CITY COMMISSION AGENDA ITEM

Department:	Municipal Court		Commission Meeting Date:  08/07/2018
Staff Contact:	Vicki Stanwix, Municipal Court Manager
Recommendations/Options/Action Requested:
Authorize the City Manager to execute a contract with Valley Collection Service, LLC, for collections services for the Lawrence Municipal Court.
Executive Summary:		In March, staff solicited Request for Proposals (RFP) for collection services for delinquent court fines, fees and restitution.  Our current contract with Municipal Services Bureau expired on June 30, 2018. The City received nine (9) proposals including two (2) from Kansas.  There were no responses from the Lawrence area.  A team consisting of Court staff and the Municipal Court Judge was assembled to review the proposals. Several criteria were used in evaluating the proposals, including; commission fees/charges, collection success rate, agency staffing and references.  Staff reviewed in-state versus out-of-state proposals equally and feels that a Kansas location is not necessarily a cost or technology factor. Staff interviewed three (3) prospective agencies that best met the criteria sought.  After reviewing the proposals, interviewing the agencies and contacting references, the review team reached a consensus to recommend the proposal submitted by Valley Collection Service, LLC of Glendale, Arizona.  Valley Collection Service, LLC has 38 years of experience in the government collection industry, a competitive fee, and high marks from references including the Overland Park Municipal Court. Valley Collection Service, LLC offers a competitive commission rate of twenty percent (20%).  This is the same rate charged by our previous vendor, and is equal to or less than the other rates proposed.  A twenty-five percent (25%) collection fee is added to all fines sent to collections which results in a cost neutral outcome for the City when payment in full is received.
Strategic Plan Critical Success Factor		Effective Governance/Professional Administration Core Services Sound Fiscal Stewardship
Fiscal Impact (Amount/Source):		On average, the Lawrence Municipal Court submits 450 cases per year with delinquent fines and fees totaling over $250,000.  The success rate for our current provider for the last two years of collections has averaged five percent (5%).  Valley Collection Service, LLC has a reported average collection rate of thirty-two percent (32%).  We anticipate that the fiscal impact to the City should be positive.
Attachments:		Proposed Contract

Reviewed By: (for CMO use only)

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