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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 6, 2009 <br />TITLE: <br />AGREEMENT FOR COLLECTION AGENCY <br />SERVICES <br />(SPEC. NO. 09-028) <br />~~,^ <br />~~-Y ~l ~~' `< - <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 15i Reading <br />^ Ordinance on 2"d Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Approve and authorize the City Manager and Clerk of the Council to execute <br />the attached agreement with American Capital Enterprises, Inc. for a two- <br />year period with provisions for three one-year renewals, for collection <br />agency services, subject to non-substantive changes approved by the City <br />Manager and City Attorney. <br />DISCUSSION <br />The City of Santa Ana account receivables categories include water <br />service, police false alarms, code enforcement, traffic tickets, paramedic <br />services, and Police and Fire Department billable time for emergency cost <br />recovery. In general, accounts receivables are assigned to the collection <br />agency when the billings are 60 to 90 days past due and staff has already <br />attempted several contacts, including sending past-due letters and <br />initiating telephone calls. Annually, approximately 5,000 accounts are <br />sent to the collection agency at a recovery rate of 33%. <br />On May 5, 2009, the City conducted a formal Request for Proposal process <br />to solicit offers from qualified firms to provide services to collect past <br />due City accounts. A summary of the RFP solicitations and the proposals <br />received were as follows: <br />16 Request For Proposals issued <br />6 Proposals received <br />The proposals were reviewed by a committee composed of City staff. An <br />evaluation of proposals compared six criteria: (1) overall ability to <br />provide services, (2} fees and charges related to level of work proposed, <br />(3) professional qualifications of firm and personnel, (4) ability of firm <br />to commit required personnel to handle scope of work, (5) historic <br />collections performance, (6) quality of references and result of <br />interviews. <br />25G-1 <br />