Loading...
HomeMy WebLinkAbout5.1105 Original ContractDraftl 1 /24/10 Legal Dept. 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 Draftl 1/24/10 Legal Dept. 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 -2- Draftl 1/24/10 Legal Dept. 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- J 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. v 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.