Explanation
Background:
Ordinance 0645-2014, passed 03/24/14, authorized a contract for the term 04/01/14 through 03/31/15 between the Columbus City Attorney's Office and Capital Recovery Systems Inc. for the maximum amount of $360,000.00. Collections have exceeded estimated amounts and this ordinance will authorize additional expenditures up to $100,000.000 for collection services by Capital Recovery Systems Inc. This will bring the total maximum of the contract to $460,000.00. All other terms and conditions of the contract will remain unchanged.
Emergency: The City Attorney is requesting emergency designation so the collection process can continue without interruption.
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.
Contract Compliance Number:
Capital Recovery Systems Inc. 31-1570459-001 expires 12/02/15.
This company is neither debarred according to the Excluded Party Listing System of the Federal Government nor prohibited from receiving a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search.
Title
To authorize the supplemental appropriation and expenditure of One Hundred Thousand Dollars from the collection fund; to authorize and direct the City Attorney to modify and increase a contract with Capital Recovery Systems Inc.; and to declare an emergency. ($100,000.00)
Body
WHEREAS, Ordinance No. 0645-2015 authorized the City Attorney to contract with Capital Recovery Systems, Inc. for the collection of the city's accounts receivables for the period of 04/01/14 through 03/31/15 in the maximum amount of Three Hundred Sixty Thousand Dollars ($360,000.00); and
WHEREAS, collections during the contract period 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 One Hundred Thousand Dollars ($100,000.00) to allow collections to continue; 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 modification 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 Four Hundred Sixty Thousand Dollars ($460,000.00).
SECTION 2. That from the unappropriated monies in the Collections Fund and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose the sum of One Hundred Thousand Dollars ($100,000.00) is hereby appropriated as follows: department 2401, Collection Fund, fund number 295, organizational cost account 241296, income tax Capital, object level three 3336, the amount of $65,000.00 and organizational cost account 295209, transportation, object level three 3336, the amount of $3,000.00; organizational cost account 295212, EMS, object level three 3336, the amount of $30,000.00; and, organizational cost account 295019, DPU-HR, object level three 3336, the amount of $2,000.00.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. 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.