HomeMy WebLinkAboutR-1999-056 AGREEMENT FOR OBTAINING PROFESSIONAL COLLECTION SERVICES.RESOLUTION NO. R-99-56
A RESOLUTION authorizing the City Manager to execute an agreement with Yakima
County Credit Service, Inc., a Washington corporation, dba YCCS - A
National Collection System, for the purpose of obtaining professional
collection services.
WHEREAS, the City needs professional collection services to collect debts owed to the
following City agencies: the City Utility Account Office, Animal Control and Parking
Enforcement, Treasury, and Central Accounts, all of the Finance Department; Municipal Court;
Code Administration Division of the Community and Economic Development Department,
and the -Parks and Recreation Division of the Public Works Department; and
WHEREAS, YCCS has experience and expertise regarding said collection services, and
agrees to perform these services for the City under the terms and conditions set forth in the
attached agreement; and
WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to
contract with YCCS for professional collection services to collect debts owed to the City in
accordance with the terms and conditions of the attached agreement, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager of the City of Yakima is hereby authorized and directed to execute
the attached and incorporated "Collection Services Agreement" with YCCS for the purpose of
obtaining professional collection services.
ADOPTED BY THE CITY COUNCIL this d3 day of
Al LEST: John Puccinelli, Mayor
�f— ,1999.
City Clerk
(110m/collecton yam 99-p..
COLLECTION SERVICES AGREEMENT
THIS COLLECTION SERVICES AGREEMENT, hereinafter "Agreement", is made and
entered into by and between the City of Yakima, a Washington State municipal corporation,
hereinafter the "City", and Yakima County Credit Service, Inc., a Washington corporation, dba
YCCS — A National Collection System, hereinafter "YCCS".
WHEREAS, the City needs professional collection services to collect debts owed to the
following City agencies: the City Utility Account Office, Animal Control and Parking
Enforcement, Treasury, and Central Accounts, all of the Finance Department; Municipal Court;
Code Administration Division of the Community and Economic Development Department,
and the Parks and Recreation Division of the Public Works Department.
WHEREAS, YCCS has experience and expertise regarding said collection services, and
agrees to perform these services for the City under the terms and conditions set forth in this
Agreement.
NOW, THEREFORE, in consideration of the mutual covenants, conditions, promises,
and agreements set forth herein, it is agreed by and between the City and the YCCS as follows:
1. Scope of Services. YCCS shall provide the following collection services to the City:
a. YCCS will provide a monthly or weekly listing of all monies collected on
behalf of the City during the preceding month or week. The listing shall
have the following information: Division type, account type, total
collected, and date any sum is collected for each account.
b. YCCS will provide the City an acknowledgement of all accounts assigned
within the past month.
c. YCCS will provide the City a monthly report of all accounts canceled or
returned to the City within the past month. The report will clearly
identify each account, the date the account was returned to the City, the
account balance and a reason why no further collection effort is
anticipated.
d. YCCS will provide the City a semi-annual listing by City division or type
of collection account of all accounts assigned to YCCS. The report will
state the following information: identification of each account, date each
account was assigned, client case number, status of each account, amount
of each account placed for collection, payments and balance owing on
each account.
e. YCCS will notify the City when legal action is commenced on an account.
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f. YCCS will permit the City to utilize its check verification system and
database at 110 charge to the City.
g.
YCCS will provide and install two (2) Credit Card and ATM machines
with printers for the City's use. All costs associated with the purchase,
installation, and all transaction fees will be paid by YCCS.
h. YCCS will maintain an office or local representative within the Yakima
area for performing the collection services required herein during the life
of this Agreement.
2. Allocation and Assignment of Debts/Accounts by the City. The basis upon which
debts/accounts are assigned by the City to YCCS for collection is strictly within the discretion
of the City. Prior to assignment of a debt/account to YCCS for collection, the City shall attempt
to advise the debtor of the existence of the debt/account, and that the debt/account may be
assigned for collection if not paid.
3. Consideration. No fees will be charged to the City by YCCS to provide the collection
services provided pursuant to this Agreement.
a. With regard to City of Yakima Municipal Court, the City will endeavor to
assess as costs and fees those allowable pursuant to RCW 3.02.045(5).
YCCS will use its best efforts to collect the amount of this debt plus costs
and fees properly assessed and chargeable to the debtor. On accounts
referred from City of Yakima Municipal Court, the City shall be entitled
to 90% of all fines, forfeitures, costs, assessments, penalties and/or
restitutions for each account prior to distribution or crediting the agency
collection charges or any part thereof for said account.
b. Added Fee. When authorized by law, YCCS' fee will be added by the
agency to the principal amount of the debt assigned to the agency and,
on such accounts, YCCS shall not receive any fee in addition to the fee
authorized to be charged to the debtor (RCW 19.16.500).
c. Interest. Interest accrued on this account shall be shared on a 50/50 basis
between the City and YCCS.
d. Automated Check Verification No Charge
e. Dishonored Check Collection No Charge
Rebate for collected checks while
with our service $20.00 per check
f. Non -Collected Accounts. No fee will be charged for accounts not
collected.
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g.
Full Efforts. YCCS will pursue full efforts to collect accounts, including
skip -tracing.
YCCS has no authority to and will not engage in compromise settlement arrangements
without written authorization from the City. The City shall have no responsibility for
uncollected costs advanced by YCCS.
4. Term of Agreement. The term of this Agreement shall commence upon January 1, 1999
and shall terminate at midnight, December 31, 2002, unless sooner terminated by either party in
accordance with Section 18 of this Agreement.
5. Audit. Upon five (5) calendar days notice, the City's Customer Service Manager or his
designee shall have the right to audit and/or inspect all of the records, documents, computer
records, and other similar material controlled, maintained, and/or in the possession of YCCS
pertaining to the collection services required under this Agreement.
6. License and Bonding Requirements. YCCS represents that it is licensed and bonded
and shall remain so licensed and bonded during the term of this Agreement in accordance with
and as required by RCW 19.16.110 and RCW 19.16.190 respectively.
7. Status of YCCS. YCCS and the City understand and expressly agree that YCCS is an
independent contractor in the performance of each and every part of this Agreement. YCCS
and its officers, employees, agents, instructors, and subcontractors shall make no claim of City
employment nor shall claim any related employment benefits, social security, and/or
retirement benefits.
8. Taxes and Assessments. YCCS shall be solely responsible for compensating its
employees and for paying all related taxes, deductions, and assessments, including but not
limited to, federal income tax, FICA, social security tax, assessments for unemployment and
industrial injury, and other deductions from income which may be required by law or assessed
against either party as a result of this Agreement. In the event the City is assessed a tax or
assessment as a result of this Agreement, YCCS shall pay the same before it becomes due.
9. Non -Discrimination. During the performance of this Agreement, YCCS shall not
discriminate in violation of applicable federal, state, and/or local law and/or regulation on the
basis of race, age, color, sex, religion, national origin, creed, marital status, political affiliation,
or the presence of any sensory, mental or physical handicap. This provision shall include but
not be limited to the following: employment, upgrading, demotion, transfer, recruitment,
advertising, layoff or termination, rates of pay or other forms of compensation, selection for
training, and the provision of collection services under this Agreement.
10. Compliance With Law. YCCS agrees to perform all services under and pursuant to this
Agreement in full compliance with any and all applicable laws, rules, and regulations adopted
or promulgated by any governmental agency or regulatory body, whether federal, state, local,
or otherwise.
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11. No Insurance provided by City. It is understood the City does not maintain liability
insurance for YCCS and/or its officers, employees, agents and/or subcontractors.
12. Indemnification and Hold Harmless. YCCS agrees to hold harmless, indemnify, and
defend the City, its elected officials, officers, employees, and agents from and against any and
all suits, actions, claims, liability, damages, judgments, costs and expenses (including
reasonable attorney's fees) which result from or arise out of the negligence of YCCS, its officers,
employees, agents, and subcontractors in connection with or incidental to the performance or
non-performance of the terms, conditions, duties, and obligations of this Agreement.
13. Insurance provided by YCCS. On or before the date this Agreement is fully executed
by the parties, YCCS shall provide the City with a certificate of insurance as proof of
commercial liability insurance with a minimum liability limit of One Million Dollars
($1,000,000.00) combined single limit bodily injury and property damage. The certificate shall
clearly state who the provider is, the amount of coverage, the policy number, and when the
policy and provisions provided are in effect (any statement in the certificate to the effect of "this
certificate is issued as a matter of information only and confers no right upon the certificate
holder" shall be deleted). Said policy shall be in effect for the duration of this Agreement. The
policy shall name the City, its elected officials, officers, agents, and employees as additional
insureds, and shall contain a clause that the insurer will not cancel or change the insurance
without first giving the City thirty (30) calendar days prior written notice (any language in the
clause to the effect of "but failure to mail such notice shall impose no obligation or liability of
any kind upon the company" shall be crossed out and initialed by the insurance agent). The
insurance shall be with an insurance company or companies rated A -VII or higher in Best's
Guide and admitted in the State of Washington.
14. Assignment. This Agreement, or any interest herein, or claim hereunder, shall not be
assigned or transferred in whole or in part by YCCS to any other person or entity without the
prior written consent of the City. In the event that such prior written consent to an assignment
is granted, then the assignee shall assume all duties, obligations, and liabilities of YCCS as
stated herein.
15. Severability. If any portion of the Agreement is changed per mutual agreement or any
portion is held invalid, the remainder of the Agreement shall remain in full force and effect.
16. Integration and Supersession. This Agreement sets forth all of the terms, conditions,
and agreements of the parties relative to the subject matter hereof and supersedes any and all
such former agreements which are hereby declared terminated and of no further force and
effect upon the execution and delivery hereof. There are no terms, conditions, or agreements
with respect thereto, except as herein provided and no amendment or modification of this
Agreement shall be effective unless reduced to writing and executed by the parties.
17. Non -Waiver. The waiver by YCCS or the City of the breach of any provision of this
Agreement by the other party shall not operate or be construed as a waiver of any subsequent
breach by either party or prevent either party thereafter enforcing any such provision.
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18. Termination. Either party may terminate this Agreement, with or without cause, by
giving the other party ten (10) days advance written notice of termination.
19. Survival. Any provision of this Agreement which imposes an obligation after
termination or expiration of this Agreement shall survive the term or expiration of this.
agreement and shall be binding on the parties to this Agreement.
20. Notices. Unless stated otherwise herein, all notices and demands shall be in writing
and sent or hand -delivered to the parties at their addresses as follows:
To City:
To YCCS:
Bert Tabayoyon
Customer Service Manager
Yakima City Hall
129 North Second Street
Yakima, WA 98901
Sheila Burns
President
Yakima County Credit Service, Inc.
2021 South Third Avenue
Yakima, WA 98909
or to such addresses as the parties may hereafter designate in writing. Notices and/or
demands shall be sent by registered or certified mail, postage prepaid or hand -delivered. Such
notices shall be deemed effective when mailed or hand -delivered at the addresses specified
above.
21. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Washington.
22. Venue. The venue for any action to enforce or interpret this Agreement shall lie in the
Superior Court of Washington for Yakima County,. Washington.
CITY OF YAKIMA
R. A. Zais,Jfity Manager
By:
Date:
ATTEST:
City Clerk
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YAKIMA COUNTY CREDIT SERVICE,
INC., dba YCCS - A National Collection
System
By:
Date:
Sheila Burns, President
CIT CONTRACT NO: 99-57
RESOLUTION NO: R-9 9- 56
STI )C
Customer S, rvM•r, Churl
I -- Februttry a. 1990
How Fees
Affirmative
Nance/Experience
Fees for Collection
are Paid
Public Clients
Reports
Action Plan
Other Services
Training
YCCS
"No Chg" regular collection
Gross check or
Yakima County PW;
Yes
None included
Automated check
Will
2021 S. 3rd Ave.
"No Chg" legal action
net check, based
Yakima County Sheriffs;
Included
-- statement of
verification system*;
customize a
P.O. Box 9244
"No Chg" outside of area
on client needs.
Yakima County
non-
credit card system;
training
Yakima. WA 98909
248-1610
"No Chg" uncollectable accounts
"No Chg" NSF checks +$20.00 rebate
Superior Court,
Yakima County
discrimination
and equal
annual review with each
department;
program,
training
Contact: Susan Huerd
Muriel Watts
23 Years at YCCS
District Court;
City of Yakima;
City of Wapato
opportunity
employer.
Company is
skip tracing; will have
installed ATM machines.
materials,
books, tapes,
videos.
Volume of
Municipal Court;
City of Moxee
Municipal Court;
100% women
and minority
owned.
Accounts: 59,170
$ Amount: $17,929,698
Chelan Municipal Court;
Chelan County PUD;
City of Sunnyside
Municipal Court;
City of Union Gap
* This system was
available previously; the
equipment was delivered
but was never utilized by
the Treasurers Office.
Probation Dept.
Evergreen Financial
"No Chgregular collection
Gross check
Benton County PUD;
Yes, some
None -- equal
Skip tracing;
Training
Services, Inc.
"No Chg" legal action
City of Selah;
included.
opportunity
"Collectability Scoring;"
seminars
1214 N. 16th Ave.
"No Chg" outside of geographical area
City of Grandview;
employer.
National change of
annually;
P.O. Box 9073
"No Chg" cancellation of account
City of Wapato;
address;
training as
Yakima, WA 98909
452-6574
(a nominal fee for cancellation where
legal authorization has been given)
Chelan County PUD;
City of Wenatchee;
Bilingual office;
NSF check collections;
needed.
Contact: Debbie Maybee
"No Chg" NSF checks +$17.50 rebate
City of Kittitas;
Web page:
(577-7167)
PUD Kittitas County:
Remote access to EFS
Joel Beath (574-3901)
Kittitas Municipal Court:
System:
28 Years
Kittitas County
Daily pick-up;
Superior Court;
Klickitat County
Electronic downloading
of "DISCIS."
Volume of
Superior Court;
Accounts: 125,426
Others.
$ Amount: $1 1.1 19,200
STI )C
Customer S, rvM•r, Churl
I -- Februttry a. 1990
Name/Experience
Fees for Collection
How Fees
are Paid
Public Clients _
Reports
Affirmative
Action Plan
Other Services
Training
Training. can
be made
available, no
charge.
Allied Credit Companies
609 S. 48th Ave. Ste.0
Yakima, WA 98908
Corporate Hdqtrs.
P.O. Box 2449
Gig Harbor, SNA 98335
Contact: Susie Jensen
(253) 620-2208
(800)456-8838 Ext.2208
48 Years
(Local office opened in 1994.)
Volume of
Accounts: 263,000
$ Amount: $160,000,000
"No Chg" regular collection
"No Chg" uncollectable accounts
"No Chg" legal action
"No Chg" forwarded accounts
Gross check:
Net check.
"Many Courts Listed"
Can provide a copy of
listing„ if needed.
Yes,
included.
None --
statement of
equal
opportunity
employer
Skip tracing;
"Account Flow
Manager" system:,
automatic access dialing
system; "Quick Check;
accepts credit card
payments; legal
management system;
garnishment
management system.
Acctcorp Inc.
P.O. Box 2425
Yakima, WA 98907
576-8933
Contact: Jack Smith
(Franchise for 7 years) Since July
1997 locally.
Volume of
Accounts: No info.
$ Amount: No info.
"No Chg" regular collection
"No Chg" returned checks
"No Chg" legal action
Fee for collection will be paid by
debtor.
100% of debt
owed.
City of Vancouver;
Clark Public Utilities;
City of Port Angeles;
City of Sequim (new);
City of Riverton, UT.
Yes, as
needed and
included.
None
indicated,
no statement
included.
Call and letter program;
Merchants Alert Check
Services (MACS)
available.
Can be an
ongoing
project.
Action Collectors
702 W. Walnut
P.O. Box 2365
Yakima. WA 98907
248-6910
Contact: Larry Huard
23 Years
Volume of
Accounts: 3,198
$ Amount: $1,089.427
Commission rate:
30% regular collection
40% legal
50% on accounts assigned out -of -area
"No Chg" for accounts returned within
30 days
10% of principal on accounts returned
over 30 days
Net check,
100% on checks
+ $10
None
Yes, as
needed and
included.
Letter of
obser-
vation and
analysis.
None
None indicated.
None
indicated.
sroc
Customer Seniers Chart
2 • rd,ruan 2 ISWN
Name/Experience
Fees for Collection
How Fees
are Paid
Public Clients
Reports
Affirmative
Action Plan
Other Services
Training
Yakima Adjustment Service
"No Chg" regular collection
Per individual
Providence Medical Center;
Yes, as
Statement of
Skip tracing;
Training
309 W. Lincoln Ave.
"No Chg" litigation
department
Yakima Valley Farmworkers
needed.
affirmative
credit reporting;
programs can
Yakima. WA 98902
248-0400
"No Chg" returned accounts
needs.
Clinic
None
included.
action and
equality
legal action;
client training;
be provided.
Contact: Mark Littleton
51 Years
Volume of
40% out of geographical area
Fee for collection will be paid by
debtor.
Weekly. monthly
department
option.
opportunity
employer.
bilingual collectors.
Accounts: 15,000
$ Amount: $5.5 million
_
Commercial Collection
Option I:
Net check or
Chelan County
Yes, as
Affirmative
Check Rite;
Training
Services, Inc,
"No Chg" regular collection
gross check, per
District Court;
needed,
action
skip tracing; bilingual
programs for
203 N. 4th Ave.
"No Chg" returned accounts
department
Chelan County
not
statement of
collector.
staff can be
P.O. Box 2587
"No Chg" litigation
needs.
Sheriffs Dept.;
included.
non-
provided.
Yakima, WA 98907
"No Chg" dishonored checks
Connell
discrimination
Provide consultant/ staff
248-7131
Contact: Tim Carson
Check fee $20.00 returned to the City.
Municipal Court;
Chelan County PUD;
and equal
opportunity
member for support.
Albert Rookard
53 Years
Option I1-- Contingency Rate:
1st 30 days regular collection -- 5%
Okanogan County PUD.
employer.
Options for using credit
cards for payments.
After 30 days regular collection --23%
Volume of
Accounts: 77,043
Legal action -- 30%
Out-of-State 40%
Time payment
management options.
$ Amount: $15,202,874
Returned/canceled accts.-- No Chg
Fee for collection will be paid by
debtor.
smc
Cuvnn,er Srnarrs Chad
3 -- IcI.nlan 3. tient
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 9
For Meeting Of 4/20/99
1fEM'1'1'1LE: A Resolution authorizing the execution of an agreement for "Collection Agency" Services
SUBMITTED BY: Department of Finance & Budget
CONTACT PERSON/TELEPHONE: Bert Tabayoyon, Customer Services Manager/6080
SUMMARY EXPLANATION:
An RFP for Collection Services was issued in an effort to obtain continued city-wide centralized collection
services at a reasonable rate, as well as affording other collection agencies an opportunity to make a proposal
for providing collection services for the City. A team consisting of members from the Finance, Code
Administration, Customer Services Division and Municipal Court reviewed the responses to the RFP.
Responses to the RFP were received from Yakima County Credit Service (YCCS), Yakima Adjustment
Service, Action Collectors, Acctcorp Inc,. Evergreen Financial Services, Inc., Allied Credit Companies and
Commercial Collection Service, Inc. Attached is a worksheet comparing responses to key information
requested for the City through the RFP. All firms were responsive and demonstrate the ability and capacity to
handle a large volume of uncollectable accounts as well as providing requested services. All respondents
maintain a local office as requested.
YCCS has provided collection services for the City since May, 1994. We have a good working relationship
with them and have experienced a fairly good collection return on assigned accounts. Staff is recommending
YCCS - A National Collection System to provide collection services for the next four years. Under
RCW 19.16.500 collection agency fees may be added on to the principal amount of the debt assigned. The
collection agency collects the debt and the fee and the City then receives 100% of the debt assigned. The
agency retains the difference as the fee for collection services. The fee will vary with respect to the amount of
the debt assigned.
For example:
A debt of $100 assigned to collection becomes $150 when collected from the debtor. When payment is made
to the collection agency, the City receives 100% of the original assignment of $100 and the collection agency
retains the difference of $50 as the fee for collection. No charge to the City for collection of this debt.
On collections assigned by the City Municipal Court, the City will receive 100% of the debt assigned. On time
payment schedules, the City will receive 90% of the debt before the agency receives payment for any
collection services. The City will receive the balance of the total debt assigned on the last payment.
All collection fees will be collected from the debtor under the new agreement.
Resolution X Ordinance Contract X Other (Specify) Agreement / Worksheet
Funding Source General Fund (budgeted
APPROVED FOR SUBMITTAL:
N
City Manager
STAFF RECOMMENDATION: Approve resolution to enter into an agreement with YCCS.
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION:
Legal/BD/CS