Discussion and possible action on any and all matters regarding the proposed agreement between Brown's Collection Service and the City of San Luis for the implementation of a collection agency to achieve maximum recovery of debt.  (Roula Encinas, Finance Director, and Edgar Esparza, Billing and Collections Manager)

On March 8, 2020, the City of San Luis entered into an agreement with Valley Collection Services, LLC, to recover any debt on its utility and ambulance accounts. Valley Collection Agency established a commission fee of 20% on all collections made. The city elected to add this fee to the customer's utilities account balance to recover 100% of the outstanding amount. On our ambulance accounts, the collection commission fee was taken from the account's balance. 

However, due to the low collection rate of Valley Collection Services, LLC, Billing and Collections, and Ambulance Billing are looking into transferring our accounts to Browns Collection Service. This agency is local to the Yuma County area which will help with the collection rate. The commission fees of Browns Collection Agency are as follows:
- 25% commission fee on the amounts collected
- 30% commission fee on all accounts with a balance under $25.00
- 40% commission fee on accounts referred out of the State of Arizona

For Billing and Collections, the commission fee will be added to the account's balance. For Ambulance Billing, the commission fee will be taken from the account balance.

We contacted other customers of Brown's Collection Service and received good feedback about Brown's Collections. To name a few of the customers, City of Somerton Ambulance, Yuma County Public Health Services, Yuma County House Department, Yuma Juvenile Court Center, Yuma School District One, and Onvida Health, to name a few. Attached is a list of the customers being served by Brown's Collection Service. 

While Brown's Collection Services emphasizes maximizing collections for its clients, it is also very important for them to do this with an ethical and professional approach. 

Ordinance No. 314 (Codified in the San Luis City Code at § 13.15.230 (D))
Other than approving the contract with a collection agency, there will not be a need to adopt a new ordinance, as the city already has an ordinance in place. Ordinance No. 314 in its Section 2 (D), states that “The city may elect to assign any and all utility accounts considered delinquent with unpaid charges, fees, or assessments to a collection agency or attorney to collect, in addition to the disconnection of any and all services.”