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  Consent-General Government   # 20.       
Board of Supervisors Financial Services  
Meeting Date: 09/13/2016  
Brief Title:    Approve MOU with Franchise Tax Board for Collection Services
From: Howard H. Newens, Chief Financial Officer, Department of Financial Services
Staff Contact: Douglas Olander, Assistant Chief Financial Officer, Department of Financial Services, x8158

Subject
Approve Memorandum of Understanding with the Franchise Tax Board Court-Ordered Debt Collections Program for collection services for the period January 1, 2017 to December 31, 2019. (No general fund impact) (Newens)
Recommended Action
Approve Memorandum of Understanding with the Franchise Tax Board Court-Ordered Debt Collections Program for collection services for the period January 1, 2017 to December 31, 2019.
Strategic Plan Goal(s)
Operational excellence
Reason for Recommended Action/Background
Yolo County Collection Service (YCCS) unit in the Department of Financial Services, has successfully used the Franchise Tax Board's Court-Ordered Debt Collections Program (FTB-COD) to collect court ordered delinquent County fees since December 1, 2004. These fees are primarily for Probation and Public Defender fees and Sheriff's booking fees.

The partnership with FTB-COD has resulted in the collection of $2,050,900 in delinquent fees from December 1, 2004 to June 30, 2016. FTB-COD charges a fee based on their actual costs to administer the program pursuant to R&T Code Sections 19280 - 19283 calculated as a percentage of actual collections. The percentage is estimated at 15% and is subsequently adjusted to the actual percentage. Recently the actual percentage has ranged from 12% to 15%. Private collection agencies charge approximately 30%-50% of the amount collected to perform similar services.
Collaborations (including Board advisory groups and external partner agencies)
County Counsel

Fiscal Impact
Fiscal impact (see budgetary detail below)
Fiscal Impact (Expenditure)
Total cost of recommended action:    $  
Amount budgeted for expenditure:    $   23,400
Additional expenditure authority needed:    $   0
On-going commitment (annual cost):    $   23,400
Source of Funds for this Expenditure
$22,664
Explanation (Expenditure and/or Revenue)
Further explanation as needed:
Collection efforts by the Franchise Tax Board's Court Ordered Debt Program are expected to generate approximately $156,000 in revenue for the County.  The cost of the program is included in the Department of Financial Service's FY 2016-2017 adopted budget.
Attachments
Att. A. Agreement

Form Review
Inbox Reviewed By Date
Financial Services Tom Haynes 08/15/2016 03:16 PM
County Counsel Hope Welton 08/16/2016 12:01 PM
Form Started By: dolander Started On: 08/15/2016 02:06 PM
Final Approval Date: 08/16/2016

    

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