City of Simi Valley
Staff Report
March 9, 2026
To: City Council
Board of Directors of Ventura County Waterworks District No. 8
From: Administrative Services Department,
Carolyn Johnson, Administrative Services Director
Subject: Approval of a second amendment to the agreement between the City of Simi Valley, Ventura County Waterworks District N o. 8, and Collection Bureau of America, LTD
Staff Recommendation
It is recommended that the City Council/Board of Directors approve the second amendment to the agreement between the City of Simi Valley, Ventura County Waterworks District No. 8, and Collection Bureau of America, LTD, extending the term from March 23, 2026 to March 23, 2031 and increasing the not -to-exceed amount by $50,000 for a new total not-to-exceed of $86,921.
Background
In December 2020, the City requested proposals for debt collection services. On March 21, 2021, Collection Bureau of America, LTD (CBA) was awarded a contract for a not-to- exceed amount of $17,721 for a term of three years with one , two-year extension (Attachment A) . The first amendment to this agreement exercised the extension, extending the term through March 23, 2026, and increased the not-to-exceed amount by $19,200 to a new total not-to-exceed amount of $36,921 (Attachment B). The attached second amendment with CBA seeks to extend the term and increase the not -to-exceed amount of the existing contract. Under the City’s purchasing ordinance, contracts exceeding five years require approval by the City Council/Board of Directors.
Discussion
The City utilizes CBA to provide professional debt collection services for severely delinquent accounts, primarily closed water utility accounts, but also including sanitation (sewer-only) accounts and miscellaneous revenues billed from varying City divisions.
These services support the City’s revenue efforts in recovering money from accounts that would otherwise be considered uncollectable.
Since the execution of the original contract in March 2021, the volume of successfully collected funds increased over the initial estimate made during the RFP process. Based on current referral volume and anticipated activity over the extended term, the existing not-to-exceed amount is expected to be insufficient to cover anticipated collection activity
Agenda Item No.
Consent (4)
over the term of the proposed amendment. The proposed amendment increases the not- to-exceed amount sufficiently to cover a reasonable increase in volume over projections.
Financial Impact
These costs are included in the Department’s operating budget as part of the annual base budget. The agreement is structured so that CBA is compensated as a percentage of funds successfully collected on behalf of the City ; no expense is incurred unless CBA collects said funds and remits them to the City.
City Council Priority
This item supports the City Council’s pillar of excellence in Fiscal Stability by reducing losses to the City’s revenue streams.
Suggested Motion
I move that the City Council/Board of Directors, approve the second amendment to the agreement between the City of Simi Valley, Ventura County Waterworks District No. 8, and Collection Bureau of America, LTD., extending the term from March 23, 2026 to March 23, 2031 and increasing the not-to-exceed amount by $50,000 for a new total not- to-exceed of $86,921.
Summary
The City has an existing agreement with Collection Bureau of America, LTD for professional debt collection services. Staff recommends executing an amendment to the existing agreement to extend the term from March 23, 2026, to March 23, 2031 , and increasing the not-to-exceed amount by $50,000 to a new total of $86,921.
Prepared by: Taylor Dacus, Senior Management Analyst
Attachments:
Attachment A – Second Amendment to Agreement with CBA
Attachment B – Original agreement with Collection Bureau of America, LTD Attachment C – Memo and first amendment to the agreement with Collection Bureau of America, LTFD
2
SECOND AMENDMENT TO
AGREEMENT NO. 3240117 BETWEEN
THE CITY OF SIMI VALLEY, VENTURA COUNTY WATERWORKS DISTRICT NO. 8 AND
COLLECTION BUREAU OF AMERICA, LTD
THIS SECOND AMENDMENT (“Amendment”) is made and entered into this 9th day of March 2026, by and between the CITY OF SIMI VALLEY, a general law city and municipal corporation , and VENTURA COUNTY WATERWORKS DISTRICT NO. 8, collectively “CITY”, and Collection Bureau of America, LTD, a California corporation.
1. Pursuant to Section 8. Amendments of Agreement No. 3240117 (“Agreement”), Section 2. Term and Section 4. Compensation and Payment shall be amended to read as follows:
2. Term. The term of this CONTRACT will be extended from March 24, 2026 to March 23, 2031
4. Compensation and Payment., the first sentence is amended to read as follows:
“The total not to exceed amount for this CONTRACT will be increased by $50,000, for the extended term pursuant to this Second Amendment, with a total not to exceed amount of $86,921, unless otherwise agree to by the Parties in writing”
2. ELECTRONIC SIGNATURES. This Amendment may be executed by the Parties on any number of separate counterparts, and all such counterparts so executed constitute one Amendment binding on all the Parties notwithstanding that all the Parties are not signatories to the same counterpart. In accordance with Government Code §16.5, the Parties agree that this Amendment will be considered signed when the signature of a party is delivered by electronic transmission. Such electronic signature will be treated in all respects as having the same effect as an original signature.
3. This Amendment may be executed in any number or counterparts, each of which will be an original, but all of which together constitutes one instrument executed on the same date.
4. Except as modified by this Amendment, all other terms and conditions of Agreement No. 3240117 remain the same.
[SIGNATURES ON NEXT PAGE]
Attachment A
3 City of Simi Valley
2nd Amendment to Agreement No. 3240117
Collection Bureau of America, LTD
IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written.
Attest: City of Simi Valley, A Municipal Corporation
By:
Lucy Blanco, City Clerk Dee Dee Cavanaugh, Mayor of the City of Simi Valley, California
Approved as to Form: COLLECTION BUREAU OF AMERICA, LTD
Algeria R. Ford, City Attorney By:
Print Name: Shawn M. DeLuna
Approved as to Content:
Title: President/CEO
Samantha C. Argabrite, City Manager By:
Print Name: Jeffrey C. Lowenstein
Johanna Medrano, Title: Executive Vice President
Deputy Administrative Services Director/
Budget & Purchasing
Carolyn Johnson,
Administrative Services Director
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16 CITY OF SIMI VALLEY xx MEMORANDUM
DATE: March 5, 2024
TO: Brian P. Gabler, City Manager
FROM: Carolyn Johnson, Administrative Services Director SUBJECT: AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SIMI VALLEY, VENTURA COUNTY WATERWORKS DISTRICT NO. 8, AND
COLLECTION BUREAU OF AMERICA FOR DEBT COLLECTION
SERVICES
On March 24, 2021, the City entered into an agreement with Collection Bureau of America (CBA) for debt collection services, for an initial three-year term ending March 23, 2024, and not-to-exceed amount of $17,721. The agreement includes provi sion for one extension of an additional two-year term, extending the term to March 23, 2026.
Debt collections have increased in volume since 2021, which necessitates an increase in the consideration. This amendment allows for of the total not to exceed to be increased by $19,200, for a total contract not-to-exceed of $36,921.Payment is deducted by CBA directly from actual funds received. The City will not make direct payments to CBA.
Budget for this cost is included as a recurring item in the Adm inistrative Services/ Administration Division’s professional services budget as annual ly submitted. The amount and term for this contract are within the City Manager’s approval authority for professional services.
If you have any questions, please contact me at extension 6328.
Johanna Medrano Date Brian Paul Gabler Date
Deputy Administrative Services Director/ City Manager
Budget & Purchasing
Prepared by: Taylor Dacus, Senior Management Analyst
Attachments:
1. Amendment to the Contract
2. Original Contract
Carolyn
Johnson
Digitally signed by
Carolyn Johnson
Date: 2024.03.04
18:18:33 -08'00'
Johanna M.
Medrano
Digitally signed by Johanna M.
Medrano
Date: 2024.03.08 14:51:20
-08'00'
Brian Paul
Gabler
Digitally signed by Brian Paul
Gabler
Date: 2024.03.08 15:26:14
-08'00'
Attachment C
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