|
|
|
|
|
|
|
|
COUNTY OF SAN MATEO
Inter-Departmental Correspondence
Treasurer – Tax Collector – Revenue Services
|
|
|
|
DATE:
|
November 10, 2010
|
BOARD MEETING DATE:
|
December 7,2010
|
SPECIAL NOTICE/HEARING:
|
None
|
VOTE REQUIRED:
|
Majority
|
|
|
TO:
|
Honorable Board of Supervisors
|
FROM:
|
Lee Buffington, Treasurer-Tax Collector
Girdie Bernard, Revenue Services Division Manager
|
SUBJECT:
|
Agreement with Rash Curtis & Associates/Professional Recovery Systems, Inc.
|
|
|
RECOMMENDATION:
|
Adopt a Resolution authorizing the President of the Board to execute an Agreement with Rash Curtis & Associates/Professional Recovery Systems, Inc. to provide secondary collection services of selected accounts for the term of December 7, 2010 through December 6, 2013, in an amount not to exceed $375,000.
|
BACKGROUND:
|
The Revenue Services Division is responsible for collecting monies for services rendered or for fines against persons with outstanding debts to the County. Typical collection accounts include court fines, medical and clinic services, welfare over-payments and private defender fees. As part of the County’s collection efforts, 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 no have. In this way, the County assures that all practical efforts at collection have been pursued.
|
|
|
DISCUSSION:
|
In September 2010, the County solicited proposals from firms to perform second level collections services. 13 request for proposals were distributed, three firms submitted proposals and all were interviewed. Rash Curtis & Associates/Professional Recovery Systems, Inc. was selected for several reasons:
|
1) Their commission rate of 18% for regular collection accounts and 30% for legal accounts was lower than the other agencies with experience collecting similar accounts.
2) They currently provide collection services for another County hospital (Contra Costa Regional Medical Center).
3) Their recovery rate is competitive with other agencies that were part of the RFP process.
|
In the contract between Rash Curtis & Associates/Professional Recovery Systems, Inc. and San Mateo County, the commission rate for all accounts except legal accounts will be 18%. The commission rate for legal accounts will be 30%. A non-legal account is one for which we have not initiated legal action against the defendant such as filing in small claims court. A legal account is one for which we have initiated such legal proceedings.
|
|
|
County Counsel has reviewed and approved the Resolution and Agreement as to form.
|
|
|
Risk Management has reviewed and approved the Insurance Coverage.
|
|
|
Approval of this Resolution will contribute to the Shared Vision 2025 outcome of a Collaborative Community as our leaders forge partnerships, promote regional solutions, with informed and engaged residents, and approach issues with fiscal accountability and concern for future impacts.
|
|
|
Performance Measure(s):
|
Measure
|
FY 2009-10
Actual
|
FY 2010-11
Projected
|
Dollars Collected
|
$17,297,035
|
$15,000,000
|
Percent of debtors contacted within five days of receipt
|
100%
|
100%
|
|
|
FISCAL IMPACT:
|
The amount of the contract will be based on the amount of revenue collected by Rash Curtis & Associates/Professional Recovery Systems, Inc. and will range from 18% for non-legal accounts to 30% for legal accounts.
The amount of the contract will not exceed $125,000 per fiscal year. The cost of the contract for the three year term is fully offset with revenue collected and there is no Net County Cost associated with this contract. Appropriation for the first year of this contract has been included in the FY 2010-11 budget. The remaining contract amount and offsetting revenues will be included in the FY 2011-12 and FY 2012-13 budgets.
|