TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 32515 with Transworld Systems, Inc., of Rancho Cordova, CA, to extend the term for a period of one-year, with the option to renew for two additional one-year periods, for the continuance of collection services, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to amend Contract No. 32515 with Transworld Systems, Inc. (Transworld), a private collection agency, to extend the contract term by one-year, with the option to renew for two additional one-year periods. On November 8, 2011, the City Council awarded a contract for the collection of delinquent accounts on numerous lines of business, including the following: utilities (gas, water, refuse, and sewer), ambulance transports, false alarms, police booking fees, business licenses, marina fees, City taxes, property damage claims, and other City permits and charges, for a period of two years, with the option to renew for three additional one-year periods. This contract is set to expire on November 8, 2016.
The Commercial Services Bureau in the Department of Financial Management (FM) currently pursues money owed to the City. FM collection staff works to contact those in possession of delinquent accounts using a variety of methods for approximately six months from the time of invoicing, in pursuit of payment. Additionally, staff also utilizes other resources such as payment plans, small claims court action, and tax liens in order to obtain payment. Delinquent accounts, which remain unpaid after these staff efforts, are turned over to Transworld, a private collection agency under contract with the City.
The City will soon begin the implementation of a new Enterprise Resource Planning (ERP) system. As part of the ERP project, funding has been allocated for a new collections system. The existing collections system, which must be interfaced with Transworl...
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