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HomeMy WebLinkAboutReso 092-93 CommerceCollection RESOLUTION NO. 92 - 93 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING AN AGREEMENT FOR COLLECTION AGENCY SERVICES AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT ON BEHALF OF THE CITY OF DUBLIN WHEREAS, the City Council of the City of Dublin is desirous of engaging collection agency services to enhance City revenues and adequately pursue collection of inactive accounts receivable; and WHEREAS, City Staff has requested, received and analyzed proposals from five providers of collection agency services; and WHEREAS, Commerce Collection, Ltd., of Livermore has proposed services and charges which Staff believes best meet the City's requirements and has prepared a contract covering said services and charges. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the attached agreement (Exhibit A), with Commerce Collection, Ltd. BE IT FURTHER RESOLVED that the Mayor is authorized to execute the agreement. PASSED, APPROVED AND ADOPTED this 26th day of July, 1993. AYES: Councilmembers Burton, Houston, Howard, Moffatt, and Mayor Snyder NOES: None ABSENT: None ABSTAIN: None May SS/lss a: Reso92. agenda#13 CONTRACT FOR COLLECTION AGENCY SERVICES THIS AGREEMENT is made at Dublin, California, as of July 2~ , 1993, by and.. between the CITY OF DUBLIN, a municipal corporation ("CITY"), and Commerce Collections, Ltd. ("CONTRACTOR"), who agree as follows: SERVICES. Subject to the terms and conditions set forth in this Agreement, CONTRACTOR shall provide to CITY the services described in Exhibit A. CONTRACTOR shall provide said services at the time, place and in the manner specified in Exhibit A. PAYMENT. CITY shall pay CONTRACTOR for services rendered pursuant to this Agreement at the time and in the manner set forth in Exhibit B. The payments specified in Exhibit B shall be the only payments to be made to CONTRACTOR for services rendered pursuant to this Agreement. CONTRACTOR shall submit all billings for said services to CITY in the manner specified in Exhibit B; or, if no manner be specified in Exhibit B, then according to the usual and customary procedures and practices which CONTRACTOR uses for billing clients similar to CITY. FACILITIES AND EOUIPMENT. CONTRACTOR shall, at its sole cost and expense, furnish all facilities and equipment which may be required for furnishing services pursuant to this Agreement. GENERAL PROVISIONS. The general provisions set forth in Exhibit C are' part of this Agreement. In the event of any inconsistency between said general provisions and any other terms or conditions of this Agreement, the other term or condition shall control insofar as it is inconsistent with the general provisions. EXHIBITS. All exhibits referred to herein are attached hereto and are by this reference incorporated herein. CONTRACT ADMINISTRATION. This Agreement shall be administered by the CITY'S Administrative Services Director ("ADMINISTRATOR"). All correspondence shall be directed to or through the ADMINISTRATOR or his or her designee. 7. NOTICES. Any written notice to CONTRACTOR shall be sent to: Commerce Collections, Ltd. 111. Lindbergh Ave., Suite D Livermore, CA 94551-2798 Any written notice to CITY shall be sent to: Administrative Services Director CITY of Dublin 100 Civic Plaza Dublin, CA 94568 Contract for Collection Agency Services Page 2 July 22, 1993 Executed as of the day first above stated: Attest: By ~<~j. ~ Peter W. Snyder, ~a'yor Approved as to form: City Attorney By Commerce Collection, Ltd. Linda Schneider, Client Representative SS/lss a:628C01Ag.finan~l Contract for Collection Agency Services Page 3 July 22, 1993 EXEIBIT A SCOPE OF SERVICES The CITY desires the CONTRACTOR to undertake collection services of the. CITY'S accounts receivable and other evidences of indebtedness in the manner set forth below: pre~Q1]e~tion L~t~er service Accounts/debtors referred to the CONTRACTOR by the City, for this service, will be sent two (2) courtesy letters 14 days apart from each other. Account/debtor will be instructed to Ray the CITY directly. When 30 days has expired, the account/debtor wall- be transferred to the direct collection process, unless the CITY'S Administrator directs the CONTRACTOR otherwise. D~ re~ CO~lect~ on Pro~es~ Accounts/debtors may be referred to this process directly or after the precollection letter service described b a ore. 1. Accounts/debts become the sole responsibility of the CONTRACTOR. Any billing or service charges on behalf of the CITY will be suspended. Accounts/debtor contact with the CITY will be referred to the CONTRACTOR. The CONTRACTOR shall have the authority to receive payment in cash, check or money order on accounts/debts referred to CONTRACTOR. CONTRACTOR shall have authority to endorse checks, drafts, money t t orders and other negotiable ins rumen s which may be received in payment of said accounts. The CONTRACTOR shall use all legal means to affect collection of all accounts/debts, such as letters, telephone calls and notices. The CITY reserves to itself the decision whether its claims shall be .placed in litigation. In the event all ordinary and reasonable collection efforts fail, the CITY may authorize the CONTRACTOR. to commence litigation in the CITY'S name. The CONTRACTOR agrees to advance all necessary legal costs. The CONTRACTOR may forward any of the CITY'S claims to another collection agency if the account/debtor has moved from the general business area of the CONTRACTOR. The CITY reserves to itself the decision whether the forwarded claim shall be put into litigation. Contract for Collection Agency Services Page 4 July 27, 1993 10. 11. All expenditures to affect collection of accounts/debts shall be borne. by the CONTRACTOR, including attorney's fees and filing costs expended on claims/debts specifically authorized for civil suit. The CITY agrees that a record of each account assigned to the CONTRACTOR may be placed with a credit reporting agency for inclusion in the individual credit file and reported as a derogatory item for the times prescribed in the Federal Fair Credit Reporting Act. The CITY reserves the right to remove any item from a credit file by notifying the CONTRACTOR and reporting the inclusion of the item as being the CITY'S error. The CITY may require the CONTRACTOR to return specific accounts that have not been collected within a reasonablelength of time, providing they are not in active process of collection as defined by the Business and Professions Code of the State of California. The CITY may also require the CONTRACTOR to return specific accounts which may have been assigned in error within a reasonable period of time after assignment. The CONTRACTOR shall remit all monies, less fees due, collected the previous month and a report shall be given to the CITY no later than the 15th of the month following the close of the previous month. All monies due the CITY shall be remitted in full with a statement of each collection, showing names in alphabetical order. The debtor's name, account number, date collected, amount collected, whether paid to the CITY or paid to the CONTRACTOR, fee due the CONTRACTOR and balance due on the account will be shown on each monthly remittance. The CONTRACTOR shall not accept as settlement in full, on any account assigned, any amount less than the full amount as originally assigned by the CITY, without the expressed written consent of the CITY. Contract for Collection Agency Services Page 5 July 22, 1993 EXHIBIT B PAYMENT SCHEDULE CITY'shall pay CONTRACTOR for services to be performed pursuant to this Agreement as described below. CONTRACTOR shall submit invoices during the term of this Agreement based on the charges for services performed in accordance with the following schedule: Precoll~ction Letter Servl~ - $ 4.00 per account submitted Litigation collections 40% of collections 50% of collections, * When Contractor collects, in whole or in part, on an account which has litigation expenses, Contractor shall deduct first from payments received any and all legal costs advanced, before remitting amounts owed by CONTRACTOR to CITY. IDterest On Dire~t Collection:In accordance with State laws Contractor shall be allowed to charge and retain interest to offset the cost of collecting the account. Said interest earnings shall be in full accordance with State laws. CONTRACTOR REMTTT~NCR CONTRACTOR shall remit to the CITY, all monies, less fees due, collected the previous month, not later than the 15th of the month following the close of the previous month. All monies remitted to the CITY shall be submitted with a statement of each collection and detailed accounting of the payment.. The total sum stated above shall be the total which CITY' shall pay for the services to be rendered by CONTRACTOR pursuant to this Agreement. CITY shall not pay any additional sum for any expense or cost whatsoever incurred by CONTRACTOR in rendering services pursuant to this Agreement. CITY shall make no payment for any extra, further or additional service writing executed by the CITY Manager or other designated official of CITY authorized to obligate CITY thereto prior to the time such extra service is rendered. The services to be provided under this Agreement may be terminated without cause at any point in time in the sole and exclusive discretion of CITY. In this event, CITY shall compensate the CONTRACTOR for all outstanding costs incurred as of the date of written notice thereof and shall terminate this Agreement. Contract for Collection Agency Services Page 6 July 22, 1993 EXHIBIT C GENeRaL PROVISIONS INDEPENDENT CONTRACTOR. At all times during the term of this' Agreement, CONTRACTOR shall be an independent CONTRACTOR and shall not be an employee of CITY. CITY shall have the right to control CONTRACTOR only insofar as the results of CONTRACTOR's services rendered pursuant to this Agreement; however, CITY shall not have the right to control the means by which CONTRACTOR accomplishes services rendered pursuant to this Agreement. LICENSES: pERMITS; ETC- CONTRACTOR represents and warrants to CITY that he has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for CONTRACTOR to practice his profession. CONTRACTOR represents and warrants to CITY that CONTRACTOR shall, at his sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals Which are legally required for CONTRACTOR to practice his profession. T~ME- CONTRACTOR shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary for satisfactory performance of CONTRACTOR'S obligations pursuant to this Agreement. INS,URANCE.R~OUIREMENTS. CONTRACTOR shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the CONTRACTOR, his agents, representatives, employees or subcontractors. The cost of such insurance shall be included in the CONTRACTOR's bid. At Minimum Scope of Insurance. coverage shall be at least as broad Insurance Services Office form number GL 0002 (Ed.1/73) covering comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability; or Insurance Services Office Commercial General Liability coverage ("occurrence" form CG 0001.) Insurance Services Office form number CA 0001 (Ed. 1/78) covering Automobile Liability, code 1 "any auto" and endorsement CA 0025 .... Workers' Compensation Insurance as required by the Labor Code of the State of California and Employers Liability Insurance. Contract for Collection Agency Services Page 7 July 22, 1993 MinimRm Limits of Insurance. less than: CONTRACTOR shall maintain limits no General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage. If commercial General Liabilit7 Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. Workers' Compensation and Employers Liability: Workers' Compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. DedUctibles and $~lf-InSUre~ Retentions. Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the option of the CITY, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the CITY, its officers, officials and employees; or the CONTRACTOR shall procure a bond guaranteeing payment of losses. and related investigations, claim administration and defense expenses. Other Insurance PrOVisionS- The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability and Automobile Liability Coverages. The CITY, its officers, officials, employees and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the CONTRACTOR; products and completed operations of the CONTRACTOR, premises owned, occupied or used by the CONTRACTOR, or automobiles owned, leased, hired or borrowed by the CONTRACTOR. The coverage shall contain no special limitations on the scope of the protection afforded to the CITY, its officers, officials, employees or volunteers. The CONTRACTOR'S insurance coverage shall be primary insurance as respects the CITY, its officers, officials, employees and volunteers. Any insurance.~or self-insurance maintained by the CITY, its officers, officials, employees or volunteers shall be excess of the CONTRACTOR'S insurance and shall not contribute with it. Contract for Collection Agency Services Page 8 July 22, 1993 Any failure to comply with reporting provisions of the. policies shall not affect coverage provided to the CITY, its officers, officials, employees or volunteers. The CONTRACTOR'S insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the t insurer's liabili y. Wo~rs' COmpensation and ~mp~oyers Liability Coverage - The insurer shall a~ree to waive all rights of subrogation against the CITY, its officers, officials, employees and volunteers for losses arising from work performed by the CONTRACTOR for the CITY. professional Liability - CONTRACTOR shall carry professional liability insurance in an amount deemed by the CITY to adequately protect the CONTRACTOR against liability caused by negligent acts, errors or omissions on the part of the CONTRACTOR in the course of performance of the services specified in this Agreement. ~1 Coverages - Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, cancelled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the CITY. Acceptability of IDsurers - Insurance is to be placed with insurers with a Bests' rating of no less than A:VII. Verification Of Coyerage. CONTRACTOR shall furnish CITY with certificates of ~nsurance and with original endorsements effecting coverage requiredby this clause· The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be received and approved by the CITY before work commences. The CITY reserves the right to require complete, certified copies of all required insurance policies, at any time. Subcontractors - CONTRACTOR shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of .~the requirements stated herein. The Risk Manager of CITY may approve a variation in those insurance requirements upon a determination that the coverages, Contract for Collection Agency Services Page 9 July 22, 1993 scope, limits and forms of such insurance are either not commercially available or that the CITY'S interests are otherwise. fully protected. CONTRACTOR NO AGENT - Except as CITY may specify in writing, CONTRACTOR shall have no authority, express or implied, to act on behalf of CITY in any capacity whatsoever as an agent. CONTRACTOR shall have no authority, express or implied, pursuant to this Agreement to bind CITY to any obligation whatsoever. ASSIGNMENT PROHIBITED - No party to this Agreement may assign any right or obligation pursuant to this Agreement, unless authorized by the Administrator. Any attempted or purported assignment of any right or obligation pursuant to this Agreement shall be void and of. no effect. PERSoNNeL - CONTRACTOR shall assign only competent personnel to perform services pursuant to this Agreement. In the event that CITY, in its sole discretion, at any time during the term of this Agreement, desires the removal of any such persons, CONTRACTOR shall, immediately upon receiving notice from CITY of such desire of CITY, cause the removal of such person or persons. ~TANDARD .OF PERFORMANCE - CONTRACTOR shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which CONTRACTOR is engaged in the geographical area in which CONTRACTOR practices his profession. All instruments of service of whatsoever nature which CONTRACTOR delivers to CITY pursuant to this Agreement shall be prepared in a substantial, first class and workmanlike manner and conform to the standards of quality normally observed by a person practicing in CONTRACTOR'S profession. MOLD HARMT.F~S AND RESPONSIBILITY OF CONTRACTORS. CONTRACTOR shall take all responsibility for the work, shall bear all losses and damages directly or indirectly resulting to him, to any subcontractor, to the CITY, to CITY officers and employees, or to parties designated by the CITY, on account of the performance or character of the work, unforeseen difficulties, accidents, occurrences or other causes predicated on active or passive negligence of the CONTRACTOR or any subcontractor. CONTRACTOR shall indemnify, defend and hold harmless the CITY, its officers, officials, directors, employees and agents from and against any or all loss, liability, expense, claim, costs (including costs of defense), suits, and damages of every kind, nature and description directly or indirectly arising from the performance of the work. This paragraph shall not be construed to exempt the CITY, its employees and officers from its own fraud, willful injury.^or violation of law whether willful or negligent. For purposes of Section 2782 of the Civil Code the partie~ hereto recognize and agree that this agreement is not a construction contract. By execution of this agreement CONTRACTOR acknowledges and agrees that he has read and Contract for Collection Agency Services Page 10 July 22, 1993 10. 11. understands the provisions hereof and that this paragraph is a material element of consideration. Approval of the insurance contracts does not relieve the CONTRACTOR or subcontractors from liability under this paragraph. GOVERNMENTAL REGULATIONS - To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, CONTRACTOR shall comply with all applicable rules and regulations to which CITY is bound by the terms of such fiscal assistance program. DOCUMENTS - All reports, data, maps, models, charts, studies, surveys, photographs, memoranda or other written documents or materials prepared by CONTRACTOR pursuant to this Agreement shall become the property of CITY upon completion of the work to be performed hereunder or upon termination of the Agreement. a: 629Col ag. agenda#l 3