Loading...
HomeMy WebLinkAboutResolution - 4277 - Agreement - Collectech Diversified Inc - Financial Collection Services - 10_14_1993Resolution No. 4277 October 14, 1993 Item #24 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Professional Services Agreement by and between the City of Lubbock and Collectech Diversified, Inc., attached herewith, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this ATTEST: &-tic'- P, IrL� Betty M.'JohnsoH4 City Secretary APPROVED AS TO CONTENT: (J/ki 6Q)�� ale__ o ert Massengale'/Assistant City Manager for Financial Services APPROVED AS TO FORM: v � �.r .ry v G. Van Ever, t Assis ant City Attorney DGV:da/AGENDA-D1/A-COLLCY.res October 1, 1993 Resolution No. 4277 October 14, 1993 Item #24 THE STATE OF TEXAS PROFESSIONAL SERVICES AGREEMENT COUNTY OF LUBBOCK THIS AGREEMENT entered into this day by and between the City of Lubbock, hereinafter called "City" and Collectech Diversified, hereinafter called "Corporation;" WITNESSETH: WHEREAS, the City may have checks and accounts which it may desire Corporation to collect from time to time, and whereas, Corporation is qualified to collect such unpaid checks and uncollected accounts as may be referred by City; and NOW THEREFORE, the City and the Corporation mutually agree as follows: 1. Corporation agrees to collect insufficient funds checks as follows: Checks with Insufficient funds shall be forwarded to the collection agency directly from the City's depository bank, and the amount of the insufficient checks shall be charged back by the bank against the City of Lubbock Clearing Fund Bank Account. The City of Lubbock will communicate to Cor- poration the total amount of insufficient checks returned to City, weekly. At that time, the Agency will remit to City an advance of collections on those insufficient checks. As collections are made, the Agency will remit to City the City's portion of the service charge on collected insufficient checks ($6.75 of $20 per collected insufficient check), weekly. The final payment for each month shall be remitted to the City no later than the second business day following the close of the month. Any check and service charge which remains uncollected on the 45th day following the Agency's receipt of the check from the City's depository bank will be forwarded promptly to the City, and the agency is relieved of all responsibility and rights of collection of the face amount and the service charge. On a weekly basis, the City will remit to Agency, an amount equal to reimbursement of advance collections on those uncollectible checks. If the agency receives monies on the check following the return of the check to the City, the Agency shall forward all monies received for check and service charge to the City within five days. All fees are on a contingency basis. Lubbock, Power and Light(LP&L) will have first right of collection on all checks and drafts remitted to LP&L. LP&L will send an LP&L employee to the Collection Agency on a daily basis and pull any checks and drafts which will be classified as unworkable to the agency. No service charge will be assigned to unworkable checks. Advance collections on Checks and/or drafts classified as unworkable to the agency will be reimbursed to Agency by City on a weekly basis. 2. Corporation agrees to perform collections on all items other than insufficient checks, upon the terms stated in Exhibit "A" RFP 12618, which is attached herewith and made a part hereof for all purposes, submitted to Corporation by the City, and the Corporation's response, which is attached hereto as Exhibit B and made a part hereof for all purposes. 3. The term of this Agreement shall be two (2) years commencing on October 1, 1993 and ending on September 30, 1995. However the City shall have the option to renew this agreement under the same terms and conditions for the term of one additional year from date of its expiration by giving written notice to Corporation of its intent to do so 30 days prior to the date of termination. 4. Corporation shall keep full and complete records of its progress in a form agreeable to City, which form shall be approved by City prior to commencement of collection activities and shall make such records available to City or City Internal Auditor, if requested to do so by the City. 5. Corporation shall not assign any interest in this Agreement and shall not transfer any interest in this Agreement, whatsoever, without prior consent of the City. 6. Corporation shall save and hold harmless the City from all suits, actions or claims brought on account of any activities engaged in by Corporation pursuant to this Agreement. 7. City shall assist Corporation by making available to Corporation all records and data on file that will assist Corporation in the discharge of its duties under this Agreement. 8. If the Corporation is not successful in collecting items referred for collection by the forty-fifth (45) day, the items will be forwarded to the City and the Corporation relinquishes all rights to collection and service charges. Further, the Corporation shall PURGE such items and service fees from its Credit records system and hold all parties harmless. 9. Once a week the Corporation shall remit two checks to the City. One check will be the net amount of service charges collected, less the collection charge, for insufficient check collections. The second check will be any and all collections for items other than insufficient checks. 10. Corporation agrees that it will comply with all laws pertaining to collections of this nature, both federal and state. 11. This Agreement may be terminated by either party during its course by delivery upon thirty (30) days written notice of such notice to the other party at the following addresses: CITY OF LUBBOCK COLLECTECH DIVERSIFIED, INC. P.O. BOX 2000 P.O. BOX 12027 Lubbock, Texas 79457 Lubbock, Texas 79452 this, .Lst..j&V of November, 1993. 10 WA Affr f _ ,, !• /� �lGefferal Kan4er ATTEST: Betty Wohhsoin,Ity ecretary APPROVED AS TO CONTENT: Robert assenga-1 e, Assistant City Manager for Financial Services APPROVED AS TO FORM: za& ' A .S VandlVer Assistant City Attorney ATTEST: re ary