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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Barbara Pachon,
Director of Finance
Subject: Resolution authorizing the
execution of an agreernent with PMR
Progressive LLC to provide
Collection Services of delinquent
accounts for the City of San
Bernardino,
Dept: Finance
Date: May 18, 2010
Council Meeting: 6/7/10
Synopsis of Previous Council Action:
None
Recornmended motions:
Adopt Resolution
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Signature
Contact person: Barbara Pachon, Director of Finance
Phone: 5242
Supporting data attached: Staff Report, Attachments
Ward: All
FUNDING REQUIREMENTS: Amount:
Source:
Finance:
Council Note~:
Agenda Item No.
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
SUBJECT:
Resolution authorizing the execution of an agreement with PMR Progressive LLC, of Woodland
Hills, CA, to provide collection services of delinquent accounts for the City of San Bernardino.
BACKGROUND:
Currently the City of San Bernardino does not have a centralized vendor performing the
delinquent debt collection function for the City as a whole. There is currently uncollected .
revenue owed to the City in several areas like residential and commercial trash services, false
alarm fees, emergency medical services, Animal Control citations, delinquent and lost library
books, and Parking Enforcement Citations. Working with a collection vendor the Finance
Department will coordinate the collection of past due revenues for all Departments in the City.
REOUEST FOR PROPOSAL PROCESS AND CONTRACT AWARD:
On January 12,2010, the City of San Bernardino Purchasing Department issued a Request for
Proposal (F-IO-11) for Collection Services. The RFP was posted on the City's website, sent to
the San Bernardino Chamber of Commerce and notices were mailed to fifteen (15) vendors. The
City received thirteen (13) responses to our Request for Proposal with two (2) deemed as non-
responsive.
An evaluation committee comprised of. various City Departments evaluated all responses.
Several factors were taken into consideration as these proposals were reviewed including,
capabilities of the Collection Agency qualifications and related experience and reasonableness of
cost and price. The standardized city evaluation criteria were used which included such things
as:
· Capabilities of Firm to Effectively Complete the Project Requirements - 35%
· Qualifications of FirmlRelated Experience - 45%
· Reasonableness of Cost and Price - 10%
. Completeness of Response - 5%
. Local Vendor Preference - 5%
The term of this agreement is for a period of three (3) years, (with the option of two one-year
extensions at the City's discretion). Below is the list of companies who provided bid responses.
Staff Report
Page - 2
Company Name
United Adjustment Co
Mone Control, Inc.
Ven off Williams
MRS
RSI Ente rises
PerSolve LLC
Penn Credit Co
The Sa es Corn
EOSICCA
Se uoia
States Recover Systems,
Inc.,
Financial Credit Network
Company
Location
Kentland, IN
Riverside, CA
Garden Grove, CA
Che Hill, NJ
Glendale, AZ
Chatsworth, CA
Harrisbur , P A
Solana Beach, CA
Norwell, MA
Glendale, CA
Rancho Cordova,
CA
Visalia, CA
PMR Progressive LLC was not the lowest-cost bid; however, many of the lower-cost companies
were out of state which would increase other costs. In addition, many of the lower-cost
companies did not indicate that they could rneet all of our requirements, and/or had little or no
municipal experience. The proposed bid prices by the above companies ranged frorn 8.5% to
50% of the amount collected. Most bid prices were in the 21 % to 28% range. The evaluation
committee did not feel that the bid at the 8.5% was as qualified and capable as rnost of the other
bids, nor did they respond completely to the RFP.
Two of the references provided by PMR Progressive LLC were contacted by a member of the
evaluation committee and indicated that they would recommend the company to others. Three
other references provided letters of reference which were included in the bid document. Given
the qualifications of PMR Progressive LLC, it is recommended that the Mayor and Common
Council adopt the resolution and engage PMR Progressive LLC. to begin collection services on
delinquent accounts.
FINANCIAL IMPACT:
The proposed firm has fixed fees for primary debt collection services provided by PMR
Progressive, LLC for the City of San Bernardino are as follows:
Emergency Medical Services Debt Collection Fee 28% (of the amount collected)
All other Debt Collection Fee 26% (ofthe amount collected)
PMR justifies the increased fee for Emergency Medical Services because it tends to be more
difficult to locate these debtors which makes the balances harder to collect.
RECOMMENDATION:
Adopt Resolution