Needles housing authority approves Sequoia contract to pursue ~ $20,000 in past‑due debts; commission questions clarified

The Needles Housing Authority approved a proposal to hire Sequoia Financial Concepts to pursue roughly $20,000 in delinquent accounts dating back to 2021. Staff said the company has been successful with lien placement and tax‑return intercepts in other city work.

Staff described the fee structure: Sequoia will receive a 25% commission on recoveries prior to suit and 35% if the authority pursues litigation. Council members raised concerns about language that could be read to require commission on "full recovery" even when only part of the debt is collected. One council member read aloud a contract clause that said the firm is "entitled to receive commission on full recovery regardless of the dollar amount actually signed by client," and asked whether that meant the vendor could claim the full commission on a partial collection. Staff and others clarified the practice is to take a percentage of the amount actually recovered.

Council approved waiving the formal bid requirement for collection services and authorized the proposal for Sequoia Financial Concepts. Staff said there is no fee unless Sequoia collects funds; if no funds are recovered, the city pays nothing.

Why it matters: The arrangement transfers collection effort to a third party that will take a sizeable portion of recovered funds. Council concerns focused on protecting the authority from paying a commission on partial recoveries and ensuring contract language reflects actual practice.

Next steps: Staff will finalize the contract language to ensure commission applies only to recovered amounts and will begin assigned collections.