ITEM TITLE:
Title
Consider approving a professional services agreement for collection services between the City of Lawton and Perdue, Brandon, Fielder, Colling & Mott, L.L.P.; and authorize the Mayor and City Clerk to execute the agreement.
body
INITIATOR: Kristin Huntley, Interim Finance Director; Jillian Allison, Municipal Court Director
STAFF INFORMATION SOURCE: Kristin Huntley, Interim Finance Director; Jillian Allison, Municipal Court Director; Kelea Fisher, Deputy City Attorney
BACKGROUND: Title 11 Oklahoma Statutes Section 22-138 authorizes the governing body of a municipality to enter into a contract with a collection agency for the provision of collection services for debts and accounts receivable including, but not limited to, unpaid fees, penalties, interest, and other sums due the municipality. Said statute further authorizes the municipality to enter into a contract for the provision of collection services for court penalties, costs, fines and fees in cases in municipal court in which the accused has failed to appear or otherwise failed to satisfy a monetary obligation ordered by the court. The statute further provides that the collection fee charged by the collection agency may be in an amount not to exceed thirty-five percent (35%).
The utility services division currently estimates that the City has over two-hundred thousand dollars ($200,000.00) in outstanding, unpaid utility bills. In late 2019, the municipal court had an estimated eleven million dollars ($11,000,000.00) in outstanding, unpaid court penalties, costs, fines and fees. Staff desires to enter into a professional services agreement with Perdue, Brandon, Fielder, Colling & Mott, L.L.P. to provide collection services as authorized by statute. The proposed collection fees (to be collected by Perdue in addition to the outstanding debt owed to the City) will be thirty-five percent (35%) for unpaid utility bills and thirty-percent (30%) for unpaid court related debts. Perdue provides collection services for more than 2,100 local government clients in seven (7) states. Perdue represents over 30 municipalities in the State of Oklahoma (see attachment).
EXHIBIT: Perdue Professional Services Agreement; Perdue Informational Packet
KEY ISSUES: n/a
FUNDING SOURCE: Click or tap here to enter text.
STAFF RECOMMENDED COUNCIL ACTION: Approve a professional services agreement for collection services between the City of Lawton and Perdue, Brandon, Fielder, Colling & Mott, L.L.P.; and authorize the Mayor and City Clerk to execute the agreement.