TO: Mayor and Commissioners
FROM: Henry Dachowitz, Chief Financial Officer
THROUGH: Terrence R. Moore, ICMA-CM
DATE: May 20, 2025
Title
APPROVAL OF RESOLUTION NO. 105-25 TO AWARD AN AGREEMENT VALLEY COLLECTION SERVICE, LLC, FOR DEBT COLLECTION SERVICES REQUEST FOR PROPOSAL (RFP) NO. 2025-012 IN THE AMOUNT OF $67,500.
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Recommended Action:
Recommendation
Motion to approve Resolution No. 105-25 and to award an Agreement with Valley Collection Service LLC for Debt Collection Services Request fro Proposal (RFP) No. 2025-012 in the amount of $67,500.
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Background:
The City of Delray Beach has utilized Valley Collection Services over the past three (3) years, and by conducting our own RFP and through the Selection Committee Process has selected Valley Collection Service LLC to continue providing these services.
The proposed services consist in providing City-Wide Debt Collection Services for Emergency Medical Services, Fire Inspections, utility bills, parking citations accounts and other delinquent accounts, which will enhance the City’s revenues.
The term of this Agreement shall remain in effect for a term of three (3) years and may be renewed for two (2) additional one-year period(s), unless terminated earlier in accordance with the terms.
Should the City exercise the renewal options provided in the contract, the cumulative contract value is provided below.
This motion is in accordance with Code of Ordinances Chapter 36 Commission Approval Required and Purchasing Policies and Procedures Manual, Accessing Contracts from other Government Agencies and Not-for-Profit Organizations.
City Attorney Review:
Approved as to legal form and legal sufficiency.
Finance Department Review:
Staff believes that debt collection services play a vital role in the collection of debt owed to the city and that Valley Collection Service, LLC is the best option available to serve the city’s needs at this time.
Funding Source/Financial Impact:
Staff believes that debt collection services play a vital role in the collection of debt owed to the city and that Valley Collection Service, LLC is the best option available to serve the city’s needs at this time. No funding is required for the contract. For all Accounts referred by the City, which allow the fee to be added, a 9% fee shall be added by Valley Collection Service, LLC to the amount of the debt owed to the City. For those debts where the city is unable to add the fee, Valley will deduct 8% from the amount collected before submitting funds to the city.
Timing of Request:
Collection of receivables is critical to the City's Cash Flow. We would recommend immediate approval.