TITLE
Recommendation to authorize City Manager to execute an agreement with OSI Collection Services, Inc., to provide collection agency services, for a three-year term with options for two additional one-year periods. (Citywide)
DISCUSSION
The City regularly has delinquent accounts receivable, damage claims and judgments against former customers and debtors that remain unpaid despite the fact that extensive actions have been taken through internal collection efforts. These delinquent accounts arise from billings for utility, ambulance transports, false alarms, City property damage claims and other services provided by the City. The City utilizes the services of an outside collection agency to capture delinquent revenues.
The Request for Proposal (RFP) was downloaded from the City website by 13 companies. Of these, two are Minority-owned Business Enterprises (MBEs); there were no Women-owned Businesses Enterprises (WBEs), nor were there any Long Beach businesses. There was one certified small business. Eight companies responded to the RFP for collection agency services. One of these companies could be categorized as either a MBE, WBE, Long Beach business or certified small business.
A selection committee consisting of members from Financial Management and Technology Services reviewed the responses and conducted a series of discussions.
OSI Collection Services, Inc., from Rancho Cordova, CA demonstrated the ability to provide the requested collection services. OSI Collection Services, Inc., provides outside collection services to the City of Los Angeles, Sacramento Municipal Utility District, and the California Department of Transportation with collection rates that significantly exceed the results of the other submittals with competitive collection fees.
Also, OSI Collection Services, Inc., will provide the best value to the City as a result of their extensive experience with successful collection of the types of debts incurred by the City. In addition, their...
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