City Council

G. COLLECTION AGREEMENT WITH PROFESSIONAL CREDIT TO PERFORM\nACCOUNTS RECEIVABLE COLLECTION SERVICES FOR DELINQUENT\nCUSTOMER ACCOUNTS\nFrom time to time, the City needs collection services to help collect money\nowed to the City. Previously, the City had an agreement with Account Recovery\nServices to provide collection services for delinquent receivable accounts.\nAccount Recovery Services underwent a change in ownership, and all active\ncollection accounts were transferred to FCR Collection Services, operating\nunder the name FedChex. With the unexpected change, staff took the\nopportunity to perform an assessment of the collection service providers to\ndetermine if the City was receiving the best overall value available. The\nproposed agreement with Professional Credit includes an 18% collection fee.\nThis fee would only apply to the delinquent accounts that the City requested\ncollection services for and is contingent upon the collection of a portion or the\nentire outstanding amount. The City is not charged a fee when funds are not\ncollected.\nCalifornia Environmental Quality Act (CEQA) Determination: Not a Project as\ndefined in Section 15378 of the State CEQA Guidelines.\nRecommended Action:\nStaff recommends that the City Council authorize the City Manager to enter\ninto a Professional Services Agreement with Professional Credit to perform\naccounts receivable collection services for delinquent customer accounts.