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HomeMy WebLinkAboutResolution - 2734 - Contract - CDP - Collections - 01/28/1988JCR:js RESOLUTION Resolution #2734 January '28, 19B8 Item 34 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 Contract by and between the City of Lubbock and Credit Data of the Plains for the collection of current and delinquent accounts except insuffi- cient checks, 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: , City Secretary APPROVED AS TO CONTENT: Aoher'AM51s'Ongale, As istant City Manager for Financial Services APPROVED AS TO FORM: C_ Jog C. Ross, Jr., Cit Attorney 28th day of January , 1988. c B. C. McMI N, MAYOR r Resolution #2734 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 Credit Data of the Plains, hereinafter called "Corporation;" WITNESSETH: WHEREAS, the City desires to increase collections of delin- quent assessments and delinquent accounts; and WHEREAS, the Corporation has the requisite expertise to assist in increasing such collections and in advising the City in ways to improve its internal collections processes; and WHEREAS, the City desires to engage the Corporation to collect current and delinquent accounts except insufficient funds checks upon the terms stated in Exhibit "A." NOW THEREFORE, the City and the Corporation mutually agree as follows: 1. Corporation agrees to perform collection services for City and City agrees to compensate Corporation as stated in Exhibit "A", attached herewith. Exhibit "A" consists of the City Request For Proposals and the Corporation's Financial Collections Services Response Forms, which are attached here- with and made a part hereof for all purposes. 2. The term of this Agreement shall be two (2) years commencing on February 1, 1988 and ending on January 31, 1990. 3. The 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 activ- ities. 4. Corporation shall not assign any interest in this Agreement and shall not transfer any interest in this Agree- ment, whatsoever, without prior consent of the City. 5. 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 Agree- ment. 6. City shall assist Corporation by making available to Corporation all records and dates on file that will assist Corporation in the discharge of its duties under this Agree- ment. t 7. Corporation agrees that it will comply with all laws pertaining to collections of this nature, both federal and state. 8. This Agreement may be terminated by either party during its course by delivery of thirty (30) days written no- tice of intent to the other party at the following addresses: CREDIT DATA OF THE PLAINS P. O. Box 3007 Lubbock, Texas 79452 EXECUTED this day of CITY OF LUBBOCK: Z r - � �- -?C, /�' B. C. MCMINN MAYOR ATTEST: Ran tte Boyd, City Se re ry APPROVED AS TO CONTENT: A&d16Lg"—r.A4 Robert Massenga e, Assistant City Manager for Financial Services APPROVED AS TO FORM: L,,, J n C. Ross, Jr.V, City Attorney - 2 - CITY OF LUBBOCK P.O. Box 2000 Lubbock, Texas 79457 , 1988. CREDIT DATA OF THE PLAINS: &L�Z�V VICE-PRESIDENT, COLLECTIONS ATTEST: Secretary CITY OF LUBBOCK REQUEST FOR PROPOSAL FOR FINANCIAL COLLECTION SERVICES RFP #9260 The City of Lubbock is requesting proposals for financial collec- tion services from Account Collection Agencies located within the Lubbock city limits. 1. Sealed Proposals Responses to this request for proposals (RFP) should be submitted in a sealed envelope no later than 2:00 a.m.. January 15 1988, clearly identified as "Proposal for Financial Collection Services", and mailed (or delivered) to: Gene Eads, C.P.M. Purchasing Manager 1625 13th Street, Room L04 Lubbock, Texas 79401 2. Responses All responses must be presented on the standardized "Financial Collection Services Response Form" which has been provided. The city's decision will primarily be based on a comparison of the standardized proposal forms received and accompanying information. The City reserves the right to reject any and all proposals, or to informally negotiate certain points of the final contract with a qualified agency. 3. Questions and Additional Information A proposal conference will be held in the Municipal Building Committee Room at 10:00 a.m.. January 6. 1988. 'At that time, all prospective agencies are invited to request clarification or any additional in- formation necessary to the preparation of their indi- vidual responses. Telephone questions to individuals within the City are not encouraged, but will be per- mitted, with the explicit proviso that any responses thus obtained are not binding on the proposal process or upon the award of the contract. 4. Schedules 1-6-88 Proposal Conference 10:00 a.m., Room 103 Municipal Building, Committee Room. 1-15-88 All proposals must be in the hands of the City Purchasing Department no later than 2:00 p.m. 1-28-88 The City Council will consider the award of the contract. 2-1-88 Anticipated implementation date for con- tract. 5. Selection Criteria The following criteria will be used to evaluate pro- posal responses and to make a recommendation for award to the City Council: a. The completeness of the -response to all required items on the standardized pro- posal forms. b. The proposed cost of collection services. C. The physical convenience of City Officials. d. The experience and continuity of the col- lection Agency personnel who are identi- fied as primary contact personnel. SCOPE OF SERVICES 1. The City currently has approximately 230 uncollectable checks per month to be collected by a Collection agency. The returned checks are forwarded to the collection agency direct from the City's depository bank. The agency will -2- collect the face amount of the check plus an approved ser- vice charge which is added by the City.. The agency will service checks referred by City at the approved rate, per check collected. In the event said service charge is not collected, there will be no charge to City on face amount of check collected. The agency will remit to City the total amount collected once a week. 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. Payments shall consist of two checks. One check will be the face amount of the checks collected. The second check shall be the net amount of the service charges collected less the collection charge. 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 City, and the agency is relieved of all responsibility and rights of collection of the face amount and the service charge. If the agency collects on the check during the 30 - day period following the return of the check to the City, the agency shall have the right to retrieve the check from the City and all responsibilities and rights of collection will be restored to the agency. Lubbock Power and Light (LP&L) will have first right of col- lection 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 some checks and drafts which will be classified as unworkable to the agency. No service charge will be assigned to unworkable checks. _ On the 3rd business day following the end of the month, the agency will furnish the City with the following monthly re- ports. 1. The report of checks in process of collection at beginning of month. 2. The report of checks received from the bank dur- ing the month. 3. The report of checks returned to City as uncol- lectable during the month. -3 4. The report of the checks returned to the City as unworkable during the month. 5. The report of service charge collected during the month. 6. The report of checks collected during the month. 7. The report of checks in process of collections at end of month. In addition to the monthly reports, several reports are re- quired daily or whenever applicable. These include: 1. The report of checks received from the bank. This report should reconcile to the bank charge back slip. 2. The report of the checks returned to the City as unworkable. The agency will notify City and recommend legal action when necessary to affect collection on any specific check. Ap- propriate fee to be paid to the agency will be negotiated on a one to one basis. No legal action will be taken without written approval of the City. 2. The collection agency will perform all normal collection services on overdue accounts owed to LUL on a continuous basis. An overdue account is a final account which is ap- proximately two (2) months old. There are approximately 700 overdue LP&L accounts per month with an average of $215.00. If the collection rate falls below 10% during any two (2) consecutive months, the agreement may be terminated follow- ing which a new agreement must be negotiated. The collection agency shall remit to the City the gross amount of all monies received on City accounts within five (5) working days after the last day of the month. - The agency will bill the City for any fee due the agency on reg- ular monthly statements at the approved rate. The collec- tion agency shall honor requests by the City to withdraw accounts from collection upon the City's request. Once an account has been turned back over to the City, the agency is relieved of all responsibility and rights of collection. ME M The collection agency shall notify LP&L of any account legal expense prior to paying such expense. Account information will be made available to LUL personnel upon request. LP&L will provide data on accounts to be collected via stan- dard EBC DIC 1600 BPI magnetic tape in IBM standard level format. Collection payment information is to be returned to LP&L via the same medium and format. 3.- The collection agency will perform all normal collection services on current and overdue weed mowing charges. The weed mowing charges average $40.00 each and there are ap- proximately 2,000 per year. Current account collection shall consist of a ten (10) day letter statement and a twenty (20) day collection letter. The twenty (20) day col- lection letter shall be sent by certified mail return re- ceipt requested. All current collection procedures will be done under City of Lubbock letterhead and the Assistant City Manager for Financial Services must approve all form let- ters. Any account which remains uncollected on the 60th day fol-. lowing the agency's receipt of the account from the City staff will be returned promptly to the City. All correspon- dence which is vital to the City's ability to file liens on the property must be returned to the City. These documents will include: Copies of Letters Sent Copies of Letters Returned Notes of Response by Telephone Returned Receipts for Certified Mail (Green Cards) ' Account information will be made available to City personnel upon request. The collection agency shall remit to the appropriate city department the gross amount of all monies received on City accounts within 5 working days after the last day of each month. Each payment must identify the amount applicable to Community Development and the amount applicable to the City General Fund. 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 the collection upon the -5- City's request. 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 collects on the account during the 30 -day period following the return of the account to the City, all responsibilities and rights of col- lection will be restored to the agency. The collection agency shall notify the City of any account legal expense prior to incurring such expense. 4. The collection agency will perform all normal collection services on current and overdue paving assessments. There are approximately 1,000 Paving Assessment accounts averaging •approximately $1,000 each set up on yearly installments. The installment billing shall consist of a statement sent at least thirty (30) days prior to the due date. All collec- tion procedures will be done under City of Lubbock letter- head and the Assistant City Manager for Financial Services must approve all form letters. Paving assessment accounts are considered delinquent on the 31st day following the due date. The collection agency shall remit to the appropriate City department the gross amount of all monies received on city accounts within five (5) working days after the last day of each 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 upon the City's request. 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 collects on the _ account during the thirty (30) day period following the re- turn of the account to the City, all responsibilities and rights of collection will be restored to the agency. -6- 5. The collection agency will perform all normal collection services on other current and overdue accounts which the City desires handled by a collection agency. Some examples .of these accounts would include but not be limited to the following: Paving Assessments Water and Sewer Pro Rata Grave Site Purchases Accounts Receivable Civic Center Accounts Receivable Any account which remains uncollected on'the 60th day following the agency's receipt of the account from the City staff will be returned promptly to the City. All correspon- dence which is vital to the City's ability to file liens on the property must be returned to the City. These documents will include: Copies of Letters Sent Copies of Letters Returned Notes of Response by Telephone All current collection procedures will be done under City of Lubbock letterhead and the Assistant City Manager for finan- cial Services must approve all form letters. The collection agency shall remit to the appropriate City department the gross amount of all monies received on City accounts within 5 working days after the last day of each month. The agency will bill the City for any fee due the agency on regular monthly statements. All fees will be on a contingency fee basis. The agency shall honor requests by . the City to.withdraw accounts from collection upon the City's request. Once an account has been turned back over to the City, the agency is relieved of all responsibility and rights of collection. The collection agency shall no- tify the City of any account legal expense prior to incur- ring such expense. Account information will be made avail- able to City personnel upon request. 6. The collection agency shall procure, pay for, and maintain during the term of the contract, with a company authorized to do business in the State of Texas and acceptable to the City, the following minimum insurance coverage listed below. -7- Substantial compliance on insurance coverage will be consid- ered acceptable. (1) Worker's Compensation with liability limits of not less than $100,000. (2) Comprehensive Automobile Liability covering liability on owned or hired automobile with minimum limits of $250,000/$500,000 bodily injury and $100,000 property damage. (3) Comprehensive General Liability with limits of not less than $500,000 bodily injury per occurrence and $100,000 property damage per occurrence. (4) $1.000.000 Umbrella Liability Coveraqe - such coverage should follow the form of underlying coverage. (5) Professional Liability Insurance including errors and omissions with minimum aggregate limits of $1,000,000 per occurrence. (6) Blanket Crime Insurance with limits of not less than $5,000 for loss of money or securities due to dishon- esty of employees, robbery, or theft, counterfeit paper or currency, or forgery of outgoing instruments. In addition, a separate policy with limits of not less than $145,000 which covers employee infidelity and de- positors forgery. (7) Valuable Papers which cover lass or destruction of valuable papers,, notes, and records at the premises, in transit, and temporarily at the premises of others with limits of not less than $200,000. 7. The City reserves the right to enter into contractual agree- ments with the agencies presenting the lowest cost in each area of service. Each agency will be asked to sign a con- tractual agreement prior to the presentation to City Council. -8- 91 The City will enter into a signed the collection agency selected fo with an explicit right to renew t tional one-year extension. This by either party during its course days written notice of intent to contractual agreement with r a period of two years, he contract for one addi- agreement may be terminated by delivery of thirty (30) the other party. RFP ,f Addendum #1 to Request for Financial Collection Services Please change the following items on the Request for Proposals for Financial Collection Services: Page 3, Item 11, Paragraph 12, Sentence 12. Delete the entire sen- tence. The paragraph will read as follows: Any check and service charge which remains un- collected on the 45th day following the agency's receipt of the check from the City's depository bank will be forwarded promptly to City, and the agency is relieved of all responsibility and rights of collection of the face amount and the service charge. Page 5, Item 120 Paragraph A. This is a strict requirement for award of the contract. No other medium or format will be acceptable. Page 5, Item 13, Paragraph 11. The address and phone number on all form letters will be that of the agency's not the City's. Page 5, Item 13, Paragraph 12. Approximately 15% of the weed - mowing accounts are collected during the 60 -day collection period. Page 5, Item 13, Paragraph 12. The copies of letters sent and copies of letters returned must be carbon copies or reproductions. Page 6, Item 14, Paragraph #1.- The paving assessments are once a year installment payments. The agency must keep the appropriate City staff advised of any and all payment terms agreed upon by the agency and the payee. Page 7, Item 15, Paragraph 11. The Civic Center Accounts Receivable consist mainly of catering accounts. FINANCIAL COLLECTION SERVICES RESPONSE FORM Agency Name Official Submitting (typed): Official Signature: Title of Official: Telephone Number: 1. Rate Schedule: Check Collection - unit price per check Account Collection: Lubbock Power & Light 1. Current Accounts - 30 days or less 2. Accounts - 31 - 60 days _ 61 - 120 days 121 - 180 days $ 181 - year 1 year - 18 months Over 18 months % Account Collection: Weed Mowing unit price per account $ Account Collection: Water & Sewer Pro Rata 1. Current Accounts - 30 days 2. Delinquent Accounts - 31 - 395 days Over 395 days Account Collection: Lot Purchases - Accounts Receivable 1. Current Accounts - 30 days or less $ 2. Accounts - 31 - 60 days 61 - 120 days 121 - 180 days 181 - year 1 year - 18 months Over 18 months $ FINANCIAL COLLECTION SERVICES RESPONSE FORM Page'2 Account Collection: Paving Assessments , Installment Billings Current Accounts (Less than 31 days overdue) g Delinquent Accounts 31 to 395 days g Over 395 days Civic Center: Accounts Receivable Current Accounts (Less than 31 days overdue) g Delinquent Accounts 31 to 395 days Over 395 days Additional Information Rea fired: (Please attach additional information to this response form). 1. A detailed account of past history as a Collection Agency and include any information on similar accounts your agency handles. 2. A clearly defined outline of all collection procedures. 3. A list of key personnel of the Agency, a job description, and a brief summary of their professional experience. 4. All pertinent agency information, i.e. annual financial reports of the agency and insurance information. 5. All pertinent bonding information. FINANCIAL COLLECTION SERVICES RESPONSE FORM Agency Name Official Submitting (typed): Official Signature: Title of Official: Telephone Number: 1. Rate Schedule.- Check chedule: C'REDiT DATA OF THE PLAINS Gail Hitt General Manager 795-3181 Check Collection - unit price per check Account Collection: Lubbock Power & Light 1. Current Accounts - 30 days or less 10 % 2. Accounts - 31 - 60 days 20 % 61 - 120 days 30 % 121 - 180 days 30----___ % 181 - year 30-- 01 I year - 18 months 30 S Over 18 months 30 Account Collection: Weed Mowing unit price per account $ 4.52__% Account Collection: Water & Sewer Pro Rata 1. Current Accounts - 30 days 5 % 2. Delinquent Accounts - 31 - 395 days 10 % Over 395 days 20 Account Collection: Lot Purchases - Accounts Receivable 1. Current Accounts - 30 days or less __ 5 % 2. Accounts - 31 - 60 days 10 - % 61 - 120 days 10 % 121 - 180 days 15 181 - year 15 1 year - 18 months 15 Over 18 months 15 FINANCIAL COLLECTION SERVICES RESPONSE FORM Page 2 Account Collection: Paving Assessments , Installment Billings Current Accounts (Less than 31 days overdue) 10 g Delinquent Accounts 31 to 395 days 10 % Over 395 days 10 Civic Center: Accounts Receivable Current Accounts (Less than 31 days overdue) 10 Delinquent Accounts 31 to 395 days 15 Over 395 days 15 - % Additional Information -Required: (Please attach additional information to this response form). 1. A detailed account of past history as a Collection Agency and include any information on similar accounts your agency handles. 2. A clearly defined outline of all collection procedures. 3. A list of key personnel of the Agency, a Job description, and a brief summary of their professional experience. 4. All pertinent agency information, I.e. - annual financial reports of the agency and insurance information. 5: All pertinent bonding information. credit data of the plains PROPOSAL FOR CITY OF LUBBOCK FINANCIAL.COLLECTION SERVICES Credit Data of the Plains proudly serves West Texas from the Panhandle to the Permian Basin. Credit Data has been in business since 1959 and is a member of the American Collectors Association, the largest collection association in the world. Credit Data of the Plains not only has a local office, it is locally owned. With offices in Midland(Credit Data of the Permian Basin) and Roswell, New Mexico,(Credit Bureau of Roswell), Credit Data of the Plains is proud to have its home office located in Lubbock, Texas. Credit Data maintains an in-house computerized collection system. This system is adapted to meet our needs in the collection industry. Since Credit Data has computer programmers on staff, we can offer additional processing services. Every month Credit Data does tape to micro conversions for financial institutions. Credit Data can accept data from 1600 BPI magnetic tape or diskettes, and can return information via the same medium. All of the tapes are processed in-house by staff programmers. In addition to conventional collections, Credit Data of the Plains is a TRW affiliated credit bureau. With its TRW affiliation, Credit Data can report collection activity into the debtor's credit files, and more effectively locate debtors which have moved with a forwarding address. Through TRW, the largest credit reporting network in the world, Credit Data can expose its collection experience to a larger coverage area than any other agency in Lubbock. Credit Data is the first collection agency in the state of P.O. BOX 3007 LUBBOCK, TX 79452 � credit data of the plains � Texas to be affiliated with Sklar Financial Control Corporation. As a Sklar Financial Associate, Credit Data provides services and products that are seldom offered by other agencies, such as consulting in credit and collections, in-house training, public seminars, pre -collection, and collectemps. With this affiliation, Credit Data now offers Lubbock business and medical professionals a new concept in financial account recovery --helping them avoid using our services as much as possible. Credit Data is currently developing the software for the Utilities Credit Network. This is a credit verif iciation and collection system developed exclusively for public utility companies. The Utilities Credit Network is designed to serve any size utility by giving that utility the ability to verify each applicant's previous utility experience, while offering them the most sophisticated collection and credit reporting system on the market today. Texas Electric has more than doubled their collections since our Midland office has taken over their collections. COLLECTION PROCEDURES Collections shall be performed in compliance with all applicable Federal, State, and Local laws and requirements. All personnel are fully trained to collect by the Fair Credit Reporting Act(FCRP), and the Fair Debt Collection Practices Act(FDCPA) standards. The collection procedures are outlined as follows: 1. All accounts are acknowledged upon the day received by Credit Data. 2. Upon entry into the computerized system, a first notice is mailed to the debtor. The statement demands full and immediate payment. The first notice also discloses the legal rights of the consumer as required by the FDCPA. 3. After the first notice is sent, subsequent mailings and phone collections begin. Unlike competitor systems that P.O. BOX 3007 LUBBOCK, TX 79452 � credit data of the plains consist of one or two form notices, Credit Data uses a series of personalized notifications. Several of the notices and letters used are for special applications such as broken promises, broken payment schedules, and itemizations. 4. Qualified collectors contact the debtors by telephone to encourage full payment, or if necessary to arrange suitable payment plans. Each phone collection is handled with courtesy; however the permanent damage caused by non-payment is stressed and in stubborn cases, the possibility of legal action is mentioned and sometimes recommended. 5. Credit Data will provide a grace period for payment arrangements to be made by the debtor. If no arrangements are made in 30 days, then the account will be reported to the TRW credit reporting network. It is proven that debtors will respond more readily if it is known that it may affect their credit rating if payment is not made. 6. All cancelled accounts and bankruptcies are recorded in the computer under the proper status. Reports on these accounts can be provided at any time upon request. 7. Skip tracing on mail returns is handled by several methods. Collectors try to locate the debtors through any listed phone numbers and through their employer and creditors. They are also listed with TRW as a subscriber cannot locate. Through TRW's national network, Credit Data is informed whenever there is a new address on the debtor. 8. No legal action will be taken without written consent of the City of Lubbock. KEY PERSONNEL Jim Hitt, President, coordinates all phases of the agency and particularily the data processing. Jim began his career with Kerr-McGee Oil Company as a systems analyst. Jim has a wide range of experience in data processing. He P.O. BOX 3007 LUBBOCK, TX 79452 ("A' ik� � credit data of the plains � has written several software packages including a utilities billing package currently used by the City of Idalou. Jim consults with financial institutions and businesses about their computer hardware and software needs. Every month Jim converts data from tape to micro diskettes to allow the data to be accessible through Symphony, Lotus 1,2,3, or DBase III. Jim works closely with automated customers to ensure the proper transfer of their data. Jim annually works with the United Way Campaign. In 1983, Jim was named "Man of the Year" by the Slaton Chamber of Commerce. Gail Hitt, serves as general manager of all offices and satellite bureaus. Gail has worked with agencies throughout West Texas in training them about credit and collections. She directs the operations of all offices. Gail has trained and worked with 11 credit bureaus in this area. Gail is a member of Credit Professionals and the West Texas Apartment Association. Bob Blume, Account Executive, graduated from LCU in 1987 with a Bachelor of Science in Business Communications. While attending LCU he worked for Texas Instruments as a reporter for their site newspaper. His college studies emphasized marketing and public relations. Bob directs the marketing and public relations department for Credit Data. Bob is a member of the LISD vocational education task force. Staci Harkness, Office Manager, graduated from LCU in 1986 with a Bachelor of Science in Education and a Bachelor of Arts in General Studies. She represented the state of Texas in the Outstanding Young Women of America for 1986-87. She began as a collection specialist with Credit Data in April, 1985. Since that time she has attended seminars and classes in collections. Staci is in charge of computer entry and the daily functions of the office. INSURANCE COVERAGE Insurance coverages meeting all the required criteria are P.O. BOX 3007 LUBBOCK, TX 79452 �' :&� � credit data of the plains J carried through the American Collectors Association, and Tom Cunnius Insurance Agency. Upon awarding of the bid, certificates of insurance can be sent to the City of Lubbock. A bond will be put into force upon execution of the contract with the City of Lubbock. REFERENCES Texas Electric 1700 W Wall Midland,Tx (915)683-4651 Gas Company of New Mexico 420 N Richardson Rosweil,NM (505)623-1840 Eastern New Mexico Medical Center 405 W Country Club Rd Roswell, NM (505)622-8170 P.O. BOX 3007 LUBBOCK, TX 79452 CREDIT DATA OF THE PLAINS STATEMENT OF ASSETS AND LIABILITIES INCOME TAX BASIS SEPTEMBER 30, 1987 i 4 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Current Portion of Long Term Debt $ 5,933 TOTAL CURRENT LIABILITIES 5,933 Long --Term Debt -0- TOTAL LIABILITIES 5,933 SHAREHOLDERS' EQUITY Common Stock 1,000 Retained Earnings 5,235 TOTAL SHAREHOLDERS' EQUITY 6,235 TOTAL LIABILITIES AND SHAREHOLDERS' $12,168 CREDIT DATA OF THE PLAINS STATEMENT OF ASSETS AND LIABILITIES INCOME TAX'BASIS SEPTEMBER 30, 1987 ASSETS CURRENT ASSETS Cash in Bank $ 1,479 TOTAL CURRENT ASSETS. 1,479. FIXED ASSETS Office Equipment 29,037 Furniture and Fixtures 7,704 36,741 Less: Accumulated Depreciation (32,270) NET FIXED ASSETS 4,471 OTHER ASSETS Intangibles 6,218 TOTAL OTHER ASSETS 6,218• TOTAL ASSETS $12,168 0