DISCLAIMER

 

05-0762R


RESOLUTION AUTHORIZING A PROFESSIONAL SERVICE AGREEMENT WITH RANGE CREDIT BUREAU, INC. FOR COLLECTION OF PAST DUE, OUTSTANDING BALANCES RELATED TO A REVOLVING LOAN FUND.

BY COUNCILOR STAUBER:

     RESOLVED, that the proper city officers are hereby authorized to enter into a professional service agreement, substantially in the form of that on file in the office of the city clerk as Public Document No. __________ with Range Credit Bureau, Inc., (service provider) pursuant to which it will provide for the collection of past due, outstanding balances of certain nonperforming accounts in the portfolio of a revolving loan fund, said service provider to retain a 33 percent fee on amounts collected except for those accounts where:

     (a)  Legal action is to be taken;

     (b)  Accounts are sent from other agencies after an attempt to collect has been made; or

     (c)  Outstanding balances are under $50, in which event the service provider will retain a 50 percent fee; the balance of said amounts collected to be remitted to the city, payable into Fund ____.


STATEMENT OF PURPOSE:  The purpose of this resolution is to authorize a professional service agreement for collection of past due, outstanding balances of certain nonperforming accounts in the portfolio of a resolving loan fund formerly operated by Northstar Community Fund and currently operated by the city’s community development division. An RFQ/RFP was sent out on September 21, 2005. All submissions had to be received by October 17, 2005. Range Credit Bureau, Inc., was selected from a field of three submitting responses to the RFQ/RFP. The service provider will retain a 33 percent fee on most of the outstanding balances collected; however, in the event that legal action must be taken, accounts are sent to the service provider from other agencies after they have attempted to collect, or accounts are under $50, the service provider will retain a 50 percent fee. The balance of the amounts collected will be remitted to the city.


The three bidders were:

Range Credit Bureau, Inc.

selected and recommended

Northern Collections, Inc.

no previous experience with similar loan fund

North Star Community Development

did not submit the regional information