ORD 0645-2014
Explanation
Background: This legislation will authorize the City Attorney to enter in to contracts with collection agents Linebarger, Goggan, Blair & Sampson LLP, Capital Recovery Systems, Inc., and Apelles, LLC for three (3) year terms each, renewable annually, and will authorize the payment of court costs, and the reimbursement of any overpayments collected from the Collection Fees fund. Fees collected by collection agents and used to pay the associated collection costs generate this fund.
The accounts receivables collection program within the City Attorney's Claims Section has been ongoing since 1996. In the fall of 2014, the City Attorney put out a Request for Proposals (RFP) for collection services and received a total of nine (9) responses. A five-member Selection Committee reviewed the proposals and of the nine (9), five (5) companies were invited to give presentations and to further discuss their qualifications. After thorough review and consideration, the Selection Committee chose the three (3) collection agencies listed above.
In 2009, ordinance 0130-2009 authorized a program which adjusted the fee structure of the city's debt collection program. Effective April 1, 2009, the ordinance created a new fee to the total debt collected on all new and existing accounts without payment plans. This allows the city to recover 100% of the debts collected and the debtor pays the additional collection fee. This program will continue under the contracts with our chosen collection agents.
Emergency: Emergency declaration is requested so the collection process can continue without interruption.
Contract Compliance Numbers:
Capital Recovery Systems Inc. 31-1570459 expires 12/02/15
Linebarger, Goggan, Blair & Sampson, LLP 74-2864602 expires 02/07/16
Apelles, LLC, 41-2104380 expires 03/21/16
These companies are neither debarred according to the Excluded Party Listing System of the Federal Government nor prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search.
Fiscal Impact: These contracts are self-funding and will result in additional revenues to the general fund. The agents are paid fees from the money they collect. One hundred percent of monies collected are remitted to the city and invoices from the collection agencies are paid from the funds collected.
Title
To authorize the appropriation and expenditure of Nine Hundred Three Thousand Dollars ($903,000.00) from the Collection Fees fund; to authorize the City Attorney to enter into contracts with Linebarger, Goggan, Blair & Sampson LLP, Capital Recovery Systems, Inc., and Apelles, LLC for the collection of delinquent accounts; to authorize the payment of court costs, and the reimbursement of collected overpayments; and to declare an emergency. ($903,000.00)
Body
WHEREAS, An RFP for Collection Services was published in October of 2014 and drew a total of nine (9) responses; and
WHEREAS, a Selection Committee consisting of five (5) City employees carefully reviewed and considered the qualifications and expertise of each proposal submitted; and
WHEREAS, after careful consideration the Selection Committee recommended that the City Attorney enter into contract with Linebarger, Goggan, Blair & Sampson LLP, Capital Recovery System, Inc., and Apelles, LLC; for the provision of debt collection services; and
WHEREAS, ordinance No. 0130-2009, authorizing the imposition of collection fees on delinquent accounts, will be incorporated by reference into the contracts the City Attorney enters into with the above-referenced collection agencies; and
WHEREAS, it is further necessary to authorize the payment of court costs as well as the reimbursement of any overpayments collected; and
WHEREAS, an emergency exists in the usual daily operation of the city in that it is immediately necessary to authorize the foregoing contracts and the appropriation and expenditure of funds so the collection process will not be interrupted and for the preservation of public peace, property, health, safety and welfare, now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Attorney is authorized and directed to enter into a three (3) year contract, through March 31, 2018, renewable annually, with Linebarger, Goggan, Blair and Sampson, LLP , for debt collection services in the maximum amount of Three Hundred Thousand Dollars ($300,000.00).
SECTION 2. That the City Attorney is authorized and directed to enter into a three(3) year contract, through March 31, 2018, renewable annually, with Capital Recovery Systems, Inc., for debt collection services in the maximum amount of Four Hundred Thousand Dollars ($400,000.00).
SECTION 3. That the City Attorney is authorized to enter into a three (3) year contract, through March 31, 2018, renewable annually, with Apelles, LLC, for debt collection services in the maximum amount of Two Hundred Thousand Dollars ($200,000.00).
SECTION 4. That the City Attorney is authorized and directed to pay court costs and reimburse overpayments collected in the amount of Three Thousand Dollars ($3,000.00).
SECTION 5. That the City Auditor is hereby authorized and directed to appropriate Nine Hundred Three Thousand Dollars ($903,000.00) from the unappropriated balance of the Collection Fees fund, fund 295.
SECTION 6. That the expenditure of Nine Hundred Three Thousand Dollars ($903,000.00) is hereby authorized from department 2401, Collection Fees fund, fund number 295, as follows:
organizational cost account 241295, Income Tax-Linebarger, object level three 3336, $300,000.00
organizational cost account 241296, Income Tax-Capital, object level three 3336, $315,000.00;
organizational cost account 241297, Income Tax-Apelles, object level three 3336, $200,000.00;
organizational cost account 295204, License-Capital, object level three 3336, $20,000.00;
organizational cost account 295206, Police-Capital, object level three 3336, $2,000.00;
organizational cost account 295209, Transportation-Capital, object level three 3336, $10,000.00;
organizational cost account 295211, Electric-Capital, object level three 3336, $10,000.00;
organizational cost account 295212, EMS-Capital, object level three 3336, $40,000.00;
organizational cost account 295213, Fire-Capital, object level three 3336, $1,000.00;
organizational cost account 295215, Refuse-Capital, object level three 3336, $1,000.00;
organizational cost account 295219, DPU-HR-Capital, object level three 3336, $1,000.00; and
organizational cost account 295100, court costs, object level three 3342, $2,000.00 and object level three 5512, $1,000.00.
SECTION 7. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.