CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of RFP 19-170, Collection Agency Services, to Penn Credit Corporation for 17% of the total monies collected not to exceed $120,000 [SK1]and for a three-year term
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In 2015, City Council established financial stability as one of the City's four Ends Policies. A critical element of maintaining the City's financial stability includes receiving monies due to the City in an efficient and timely manner.
The City of Naperville directly bills residents and customers for utility services, which may include one or all of the following: electric, water, sanitary sewer and trash services. The City also directly bills other miscellaneous charges such as damage to City property claims, truck permits, building inspections, recording fees, administrative towing fees, bail bonds and parking citations. Billing for two services, ambulance (EMS) services and fire response services for vehicle accidents and vehicle fires (non-EMS), has been outsourced to third-party vendors.
The majority of City bills are paid by the customers. However, there are instances where City receivables go unpaid. When all internal options are exhausted, the delinquent accounts are provided to the City's collection services vendor to resolve. In 2018, the City billed approximately $262,233,049.43 in receivables. Approximately, $1,181,147.59 or 0.45% of total receivables were sent to the City's outside collection agency with the outside agency collecting approximately 10%. In 2019, the collection rate has increased to approximately 14%.
DISCUSSION:
Advertisement Date:
09/04/2019
Notices Sent:
76
Opening Date:
09/27/2019
Planholders:
15
Proposals Received:
5
Proposals were received from the following vendors:
Life Line Billing Systems, LLC dba LifeQuest Services
Municipal Collections of America Inc.
Municipal Col...
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