HomeMy WebLinkAboutIR 8884INFORMAL REPORT TO CITY COUNCIL MEMBERS
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To the Mayor and Members of the City Council
No.
October 16, 2007
Page 1 of 3
SUBJECT: LIBRARY MATERIALS AND FINES RECOVERY SYSTEM
The purpose of this Informal Report is to inform Council of the Library's plan to initiate a 90-day trial period
with Unique Management for recovery of material and fines of $25 or more when 60 days delinquent. Trial
period will begin December 2007.
Background
On average $60,000 in fines and unreturned library materials slips into a 90 days past due status each
month. This year alone, the projected loss is $480,000 in unpaid fines and $240,000 in delinquent library
materials, a total of $720,000.
Current Library Policy and Practice
The Library establishes check -out limits, loan periods, and return policies in order to ensure equitable
access to all library materials and provide faster availability to high- demand materials.
Fines and fees are levied when materials are not returned at all or not returned in a timely manner based
on policy and posted fees/fines. Customers whose accounts have a balance of $5.00 or more have their
library privileges suspended until they return the overdue materials and reduce fees to less than $5.00.
Currently customers who do not return materials on time are notified by phone, e-mail or by letter. The
first notification is sent at 8 days overdue and a second notice is sent at 40 days overdue. Fees may be
cleared with one time payments, payment plans, or by working off fines with volunteer hours.
Addressing the Problem
The plan is to implement a 90-day trial period with Unique Management, a library material recovery
service that specializes in collecting overdue library materials and fines of $25 or greater. During the trial
period the library will verify that the vendor can maintain customer goodwill, return a high percentage of
materials, minimize staff time required, and reach budget neutrality.
Bi- lingual public communication plans include a newspaper article, press release, City Page,
neighborhood and e-mail notification, postings at library locations, bookmarks, and web site notifications.
The Process
Library Collection Procedure:
■ Continue current overdue phone /e- maiVIetter process up to 48 days overdue.
Send a final notice at 49 days overdue on accounts of at least $25 indicating that the account will
be referred to Unique Management, a collection agency, if not cleared within 10 days.
• Send unpaid accounts (with an additional $10 collection fee) to Unique Management at 60 days
overdue.
ISSUED BY THE CITY MANAGER FORT WORTH. TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 8884
Unique Management Collection Procedure:
■ Send a letter to identify Unique Management as a collection agency used by Fort Worth Public
Library, reminding the customer of his/her obligation, and providing straightforward instructions
about how to clear the account and pay the balance due.
• Send a second letter if no response in 10 days.
• Begin phone calls 14 days after second letter — Monday — Friday 6:00 to 9:00 p.m. and Saturday
9:00 to 3:00. Make two attempts within a two -week period.
• Report unpaid accounts to credit bureaus when accounts are at least 164 days overdue.
• Accounts for cardholders 17 years of age and under are handled by the parent and/or guardian.
Library Costs and Recovery Outcomes
Unique Management charges the Library $8.95 per account submitted whether or not the customer pays
the fine or returns the later materials. To offset this charge, the Library adds a $10 fee to each account
submitted. The annual General Fund impact is estimated at $51,552. Unique Management guarantees
income from fines and collection charges of at least $51, 552 (budget neutrality).
The estimated annual value of recovered materials is $103,104. These recovered materials will still be
current/relevant to the collection.
The proprietary software utilized by Unique Management will interface with our existing Integrated Library
System's Debt Collection module. The system safeguards citizen's privacy and is good stewardship of
public property.
Unique provides monthly management reports with analysis relative to progress. The Library will track the
$10 recovery fees against the $8.95 collection charges to assure budget neutrality and determine if the
service is worth continuing.
Benchmarkina Libraries
The following Texas cities currently contract with Unique Management for material recovery service:
Arlington, Austin, Dallas, Denton, Houston, Irving and Plano.
Summary
• Desired outcome is the return of library materials.
• Library will continue efforts to collect fines/materials up to 48 days delinquent.
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• Accounts turned over to vendor will be 60 days delinquent.
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
The Library Advisory Board reviewed and approved the 90-day trial period with Unique Management for
material/fine recovery service.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS