HomeMy WebLinkAbout10/15/2013 05D Debt Collection Services Agreement with Professional Credit Services y
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. S ,j
For Meeting of: 10/15/2013
ITEM TITLE: Resolution authorizing an agreement with Professional Credit
Services for debt collection services.
SUBMITTED BY: Cindy Epperson, Director of Finance & Budget
Colleen Bailey, Purchasing Buyer II
SUMMARY EXPLANATION:
The City of Yakima requires a professional services contract for debt collection. The City has
used YCCS for collection services since 1994. The contract term is expired and we felt it was
prudent to advertise for proposals, especially when considering the improvements in
technology. The City sent out a request for proposals from professional debt collection service
agencies, asking how they would facilitate payments on delinquent accounts owed to the City
from the Utility Services Office, Animal Control, Parking Enforcement, Treasury, Central
Accounts, Finance Department, Code Administration, Parks and Recreation, and Transit.
The Purchasing Division advertised a Request for Proposals, which were due on June 13,
2013. Please see attached Memorandum with Recommendation of Award outlining the
evaluation process (Attachment A). The selected proposer will work with the City to provide
services as specified in the RFP scope of work.
The evaluation committee reviewed and scored the proposals received, and recommend award
to Professional Credit Services (PCS). The attached resolution authorizes the City Manager to
execute the contract. This will be a change in service provider, so there will be an
implementation process and a review of the business processes as we go through this
transition. There is no direct cost to the City for collection services, as the agency adds on its
fee to the customer - -PCS had the lowest fee structure for our customers.
Resolution: X Ordinance:
Other (Specify):
Contract: X Contract Term: 5 Years
Start Date: October 15, 2013 End Date: October 14, 2018
Item Budgeted: NA Amount:
Funding Source/Fiscal Customer fees paid directly to the collection
Impact: agency.
Strategic Priority: NA
Insurance Required? No
Mail to: Professional Credit Service, 400 International Way,
Springfield, OR 98477
Phone:
APPROVED FOR
City Manager
SUBMITTAL:
RECOMMENDATION:
Adopt Resolution
ATTACHMENTS:
Description Upload Date Type
Resolution - Authorization to Approve Debt
LII 9/25/2013 Resolution
Collection Services
Memo to CM for Award Recommendation - Debt
9/25/2013 Cover Memo
Services
El Debt Collection Agreement 9/25/2013 Contract
RESOLUTION NO. R -2013-
A RESOLUTION making an award for Request for Proposals 11319 -P and
authorizing the City manager to execute an agreement between
City of Yakima and Professional Credit Services for debt collection
services.
WHEREAS, the City of Yakima has a need for debt collection services in multiple
departments including Finance and Code Administration; and
WHEREAS, the Purchasing Division, advertised a Request for Proposals, which
were due on June 13, 2013; and
WHEREAS, proposals were received from the following five (5) proposers:
• Chapman Financial Services
• Evergreen Financial Services
• Professional Credit Service
• Yakima Adjustment Services
• YCCS
WHEREAS, an Evaluation Process was completed and it is recommended by the
Evaluation Committee and the City Manager that the City proceed with a contract award
to Professional Credit Services ; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized to execute an agreement with Professional Credit
Services to provide debt collection services for City of Yakima, a copy of the Agreement
with all relevant attachments is attached hereto and by reference made a part hereof,
now, therefore,
ADOPTED BY THE CITY COUNCIL this 15 day of October, 2013.
ATTEST: Micah Cawley, Mayor
Sonya Claar -Tee, City Clerk
5i(!i(?('.ti()11 (:()IinurrliiitE!( I inr((?rit t()
Mr, O'Rourke,
On May 18, 2013 the City solicited RFP No. 11319 to "tire an A/E fil to conduct Debt
Collection Services for the Debt Collection Services for rinuitiple City Departnserits„
Pike proposals were received on the title date of June 13, 2033 for the above project from the
followirig firms:
Chap trials Financial Se 'cgs S (agorae WA
Evergreen Financial Services, Yakima, WA
Professional Credit Services, Sarin- ield OR
Yakirria Adjustrriertt Services, Yakirria, WA
YCCS, Yakirria WA
The an lysis comutittee was formed and gi'ven materials and instructions on how to conduct
the analysis and score the proposals on August 29, 2013, Committee rylemisers:
Kath y Miles
Tamrriy Realtribal
Royale Schneider
The proposals were checked for responsiveness by Colleen Batley and deeined to be
responsive.
The proposals ere scored Dace, rtilir the fcilow n scoring matrix F as listed in the RFP,
] , C °asts, irlelading props, rrrrt r ri o ir•r. sat , adrrritristratite, irrtprie rertt ti i 20 paint;
and trrrirrirr costs_ Cost of r tic m
12 References, detrionMatiriris, ditclitnentraitte, %forking relations and deperidabiliff
irntWs
as-rson al ilit stability, capacity( and skill of the "(x r.. -tor to provide the service
coquina-I for nitiltirdent errtal government unit_ .Appropriate licetiSltre be the Sittecit
1.3 l3r . cirrirr and iirr lententatior lalar, techrrr to r?a , and evt xrmio =s. is plicity i.md 30 po ints
east cif adaptation with which the proposed debt collection tir c l .rr°et and piactices
meet with the specifications in this RFP Acreass mid use of t chrrorlrt syst s to
irrr r debt ectilecticm efforts and crarrz..crirrrrication with the ("itg rat`Y kitrra.
I „rl Igesitorisittre to the proposal, Completeness arid orrirr rrr s used t meet the #:
specifications in this I
1 5 points
TOTAL 1 100 points
Out of 300 possible paints ( 00 teal points for each evaluator), the firms scored as followed:
Chu *marl Financial Services 242
Evergreen Financial Services 740
Professional Credit Services 245
Yakima dfrastrnent Services
YCCS 215
Professional Credit Senrices was the ii ian moos winner_
The committee -.: cirtirtterids that we proceed to contract negotiations with Professional
Credit 'Services.
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APP lOVEDi
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Tony Oi .1111 11 1, , T._ _ ke,, City Manager Dote
AGREEMENT
For:
DEBT COLLECTION SERVICES
for:
PROPOSAL NO. 11319 -P
YAKIMA, WASHINGTON
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DEBT COLLECTION SERVICES AGREEMENT
THIS DEBT 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 Professional Credit Services, hereinafter
"CONTRACTOR ".
WHEREAS, the City needs professional debt 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; Code
Administration Division of the Community and Economic Development Department, and the
Parks and Recreation Division of the Public Works Department.
WHEREAS, CONTRACTOR has experience and expertise regarding said debt 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 CONTRACTOR as
follows:
1. Definitions/Interpretation
For the purposes of this Contract and any additional instruments that may become a part of
this Contract, the terms "contractor ", "proposer ", and "vendor" shall be interchangeable.
The terms "buyer ", "purchaser", "procuring agency ", "Owner", "City of Yakima ", and
"City" shall be interchangeable.
2. Contract Documents
The City of Yakima Request For Proposals No. 11319 -P and the Contractor's proposal (to
the extent consistent with the City's documents) and any addenda are hereby incorporated
herein by this reference. Specific federal and state laws and the terms of this Contract, in
that order respectively, supersede other inconsistent provisions. This Contract is on file in
the Purchasing Office, 129 No. 2nd St., Yakima, Washington, 98901.
3. Allocation and Assignment of Debts /Accounts by the City
The basis upon which debts /accounts are assigned by the City to CONTRACTOR for
collection is strictly within the discretion of the City. Prior to assignment of a
debt/account to CONTRACTOR 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 debt
collection if not paid.
4. Consideration
No fees will be charged to the City by CONTRACTOR to provide the debt collection
services provided pursuant to this Agreement.
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a. Added Fee. When authorized by law, CONTRACTOR' fee will be added
by the agency to the principal amount of the debt assigned to the agency
and, on such accounts, CONTRACTOR 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 75/25 basis
between the City and CONTRACTOR.
d. Automated Check Verification No Charge
e. NSF Check Collection $40.00
f. Non - Collected Accounts. No fee will be charged for accounts not
collected.
g. Full and Best Efforts. CONTRACTOR will pursue full efforts to collect
accounts, including skip- tracing.
CONTRACTOR 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 CONTRACTOR.
5. Term of Agreement
The period of this contract shall be for a period of one year from its effective date. The
City may, at its option, extend the contract on a year to year basis for up to four
additional years provided, however, that either party may at any time during the life of
this contract, or any extension thereof, terminate this contract by giving thirty (30) days
notice in writing to the other party of its intention to cancel. Contract extensions shall be
automatic, and shall go into effect without written confirmation, unless the City provides
advance written notice of the intention to not renew. Prices shall remain firm for the first
twelve month period of the contract unless an exception is stated in the bid. Price
adjustment requests will only be reviewed and negotiated during annual contract renewal. If
no request is made for a price adjustment, the contract renewal at the existing
compensation value shall be automatic.
6. License and Bonding Requirements
Contractor represents that it is licensed and bonded and shall remain as 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. If applicable, successful Coordinator shall
have a valid and current business license per Chapter 5.02 Section 5.02.010 of the
Yakima Municipal Code covering this type of business and shall satisfy all applicable
City Code provisions. Said license shall be obtained prior to the award of any contract.
Inquiries as to fees, etc., should be made to the Office of Code Administration, telephone
(509) 575 -6121.
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7. Status of CONTRACTOR
CONTRACTOR and the City understand and expressly agree that CONTRACTOR is an
independent contractor in the performance of each and every part of this Agreement.
CONTRACTOR 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
CONTRACTOR 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, CONTRACTOR shall pay the same before it
becomes due.
9. Non - Discrimination
During the performance of this Agreement, CONTRACTOR 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, sexual orientation,
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 debt collection
services under this Agreement.
10. The Americans With Disabilities Act: With regard to the services to be performed
pursuant to this Agreement, Coordinator agrees to comply with the Americans With
Disabilities Act of 1990, 42 U.S.C. § 12101 et seq. (ADA) and its implementing
regulations, and Washington State's anti - discrimination law as contained in RCW
Chapter 49.60 and its implementing regulations. The ADA provides comprehensive civil
rights to individuals with disabilities in the area of employment, public accommodations,
state and local government services, and telecommunications.
11. Compliance With Law
CONTRACTOR 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.
12. No Insurance provided by City
It is understood the City does not maintain liability insurance for CONTRACTOR and /or
its officers, employees, agents and /or subcontractors.
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13. Professional Service
Defense & Indemnity Agreement: The Contractor agrees to defend, indemnify and save
harmless the City of Yakima /Yakima County, its appointed and elective officers and
employees, from and against all loss or expense, including but not limited to judgments,
settlements, attorney's fees and costs by reason of any and all claims and demands upon
the City of Yakima /Yakima County, its elected or appointed officials or employees for
damages, whether such damage is due to the negligence, or errors or omissions of the
Contractor, his /her subcontractors, its successor or assigns, or its or their agent, servants,
or employees, It is further provided that no liability shall attach to the City of
Yakima /Yakima County by reason of entering into this Contract, except as expressly
provided herein.
Professional Liability: The Contractor shall provide evidence of Professional Liability
insurance covering professional errors and omissions. Such policy must provide the
following minimum limits:
$1,000,000 per Claim
If insurance is on a claims made form, its retroactive date, and that of all subsequent
renewals, shall be no later than the effective date of this Contract.
14. Assignment
This Agreement, or any interest herein, or claim hereunder, shall not be assigned or
transferred in whole or in part by CONTRACTOR 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 CONTRACTOR 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 CONTRACTOR 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
A. Termination for Convenience. The City may terminate this Contract, in whole or in
part, at any time by thirty (30) calendar days written notice to the Contractor. The
Contractor shall be compensated in accordance with the terms of this Contract up to the
effective date of termination. Upon termination the Contractor shall return all
unresolved files, documents, and records previously provided to Contractor by the City
to the City in the same form as they were provided.
B. Termination for Default. If the Contractor fails to comply with any provision of this
Contract, the City may terminate this Contract for default without notice. Termination
for default shall be effected by delivering a notice of termination to the Contractor
setting forth the manner in which the Contractor is in default. The Contractor will only
be compensated for services performed in accordance with the manner of performance
set forth in this Contract subject to set off for damages caused to the City. If, after
termination for default, it is determined that the Contractor was not in default, the rights
and obligations of the parties shall be the same as if the termination had been issued for
the convenience of the City. Upon termination the Contractor shall return all
unresolved files, documents, and records previously provided to Contractor by the City
to the City in the same form as they were provided.
C. Opportunity to Cure. The City in its sole discretion may, in the case of termination for
default, allow the Contractor thirty (30) days, in which to cure the defect of service. In
such case, the notice of termination will state the nature of the default, the time period
in which cure is permitted, and other appropriate conditions. If the Contractor fails to
remedy to the City's satisfaction the default of any of the terms, covenants, or
conditions of this Contract within the stated period of time for remedy, the City may
terminate this Contract without any further obligation to the Contractor.
D. Waiver of Remedies for any Breach. In the event the City elects to waive its remedies
for any breach by the Contractor of any covenant, term or condition of this Contract,
such waiver by City shall not limit City's legal remedies for any succeeding breach of
that or of any other term, covenant, or condition of this Contract.
E. Remedies. A termination for convenience or default shall not in any way operate to
preclude the City from pursuing all other available legal remedies against the
Contractor and its sureties for default or breach of this Contract.
F. Contractor's Right to Terminate. The Contractor may terminate this Contract, in
whole, for any reason upon thirty (30) calendar days written notice to the City.
19. Resolution Of Disputes Or Breaches
Disputes arising in the performance of this Contract that are not resolved by agreement of
the parties shall be decided in writing by the City of Yakima Purchasing Manager. This
decision shall be final and conclusive unless within ten (10) calendar days from the date of
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receipt of its copy, the Contractor mails or otherwise furnishes a written appeal to the City
Manager. In connection with said appeal, the Contractor shall be afforded an opportunity
to be heard and to offer evidence in support of its position. Pending final decision of a
dispute hereunder, the Contractor shall proceed diligently with the performance of this
Contract while matters in dispute are being resolved. The final decision of the City
Manager shall be binding upon the Contractor and the Contractor shall abide by the
decision. The duties and obligations imposed by the Contract Documents and the rights and
remedies available hereunder shall be in addition to and not a limitation of any duties,
obligations, rights and remedies otherwise imposed or available by law.
20. 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.
21. 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: Colleen Bailey, CPPB
Buyer II
Yakima City Hall
129 North Second Street
Yakima, WA 98901
To Service Provider:
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.
22. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the
State of Washington.
23. Venue
In the event that any litigation should arise concerning the construction or interpretation
of any of the terms of the Agreement, the venue of such action of litigation shall be in the
Courts of the State of Washington in and for the City of Yakima. This Agreement shall
be governed by the laws of the State of Washington.
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24. Contract Execution:
CITY OF YAKIMA SERVICE PROVIDER
By: By:
City Manager
Date: Date:
ATTEST:
City Clerk
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