Agenda Item # 3
Columbus Consolidated Government
Council Meeting
03/13/2007
Agenda Report # 112
TO: Mayor and Council
SUBJECT: Debt Collections Agreement
INITIATED BY: Financial Planning Department
Recommendation: Approval is requested to enter into an agreement with PRA
Government Services, LLC dba Revenue Recovery Systems as a part of an aged
receivables management program offered through the Georgia Municipal
Association, Inc. for the collection of aged receivables.
Background: Revenue Recovery Systems will assist the City with the collection
of aged receivables in all categories as needed, including, but not limited to,
Landfill Collections, Ambulance, Medicare, Demolition Liens, Parking etc.
Analysis: Revenue Recovery Systems will begin the collection process on City
accounts beginning the day the accounts are placed. The agreement will
terminate at the close of the calendar year in which it is executed and the
close of each succeeding calendar year for which it may be renewed.
Financial Considerations: The cost to the city will be only for those accounts
they actually collect on at a rate of :
Debt Summary Overview GMA Collection Fee
Less than $100 per placement and Less Than 1 year old 27%
Greater Than $100 per placement and Less Than 1 year old 23.4%
Placements Greater Than 1 year old 27%
Seconds( defined as: placements where recovery
Efforts have already taken place by outside source 35.1%
Legal Considerations: The City Attorney reviewed the agreement as to form.
Recommendations/ Actions: Approval is requested to enter into an agreement
with PRA Government Services, LLC dba Revenue Recovery Systems as a part of an
aged receivables management program offered through the Georgia Municipal
Association, Inc., for the collection of aged receivables.
Attachments
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