HomeMy WebLinkAboutItem G FP49(‘1)
July 7, 1999 1 •
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STAFF REPORT
TO: Mayor and Members of the City Council
FROM: Elizabeth Stoddard, Director of Administrative Services
SUBJECT: PROPOSAL TO PROVIDE COLLECTION SERVICES
FOR D.U.I. COST RECOVERY
SUMMARY OF REQUEST:
Staff requests authorization for the Director of Administrative Services to execute a
agreement to provide attorney collection services for individuals involved in D.U.I.
incidents in the City with Ferguson, Praet & Sherman.
BACKGROUND:
From time to time it is in the best interest of the City to review current practices within the
Administrative Services Department to determine if there is a more cost effective and
efficient method available to staff. Recently, the City received a proposal from the law
offices of Ferguson, Praet & Sherman who specialize in the collection of cost associated
with D.U.I. The collection rate of the City through our accounts receivable system is
approximately 15%. This is not unusual. The City does not have the manpower or time
required handling collection of these difficult accounts. By retaining this firm to handle
the administrative costs, the Cost Recovery Program can produce marked revenue
because this firm absorbs a larger share of the administrative costs and manpower. Small
claims court action against debtors has not proven to be effective or cost efficient. The
costs incurred with service of process and asset searches are difficult to recover from a
judgment proof debtor. This contract can be terminated with a 30 day written notice as
outlined in Exhibit A.
FISCAL IMPACT:
By utilizing these collection services, the City can achieve a 65 to 70% collection rate.
The firm will receive one-third (1/3) of the net recovery of all amount recovered, whether
by way of settlement,judgement or otherwise. The net recovery is less approximately $15
to $20 for postage only. The City may realize an additional $30,000 with effective follow-
up of D.U.I. cost recovery.
Agenda Item
t
Proposal to Provide Collection Services
For D.U.I. Cost Recovery
July 7, 1999
Page -2
RECOMMENDATION:
Authorize the Director of Administrative Services to Accept a Proposal from Ferguson,
Praet & Sherman for D.U.I. Cost Recovery.
0-WA aL-
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Elizab: Stoddard
Direct. of Administrative Services
NOTED AND APPROVED:
Keith Til
City Manager