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Agreements for Collection Agency Services <br />July 16, 2019 <br />Page 4 <br />Existing Delinquent Accounts (prior to June 30, 2019) <br />To continue effectively collecting on existing outstanding debt balances, staff recommends <br />approval and authorization to award a two (2) year agreement with PennCredit for prior placement <br />collection agency services for all current delinquent accounts assigned to PennCredit prior to June <br />30, 2019. <br />This recommendation is based on PennCredit's expert knowledge regarding the nature and <br />collection status of these previously placed debts. In addition, the City will receive approximately <br />10% more revenue if PennCredit continues to manage previously referred delinquent accounts in <br />comparison to ACE. Furthermore, staff estimates two years to be sufficient time to collect on aging <br />delinquent accounts. Effective July 1, 2019, no new delinquent accounts have been or will be <br />referred to PennCredit. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal #4 — City Financial Stability, Objective <br />1 (maintain a stable, efficient and transparent financial environment). <br />FISCAL IMPACT <br />As payment for services for both collection agencies is contingent upon successful collection, both <br />ACE and PennCredit will independently share in the total revenue recovered from their individual <br />efforts. <br />There is no direct fiscal impact on any expenditure accounts of the City or its related agencies. Net <br />revenues will be reduced by the contingency amounts payable to ACE and PennCredit for each <br />matter referred to them and successfully collected. <br />°" <br />Kathryn Downs, CPA <br />Executive Director <br />Finance and Management Services Agency <br />Exhibits: 1. Agreement with American Capital Enterprises, Inc. <br />2. Second Amended Agreement with PennCredit <br />UM <br />25H-4 <br />