Item - 2019.GL2.11

The General Government and Licensing Committee recommends that:

1.  City Council grant authority to the Director, Court Services, to negotiate and enter into the agreements, as outlined in Attachment 1 to the report (February 19, 2019) from the Chief Purchasing Officer and the Director, Court Services, authorizing the successful Proponents to be compensated at the commission rates set out in their respective proposals, on terms and conditions satisfactory to the Director, Court Services, and in a form satisfactory to the City Solicitor.
 

2.  City Council permit collection agencies to contact debtors during the hours set out in Subsection 22(6) of R.R.O. 1990, Regulation 74: General under the Collection and Debt Settlement Services Act in order to provide the successful Proponents with an enhanced tool to collect defaulted Provincial Offences Act fines that are owed to the City of Toronto.

 
3.  City Council grant authority to the Director, Court Services, to apply an average commission rate, plus non-recoverable tax, in each category to be charged to the debtor for defaulted Provincial Offences Act fines that are owed to the City to be set at 14.5 percent for First Assignment Accounts, 22.37 percent for Second Assignment Accounts, and 31.55 percent for Third Assignment Accounts.

 
4.  City Council deem the approval of the collection agency rates set out in Recommendations 1 and 3 to the report (February 19, 2019) from the Chief Purchasing Officer and the Director, Court Services, to be the City's approval for the purposes of Subsection 165(9) of the Provincial Offences Act and Section 240 of the City of Toronto Act, 2006.

This report advises on the results of Request for Proposal (RFP) Number 9138-18-7006 for the provision of collection agency services to support the collection of defaulted fines under the Provincial Offences Act (POA) and seeks approval of the collection rates under the City of Toronto Act, 2006. Existing contracts expire on March 31st, 2019 and new contracts are required in order to continue service. Staff are requesting authority to negotiate and enter into agreements with eleven recommended Proponents in accordance with the terms in the RFP, as listed in Attachment 1.

This report also proposes that City Council approve an average commission rate, plus non-recoverable tax, for First Assignment, Second Assignment, and Third Assignment Accounts. This will ensure that an equal commission rate is applied to City debtors with defaulted POA fines based on assignment category.

Finally, this report seeks authority to permit collection agencies that pursue defaulted POA fines to have expanded hours for debtor contact, in accordance with the Provincial Regulation. These hours differ from the City approved policy for Use of Collection Agencies to Collect Parking Fines. It will allow collection agencies to contact debtors by phone between the hours of 7:00 a.m. and 9:00 p.m. Monday through Saturday, and between 1:00 p.m. and 5:00 p.m. on Sunday. This will provide the successful Proponents with an enhanced tool for collecting defaulted POA fines that are owed to the City.