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CITY OF SAN BE~ARDINO - REQUES~OR COUNCIL ACTION
From: ANDREW GREEN, DIRECTOR OF FINANCE
Subject: REVENUE RECOVERY PROGRAM
Dept: FINANCE
Date: APRIL 28, 1992
Synopsis of Previous Council action:
Recommended motion:
1. ADOPT RESOLUTIONS
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Signature
Contact penon: ANDREW GREEN, DIRECTOR OF FINANCE
Supporting data aUached:
Phone:
Ward:
FUNDING REQUIREMENTS:
Amount:
Sou rea: (ACCT. NO.)
(ACCT. DESCRIPTION)
Flnanca:
Council Notel:
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CITY OF SAN BELARDINO
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- REQUES~OR COUNCIL ACTION
STAFF REPORT
It is very important, especially in these economically depressed times, that the
City maximize revenue collection. As a result, the current revenue collection
process is being updated.
The City's current account receivable collection process does not allow for
interest charges on delinquent accounts. Interest charges will act as an
incentive for payment of outstanding receivables. Currently the legal rate of
interest is one and one half percent of the outstanding balance and accrued
monthly.
Attached is the updated revenue recovery program which is designed to maximize
revenue recovery on the City's receivables. Although most of the program can
be implemented administratively, Finance has been informed by the City Attorney's
office that the Mayor and Common Council would have to approve the interest
charge portion of the updated program.
By selecting two collection agencies, the City is again maximizing revenue
collection on past due accounts. Agencies will competively work the receivables
in hopes of future assignments. These two agencies were selected since their
fee is lower than the industry's average and because of their working history and
performance with the city.
I recommend adoption of the attached revenue recovery program as the City's
formal accounts receivable collection process.
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH CREDIT BUREAU OF SAN BERNARDINO,
INC., FOR DEBT COLLECTION.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor is hereby authorized and directed to
execute of behalf of said City an Agreement with CREDIT BUREAU OF
SAN BERNARDINO, INC., for debt collection, a copy of which is
attached hereto and incorporated herein, marked Exhibit "A."
SECTION 2.
The authorization to execute the above-
referenced agreement is rescinded if the parties to the agreement
fail to execute it within sixty (60) days of the passage of this
resolution.
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RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH CREDIT BUREAU OF SAN BERNARDINO,
INC., FOR DEBT COLLECTION.
I HEREBY CERTIFY that the foregoing resolution was duly
4 adopted by the Mayor and Common Council of the City of
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San Bernardino at a
meeting thereof, held on the
, 1992, by the following vote, to wit:
day of
Council Members:
AYES
NAYS
ABSTAIN
8 ESTRADA
9 REILLY
10 HERNANDEZ
11 MAUDSLEY
12 MINOR
13 POPE-LUDLAM
14 MILLER
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ABSENT
City Clerk
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The foregoing resolution is hereby approved this
, 1992.
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day
W. R. holcomb, Mayor
City of San Bernardino
Approved as to
form and legal content:
JAMES F. PENMAN,
City Attorney
By:L7.;L
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AGREEMENT
This AGREEMENT is made and entered into by and between the
CITY OF SAN BERNARDINO, a municipal corporation, hereinafter called
"CITY," and CREDIT BUREAU OF SAN BERNARDINO, INC., hereinafter
called "AGENCY."
CITY and AGENCY agree as follows:
1. CITY agrees to periodically assign certain past due
accounts for collection to AGENCY in a mutually determined format.
2. AGENCY agrees to pursue to the effect of collection on
each account assigned with due diligence adhering to local and
California Laws, and the fair debt collection practices act as set
forth in (PL 95-109) by the United States of America.
3. AGENCY agrees to proceed with collection on certain past
due accounts in a manner and technique conducive to CITY policies
and in the interest of the public image of CITY.
4. AGENCY agrees to indemnify, defend, and retain CITY and
CITY's representatives, officials, and employees harmless from all
third party claims, damages, liabili ty, sui ts and other legal
proceedings relevant to the conduct of AGENCY regarding the
collection of CITY's past due accounts.
5. AGENCY agrees to indemnify, defend, and retain CITY and
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AGREEMENT BETWEEN CITY OF SAN BERNARDINO AND CREDIT BUREAU OF SAN
BERNARDINO, INC.
CITY'S representatives, officials, and employees harmless from all
third party claims, damages, liability, suits and other legal
proceedings resultant to errors in accounting, recording, or other
misinformation on assigned past due accounts.
6. AGENCY agrees to account for monies collected according to
the standards of the State of California, as established by the
Bureau of Collection and Investigative Services, 400 R street,
suite 200, Sacramento, CA 95814.
7. AGENCY agrees to provide CITY with the following reports
(a) an acceptance of accounts assigned to AGENCY for collection
within ten days of the date of assignment; (b) a statement,
accompanying AGENCY's check payable to CITY, disclosing all monies
collected, paid accounts, and AGENCY commission.
8. AGENCY agrees to obtain prior written consent from CITY
before initiating legal action or forwarding assigned accounts.
AGENCY agrees to assume all costs associated with all legal and
forwarded accounts and will be reimbursed by debtor.
9. CITY agrees to pay AGENCY 30% commission fee for the
collection of past due accounts assigned, and 50% fee for legal and
forwarded accounts with the prior written consent of the city.
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10.
The term of this Agreement shall be for three years,
commencing on July 6, 1992, and continuing to and including July 5,
1995.
Upon expiration of the term of this Agreement, CITY shall
have the right to extend the same for an additional one year period
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to and include July 5, 1996. Should CITY elect to extend the term
of this Agreement, CITY shall so notify AGENCY in writing thirty
days prior to July 5, 1996.
11. CITY retains the right, at the discretion of the city
Administrator, to terminate this Agreement upon giving a thirty day
notice of such termination to AGENCY.
IN WITNESS WHEREOF, the parties have executed the Amendment to
Agreement on the
day of
, 1992.
CREDIT BUREAU OF
SAN BERNARDINO, INC.
CITY OF SAN BERNARDINO
Perry Knight, President
W. R. Holcomb, Mayor
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21 Approved as to form
and legal content:
ATTEST:
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JAMES F. PENMAN,
23 City Attorney
Rachel Krasney, City Clerk
24 BY:
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