The San Luis City Council adopted Resolution 23-74 to increase collection fees on delinquent water and wastewater accounts and approved an agreement with Brown's Collection Services to pursue collection of unpaid utility and fire-medical accounts.

Billing and Collections Manager Edgar Esparza told the council the city intends to assign accounts to Brown’s, which charges a 25% commission on amounts collected (20% for accounts under $25 and 40% on accounts referred out of state). Esparza said the city currently has 290 accounts in collections totaling about $35,000, with an average balance of roughly $120 per account.

Esparza said staff recommended the fee increase because Brown’s charges 25% while the prior contractor charged 20%, and the new fees would be added to customers’ account balances to enable the city and contractor to recover 100% of owed amounts. The council opened and closed a public hearing on the fee change with no public comment and then approved Resolution 23-74 by voice vote.

Council then considered a proposed agreement with Brown’s Collection Services. Esparza said Brown’s has over 50 years of experience and serves local Yuma-area clients. Brown’s president and general manager, Brown D. Fraser, attended the meeting for questions. A motion to approve the Brown’s Collection Services agreement carried by voice vote.

The record shows the fee structure change and the contract are separate but related steps: the resolution establishes the fee schedule applied to accounts assigned for collection, and the agreement names the vendor to implement collections.