City of Lawrence

Finance Department

MEMORANDUM

DATE:	1/4/06
TO:	Mike Wildgen, City Manager
FROM:	Casey Liebst, Management Analyst
CC:	David Corliss, Assistant City Manager Debbie Van Saun, Assistant City Manager Alan Landis, Purchasing Specialist
RE:	Recommendation for Collection Services Agreement

Please include the following item on the City Commission consent agenda for consideration at the January 10, 2005 meeting:

Authorization for the City Manager to negotiate an agreement with Haase and Long for collection services for a period of no more than one year.

Background

In 2002, the City decided to competitively bid collection services for city receivables including past due utility billing accounts, ambulance charges, municipal court fines and fees, and other miscellaneous receivable accounts.  Revenue Assurance Professionals was selected for collections for City Receivables while, due to special expertise and experience, Municipal Services Bureau was selected to handle collection efforts for the Municipal Court. 

Pursuant to City practice, Requests for Proposals for Collection services were again sent out in October of this year.  Municipal Court did not participate in this RFP, expressing a desire to continue using Municipal Services Bureau.  Seven proposals were received however, only four met the requirements as outlined in the RFP.

Analysis

A review committee was made up of Casey Liebst, Dawn Jackson, and Jonathan Douglass to review the proposals.  Their composite score sheet is attached.  Haase and Long received the highest score. 

The fees for services provided by Haase and Long were higher than the other firms, however, the committee felt the quality of service provided and the collection rate that can be achieved by the firm will more than justify the additional expense and will be in the best interest of the City.

Among the items the committee noted were the firms’ knowledge of the City’s operations [the City used Haase and Long (formerly Credit Bureau of Lawrence) for over 10 years prior to competitive bidding in 2002], knowledge of the Lawrence community and experience collecting from a transient college population, the assignment of two staff members to work all accounts turned over by a client, and the firm’s ability to customize reports to provide the information needed to track the status of accounts and performance of the agency. 

Recommendation

The Committee recommends that the City Commission authorize the City Manager to enter into an agreement with Haase and Long for a period of no more than one year, to provide collection services for the City’s receivable accounts as well as fire and medical charges according to the following fee schedule:

	Invoices under $1,000	Invoices over $1,000
New Accounts	35% contingency	30% contingency
Accounts Previously Turned Over to Other Agency	45% contingency	40% contingency
Accounts referred to an attorney	50%	50%