City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Matthew Boring, Finance Director |
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Prepared by: |
Melissa Munoz, Interim Assistant Finance Director |
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Date: |
April 21, 2026 |
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Subject: |
Approve a Contract with Cedars Business Services, LLC for Collection Services |
Recommendation:
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Approve a contract with Cedars Business Services, LLC to provide professional collection services for three years, with two one-year extensions, and authorize the City Manager to sign all necessary documents.
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Background:
The Finance Department currently manages delinquent accounts internally, including unpaid utility bills, fees, fines and other receivables. Despite ongoing collection efforts such as reminder notices and payment plans, a portion of these accounts remains unpaid and continues to age.
To improve recovery rates and streamline operations, staff explored using third-party collection agencies specializing in recovering delinquent public accounts while maintaining compliance with applicable laws and regulations. Staff conducted a formal Request for Proposal (RFP) process, evaluating the proposals based on qualifications, technical expertise, audit approach, and price. Based on this evaluation, The Cedars Business Services, LLC, was ranked as the most responsive and advantageous to the City.
Fiscal Impact:
There is no direct upfront cost to implement these services. The City will incur fees only upon the successful recovery of delinquent accounts, which will be offset by the additional revenues collected. As such, the use of a third-party collection agency is expected to improve overall recovery rates and enhance revenue realization with a positive net impact on the General Fund and utility funds.
Documents Attached:
Attachment 1 - Contract