TO: Mayor and Commissioners
FROM: Kimberly Ferrell, Finance Director
THROUGH: Mark R. Lauzier, City Manager
DATE: March 6, 2018
Title
TERMINATE ACCOUNTS RECEIVABLES, INC. (ARI) FOR COLLECTION OF THE CITY’S CONSUMER DEBT
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Recommended Action:
Recommendation
Motion to terminate Accounts Receivables, Inc. (ARI) with 30 days notice.
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Background:
One of the two contractors that we utilize for parking collections, ARI is underperforming. In twelve months ARI has only collected $50,508 in delinquent parking tickets and associated fees; this represents a collection rate of 5.23%. Lanier in six months has collected $142,000; this represents a collection rate of 47.8%.
It is City of Delray Beach Staff's recommendation that we terminate the ARI contract under the convenience clause in the attached contract, which requires City Commission action and thirty days notice. Because these tickets are already aged at least 180 days, City Staff believes that time is of the essence in getting these records turned over to a collection agency with parking ticket collection experience. During the time that it takes to terminate, City Staff is reviewing qualified and experienced vendors with the intent to move forward under a piggy-back contract on April 3, 2018.
We recommend the following courses of action:
• Update the current ordinance (as it pertains to DMV registration of unpaid parking tickets);
• Seek approval to move forward with piggy-back contract with an experienced vendor; and,
• Register the aged portfolio of parking tickets with the DMV in order to collect outstanding parking tickets through vehicle registration renewals.
City Attorney Review:
Approved as to form and legal sufficiency.
Funding Source/Financial Impact:
Increase Legacy aged parking collections from $50,508.
Timing of Request:
The Legacy delinquency parking portfolio is at least 180 days aged and time is of the essence to achieve positive collection results.