06-14-2021 BPU RPT 07 - Laserfiche WebLink

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W A T E R ENERGY I LIFE RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B I I C U I I I I I I F S BOARD OF PUBLIC UTILITIES DATE: JUNE 14, 2021 SUBJECT: APPROVE AN INCREASE OF $50,000 TO THE ANNUAL PURCHASE ORDER WITH SEQUOIA FINANCIAL SERVICES OF $80,000, FOR A REVISED TOTAL PURCHASE ORDER OF $130,000 ISSUE: Approve an increase of $50,000 to the annual purchase order with Sequoia Financial Services of $80,000, for a revised total purchase order of $130,000. RECOMMENDATION: That the Board of Public Utilities approve an increase of $50,000 to the annual purchase order with Sequoia Financial Services of $80,000, for a revised total purchase order of $130,000. BACKGROUND: On April 29, 2009, the City entered into an Agreement with Sequoia Financial Services for collection agency services through April 28, 2014. The First Amendment to the Agreement with Sequoia Financial was entered into on May 27, 2010 to adjust the compensation. The Second Amendment to Agreement with Sequoia Financial was entered into on July 31, 2013 to extend the term through December 31, 2017 and adjust the compensation. The Third Amendment to the Agreement with Sequoia Financial was entered into on March 5, 2018 to extend the term through December 31, 2022. On June 22, 2020, the Board of Public Utilities approved certain expenditures over $50,000 as required by the City Charter. This included approval of $80,000 with Sequoia Financial for debt collection services. Sequoia Financial is used by the Customer Service Division/Credit and Collections for outsourced collection efforts for delinquent utility bills that Riverside Public Utilities (RPU) has "written off" following all efforts to collect on utility bills. Sequoia Financial is paid based on the value of the accounts RPU has sent them compared to what they are able to collect. DISCUSSION: The annual purchase order for Fiscal Year 2020/21 with Sequoia Financial was established in the