HomeMy WebLinkAbout0324.095TO:
FROM:
City of Palo Alto
City Manager's Report
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: FINA-~CE
AGENDA DATE: JUNE 26, lY95
SUBJECf:
REQUEST
APPROVAL OF AMENDMENT NO. t TO AGREEMENT NO.
S3033811 BETWEE."i THE CITY OF PAW ALTO AND CREDIT
BUREAU OF PAW ALTO, INC. TO INCREASE
COMPENSATION AUTHORITY FOR COLLECTION OF
DELiNQUENT PARAMEDIC RECEIVABLES
The purpose of this report is 10 request Council approval of • <:ontract amendment foe
increased autboriIy 0( fundiilg in the amounI 0($15,000 10 compensale lb. Cndit Bureau 0(
Palo Alto, Inc. (Cndit Bureau) foe collections servlces through June 30, 1995.
RECOMMENDATION:
SIalf recommends that CowJcil autOOrize the City Manager Ie exec-ute an amendment 10 the
agreement ",i1hthe C>edit Bureau in the amo\lllt 0($15,000.
EXf,CVflYE SJlMMARY
The City coolracted with Credit Bureau in June 1992 for lISSistancc in the COllection of
delinquent panimedic acwunts (CMR:29J :92). The Credit Bureau is paid based on a
percenta~ o(the revenue it recovers (collects) for the City. The nature O(lhe contract is
such that staff can estimate only Ibe amount that will be spenllo recompense Credit Bureau
foe its work during !he year. The actual amount paid is based on the number 0( invoices
turned over foc collection and on the Credit Bureau', success in pursuing payment.
The Credit Bureau lias been vet)' successfullhis fiscal year in its coIlc<:\ions efforts. As of
April 30. 1995, it had recovered over $102,000. This enhanced cqnc<:tions effort has resulted
ha·'·"
,..;
2
· ,.-.
".','
in 1he original con!r.iCIlI1IIh<lriIy roc compensation of$30,OOO being JUDy exhausted after len
months. Staff estimates 11mt additional contract authority of an amounI not 10 exceed
SI5,OOO will be reqclred through the end of June 1995, and is requesting Council approval
of. <:eootract amendmenllo compensate the CredIt Bureau, accordingly. The Io!al contract
authorization would be 545,000 if the amendment is approved. The Fire Department has
sufficient funds budgeted for Ibis contract, so no budget amendment oraIrul1lCe is required.
The additional $15,000 will be more than offset by an estimated $40,000 in revenues from
the collection activity anticipated 10 occur in Ibis time period.
Staff is in the processofissWng • Request for Proposal (RFP) for conection services roc 1he
upcoming three years. Since evaluation of the m;ponses and award of contract W111 DO( be
completed unnl the beginning of the next fisca) year, staff will establis!l • new .greement
with the Credit Bureau ofPa..lo AlIo fer Ibe period of time (up to three months) re'luired to
romplele the RFP process.
FISCAl, WPAcr
The increase of $ 15,000 in contract cost k< !he Credit Bureau of Palo Aho will be offset by
!In aPProximate increase in revenue of $40,000. There is no BAO requested as these funds
have been budgeted in the Fire Department.
POllCY IMPLICATION
No policy changes are proposed.
ENVIRONMENTAL ASSESSMENT
This amendment to the agreement does not <;Ot!Stitute a project undet the California
Environmental QualIty Act. Tbererore, no environmental assessment is needed.
ATTACHMENT
Am<ondment ot Agreement
Pac·lall
CI1Y MANAGER APPROY AI.:
CC: nfa
hMnmmllf Il10. 1 ro AGUBHBIiT 110. S3033Ul
IIIi'l'WKE1r '1'Im CI'n' OF PALO ALro UID
~I'I' IICllSA11 01' PALO ALro, DiC.
"ntis Amendment No. 1 to J...greemen,t-No. S3033811
("Agreement-) is entered into .. 'by and between
tbe CIn OF PALO Al.'ro \"CITt') .. arid CREDIT BUREAU OF .PALO ALTO,
INC .• a California corporatiOD~ located at 814 San Aatonio Road,
Palo Alto. CA 94303 !'CONTRAC"l'OR"}.
I I C .I TAL $;
WHEREAS, the Agreement was entered into between the
parties for the provision of delinquent accounts recei~cLble
Invoices collection assistance and manag2meDt; and
WHEREAS z the parties wieh to amend the Agreement;
NOW .. TKEREFORE .. in considera.tion of the covenants,
terms .. cooditions, and provislo~s of this Amendment. che parties
agree:
SBC'fIQN 1. 'I'be Section entitled '"COMPENSATION" is
hereby amended. in whole or in part. to read as follows:
"COMPENSATION FOR THE FULL PERFORMANCE OF THIS AGREE-
MENT: CITY SRALlr PAY CONTICACTOR: $4S .. 0,00 .... or an increase of
$15.00c) due to this Amendment No. L·
SBCTIQN 2~ Except. as herein modified l all other
provisions of the Agreement, including anf ~~ibits and
irubsequen-t amend!nen·ts thereto ... shall remal1n in full .force and
effect:~
. n; WITNESS WHEREOF .. the parties have by t.heir duly
authori~ed representatives executed this Amendment on ~he date
first ~Je writ~en.
~1ty clerk
APPROVED AS TO FORM,
sea~or ASst. c~ty Attorney
APPROVED:
ASa~sta.nt City Manager
b~rector of Admin. seiVices
1
CITY OF PALO ALTO
Mayor
CREDIT BUREAU OF PALO ALTO.
INC.
~~:: ;t;;;;d 44 6 .. /
Taxpayer 1.0. No. 77-0070314