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Home My WebLink AboutResolution - 219 - Agreement - National Revenue Corporation - Debt Collection Services - 07_26_1979RESO #219 - 7/26/79 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 Debt Collection Agreement between the City of Lubbock and National Revenue Corporation 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 26th day of July ,1979. UIRK WEST, MAYOR ATTEST: 4 Evelyn Ga fga, Cit tary-Treasurer -,APPROVED-AS TO CONTENT: W, /ay& eona. xwell, Util Office MaAager APPROVED AS TO FORM: David W. Reagan, Ass st n ty Attorney TIED TO RESO #219 - 7/26/79 Cr� DEBT TH COLLECTION AGREEMENT Between E CITY OF LUBBOCK and NATIONAL REVENUE CORPORATION This Agreement entered into this 26th day of July , 1979, between the City of Lubbock, a home rule municipal corporation, hereinafter called "City", and National Revenue Corporation, with offices located at 2323 Lake Club Drive, in the city of Columbus, Ohio, hereinafter called "Corporation". Witnesseth: 1. Whereas, the City, in providing utility services to certain of its customers, has incurred certain delinquent and overdue debts, obligations, and accounts to pay money arising out of transactions in which the City has provided utility services. 2. Whereas, the Corporation is a foreign corporation to the State of Texas and is authorized to do business in the State of Texas. 3. Whereas, the Corporation is professional and exceptionally knowledgeable in collection techniques of delinquent accounts. 4. Whereas, the City desires to contract with the Corporation to provide a collection service to the City on certain of its delinquent and overdue debts, obligations and accounts to pay money for utility services provided to certain of its customers by the City. Now Therefore, the City and the Corporation do hereby mutually agree as follows: I. A. The Corporation agrees to provide collection services for delinquent and overdue accounts which the City has incurred in providing utility services and has submitted to the Corporation for collection. It is understood and hereby agreed the Corporation will collect delinquent accounts at the following fees or prices for every 100 accounts submitted: $ 0 - $ 50 $ 6.25 per account $ 51 $100 $ 12.50 per account $101 - $200 $ 18.75 per account $201 - $400 $ 37.50 per account $401 - $800 $ 75.00 per account $801 or more $150.00 per account B. Should any one delinquent account submitted to the Corporation by the City remain uncollected after 70 days after the Corporation has received such delinquent account, the City may replace such.delinquent account with another delinquent account without any additional charge, unless skip tracing is involved, in which case the 70 days is increased by the time needed to trace. C. The Corporation will never charge any percentage charges on accounts submitted, but rather all charges are to be made according to the terms set out above, unless City chooses to involve attorneys. D. The Corporation agrees to give written notice to the City of any fee or price changes at least thirty (30) days prior to the effective date of such fee or price change. Any accounts submitted prior to such effective date will not be subject to the said fee or price change. II. It is understood and agreed that all payments made by the debtors on such delinquent and overdue accounts are to be made directly to the City from the debtors and not to the Corporation. Should any payments be inadvertently_ paid to the Corporation by the debtors, such payments are to be immediately paid over to the City. All accounts uncollected after 70 days from the time they are submitted to the Corporation are to be returned and the City may replace such accounts with other accounts according to the provisions of paragraph I, item B.._- IV. The Corporation will not arrange for attorney action to be taken on any accounts submitted to the Corporation by the City, without the prior written consent of City. V. It is understood and agreed that any collection practices of the Corporation on any accounts submitted to it by the City will be strictly in accordance with the Fair Debt Collection Practices Act, 15 U.S.C. §§1692-1692o (Supp. 1979). Vi. The 70 day period which this Agreement provides for the collection of delinquent and overdue accounts submitted to the Corporation by the City, may be extended ,for a period of 20 days by notice in writing by the Corporation delivered to and received by the City before the end of the original 70 day period. Extensions shall be upon the same terms and conditions as the original 70 day period, in accordance with paragraph I, item B. 711. A. The Corporation agrees to indemnify and save harmless the City from and against all adjudicated claims, suits, damages, costs, losses and expenses in any manner resulting from, arising out of, or connected with the collection practices of the Corporation or its employees, for any and all liabilities and obligations incurred due to the negligence of the Corporation, its employees, officers, agents, sub- contractors, or agencies, or the negligent acts or omissions breaches of contract of the Corporation or its employees, officers, agents subcontractors or agencies. B. The Corporation shall not be liable under any part of this Agreement upon a showing that the City or the City's ,representatives failed to provide correct information in transmitting the delinquent and overdue accounts. Vill. If the Corporation shall fail to fulfill in timely and proper manner its obligations under this Agreement, or if the Corporation shall violate any of the covenants, agreements or stipulations of this Agreement, the City shall thereupon have the right to terminate this contract by giving written notice to the Corporation of such termination and specifying the effective date thereof at least 5 days before the effective date of such termination. IX. This Agreement may be terminated by either party without cause upon 30 days prior written notice to the other party. X. The Corporation shall not assign, sell, or transfer any interest in this contract or in any accounts submitted by the City without the prior written consent of the City thereto; provided, however, that claims for money due or to become due to the Corporation under this Agreement may be assigned to a bank, trust, company or other financial institution or to a trustee in bank- ruptcy without such approval. Notice of any such assignment or transfer for such claims for money due or to become due as last set out above shall be furnished to the City immediately. XI. A. The -.Corporation agrees to the money -back -guarantees as comprising Exhibit A which is annexed to and apart of this contract, as applicable to paragraph I, item A. B. This Agreement contains the entire agreement of the parties; and no representations, inducements, or other covenants between the parties not included herein shall be of any force or effect. C. In Witness Whereof, the City and the Corporation have executed this Agreement as of the first day above written. CITY OF LUBBOCK MIM WEST, MAYOR ATTEST ` Evelyn Csaffga "I � City-Secretary-Treas r APPROVEa AS TO CONTENT; Leona 14axwell Utility Office Ma ager APPROVED AS TO FORM: David W. Reagan Assistant City Atto et' NATIONAL REVENUE CORPORATION O es F. M Cormic ice President Marked ATTEST: Sec tart' •Minimum balance varies with system (sae bank)