DATE: October 7, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: AMENDMENT 5 TO PROFESSIONAL SERVICES AGREEMENT WITH STATES RECOVERY SYSTEMS, INC. FOR DEBT COLLECTION SERVICES
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 5 to the Professional Services Agreement (PSA) with States Recovery, Inc. (“States Recovery”), extending the term of the agreement for one year through September 25, 2027, in the amount based on percentage of collections received for debt collection services; and authorize the City Manager to execute the amendment.
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BACKGROUND AND ANALYSIS
In September 2019 the City Council approved a three-year PSA with States Recovery in an amount based on percentages ranging from 12 to 50 percent of collections received from debt collection services. The Agreement includes the option to extend for two additional one-year terms.
In September 2022, the City Council approved Amendment 1 executing the first one-year extension option extending the term of the Agreement through September 25, 2023.
In September 2023, the City Council approved Amendment 2, the second one-year extension option; extending the term of the Agreement through September 25, 2024. Amendment 2 provided three additional one-year extension options for a total contract term of eight years.
In November 2024, the City Council approved Amendment 3, executing the first one-year extension since Amendment 2 provided the three additional extension options, extending the term of the through September 25, 2025.
In September 2025, the City Council approved Amendment 4, executing the second one-year extension option; extending the term of the agreement through September 25, 2026
Amendment 5 executes the last one-year extension option; extending the term of the Agreement through September 25, 2027.
States Recovery is an owner-operated firm that has been providing collection services since 1988. The owner remains...
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