HomeMy WebLinkAboutData Central Collection Bureau, - Collection Agency Services Agmt. for those accounts considered uncollectible by various city departments/divisions 5/5/2009-5/5/2012„,iy va orw 11 e1`all
COLLECTION AGENCY SERVICES AGREEMENT
CITY OF FRESNO, CALIFORNIA
THIS NON-EXCLUSIVE AGREEMENT is made and entered into effective the 5th day of
May, 209, by and between Me CITY OF FRESNO, a Caldomia municipal corporation
(hereinaher referred to as "City'), and Data -Central Collection Bureau, LLC, a California limited
liability company (hereinafter referred to as "Collection Agency').
RECITALS
WHEREAS, City desires to obtain professional collection agency services for those
accounts considered uncollectible by various City DeparimentivDivisions including the Finance
Department - Utilities Billing and Gogections Division and Business Tax Division, Fresno Police
Department, Fresno Fire Department, Fresno Area Express, Department of Public Utilities,
Fresno Yosemite International Airport and Chandler Executive Alryort, hereinafter referred to as
the "Project;” and
WHEREAS, Copeman Agency w engaged in the business of humming technical and
expert services as a collection agency and hereby represents that it desires to and is
professionally and legally capable of performing the services called for by this Agreement and
WHEREAS, this Agreement aril be administered for City by Its Finance Director
(hereinafter referred to as "Administrator") or hisMer designee.
AGREEMENT
NOW, THEREFORE, In consideration of the foregoing and of the covenants, conditions,
and premises hereinafter contained to be kept and performed by the respective pates, it is
mutually agreed as follows'.
1. Scow of Services. Collection Agency shall perform to the satisfaction of City the
services described in Exhibit A, including all work Incidental to, or necessary to perform, such
services even though not specfically described in Exhibit A.
2. Term of Agreement and Time for Performance. This Agreement shall be
eftective from the date Prst set forth above ("Effective Date") and shall continue in full force and
effect through May 5, 2012, subject to any earlier termination in accordance wM this
Agreement. The services of Collection Agency as described in Exhibit A are to commence
upon the Effective Data and shall be completed in a sequence assuring expeditious completion,
but in any event, all such services shall be completed Prior to expiration of this Agreement and
in accordance with any performance schedule set forth in Exhibit A.
3. Comceneatioa
(a) Collection Agency a sole compensation for satisfactory patormar¢e of all
services required or mndered pursuant to this Agreement shall be commissions based on the
following collection fee rates_
Finance - Utility Billing and Collections Chasten and Department of Public
Utilities cotection accounts -
•
14% Non -legal cnllepton accounts
• 19% Legal collection accounts.
Accounts submitted by City depanmentsldivisions(excluding Finance - Utility
Billing and Cotecsons Division; and Department of Public Utilities) -
1] 3% Non-iegal collection accounts
• 27% Legal collection accounts.
RFP 9030 Page 1
Such collection fee rate induces all costs and expenses incurred by CONSULTANT in
performance of Me services. Notwithstanding the preceding rates, any and all payments
received from the debtor by Collection Agency within the first 30 days of assignment will be
commission free. For proposes W this section.'colkGlon fee rate" shall mean the percentage
of the total monies collected by Collection Agency from debtor on the respective account. For
Purposes of this section. 'legal collection account" shall mean any delinquent debt which all
collebtion activity by the Collection Agency has been exhausted and litigation is mandetl to
pursua recoveryof the debt. All other collection accounts are'non-legal"
(b) Detailed statements shall be rendered monthly for services performed in
the preceding month and will be payable In the normal course of City business. City shall not be
obligated to reimburse any expense for which it has not received a detailed invoice with
applicable copies of representative and identifiable receipts or records substantiatirg such
expense.
(c) The parties may modify this Agreement to increase or decrease the
scope of services or provide for the rendition of services not required by this Agreement which
modification shall include an adjustment to Collection Agency's compensation. Any charge in
the scope of services must be made by written amendment to the Agreement signed by an
authorized representative for each party. Collection Agency shall not be emitted to any
additional compensation If services are performed prior to a signed written amendment.
4. Termnatlon Remedies and Force Maeure.
(a) This Agreement shall terminate without any liability of City to Collection
Agency upon the earlier of (i) Collection Agency's filing for protection under the federal
bankruptcy Iowa, or any bankruptcy petition or petition for receiver commenced by a third parry
against Collection Agency, (Ii � y calendar tlays prior written notice with or without cause by City
to Collection Agency; (iii) Cty's non-appropdatiun of funds sufficient to meet its obligations
hereunder during any City fiscal year of IMS Agreement, or insufficient funding for the Project; or
(Iv) expiration of this Agreement.
(b) Immediately upon any termination or expiration of this Agreement,
Collection Agency shall (i) immediately stop all work hereunder, hi) immediately cause any and
all of its Subcontractors to cease work; and (iii) reNm to City any and all unearned payments
and all properties and materials in me possession W Collection Agency that are owned by City.
Subject to the terns W this Agreement, Collection Agency shall be paid compensation for
services satisfactorily performed prior to Me effective date of termination. Collection Agency
shall not be paid for any work or services performed or cosm incurred which reasonably could
have been avolded.
(c) In Ne event W termination due to failure of Collection Agency to
satisfactorily perform In accordance with the terms W this Agreement, City may withhold an
amount that would otherwise be payable as an offset to, but not In excess W. City's damages
caused by such failure. In no event shall any payment by City pursuant to this Agreement
constitute a waiver by City of any breach of this Agreement which may then exist on the pad of
Collection Agency, nor shall such payment impair or pmjWlce any remady available to City with
respect to the breach.
(tl) Upon any breach of this Agreement by Collection Agency, City may
(i) exemise any ngnt, remedy (in contract, law or equity), or pdvllege which may be available to
it under applicable laws of the State of Caldomla or any other applicable law; (li) proceed by
appropriate court action to enforce the terms W the Agreement: anmor (hi) recover all direct,
indirect, consequential, economic and incidental damages for the breach of the Agreement. If it
is determined that City improperly terminated Vis Agreement for default, such termination Shall
AFP 9030 Page 2
be deemed a termination for convenience.
(e) Collection Agency shall provide City with adequate mention assurances of
future performance, upon Administrators request, in the event Collection Agency fails to comply
with any terms or conditions of this Agreement.
(f) Collection Agency shall be liable for default unless nonperformance is
caused by an occurrence beyond the reasonable control of CollectionAgency ark without its
fault or negligence such as, ads of God or the public enemy, ods of City in its contractual
capacity, fres, footle, epidemics, quarantine sanctions, strikes, unusually severe weather, ark
delays of common carriers. Collection Agency shall notify Administrator in wrNng as soon as it
is reasonably possible after the commencement of any excusable delay, setting forth the NII
particulate in connection therewith, and shall remedy such occurrence with all reasonable.
dispatch, and shall promptly give written notice to Administrator of the casual of such
occurrence.
5. Confidential Information and Ownership of Oocumenh.
(a) Any reports, Information, or other data prepared or assembled by
Collection Agency pursuant to Mis Agreement shall net his made available to any individual or
organization by Collection Agency without Me prior woman approval of the Administrator. During
the term of this Agreement, and Hereafter. Collection Agency shall not, without the prior written
consent d City, disdose to anyone any Confidential Information. The term Confidential
bdormatlon for the purposes d this Agreement shall include all propnetary and confidential
information d City, including but not limited to business plans, marketing plans, financial
Information, materials, compilations, documents, instruments, models, source or object codes
and other Information disclosed or submitted, orally, in wriBng, or by any other medium or
media. All Confidential Information shall bo and remain confidential and proprietary in City.
(b) Any and all writings and documents prepared or provided by Collection
Agency pursuant to this Agreement are the property, d City at the time of preparation and shall
be turned over to Cdy upon expiration or termination d the Agreement. Collection Agency shall
not permit the reproduction or use thereof by any other person except as otherwise expressly
provided herein.
(c) This Section 5 shall survive expiration or termination d Mis Agreement.
B. Professional Skill. It is further mutually understood and agreed by and between
the parties hereto Mat inasmuch as Collection Agency represents to City that Collection Agency
is skilled in the profession and shall perform in accordance with the standards d sad profession
necessary to perform the services agreed to be done by h under this Agreement, City relies
upon the skill of Collection Agency to do and perform such services in a skillful manner and
Collection Agency agrees to Mus perform the services. Therefore, any acceptance d such
services by City shall not operate as a release of Collection Agency from said professional
darkards.
Y. Indemnification. To the furthed extent allowed by law, Collection Agency shall
indemnify, hold harmless and defend City and each of its officers, officials, employees, agents
and volunteers from any and all loss, liabigty, fines, penalties, forfeitures, costs and damages
(whether in contract, tort or amid liability, Including but not limited to personal injury, death at
any time and property damage), and from any and all daims, demands and actions in law or
equity (including reasonable attomey's fees and IRgatlan expenses) Mat arise out of, pertain to,
or relate to the negligence, recklessness or willful misconduct d Collection Agency, its
principals, officers, employees, agents or volunteers in Me performance of this Agreement.
If Colledion Agency should subcontmd all or any potion d the services to be pedonned
under this Agreement, Collection Agency shall require each subcontractor M indemnify, hold
RfP 9030 Page
harmless and defend City and each of its offices, officials , employees, agents and volunteers in
accordance with the terms of the preceding paragraph.
This section shall survive temnination or expiration d this Agreement.
B. In�yrtgL.
(a) Throughout the frfe of this Agreement, Collection Agency shall pay for and
maintain in full force and effect all insurance as required In Exhibit B or as may be authorized in
writing by City's Risk Manager or hislher designee at any time and In Mather sole discretion.
(b) If at any time during the Ida of the Agreement or any extension, Collection
Agency or any of its subcontractors fail to maintain any required insurance In full force and
aged, all services and work under this Agreement shall be discontinued immediately, and all
payments due or that become due to Collection Agency shall be withheld until notice is received
by City that the required insurance has been restored to full force and effect and Mat the
premiums therefore have been pad for a period satisfactory to Cay. Any failure to maintain the
required Insurance shall be suRdent cause for City to terminate this Agreement. No action
taken by City pursuant to this section shall in any way relieve Collection Agency of its
responaidlitles
under this Agreement. The phrase 'fall to maintain any required Insurance' shall
Include, without Ilmitatlon, notification received by City that an insurer has commenced
proceedings, or has had proceedings wmmermetl against 'R, indical Mat the insurer is
Insolvent.
(c) The fad that insurance is obtained by Collection Agency shall not ba
deemed to release or diminish the liability of Collection Agency, including, without limitation.
liability under Me Indemnity provisions of this Agreement. The duty to indemnify City shall apply
to all claims and liability regardless of whether any insurance policies are applicable. The policy
limits do not ad as a limitatian upon Me amount of indemnification to be provided by Collodion
Agency. Approval or purchase of any Insurance contracts or policies shall In no way relieve
from Ilabllity nor limit Me liability of Collection Agency, its principals, officers, agents, employees.
persons under the supervision of Collodion Agency, vendors. suppliers. invitee, consuitants.
sub-censuitan6, subcontractors, or anyone employed directly or indirectly by any of them.
(d) Upon request of City, Collection Agency shall immediately furnish City
with a complete copy of any insurance policy required under this Agreement, inducing all
endorsements, with said copy certified by the underwriter to be a true and coned copy of gra
original policy. This requirement shall survive expiration or termination of this Agreement.
(e) If Collection Agency should subcontract all or any pmtlon of the services
to be performed under Mia Agreement, Collachon Agency shall require each subcontractor to
provide insurance protection in favor d City and each of Its officers, officials, employees, agents
and volunteers in accordance with Me terms of this section, except that any required certificates
and applicable endorsements shall be on fila with Collodion Agency and City prior to the
commencement of any services by the subcontractor.
g. Conflict M Interest and Non-Sol'c'tagon.
(a) Prior to City's execution of this Agreement, Collection Agency shall
Com late a City of Fresno conflict of interest disclosure statement In the farm as set forth in
EzhPbit C. During the term of this Agreement, Collection Agency shall have the obligation and
duty to immediately notify City in writing of any change to the information provided! by Collection
Agency In such statement.
(b) Collection Agency shall comply, and require its subcontredors to comply,
with all applicable (i) professional canons and requirements governing avoidance of
Impermissible client conflicts; and Il) federal. state and local conflict of interest laws and
RFP 9030 Paye 4
regulations Including, without limitation, California Government Code Section 1090 at. seq., Me
California Political Reform Ad (California Government Code Section 87100 at. seq.) adv the
regulations of the Fair Political Pmdlces Commission concerning disclosure and disqualification
(2 California Code of Regulations Sectlon 18700 at pool At any time, upon when request d
City, Collection Agency shall provide a widen opinion of Ile legal counsel and Mat of any
subcontractor that, alter a due diligent Inquiry, Collection Agency aid the respective
subcoraractons) are In full compliance sign all laws and regulations. Collodion Agency shall
take, aid require its subcontractors to take, reasonable steps to all any appearance of a
conflict of Interest. Upon discovery of any facts giving rise to the appearance of a conflict of
shared, Collodion Agency shall Immediately notify City of Mese fads in wrong.
(d) In performing the work or services to be provided hereunder, Collectlon
Agency shall not employ or retain the sarvicas of any person while such person either is
employed by City or is a member of any City count commission, boar, committee, or similar
City body. This requirement may be waived In vot by the City Manager, d no actual or
Potential conflict is Involved.
(d) Collection Agency represents and warrants that it has not paid or agreed
to pay any compensation, contingent or otherwise, direct or Indirect, to solicit or procure Mis
Agreement or any dghtslbenetits hereunder.
(e) Neither Collodion Agency, nor any of Collection Agency's subcontractors
performing any services on this Project, shall bid for, assist anyone in the preparation of a bid
for, or perform any seodcas pursuant to, any other contract in connection with this Project
unless fully disclosed to and approved by the City Manager, In advance and in writing.
Collection Agency and any of its subconbactore shall have no interest, direct or indirect, in any
other contract with a III parry in connection with this Pmjact unless such Interest is in
accordance with all applicable law and fully disclosed to and approved by Me City Manager, In
advance and In wrNng. Notwithstanding any aWmval given by Me City Manager under this
Provision, Collodion Agency shall remain responsible for complying wain Section 9(b), above.
(P R Collection Agency should subcontract all or any potion of the wmk to
be performed or services to he provided under Nis Agreement, Collection Agency shall Include
the provisions of this Section 9 In each supported and require ih subcontractors to comply
therewith.
(g) This Section 9 shall survive expiration or termination of this Agreement.
1011
In the event Collection Agency maintains an office or
operates a (adlity(ies), or is regNretl herein to maintain or operate same, within the Incorporator
limits of the City of Fresno, Collodion Agency H its sole cost antl expense shall:
(i) Immediately establish aid maintain a viable and ongoing recycling program,
approved by City's Solid Waste Management Division, for each office and
facility. Literature describing City recycling programs is available from City's
Sold Waste Management Division and by calling City of Fresno Recycling
Hotline at (559) 821-1111.
VI) Immediately contact CM'es Solid Waste Management Division at
21-1a52
(559) 6: antl schedula free waste audit, antl cooperate with such
Division In their conduct of the audit for each office and facility.
(fill Cooperate with and demonstrate to Me satisfaction of City's Solid Waste
Management Division the establishment of the recycling program in
paragraph (i) above and the ongoing maintenance thereof.
RFP 9030 Pogo 5
11. General Terms.
(a) Except as otherwise provided by law, all notices expressly required of
City within the body of this Agreement, and not otherwise specifically provided for, shall be
effective only 8 signed by the Administrator or masher designee.
(b) Records of Collection Agency expenses pertaining to the project shall
be kept on a generally recognized accounting basis and shall be available to City or its
i uNorized representatives upon request during regular business hours throughout the life of
this Agreement and for a period of three years after final payment or, if longer, for any period
required by law, In addition, all books, documents, papers, and recoNe of Collection Agency
pertaining to the Project shall be available for Mery
puose of mall Mount examinations,
excerpts, and transcriptions for the same period of time. This Section 11(b) shall survive
expiration or termination of this Agreement.
12. Nondocr mina[ on, To Me extent required by controlling federal, state and local
law, C011emon Agency shall not employ discriminatory practices in Me prevision of services,
employment of personnel, or in any other respect on the basis of race, religious creed color,
national origin, ancestry, physical disability, mental dwabilgy, medical carnation, marital status,
sex, age, sexual orientation, etbnicky, status as a disabled veteran or veteran of the Vietnam
we Subject to the foregoing and during the conformance of this Agreement Collection Agency
agrees as follows:
(a) Collection Agency wall comply with all applicable laws and regulations
providing that no person shall, on Me grounds of race, religious creed, color, national origin,
ancestry, phyaiml disability, mental disability, medical condition marital status, sex, age. sexual
orientation, ethnil status as a disabled veteran or veteran of the Vietnam era be excluded.
from partidwition in, be denied the berrefce of, or be subject to discrimination under any
program or activity made possible by or resuNng from this Agreement.
(b) Collection Agency wil not discriminate against r
for employment because of ram, religious creed, color, national
disability, mental disability, medlml condition, marital status, sex,
etbniclly, status as a disabled veteran or veteran of the Vietnam era
ensure that applicants are employed and the employees are Ire
without regal to their now religious creed color, national origin, or
mental disability, medical condition, mental status, sex. age, sexual of
as a disabled veteran or veteran of the Vietnam era. Such requiremei
Agency's employment practices reducing, but not be limited to, the
upgrading, demotion or transfer, recruitment or recruftment adverts
rates of pay or other forms of compensation: and selection for training
Collection Agency agrees to post in conspicuous places, available to
for employment, noises setting forth the provision of Nis nondiscrimin
(c) Collection Agency will, in all solicitations or advertisements for employees
placed by or on behalf of Collection Agency in pul hereof, date that all qualified applicants
will recelve consideration for employment without regard to race, religious cal color, national
origin, ancestry, physical disability, mental disability, medical wooden, martial stows, sex, age,
sexual orientation, ethnicity, status as a disabled veteran or veteran of the Vietnam em.
(d) Collection Agency will si to each labor union or representative of
workers with which it has a collecTve bargaining agreement or other contract or undemanding,
a noise advising such labor union or workers' representatives of Collection Agency's
commitment under Mise section and shall post copies of the notice in conspicuous places
available to employees and applicants for employment.
RFP 9010 Page 6
13. Independent Contractor
(a) In the furnishing of the services provided for herein, Collection Agency is
acting solely as an independent contractor. Neither Collection Agency, nor any of Its officers
agents or employees shell be deemed an officer, agent, employee, joint ventureq partner or
associate of City for any purpose. City shall have no right to control or supervise or direct the
manner or metrical by which Collection Agency shall perform Its work and functions. However,
City shall retain the right to administer this Agreement so as to verity that Collection Agency Is
performing its obligations in accordance with the terms and conditions thereof.
(b) This Agreement does not evidence a partnership or joint venture between
Collect in Agency and City. Collection Agency shall have no authority to bind City absent City's
express wrd[em consent. Except to the extent ethereal provided in this Agreement, Collection
Agency shall bear its own costs and expenses in W rami thereof
(c) Because of Its status as an independent central Collection Agency
and its officersscent; and ermlovees shall have ahenlutely no ram to emnlnvment hams MM
for all payroll and tax withholding and for provourn; to, or on
employee benefits including, without limitation, health, welfare
addition. tcrether with its other colorations under this Acreemer
employment and tax withholding for and payment of Collection Agency's employees, including,
without limitation, (i) compliance with SoGal Security and unemployment insurance withholding,
payment of workers' compensation benaflls, and all other lam and regulations governing
matters of employee withholding, taxes and payment; and (ii) any claim of right or interest in
City employment benefits, entitlements, programs anchor funds offered employees of City
whether arising by reason of any common law, de facto, leased, or cohemployea fights or other
theory. It is acknowledged that during the term of this Agreement Collection Agency may be
providing services to others unrelated to CM or to this Agreement
19. Notices Any notice required or intended to be given to either party under the
terms of this Agreement shall be in writing and shall be deemetl to be duly given if delivered
personally, transmitted by facsimile followed by telephone confirmation of receipt, or sent by
United States registered or cedifietl mall, with postage prepaid, realm receipt requested,
addressed to the party to which notice is to be given at the parry's address set forth an the
signature page of this Agreement or at such other address as the parties may from time to time
designate by wriiten notice. Notices served by United States mail in the manner above
described shall be deemetl sufficiently served or given at the time of the mailing thereof.
15. Bialy l Subject to Section 16, below, once this Agreement is signed by all
parries, it shall be binding upon, and shall inure to the benefit of all parties, and each pontes'
respective heirs, successors, assigns, transferees, agents, servants, employees and
representatives.
16. Asaanment.
(a) This Agreement Is personal to Collection Agency and Area shall be no
assignment by Collection Agency of AS fill or obligations under this Agreement without the
prior written approval of the City Manager or blander designee. Any attempted assignment by
Collection Agency, its successors or assigns, shall be null and void unless approved in writing
by the City Manager or hisPoer designee.
(b) Collection Agency hereby agrees not to assign the payment of any
'mones due Collation Agency from Chterms y under the tes of this Agreement to any other
dividual(s), corporation(s) or enoty(n a). City retains the right to pay any and all monies due
RFP 9030 PW
Collection Agency directly to Collection Agency.
1Z Commit nee it I. In providing the services required under this Agreement,
Collection Agency shall at all times comply with all applicable laws of the Urged States, Ne
State of California and City, antl with all applicable regulations promulgated by federal, state,
regional, or local administrative and regulatory agencies, now In force and as they may be
enacted issued, or amended during the tem of this Agreement.
16. Waver. The waiver by either party of a breach by me other of any provision of
this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of
either the same or a different prevision of this Agreement No provisions of this Agreement may
be waived unless in writing and signed by all parties to this Agreement. Waiver of any one
provision herein shall not be deemed to be a waiver of any other prevision herein.
19. governing Law and Venue. This Agreement shall be governed by. and
construed and enforced in accordance with, the laws of the State of California, excluding.
however, any conflict of laws rule which would apply the law of another jurisdiction. Venue for
purposes of the filing of any action regarding the enforcement or interpretation of this
Agreement and any rights and duties hereunder shall be Fresno County, California.
20. Heaadin g. The sicdon headings in this Agreement are for convenience and
reference only and shall not be construed or held in any way to explain, modify or add to the
interpretation or meaning of the provisions of this Agreement.
21. Severab'IM. The provisions of his Agreement are severable. The invalidity, or
unenforceability of any one provision in his Agreement shall not affect the other previsions.
U. Interpretation. The parties acknowledge that this Agreement in its final form Is
the result of the combined efforts of the inches and that, should any provision of this Agreement
be found to be ambiguous in any way, such ambiguity shall not be resolved by construing this
Agreement in favor of or against either party, but rather by construing the terms in accordance
with their generally accepted meaning.
23. Attorneys Fees. If either parry is required to commence any proceeding or legal
action to enforce or interpret any term, covenant or condition of this Agreement, the prevailing
party in such proceeding or action shall be entflled to recover from the other party Its reasonable
attorney's fees and legal expenses.
24. Exhibits. Each exhibit and attachment referenced in this Agreement is, by the
reference, incorporated into and made a part of this Agreement.
25. Pmosidence of Documents. In the event of any conflict between the body of this
Agreement antl any Exhibil or Attachment hereto, Me terms and conditions of the body of this
Agreement shall control and lake precedence over me terms and Conditions expressed within
Ne Exhibit or Attachment. Furthermore, any terms or conditions contained within any Exhibit or
Attachment hereto which purport to modify the allocation of risk between the parties, provided
for within the body of this Agreement, shall be null and void
26. Cumulative Remedies. No remedy or election hereuntler shall be deemed
exclusive but sM1all, wherever possible, be cumulative with all Omer remedies at law or in equity.
27. No TFi b PaM Benefc a es. The rights, interests, duties and obligations defined
within this Agreement are intended for the specific dismiss hereto as identified In the preamble of
this Agreement. Notwithstanding anything stated to the contrary In this Agreement, it Is not
intended that any nghm or interests in this Agreement benefit or flow to the interest of any third
Parties,
RFT 9030 page X
28 Extent of Agreement Each party acknoviedges that they have read and fully
untlerstantl the contents IN this Agreement This Agreement represents the entire and
integrated agreement between the parties with respect to the subject matter hereof and
supersetles all
prior negotiations, repreaemations or agreements, either written or oral. This
Agreement may be modified only by writlen instrument duly authorized and executed by both
City and Colledion Agency.
IN WITNESS WHEREOF, the parties have executed This Agreement at Fresno.
California, Ne day and year fret above written.
CITY OF FRESNO,
a California municipal corporation
By:
K SS@en B alley
Intarltl'CI Controller
ATTEST:
REBECCA E, KLISCH
CRY C=
By:
rmy S//Neo
APPROVED AS TO FORM:
JAMES C. SANCHEZ
City ABomey
By:
Nanpppppp A AI9i rte
eynor Depup
Addresses
City.
City of Fresno
Adn: Karen M Bretlley. Interim City Controller
2608 Fresno, Sheet, Room 2157
Fresno, CA 93721
Phone: (559)621-]048
FAX, (559) 61
Attachments:
Exhibit A - Scope of Services
Exhibit B - Insurance Requirements
Exhibit C -Conflict of Interest Disclosure Form
Data -Central Collection Bureau, LLC,
a California limited liability company
BYiv
: Q�
Name: Marc Kempen
Title: Presided
(f corporation or LLC, Board
ea, P. s. or Vi Pras.J
By.
Name: Robert Kempen
Tide Chief Financial Off"r
if corporation or LLC. CFO,
Treasurer, Secretary or
Assistant Secretary)
Collection Agency:
Data -Central Collection Bureau, LLC
Attemon' Robert Kempen, President
2600 W. Shaw Lane
Fresno. CA 93792
Phone. (559) 4488111
FAX (569) 4468935
UP 91 Page 9
Exhibit A
SCOPE OF SERVICES
Collection Agency Service Agreement between City of Fresno ("City")
and Dista-Central Collection Bureau, LLC ('Collection Agency")
COLLECTION AGENCY SERVICES FOR VARIOUS CITY DEPARTMENTS
wvmec
General
1. Provide collection services for unpaid and delinquent accounts receivables for the
following'.
• Business taxes
• Utilities billing
• Contract Law Enforcement Services, DUI amounts (Business Office) and
emergency board -ups
• Airport activity and fixed rem
• False alarms
• Non-suficient fund returned checks for various departments
• Illegal fireworks citations
• Other accounts as assigned
2. Accounts may consist of multiple charges for a variety of services performed or
assessments made.
3. Assignable accounts will be retained by the City for a period of 36 months depending on
the type of account. If the City's collection efforts are not successful, the accounts all be
assigned to Collection Agency.
4. Internal or Web Access is the preferable method for amount assignment and amount
status inquiry.
5. Collection Agency shall not have full rights for the accounts. All information provided to the
Collection Agency shall be used solely for" purpose of collection and may not be
provided to any outside agency, business or person without the when contend of the City.
6, Collection Agency will provide an acknowledgement of amounts placed will Me Collection
Agency within flue (5) days of receipt from the City.
1. City shall provide copies of dowmentaton as required by the Collection Agency to respond
to deplores requests. City will make every effort to provide all pertinent Information to the
Collection Agency.
S. No li igations or compromised settlements of assigned amounts shall be made by
Collection Agency without express written consent of the City.
9. Collection Agency shall make contacts with tlelinquent accounts under Me name of the
Collection Agency.
RFP 9030 Noe 1 of
10. The Collection Agency shall designate a manager for the We account, who will be Me
City's primary contact at the Collection Agency.
11. The Collection Agency shall be solely responsible for any costs whatsoever incurretl for
collections on accounts referred to it for collection, including, but not Impact to all mats,
fees and charges for legal involved with collecflon activities.
Reports and Inquiry
12. Collection Agency shall submit written status reports on all accounts on a monthly basis by
type of receivable. Reported data should provide a summary and detail aging report with
information for each account including: original balance, current balance, money received,
charges waived interest charged, and date of last payment A financial summary will also
be required showtng'pebod to date' and 'year to date totals for pertinent Information such
as: Receipts, net accounts receivable, total accounts receivable and collection percentage.
13. A wall report as of June 30th, should be prcv ed annually to include a detailed listing
of all accounts by type; detailed listing of all amounts closed In the past year by type; detail
of all activity by account in past year by type; summary of all the above reports.
ColleNon Activities
14. Collection Agency shall conduct slop trading and asset searches an delinquent accounts.
15. Collection Agency must have the ability to report uncollected accounts to the mayor credit
bureaus. At Me time Mat Me account is assigned for collection, the City will advise the
Collection Agency t credit bureau reporting is prohibited for that amount All reporting shall
be in accordance will all applicable Federal, Sfate lens including, but not limited to the Fair
Debt Collection Practices Act, Federal Equal Credit Opportunity Act, Regulations and the
Consumer Creole Protection Act.
16. At the request of the City, the Collection Agency shall remove an account notification from
all affected bureaus and provide a copy of that notification from all affected bureaus to the
City. The City requires Mat accounts be cancelletl from each credit bureau upon request of
the City.
17. The City is customer seance oriented and finny believes in a positive approach in dealing
with debtors. The Agency shall not use Wi that may be interpreted as harassment or as
demeaning or Met may refect poorly on Me City's atoms.
16. The City requires the Collection Agency tip exercise high annual standards in their collation
philosophy and techniques. The Collection Agency shall conduct its collection business In a
professional manner, which will preserve Me dignity of the CM and its relationship with tits
citizens.
19. The City wilt provide guidance on the conduct of Me collection service as it will reflect on
the City's policies and reputation.
RFP 5030 Page 2 of
?D. If in the discretion of the City, it is deemed that the Collection Agency has acted in an
improper unethical or illegal manner the City may require that all accounts be retumed to
the. City immediately.
21. The Collection Agency shall meet annually with the City to discuss all services and discuss
prior year s results.
22. The City would like the Collection Agency to consider having accounts which are collected
by the agency within 30 days of receipt from the City to be returned to the Cdy at 100% or a
discount from the final collection percentage.
23. The City may recall an account or redu a/amend the amount due on any was at any time.
Recoied accounts will not be subled to collection fees. Collection fees for
reduced/amended accounts will be based upon the reducedfamended balance.
24. The"i adds a collection fee to all accounts sent to collections and may request the
Collection Agency to also charge for delinquent fees once sent to Me Collection Agency as
allowed by City ordinance.
25. The Collection Agency shall remit to the City, all moires collected leas collection fees, with
a report including account name, account number. City Department, amount collected and
amount of cllacton fees.
Uncollectible Accounts
26, The City requires that all accounts net collectetl upon within 6 months to be returned to the
City with a record of efforts to wiled and explanation of why the account is deemed
unwlledable.
27. The Collection Agency shall report annually on June 30" to the City all accounts deemed
by it to be uncollectible by July 1 V along with reasons why the account Is uncolkwYable
and actions taken to attempt the collection.
Training
28. The Collection Agency may be asked to periodically provide training to the City and otner
department staff at no cast The Collection Agenry shouts also provide recommendations
on how the City can reduce future bad debt. The Collection Agency should consider
providing updates to the City on charges in state and national laws related to credit and
collections including any Agency newsletters, Xavailable.
RFP 9030 Puge 3 off
Exhibit B
INSURANCE REQUIREMENTS
Collection Agency Service Agreement batwean City of Fresno ("Cly')
and Data -Central Collwtion Bureau, LLC ("Collection Agency")
COLLECTION AGENCY SERVICES FOR VARIOUS CITY DEPARTMENTS
PR6ELTIIiI £
Minimum Scope or Insurance
Coverage shall be at least as broad as
1, The most current version of Insurance Services Office (ISO) Commercial General
Liability Coverage Form CG 00 01, which shall include Insurance for °bodly
Injury, property damage' and "personal and advertising injury with coverage for
premises and operations, products and completed operations, and contractual
liability.
2. The moat current version of Insurance Ser -wee Office (ISO) Business Auto
Coverage Form CA 00 01, which shall include coverage for all owned hired and
non -owned automobiles or other licensed vehicles (Code 1- Any Auto).
3, Workers' Compensation insurance as required by the California Labor Cade and
Employees Liability Insurance.
A. Professional Liability (Errors and Omissions) Insurance appropriate to Collection
Agency's profession.
Minimum Llmlb of Insurance
Collection Agency shall maintain limits of liability of not less than'
1. General Liability:
$1,000,000 per occurrence for bodily intury and property damage
$1,000,000 per occurrence for persona and advertising injury
$2,000,000 aggregate for products and completed operations
$2,000,000 general aggregate applying separately to me work performed under
the Agreement
2. Automobile Liability:
$1,000,000 per accident for bodily injury and property damage
3. Employees liability:
$1,0W OW each accident for bodily, injury
$1.OW,OW disease ea& employee
$1,000,000 disease policy lima
9, Professional Liability (Emirs and Omissions)
$1,000,000 par clamhoccumence
$2,OW,000 polity aggregate
Ria? 9030 Po v 1 of 3
Umbrella or Excess Insurance
In Me event Collection Agency purchases an Umbrella or Excess insurance policy(ies) to meet
the "Minimum Limits of Insurance,' this Insurance polfigAhes) shall Yobow form' and afford no
less coverage than the primary insurance policy(ierd
Deducgbles and Self4ra ureE Retentions
Collection Agency shall be responsible for payment of any deductibles contained in any
Insurance polices required hereunder and Collection Agency shall also be responsible for
payment of any selfinsured retentions. Any deductibles or aettinsured retentions must be
declared to, and approved by, the City's Risk Manager or hiafher tlesignee. At the option of the
City's Risk Manager or hisfher tlesignee, either (i) the insurer shall reduce or eliminate such
deductibles or self -Insured retentions as records City, its officers, officials, employees, agents
and volunteers; or (III CollectionAgency shall provide a financial guarantee, satisfactory to
City's Risk Manager or hisfher designee, guaranteeing payment of losses and related
investigations , claim administration and defense expenses. At no time shall City be responsible
for the payment of any deductibles or sent -insured retentions.
011ier Insurance Provisions
The General Liability and Automobile Liability insurance police are to contam, or be endorsed
to contain, the following provisions;
1. City, As officers , officials , employees, agents and volunteers are to be covered as
additional insureds.
2. The coverage shall contain no special limitations on the scope of protection
afforded to City, its officers, of i ls, employees, agents and volunteers.
3. Collection Agency's insurance coverage shall be primary and no contrbution
shall be required of City.
The W rke C sari Is to contain, or be endorsed to contain, the
roaming poviaion: Collection Agency and its Insurer shall waive any right of subrogation
against City, its officers. officials. employees, agents and volunteers.
If the Praffissional Liability Effors and Omissions) insurance cohm is wntten on a claims -made
i=
1. The "Rebo Date: must be shown, and must be before the effective dam of the
Agreement or the commencement of work by Collodion Agency,
2. Insurance must be maintained and evidence of insurance must be provided for at
least 5 years after any expiration or terminal of the Agreement or, in the
akemrtive, the policy shall be endorsed to provide not less than a 5 -year
discovery period. This requirement shall survive expiration or termination of the
Agreement.
3. If coverage is canceled or non -renewed, and not replaced with another
imams -made policy form with a'Retro Dale' prior to the effective date of the
Agreement, Collection Agency must purchase 'extended reporting' coverage for
a minimum of 5 years following Ura expiation ortennination oft" Agreement.
RFP W30 Page 2 of 3
4. A copy of the claims reporting requirements must be submitted to City for review
5. These requirements shall survive expiration or termination of the Agreement.
All policies of insurance required hereunder shall be endorsed to provide that the coverage shall
not be cancelled, non -renewed, reduced in coverage or in limits except after 30 calendar day
written notice by certified mail, return recalls requested, has been given to City. Upon Issuance
by the insurer, broker, or agent of a notice of cancellation, non -renewal, or reduction In
coverage or in limits, Collection Agency shall human City with a naw certficzte and applicable
endorsements for such pollcy(iiii In the event any policy is due to expire during the wmk to be
performed for City. Collection Agency shall provide a new certificate, and applicable
endorsements, evidencing renewal of such policy not leas than 15 celendar days prior to Me
expiration date of Me expiring policy.
Acceptability of Insurers
All policies of insurance required hereunder shall be placed with an Insurance company(les)
admitted by the California Insurance Commissioner to do business In Me Sti of California and
rated not lass than -A-VII' in Best's Insurance Rating Guide, or authorized by Citys Risk
Manager
Verification of Coverage
Collection Agency shall fumish City with all certificate(s) and applicable endorsements
effecting coverage required hereunder. All certficalea and applicable endorsements ereto be
received and approved by Me Citys Risk Manager or hismer designee prior to City's execution
of the Agreement and before work commences.
UP 9030 Page 3 of
Exhibil
DISCLOSURE OF CONFLICT OF INTEREST
COLLECTION AGENCY SERVICES FFA VARIOUS CITY DEPARTMENTS
fawz°
Explanation:
Sgnature
blame Kemoan President
(name)
DataLenirel Collection Bureau LLC
(company)
2BCC W. Shaw Lane
(address)
0 Additional pagats) attached. Fresno CA 93711
(city state zip)
RFP 9030 five I of I
YES•
NO
i
Are you currently in litgation with Me City of Fresno or any of its
❑
agents'!
2
Do you represent any firm, organization or parson who is In
❑
litigation with fire City of Fresno?
3
Do you currently represent or perform work for any clients who do
❑
business with the City of Fresno?
4
Are you or any of your principals, managers or professionals,
owners or investors In a business which does business with the
L1City
of Fresno, or in a business whicil is in Iitigahon with the City of
Fresno?
5'
Are you or any of your principals, man am or professionals,
related n
by blood or manage to any City of Fresno employee who
has
❑
I�
any significant role In the subject matter of this a6rvloe9
e
W you or any of Your subcontractors have, or expect to have, any
interest, direct or indirect, in any other contract in correction
❑
this Project?
If the answer to any question is yea, p ease expleln In full below.
Explanation:
Sgnature
blame Kemoan President
(name)
DataLenirel Collection Bureau LLC
(company)
2BCC W. Shaw Lane
(address)
0 Additional pagats) attached. Fresno CA 93711
(city state zip)
RFP 9030 five I of I