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HomeMy WebLinkAboutMINUTES - 02261985 - 1.35 TO: BOARD OF SUPERVISORS FROM: Donald L. Bouchet, Auditor-Controller Contra By: Kenneth J. Corcoran, Assistant Accounting ManagerCostaDATE; February 12, 1985. @ County SUBJECT: Contract for Collection Services SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION I. RECOMMENDED ACTIONS: 1 . Approve specifications for providing collection services to.Contra Costa County. 2. Authorize the Office of the Auditor-Controller to solicit proposals for collection services and to fix March 26, 1985 as the date for opening proposals. II. FINANCIAL IMPACT: The recommended actions, if approved, would have no financial impact. These actions merely establish the general specifications for outside collection services and authorize the Office of the Auditor-Controller to solicit quotations. After the submitted quotations have been reviewed, the Office of the Auditor-Controller will recommend the selection of a collection agency (or agencies). The financial impact of the recommended collection contract will be discussed at that time. III. REASONS FOR RECOMMENDATIONS: 1 . Section 26220 of the Government Code allows the Board of Supervisors to enter into a contract with a licensed collection agency for collection services. The existing contract for collection services will expire March 31 , 1985. The first step in selecting a contractor for the period subsequent to March 31 , 1985 is approval of the specifications the County will expect the selected agency to conform with. 2. Authority for receiving the responses to the County' s invitation to submit quotations should be assigned to a single department. The Office of the Auditor- Controller has historically had this responsibility. The review and recommendation process will involve staff from other departments that may be affected by this contract. The proposed deadline, March 26, 1985, should allow sufficient time for interested collection agencies to prepare and submit quotations. IV. BACKGROUND: The County currently has a contract with Far West Collection Services, Inc. for the provision of collection services on all delinquent bills, claims, and accounts that the county chooses to assign. The current contract with Far West will expire March 31 , 1985. CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION BOARD COMMITTEE APPROVE OTHER SIGNATURE(S) ACTION OF BOARD ON ry APPROVED AS RECOMMENDED X OTHER * 2 . 10 :30 a.m. 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 February 26, 1985 Auditor-Controller PHIL BATCHELOR. CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M383/7-89 BY DEPUTY February 12, 1985 Contract for Collection Services IV. BACKGROUND: (continued) Attached are the specifications and quotation data sheets we. propose to mail to those firms which have expressed an interest in our collection services contract. The specifications we have proposed are essentially the same as those which are currently a part of our contractual agreement with Far West; however, there are two changes which are explained below: - The specifications do not require the agency to maintain an office within Contra Costa County. The most recent specifications require an office within Contra Costa County; previous specifications required offices to be maintained in west county and central county. These geographic restrictions limited the number of firms submitting quotations. In fact, Far West was the only firm to do so the last time quotations were solicited. Since most correspondence is through the mail or toll free telephone lines, the absence of a local office should not significantly inconvenience either County operations or our delinquent debtors. - We have left open the option of contracting with more than one agency. The practice of using two or more agencies is common in private industry and has been recommended by the County's Grand Jury auditors. Such an arrangement provides flexibility and a much better means to judge the effectiveness of each agency involved. V. CONSEQUENCES OF NEGATIVE ACTION: As previously noted, the current contract for collection services will expire March 31 , 1985. Failure to approve the recommended actions could result in the County not having available a .collection agency to' which delinquent accounts could be assigned. This may cause N. loss in net County revenues. CONTRA COSTA COUNTY INVITATION TO SUBMIT QUOTATIONS FOR COLLECTION SERVICES Quotations are solicited for furnishing a collection service to the . County of Contra Costa, State of California. The County may, at its option, contract with multiple collection agencies. The County Auditor-Controller will assign accounts to the agency (or agencies) which, in his opinion, is best able to service the account. The assignee will be responsible for the collection of any and all delinquent bills, claims and accounts assigned to it by the County in accordance with Sections 26220, 26221 and 26222 of the California Government Code, subject to the attached statement of terms and conditions. Your attention is invited to the fact that quotations, not bids, are solicited and that the Board of Supervisors reserves the right to select the quotation which, in its opinion, best suits the needs of the County of Contra Costa. Quotations shall be submitted to the Clerk of the Board of Supervisors, Room 106, County Administration Building, Martinez, California 94553, in a sealed envelope clearly marked Collection Services. The quotations shall be publicly opened in the Board of Supervisors Chambers on March 26, 1985.* After allowance of sufficient time to evaluate the quotations, the selection will be made by the Board of Supervisors. * 10 :30 a .m. CONTRA COSTA COUNTY SPECIFICATIONS FOR COLLECTION SERVICES 1. Accounts to be Collected. The agency. shall accept for collection any and all delinquent bills, claims, and accounts assigned to- it by the County in accordance with the provisions of Sections 26220, 26221, and 26222 of the California Government Code. 2. Contract Period. The contract shall be for two years commencing April 1, 1985, except that if at any time the County determines that the agency collection procedures are inappropriate, the agreement may be cancelled by serving upon the agencv a seven (7) day written notice. The contract may be terminated at any time by either party with or without cause by the giving of a thirty (30) day written notice of intention to terminate. 3. License and Bond Requirements. The agency is to be licensed by the State of California and said license is to be in good standing with the Department of Professional and Vocational Standards, Collection Agency Licensing Bureau. The agency shall furnish a bond in the sum of $10, 000 payable to the County and executed by a corporate surety licensed to do business in the State of California for the faithful performance of the terms and conditions of the contract. 4. Remittance and Notice of Collections. The agency shall transmit to the County Auditor-Controller for deposit in the County Treasury: (a) All collections of checks made payable to the County immediate upon receipt. (b) The net sum of all other collections received during the month to be transmitted on the first working day of the following month. The "net sum" shall be computed by subtracting from the total sum of all other such collections the court costs and sheriff or marshal fees specifically identified with the accounts represented by these collections. i. (c) The County shall immediately notify the agency of each collection received directly from the debtor by the County when the collection was of a delinquent bill, claim, or account previously assigned to the agency for collection. 5. Settlement Statements. The agency shall submit to the County Auditor-Controller a settlement statement on the first working. day of each month on forms approved by the County Auditor-Controller which shall consist of an itemized list showing the total receipts collected for each account for the preceding month. These settlement statements shall include: (a) The total amount of collections received; this shall consist of all of the collections transmittable to the County under Item 4, above. (b) The total interest received. (c) Any fees deposited in the County Treasury which are payable to the agency for costs advanced by it. (d) The amount of the commission payable':-.to the agency for its collection service. (e) The total amount of collections to which the County is entitled under the agreement. This shall consist of the amount collected and transmittable under the agreement less the agency commission. 6. Payment of Agency Fees. The County Auditor-Controller shall pay to the agency the sum of the fees and commissions described in Items 5 (c) and (d) , above not later than ten (10) days after receipt of a settlement statement meeting with the approval of the County Auditor-Controller. 3 . 7. Interest Charge on Accounts. Unless prohibited by law, the agency shall charge interest on all assigned accounts 1:0 commence on the date the account has been stated. . Interest shall be charged at the rate permissible by law based on the unpaid .balance at the end of each year. However, the charging of interest to any account may be waived by the agency if it is determined that the circumstances justify such action. Interest received shall be treated in the same manner and be subject to. the same agency fee as the principal received on assigned accounts. 8 . Deceased or Absent Debtor. When it comes to the attention of either the County or the agency that the debtor is deceased and an estate has been opened in his name, or that the County prior to the date of the assignment of the account had a lien against any of the debtor' s real property, the agency shall return such accounts andshall be entitled only to a commission on such sums as have been collected by the agency at that time. If the debtor has taken up residence outside the County, the account shall remain with the agency. 9. Uncollectible Accounts. The agency shall report each month to the County Auditor-Controller all claims or accounts deemed by it to be uncollectible and such report shall contain a brief statement of the reasons why such items are considered to be uncollectible. All such accounts shall be returned to the County and the agency shall have no rights to a commission for any sums thereafter collected upon these accounts. In the event the agency makes recommendation to the County for. reactivation of an account previously believed to be uncollectible and, therefore, returned to the County, the County may once again assign such account to the agency. The agency shall be entitled to its commission for any sums there- after collected upon such accounts. 10. Agency Attorneys. No compensation shall be paid by the County for the services of any attorney employed by the agency nor shall any attorney so employed be deemed to represent the County. . V 4. 11. Reassigned Accounts and Legal Services of the County Counsel. If it is mutually agreed between the agency and the County Counsel that it would be in the best interest of . the County that a suit or other legal process with respect to an account be brought by the County Counsel in the name of the County, the account shall be. returned to the County for this purpose. If the account is returned the account or claim shall not be deemed an uncollectible account and the agency shall not be entitled to its commission on the account thereafter collected less expenses of collection and attorney fees of the County Counsel. - 12. Compromise Settlement or Cancellation of Indebtedness. If the agency or a County department determines that the collection or enforcement of a claim would result in undue hardship to the debtor or his dependents or that for some reason of law or fact the County'.s right to recover is in doubt, the agency or County department shall report such facts to the Board of Supervisors through the County Auditor-Controller with a recommenda- tion for a compromise settlement or cancellation of the indebtedness. The agency commission in such case shall be based upon the amount accepted by the County in full satisfaction of the obligation, provided, however, that if the Board of Supervisors deems it in the best interest of the County to cancel said claim in its entirety, the agency shall not be entitled to payment of any fees or commission from the County. 13. Credit Data for County Departments. The agency shall provide such information to the various County departments as may be requested by the County Auditor-Controller for the purpose of adopting procedures by which there can be obtained proper credit data concerning a debtor or potential debtor. 14. Control of Accounts. The agency shall maintain a control account and segre- gation of County accounts and shall bill the debtor for the full amount owned on the debtor' s account. 5. 15. Maintenance and Examination of Agency Records. Pursuant to Section 626 of the Rules and Regulations of the Bureau of Collection and Investigative Services, each agency shall maintain accurate, current books .of accounts in accordance with generally accepted standards of good accounting practice. Such books of account shall consist of primary and subsidiary records, which shall be maintained for a period of four years. The County Auditor-Controller, without advance notice, shall be permitted to examine the records, 'books, and other data in the possession of the agency pertaining to the collection of accounts assigned under the terms of this contract. 16. Reassignment of Accounts on Termination or Loss of License. Upon the termination of the agreement or any extension thereof or upon loss of State license, all accounts and judgments, including those in the process of litigation are to be reassigned to the County upon notification. The County may, at its option, allow the agency to continue to service accounts which are in the process of collection. 17. Indemnification. The Agency shall defend, save harmless and idemnify the County and its officers, agents and employees for all liabilities and claims for damages for death, sickness or injury to persons or property, including without limitation, all consequential damages, from any cause whatsoever arising from or connected with the operations or the services of the Agency hereunder, resulting from the conduct, negligent or otherwise, of the Agency, its agents or employees, the County, its agents or employees, or any other person or entity. 18. Insurance. During the entire term of this Contract and any extension or modification thereof, the Agency shall keep in effect insurance policies meeting the following insurance requirements unless otherwise expressed in the Special Conditions: 6. (a) Liability Insurance. The Agency shall provide a policy or policies of comprehensive liability insurance, including coverage for owned and non- owned automobiles, naming the County and its officers and employees as additional insured, with a minimum because of bodily injury, sickness or disease, or death to any person and damage to or destruction of property, including the loss of use thereof, arising from each accident or occurrence. (b) Workers' Compensation. The Agency shall provide the County with a certificate of insurance evidencing workers' compensation insurance coverage for its employees. (c) Additional Provisions. ' The policies shall include a provision for thirty (30) days written notice to County before cancellation or material change of the above specified coverage. Said policies shall constitute primary insurance as to the County, the State and Federal Governments, their officers, agents, and employees, so that other insurance policies held by them shall not be required to contribute to any loss covered under the Agency' s insurance policy or policies. Not later than the effective date of this Contract, the Agency shall provide the County with a certificate (s) of insurance evidencing the above liability insurance. 7 QUOTATION DATA SHEET 1. Name (s) of Agency Office Location (s) Main Branch Branch Branch 2. Name of Principal (s) Residence Address 3. If principals are affiliated with any other collection agency, credit.reporting firm, lending institution, or financial counseling service, please provide details. 4. (a) Total Number of Employees (b) Number of Employees regularly assigned to field work, including investigation and skip tracing. 8. 1983 1984 6 . Dollar volume of accounts assigned $ $ Dollar volume of accounts collected $ $ Number of accounts assigned Number of accounts collected 7. Type of accounts in which your agency specializes: Medical-Dental Retail Wholesale Industrial General 8 . Has. bond ever been refused or revoked? Ye's No If so, date and circumstances. 9. Has your agency license ever been suspended or revoked? Yes No If so, date and circumstances. 10. List of other clients with phone references. 11. Examples of rates of return experience. 12. What fee or percentage of"collections do you propose to charge the County for collection services? Please outline your proposal below. CONTRA COSTA COUNTY INVITATION TO SUBMIT QUOTATIONS FOR COLLECTION SERVICES Quotations are solicited for furnishing a collection service to the . County of Contra Costa, State of California. The County may, at its option, contract with multiple collection agencies. The County Auditor-Controller will assign accounts to the agency (or agencies) which, in his opinion, is best able to service the account. The assignee will be responsible for the collection of any and all delinquent bills, claims and accounts assigned to it by the County in accordance with Sections 26220, 26221 and 26222 of the California Government Code, subject to the attached statement of terms and conditions. Your attention is invited to the fact that quotations, not bids, are solicited and that the Board of Supervisors reserves the right to select the quotation which, in its opinion, best suits the needs of the County of Contra Costa. Quotations shall be submitted to the Clerk of the Board of Supervisors, Room 106, County Administration Building, Martinez, California 94553, in a sealed envelope clearly marked Collection Services. The quotations shall be publicly opened in .the Board of Supervisors Chambers on March 26, 1985.* After allowance of sufficient time to evaluate the quotations, the selection will be made by the Board of Supervisors. * 10 :30 a.m.