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Agreements for Collection Agency Services July 16, 2019 Page 3 Of the 12 responsive bids received, the top six rated vendors were invited to a teleconference interview for an opportunity to clarify and showcase their reporting and collection capabilities. The teleconference interviews concluded on June 21, 2019, resulting in the final rankings below: Vendor Points (100 max.) 1. American Capital Enterprises, Inc. ("ACE") 95 2. Professional Credit 93 3. Rash Curtis & Associates 86 4. IC Collection Services 83 5. Sequoia Financial Services 81 6. States Recovery Systems, Inc. 78 American Capital Enterprises, Inc. (ACE) was the most responsive to the evaluation criteria requirements and the highest ranking proposal. Subsequent to ranking ACE's proposal highest, City staff negotiated reductions in several of the recovery fee rates for ACE's services which are now as follows: Proposed Recovery Final Negotiated Collection Services Rates Recovery Rates First Placement Accounts 19% Contingency 17% Contingency Legal Action Accounts 40% Contingency 30% Contingency Early Out Programs (Accounts Assigned to collection 12% Contingency 12% Contingency within 120 days of billing) Process in referring Delinquent accounts to a Third -Party Debt collection industry standards refer to First placement accounts as debt initially placed with a collection agency and managed by accounts receivable personnel. The City will be in receipt of 83% of revenue collected by ACE (100%, less 17% contingency). Legal Action accounts refer to accounts handled by an attorney. Due to the nature and complexity in handling these accounts, the City will be in receipt of 70% of revenue collected by ACE (100%, less 30% contingency). Early out Programs refers to accounts referred by the City to ACE, within one -hundred twenty days (120) days of billing. Due to the nature and attempts by staff to provide customers of the City alternative payment methods, utilization of this service may be intermittent. However, if the City chooses to utilize this service it will be in receipt of 88% of revenue collected by ACE (100% - 12% contingency). Staff recommends approval and authorization to award a five (5) year agreement with ACE for all collection accounts receivables initially placed for collection be -ginning July 1, 2019. Specifically, delinquent accounts will be referred to ACE only and not to any other third -party collection agency. 25H-3