HomeMy WebLinkAboutMINUTES - 04231985 - 2.6 TO: BOARD OF SUPERVISORS
Contra
FROM: Donald L. Bouchet, Auditor-Controller Costa
By: Kenneth J. Corcoran, sistant Accounting Manager C� a
DATE: April 10, 1985 County
SUBJECT: Extension of Contract for Collection Services
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
I. RECOMMENDED ACTION
That the contract for collection services between Contra Costa County and
Far West Collection Services, Inc. be extended from April 1 , 1985 to June 30, 1985
II. FINANCIAL IMPACT
The contract with Far West Collection Services, Ibc. is a contingency contract,
i.e. no County funds are expended unless Far West is successful in collecting on the
accounts assigned to them. The County pays Far West 40% of the gross amount collected.
III. REASONS FOR RECOMMENDATION
Approval of this contract extension will allow the County to maintain its
contractual arrangement with Far West Collection Services, Inc. The Health Services
Department currently has approximately $5,000,000 in delinquent hospital bills that
are ready to be assigned to a collection agency; however, the contract with Far West
terminated March 31 , 1985.
IV. BACKGROUND
The County had 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. That contract expired March 31 , 1985.
On March 1 , 1985, bids for providing collection services to the County were
solicited from seventeen collection agencies. On March 26, 1985, the Board of
Supervisors publicly opened bids from six agencies. Upon the recommendation of
the County Administrator, the Board referred those responses to the Office of Revenue
Collections for analysis and a recommendation on which agency (or agencies) should
be selected.
On April 4, 1985, representatives from the Health Services Department, Department
of Revenue Collections, and the Auditor-Controller met to review and discuss the
selection process. It was agreed that additional time would be necessary to ,carry
out an acceptable analysis and to check with references provided by the responding
agencies. Because the Health Services Department is prepared to assign a large number
of accounts in the near future, it was agreed that it would be appropriate to extend
Far West's contract through June 30, 1985 while the analysis of the six bids is
prepared. Incidentally, Far West is one of the six firms that responded to the
County's request for bids.
CONTINUED ON ATTACHMENT:X YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S) ��-�y-�
ACTION OF BOARD ON APPROVED AS RECOMMENDED X OTHER (�
The Chairwoman is AUTHORIZED to EXECUTE the above mentioned contract.
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 April 23 , 199—
Auditor-Controller PHIL BATCHELOR. CLERK OF THE BOARD OF
Contractor via Auditor-Controller SUPERVISORS AND COUNTY ADMINISTRATOR
M382/7-e8 BY DEPUTY
TO: Board of Supervisors
FROM: Donald L. Bouchet, Auditor-Controller
By: Kenneth J. .Corcoran, Assistant Accounting Manager
DATE: April, 10, 1985
SUBJECT: Extension of Contract for. Collection Services
V. CONSEQUENCES OF NEGATIVE ACTION
Unless the recommended action is approved, the County will not have a collection
agency to which delinquent bills could be assigned. Any delay in assigning accounts
reduces the probability .of successful contact and collection from the delinquent debtors.
This may cause a loss of net County revenues.