Form Rev 2/18/2025
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A CONSULTANT SERVICES
AGREEMENT FOR PROFESSIONAL DEBT COLLECTION
SERVICES BETWEEN THE CITY AND CEDARS BUSINESS
SERVICES, LLC
WHEREAS, the City issues and manages various accounts receivables, including civil penalties, permits, utility fees, municipal code violations, and damages to City property, through several City departments; and
WHEREAS, to support the recovery of delinquent accounts receivables, the City requires professional debt collection services; and
WHEREAS, to procure these services , the Finance Department solicited proposals in accordance with Chula Vista Municipal Code Section 2.56.110; and
WHEREAS, the City received six proposals from consultants interested in providing professional debt collection services; and
WHEREAS, the City’s selection committee completed its review of proposals and selected Cedars Business Services, LLC as the consultant most qualified to provide professional de bt collection services; and
WHEREAS, the City desires to enter into a Consultant Services Agreement with Cedars Business Services, LLC to perform professional debt collection services; and
WHEREAS, the proposed agreement with Cedars Business Services, LLC establishes an initial term of three years and eight months, with two optional one-year extensions; and
WHEREAS, compensation under the agreement will be based on a percentage of funds successfully recovered, ranging from eleven percent (11%) to thirt y-three percent (33%), depending on the age of the debt, with no payment for uncollected accounts; and
WHEREAS, the total amount payable to the consultant for services performed through June 30, 2031, shall not exceed $1,000,000; and
WHEREAS, the consultant will provide comprehensive delinquent debt collection services on behalf of the City in accordance with all applicable laws and regulations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Consultant Services Agreement for Professional Debt Collection Services , between the City and Cedars Business Services , in the fo rm presented , with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept Resolution No.
on file in the Office of the City Clerk, and authorizes and directs the Mayor or City Manager to execute same.
Presented by Approved as to form by
Sarah Schoen Marco A. Verdugo
Director of Finance/Treasurer City Attorney