DATE: June 24, 2025
TO: Board of Supervisors
SUBMITTED BY: Oscar J. Garcia, CPA, Auditor-Controller/Treasurer-Tax Collector
SUBJECT: Agreement for Avenu implementation, subscription access, and ongoing support for RevQ as the Revenue Collections Unit (RCU) collection system software
RECOMMENDED ACTION(S):
TITLE
1. Under Administrative Policy No. 34 for competitive bids or requests for proposals (AP 34), determine that an exception to the competitive bidding requirement under AP 34 is satisfied and a Sole Source - Suspension of Competition is warranted, and that the best interests of the County would be served by entering into an agreement with Avenu Insights and Analytics, LLC (“Avenu”) as Avenu is the only vendor equipped to convert and migrate data from Revenue Plus Collection System (RPCS) a collection system that is sunsetting on June 30, 2025; and
2. Approve and authorize the Chairman to execute an evergreen sole source Agreement with Avenu, with an initial subscription term effective June 24, 2025, through June 23, 2027, at a total cost of $395,124 during the first term, which includes a one-time programming services fee of $175,500 and an annual subscription fee of $219,624 at $18,302 per month, and which will auto renew for successive one-year terms subject to a 5% annual escalation.
REPORT
Approval of the recommended action would allow Avenu to provide a structured implementation of the data migration from the current RPCS system to RevQ subscription access, and ongoing support for RevQ, a new collection system replacing Revenue Plus Collector System (RPCS), for the Fresno County Auditor-Controller/Treasurer-Tax Collector Department (ACTTC). Avenu has successfully completed data conversion and migration to new systems for several counties that were using RPCS. Its programming and technological capabilities will enable significant efficiency gains, allowing us to optimize our reduced resources and maintain effective collection processes despite these constraints. There is no increase in Net County Cost (NCC) associated with this action. This item is countywide.
ALTERNATIVE ACTION(S):
Failure to implement a collections system would result in the Revenue Collections Unit being unable to collect court-ordered debt and other outstanding County obligations.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
It is requested that the County waive the competitive bidding process under Administrative Policy No. 34 under the “unusual or extraordinary circumstances” exception. The ACTTC uses the RPCS system, originally developed with Columbia Ultimate Business System (CUBS) in 1999 and now owned by Avenu, to manage delinquent debt collections. With RPCS scheduled for sunset on June 30, 2025, the ACTTC and Department of Information Technology (ITSD) started evaluating alternatives, including discussions with other counties and an in-house solution. Staff found that Avenu had successfully migrated several counties from the RPCS system to the RevQ system. Staff found no comparable company capable of providing the same scope of services as Avenu within the required timeframe. Avenu is the only viable solution capable of full implementation before the current system is discontinued due to their unique understanding of RPCS. Approval of this agreement will also allow for continued support from Avenu for the current RPCS until the successful completion of the migration into the RevQ system. The General Services Department - Purchasing supports this request to waive the competitive bidding as required by AP 34.
FISCAL IMPACT:
There is no increase in NCC associated with the recommended actions. The total cost for the first term of the initial subscription term is $395,124. This includes a one-time programming services fee of $175,500 and an annual subscription fee of $219,624 at $18,302 per month. After the initial subscription term, the cost will go up by an increment of 5% escalator annually. Sufficient appropriations and revenues are included in the Department’s Org 0410 FY 2024-25 Adopted Budget and will be included in future budget requests.
DISCUSSION:
The Revenue Collection Unit (RCU) of the ACTTC performs billing and collection services by contacting debtors to arrange for payment and taking appropriate legal action to recover monies owed. The system used to manage these collection records is RPCS, a legacy system. The County entered an agreement with Columbia Ultimate Business Systems (“CUBS”) back in 1999 and helped CUBS build and test modules within RPCS. CUBS was later acquired by Ontario Systems, LLC, DBA Finvi (Finvi). Finvi was recently acquired by Avenu.
RPCS is scheduled to be sunset by Avenu, but Avenu has continued to provide critical supports for RPCS to allow the ACTTC and other California counties using RPCS time to seek a viable solution. During this time, the Information Technology Services Department (ITSD) and the ACTTC have worked to find a solution capable of full implementation before the current system is discontinued without critical supports. We discussed with other counties facing similar challenges, and found no other candidates who could provide the same scope of services or knowledge as Avenu within the required timeframe. Avenu building an in-house solution was also considered, but it was determined that it would not be feasible to fully implement a new system before RPCS is sunset.
Avenu has successfully completed data conversion and migration to new systems for several counties that were using RPCS. Avenu is the sole source vendor for this project due to their intimate knowledge of RPCS’s unique data structure for the integration into the RevQ system after other successful implementation for other counties. In addition, Avenu will continue to provide additional support needed for the current RPCS until the successful implementation into the RevQ system is completed.
The RevQ application, while not the same, is a more modernized version of RPCS system with a better user interface. Some of the key features that will be helpful in assisting in collection effort is the third-party skip tracing interface, automated generation of daily batch processes, improved workflow for victim restitution between modules and disbursement, self-service reporting tools for users, and real-time data analytics. RevQ has been adopted by numerous counties across California in response to the same sunsetting timeline, this shows a proven path for system migration and future operational stability.
The recommended agreement with Avenu is set to begin on June 24, 2025, and continue through June 24, 2027, and will auto renewal at a successive one-year term. The ACTTC will periodically assess the market for alternative solutions to ensure ongoing value. The agreement provides that the ACTTC may issue a notice of termination if funds are not allocated for the agreement.
The recommend agreement deviates from the Example Service Agreement insurance language, because it contains a limitation of liability of $250,000, but the department believes that the benefits outweigh the risks. Human Resources Department-Risk has reviewed the language of the liability insurance with note that the insurance language is sufficient. ITSD also approved the language for data security.
REFERENCE MATERIAL:
BAI# 29B, January 26, 1999
ATTACHMENTS INCLUDED AND/OR ON FILE:
Sole Source Acquisition Request Form
On file with Clerk - Agreement with Avenu Insights & Analytics, LLC
CAO ANALYST:
Paige Benavides