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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 (TCS) <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 />  <br />  <br />City Council 12 – 1 8/5/2025