVICES <br />(STRATEGIC PLAN NO. 4, 1) <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on ls' Reading <br />❑ Ordinance on 2"d Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />1) Authorize the City Manager and Clerk of the Council to execute an agreement with American <br />Capital Enterprises, Inc. for a for a five-year period effective July 1, 2019 through June 30, 2024, <br />for referral of delinquencies beginning July 1, 2019, subject to non -substantive changes <br />approved by the City Manager and City Attorney. <br />2) Authorize the City Manager and Clerk of the Council to execute a second amendment to the <br />agreement with PennCredit for a two-year period effective July 1, 2019 through June 30, 2021, <br />for referral of existing delinquent accounts placed prior to June 30, 2019, subject to non - <br />substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />The Treasury & Customer Service Division of the Finance and Management Services Agency <br />(Treasury) is responsible for assuring the collection of all monies due to the City. Treasury has an <br />in-house collection program, to which delinquent account referrals from all agencies of the City are <br />received, including but not limited to: Municipal Utility Services, Dog Licensing, Business Licensing, <br />and Miscellaneous Accounts Receivable. <br />In addition, the City contracts outside billing and collection services for paramedic services and <br />parking ticket collection services. When the City's in-house and third party collection programs are <br />unable to satisfy debts owed to the City, those debts may be transferred to an outside collection <br />agency for continued collection services. <br />Furthermore, the referral of delinquent accounts to third -party collection agencies is an efficient <br />method in managing debts owed to the City. Previous agreements with American Capital <br />Enterprises, Inc. ("ACE") and Penn Credit Corporation (`PennCredit') expired on June 30, 2019. <br />25H-1 <br />