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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 LEWIS & ASSOCIATES 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 LEWIS &
ASSOCIATES 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 LEWIS & ASSOCIATES FOR DEBT
COLLECTION.
I HEREBY CERTIFY that the foregoing resolution was duly adopted by
the Mayor and Common Council of the City of San Bernardino at a
meeting thereof, held on the
day of
. 1992, by the following vote, to wit:
Council Members:
AYES
NAYS
ABSTAIN
ESTRADA
REILLY
HERNANDEZ
MAUDSLEY
MINOR
POPE-LUDLAM
MILLER
ABSENT
City Clerk
The foregoing resolution is hereby approved this
of . 1992.
day
W. R. Holcomb, Mayor
City of San Bernardino
Approved as to
form and legal content:
JAMES F. PENMAN.
24 City Attorney
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1 AGREEMENT
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3 This AGREEMENT is made and entered into by and between the
4 CITY OF SAN BERNARDINO, a municipal corporation, hereinafter called
5 "CITY," and LEWIS & ASSOCIATES, hereinafter called "AGENCY."
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8 1. CITY will refer its past due accounts for collection in a
9 format that is mutually agreeable but may be changed from time to
10 time by CITY or AGENCY.
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12 2. AGENCY will diligently apply all effort to effect
13 collection of each account referred for collection, but will
14 refrain from using any approach, method or procedure which would be
15 detrimental to CITY policies or public image.
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22 4. AGENCY will provide the following reports a) an
23 alphabetical list of accounts assigned within ten days of the
24 assignment, b) a monthly cancellation report confirming canceled
25 accounts, c) a monthly itemized statement disclosing collections
26 made on CITY's accounts, and commissions due, which shall accompany
27 a check payable to CITY of San Bernardino for monies collected on
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CITY and AGENCY agree as follows:
3. AGENCY will abide in collection of all accounts assigned
to the fair debt collection practices act (PL 95-109) set forth by
the united States of America, and all California Laws and codes
pertaining to collection of accounts.
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1 AGREEMENT BETWEEN CITY OF SAN BERNARDINO AND LEWIS & ASSOCIATES
2 assigned accounts.
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4 5. AGENCY agrees to indemnify and hold CITY and its employees
5 harmless from any liability, claims damages, and suits 'or other
6 legal proceedings, by whomever and whenever, brought arising out of
7 or relating to AGENCY conduct concerning collection of CITY past
8 due accounts. Said duty to indemnify and hold harmless includes
9 the duty to defend CITY and its employees against such liability,
claims, damages, suits, or other legal proceedings and to assume
and pay all expenses of, and incidental to, such defense.
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13 6. CITY agrees to indemnify and hold AGENCY and its employees
14 harmless from any liability, claims, damages and suits or other
15 legal proceeding, by whomever and whenever, brought and arising out
of or relating to CITY error in accounting or misinformation on
assigned past due accounts.
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19 7. AGENCY records which refer to monies collected under this
20 agreement shall be kept in accordance with the accounting standards
21 set forth by the State of California, Bureau of Collection and
22 Investigative Services, 440 R Street, suite 200, sacramento,
23 California 95814.
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25 8. AGENCY fee is 30% Commission rate on all monies collected
26 for past due accounts.
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1 AGREEMENT BETWEEN CITY OF SAN BERNARDINO AND LEWIS & ASSOCIATES
2 9. The term of this Agreement shall be for three years,
3 commencing on July 6, 1992, and continuing to and including July 5,
4 1995. Upon expiration of the term of this Agreement, CITY shall
5 have the right to extend the same for an additional one year period
6 to and include July 5, 1996. Should CITY elect to extend the term
7 of this Agreement, CITY shall so notify AGENCY in writing thirty
8 days prior to July 5, 1996.
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10 10. CITY retains the right, at the discretion of the city
11 Administrator, to terminate this Agreement upon giving a thirty day
12 notice of such termination to AGENCY.
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15 IN WITNESS WHEREOF, the parties have executed the Amendment to
16 Agreement on the
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day of
, 1992.
LEWIS , ASSOCIATES
CITY OF SAN BERNARDINO
W. R. Holcomb, Mayor
Jerry Hall, Branch Manager
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Approved as to form
20 and legal content:
21 JAMES F. PENMAN,
City Attorney
ATTEST:
Rachel Krasney, City Clerk
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BY:
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