Resolution retroactively authorizing and approving the Office of the Treasurer & Tax Collector to execute Amendment No. 4 for a service and support agreement with Collection Solutions Software, Inc. to enable the City and County of San Francisco to collect delinquent taxes and other debts, to extend the contract term for five years, from November 30, 2025, for a total term of December 1, 2016, through November 30, 2030, with one option to renew for an additional five years, increasing the contract amount by $2,453,072.85 for a total amount not to exceed $6,919,547.85 to commence upon Board of Supervisors and Mayoral approval.

This resolution retroactively authorizes and approves Amendment No. 4 to a service and support agreement between the Office of the Treasurer & Tax Collector (TTX) and Collection Solutions Software, Inc. (CSS). The amendment extends the contract term for five years, from November 30, 2025, to November 30, 2030, with an additional five-year renewal option, making the total possible term from December 1, 2016, through November 30, 2035.

The contract amount is increased by $2,453,072.85, bringing the new total not to exceed $6,919,547.85. This agreement is crucial for the City and County of San Francisco (CCSF) to collect delinquent taxes and other debts, managing over 669,000 accounts totaling approximately $961 million.

CSS provides a proprietary software platform (IMPACT HD 2.0) that enables TTX to consistently exceed its annual collection goal of $110 million, collecting $129 million in FY 2023-24 and projected to surpass $140 million in FY 2024-25. Services include automated dialing, compliance tools, cloud hosting (AWS FedRAMP), an online payment portal for SFMTA citations, and SMS text messaging. A 3% annual price increase for software and cloud services will apply starting December 1, 2026.

The retroactive approval is requested because the contract extension's start date (December 1, 2025) precedes the anticipated Board approval, following a review of procurement practices. A sole-source waiver was granted due to the proprietary nature of the software and the estimated $2 million to $3 million cost and disruption of switching vendors.

This contract ensures the City can efficiently collect delinquent taxes and other debts, which directly supports funding for essential municipal services. Residents benefit from online payment options for obligations like SFMTA citations and automated communications regarding outstanding debts.

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