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Agreements for Collection Agency Services July 16, 2019 Page 2 Accounts Receivable Process The current City process provides for the issuance of a minimum of three City issued collection letters. The letters are sent to individuals and companies who fail to pay monies owed to the City. Collection letters inform individuals and companies of the outstanding debt and may provide alternatives for payment. The City strives to ensure that a resident or business is provided an opportunity to make a payment prior to sending their account to collections for further efforts. Often times this may include a payment plan. If a customer fails to respond or does not adhere to a mutually agreed upon payment schedule, the matter is assigned to a third party collection agency. The Federal Fair Credit Reporting Act (FCRA) sets guidelines for one of the primary methods the City's outside collection agency employ, which includes reporting outstanding debt to credit reporting agencies. Effective September 2016, there are two types of debt categories under the Federal Fair Credit Reporting Act (FCRA): 1) "Permissible Debt" such as, unpaid utility billings, unpaid paramedic billings, and any unpaid sums relating to City services which were electively sought or contracted for from the City; and 2) "Prohibited Debt" such as, taxes, licensing and permit fees, parking citations, towing & impound fees/costs, administrative code violations, and damage to City property. Permissible debts may continue to be reported to credit reporting agencies; prohibited debt may not. RFP Process On March 29, 2019, a notice inviting bids was advertised on the City's online bid management and publication system as Request for Proposals #19-024: Collection Agency Services. A summary of the solicitations and the proposals received is as follows: 250 Vendors were electronically notified 38 Vendors downloaded the Request for Proposals packet 12 Proposal Responses received 0 Proposal Responses received from City of Santa Ana Vendors A committee comprised of four City staff members reviewed and evaluated the proposals received based on the following criteria: • Thoroughness and understanding of the tasks to be performed • Background and experience in organizational analysis evaluation • Firm's expertise and overall experience of personnel assigned to the work • Time required accomplishing the requested services • Responsiveness to requirements of the project • Public sector experience in a municipal setting, conducting similar services • Cost to the City 25H-2