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Finance and Management Services <br /> www.santa-ana.org/finance <br /> Item # 12 <br /> City of Santa Ana <br /> 20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br /> August 5, 2025 <br /> TOPIC: Collection Agency Services <br /> AGENDA TITLE <br /> Agreement with BC Services, Inc. for Collection Agency Services (Specification No. 25- <br /> 040) (General Fund) <br /> RECOMMENDED ACTION <br /> Authorize the City Manager to execute an agreement with BC Services, Inc. to provide <br /> collection agency services for a term beginning August 5, 2025 and expiring August 4, <br /> 2028, with provisions for two (2) 1-year extensions (Agreement No. A-2025-XXX). <br /> GOVERNMENT CODE &84308 APPLIES: Yes <br /> DISCUSSION <br /> As part of its regular operations, the City routinely processes payments to vendors and <br /> collects monies owed to Santa Ana. The Treasury and Customer Services Division JCS) <br /> has historically led the City's collection efforts, managing delinquent account referrals <br /> from all agencies. In addition, the City contracts with outside billing and collection services <br /> for paramedic services and parking ticket citations. When both internal efforts and <br /> contracted services are unable to recover outstanding debts, the accounts may be <br /> referred to an outside collection agency for further action. <br /> To support these efforts, TCS is committed to using all available resources to increase <br /> the collection of monies legally owed to the City. The City makes several attempts to <br /> collect in-house before delinquent accounts are referred to collection agencies. As part <br /> of this process, the City issues a minimum of three collection letters to individuals and <br /> businesses with outstanding balances. These letters notify them of the amount owed and <br /> may offer payment alternatives, such as installment plans. The City strives to ensure that <br /> a resident or business is provided an opportunity to resolve their debt before it is escalated <br /> to a collection agency. If a customer fails to respond or does not adhere to a mutually <br /> agreed upon payment schedule, the account is referred to a third-party collection agency <br /> for further action. <br /> The referral of delinquent accounts to third-party collection agencies is an efficient method <br /> in managing debts owed to the City. These agencies have the resources required to <br />