HomeMy WebLinkAboutResolution - 2515 - Agreement - Transword Systems Inc - Financial Collecion Services - 01/22/1987Prepared by Legal Department for City Council
Meeting of January 22, 1987
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Resolution #2515
January 22, 1987
Item #31
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 Transworld Sys-
tems, 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 22n_d_ day of January , 1987.
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B. •C. MCMINN, MAYOR
ATTEST:
Ranett oyd, City Secretary
APPROVED AS TO CONTENT:
obert Massengale, As istant City
Manager for Financial Services
APPROVED AS TO FORM:
Miche Ye Hart, Assistant City Attorney
S
s
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 Transworld Systems,
Inc., 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 as-
sist in increasing such collections; and
WHEREAS, the City desires to engage the Corporation to col-
lect current and delinquent Funeral Home -Accounts Receivables and
current and delinquent Lot Purchases -Accounts Receivables 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 Finan-
cial Collections Services Response Forms, which are attached
herewith and made a part hereof for all purposes.
2. The term of this Agreement shall be one (1) year
commencing on February 1, 1987 and ending on January 31,
1988.
3. The Corporation shall keep full and complete re-
cords of its progress in a form agreeable to City, which
form shall be approved by City pri or_.,to commencement of col-
lec�ion activities.
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 as-
sist Corporation in the discharge of its duties under this
Agreement.
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
notice of intent to the other party at the following ad-
dresses:
TRANSWORLD SYSTEMS, INC.: CITY OF LUBBOCK:
12740 Hillcrest Rd., Suite 215 P.O. Box 2000
Dallas, Texas 75230 Lubbock, Texas 79457
EXECUTED this day of F'�[3 1987.
CITY OF LUBBOCK TRANSWORLD SYSTEMS, INC.
B. C. McMINN, MAYOR PRESIDENT
ATTEST:
C
Ranett oyd, City Secre ry
APPROVED AS TO CONTENT:
Robert Massengale,-,'A'ssistant
City Manager
APPROVED AS TO FORM:
Mic ele Hart, Assistant City
Attorney
ATTEST:
Secretary
- 2 -
V
CITY OF LUBBOCK
REQUEST FOR PROPOSAL FOR FINANCIAL COLLECTION SERVICES
RFP #9172
The City of Lubbock is requesting proposals for financial collection 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 p.m. on December 8, 1986,
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
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.
A proposal conference will be held in the Municipal Building
Committee Room at 10:00 a.m. on December 1, 1986. At that time, all
prospective agencies are Invited to request any additional
clarification or information necessary to the preparation of their
individual responses. Telephone questions to individuals within the
City are not encouraged, but will be permitted, with the gxplicii
Q that any responses -thus obtained are not binding on the
proposal process or upon the award of the contract.
4, Schedule:
Proposal Conference 10:00 a.m., December 1, 1986, Room 103
Municipal Building, Committee Room.
All proposals must be in the hands of the City Purchasing
Department no later than 2:00 p.m., December 8, 1986.
The City Council will consider the award of the contract on
December 18, 1986.
Implementation date for contract, January 1, 1987.
5. Selection Criteria:
The following criteria will be used to evaluate proposal 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 proposal forms.
b. The proposed cost of collection services.
c. The physical convenience of City Officials.
d. The experience and continuity of the Collection
Agency personnel who are identified 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 Cityfs
depository bank. The agency will collect the face amount of the
check plus an approved service 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.charges.
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
(2)
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 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 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 reports.
1. The report of checks in process of collection at beginning of
Month.
2. The report of checks received from the bank during the month.-
3.
onth:3. The report of checks returned to City as uncollectabie during
the month.
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 required
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. Appropriate
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 LP&L on a contingency basis. An overdue
account is a final account which is approximately two.(2) months
old. There -are approximately 600 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 is terminated
and anew agreement must be negotiated.
(3)
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 regular monthly statements at the approved
rate. The collection 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 notify LP&L of any account legal expense
prior to paying such expense. Account information will be made
available to LP&L personnel upon request.
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 approximately 3,000 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 collection letter shall be sent by certified mail return receipt
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 letters.
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 correspondence 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
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 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 collection will be restored to the
agency.
The collection agency shall notify the City of any account legal
expense prior to incurring such expense.
(4)
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 collection procedures will be done under City of
Lubbock letterhead 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 return of the
account to the City, all responsibilities and rights of collection
will be restored to the agency.
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:
Water and Sewer Pro Rata
Grave site Purchases Accounts Receivable
Funeral Home Accounts Receivable
There are approximately thirty (30) Funeral Homes accounts
receivable per month at a price ranging from $175.00 to $300.00 and
20 Grave Site accounts receivable per month at an amount from
$225.00 to $500.00.
All current collection procedures will be done under City of Lubbock
letterhead and Assistant City Manager for Financial 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 notify the City of any
account legal expense prior to incurring such expense. Account
information will be made available to City personnel upon request.
(5)
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. Substantial compliance on
insurance coverage will be considered acceptable.
(1) Worker' ComRensation with liability limits of not less than
$100,000.
(2) Compr hensly- Au omobI19 1iabilL4 covering liability on owned
or hired automobile with minimum limits of $250,000/$500,000
bodily Injury and $100,000 property damage.
(3) Comprehensive Dgnerai 1jabllity with limits of not less than
$500,000 bodily injury per occurrence and $100,000 property
damage per occurrence.
(4) $1.000.00_ 0 Umbrella Liability Coveraa - such coverage should
follow the form of underlying coverage.
(5) Professional Libiiity In�N sura= including errors and omissions
with minimum aggregate limits of $1,000,000 per occurrence.
(6) Blan et. Crime Insurance with limits of not less than $5,000 for
loss of money or securities due to dishonesty 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 depositors forgery.
(7) Ya buabi Papers which cover loss of 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 agreements
with the agencies presenting the lowest cost In each area of
service. Each agency will be asked to sign a contractual agreement
prior to the presentation to City Council.
8. The City will enter into a signed contractual agreement with the
collection agency selected for a period of one year, with a explicit
right to renew the contract for one additional one-year extension.
This agreement may be terminated.by either party during Its course
by delivery of thirty (30) days written notice of intent to the
other party.
(6)
FINANCIAL COLLECTION SERVICES RESPONSE FORM
1. Rate Sc he ufe•
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
1. Current Accounts - 30 days
or fess
2. Accounts - 31- 60 days %
61-120 days %
121-180,days %
181 -year J
1 year -18 months
Over 18 months %
Account Collection: Water & Sewer Pro Rata
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: Funeral Nome -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
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 %
Account Collection: Paving Assessments
Installment Billings
Current Accounts (Less %
than 31 days overdue)
Delinquent Accounts
31 to 395 days %
Over 395 days %
Additional Information Rew ired: (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.
TRANSWORLD SYSTEMS, INC.
12740 Hillcrest Road Suite 215
Dallas, Texas 75230
(214) 456-9202
City of Lubbock
Attention: Gene Eads
1625 13th Street Room 104
Lubbock, TX 79401
Dear Gene:
Thank you for the courtesy of your time during our recent
discussion. As you requested, I would like to place before
City of Lubbock a proposal for recovering your delinquent
accounts and bad checks at Just a fraction of the cost ever
before thought possible.
Today more than ever, the credit grantor is victimized by the
credit criminal. New state and federal laws, plus pro -consumer
court decisions, have given the debtor more avenues of escape.
The new law also makes a business or professional person liable
for violations of a highly complicated set of rules that govern
his internal colleciion procedures. Without any personal
involvement a business or professional person now faces the
potential cost of a legal defense, damages, and hefty fines.
Transworld Systems recognizes this problem and has developed a
system which offers the perfect solution.
Obviously, your present credit management procedures include an
effective billing and in-house follow up system. However,
statistics show that in-house billing procedures lose 60% of
their impact after the 90th day. This, combined with the
depreciation of profit dollars which remain uncollected,
represents a tremendous investment of time and money which could
be channeled into more profitable directions. Through the
application of Transworld's flat rate collection service, City of
Lubbock can enjoy a dramatic reduction in your internal billing
and collection cost. You will also see a marked cash flow
increase and a substantial savings as a result of not having to
pay a percentage to a collection agency or an attorney.
Transworld Systems is the 'Largest company in the United States
specializing in collecting delinquent accounts and bad checks.
Because we are the largest we can collect these accounts for a
flat fee of LESS THAN $5.00 PER ACCOUNT regardless of size or
location. There are absolutely no other charges. T.S.I. is
currently collecting accounts for over 30,000 businesses, over
125 of which are Fortune 500 companies. We also collect accounts
for over 10,000 medical practices and hospitals nationwide.
T.S.I. has built -tts reputation on the ability to collect slow
paying or delinquent accounts for a flat fee, less than $5.00 per
account without disturbing customer relationships.
Exhibit A
The Transworld system is extremely simple to utilize. If a
person can write a check, they can use the I - S. 1. service.
i ra
order to initiate collection activity on an account, simply fill
out the four-part transmittal form. Send only the white copy to
the computer center. For your convenience, this form may be
reversed and placed in a window erivelope. Within 46 hours after
receipt of this form, T.S.I. will initiate collection procedures.
Accounts may also be submitted via data transmission, tape or
hard copy with prior approval.
Each time the debtor is contacted he is instructed to pay the
money directly to City of Lubbock. If the debtor pays the
account in full, simply check the box "Cancel/Paid in Full". You
may also check the box marked "Send Thank You Letter", and we
will send a thank you letter to the debtor (sample enclosed).
If your debtor contacts you and makes Satisfactory payment
arrangements, and after you receive the first payment as agreed,
you may suspend the T.S.I. service by checking the box r-aarked
-3uspend/Satisfactory Arrangements Made". Should your debtor
fail to keep his promise, You Should reinstate the service
indicating the new balance and T.S.I. will resume the collection
process for no additional charge provided that this was done
within 60 days of suspension of the account.
Last year T. S. 1. co I I ect ed '156% of a I I account S ass i fined at a cost
of 7 cents per dollar collected. This certainly represents a
substantial savings when compared to a conventional collection
agency which, in the same period of time, recovered an average of
271 of all accounts assigned at an average collection cost of 41
cents per dollar collected.
It is logical to expect a small residue of unresponsive accounts,
and we will suggest alternatives, i.e.% transferring these
-Accounts to our C.M.S. intensive collection division where legal
action can be instituted. Our C.M.S. division can provide
in-depth collection service, including court action on these
debtors, at the standard contingency commission rate. If court
action is warranted, C.M.S. will pay attorney" s• fees, court
costs, and service of process, etc.
If you are 'Like most executives after reading this proposal, you
will still be skeptical regarding the effectiveness of our
service. To assist you in making a decision, I am enclosing a
few of our clients in your industry. I would like to call your
attention to the recovery rate our clients are experiencing and
their total collection cost. I think you will find these figures
interesting.
T.S.I. Offers a Guaranteed System for collecting your delinquent
accounts or bad checks, regardless of the size or location, for a
low flat fee. There are absolutely no other charges.
You Retain Control of Your Accounts. You tell us when to start
collection activity, when to stop, and how you want each account
to be handled, diplomatically or intensively.
T.S. I. Collects Accounts Without Disturbing Client Relationships.
Liability Protection. T.S.I. indemnifies City of Lubbock from
and against any losses related to our attempts to collect
accounts assigned by your company. Considering state and federal
laws, this liability protection is extremely important.
T.S.I. Works Each Account Thoroughly and systematically for
approximately two and a half months.
Attorney Contact. We make. every effort to collect each account
assigned. If we have not collected an account within 45 days,
the account is forwarded to our corporate attorneys who will
contact your debtor and advise him of his legal responsibilities.
Complete Skip Tracing Service. I -F- an account proves to be a
skip, it may be transferred, at a contingency rate, to our C.M.S.
intensive collection division which maintains a complete skip
tracing department. you may replace that debtor, at a small
service fee, for use on another account.
Thank You Letter. At your instruction, and at no cost, T.S.I.
will send a "Thank You Letter" to your debtor when the account
has been paid. (Sample copy enclosed).
Status Report. T. S. 1. will send a thorough monthly analysis of
each account submitted for collection. (Sample enclosed).
Your Debtor Name
1966
9092 jolleyville Road
Austin, Texas 76759
City of Lubbock
TSI Debtor No.
Client Ref.
Amount Due
Mr. Ray Southard:
Thank You.
December 3,
26883654
867556
$0.00
We have been notified that Your account has been satisfied. Our
client has requested that we extend their thanks for your
cooperation in resolving this matter.
They consider your relationship valuable and look forward to
serving you in the future.
S i ncere I y,
Roberta Green
Public Relations
The Transworld system is extremely simple to utilize. In order
to initiate collection activity on an account, numerous options
are available.
Listing sheets i.e. aged receivables report
Individual statements i.e. copies of invoices
Magnetic tape
Data transmission
Within 48 hours after receiving information, collection
procedures begin. Each time the debtor is contacted, he is
instructed to pay City of Lubbock directly.
Standard Service Notice Forms, (sample enclosed) may be used for
reporting Paid in Fulls, Partial Payments, Suspends, Reinstates,
and Thank You Letters. A listing sheet or tape reporting
payments is acceptable with prior approval.
We appreciate the opportunity to submit our proposal, and look
forward to a mutually rewarding business relationship with
City of Lubbock. If you have any additional questions, please do
not hesitate to contact we at (214) 456-9202. 1 will be happy to
clarify any points for you.
Siner ly,
6;;
Les Weiss
Account Executive
SYSTE Ram
CORPORATE OFFICE: 5880 COMMERCE BLVD., ROHNERT PARK, CA 94928 (707) 584-4225
December 1, 1986
Mr. Gene Eads, CPM
Purchasing Agent
CITY OF LUBBOCK
1625 13th Street, Room L04
Lubbock, TX 79401
Dear Mr. Eads:
Mr. Les Weiss, an Account Executive in our Dallas office, has asked me to send you
a brief resume on our company along with some business references and a financial
statement.
Transworld Systems Inc. is a California Corporation chartered in 1970 and is a fully
licensed and bonded collection agency. Our Corporate Office and Data Processing Center
are both located in Rohnert Park, California. The company maintains offices and account
representatives throughout the United States.
The company is broken down into three divisions.
1) Transworld Systems Inc.
TSi is a unique, fixed fee, pre-collection/collection system. In addition to
being tremendously effective, it features a monthly Status Report which
completely updates a client on all activity including', the cost effectiveness
of the system.
2) Credit Management Services
CMS provides intensive and legal work on a percentage basis. This division
was set up to handle, for many of our clients, the hardcore accounts that have
refused to pay under the TSI system.
3) Tronsworld Computer Services
Transworld Computer Services provides our inhouse data processing services
for TSI and CMS. We own a Sperry 1100/70 computer', supported by a Sperry
XL -40 data entry system.
The company is a wholly owned subsidiary of the Union Corporation, South Norwalk,
CT. Union is listed on the New York Stock Exchange under the symbol UCO.
The officers of Transworld Systems are:
MICHAEL STRAUSS, Chairman of the Board
GORDON S. DUNN, President
MILTON G. FREER, Secretary -Treasurer
PIXIE WHEELER, Vice President -Administration
GEORGE M. MACAULAY, Vice President -Credit Management Services
SAN FRANCfSCO, LOS ANGELES, NEW YORK, CHICAGO, DALLAS, HOUSTON, DENVER, SEATTLE, PHOENIX, HONOLULU, ATLANTA, BOSTON, MIAMI, AND OTHER MAJOR CITIES
BANKING REFERENCES:
BANK OF AMERICA
Main Branch
Santa Rosa, CA
Jerry Foster, VP
(707)525-2391
WESTAMERICA BANK
Rohnert Park, CA
Emily Sousa, Mgr.
(707)548-3600
CORPORATE COUNSIL:
ANDERSON, ZEIGLER,
DISHAROON & GRAY
Santa Rosa, CA
Attorney Kirt F. Zeigler
BUSINESS REFERENCES.,
XEROX CORPORATION
Santa Rosa, CA
Linda Torres -Fuller
(707)542-2124
DUPLEX PRODUCTS, INC.
San Francisco, CA
Jack Woods
(415)777-1100
SHEARSON LEHMAN
AMERICAN EXPRESS
S. Kingsley van Ess
(415)362-7440
SPERRY UNI VAC
Oakland, CA
Robert Coraion
(415)568-2240
ASSOCIATED BUSINESS PRODUCTS VALLEY BUSINESS FORMS
Santa Rosa, CA Colistogo, CA
Bill Edelen Lorraine Solling
(707)527-6022 (707)942-4301
Our professional liability insurance in the amount of $1,000,000.00 is carried by Continental
Casualty Company. A certificate of insurance will be sent under separate cover.
The TS! system of managing delinquent accounts receivable has proved tremendously attractive
to the business community. This fact can best be documented by the amazing growth of the
company to over 30,000 clients in a rather short time. Our client list now includes 75 divisions
of the Fortune 500 companies.
We have been particularly successful in the areas where our client experiences an ongoing
relationship with it's debtors i.e., credit unions where we now have over 300 clients, schools,
universities and the medical profession. The concept of effective, professional third -party
intervention in handling delinquent accounts is particularly effective for these types of businesses
due to the fact that TSI does work on a rather impersonal basis and within on established time
frame, making it much easier for the average debtor to accept a collection agency notice in the
moil as opposed to a collector phoning them at home or work.
Should you require any further information, regarding our company, I will be happy to provide
it for you.
Sincerely,
GORDON S. DUNN
President
Enclosures: LetterlBank of America
Financial Statement
GSD:k
Im
Bank of America
R.M. Ruh
Vice President-
Area
residentArea Manager
Santa Rosa Main Office
Mr. Gordon Dunn
President
Transworld Systems, Inc.
5880 Commerce Boulevard
Rohnert Park, California 94928
Dear Gordon:
June 6, 1985
I have recently had a chance to review the Sonoma Business
Magazine, and am sure you are very proud of the article that
appeared about Transworld Systems.
We, at Bank of America, are very pleased that we have been
your Bank since your Company's founding in 1970. It is amazing
to think back to the founding days and now realize that today,
your firm is doing business in all fifty states and Canada; and
is dealing with corporate giants such as General Motors, Coca Cola
and Marriott Hotels.
Gordon, we want you to know that we value your business.
Your relationship with our Bank is greatly appreciated, and we
look forward to the continued privilege of serving you.
I l
Kindest regards,/l
RMR:md
Bank of America National Trust and Savings Association
P.O. Box 1090 Santa Rosa, California 95402
.. _.._ .: .. -"�^ �..i - .. ti5� ; .�..; .. .... �. � . .,.. � ,�. •. �.�2._ .b. 1�J. - .x.,fCca. ...h ..Y . 1_...s.��.vx�__.�.v...�..u_� _. �.._..v�......�......_,..
w
'(�"Ckhc)- , CCCUMLLarCl CC'Po-LaiC:1
-c the Board of Oirectors of
r:nsworld Systems Inc.
We have- reviewed the accompanving balance sheat of Trar,sworld
Systems Inc., as of June 30, 1985 and ?984, and the related statements
of income, retained earrings, and chances in financial position for the
eight months then ended, fil accordance with standards established by the
American Institute of Certified Public accountants. All information
included. in these financial statements is the representation of the
,.anacement of iransworld Systems, Inc.
A review consists. principally of -inquiries of company personnel
and analytical procedures applied to financial data. 'It is substan-
tia.11y less in scope than an 3xamination in accordance with generally
accepted auditing standards, the objective of which is the ex=rsssior of
an opinion regarding the financial statements taken as a whole. 'ccord-
inoly, we do not exoress such an opinion.
Based an our review, we are not aware of any !nater i a ?ca-
tions that should be made to the accompanying financial -n
order for the=n to be in conformity with generally acc=ptao' ac_o :nt i ng
�1r1nC?pies.
pan^.alae' ' '=-3r-1- a
nucu'st^°^
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-'�.r-�,.'+�*��-'-=+"�-:i6ix1+. Y. 1i:•ii.,�i. l _ . +. Sra T_r...'.v.e•._c.alc,+...� __'ka...,_ _ic.v..,ku. ..v+. _,",.
A
7AINSWORf0,
SYS T `enc ;NC,
tin C nn�
3a zn---s
June =0, 1986
Cune 3u 9i -
A s s e t s
V
''urrent Assets:
Casts
S 7,773,360
S 2,257,265
Investment in marketable securities less
allowance for unrealized losses of S59,007
and S309,105
2,140,297
3,636,;80
Accounts and notes receivable:
Trade, less allowance for doubtful
accounts of S79,050.0 and S184,3102
969,274
gE7 _3 2
Officers
Ofl00,36�
6,6,000
Other employees
Subcontractors
69,157
52. 3E
Others
1S,668
35 ,2"
Interest receivable
1,978
49,2.4
Inventory - forms and supplies - at cost150,462
17 2,53E
Prepaid expenses
1011,263
101,Oo8
uaferred income taxes
1_164,S29
1,iL1"
Net investment in direct financing leases
3,447
,5C2
2,016
Total Current Assets
1? 404 o5g
��n -
Prccerty and 6ouioment - Net
4.384,679
5.7180,77a
Other Assets
inves-ment in marketable securities
60`.CEO
Net investment in direct financing leases
1,475'
Cash value - life insurance
56.000
57.475
I -.ssa
-s 1C ,qa7 3 f
7 A�ShrOR�D SYSI—, INC.
L 41 abilities
.-Ur-ert LiabiIities
Coiiections held in trust
Accounts payable - trade
Current portion, long-term liabilities
Current portion of obligation under
capital leases
Accrued expenses:
Salaries, bonuses and commissions
mployee benefits
°avroll and sales tax
interest payable
Federal income tax payable
State income taxes payable
Unearred income on service contracts
Other currant liabilities
Total Curr9nt !iabilities
L•cna-germ !iabilities:
Notes and cantracts payable
Obligation under capital lease
De-Ferred income taxes
iotel Liabilities
Ccrmitments
S t c c k S? Q 1 d o r 5 .r C U i t V
naoital Stock -
Autnorlcec to issue 20,000 shares
of 5. .00 oar va i ue stoc' ; 1.3 , 74:C
shares issued and outstanding
iab es and
June 30. 1925
S 408,222
M 160
429,342
81,314
654,008
231, 711
53 , 364
3,197
562,874
111,270
1,768,552
48.9 57
4-,132,477
2,353,563
a067,258
163 .459
7.517.757
3Q_60
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6ACU/("419?-L)UCI
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PHONE NUMBER PERIOD ENDING
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CICWNT REP NO. 1365
ABLE HASLAM
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WA 9b29� HASE TT
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345.001 05-86{ 7-16-86� 10-10-861
18Q.00 03 86 7-16-66 10-D8-861
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S*STL:!M PURCHASED
RASED �7-26-F4
NUMBER 637 A OUNT
A'CCOU,0S SUBNITTEL l
2,875,.00
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P;ART1IAL PAYMENTS RECEIVED 21
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COLLECTS
(TATE OF LAST PAYME N7
. *jAll
CORPORATE OFFICE
5880 COMMERCE BOULEVARD
ROHNERT
COLLECTION
PARK, CA94928
(707) 584-4225
STATUS REPORT
PERIOD ENDING PAGE
7Ina ir;c
CLIENT NUMBER
4bC0/75914-4301
PHONE NUMBER
,_.30-1 47E,-7000
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T106;K OF YAZL CCOuN REP !NO. 1670
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SYSTEM PtiRCHASEp NUMBER 100 AMOUNT 725.00 9
ACCOUNTS SUBMITTED35 !!! 28 115.06
P'AID SIN FULL /CANCEL � ` 19 121,893`.57
P!ARTIjAL PAYMENTS RECEIVED .. y 250i.00
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CORPORATE OFFICE
5880 COMMERCE BOULEVARD
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COLLECTION
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ROHNERT PARK, CA 94928
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STATUS REPORT
ON NUMBER
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ENDING PAGE
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6880 COMM[ RCE BOULEVARD COLLECTION
ROHNPARK, CA
(70 STATUS REP ,I
(707) b84 4225
CLIENT NUMBER
7125/5 } b31–OOD
PHONE NUMBER
1 3 223–b46
PERIOD ENDING
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I i f
CITY OF TAMPA FLORIDA I CCOUNT REP
A'TTN COLLECTIONS MANAGER ' TEVE LAWSON
7,20 ZACK STREET HONE 613 771
TAMPA FL 33602 RASE I
N0. 4591
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FINANCIAL COLLECTION SERVICES RESPONSE FORM
I
1. g"t Schedule:
Check Collection unit price per check -U NOiR s. CQ
Account Collection: Lubbock Power & LIght _Kz co U oz
1. Current Accounts - 30 days etf .S g
or fess
2. Accounts - 31- 60 days
61-120 days _%
121-180 days %
181 -year R � g UIUaE S U 0
1 year -18 months %
Over 18 months
Account Collection: Weed Mowing
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: Water & Sewer Pro Rata
1. Current Accounts - 30 days�r_-_ S'S'
or less
2. Accounts - 31- 60 days
61-120 days
121-180 days
181 -year
1 year -18 months
Over 18 months
(jNoZ)zi5.0.6
Vrvp, tJAS. oo
P�a Rc _
4
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Financial Collection Services Response Form
Page 2
Account Collection: Funeral Home -Account Receivable
1. Current Accounts - 30 days %
or less
2. Accounts 31- 60 days g
61-120 days %
121-180 days %
181 -year %
1 year -18 months %
Over 18 months %
Account Collections Lot Purchases -Accounts Receivable
1. Curren,- Accounts - 30 days
or less
2. Accounts - 31- 60 days %
61-120 days %
121-180 days
181 -year %
I year -18 months %
Over 18 months %
Account Collection: Paving Assessments
Installment Billings
Current Accounts (Less
than 31 days overdue)
Delinquent Accounts
31 to 395 days
Over 395 days
%
WU O U A.S - 0i
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Additjonal Information B_@gm ired: (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.