San Luis raises collection fees and approves Brown's Collection Services agreement

San Luis City Council adopted resolution 23-74 to raise delinquent-accounts collection fees and approved an agreement with Brown's Collection Services to manage collections for utility and fire-medical accounts. Billing and collections manager Edgar Esparza told the council staff recommend increasing the collection fee to 25% for accounts assigned to Brown's, 30% for accounts under $25, and 40% for accounts referred out of state because Brown's charges a 25% commission on amounts collected.

Esparza said the city currently has "290 accounts in collections for $35,000, and the average account balance is about a $120." He explained staff expects Brown's local presence and 50 years of experience to improve recovery rates; Brown's president and general manager, Brown d Fraser, attended to answer questions and provide references.

Council opened and closed a public hearing on the fee increase with no public comments before adopting the resolution. The council then approved the Brown's Collection Services agreement by motion; the mayor announced the motions carried by voice vote.

Staff presented the measure as a collections-management and revenue-recovery action. No alternative vendors or projected revenue increases were detailed in the meeting record, and the council did not direct a phased implementation or request an independent audit before execution.