HomeMy WebLinkAbout4.05 A/R Collections&Write-OffProcdrs
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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: July 26, 1993
SUBJECT:
Accounts Receivable - Collection Agency Services
and Account Write-Off Procedures
(Prepared by: Stan Stephens, Financial Consultant)
1. /~esolution Approving Proposed Agreement
2. ~Excerpts From Proposal Submitted By Commerce
Collections
3. / Resolution Establishing Procedures for
Accounts Receivable write-Offs
EXHIBITS ATTACHED:
RECOMMENDATION:~ ~ 1.
2.
Adopt Resolution approving Agreement for
Collection Agency Services and authorize
Mayor to execute the agreement.
Adopt Resolution establishing procedures for
write-off of uncollectible accounts
receivable.
FINANCIAL STATEMENT: The costs of proposed collection agency services
will vary, depending on the number of accounts submitted and which level of
service is used: precollection letter service will cost $4.00 per account;
direct collection service will be 40% if litigation is not required. If
litigation is required 50% of the collections are retained by the
collection agency.
During Fiscal Year 1993-94, Staff estimates 150 accounts, mostly Driving
Under the Influence (DUI), will be referred for letter service at a cost of
$600. Adequate funds should be available in the Administrative Services
Contract Services budget. If one-third of these accounts are successfully
collected additional revenue would approximate $6,600.
DESCRIPTION:
Collection Agency Services
In accordance with City Council direction Staff mailed Requests For
Proposals (RFP's) for collection agency services, to six firms on April 27,
1993. All five of the firms which responded appear to be qualified to act
as collection agents. The levels of services and costs varied
considerably.
The RFP requested two levels of service: (1) a precollection letter
service, which basically is intended to show we intend serious collection
effort; and (2) a formal collection service where assets are found and
attached: The precollection letter service would generate the most revenue
and is primary in Staff's evaluation of proposals. It is also important
that the firm carefully follow the law and have eJq>erience with other
governmental, or quasi-governmental entities. Direct collection services
are much more expensive and would be pursued as a_last resort.
Commerce Collection, Ltd. (Livermore) had the best proposal for Uletter
services." Commerce Collection would do two letters for $4.00 an account.
The firm will take any 'accounts submitted up to the four year statute of
limi tation without minimums as to dollar amounts or number of accounts.
They will do formal collection, at the direction of the City, for 40% of
collections or 50% if litigation is involved. Although one firm did offer
to provide a single letter at no charge, Staff recommends the Commerce
Collection proposal because of the greater emphasis on letter service (two
letters) before going to the more expensive formal collection service. The
letters, on their letterhead, would be far more compelling than monthly
statements from the City, but would be relatively inexpensive. The letter
directs the customer to make payment directly to the City of Dublin.
All accounts to be submitted for collection agency services would include
only those which have been billed at least twice over a sixty day period
and have not paid or contacted Staff regarding potential payment. Hence,
all collections from this source would be revenue which would not otherwise
be collected.
COPIES TO:Linda Schneider, Commerce
Collections, Ltd.
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CITY CLERK
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Commerce
Services
viacom.
clients.
Collections has provided similar services for: Dublin San Ramon
District, City of Livermore, City of Salinas, Pacific Bell and
Staff received favorable comments from other public agency
status Of Accounts Receivable
Tn addition to providing a cost effecti ve means to recei ve additional
revenue, the use of a collection service will also result in a more
effective use of Finance Department Staff. with the limited City Staff
available, it is difficult for the City to fOllow-up directly on each and
every delinquent account. At the current time there are approximately 114
unpaid accounts, which may be suitable for collection services (i.e. the
statute of limitations has not run and the City billing process has not
resulted in any response.) Approximately 89 of these accounts relate to
emergency response to incidents invol ving a dri ver who was under the
influence. Approximately 25 of the accounts are for miscellaneous fees and
charges including: payments for services where the check was returned for
insufficient funds; damage to public property, etc.
This analysis does not include development fee accounts which may be past
due. Staff will be working with the Development Services Departments to
update records as to the status of projects, and the basis for any fees
which are past due. This effort will be necessary in order to determine
the extent of actual past due amounts in~-this category and a determination
of the most cost effective means to collect development fees owed to the
city.
Tn cases were an amount past due relates to public damage, the City will
need to perfect the claim, prior to sending it to the collection agency.
This may involve the filing of a small claims court action in order to
obtain a judgment. Staff is also evaluating a program in which the State
Franchise Tax Board will garnish state Tax Refunds and Lottery winnings, on
behalf of a'public agency which has a legal judgment. Since this program
requires certain personal information about the indi vidual, addi tional
information would need to be solicited through the small claims process.
Staff will evaluate the most cost effective means of collection, in the
event that more than one process becomes available.
Procedures for Accounts Receivable write-Off
The City's Finance Division maintains a detailed, aged accounts receivable
record of a variety of charges billed to individuals and businesses. No
formal policy has been previously established for those accounts which are
found to be uncollectible. While no state or local codes provide
guidelines for write-off of such accounts, generally the statues of
limitations on receivables is four years, except where otherwise provided
(DUT charges have a two year limitation under the Code of civil
Procedures).
To effectively purge the receivable files of accounts, Staff recommends
that accounts determined to be uncollectible (exceed statute of
limitations, bankrupt, skip, not traceable, etc.) should be written off
onc~ approved by the following level of authority:
1. Up to $200 per account - approval of the Assistant City Manager /
Administrative services Director.
2. Over $200, up to $500 - based upon the recommendation of the Assistant
City Manager / Administrative Services Director, and with the
approval of the City Manager.
3. Over $500 - based upon the recommendation of Staff, and upon the
approval of the City Council.
Staff have prepared a Resolution (Exhibit 3), which would provide for the
implementation of these procedures.
Staff recommends that the City Council adopt the Resolution approving the
agreement with Commerce Collections and the Resolution approving a "Write -
Off" procedure.
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RESOLUTION NO. - 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:
NOES:
ABSENT :
ABSTAIN:
Mayor
ATTEST:
City Clerk
SS/lss a:ResoCo1.agenda#13
EXHIBIT 1
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CONTRACT FOR COLLECTION AGENCY SERVICES
THIS AGREEMENT is made at Dublin/ California, as of July ____, 1993/ by and
between the CITY OF DUBLIN, a municipal corporation ("CITY"), and Commerce
Collections, Ltd. ("CONTRACTOR"), who agree as follows:
1.
SERVICES.
Agreement,
Exhibit A.
and in the
Subject to the terms and conditions set forth in this
CONTRACTOR shall provide to CITY the services described in
CONTRACTOR shall provide said services at the time, place
manner specified in Exhibit A.
2. 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.
3. 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.
4. GENERAL PROVISIONS. The general provisions set forth in Exhibit Care
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.
5. EXHIBITS. All exhibits referred to herein are attached hereto and are
by this reference incorporated herein.
6. eONTRACT 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 eITY shall be sent to:
Administrative Services Director
CITY of Dublin
100 civic Plaza
DUblin, CA 94568
EXHIBIT A.
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contract for Collection Agency Services
Page 2
July 22, 1993
Executed as of the day first above stated:
CITY OF DUBLIN
a municipal corporation
By
Peter W. Snyder, Mayor
Attest:
City Clerk
By
Commerce Collection, Ltd.
Linda Schneider, Client Representative
Approved as to form:
Elizabeth silver
City Attorney
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Contract for Collection Agency Services
Page 3
July 22, 1993
EXHIBIT A
SCOPE OF SERVICES
The CITY desires the CONTRACTOR to undertake collection services of the
CITY'S accounts recei vable and other evidences of indebtedness in the
manner set forth below:
precollection Letter Service
Accounts/debtors referred to the CONTRACTOR by the city, for this service,
will be sent two (2) courtesy letters l4 days apart from each other.
Account/debtor will be instructed to pay the CITY directly. When 30 days
has expired, the account/debtor wlI1 be transferred to the direct
collection process, unless the CITY'S Administrator directs the CONTRACTOR
otherwise.
1. Accounts/debts become the sole responsibility of the CONTRACTOR.
2. Any billing or service charges on behalf of the CITY will be
suspended.
3. Accounts/debtor contact with the CITY will be referred to the
CONTRACTOR.
4. 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
orders and other negotiable instruments which may be received in
payment of said accounts.
5. The CONTRACTOR shall use all legal means to affect collection of all
accounts/debts, such as letters, telephone calls and notices.
6. 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.
7. 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.
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Contract for Collection Agency Services
Page 4
July 22, 1993
8. 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.
9. 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.
10. The CITY may require the CONTRACTOR to return specific accounts that
have not been collected within a reasonable length 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.
ll. 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.
12. 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.
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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:
Precollection Letter Service
$ 4.00 per account submitted
Direct Collection Process:
Pre-litigation collections
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.
Interest On Direct
Contractor shall be allowed to
cost of collecting the account.
accordance with state laws.
Collection:In accordance with state laws
charge and retain interest to offset the
Said interest earnings shall be in full
CONTRACTOR REMITTANCE
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 CONTRAeTOR in rendering services pursuant to this Agreement.
CITY shall make no payment for any extra, further or additional service
pursuant to this Agreement unless such extra service and the price therefor
is agreed to in 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.
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Contract for Collection Agency Services
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July 22, 1993
EXHIBIT C
GENERAL PROVISIONS
1. 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.
2. 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.
3. TIME. 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.
4. INSURANCE REOUIREMENTS. 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.
>-C' _. ::;,,~_A .-.M,~'"1i-:F-';!1'!l ~Qope of Insurance. .~?r}Jlerage shall be at least as broad
, ' 'as : --~- .~--_. - ~
1. Insurance Services Office form number GL 0002 (Ed.l/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.)
2. Insurance Services Office form number CA 0001 (Ed. 1/78)
covering Automobile Liability, code 1 "any auto" and
endorsement CA 0025.
3 . Workers' Compensation Insurance as required by the Labor
Code of the State of California and Employers Liability
Insurance.
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Contract for Collection Agency Services
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July 22, 1993
B. Minimum Limits of Insurance. CONTRACTOR shall maintain limits no
less than:
1. General Liability: $1,000,000 combined single limit per
occurrence for bodily injury, personal injury and property
damage. If commercial General Liability 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.
2. Automobile Liability: $1;000,000 combined single limit per
accident for bodily injury and property damage.
3. 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.
C. Deductibles and Self-Insured 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.
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D. other Insurance Provisions. The policies are to contain, or be
endorsed to contain, the following provisions:
l. General Liability and Automobile Liability Coverages.
a. The CITY, its officers, officials, employees and
~_, . -..",..,. ,.2:'. _ ~:-.=-volunteers are totiG~covered as insureds as respects:
,~ - -"."'L'---liability arising ouf- 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.
b. 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.
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Contract for Collection Agency Services
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July 22, 1993
c. Any failure to comply with reporting provisions of the
policies shall not affect coverage provided to the
CITY, its officers, officials, employees or volunteers.
d. 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
insurer's liability.
2. Workers' Compensation and Employers Liability Coverage -
The insurer shall agree 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.
3. 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.
4. All 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.
E. Acceptability of Insurers Insurance is to be placed with
insurers with a Bests' rating of no less than A:VII.
F. Verification of eoverage. CONTRACTOR shall furnish eITY with
.-c?:::'ctLCicates_ of insurance'';':~11d with original endorsements
effectYn<,r-coverage required bithis 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.
G. 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.
H. The Risk Manager of CITY may approve a variation in those
insurance requirements upon a determination that the coverages,
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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.
5. 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.
6. ASSIGNMENT PROHIBITED - No party t9 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.
7. 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.
8. STANDARD 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.
9. HOLD HARMLESS AND RESPONSIBILITY OF CONTRACTORS. CONTRACTOR shall
__~"tak~-,--(:lJl,-:n~sponsibili ty for the':i-~!l9rk, shall bear all losses and
'damages directry 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 parties 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
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Contract for Collection Agency Services
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July 22, 1993
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.
10. 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.
11. 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.
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P.O. BOX 2798 . 111 LINDBERGH AVENUE, SUITE D · LIVERMORE, CALIFORNIA 94550
(510) 447-9010
FAX: (510) 447-9059
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RECEIVED
MAY 1 0 1993
FINANCE
COLLECTION PROPOSAL
FOR
lxc~'l.~'S
THE CITY OF DUBLIN
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SUBMITTED BY:
LINDA SCHNEIDER
MARKETING REPRESENTATIVE
MAY 6, 1993
EXHIBIT ;l
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Ci ty of Dublin
Proposal for Collection Agency Services
(Due at Civic Center by May 10, 1993)
1 .
Name of Firm
COMMERCE COLLECTIONS. LTD;
2.
Address
III D LINDBERGH AVE. LIVERMORE. CA 94550
3.
Contact Person/Title
LINDA SCHNEIDER -CLIENT REPRESENTATIVE
4.
Local Phone Number
510
) 447-9010
COLLECTION AGENCY SERVICES - LETTER SERIES
5. Charge per account accepted ($/%) $4.00 (see exhibit A. B. & C)
6~ Limitation on age of accounts accepted 48 months
7. Minimum number of accounts per year NONE
8. Minimum dollar value of account $ NONE
9. Other restrictions ,** SEE A'ITACHMENT EXHIBIT D REGARDING "TORTE" CLAIMS**
. '. "
COLLECTION AGENCY SERVICES - FORMAL COLLECTION
10. Charge per account accepted ($/%)
11. Limitation on age of accopnts accepted
12. Minimum number of accountr per;y,~ar
13. Minimum dollar value of account
40%/50% if suit filed
_~8
months
---H9NE
$ -1i.QNE
14. Other restrictions
** SEE EXHIBIT D REGARDING "TORTE" CLAIMS **
BACKGROUND INFORMATION
-~~-:-~,.... "~'::'::;;"'__~d~~_~. __-::::;=.-.' - - - - -~~~ -
15. J How ~manY"c.years has your agency been servicing clients in the Bay
Area? 50 plus years
. ,.'.
16. Provide the names I contact person, phone number and extent of
services (similar to our requirements above) for five clients.
Clients should be located in the Bay Area, should have worked with
your agency during the last year, and should be governmental
agencies, if possible. (Attach a separate lisL)**SEEATTACHED**
17. What credit services do you use in your collection efforts and at
what level of service are they useq?
Name
Service Level
TRW CREDIT SERVICES
SKIPTRACING. CREDIT REPORTING. LOCATION OF ASSETS
CREDIT BUREAU INC.
~KIPTRACING. CREDIT REPORTING. LOCATION OF ASSETS
18. Other specific comments pertinent to our request for proposals.
(Attach no more than one letter size page in this response.)
a: prosco 11. f1 nanceH 1
~ P.O. BOX 2798'
Commerce
Collections, Ltd.
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I I 1 LINDBERGH AVENUE. SUITE D · LIVERMORE. CALIFORNIA 94551-0279
(510) 447-9010
FAX (510) 447-9059 .
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THE COLLECTION PROCESS
PRECOLLECTION LETTER SERVICE - Charge $4.00 per patient/debtor.
This is optional to direct process.
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1) Client, during this process, may communicate directly with
patient/debtor. May make payment arrangements and accept
,payments.
2) Client should notify Commerce Collections, Ltd. of any and all
payments, payment arrangements, cancellations, or updates on
precollect accounts to maintain accurate patient/debtor infor-
mation. All monies received by the client from the patient/
debtor prior to transfer of the account to direct collection
should be reported to Commerce Collections, Ltd.
3) All monies received by our client during this period from the
patient/debtor will be charged no commission by Commerce
Collections, Ltd. Once the account has transferred to the
direct collection process, Commerce Collections, Ltd. will
retain the agreed commission percentage rate on these monies
that were not reported during or prior to the transfer of any
accounts from the Precollection process.
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4) The Precollection Process is a courtesy letter service in
which two (2) courtesy letters are sent to the patient/debtor
14 ~ays apart from each other. =Th-~~patient/debtor is instructed
fJ- ~"tcsi::cJr-. ::.~C t ';i:md/ or 'pay you direct-I"y---:, When 30 days have expired,
the account is transferred to direct collection.
DIRECT COLLECTION PROCESS - No charge until money is recovered.
1) Accounts become the sole responsibility of Commerce Collections,
Ltd.
2) Any billing or service charges on the behalf of the client should
end.
3) If the patient/debtor should contact the client, the patient/
debtor phone calls should be directed to Commerce Collections,
Ltd. The patient/debtor should be told to deal directly with
the agency.
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F. 0. BOX 2798
3569 FIRST STREET
LIVERMORE, C~ 94550
415-44"7--9()1 <)
M(~RCH 29, 1. 988
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PATIENT, JOHN t.1
000 HOME ST
LOS GATOS
CA .95030
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CREDITOR: RODNEY M. CARVER, M.D.
100 MAIN ST
CONCORD CA 94520
Ar10UNT:
$
100.00
C_O U R T E S Y - NOT ICE
WE FEEL THAT ALL WHO TAKE INTERESt IN THEIR CREOIT STANOING WILL
WELCOME A REMINDER OF A PAST DUE ACCOUNT. IT IS THE POLICY OF OUR
MEMBER TO PERIODICALLY REFER PAST DUE ACCOUNTS FOR COLLECTION.
THIS WILL BE DONE IF THIS IS NOT PAID WITHIN THE NEXT FEW DAYS. HDW-
EVER, IF THERE IS A QUESTION REGARDING THIS MATTER, PLEASE CONTACT
RODNEY M. CARVER, M.D.
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PLEASE REMIT DIRECTLY TO RODNEY M. CARVER, M.D.
****************************************************
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DISPUTES REGARDING THE VALIDITY OF THIS BALANCE OR ANY PORTION
THEREOF MUST BE MADE IN WRITING TO THE COLLECTION AGENCY WITHIN
30 DAYS. DURING THIS PERIOD THE AGENCY WILL, IF REQUESTED. SEND
VERIFICATION OF THE DEBT AND THE NAME OF THE ORIGINAL HOLDER OF
THE OBLIGI!:tTION.
COLLECTION AGENCIES ARE LICENSED AND REGULATED BY THE BUREAU OF
COLLECTION AND INVESTIGATIVE SERVICE~, STATE DEPARTMENT OF CON-
SUMER AFFAIRS, 1920 20TH ST. SACRAMENTO. CA 95814
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COMMERCE COLLECTIONS, LTD.
P.O. BOX 2798--
3569 FIRST STREET
LIVERMORE, CA 94550
415-447-9010
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MARCH 29, 1988
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PATIENT, JOHN M
000 HOME ST
LOSGATOS
CA 95030
CREDITOR:
RODNEY M. CARVER, M.D.
100 1'-1AIN ST
CONCORD
CA 94520
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AI"1OUNT: >'] $, 100. 00
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DEL I NC!UEI\!CY PAYI"iENT 'NOTICE
RECENTLY YOU WERE NOTIFIED OF YOUR UNPAID BALANCE. OUR MEMBER~S
RECORDS INDICATE YOUR ACCOUNT IS STILL DELINQUENT AND THEY REQUEST
THAT YOU CLEAR THIS PAST DUE AMOUNT BEFORE IT IS REFERRED FOR COLL-
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ECTION. IF PAYMENT IS NOT RECEIVED WITHIN THE NEXT; TEN DAYS, THIS
ACCOUNT WILL BE PLACED WITH OUR OFFICE WITHOUT FURTHER NOTICE.
CREDIT IS A VALUABLE ASSET.
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F'ROTECT YOURS.
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* PLEASE REMIT DIRECTLY TO RODNEY M. CARVER, M.D.
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THIS IS AN ATTEMPT TO COLLECT A DEBT. ANY INFORMATION OBTAINED
WILL BE USED FOR THAT PURPOSE.
COLLECTION AGENCIES ARE LICENSED AND REGULATED BY THE, BUREAU OF
COLLECTION AND INVESTIGATIVE SERVICES, STATE DEPARTMENT OF CON-
SUMER AFFAIRS, 1920 20TH ST. SACRAMENTO. CA 95814
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CLIENT REFERENCES
NAME
SERVICE
CONTACT
CITY OF SALINAS
SALINAS POLICE DEPARTMENT
DUI PROGRAM
DAN NELSON -POLICE CHIEF
(408) 758-7286
** DUI PROGRAM CURRENTLY ADMINISTERED BY CREDIT CONSULTING SERVICES, INC., A
BRANCH OFFICE OF COMMERCE COLLECTIONS, LTD.**
CITY OF LIVERMORE
FINANCE DEPT.
WATER DEPT.
BUSINESS LICENSES NANCY METZNER!LINDA SCHAFFER!
CITY WATER ROBIN KELLY!JAN MAYO
(510) 373-5i50!373-5151
FIRE DEPT.
FIRE & HAZARDOUS . ERIC CARLSON - DIVISION CHIEF
~~TERIALS CODE PERMITS (510) 373-5410
DUBLIN SAN RAMON SERVICE '
DISTRICT
HATER & SEWER
PAT GIORDANENGO
(510) 551-7230 EXT. 114
PACIFIC BELL
RESIDENTIAL TELEPHONE GALENIK KALENIK
510 & 209 AREA CODE (916) 972-3551
VIACOM CABLEVISION
CABLE TELEVISION CONNIE A1'lDERSEN!CINDY SHAH
SERVICE (510) 443-0470
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** THE ABOVE LISTING IS ONLY A PARTIAL LIST OF COMMERCE COLLECTIONS,LTD. CLIENTS.
AMORE DETAILED LISTING IS AVAILABLE UPON REQUEST**
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RESOLUTION NO.
- 93
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
***************************
Resolution Establishing Procedures For write-Off of Uncollectible Accounts
Receivable
WHEREAS, it is prudent for the City to have established procedures to
purge stale accounts receivable items from the financial records; and
WHEREAS, in accordance with financial policies it shall be the intent
of the City to undertake reasonable efforts to secure payment of
outstanding debts; and
WHEREAS, accounts may become uncollectible due to circumstances such
as, but not limited to: the statute of limitations for a legal proceeding
has been exceeded; bankruptcy has been filed; the City is unsuccessful in
locating the debtor; the cost of collection exceeds the amount owed, etc.;
and
WHEREAS, to reduce the potential number of accounts which become
uncollectible, the City council has authorized the use of a collection
agency;
WHEREAS, it is desirous to have procedures, which allow City Staff to
administratively dispose of accounts, which are less than $500; and
WHEREAS, City Council approval would be required for all amounts over
$500, which are proposed to be written off.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the city of Dublin
does hereby adopt the following procedures for the handling of accounts
receivable which are deemed by City Staff to be uncollectible:
PROCEDURE
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These procedures establish the approval required to write - off
uncollectible accounts from the City's financial records. A reasonable
effort shall be made by the City to obtain payment prior to writing off
past due amounts. City Staff shall maintain records of such efforts.
1. Individual accounts of $200 and less may be written off upon approval
of the Assistant City Manager/Administrative Services Director.
2. Individual accounts of more than $200 and less than $500, may be
written off based upon the recommendation of the Assistant City Manager/
Administ.rati~~~~rvices Director, and wi~~~the approval of the city
14anager . ~>,,' '~;..-:;;:,---"."-c;': "",=-
3. Individual accounts over $500 may be written off based upon the
recommendation of Staff and with the approval of the City Council.
PASSED, APPROVED AND ADOPTED this
th day of
, 1993.
AYES:
NOES:
ABSENT:
Mayor
ATTEST:
City Clerk
EXHIBIT 3