Explanation
Background:
Ordinance 0419-2011 was passed on 04/07/11 authorized two contracts for the term 04/01/11 through 03/31/12 between the Columbus City Attorney's Office and Capital Recovery Systems Inc. and for the maximum amount of $300,000.00 and Linebarger, Goggan, Blair & Sampson, LLP for the maximum amount of $200,000.00. Collections have exceeded estimated amounts and this ordinance will authorize additional expenditures up to $57,000.000 for collection services by Capital Recovery Systems Inc. and additional expenditures up to $200,000.00 for collection services by Linebarger, Goggan, Blair & Sampson, LLP.
This will bring the total maximum of the contracts to $357,000.00 for Capital Recovery Systems Inc. and $400,000.00 for Linebarger, Goggan, Blair & Sampson, LLP. All other terms and conditions of the contracts will remain unchanged.
Contract Compliance Number:
Capital Recovery Systems Inc. 31-1570459-001, expires 01/12/12.
Linebarger, Goggan, Blair & Sampson, LLP 74-2864602-001, expires 06/02/12.
Fiscal Impact:
This contract is self-funding and collections far exceed the amount paid to the collection firm. The fees paid under this contract are 30% of the first $30,000.00 collected and 10% of any additional amounts collected on a specific claim.
Emergency action is requested to allow for the uninterrupted continuation of the collection program.
Title
To authorize the supplemental appropriation of $257,000.00 from the collection fund; to authorize and direct the City Attorney to modify and increase contracts with Capital Recovery Systems Inc. and Linebarger, Goggan, Blair & Sampson, LLP; to authorize the City Attorney to expend up to an additional Two Hundred Fifty-seven Thousand Dollars for services rendered pursuant thereto; to waive the provisions of competitive bidding, and to declare an emergency. ($257,000.00)
Body
WHEREAS, Ordinance No. 0419-11 authorized the City Attorney to contract with Capital Recovery Systems, Inc. for the collection of certain of the City's accounts receivables for the period of 04/01/11 through 03/31/12 in the maximum amount of Three Hundred Thousand Dollars ($300,000.00); and
WHEREAS, Ordinance No. 0419-11 further authorized the City Attorney to contract with Linebarger, Goggan, Blair & Sampson, LLP for the collection of certain of the City's accounts receivables for the period of 04/01/11 through 03/31/12 in the maximum amount of Two Hundred Thousand Dollars ($200,000.00); and
WHEREAS, collections during the contract periods have exceeded the original estimate; and
WHEREAS, it is in the City's interest to modify and increase the current contract with Capital Recovery Systems Inc. by Fifty-seven Thousand Dollars ($57,000.00) to allow collections to continue; and
WHEREAS, it is in the City's interest to modify and increase the current contract with Linebarger, Goggan, Blair & Sampson, LLP by Two Hundred Thousand Dollars ($200,000.00) to allow collections to continue; and
WHEREAS, it is in the City's interest to waive the provisions of Chapter 329 relating to the procurement of their professional services; and
WHEREAS, an emergency exists in the usual daily operation of the City Attorney's Office in that it is immediately necessary to authorize such modifications and payment in order to avoid interruption in services, thereby preserving the public health, peace, property, 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 modify and increase a contract with Capital Recovery Systems Inc. to collect accounts receivables of the City, which the City has determined are uncollectible or where the City believes the amounts involved exceed the costs that would be expended in collection, to a new maximum amount of Three Hundred Fifty-seven Thousand Dollars ($357,000.00).
SECTION 2. That the City Attorney is authorized and directed to modify and increase a contract with Linebarger, Goggan, Blair & Sampson, LLP to collect accounts receivables of the City, which the City has determined are uncollectible or where the City believes the amounts involved exceed the costs that would be expended in collection, to a new maximum amount of Four Hundred Thousand Dollars ($400,000.00).
SECTION 3. That the provisions of Chapter 329 of the Columbus City Codes, 1959, relating to the procurement of professional services are hereby waived.
SECTION 4. That the appropriation and expenditure of $257,000.00 is hereby authorized from: department 2401, Collection Fund, fund number 295, organizational cost account 241296, income tax Capital, object level three 3336, the amount of $15,000.00; organizational cost account 295204, license, object level three 3336, the amount of $4,000.00; organizational cost account 295209, transportation, object level three 3336, the amount of $1,000.00; organizational cost account 295212, EMS, object level three 3336, the amount of $30,000.00; organizational cost account 295215, refuse, object level three 3336, the amount of $1,000.00; organizational cost account 295216, water, object level three 3336, the amount of $1,000.00; organizational cost account 295217, sanitary sewers, object level three 3336, the amount of $1,000.00; organizational cost account 295219, DPU-HR, object level three 3336, the amount of $2,000.00; organizational cost account 295100, court costs, object level three 3336, the amount of $2,000.00; and, organizational cost account 241295, income tax Linebarger, object level three 3336, the amount of $200,000.00.
SECTION 5. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is declared to be 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.