HomeMy WebLinkAboutResolution - 5609 - Professional Services Agreement - Collectech Diversified Inc - Collections - 08_28_1997Resolution No. 5609
Item #24
August 28, 1997
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, and any associated documents, which
Agreement 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 28th day of August ,
1997.
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ATTEST:
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Kay a Darnell, City Secretary
APPROVED AS TO CONTENT:
Betsy Bucy, Finance Manager
APPROVED AS TO FORM:
I
ald G. Vandiver
First Assistant City Attorney
DGV:gs/ccdocs/A-Colct.res
August 18, 1997
Resolution No.5609
Item #24
August 28, 1997
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 Corporation 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 ($7.75) of $25 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 of those uncollectable 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 three 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 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 and library collection, upon the terms stated in Exhibit "A" RFP 97096,
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.
The term of this Agreement shall be three (3) years commencing on September 1,
1997, and ending on August 31, 2000. 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 thirty (30) days prior to the date of termination. "This
Agreement is whole or in part with the mutual consent of the City and the
Agency," from RFP II 5 Contract Term.
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 engage din 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
EXECUTED this 28th day of August , 1997.
CITY OF LUBBOCK
ATTEST:
a e Darnell, City Secret
APPROVED AS TO CONTENT:
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Betsy Bucy, Finance Manager
APPROVED AS TO FORM:
ald G. Vandiver, First sistant
City Attorney
DGV:gslccdocs\COLLECT.DOC
August 18, 1997
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Ge ral Manager
ATTEST:
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