RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt a resolution to authorize the City Manager to execute a professional services agreement with L J Ross Associates, Inc. for collection agency services. Staff also requests authority for the City Manager or his designee to execute two (2) additional one (1) year renewals without further City Council approval, provided that the applicable budget is approved by the City Council each year, or until City staff determines that continuing with the same vendor is not in the City’s best interest at which time an RFP will be issued to select another vendor.
Staff additionally requests that the City Council adopt an ordinance to approve a budget adjustment increasing expenditure authority, with offsetting revenue, by $50,000.
| BACKGROUND
As a part of Customer Care, Utility Billing works to ensure that our customers experience accurate and timely billing and timely collection of payments. There is need for third party services to assist in the collection of unpaid utility bills as a part of our standard business process. The Customer Care team works diligently to collect on both active and inactive accounts and is seeking additional assistance with accounts that are inactive and past-due.
Staff issued a Request for Proposals (RFP) on May 15, 2023, RFP 07-091 Utility Billing Collection Agency Services. In June 2023, thirteen proposers responded to the RFP. A committee of eight participated in the selection process. Based on a review of the proposals, experience, customer service, tools and price, LJ Ross, Inc. was selected as the vendor of choice. LJ Ross, Inc. has a deep understanding of collection strategies while maintaining a high level of customer service.
Staff recommend a budget adjustment to increase expenses totaling $50,000, from the Electric Fund ($25,000), Water Operations Fund ($8,334), Wastewater Operations Fund ($8,333) and Waste Services Operations Fund ($8,333) and offsetting revenues totaling $50,000, from the Electric Fund ($25,000), Water Operations Fund ($8,334), Wastewater Operations Fund ($8,333) and Waste Services Operations Fund ($8,333). This is a net neutral budget adjustment.
The City expects no impact to our utility customers, and will continue to provide an excellent customer experience with timely and accurate billing and collection of payments.
| FISCAL IMPACT
The recommended budget adjustment increases appropriations by $50,000, in the Electric Fund ($25,000), Water Operations Fund ($8,334), Wastewater Operations Fund ($8,333) and Waste Services Operations Fund ($8,333) with offsetting revenues totaling $50,000, from the Electric Fund ($25,000), Water Operations Fund ($8,334), Wastewater Operations Fund ($8,333) and Waste Services Operations Fund ($8,333). This is a net neutral budget adjustment. Subsequent years will be included in the annual adopted Customer Care budget in the utility funds. There is no impact to the General Fund.
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ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. Approval of a professional services agreement and budget adjustment meets the above criteria and are not subject to CEQA. No additional environmental review is required.
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CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal E - Deliver exceptional city services
Goal F - Invest in well-planned infrastructure and growth
| Respectfully Submitted,
Andrea Blomquist, Utility Billing Operations Manager
Daniel Beans, Electric Utility Director | | | 
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Dominick Casey, City Manager
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