Title
a. Approve and authorize the Treasurer-Tax Collector to sign the Participating Agreement between the County of Monterey, by and through the Monterey County Treasurer-Tax Collector and AllianceOne Receivables Management, Inc., which specifies collection services to be performed under the terms of the Judicial Council of California negotiated Master Agreement No. MA-2018-09, for a term of one year to commence with the signing of the Agreement through December 31, 2023, in the amount not to exceed $150,000 and
b. Authorize the Treasurer-Tax Collector to extend the Participating Agreement through December 31, 2028, where the Amendments do not exceed 10% annually of the Agreement amount or significantly change the scope of work.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Treasurer-Tax Collector to sign the Participating Agreement between the County of Monterey, by and through the Monterey County Treasurer-Tax Collector and AllianceOne Receivables Management, Inc., which specifies collection services to be performed under the terms of the Judicial Council of California negotiated Master Agreement No. MA-2018-09, for a term of one year to commence with the signing of the Agreement through December 31, 2023, in the amount not to exceed $150,000 and
b. Authorize the Treasurer-Tax Collector to extend the Participating Agreement through December 31, 2028, where the Amendments do not exceed 10% annually of the Agreement amount or significantly change the scope of work.
SUMMARY:
Board approval is required for the Treasurer-Tax Collector Revenue Division (TTCRD) to contract with a third-party collection agency to continue meeting cost recovery requirements of Penal Code 1463.007. The TTCRD is recommending an agreement with AllianceOne Receivables Management, Inc., who is an approved collection vendor holding a master vendor agreement with the California Judicial Council of California (JCC).
DISCUSSION:
The Monterey County TTCRD operates as a Comprehensive Collection Program (CCP) collecting delinquent court-ordered debt and subsequently recovering the cost of collections per Penal Code 1463.007. To be eligible for cost recovery, participating agencies must meet several requirements including contracting with one or more private debt collectors to collect aged delinquent debt. The JCC has awarded a statewide master vendor agreement for these type of collection services and maintains a list of approved vendors for use by the courts and counties. Courts and counties have the ability to easily contract with approved vendors by signing participating agreements. TTCRD has utilized this type of agreement since May 17, 2011, however the contracted vendor ceased its court-ordered debt collection in California on December 16, 2022. This caused the department to issue a Request for Information to obtain a new vendor.
After reviewing and interviewing multiple vendors the TTCRD has selected AllianceOne to provide these services. AllianceOne is a well-known vendor skilled in collection among the agencies selected by the JCC to provide such services to courts and counties. AllianceOne provides innovative collection services, excels in handling customer inquiries, and displays a strong commitment to success. They entered into Master Agreement No. MA-2018-09, with the JCC on November 29, 2018. The master agreement has an initial term of five years, from January 1, 2019, through December 31, 2023, with one five-year option to extend. The TTCRD is requesting authority to agree to the same term as the master agreement.
OTHER AGENCY INVOLVEMENT:
The JCC and Monterey County Superior Court support the selection of AllianceOne. The participating agreement and master agreement have been reviewed and approved by County Counsel as to form and by Risk Management for insurance provisions.
FINANCING:
Approval of the participating agreement has no impact on the County’s General Fund. The TTCRD is a CCP that recoups related expenses through the collection of delinquent court-ordered debt. The participating agreement in the amount not to exceed $150,000 will fund services during the initial term of the agreement through December 31, 2023, with subsequent years not exceeding ten percent of this amount.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
This recommendation supports the Administration initiative by providing transparency and accountability in the collection of delinquent court-ordered debt.
__Economic Development
X Administration
__Health & Human Services
__Infrastructure
__Public Safety
Prepared by: Rigoberto Gonzalez, Management Analyst, x5379
Reviewed by: Jake Stroud, Assistant Treasurer-Tax Collector, x5828
Approved by: Mary Zeeb, Treasurer-Tax Collector, x5474
Attachments:
Board Report
Exhibit A Participating Agreement
Exhibit B Master Agreement No. MA-2018-09