HomeMy WebLinkAboutPR 15132: RETAIL MERCHANTS ASSOCIATION - PROFESSIONAL SERVICES CONTRACTCITY OF PORT ARTHUR
FINANCE DEPARTMENT
TO: Steve Fitzgibbons, City Manager
FROM: Rebecca Underhill, Assistant City Manager/Finance Director
SUBJECT: Proposed Resolution No. 15132
DATE: March 6, 2009
COMMENTS
RECOMMENDATION:
It is recommended that the City Council approve Proposed Resolution No. 15132 entering into
an agreement with "Retail Merchants Credit Association" of Port Arthur as a provider of
collection services for certain past due water/sewer/garbage accounts. RMA will also work to
collect grass cutting accounts, and any other accounts we submit to them.
BACKGROUND:
The "Billing and Collections" Division of the Finance Department dealing with Water Utilities
accounts, does not have the resources available to collect past due accounts whereby the
customer has moved leaving a balance owing, and not leaving a forwazding address. Most of the
accounts are aging and need to be addressed. The "Retail Merchants Credit Association"
(RMA) has the adequate staffing and computer technology for effective follow-up of accounts.
They will mail notices, make phone contacts using power-dialing applications, skip tracing, etc.
The non-responsive past due accounts will be posted on the Trans Union and Equifax Credit
Reports and shall remain listed with the RMA for a period of not less than 24 months. The RMA
shall remit promptly at the close of each month a full accounting of transactions with the
collection fee being deducted from remittance; this is a taxable service, so Texas Sales Tax shall
be withheld. For their services the RMA chazges 35% for electronic listings that will be
provided through the Billing and Collections Division.
This type of collection process has not been done by the City of Port Arthur since the mid 90's.
This is an extra effort to cleaz up outstanding debts on the books.
BUDGETARY/FISCAL EFFECT:
Increase collections from overdue customer accounts.
EMPLOYEE/STAFF EFFECT:
None.
SUMMARY:
I recommend approval of the agreement with the RETAIL MERCHANTS CREDIT
ASSOCIATION. The RMA uses only lawful, ethical standards and procedures in the collection
process. They aze a local Port Arthur firm dealing with vazious individuals on a personal basis.
P.R.15132
JJA: 3/2/09
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER
TO EXECUTE A PROFESSIONAL SERVICES
CONTRACT WITH RETAIL MERCHANTS
ASSOCIATION TO PROVIDE COLLECTION SERVICES
RELATED TO DELINQUENT ACCOUNTS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT
ARTHUR:
THAT, the City Manager of the City of Port Arthur is hereby authorized and directed to
execute on behalf of the City of Port Arthur a professional services contract between the City of
Port Arthur and Retail Merchants Credit Association to provide non-exclusive collection
services; and
THAT, this agreement will apply to past due water, sewer and garbage accounts, grass
cutting bills, and any other accounts or bills that aze referred by the Director of Finance; and
THAT a copy of said contract is attached hereto and made a part hereof as Exhibit "A";
and,
THAT a copy of the caption of this resolution be spread upon the Minutes of the City
Council.
READ, ADOPTED, AND APPROVED, this- day of March , 2009, A.D., at
a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote:
AYES:
Mayor:
NOES:
Mayor
ATTEST:
Terri Hanks, Acting City Secretary
APPROVED AS TO FORM:
i'Z,.~t 5+.~~
Mark Sokolow, City Attorney
APPROVED FOR ADMINISTRATION:
Stephen Fitzgibbons, City Manager
P OVED AS TO AVAILABILITY OF FUNDS:
Rebecca Underhill, Assistant City ManagerlFinance Director
EXHIBIT "A"
March 03, 2009
City of Port Arthur Water Department
Box 1089
Port Arthur, TX 77642
CLIENT #: o2sss
We are pleased to be considered as the provider of collection services. This letter will serve as our agreement
for collection service. This agreement is non-exclusive. Service is available to begin immediately.
1. The RMA shall provide adequate staffing and computer technology for effective follow-up of accounts.
2. Notices, phone contacts, power-dialing applications, skip tracing, account manager review, etc. will be
provided on all accounts. Our approach is friendly but firm, with constant follow up.
3. Accounts may be listed manually or electronically. Information needed is responsible party data,
service address, payment information, brief description of charges and any account notes.
4. Accounts listed shall remain with the RMA for the term of this agreement. No fee due on cancelled and
returned accounts.
5. Errors and Omissions Professional Liability $100,000 provided by AIG.
6. Texas third party debt collector Bond # LPM7586572.
7. Accounts will be posted on the Trans Union and Equifax Credit Report.
8. The RMA shall comply at all times with FDCPA, State and Federal Laws.
9. The RMA shall comply at all times with the Fair Debt Collection Act when dealing with customers on
behalf of the City of Port Arthur.
10. The RMA shall provide access to accounting records for audit purposes.
11. RMA shall provide statistical reporting on request.
12. The RMA shall remit promptly at the close of each month, a full accounting of transactions.
13. The collection fee shall be deducted from remittance. Texas Sales Tax shall be withheld if applicable.
14. Any and all payments made directly to the client are to be reported immediately. Usual fee will apply.
15. The contingent collection fee for electronic listings shall be 35%.
16. This is anon-exclusive agreement between RMA and the City of Port Arthur.
17. In the event the City of Port Arthur chooses to cancel this agreement, RMA agrees to return the
accounts to the City and no fees will be assessed.
18. This agreement remains effective for two years commencing on April 1, 2009 unless cancelled by the
City of Port Arthur with 30 days notice.
RETAIL MERCHANTS CREDIT ASSOCIATION
3830 Hwy 365
Port Arthur, Texas 77642
(409)721-8701 Fax (409)721-8700
Laura Childress, Vice President
Authorized Client Signature
Client Name
Address
City State_ Zip
Phone Fax