Fremont City Council Meeting: 11/12/24 07:00 PM
3300 Capitol Avenue Div/Dept: Finance Department
Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5294) DOC ID: 5294
Updated: 11/6/2024 8:27 AM by Dina Lewis Page 1
COLLECTION AGENCY AGREEMENT AMENDMENT - Amend Collection Agency Agreement with Financial Credit Network to Increase the Not-to-Exceed Amount to $180,000
Contact Persons:
Name: Kristi Bartelmie David Persselin
Title: Revenue Division Manager Finance Director
Div/Dept: Finance Department Finance Department
Phone: 510-494-4797 510-494-4631
E-Mail: [email protected] [email protected]
Executive Summary: The City’s current agreement with Financial Credit Network (FCN) for collection services runs through June 30, 2026. The original not-to-exceed amount of $99,000 has been reached. Consequently, staff recommends that the City Council authorize the City Manager or her designee to execute an amendment to the agreement with FCN to increase the not-to-exceed amount by $81,000 for a total of $180,000.
BACKGROUND: FCN provides collection services to recover delinquent payments owed to the City for various taxes, fees, and fines. Delinquent accounts are only referred to FCN after City staff have exhausted all other means of collecting. The current service agreement with FCN is for the period from July 1, 2021, through June 30, 2026, and has a not-to- exceed amount of $99,000.
DISCUSSION/ANALYSIS: FCN charges the City a collection fee equal to 24% of actual recovered payments. As the value of recovered payments under the current agreement has now exceeded $412,500, the original not-to-exceed amount has been reached. Based on the value of recent collections, staff estimates an additional $81,000 will be sufficient to pay the collection fees through the remaining term of the agreement. Accordingly, staff recommends that the City Council authorize the City Manager or her designee to execute an amendment to the agreement with FCN to increase the not-to-exceed amount by $81,000 for a total of $180,000.
FISCAL IMPACT: Because fee payments to FCN are deducted from the revenues that they remit to the City, the increase in the not-to-exceed amount will not require a corresponding increase in expenditure appropriations.
ENVIRONMENTAL REVIEW: Action on this item represents a fiscal, organizational, and/or administrative governmental activity that will not result in physical changes in the environment. Therefore, it is not a project subject to review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378.
ATTACHMENTS: None.
Council Staff Report (ID # 5294) Meeting of November 12, 2024 Updated: 11/6/2024 8:27 AM by Dina Lewis Page 2
RECOMMENDATION: Authorize the City Manager or her designee to execute an amendment to the current agreement with FCN to increase the not-to-exceed amount by $81,000 for a total of $180,000.