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HomeMy WebLinkAboutMINUTES - 09131988 - 1.62 k' 1-062 TO e : . `BOARD OF SUPERVISORS FROM: Phil Batchelor, County Administrator Contra By: John W. Parker, III, COSta Acting Director, Office of Revenue Collection County DATE: August 18, 1988 SUBJECT: Contracts with Commercial Agencies to Service Selected County Accounts SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION I. RECOMMENDED ACTION: A) Approve and authorize the Chair of the Board to execute on behalf of the County, a contingency contract with Far West Collection Services, Inc. , Walnut Creek, in the amount of 40% of gross collections as defined in Service Plan and Special Conditions for a continuous period beginning September 1, 1988. B) Approveand authorize- the Chair of the Board to execute on behalf of the County, a contingency contract with United Collection Corporation, Hayward, in the amount of 30% of gross collections as defined in Service Plan and Special Conditions for a continuous period beginning September 1, 1988. C) Approve and authorize the Chair of the Board to execute on behalf of the County, a contingency contract with National Recovery Control, Fremont, in the amount of 33% of gross collections as defined in Service Plan and Special Conditions for a continuous period beginning September 1, 1988. II. FINANCIAL IMPACT: These contracts for Collection Services are requested to service hard core delinquent accounts in all County Departments, where ORC has exhausted all reasonable collection efforts. Use of these agencies will generate further needed revenues. The contracts requested are contingency contracts and no direct County funds will be expended unless the agencies successfully collect on the accounts assigned. III. REASONS FOR RECOMMENDATION: Approval of these contracts-will allow the County to assign hard core delinquent accounts exhausted by ORC with the three recommended collection agencies selected because of their performance records. ORC currently has $30,000 in hard core delinquent bills that are ready for transfer to one or all of these agencies. Three agencies are being recommended for contract to provide greater flexibility and a basis for comparative analysis of performance. It is anticipated that the competition should increase collections. X CONTINUED ON ATTACHMENT: YES ATURE: RECOMMENDATION OF COUNTY ADMINISTRATO REC MENDATION OF B RD CO MITTEE APPROVE OTHER SIGNATURE(S) p ACTION OF BOARD ON Se_�tember 1�, 1988 APPROVEECOMMENDED X OTHER VOTE OF SUPERVISORS X --- UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. CC: County Administrator ATTESTED Sente,mher •j 3, 1988 .Auditor-Controller J R; OLS8'6N, COUNTY., LERK Office of Revenue Collection ANQ EX OFEICIO.CLERK OF THE'BOARD M382/7-83 BY ' DEPUTY TO: BOARD OF SUPERVISORS FROM: Phil Batchelor, County Administrator By: John W. Parker, III, Acting Director, Office of Revenue Collection DATE: August 18, 1988 SUBJECT: Contracts with Commercial Agencies to Service Selected County Accounts IV. BACKGROUND: On March 25, 1988, bids for providing collection services to the County were solicited from five collection agencies, and on May 25, 1988, the Clerk of the Board publicly opened bids from four agencies, and on the recommendation of this office, the Clerk referred the proposals to the Office of Revenue Collection for analysis and recommendation on which agency, or agencies, should be selected. Subsequently, each of the four was analyzed against the other and senior ORC staff visited each operation, interviewing their manage- ment personnel and collectors. A standardized questionnaire was used containing such items as the firm's officers, licenses, deposit practices, training, computer hardware and software, and were completed. One agency, Transworld Systems, Inc. , was eliminated because of its remote location in Rohnert Park. The remaining three firms were deemed suitable for contracts and each has the capability to accept accounts on tape, eliminating costly paperwork and manual adjustments. The recommended firms were selected after analysis and contact with references, and are listed in order of priority. 1) Far West Collection Services, Inc. - This agency was on contract with Contra Costa County since 1977. It is familiar with our clientele, our records, or methods and procedures. The County has. been satisfied with their service. The analysis conducted by the Office of Revenue Collection showed that Far West rated high on the "Net Return to County" scale. 2) United Collection Corporation - This agency has been in business since 1982 and employs a staff of fifteen including 10 collectors. The strength of this organization rests in their skills as skip tracers. They have access to many private organizations unavailable to ORC (which is an arm of Government) , that enhance their capabilities. Since almost all of the accounts ORC would assign out would qualify as skips (no phone, returned mail) , this agency should do well. 3) National Recovery Control - This agency has been in business since 1979 and employs a staff of twenty-two and has a regular number of 4 collectors assigned to field collections. The strength of this organization is its medical bank of records going back to 1981. This feature would match many of our aged County medical bills with present debtors at other medical facilities. Since approximately half the accounts ORC would assign out would be hospital and clinic debts, this agency should do well. Each of these agencies has a state of the art computer system capable of "talking" to ORC's system. Also, each agency employs field collections, a facet not employed by ORC as being considered prohibitive because of costs and possibility of litigation. The contracts have been reviewed by County Counsel's office.