Title
Child Support Services, Revenue Recovery Division, recommending the Board authorize the Chair to sign Memorandum of Understanding 066-M1411 with the Superior Court of California, County of El Dorado for collection services.
Body
FUNDING: Charges for collection services for Superior Court debts
Fiscal Impact/Change to Net County Cost
No Change to Net County Cost. Revenues from the MOU with the Court are estimated to be $735,000.00.
Background
The latest Memorandum of Understanding (MOU) with the Superior Court of California, County of El Dorado, was approved by the Board on September 15, 2009. As with all perpetual agreements, that MOU has been presented to Board for approval each year since that date. The MOU provides for ongoing comprehensive collection activities pursuant to Penal Code Section 1463.007. The MOU also outlines the responsibilities of the County and the Courts regarding revenue recovery activities.
The Courts currently compensate the County for services provided in an amount equal to the actual direct costs incurred, plus a 10% indirect cost allowance for salary and wage costs for the Comprehensive Collection Program. In addition, Revenue Recovery presently retains 13% of the civil fees collected on behalf of the Superior Court.
Reason for Recommendation
This year, due to the increased cost of collecting debt, there is a need to increase the compensation paid by the Courts to the County for the collection of Civil Fees. The cost for this service has been 13% since the agreement was first approved in 2009. This new MOU increases that collection fee to14% effective August 1, 2013. The actual increased cost to the court will be minimal. Additionally, at 14%, the fee for the collection of civil fees will be in line with the fee currently charged to county departments for debt collection pursuant to the B4 Policy.
Action(s) to be taken following Board approval
1. Board Chair to sign
2. Child Support Services to distribute executed cop...
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