Title
Approval of General Services Agreement No. AGR 21-57 with IC System in the amount of fourteen and one-half percent (14.5%) of any recovered amount on all referral accounts for the Purpose of Accounts Receivable Collection Services.
Recommended Action
I move that the Board of Public Utilities endorse General Services Agreement No. AGR 21-57 with IC System, not to exceed, fourteen and one-half percent (14.5%) of any recovered amount on all referral accounts for the purpose of Accounts Receivable Collection Services and forward to Council for approval.
Utilities Manager Recommendation
The Utilities Manager and staff recommend approval of the motion as presented.
Body
County staff currently performs initial collection activities for utility, landfill, and miscellaneous receivables for accounts less than (120) days past due. As of December 31, 2020, the County Utilities’ outstanding accounts receivables over (120) days past due was approximately $187,000. Collection activities for accounts over (120) days past due have not been conducted since the implementation of a new Enterprise Resource Planning system in 2018.
The County outsources the billing of ambulance services to Credit Bureau Systems, Inc. dba Ambulance Medical Billing (“AMB”). AMB is responsible for collections during the first 90-120 days after billing. The County, through AMB, will turn over ambulance accounts greater than (120) days past due to the Contractor. The County anticipates ambulance receivables turned over for collection services will total between $50,000-$150,000 per year.
The Department of Public Utilities (DPU) issued a Request for Proposal (RFP) soliciting for qualified contractors to provide accounts receivable collection services. Of the responses received and evaluated, IC System was selected by the RFP evaluation committee based on several factors including effectiveness and efficiency of process, experience and expertise, and cost.
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