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HomeMy WebLinkAboutResolution - 2009-R0489 - Contract - Collectech Diversified Inc.- Financial Collection Services - 11/05/2009Resolution No. 2009-80489 November 5, 2009 Item No. 5.7 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, Contract No. 9250 for an Agreement for Financial Collection Services pursuant to RFP 09 -092 -DT, by and between the City of Lubbock and Collectech Diversified, Inc. dba CDI of Lubbock, Texas, and related documents. Said Contract is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council this 5th day of November , 2009. TOM MARTIN, MAYOR ATTEST: Rebecc Garza, City Secretary APPROVED AS TO CONTENT: Andy Bure am, Chief Financial Officer APPROVED AS TO FORM: ad Weaver, Assistant City Attorney vw:ccdocs/RES.Contract-Collectech Diversified, Inc. October 21, 2009 Resolution No. 2009—RO489 FMI"a3DI Did 131arX11:iWi►1VIL[rJI:1mrsillP0xGItI[110MDI:VIA, [*Iom RFP 09 -092 -DT CONTRACT #9250 THIS AGREEMENT is made and entered into the 5th day of November , 2009 (the "Effective Date), by and between the City of Lubbock, hereinafter called "City" and Collectech Diversified, Inc., dba CDI of Lubbock, Texas, hereinafter called "Agency" WITNESSETH WHEREAS, the City may have checks and accounts which it may desire an agency to collect from time to time, and whereas, the agency is qualified to collect such unpaid checks and uncollected accounts as may be referred by City; and NOW THEREFORE, the City and the Agency mutually agree as follows: I. The Agency agrees to collect insufficient funds checks as follows: Checks with insufficient funds shall be forwarded to the Agency directly from the City's depository bank and the amount will be charged back by the bank against the City of Lubbock Clearing Bank Account. The Agency separates the municipal court checks and return to the City so that warrants can be issued against the insufficient funds. The remaining checks are processed by the Agency. The City will communicate to the Agency the total amount of insufficient checks weekly. At that time, the Agency will remit to the City an advance of collections on those insufficient checks. As collections are made, the Agency will remit to the City the City's portion of the service charges on collected insufficient checks 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 reimburse the Agency for advances on these 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 three (3) days. All fees are on a contingency basis. The Agency agrees to perform collections on all items other than insufficient checks as specified in Exhibit A, attached hereto, and made a part of this Agreement. The Agency agrees to obtain insurance coverage as specified in Exhibit B, attached hereto, and made part of this Agreement. The contract shall be for a term of three (3) years, said date of term beginning upon City Council date of formal approval. The City and Agency may, upon written mutual consent, extend the contract for two (2) additional one-year periods. The Agency shall keep full and complete records of its progress in a form agreeable to the 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. The Agency shall not assign any interest in this Agreement and shall not transfer any interest in the Agreement, whatsoever, without prior consent of the City. 6. The Agency 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. City shall assist the Agency by making available to Agency all records and data on file that will assist Agency in the discharge of it's duties under this Agreement. Once a week the Agency shall remit two (2) 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. 9. The Agency agrees that it will comply with all laws pertaining to collections of this nature, both federal and state. 10. 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 1625 13'x' Street, Room 204 Lubbock, TX 79401 CITY OF LUBBOCK Tom Martin, Mayor ATTEST Rebech Garza, City Secretary APPROVED AS TO CONTENT: (X a m nt Pamela Moon, Director of Accounting APP V AS TO FORM: Assistant City Attorney CDI P.O. Box 12027 Lubbock, TX 79452 2 EXHIBIT A Account Collection and Rate Schedule ACCOUNT COLLECTION LP&L Accounts Resolution No. 2009—R0489 The Agency will perform all normal collection services on overdue accounts owed to LP&L on a continuous basis. An overdue account is a final (inactive) account which is approximately 45 days old. All written collection procedures shall be prepared under the Agency's letterhead, name, mailing address, physical address, and phone number. The LP&L Director of Finance or authorized designee must approve all written communications. Current volume consists of approximately 530 overdue LP&L accounts per month with an average of $345 per account. If the collection rate falls below 10% during any 2 consecutive months, the agreement may be terminated. ii The Agency shall remit to LP&L the gross amount of all monies received on LP&L accounts once per month. The Agency will bill LP&L monthly for any service fee due by LP&L. iii The Agency shall honor requests by LP&L to withdraw accounts from collection upon LP&L's request. Once an account has been turned back over to LP&L, the Agency is relieved of all responsibility and rights of collection. iv The Agency shall notify LP&L of any legal expense prior to incurring such expense. No legal action shall be .taken without written approval from the LP&L Director of Finance or authorized designee. Account information shall be made available to LP&L personnel upon request. 2. Water and Sewer Pro -Rata Accounts - Accounting The Agency will perform all normal collection services on current and overdue water and sewer pro -rata accounts. Current volume is approximately 125 accounts averaging $350. New accounts are rare. The installment billing shall consist of a statement sent at least once a month prior to the due date. All written collection procedures shall be prepared under the Agency's letterhead, name, mailing address, physical address and phone number. The Director of Accounting must approve all written communications. Water and sewer pro -rata accounts are considered delinquent on the 10th day following the due date. ii The Agency shall remit to the City the gross amount of all monies received on City accounts once per month. The Agency will bill the City for any fee due the Agency on regular monthly statements. All fees will be on a contingency basis. The Agency shall honor requests by the City to withdraw accounts from collection. The Agency must keep the appropriate City personnel advised of any and all payment terms agreed upon by the Agency and the Payee. Once an account has been turned back over to the City, the Agency is relieved of all responsibility and rights of collection. If the Agency receives monies on the account following the return of the account to the City, all monies will be forwarded to the City within 3 days. 3. Pavinp- — AccountinS The Agency will perform all normal collection services on overdue paving accounts. Current volume is approximately 330 accounts averaging $680. The majorities of these accounts are delinquent and are no longer receiving installment billings. If the City resumes installment billings, the installment billing shall consist of a statement sent at least once a month prior to the due date. All written collection procedures shall be prepared under the Agency's letterhead, name, mailing address, physical address and phone number. The Director of Accounting must approve all written communications. Paving accounts are considered delinquent on the 10th day following the due date. ii The Agency shall remit to the City the gross amount of all monies received on City accounts once per month. The Agency will bill the City for any fee due the Agency on regular monthly statements. All fees will be on a contingency basis. The Agency shall honor requests by the City to withdraw accounts from collection. The Agency must keep the appropriate City personnel advised of any and all payment terms agreed upon by the Agency and the Payee. Once an account has been turned back over to the City, the Agency is relieved of all responsibility and rights of collection. If the Agency receives monies on the account following the return of the account to the City, all monies will be forwarded to the City within 3 days. 4. Civic Center/Auditorium-Coliseum/Civic Lubbock, Inc. The Agency will perform all normal collection services on overdue Civic Center and Auditorium -Coliseum accounts which the City desires handled by a collection Agency. Civic Center and Auditorium -Coliseum accounts consist mainly of rent accounts. The Agency may also collect on overdue accounts for Civic Lubbock, Inc. (CLI), a component unit of the City. These accounts consists mainly food, beverage, and contracted labor charges that are incurred as additional charges for rental of events at City facilities. The current volume of delinquent accounts is approximately S accounts at $1,000. ii All written collection procedures shall be prepared under the Agency's letterhead, name, mailing address, physical address, and phone number. iii The Agency shall keep separate records for City accounts and CLI accounts. The Agency shall remit to the City the gross amount of all monies received on City and CLI accounts once per week. The Agency may bill the City and CLI monthly. All fees will be on a contingency fee basis. The Agency shall honor requests by the City to withdraw accounts from collection. Once an account has been turned back over to the City, the Agency is relieved of all responsibility and rights of collection and monies received on an account that has been withdrawn will be forwarded to the City within 3 days. The Agency shall notify the City of any legal expense prior to incurring such expense. No legal action shall be taken without written approval from the Director of Accounting. Account Information shall be made available to City personnel upon request. 0 5. hate Schedule Check collection (unit price per check + service charge paid) $20.00 Detained from collected $30.00 service charge Account collection (percentage per account) Lubbock Power & Light 22% contingency fee Water and Sewer Pro -rata (percentage per account) 9% contingency fee Paving (percentage per account ) 9% contingency fee Civic Center/Auditorium/Coliseum/CLI (percentage per account) 9% contingency fee Resolution No. 2009-RO489 EXHIBIT B Financial Collection Services INSURANCE SECTION A. Prior to the approval of this contract by the City, the Contractor shall furnish a completed Insurance Certificate to the City, which shall be completed by an agent authorized to bind the named underwriter(s) to the coverages, limits, and termination provisions shown thereon, and which shall furnish and contain all required information referenced or indicated thereon. THE CITY SHALL HAVE NO DUTY TO PAY OR PERFORM UNDER THIS CONTRACT UNTIL SUCH CERTIFICATE SHALL HAVE BEEN DELIVERED TO THE CITY. INSURANCE COVERAGE REQUIRED SECTION B. The City reserves the right to review the insurance requirements of this section during the effective period of the contract and to require adjustment of insurance coverages and their limits when deemed necessary and prudent by the City based upon changes in statutory law, court decisions, or the claims history of the industry as well as the Contractor. SECTION C. Subject to the Contractor's right to maintain reasonable deductibles in such amounts as are approved by the City, the Contractor shall obtain and maintain in full force and effect for the duration of this contract, and any extension hereof, at Contractor's sole expense, insurance coverage written by companies approved by the State of Texas and acceptable to the City, in the following type(s) and amount(s): Worker's Compensation - The Contractor shall elect to obtain worker's compensation coverage pursuant to Section 406.002 of the Texas Labor Code. Further, Contractor shall maintain said coverage throughout the term of this Contract and shall comply with all provisions of Title S of the Texas Labor Code to ensure that the Contractor maintains said coverage. Any termination of worker's compensation insurance coverage by contractor or any cancellation or non -renewal of worker's compensation insurance coverage for the Contractor shall be a material breach of this Contract. The contractor may maintain Occupational Accident and Disability Insurance in lieu of Workers' Compensation. In either event, the policy must be endorsed to include a wavier of subrogation in favor of the CITY OF LUBBOCK. The Contractor shall also provide to the CITY OF LUBBOCK proof of Employers' Liability in an amount no less than $300,000. Commercial General (public) Liability — Contractor's insurance shall contain broad form contractual liability with a combined single limit of a minimum of $300,000 each occurrence and in the aggregate and shall include the following: Products and completed operations Personal Injury and Advertising Injury Contractual Liability Other — Crime Policy for: Employee Dishonesty Theft, Disappearance, or Destruction Computer Fraud with Wire Fraud ADDITIONAL POLICY ENDORSEMENTS The City shall be entitled, upon request, and without expense, to receive copies of the policies and all endorsements thereto and may make any reasonable request for deletion, revision, or modification of particular policy terms, conditions, limitations, or exclusions (except where policy provisions are established by law or regulation binding upon either of the parties hereto or the underwriter of any of such policies). Upon such request by the City, the Contractor shall exercise reasonable efforts to accomplish such changes in policy coverages, and shall pay the cost thereof. REQUIRED PROVISIONS The Contractor agrees that with respect to the above required insurance, all insurance contracts and certificate(s) of insurance will contain and state, in writing, on the certificate or its attachment, the following required provisions: a. Name the City of Lubbock and its officers, employees, and elected representatives as primary additional insured's, (as the interest of each insured may appear) as to all applicable coverage; b. Provide for 30 days notice to the City for cancellation, nonrenewal, or material change; c. Provide for notice to the City at the address shown below by registered mail; d. The Contractor agrees to waive subrogation against the City of Lubbock, its officers, employees, and elected representatives for injuries, including death, property damage, or any other loss to the extent same may be covered by the proceeds of insurance; e. Provide that all provisions of this contract concerning liability, duty, and standard of care together with the indemnification provision, shall be underwritten by contractual liability coverage sufficient to include such obligations within applicable policies. f. All copies of the Certificates of Insurance shall reference the project name or bid number for which the insurance is being supplied. NOTICES The Contractor shall notify the City in the event of any change in coverage and shall give such notices not less than 30 days prior the change, which notice must be accompanied by a replacement CERTIFICATE OF INSURANCE. All notices shall be given to the City at the following address: Marta Alvarez- Purchasing Manager City of Lubbock 1625 13`h Street, Room 204 Lubbock, Texas 79401 SECTION D. Approval, disapproval, or failure to act by the City regarding any insurance supplied by the Contractor shall not relieve the Contractor of full responsibility or liability for damages and accidents as set forth in the contract documents. Neither shall the bankruptcy, insolvency, or denial of liability by the insurance company exonerate the Contractor from liability. VA