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HomeMy WebLinkAboutCorrespondence - Item 12 Becerra, Alexis From: Princess Bacon Bacon Bacon < Sent: Wednesday, July 30, 2025 1:22 AM To: eComment Subject: Collection Agency Agenda Item 12 Attention: This email originated from outside of City of Santa Ana.Use caution when opening attachments or links. Hello, I have the following question/comments regarding agenda item#12 for the Aug 5 City Council meeting. • For the previous fiscal year, how much of the collections/delinquent accounts were held by residents of Santa Ana in dollars?What percentage of delinquent accounts are individual residents/families/households versus commercial/businesses? For the individual/residential accounts,what is the average debt unpaid? • What percentage and dollar amount of collections of paramedic and ambulance ground emergency medical transportation service charges are held by individuals/residents versus businesses/commercial (such as care facilities)? • For the transactions subject to collection, what does the city provide as financial hardship remedies for residents/i ndividuaIs? • For the previous fiscal year, how much of the collections/delinquent accounts were held by Cannabis Accounts in dollars?What percentage of delinquent accounts are Cannabis Accounts?What is the average debt unpaid by Cannabis Accounts? • What are other consequences applied to commercial/business accounts delinquent? • What remedies are available to residents/individuals where their account is turned over to the collection agency to pay the amount owed without paying the collection agency fee?Can they pay the original city agency for the original amount and have their account removed from collections? • Based on the contract attached to the agenda,will the collection agency only add either 14.5%or 25%of the unpaid amount as their collection fee or more? If more,what is that dollar amount? • With the economy and job market we are in, the collection of unpaid and delinquent accounts held by residents and persons of Santa Ana must be handled in the highest empathetic and compassionate manner available. In my experience working with collection agencies,the vendor for my previous employer added 40%of the unpaid amount on top as their fee. Such activity is egregious and unacceptable. Copies of the text from the Agenda, RFP, and vendor contract referenced. Agreement with BC Services, Inc. for Collection Agency Services (Specification No. 25-040) (General Fund) Department(s): Finance and Management Services Recommended Action:Authorize the City Manager to execute an agreement with BC Services, Inc. to provide collection agency services for a term beginning August 5, 2025 and expiring August 4, 2028, with provisions for two (2) 1-year extensions (Agreement No. A-2025-XXX). The RFP for vendors specify that the services the collection agency would provide are: Revenue collection services for unpaid and delinquent accounts receivables will include: • Collection of miscellaneous delinquent accounts receivable items where customers have not paid for services or charges from the City(e.g.Third-Party Liability Billing, Business License Delinquent Accounts, Municipal Utility Services Delinquent Accounts, Dog License Delinquent Accounts, etc.). • Collection on delinquent Administrative Citations where members of the public have not paid for citation(s) issued 1 due to a code violation within the City limits. • Administrative Citations and/or Unpaid City Taxes and Fees associated with Cannabis Accounts • Collection of delinquent paramedic and ambulance ground emergency medical transportation service charges. • Collection of other debts, charges, or monies owed to the City by members of the public and current or previous employees or officials of the City COMPENSATION a. Consultant shall provide services on a contingency basis and retain commission on all monies actually collected on assigned accounts,whether paid to City or Consultant, at the following rates: i. 14.5%for all first and second placement accounts receivable initially placed for collection with Consultant beginning September 1, 2025; ii. 25%for all second placement accounts receivable initially placed for collection with Consultant beginning January 1, 2026; and iii. 25%for accounts requiring City-authorized legal action whereas approval must be obtained from City prior to initiating any legal action on an account. I will try to join the zoom call for the meeting. Thank you! Monica Shin 2