Hooper staff propose third‑party collections pilot to reduce long‑running utility delinquencies

Hooper City staff proposed exploring a contract with a third‑party collection agency after reporting hundreds of long‑past due utility accounts that have periodically been written off.

City staff told the council Monica Barnes, the utility clerk, recommended a collections agreement with Bonneville Collections. Staff said the collection agency would add a fee charged to the delinquent account holder so the city would not pay the fee directly. Council members asked for clarification about whether the agency would buy debt or only collect on behalf of the city; staff said that point needs confirming and that the proposal could be tried as a limited, low‑risk pilot.

Why it matters: Staff said collections could reduce recurring bad‑debt writeoffs, relieve clerical workload, and create stronger incentives for payment because collections can appear on credit reports. The council discussed the mechanics of the city’s current process: the city sends shutoff notices periodically (staff described notices roughly every other month and shutoffs handled through Hooper Water for culinary water), cannot shut off sewer service, and often accepts small partial payments (for example $10 monthly) that legally prevent immediate shutoff. Staff reported several accounts exceed $1,000 and that the city attorney, Brandon, will pursue legal remedies such as liens or small‑claims actions once balances reach certain thresholds.

Council members asked for more precise numbers and legal clarity. Staff said a couple of hundred accounts frequently appear on the notice/shutoff lists and that the exact collection fee percentage discussed in the meeting was not finalized; the meeting referenced a percentage number but did not establish a final, council‑approved rate. Council members generally supported further study, asked staff to return with contract details and to raise the topic again at the next budget meeting, and authorized staff to continue due diligence but made no binding commitment to sign an agreement at the work meeting.

Staff also discussed operational details: the collection process would be administered by the utility clerk, unpaid balances could be referred to the city attorney for action above a stated threshold, and residents often negotiate payment plans that sometimes are not honored. The council suggested a trial period and emphasized a desire to protect residents who make good‑faith partial payments.