HomeMy WebLinkAboutR-1994-064 Yakima County Credit Service, Inc.•
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RESOLUTION NO. R-94 -64
A RESOLUTION authorizing the City Manager and City Clerk of the City of
Yakima to execute an Agreement between the City of Yakima
and YCCS -- A National Collection System, Inc for collection
services.
WIIEREAS, the City desires to engage professional collection services to
collect past due accounts for the City; and
WHEREAS, Yakima County Credit Service, Inc has agreed to provide
collection services desired by the City in accordance with the provisions, terms
and conditions of the attached agreement document, and
WHEREAS, the City Council deems it to be in the best interests of the City
that the attached agreement be executed, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YA::IMA:
The City Manager of the City of Yakima is hereby authorh d and directed to
execute an agreement with Yakima County Credit Service, Inc , for the collection
of past due accounts for the City, a true copy of which agreement is «ttached and
hereto made a part thereof
ADOPTED BY TI-iE CITY COUNCIL this24th day of May , 1994
ATTEST Mayor
City Clerk
res/YCCS pm
ADDENDUM TO AGREEMENT BETWEEN CITY OF YAKIMA
AND YCCS — A NATIONAL COLLECTION SYSTEM
DATED JUNE 1, 1994
CITY CONTRACT #94-35/R-94-64
Compensation. No fees will be charged to the City by YCCS to provide collection services,
including but not limited to tracing costs, credit bureau listings, etc. Recent Washington State
Law SB 5827 allows collection agencies to "pass on" their fees to the consumer if the client is a
government agency, i.e., a court or county government. This Addendum covers accounts
assigned for collection from all city departments on or after 7/27/97.
a. 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.
(SB 5827). The fee authorized to be charged is thirty-three and one-third percent (33
1/3%) on those accounts other than those assigned per paragraph c.
b. Automated Check Verification
c. Dishonored Check Collection
Rebate for collected checks
No Charge
No Charge
$15.00 per check
d. Non -Collected Accounts. No fee will be charged for accounts not collected.
e. Full Efforts. YCCS will pursue full efforts to collect accounts, including skip -tracing.
CITY OF YAKIMA
YCCS — A National Collection
System
By: �d/ �''L(/).-e-"J
R., City Manager SHEILA BURNS, President
ATTEST:
City Clerk
City Contract No. 94-35/R94-64
CERTIFICATION OF ENROLLMENT
SUBSTITUTE SENATE BILL 5827
Chapter 387, LaA.s of 1997
55th Legislature
1997 Regular Session
COLLECTION OF GOVERNMENTAL DEBT BY COLLECTION AGENCIES --CRIME
VICTIM RESTITUTION --RECOVERY OF COSTS
EFFECTIVE DATE: 7/27/97
Passed by the Senate April 22, 1997
YEAS 41 NAYS 5
BRAD OWEN
President of the Senate
Passed by the House April 10, 1997
YEAS 80 NAYS 18
CLYDE BALLARD
Speaker of the
House of Representatives
Approved May 15, 1997
GARY LOCKE
Governor of the State of Washington
CERTIFICATE
I, Mike O'Connell, Secretary of the
Senate of the State of Washington, do
hereby certify that the attached is
SUBSTITUTE SENATE BILL 5827 as passed
by the Senate and the House of
Representatives on the dates hereon
set forth.
MIKE O'CONNELL
Secretary
FILED
May 15, 1997 - 4:37 p.m.
Secretary of State
State of Washington
SUBSTITUTE SENATE BILL 5827
AS AMENDED BY THE HOUSE
Passed Legislature - 1997 Regular Session
State of Washington 55th Legislature
1997 Regular Session
By Senate Committee on Government Operations (originally sponsored by
Senators Roach, Haugen and Long)
Read first time 03/05/97.
1 AN ACT Relating to fees for judicial and nonjudicial collection of
2 governmental debt by collection agencies; and amending RCW 19.16.500.
3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
4 Sec. 1.
5 as follows:
6 (1) (a)
7
8
9
10
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12
13
14
15
16
17
18
19
RCW 19.16.500 and 1982 c 65 s 1 are each amended to read
Agencies,
departments,
subdivisions of the state, counties,
taxing districts,
political
and ((incorporatcd)) cities may
retain, by written contract, collection agencies licensed
under this
chapter for the purpose of collecting public debts owed by any person,
including any restitution that is bein• collected on behalf of a crime
victim.
(b) Any governmental entity as described in (a of this subsection
using a collection agency may add a reasonable fee', payable by the
debtor, to the outstanding debt for the collection agency fee incurred
or to be incurred. The amount to be paid for collection services shall
be left to the agreement of the governmental entity and its collection
a•enc or a•encies but a continent fee of u. to fift .ercent of the
first one hundred thousand dollars of the unpaid debt per account and
to thirt -five •ercent of the un aid debt over one hundred thousand
p. 1
SSB 5827.SL
1 dollars per account is _asonable, and a mLidmum ?. of the full amount
2 of the debt up to one hundred dollars per account is reasonable. Any
3 fee agreement entered into by a governmental entity is presumptively
4 reasonable.
5 (2) No debt may be assigned to a collection agency unless (a) there
6 has been an attempt to advise the debtor (i) of the existence of the
7 debt and (ii) that the debt may be assigned to a collection agency for
8 collection if the debt is not paid, and (b) at least thirty days have
9 elapsed from the time ((the)) notice was ((ccnt)) attempted.
10 . (3) Collection agencies assigned debts under this section shall
11 have only those remedies and powers which would be available to them as
12 assignees of private creditors.
13 (4) For purposes of this section, the term debt shall include fines
14 and other debts, including the fee required under subsection (1)(b) of
15 this section.
Passed the Senate April 22, 1997.
Passed the House April 10, 1997.
Approved by the Governor May 15, 1997.
Filed in Office of Secretary of State May 15, 1997.
SSB 5827.SL p. 2
AGREEMENT BETWEEN CITY OF YAKIMA AND
YCCS -- A NATIONAL COLLECTION SYSTEM, INC.
THIS AGREEMENT is made and entered into this day of
\j(V( , 1994, by and between the City of Yakima, Washington,
herein referred to as the City, and YCCS, a National Collection System, Inc.,
herein referred to YCCS.
WHEREAS, the City needs professional collection services to collect
past due accounts.
WHEREAS, YCCS has the experience and expertise to provide said
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,
promises, and agreements set forth herein, it is agreed by and between the
City and YCCS as follows:
1. Professional Services
YCCS agrees to provide the following collection services:
a. YCCS will provide a monthly listing of all monies collected on
behalf of the City during the proceeding month. 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 acknowledgment of all accounts
assigned within the past month.
c. YCCS will provide the City a monthly report stating the
following information: all accounts canceled/returned; the date each such
account was returned/canceled; the account balance of each such
return/canceled account; and the 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; 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 no charge.
g. YCCS will send a pre -collection letter notifying the consumer of
the amount due to the City and the fact that the account is about to be
referred for collection.
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. Compensation
As compensation for collection services rendered hereunder, YCCS
shall be entitled to a commission on all amounts collected according to the
following fee structure:
a. Fee for automated check verification No charge
b. Fee for pre -collection letter service No charge
c. Fee for NSF check collection No charge (City shall
receive $15.00 rebate
from YCCS)
d. Commission fee for in-state regular 26% of amount
collections collected
e. Commission fee for in-state legal action 33% of amount
collections collected
f. Commission fee for out-of-state regular 26% of amount
collections collected
g.
Commission fee for out-of-state legal 26% of amount
action collections collected
YCCS will grant any division of the City special payment method(s)
upon request. YCCS will not charge the City a commission or fee for
accounts that are not collected or are deemed uncollectible.
3. Term of Agreement
YCCS shall commence services required hereunder immediately upon
the execution of this Agreement. Subject to the City's right of termination
and option to extend this Agreement shall be for a period of four (4) years
from the date of its execution.
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4. Option to Extend Term of Contract
The City shall have the option to extend the term of this Agreement in
two (2) year increments. The exercise of any option hereunder shall be
conditioned upon the City providing written extension notice to YCCS
fourteen (14) calendar days prior to the completion of the four (4) year term
of this Agreement or an extension hereunder.
5. Independent Contractor 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 employees shall make no claim of City
employment, nor shall claim against the City any related employment
benefits, social security, and/or retirement.
6. 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 all 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 comes due.
7. Non -Discrimination Provision
During the performance of this Agreement, YCCS shall not
discriminate on the basis of race, 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, and selection for training.
8. License and Bonding Requirements
YCCS represents that it is licensed as required by RCW 19.16.110 and
bonded in accordance with RCW 19.16.190.
9. Compliance With Law
YCCS agrees to use fair and professional collection practices and to
perform all collection 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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10. No Insurance
It is understood the City does not maintain liability insurance for
YCCS and/or its employees.
11. Hold Harmless Agreement
YCCS shall defend, indemnify and hold harmless the City, its agents,
officers and employees from any and all liability resulting from YCCS'
negligent performance of this Agreement.
12. 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.
13. Termination
City may terminate this Agreement if it appears to the City Manager
that the collection agency is furnishing unsatisfactory collection services by
giving YCCS ten (10) days written notice of termination.
14. Severability
If any portion of this Agreement is changed per mutual agreement or
any portion is held invalid, the remainder of the Agreement shall remain in
full force and effect.
15. Integration
This written document constitutes the entire Agreement between the
City and YCCS. No changes or additions to this Agreement shall be valid or
binding upon either party unless such change or addition be in writing and
executed by both parties.
16. Notices
Unless stated otherwise herein, all notices and demands shall be in
writing and sent to the parties to their addresses as follows:
To City:
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Customer Service Manager
City of Yakima
Customer Service Division
129 North Second Street
Yakima, WA 98901
To YCCS: Sheila Burns, President
YCCS -- A National Collection System, Inc.
2021 South Third Avenue
Yakima, WA 98903
Or to such other addresses as the parties may hereafter designate in
writing. Notices and/or demands shall be sent by registered or certified
mail, postage prepaid. Such notices shall be deemed effective when mailed
or hand delivered at the addresses specified above.
17. Governing Law
YCCS and the City agree that this Agreement shall be governed by,
construed, and enforced in accordance with the laws of the State of
Washington.
18. Attorney Fees
In the event that any suit or action is instituted by either party to
enforce the compliance with or interpret any of the terms, covenants or
conditions of this Agreement, the prevailing party shall be entitled to collect,
in addition to necessary court costs, such sums as the court may be judge
as reasonable attorney fees.
19. Venue
The venue for any
lie in the Superior Court
CITY OF YAKIMA
action to enforce or interpret this Agreement shall
of Washington for Yakima County, Washington.
R.A. ZAIS, JR., City Manager
ATTEST:
City Clerk
City Contract No. CH 56
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YCCS -- A National Collection
System, Inc.
By:
cge,€.1_ 440
SHEILA BURNS
President
STATE OF WASHINGTON)
County of Yakima
On this day of A , 1994, before me, the undersigned
and Notary Public in and for the State of Washington, duly commissioned
and sworn, personally appeared .S4 e//' B.44/'/Z5 known to me to be the
individual described in and who executed the within and foregoing
instrument, and acknowledged that he/she signed the same as his/her free
and voluntary act and deed, for the uses and purposes therein mentioned.
WITNESS by hand and official seal hereto affixed this day and year
first above written.
ss.
NOTARY PUBLIC in and for the State
of Washington, residing at )744kisia
My commission expires: 2 //s'/ 9-7
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