Explanation
Background: This legislation will authorize the City Attorney to modify, by extending for six additional months, the existing contracts previously authorized by Ordinance 0380-2023, with collection agents Capital Recovery Systems, Inc. and Law Offices of Robert A. Schuerger Co., LPA, and will authorize the payment of court costs and the reimbursement of any overpayments collected from the Collection Fees fund. This fund is generated by fees collected by collection agents and is used to pay the associated collection costs due.
The Request for Proposals issued in 2019, provided for an initial two-year contract with the potential for three additional, consecutive one-year renewal options, for a total of five years maximum. However, rather than renewing for a final one-year period, the City Attorney seeks an additional six months only in order to provide sufficient time to rebid the contracts and to realign the dates of the new contracts and any future renewals of these new contracts to better serve the operational needs of the City Attorney’s office. The additional six months’ time will allow for the continuity of the services while the City Attorney rebids the contracts. The extension will be from February 1, 2024 to July 31, 2024.
Emergency: Emergency declaration is requested so the collection process can continue without interruption.
Contract Compliance Numbers:
Capital Recovery Systems, Inc., 31-1570459, CC005578 expires 04/28/2024
Law Offices of Robert A. Schuerger Co., LPA, 35-2353532, CC017436 expires 02/08/2024
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. No additional funds are needed for this modification.
Title
To authorize the City Attorney to modify by extending the existing contracts with Capital Recovery Systems, Inc. and Law Offices of Robert A. Schuerger Co., LPA for the collection of delinquent accounts; and to declare an emergency. ($0.00)
Body
WHEREAS, Ordinance 0480-2020 authorized the City Attorney to enter into contracts for an initial two-year term, renewable for up to three additional one-year terms, with Capital Recovery Systems, Inc. and Law Offices of Robert A. Schuerger Co., LPA, for the provision of debt collection services; and
WHEREAS, Ordinance 0269-2022 authorized the City Attorney to modify and extend these contracts for an additional twelve months, through January 31, 2023; and
WHEREAS, Ordinance 0380-2023 authorized the City Attorney to modify and extend these contracts for an additional twelve months, through January 31, 2024; and
WHEREAS, this ordinance will authorize the City Attorney to modify by extending these contracts for an additional six months only, from February 1, 2024 through July 31, 2024, in order to provide continuity in services while allowing time for the City Attorney to rebid the contracts this year; and
WHEREAS, an emergency exists in the usual daily operation of the City Attorney's Office in that it is immediately necessary to authorize the foregoing contract modifications and extensions and the appropriation and expenditure of funds so the collection process will not be interrupted, all for the immediate preservation of the public health, peace, property, safety and welfare; and 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 modification to extend the existing contract from February 1, 2024 through July 31, 2024, with Capital Recovery Systems, Inc. for debt collection services in the maximum amount of $1,500,000.00.
SECTION 2. That the City Attorney is authorized and directed to enter into a modification to extend the existing contract from February 1, 2024 through July 31, 2024, with Law Offices of Robert A. Schuerger Co., LPA for debt collection services in the maximum amount of $1,000,000.00.
SECTION 3. 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.