DATE: November 6, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: AMENDMENT 3 TO PROFESSIONAL SERVICES AGREEMENT WITH STATES RECOVERY SYSTEMS, INC. FOR DEBT COLLECTION SERVICES
RECOMMENDATION
title
Staff recommends that the City Council approve Amendment 3 to the Professional Services Agreement (PSA) with States Recovery Systems, Inc. ("States Recovery"), extending the term of the Agreement for one year through September 25, 2025, in an amount based on percentage of collections received for debt collection services; and authorize the City Manager to execute the amendment.
body
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 for 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. After all extension options have been exhausted staff will initiate a Request for Proposal for collection services.
Amendment 3 executes the first one-year extension since Amendment 2 provides the three additional extension options, extending the term of the Agreement through September 25, 2025.
States Recovery is a smaller, owner operated firm. The owner is actively involved in interfaces with city software programs and vendors, meets regularly with staff and has demonstrated their commitment to Oceanside's debt collection efforts.
Over the term of the agreement, States Recovery has quickly responde...
Click here for full text