DATE: September 17, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: AMENDMENT 4 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 4 to the Professional Services Agreement (PSA) with States Recovery, Inc. ("States Recovery"), extending the term of the agreement for one year through September 25, 2026, under the existing commission-based structure 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 with commission rates ranging from 12% to 50% of collections received from debt collection services. The agreement includes the option for two additional one-year extensions.
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 added three additional one-year extension options for a total contract term of eight years. Staff will issue a Request for Proposals for collection services once all extensions are exhausted.
In November 2024, the City Council approved Amendment 3, executing the first one-year extension and extending the term of the through September 25, 2025.
Amendment 4 executes the second one-year extension option; extending the term of the agreement through September 25, 2026.
States Recovery is an owner operated firm in business since 1988. The owner is directly involved in interfaces with City software programs to ensure efficient collection on delinquent accounts. States Recovery also aids in the annual submission of delinquent accounts to th...
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