To: Board of Supervisors
From: Treasurer/Tax Collector
Agenda Section: Consent
Vote Requirement: 4/5th
SUBJECT:
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Professional Services Agreement with Linebarger Goggan Blair & Sampson, LLP (LGBS) for Third Party Debt Collection Services (4/5 Vote Required)
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve, and authorize the Chair of the Board to execute, the attached agreement with LGBS for third party debt collection services (4/5 Vote Required); and
2. Direct the Clerk of the Board to submit an executed original of the attached agreement to the Humboldt County Treasurer-Tax Collector’s Office - Revenue Recovery Division.
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STRATEGIC PLAN:
This action supports the following areas of your Board’s Strategic Plan.
Area of Focus: Core Services/Other
Strategic Plan Category: 9999 - Core Services/Other
DISCUSSION:
The Humboldt County Treasurer-Tax Collector’s Office - Revenue Recovery Division provides collection services for court ordered debt for the Superior Court. The Revenue Recovery Division continues to collect debt until collection efforts have been exhausted. Exhaustion is determined when the debtor no longer responds to letters and phone calls and/or when Revenue Recovery is unable to obtain a current address and/or phone number for the debtor.
Court-ordered debt accounts with no remaining collection options are referred to the Franchise Tax Board’s Court-Ordered Debt Collection Program (FTB-COD). Court ordered debt accounts that do not meet the minimum qualification for submission to the FTB-COD, or that have extended recovery efforts exhausted with FTB-COD, are referred to a third-party collection agency for extended recovery services. Such extended recovery efforts result in additional revenue each month for distribution to specific funds for various departments, programs and providers of service in the community, as well as requited amounts to the state.
There is also non-court ordered debt for other county departments and divisions such as Animal Control, Environmental Health, Planning & Building and the Library which utilize these third-party collection services. Each month, non-court ordered debt accounts for which collection efforts have been exhausted are referred to a third-party collection agency for extended recovery services.
Staff recommends that your Board approve and authorize the Chair of the Board to execute the attached agreement with LGBS for third-party debt collection services for the county. LGBS is a vendor on the California Administrative Office of the Courts’ Statewide Master Vendor list for Collection Services and is the collection agency used by several other California counties.
Pursuant to Government Code Section 26220(a), approval of the attached agreement requires a four-fifths (4/5) vote of the Board.
SOURCE OF FUNDING:
General Fund
FINANCIAL IMPACT:
The County will pay a commission of 12.5 to 25 percent to LGBS for non-court ordered debt. Such commissions will be added to, and retained from, the principal amount collected by LGBS and remitted to the county.
The Humboldt County Treasurer-Tax Collector’s Office - Revenue Recovery Division will be reimbursed by the California Supreme court for commissions on court ordered debt collections.
STAFFING IMPACT:
Approval of this agreement will not have an impact on county staff. LGBS will perform debt collection services.
OTHER AGENCY INVOLVEMENT:
NA
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Your Board may choose not to approve the attached agreement with LGBS for third party collection services. This alternative is not recommended as it would result in reduced revenue to the county.
ATTACHMENTS:
1. Professional Services Agreement with Linebarger Goggan Blair & Sampson, LLP
PREVIOUS ACTION/REFERRAL:
Meeting of: June 21,2021
File No.: 21-894