COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Employee and Public Services

DATE:

November 26, 2003

BOARD MEETING DATE:

December 16, 2003

TO:

Honorable Board of Supervisors

FROM:

Mary Welch, Employee and Public Services Director
Girdie Bernard, Revenue Services Manager

SUBJECT:

Agreement with California Services Bureau

RECOMMENDATION:

Adopt a resolution authorizing the President of the Board to execute an amendment to the Agreement with California Service Bureau to provide payment for continued collection services for selected accounts through November 2005.

BACKGROUND:

California Service Bureau has provided collection services for the County since November 2000. At that time the County solicited bids from firms to perform second level collection services. Five firms submitted proposals and four firms were interviewed. California Services Bureau was selected. As part of the County's collection effort the division refers accounts to external collection agencies when County collection efforts have been exhausted. External collectors have access to information databases for locating debtors that the County does not have. The databases used by California Service Bureau allow them to do name, address, social security numbers, and property searches on the national level. Our databases allow us to search for information on a county and state level. The expense associated with accessing national databases is paid for by California Service Bureau. In this way, the County assures that all practical efforts at collection have been pursued.

On November 14, 2000 The San Mateo County Board of Supervisors authorized the President of the Board to execute an agreement with California Services Bureau to provide collection services for the period of December 1, 2000 through November 30, 2003. That contract stated that the contract term could be extended for an additional two years.

DISCUSSION:

We are recommending that this agreement be extended from December 1, 2003 through November 30, 2005. There are several reasons for continuing services with California Services Bureau, including:

1. California Services Bureau has years of experience handling collections for the type of accounts handled for the County. This provides an invaluable resource toward the overall collection efforts of the County.

2. California Services Bureau currently provides collection services for another county's hospital (Marin General Hospital)

3. California Services Bureau's fee is still lower than many outside collection agencies.

4. The contract form has been updated to include the current Hold Harmless language, the County's new provisions regarding Non-Discrimination (including Equal Benefits), and the required language required by HIPAA. There has also been an adjustment to Exhibit A of the prior contract (no commission will be paid for collections on medi-cal accounts.

5. California Service Bureau will no longer be paid for collections on Medi-cal or Medicare accounts.

VISION ALIGNMENT:

This item keeps the commitment of responsive, effective and collaborative government through goal number 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.

FISCAL IMPACT:

There is no additional fiscal impact associated with this contract. The maximum amount of the contract was $375,000. To date, we have only spent $55,000. We will only need to extend the time period covered by the contract though November 2005.