Report to Mayor and City Council
Tuesday, January 09, 2018
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF BOTH AMENDMENT NO. 2 TO A CONTRACT WITH NATIONWIDE COST RECOVERY SERVICES ESTABLISHING THE EFFECTIVE DATE AS JULY 1, 2015 AND MODIFYING THE CONTRACT AMOUNT TO COVER UNPAID EXPENSES FOR SERVICES PROVIDED FOR THE MONTH OF JULY 2015; AND, RESOLUTION NO. 18-002 AMENDING THE 2017-2018 BUDGET (CITY COUNCIL) TO PROVIDE FOR INCREASE IN CONTRACT AMOUNT BY $11,620 (CITY COUNCIL)
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I. SUMMARY
In 2014, the City entered into a one-year agreement with Nationwide Cost Recovery Services (“NCRS”) to administer and implement the city’s foreclosure registration program (Exhibit 4.). The contract was renewed in 2015, but not executed by the parties until August 24, 2015. NCRS performed its services during the lapse period between contracts which was July, 2015. However, NCRS was never paid for those services performed during July, 2015.
As part of a recent meeting with NCRS necessitated by staff changes at the City, NCRS brought staff’s attention to the unpaid invoice; they then followed up on November 20, 2017 with the detailed charges and expenses covering the month of July 2015. Staff has confirmed these costs and the fact that the gross registration payments were received by the City from lenders during that period but that NCRS was not paid.
The Agreement was amended in 2016, amending the termination date to 2019. This action is to approve an amendment to make July 1, 2015 the effective date of the Agreement to capture the lapse period of the month of July, 2016; and, to approve a budget amendment to increase the contract amount by $11,620 to cover the July, 2015 charges and expenditures, making the total contract amount not to exceed $266,620.
II. RECOMMENDATION
Recommendation
1. APPROVE Amendment No. 2, to make the NCRS contract term date effective July 1, 2015, and increase total compensation by $11,620 for reimbursement of services provided, to a not to exceed amount of $266,620; and
2. AUTHORIZE the Mayor to execute Amendment No. 2 upon approval as to form by the City Attorney; and
3. ADOPT Resolution No. 18-002, a budget amendment to increase the FY 2017-18 NCRS contract amount by $11,620.
1.
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III. ALTERNATIVES
1. TAKE another action the City Council deems appropriate
IV. BACKGROUND
The one-year contract agreement between the City of Carson and Nationwide Cost Recovery Services (NCRS) began in 2014 for one year. On May 19, 2015, the City Council approved NCRS’ services for another one-year period with a contract expected to commence July 1, 2015 (which was extended in 2016 until 2019). A lapse occurred between the expiration date of the prior year and the execution date of August 24, 2015.
During the lapse period NCRS believed they were under contract and continued to provide services to the City. However, the billing invoice for the July 2015 period was not paid. NCRS recently re-submitted the invoice on November 20, 2017 with detailed charges and expenditures totaling $11,620. Staff is requesting that the City Council approve the Amendment No. 2 to reset the effective date, and approve a budget resolution of $11,620 to cover the amount due, therefore increasing the contract amount to a not-to-exceed amount of $266,620 (see Exhibit No. 1).
V. FISCAL IMPACT
The consultant receives 40% of the fees from owners of foreclosed properties, while the City receives the remaining 60%. The invoice charges and expenditures reflect the foreclosure registration and the penalty fees. The City had received the registration revenue in July 2015 but had not paid the consultant’s 40% share of $11,620.
VI. EXHIBITS
1. NCRS Contract Amendment No. 2 (pgs. 3-7)
2. NCRS Invoice #CARS M27-A (pgs. 8-17)
3. Resolution No. 18-002 (pgs. 18-19)
4. Original NCRS Contract (pgs. 20-48)
Prepared by: Sheilah Thompson, Sr. Administrative Specialist