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COLLECTION SERVICES AGREEMENT
BETWEEN
THE CITY OF PORT ANGELES
EVERGREEN FINANCIAL SERVICES
5. II D5
THIS AGREEMENT is made and entered into by and between the City of Port Angeles
(hereinafter referred to as CITY) and Evergreen Financial Services, Inc. (hereinafter referred to as
EFS).
For and in consideration of the remuneration set forth herein and the terms and conditions
herein, the CITY and EFS agree as follows:
1. This Agreement shall commence on the date of execution of this Agreement and
shall terminate upon ninety (90) days written notice by either party to the other party.
2. EFS is, and throughout the duration of this agreement shall be, a licensed collection
agency operating pursuant to the provisions of Chapter 19.16 RCW. EFS shall
obtain and keep in force licensing and bonding in compliance with all State and
Federal laws governing collection agencies.
3. EFS shall perform collection work and furnish all equipment, labor, and materials
necessary to collect those unpaid accounts that are assigned to EFS by the City.
4. Collection services shall include the following:
A. The CITY will prepare collection information including, at a minimum, the
name, address, and account balance, and submit the information via EFS'
secure website.
B. EFS will provide an alphabetized computer acknowledgment within 24
business hours to confirm receipt of accounts submitted by the City.
C. Alphabetized list shall be by debtor's name and shall reflect the principal
balance and collection fees assessed by the City.
D. EFS shall furnish all stationery, forms, envelopes and postage required in
mailing collection notices as required by law.
E. EFS shall mail collection notices as well as make direct contacts by trained
staff in accordance with State and Federal collection laws.
F. When legal action is deemed necessary to collect an account, EFS will
advance legal costs and attorney fees.
G. EFS shall pay the amounts received on the CITY's accounts prior to the 20th
of each month for collection made the preceding month. A statement showing
debtor name, account number, amount paid and balance remaining will
accompany remittance checks. Upon termination of this Agreement, EFS
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will provide complete accounting of all accounts that have been referred for
collection.
H. EFS shall provide a quarterly status report listing all assigned accounts and
the activity on each account. In addition, EFS will work with due diligence
to provide any additional reports that the CITY may deem necessary during
the duration of this contract.
I. Both parties shall identify no less than two (2) contact persons within their
respective offices who are familiar with and authorized to handle the CITY's
assigned accounts.
J. Accounts listed to EFS with a principal balance greater than $50.00 and
owing for a minimum of forty (40) days shall be reported to a minimum of
one major credit repository.
5. Pursuant to RCW 19.16.500, the CITY shall assess collection fees on principal
balances turned to collection on the following schedule:
A. On behalf of CITY, EFS shall assess a collection fee of 35% on receipt of the
account to collection.
B. Upon collection of the entire balance, the CITY shall be entitled to 100% of
the principal balance prior to the assessment of the collection fee.
C. EFS shall retain the collection fee as compensation for performance of work
described.
D. When the CITY receives payment(s) in their office on accounts that have
been referred to EFS for collection, it shall be the responsibility of the CITY
to report those payments either via fax, phone, mail or through EFS' secure
website.
E. If the CITY or EFS receives a payment that is a partial payment of the total
amount owing after being referred to collection, the payment shall be
apportioned as follows: Pro rata based on percentage of EFS to debt. For
example: if a debt of $200.00 is turned over, and there is added a 35% fee, so
debt becomes $270, and then there is a partial payment of $200, the $200 is
prorated as follows: 25.926% to EFS (EFS fee of $70 (35 is 25.926% of
total debt of $270.00. In no event is EFS entitled to more than their fee.
6. EFS shall indemnify, defend and hold harmless the CITY and its officers, agents and
employees against and from loss, damage, cost, charge, expense, liability, claims,
demands, or judgments, of whatsoever kind or nature, whether to persons or property
arising wholly or partially out of any act, action, neglect, omission, or default on the
part of EFS its subcontractors and/or employees, except only such injury or damage
as shall have been caused by or resulted from the sole negligence of the CITY. In
case any suit or cause of action shall be brought against the CITY on account of any
act, action, neglect, omission, or default on the part of EFS, its agents,
subcontractors, and/or employees, EFS shall assume the defense thereof and pay any
and all costs, charges, attorney fees, and other expenses and any and all judgments
that may be incurred or obtained against the CITY.
7. EFS shall obtain and keep in force continually during the term of agreement
comprehensive general liability and professional liability coverage's with coverage
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in the amount of $2,000,000.00.
8. Neither party shall assign rights or delegate duties under this Agreement, nor any
interest, right or responsibility arising herein, without the written consent of the other
party.
9. In any action for the breach of this Agreement, the prevailing party shall be entitled
to reasonable attorney fees and venue shall lie in Clallam County, Washington.
10. EFS agrees that in fulfilling the duties of this Agreement, EFS is responsible for
complying with the Federal Trade Commission's Red Flag Rules, implementing
Section 114 of the Fair and Accurate Credit Transactions Act of 2003. EFS agrees
to have policies and procedures to detect relevant Red Flags that may arise in the
performance of this Agreement and to take appropriate steps to prevent or mitigate
identity theft relating to this Agreement. EFS shall provide a copy of its program and
policies for compliance with the Federal Trade Commission's Red Flag Rules to the
City of Port Angeles. EFS shall report any Red Flags concerning the City of Port
Angeles' covered accounts and this Agreement to the City of Port Angeles'
authorized representative.
EFS annually will provide a copy of its current policies and procedures to City's
authorized representative
The City's authorized representative is the City Treasurer.
EFS' authorized representative is \-ervc44-
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THIS AGREEMENT IS THE ENTIRE agreement of the parties and shall not be modified
except by a written modification signed by all parties hereto.
DATED this L day of
EVERGRE FINANCIAL SERVICES, INC.
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Title: 6\04\4
G \LEGALta AGREEMENTS &CONTRACTS\2010 Agrmts &Contracts\Collection Services Agreement EFS Ver 2 111610 wpd (November 19, 2010)
2010.
CITY OF PORT ANGELES
By
12/10/2010
RE: Letter of understanding
City of Port Angeles
Kathyellen Haney
Utility Services Manager
Dear Kathyellen:
This is a letter of understanding in regards to the contract for collection service between
the City of Port Angeles and Evergreen Financial Services, Inc.
Cc: File
1. In reference to section 3 of the agreement, Evergreen agrees on behalf of the City
to mail a final, 30 -day notice to the debtor as outlined by RCW 19.16.500. The
notice shall advise the debtor that the account may be turned over to a collection
agency and if it is turned to collection, that a collection fee will be assessed if the
account is not paid in full within (30) days.
2. In reference to section H of the agreement, quarterly reports are available for you
to pull at anytime via Evergreens secured website.
We also would like to identify our representatives that will be authorized to handle your
accounts. They will be Heather Johnson, Monica Garcia, Angelica Mendoza, Denice
Gorski Business Services Manager and Myself.
Jon Trenkenschuh
Director of Marketing
Evergreen Financial Services, Inc.