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Home My WebLink AboutRES.2497.11-16-2009 BILL NO. 09-187 RESOLUTION NO. ��.�C�J ! A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT FOR DEBT COLLECTION SERVICES WITH K�NSAS COUNSELORS, INC. , IN THE CITY OF CAPE GIRARDEAU, MISSOURI BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE GIRARDEAU, MISSOURI, AS FOLLOWS : ARTICLE 1 . The City Manager, for and on behalf of the City of Cape Girardeau, Missouri, is hereby authorized to execute an Agreement for Debt Collection Services with Kansas Counselors, in the City of Cape Girardeau. A copy of the Agreement is attached hereto and made a part hereof . PASSED AND ADOPTED THIS /L��/ DAY OF / r�'��, 20 ��, � � �� Ja . Knudtson, Mayor ATTEST: �1gARD�A� �.. ,� . � ,�, '�^�'��. �+'/'C/�--�'" � �� V'�?� Gayl L�. Conrad, Cit erk `i'`"'� :. W� j,�-� i` �t� �;��r�� 'i' ��,�;,:. '.., ��J T�E �" ,��`. �,-,'� * Q�Y-- S��f�� . r �' AGREEMENT FOR DEBT COLLECTION SERVICES THIS AGREEMENT, dated this 16th day of November, in the year 2009, by and befinreen the City of Cape Girardeau, Missouri, hereinafter called the "CITY", and Kansas Counselors, Inc., hereinafter called the "AGENCY". A. Services to be Provided by Agency The City reserves the sole right to decide which accounts are referred for collection. It is the intent of the City to take a compassionate approach to its collection process and harassing or aggressive tactics will not be tolerated. The term of the contract shall be for eight (8) months, from November 16, 2009 until June 30, 2010, with the option to extend the term for additional periods of one (1) year beginning each subsequent fiscal year on July 1 st. Unless otherwise cancelled as provided herein, the agreement will renew automatically unless either party notifies the other in writing thirty (30) days prior to July 1st. The City reserves the right to expect (at a minimum) professional services and dedicated personnel provided by Agency to perForm the following: a. The City will provide overall guidance on the conduct of the collection services, as it will reflect on the City's reputation. The Agency will agree to use courteous business procedures in order to maintain the City's goodwill. b. This agreement will apply to all City departments, with the exception of the City's Municipal Court. The City reserves the right to engage other entities to perform the same or similar services for Municipal Court. c. Agency shall accept automated or manual transfer of delinquent payment information from the City. It is expected the Agency will work, at no additional costs, with the City and its software to ensure accurate and timely transmission of data. d. Agency shall guarantee the confidentiality, security, and safety of all files, documents, computer files, etc. Also, Agency shall agree to enter into a confidentiality agreement with the City to be compliant with the City's Identity Theft Prevention Program. e. Agency agrees to maintain secure facilities and secure data storage so as to be in compliance with all regulations pertaining to HIPAA. All staff members will be trained as to the sensitive nature of inedical Protected Health Information (PHI). f. Agency shall perform all work in accordance with the applicable provisions of the Federal Fair Debt Collection Practices Act, as well as all state and local laws. g. Agency shall not, under any circumstance, use any threats, intimidation, or harassment of the debtor in the collection of said accounts; nor shall Agency violate any guidelines as established by the Federal Trade Commission, Federal Communications Commission, nor shall Agency violate any local, state, or federal r '�' laws. The City reserves the right to add further restrictions under this section upon written notification. h. Agency will be fully responsible for maintaining accurate records of all correspondence, documents, accounting records, transactions and other relevant evidence. These records shall remain on file for a period of at least seven (7) years. All records and books shall be made available to the City for review upon request. i. Agency shall submit status reports on a quarterly basis and an annual report (on a fiscal year) through June 30th, reflecting the activity for the previous fiscal year. These reports shall include data for each account detailing the value of the current debt, money received, charges waived, balance due and date of last payment. A financial summary will also be required showing "period to date" and "year to date" totals for pertinent information such as receipts, net accounts receivable, total accounts receivable, and collection percentage. In addition, an aging report should be available in summary and in detail. Agency shall provide copies of all available reports. j. Agency shall meet periodically with the City staff to discuss all services. The Agency will also provide recommendations on how the City can reduce future bad debt as well as updates to the City on changes in state and federal laws related to credit and collections. k. Upon termination or expiration of this agreement, Agency shall provide and return to the City all information regarding all accounts both electronically and by hardcopy. If this contract is terminated, Agency shall return all accounts to City within ninety (90) days. I. The City may request the Agency to cancel and return any account at any time upon written or electronic notification. The Agency agrees to place account(s) on hold, and to stop further collection activity until payment is received or further instructions are received from the City. The City understands that the account will be withdrawn from the three national credit bureaus at that time. The City also understands that the Agency reserves the right to retain any account as long as payment is expected and an Agreement exists between Agency and City. B. Collection Procedures m. Agency shall make contacts with delinquent accounts under the name of the Agency only. n. Agency will take appropriate steps to locate consumers whose addresses and employment may be unknown. o. Collection services shall be undertaken within three (3) days from receipt of said accounts through proper and lawful means, without regard to the amount thereof. � , p. Agency shall attempt through colie�tion procedures to achieve the highest rate of recovery possible while maintaining quality customer service. Agency shall make a minimum of six (6) contacts for each account (unless the account clears sooner) of which (3) shall be via mail, within sixty (60) days of receipt of account. q. No legal actions can be taken without the express consent of the City. Agency shall have authority to institute, maintain, or prosecute a suit on any account after the City grants permission in writing. r. Any settlement of principal or charges and specific fee schedule shall be agreed upon between the Agency and the City, prior to acceptance. The City shall confirm such settlements in writing. s. Agency shall have the authority to create pay arrangements with customers, if deemed necessary. Once payment has been collected, Agency shall submit the appropriate amount to the City according to the agreed fee schedule. t. Agency shall instruct customers to submit payment to the Agency. Should payment be received by the City, the City agrees to notify the Agency of the payment so fees can be billed to the City at the end of each month. u. Agency will list unpaid balances with the three National Credit Bureaus after 90 days. (CSC Equifax, TransUnion and Experian). v. Agency shall retain individual accounts for a maximum of finrelve (12) months per account. After this period, and upon written request by the City, accounts will be cancelled and returned back to the City, except accounts currently set up on payments or in litigation. City understands that any account cancelled and returned will then have to be removed from the credit bureau reporting companies. C. Access City will have access to all Agency books, files, records & other relevant data pertaining to City accounts. D. Receipt and Remittance of Collections w. Agency will maintain a City trust fund and will deposit all collections into this trust account. City authorizes Agency to accept, endorse and deposit any/all checks received which are made payable to City. x. City will promptly report to Agency payments made directly to City (regardless of source) on accounts referred to Agency and pay Agency the contracted fee. No payment is due to Agency for services hereunder unless the debtor has been contacted by Agency by written communication. y. Agency will, on a monthly basis on or before the tenth of the month, remit net collections to City and will submit a detailed remittance report to include the itemized collection amounts and withheld fees. E. Fees and Charges z. City and Agency agree at t collection fee for First Placement Accounts referred to Agency will be 22°0. (Initial please) aa.The fee to the Agency on any account collected subsequent referral to an attorney for legal action will be 45% of the amount recovere . (Initial please) bb.The fee for secondary P ce nt Accounts (accounts placed with a prior collection agency) will be 40%. (Initial please) cc. Should Agreement terminate, Agency agrees to continue to service existing accounts (handle disputes, credit bureau reporting / maintenance, pursue for payment, etc.) unless City also requests that the active accounts be returned. Should Agency c tinu to service existing accounts, it will be at the agreed upon fee schedule. (Initial please) dd.Agency resenres the right to take a finders fee of 10% or$50. , whichever is greater, for excessive discoveries of previously paid accounts. itial please) ee.In addition to the fee schedule above, Agency will advance all court costs incurred in the filing of claims or the execution of judgments. i. City will be billed by Agency on a monthly basis for these costs. ii.These costs will be added to the amount due from the consumer and will be returned to City from first monies received. iii. Approved and processed legal accounts, which are closed by the City, will be subject to a 20% fee of the principal in addition to all filing fees and court costs. This will not apply to accounts that are closed due to information discovered and mutually agreed to by Agency and City. � ff. Upon receipt of a "Ba nce Due" statement from Agency, City will submit payment in full within 30 days. Initial please) gg.City will not owe Agency any fee on any account with payments reported prior to Agency's first written notification to debtor. F. Insurance and Indemnifications hh.Agency will at all times maintain professional liability insurance and special multi- peril insurance in the amount of$1 million. Proof of Insurance will be provided to City upon request. . . ii. Agency will indemnify and hold harmless City from a�tions brought or claims made by consumer, which are a result of negligence or misconduct on the part of the Agency in its collection procedures. jj. The Agency shall assume all risks of loss or damage to its own property and to property in its custody and to the properly of its employees, agents, and servants, howsoever caused; and all risks of damage resulting from the death of or injury to its agents, employees and servants, while engaged in said work and while traveling to and from the same. The Agency agrees to hold the City free and harmless from all loss, cost and expense arising or growing out of any injury to any employee for the City caused by the negligence of the Agency or any of the Agency employees. IN WITNESS WHEREOF, the undersigned individuals have executed this Agreement with the full authority of the CITY and AGENCY this 16th day of November, 2009. �r,1RA I�� .;�� -- �„�� CITY OF C ^IRARDEAU, MISSOURI ,��Q. v F; �,� , (t;,�"jl i A � 1 � �t � � �0 '(<tv�l��,-� �.. � � ., ,�;}t; C�� '; �� ' --��;,;��',��A\\� ��°�I Sco . Meyer, ity Manager �-,.r��:'�1� �� . �'��`c.'� \Tit� ��oT+1� �� y� •i�` -�' �4 Gayl . Conrad � City erk Address for giving notices: 401 Independence Street Cape Girardeau, MO 63701 KANSAS COUNSELORS, INC. G� �iT,�'i/1�Cf i 1'1� � rt�,10✓ [Name and Title] ATTEST: �. �v�� , . . � PR.�s�'o�.rr-� [Name and Title) Address for giving notice: insert address ��5 �Occ�S.e�o�s .--LrIL Insert address �t �� y a� N Gc�<'cLl��-,�• ��zo 3