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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />MAY 16, 2017 <br />TITLE: <br />FIRST AMENDED AGREEMENTS <br />WITH PENNCREDIT AND AMERICAN <br />CAPITAL ENTERPRISES, INC. FOR <br />COLLECTION AGENCY SERVICES <br />{STRATEGIC PLAN NO. 4, 1} <br />CIT AGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1s' Reading <br />❑ Ordinance on 2n° Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />1) Approve and authorize the City Manager and Clerk of the Council to execute an amended <br />extension to the current agreement with PennCredit for a two -year period effective July 1, <br />2017 through June 30, 2019, for collection agency services, subject to non - substantive <br />changes approved by the City Manager and CityAttorney. <br />2) Approve and authorize the City Manager and Clerk of the Council to execute an amended <br />extension to the agreement with American Capital Enterprises, Inc. for a two -year period <br />effective July 1, 2017 through June 30, 2019, for collection agency services subject to non - <br />substantive changes approved by the City Managerand CityAttomey. <br />DISCUSSION <br />The Treasury and 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 <br />an in -house collection program, to which delinquent account referrals from all agencies of the City <br />are received, including but not limited to: Paramedic Billing, Municipal Utility Services, Dog <br />Licensing, Business Licensing, and Miscellaneous Accounts Receivable. <br />The current City process provides for the issuance of a minimum of three City issued collection <br />letters. They are sent to individuals and companies who fail to pay monies owed to the City. <br />Collection letters inform individuals and companies of the outstanding debt and may provide <br />alternatives for payment. The City strives to ensure that a resident or business is provided an <br />opportunity to make payment without sending them to collections. Often times this may include a <br />payment plan. If a customer fails to respond or does not adhere to a payment schedule, the <br />matter is assigned to the City's principal collection agency. <br />25D -1 <br />