Memorandum

City Attorney’s Office /

Municipal Court

City of Lawrence

TO:	David L. Corliss, City Manager
FROM:	Vicki Stanwix, Court Administrator
C:	Toni Wheeler, City Attorney Diane Stoddard and Cynthia Wagner, Assistant City Managers Ed Mullins, Finance Director
Date:	March 3, 2014
RE:	Contract for Collection Services for Lawrence Municipal Court

Please place the below item on the March 11 City Commission agenda:

A request to authorize the City Manager to execute a contract with Gila L.L.C., d/b/a Municipal Services Bureau, for collections services for Lawrence Municipal Court. Staff recommends the City contract with Municipal Services Bureau (MSB) after a review of proposals from firms through a Request for Proposals (RFP).

Background

The Lawrence Municipal Court adjudicates misdemeanor, traffic and parking violations within the city limits of Lawrence. Upon conviction of these violations, defendants are assessed fines and court costs as ordered by the municipal judge. A variety of in-house methods and programs are used to collect fines and fees. If additional time is needed to pay fines, defendants may request an extension from the judge. Defendants may be allowed to complete community service hours in lieu of fines. Defendants may also be monitored monthly on a special payment review court docket. When defendants do not appear on a scheduled court date, a 30-day notice, or bench warrant may be issued. When all in-house collection methods have been exhausted, adjudicated cases are submitted to a collection agency at the discretion of the judge.

RFP Process and Analysis

The Municipal Court staff solicited proposals for the collection of delinquent receivables on adjudicated cases including court fines and fees, restitution, parking fines and meter parking fees. Proposals were evaluated by Municipal Court and Finance Department staff with regard to the following criteria:

· Experience with the collection of court fines and fees

· Proposed cost of service and target recovery rate

· Quality and scope of service offered

Staff received and reviewed five (5) proposals. The top three proposals were then further reviewed and ranked based on the above criteria as well as the firm’s responses to the questionnaire included in the proposal. Municipal Services Bureau (MSB) was selected by staff as the vendor offering the most value to the court for collection services for the following reasons:

• MSB’s experience in court collections in Kansas is greater than the other two firms under consideration.

• MSB’s proposal is the most cost effective option and the only one that will allow the court to recover 100% of initial fines and fees submitted.

• MSB has a competitive recovery rate and is the only vendor that has the capability to cross-reference defendants with other Kansas courts for updated contact information.

• MSB’s payment options are the best suited to our operational needs.

• MSB has provided the City with excellent technical support, reliable customer service, and very few complaints in the last ten years of service as the court’s collections agency.

During the past ten years, the City submitted 22,455 accounts to MSB totaling $3.7 million dollars in unpaid fines. MSB collected just under $1 million in fines and fees resulting in an average return of 27%.

Action Requested:

Authorize the City Manager to execute a contract with Gila, L.L.C. d/b/a Municipal Services Bureau, for collection services for Lawrence Municipal Court.