Loading...
HomeMy WebLinkAboutRes 2015-09-06 AMS Utility Court Collections.pdfCITY OF ANNA, TEXAS RESOLUTION NO. 2015-09-06 (AMS Utility & Court Collections) A RESOLUTION OF THE CITY OF ANNA, TEXAS AUTHORIZING THE CITY MANAGER TO ACT ON THE CITY'S BEHALF IN EXECUTING CONTRACTS WITH AMERICAN MUNICIPAL SERVICES CORPORATION FOR UTILITY AND COURT COLLECTIONS WHEREAS, the City Council of the City of Anna, Texas (the Council) desires to secure services for utility and court collections; and, WHEREAS, American Municipal Services Corporation (AMS) desires to provide utility and court collections for the City of Anna (the City); and, WHEREAS, the Council has determined that the services of will benefit the City in providing for an economically feasible and efficient method of utility and court collections, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. Recitals Incorporated. The recitals set forth above are incorporated herein for all purposes as if set forth in full. Section 2. Authorization. The Council hereby approves the contracts attached hereto as Exhibit 1 Professional Services Agreement for Billing Collection Services and as Exhibit 2 Professional Services Agreement for Court Collection Services, and authorizes, ratifies, and approves the City Manager's execution of both contracts. The City Manager is hereby authorized to execute all documents and to take all other actions necessary to finalize, act under, and enforce the respective contracts. PASSED AND APPROVED by the City Council of the City of Anna, Texas this the 8th day of September, 2015. ATTESTED: City Secretary Ca rie L. Smith _FPR ED- D N a r Miketrist PROFESSIONAL SERVICES AGREEMENT FOR BILLING COLLECTION SERVICES STATE OF TEXAS § COUNTY OF COLLIN § 15' THIS AGREEMENT is made and entered into as of the z NI' day of 44, by and between the City of Anna, Texas, a Texas municipal corporation, with its principal office at 111 North Powell Parkway, Anna, Collin County, Texas 75409, hereinafter called "OWNER" and American Municipal Services Corporation, with its corporate office at 3724 Old Denton Road, Carrollton, Texas 75007, hereinafter called "COLLECTOR," acting herein, by and through their duly authorized representatives ("Agreement"). WITNESSETH, that in consideration of the covenants and Agreements herein contained, the parties hereto mutually agree as follows: ARTICLE 1 EMPLOYMENT OF COLLECTOR OWNER hereby contracts with COLLECTOR, as an independent contractor, and COLLECTOR hereby agrees to perform the services herein in connection with the Project as stated in the sections to follow, with diligence and in accordance with the highest professional standards customarily obtained for such services in the State of Texas. The professional services set out herein are in connection with the following described project: The Project shall include, without limitation, the general services traditionally performed by a municipal billing collections agent including without limitation collection of amounts owed to OWNER for utility service, emergency ambulance service, and other services provided by OWNER and, without limitation, the services described under Article 2 of this Agreement. ARTICLE 2 SCOPE OF SERVICES COLLECTOR shall perform the following services in a professional manner: A. COLLECTOR shall perform all those services as necessary and as described here: 1. Assemble, maintain, review, and update as needed records of customer accounts for OWNER services which have been referred to COLLECTOR for collection ("collection accounts"). Review is for internal consistency, mathematical accuracy, conformance to the OWNER's record-keeping standards and obligations, and good collections practice. The services described in this paragraph do not include a guarantee of the completeness, accuracy or correctness of the information supplied to COLLECTOR by the OWNER, but does include COLLECTOR'S warranty that the collection account records will be kept current. For purposes of this paragraph, "current" means that all PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 1 of 11 new payments or charges applicable to a collection account will be reflected in the records within 30 days after COLLECTOR is notified of the occurrence modifying the outstanding balance. 2. COLLECTOR will use its best efforts to collect monies owed the OWNER corresponding to the collection accounts in absolute compliance with all applicable local, state, and federal debt collection law. COLLECTOR shall use its best efforts to establish and maintain procedures reasonably adapted to avoid errors resulting in violation of debt collection law. In the event COLLECTOR or any of COLLECTOR's employees or agents becomes aware of any actual, potential, or accused violation of laws relating to debt collection in reference to a collection account referred by the OWNER ("debt collection violation"), COLLECTOR shall immediately notify the OWNER of the debt collection violation and fully cooperate with the OWNER's investigation thereof, said cooperation including but not limited to preservation and disclosure of all relevant records and making all involved employees or agents of COLLECTOR immediately available for interview by the OWNER. 3. COLLECTOR is solely responsible for ensuring its collection efforts are in compliance with applicable law as it exists now or as it may be amended. In the event of any conflict between any term of this Agreement and applicable law, CONTRACTOR will abide by the law and immediately notify the OWNER of said conflict. 4. While performing collection services in accordance with this Agreement, the COLLECTOR shall represent to any debtor, whether directly or by implication, that the OWNER itself is conducting collection activities. Instead, COLLECTOR will clearly and directly communicate to debtors that it (American Municipal Services) is attempting to collect a debt. This paragraph does not prohibit COLLECTOR from informing a debtor that the debt arose from the provision of services by the OWNER. 5. As part of the collection services to be provided by COLLECTOR, it will skip trace those collection accounts when it is determined a good address is not known. COLLECTOR will send each debtor no fewer than four letters in attempting to collect on the collection accounts. COLLECTOR will also contact each debtor by telephone in an effort to have the debtor pay the amount owed to the OWNER for the collection account. COLLECTOR will limit all telephone calls to the period between the hours of 8:00 A.M. and 7:00 P.M. from Monday through Friday, and between the hours of 8:00 A.M. and 2:00 P.M. on Saturdays. No debtor will be contacted by telephone on Sundays. Only mail and telephone contacts will be used by COLLECTOR; no personal contacts to debtors are authorized by the OWNER. COLLECTOR agrees to honor any debtor's request to contact the debtor during specified hours or by written correspondence or phone calls directed to a specified location, and in doing so may deviate from the time period limitations of this paragraph to the extent permitted by applicable law. 6. COLLECTOR will arrange for all debtors to send their payments directly to COLLECTOR. All payments received relating to collection accounts shall be processed and deposited into a trust account established by OWNER. Within 15 calendar days of PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 2 of 11 the OWNER's final confirmation of payments made for the previous month's collections, COLLECTOR will forward to the OWNER a single check in an amount equal to [the sum of all payments received for the previous month] less [the COLLECTOR's primary payment described below]. 7. COLLECTOR may accept payment by credit card and charge the debtor the standard fee set by COLLECTOR for that service in addition to the amount owed the OWNER on the collection account. Any credit card payment fees, whether paid or unpaid, authorized in this paragraph shall not reduce the payment owed to the OWNER under paragraph 5 above. 8. COLLECTOR will provide the OWNER with reports on payments received on a daily basis (unless otherwise requested by the OWNER) and will provide a monthly payment report showing all payments received by COLLECTOR for the previous month within 15 calendar days after the end of the month. 9. COLLECTOR is authorized to arrange payment schedules with debtors and to authorize partial payments, provided that the entire amount to be paid by the debtor equals the total of the monies owed to the OWNER plus any interest or late charges and costs established by OWNER. When a payment plan is established, COLLECTOR agrees to provide each debtor with a schedule of their payments, payment coupons, and envelopes addressed to COLLECTOR at the address of COLLECTOR's choosing. COLLECTOR will monitor each payment plan and contact each debtor who fails to comply with their payment plan by telephone and written correspondence. 10. COLLECTOR is authorized to report to the various National Credit Bureaus, at COLLECTOR's sole expense, the unpaid amount owed as a debt due the OWNER in conjunction with a collection account. COLLECTOR is solely responsible for ensuring that all reporting to any third party is accurate and in compliance with applicable law. 11. COLLECTOR will discontinue collection efforts on collection accounts as they reach the end of the time period established by the applicable statute of limitations. 12. COLLECTOR will discontinue all collection -related activities immediately after collection account is paid in full. When a collection account corresponding to utility service has been paid in full, COLLECTOR will notify OWNER that payment has been received for that account as soon as is practicable after receipt of the final payment. 13. COLLECTOR will constantly monitor its employees to ensure all contacts with debtors are done in a polite, courteous, and helpful manner. B. The services described by Section A above shall encompass collection accounts relating to utility accounts (water, sewer, and trash collection). C. COLLECTOR shall perform any additional services as may be set forth in individual task orders referencing this Agreement and signed by authorized representatives of both PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 3 of 11 parties ("task orders"). Said additional services shall be governed by the terms of this Agreement. If there is any conflict between the terms of this Agreement and the exhibits attached to this Agreement or any task orders, the terms and conditions of this Agreement will control over the terms and conditions of the attached exhibits or task orders. ARTICLE 4 PERIOD OF SERVICE This Agreement shall become effective upon execution of this Agreement by OWNER and COLLECTOR and upon issuance of a notice to proceed by OWNER, and shall remain in force for the period which may reasonably be required for the completion of the services described herein, including Additional Services, if any, and any required extensions approved by OWNER. This Agreement may be sooner terminated in accordance with the provisions hereof. Time is of the essence in this Agreement. COLLECTOR shall make all reasonable efforts to complete the services set forth herein as expeditiously as possible and to meet the schedule(s) established by OWNER, acting through its City Manager or his designee. ARTICLE 5 COMPENSATION A. COMPENSATION TERMS: "Collection Expenses" is defined as expenses incurred by COLLECTOR in the collection process incident to the work required under the Scope of Services, including but not necessarily limited to labor, postage, telephone, skip tracing, and insurance. 2. "Trust Account" is defined as the account established by OWNER for deposit of payments received by COLLECTOR on collection accounts. B. BILLING AND PAYMENT: PRIMARY PAYMENT: For and in consideration of the collection services to be performed by COLLECTOR herein, OWNER agrees that COLLECTOR will be paid a contingent fee equal to 30% (thirty percent) of revenues collected by COLLECTOR on the collection accounts referred to COLLECTOR by OWNER. COLLECTOR shall invoice OWNER for the previous month's collections within 15 calendar days from final OWNER confirmation of payments. Payment by OWNER of this contingent fee from the Trust Account shall constitute the "Primary Payment" to COLLECTOR. Invoices for Primary Payments are due and payable within 30 days of receipt by OWNER. 2. SUPPLEMENTAL PAYMENT: In addition, at the time it makes its Primary Payment, OWNER shall pay COLLECTOR an amount equal to 30% of the amounts paid PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 4 of 11 directly to OWNER during that same month relating to collection accounts previously referred to COLLECTOR, so long as COLLECTOR has made one or more contacts with the debtor prior to the OWNER's receipt of payment. For purposes of this paragraph, it is presumed by both parties that COLLECTOR has not made any contact with a debtor within the first 7 calendar days following referral of a collection account by the OWNER. The OWNER shall report to COLLECTOR all payments received relating to collection accounts and the date such payments were received. In the event COLLECTOR believes it has made contact with some debtor who submitted payment directly to the OWNER and for which it did not receive a corresponding Secondary Payment, it will notify the OWNER of: the identifying information of the account; the date of payment; and the amount believed owed to COLLECTOR. COLLECTOR will also supply the OWNER with evidence sufficient to establish that contact was made with that debtor. Proof of mailing of written correspondence is not sufficient to establish contact with a debtor without proof of actual receipt by the debtor or person submitting payment to the OWNER for satisfaction of a collection account. If appropriate evidence of contact with the debtor has been received by the OWNER at least 72 hours prior to the next supplemental payment becoming due under this provision, then the OWNER shall add the appropriate amount to next supplemental payment made to COLLECTOR; if not received at least 72 hours prior to issuance of a month's supplemental payment the OWNER may hold the funds until the following supplemental payment is due. In the event no payments for collection accounts are directly made to the OWNER during a calendar month, it shall report that to the COLLECTOR. 3. COLLECTOR agrees that in the event any debt underlying a collection account is forgiven, dismissed, or otherwise canceled by OWNER (for any reason or no reason at all), then COLLECTOR will not be paid or owed any amount (Primary Payment or Supplemental Payment) for that collection account. Partial payments to COLLECTOR may be made on the basis of detailed monthly statements rendered to and approved by OWNER through its City Manager or his designee; however, under no circumstances shall any monthly statement for services exceed the value of the work performed at the time a statement is rendered. Nothing contained in this Article shall require OWNER to pay for any work which is unsatisfactory, as reasonably determined by the City Manager or his designee, or which is not submitted in compliance with the terms of this Agreement. OWNER shall not be required to make any payments to COLLECTOR when COLLECTOR is in default under this Agreement. 4. COLLECTOR shall be solely responsible for payment of all Collection Expenses, which shall not be invoiced to OWNER. PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 5 of 11 ARTICLE 6 OBSERVATION AND REVIEW OF THE WORK COLLECTOR will exercise reasonable care and due diligence in discovering and promptly reporting to OWNER any defects or deficiencies in the work of COLLECTOR or any subcontractors. ARTICLE 7 OWNERSHIP OF DOCUMENTS All documents required to be prepared by COLLECTOR (and COLLECTOR's subcontractors) pursuant to this Agreement are instruments of service, and shall become the property of OWNER upon the termination of this Agreement. COLLECTOR is entitled to retain copies of all such documents, but is solely responsible for ensuring that any information made confidential by law is not improperly disclosed to any third party. ARTICLE 8 INDEPENDENT CONTRACTOR COLLECTOR shall provide services to OWNER as an independent contractor, not as an employee of the OWNER. COLLECTOR shall not have or claim any right arising from employee status, nor shall any of its employees, agents, or assigns. OWNER shall not control the means, methods, sequences, procedures, or techniques utilized by COLLECTOR to perform work or services under this Agreement or any associated task order. COLLECTOR is not authorized to receive requests for public information or records on behalf of OWNER. ARTICLE 9 AUDITS AND INSPECTION OWNER shall have the right to audit and make copies of the books, records and computations pertaining to this Agreement, but its right to audit COLLECTOR's records extends only to those materials dated 4 years prior to the OWNER's request to inspect. COLLECTOR shall retain such books, records, documents and other evidence pertaining to this Agreement during the contract period and five years thereafter (or for the time period required by law, whichever is longer), except if an audit is in progress or audit findings are yet unresolved, all applicable case records shall be kept until all audit tasks are completed and resolved. These books, records, documents and other evidence shall be deliverable to OWNER within 10 business days of written request. Further, COLLECTOR shall also require all Subcontractors, material suppliers, and other payees to retain all books, records, documents and other evidence pertaining to this Agreement, and to allow OWNER similar access to information relating to collection accounts. All books and records will be made available within a 50 mile radius of the City of Anna. Failure to comply with the provisions of this section shall be a material breach of this contract and shall constitute, in OWNER's sole discretion, grounds for termination thereof. PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 6 of 11 Each of the terms "books", "records", "documents" and "other evidence", as used above, shall be construed to include drafts and electronic files, even if such drafts or electronic files are subsequently used to generate or prepare a final printed document. The right to audit provided under this section does not extend to any information held by COLLECTOR or a third party providing goods or services to COLLECTOR if said information does not reference OWNER or a debtor/collection account referred by OWNER, nor does it extent to any records not containing information obtained for the sole purpose of performing the services encompassed by this Agreement. ARTICLE 10 INDEMNITY AGREEMENT COLLECTOR shall indemnify, defend, and save and hold harmless OWNER and its officers, agents, and employees from and against any and all liability, claims, demands, damages, losses, and expenses, including, but not limited to court costs and reasonable attorney fees incurred by the OWNER, that is caused by or results from an act of negligence, intentional tort, intellectual property infringement, or failure to pay a subcontractor or supplier committed by the COLLECTOR or the COLLECTOR'S agent, another COLLECTOR under contract, or another entity over which the COLLECTOR exercises control. Nothing in this Agreement shall be construed to create a liability to any person who is not a party to this Agreement, and nothing herein shall waive any of the parties' defenses, both at law or equity, to any claim, cause of action, or litigation filed by anyone not a party to this Agreement, including but not limited to the defense of governmental immunity, which defenses are hereby expressly reserved. ARTICLE 11 INSURANCE During the performance of the services under this Agreement, COLLECTOR shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with Best Rate Carriers of at least an A- or above: A. Comprehensive General Liability Insurance with bodily injury limits of not less than $500,000 for each occurrence and not less than $500,000 in the aggregate, and with property damage limits of not less than $100,000 for each occurrence and not less than $100,000 in the aggregate. B. COLLECTOR shall furnish insurance certificates or insurance policies at OWNER's request to evidence such coverages. The insurance policies shall name OWNER as an additional insured on all such policies, and shall contain a provision that such insurance shall not be canceled or modified without 30 days' prior written notice to OWNER and COLLECTOR. In such event, COLLECTOR shall, prior to the effective date of the change or cancellation, serve substitute policies furnishing the same coverage. PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 7 of 11 ARTICLE 12 TERMINATION OF AGREEMENT A. OWNER may at any time withdraw any collection account from the scope of services authorized to be provided by COLLECTOR. B. Notwithstanding any other provision of this Agreement, either party may terminate by giving 30 days' advance written notice to the other party. C. If the Agreement is terminated, COLLECTOR shall immediately cease all services and shall render a final bill for services to OWNER within 30 days after the date of termination. OWNER shall pay COLLECTOR for all services properly rendered and satisfactorily performed and incurred prior to the date of termination, in accordance with Article 5 "Compensation." Should OWNER subsequently contract with a new COLLECTOR for the continuation of services relating to this Agreement, COLLECTOR shall cooperate in providing information. COLLECTOR shall turn over all documents prepared or furnished by COLLECTOR pursuant to this Agreement to OWNER on or before the date of termination, but may maintain copies of such documents for its use. ARTICLE 13 ARTICLE 13 DELETED INTENTIONALLY ARTICLE 14 NOTICES All notices, communications, and reports required or permitted under this Agreement shall be personally delivered or mailed to the respective parties by depositing same in the United States mail to the address shown below, certified mail, return receipt requested, unless otherwise specified herein. Mailed notices shall be deemed communicated as of three days after mailing: To COLLECTOR: Gregory L. Pitchford Chief Financial Officer American Municipal Services 3724 Old Denton Rd Carrollton, Texas 75007 To OWNER: City Manager City of Anna 111 North Powell Parkway P.O. Box 776 Anna, Texas 75409 All notices shall be deemed effective upon receipt by the party to whom such notice is given, or within three days after mailing, whichever date occurs first. ARTICLE 15 ENTIRE AGREEMENT PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 8 of 11 This Agreement constitutes the complete and final expression of the Agreement of the parties, and is intended as a complete and exclusive statement of the terms of their Agreements, and supersedes all prior or contemporaneous offers, promises, representations, negotiations, discussions, communications, and Agreements which may have been made in connection with the subject matter hereof. ARTICLE 16 SEVERABILITY If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the parties shall reform this Agreement to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing the intention of the stricken provision. ARTICLE 17 COMPLIANCE WITH LAWS COLLECTOR shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereinafter be amended. ARTICLE 18 DISCRIMINATION PROHIBITED In performing the services required hereunder, the COLLECTOR shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. ARTICLE 19 PERSONNEL A. COLLECTOR represents that it has or will secure, at its own expense, all personnel required to perform all the services required under this Agreement. Such personnel shall not be employees or officers of, or have any contractual relations with OWNER. COLLECTOR shall inform OWNER of any conflict of interest or potential conflict of interest that may arise during the term of this Agreement. B. All services required hereunder will be performed by COLLECTOR or under its supervision. All personnel engaged in work shall be qualified, and shall be authorized and permitted under state and local laws to perform such services. ARTICLE 20 ASSIGNABILITY PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 9 of 11 COLLECTOR shall not assign any interest in this Agreement, and shall not transfer any interest in this Agreement (whether by assignment, novation, or otherwise) without the prior written consent of OWNER. ARTICLE 21 MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith, and no evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, and unless such waiver or modification is in writing and duly executed; and the parties further agree that the provisions of this section will not be waived unless as set forth herein. ARTICLE 22 MISCELLANEOUS A. The following exhibits are attached to and made a part of this Agreement: None. B. Venue of any suit or cause of action under this Agreement shall lie exclusively in Collin County, Texas. This Agreement shall be construed in accordance with the laws of the State of Texas. C. OWNER shall assist COLLECTOR by placing at COLLECTOR's disposal all available information pertinent to the services rendered pursuant to this Agreement, including previous reports, any other data relative to the collection accounts and arranging for the access thereto. D. COLLECTOR shall at all times maintain OWNER'S confidential or proprietary information, including but not limited to account numbers for debtors, in strictest confidence and shall disclose same to third parties only as specifically instructed by OWNER. Any disclosure of privileged or confidential information by OWNER to COLLECTOR is in furtherance of OWNER's purposes and is not intended to and does not waive any privileges that may exist with regard to such information. E. The captions of this Agreement are for informational purposes only, and shall not in any way affect the substantive terms or conditions of this Agreement. IN WITNESS HEREOF, the City of Anna, Texas has caused this Agreement to be executed by its duly authorized City Manager, and COLLECTOR has executed this Agreement through its duly authorized undersigned officer on this the day of S -aEK /�- CITY OF ANNA, TEXAS PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 10 of 11 ATTEST: CARRIE SMITH, CITY SECRETARY—,, AMERICAN MUNICIPAL SERVICES CORPORATION By (Printed name), its President WITNESS: PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 11 of 11