STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: January 12, 2022
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Elizabeth Reich
______________________________________________________________________
SUBJECT
Title
Authorize Supplemental Agreement No. 1 to exercise the first of two, two-year renewal options, to the service contract with Southwest Credit Systems, L.P., for the collection of delinquent utility and other miscellaneous accounts - Estimated Net Revenue: $586,000
Body
BACKGROUND
This Supplemental Agreement will provide for continued collection of delinquent utilities and other miscellaneous accounts. Dallas Water Utilities (DWU) bills for water, sewer, sanitation, and stormwater services to over 320,000 customers. To provide due process, DWU sends delinquent, termination, and/or final bill notices to its customers who are past due in paying for services already rendered.
In FY 20-21 DWU billed approximately $1 billion and the internal average collection rate is historically 96 percent. After internal staff collection efforts are exhausted, accounts that remain delinquent and/or uncollected are turned over to the City Attorney's Office or the awarded contractor as the third-party collection company to pursue additional collection strategies, such as progressive customer contacts and credit bureau reporting.
With the onset of the pandemic in March 2020, DWU ceased all dunning and collection activities to assist Dallas residents as they maneuvered the many economic hardships of COVID-19. In October 2021, DWU resumed dunning and collection activities. During this time no new collection files were sent to the third-party collection agency.
Delinquent accounts greater than $5,000 will be referred to the City Attorney's Office. At its discretion, the City Attorney's Office may refer those delinquent accounts to the awarded contractor as the third-party collection company. All accounts equa...
Click here for full text