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Council awards delinquent account collections contract after questions on scope and estimated fees
Summary
City council authorized an agreement with McCreary, Veselka, Bragg & Allen for delinquent account receivable collection services; staff said the $60–65k annual estimate is a projected share-based cost, not an upfront fee, and municipal court collections remain subject to statutory pass-through fees.
The Killeen City Council authorized an award of Request for Proposals No. 2504 for delinquent account receivable collection services to McCreary, Veselka, Bragg & Allen, P.C.
City procurement staff reported six proposals were received and that McCreary Veselka offered the best overall value. Staff estimated the city’s annual cost under the fee arrangement would be in the range of $60,000–$65,000, a projection based on expected recoveries rather than an up‑front retainer.
During the work session several council members asked for additional detail about the vendor’s approach, how long accounts remain with a contractor and why municipal court collections differ from other city receivables. City staff explained municipal court collections legally carry a higher, pass‑through percentage that is typically assessed to defendants and therefore does not represent a net city expense in the same way as utility or aviation receivables. The city’s estimated annual cost reflects the percentage‑based commission on recoveries across multiple city departments, staff said.
Questions from council led staff to offer to provide an itemized comparison of projected collections and historical performance figures before final contract execution. Council members discussed tabling the item to receive that additional information, but ultimately the consent agenda was approved and the award was authorized. The council’s authorization included the usual power for the city manager or designee to execute the agreement and allowable amendments under state law.
Staff listed the affected receivable types as utility collections, the aviation department, accounting services, EMS and municipal court (the latter with separate fee treatment). The staff presentation estimated annual collection firm costs of about $60,000–$65,000 based on expected recoveries; staff said the precise amount will vary with actual collections and the agreed percentage schedule.
