TITLE
Recommendation to adopt Specifications No. RFP FM 11-045 authorizing City Manager to execute all necessary agreements with NCO Financial Systems, Inc. (NCO), of Rancho Cordova, CA (not an MBE, WBE, SBE or Local), to provide collection services for a period of two years with the option to renew for three additional one-year periods. (Citywide)
DISCUSSION
The City of Long Beach has a history of delinquent accounts receivable against customers that the City is unable to collect through its own efforts. These delinquent accounts represent numerous lines of business including: utilities (gas, water, refuse, and sewer charges); ambulance transports; false alarms; police booking fees; business licenses; marina fees; returned checks; city taxes; property damage claims; and various permits and charges.
It is a function of the Commercial Services Bureau in the Department of Financial Management (FM) to pursue money owed to the City for these accounts. In-house collection staff work to collect on delinquent accounts for approximately six months from the time of invoicing, in pursuit of payment. A number of resources to collect delinquent payments are used including, but not limited to, arranging a monthly payment plan, small claims court action and variety of other options. Delinquent accounts that remain unpaid despite extensive actions taken by FM, are turned over to a private collection agency under contract with the City.
A Request for Proposal (RFP) for providing collection services was advertised in the Press-Telegram on July 6, 2011, and 21 potential bidders specializing in collection services were notified of the bid opportunity. Of those bidders, 28 downloaded the bid via our electronic bid system. The bid document was made available from the Purchasing Division, located on the seventh floor of City Hall, and the Division’s website at www.longbeach.gov/purchasing
. A bid announcement was also included in the ...
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