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HomeMy WebLinkAboutYakima County Credit Service, Inc. - Debt Collection Services AgreementDebt Collection Services Agreement THIS AGREEMENT made and entered into between City of Yakima Municipal Court, 200 South V Street, Yakima, VVA98SD1,hereinafter referred tomsthe City, and Yakima County Credit Service, |NC,2O21 South 3r"Avenue, Union Gap, WA 98903, a Washington corporation, and a licensed collection agency, hereinafter referred to as the Contnsctor, WHEREAS the City needs professional debt collection services tmcollect debts owed tothe City ofYakima Municipal Court, WHEREAS Contractor has experience and expertise regarding said debt collection services and agrees toper -form 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|sagreed byand between the CITY and the CONTRACTOR aafollows: Contractor's Ob,liqation The Contractor shall do all work and furnish all materials necessary for performing the work in accordance with the contract documents. Amendments This agreement contains all terms and conditions agreed upon by the parties. No change or addition to this agreement shall be valid or binding upon either party unless such change or addition is in writing and executed by both parties. Independent Contractor. The parties agree that the contractor is an independent contractor and not on agent or employee of the Cih/. AQents, employees, serven\s, orrepresentatives nf the Contractor shall not be deemed to be emp|oyees, agents. servants orrepresentatives n[the City for any purpose. Employees ofthe Contractor are not entitled toany benefits the City provides for City employees, It is understood the City does not maintain liability insurance for CONTRACTORamd/orbsofficans.emp|oyees'agentsand/orsubonmtraohnns. Conflict pfInterest The Contractor warrants that no employee or official of the City has any interest, financial or otherwise, in the Contractor, Nondiscrimination Provision During the performance ofthis Contract, Contractor shall not discriminate in violation of any applicable hadera|, state and/or local |mvx or regulation on the basis ofrace, age, oo|or, sax' ne|igion, national uriQin, creed, marital ohnhuo, d|eabi|ih/, honorably discharged veteran or military status, pnagnanny, sexual oMentation, political afO|iation, or the presence of any sensory, mental or physical handicap, and any other classification protected under federal, state, or local law. This provision shall include but not be limited tothe following: employment, upgoad|ng, demotion, transfer, recruitment, advertising, layoff or termination, rates of pay or other forms of compensation. selection for training, and the provision ofservices under this Contract, With regard hothe health care services tobe performed pursuant bzthis Contract, Contractor agrees hacomply with the Americans with Disabilities Act cf198O.42U.&C. §12101etseq. (4DA)and its implementing regulations, and Washington State's anti-cliscrimination 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. Amm|wnmnentand SwbommtrmcUmq The Contractor shall not assign orsubcontract any portion ofthe contracted activities without obtaining prior written approval from 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. The Contractor shall be held responsible for the satisfactory accomplishment of the service or activities included in this subcontract. This provision shall not prohibit the Contractor from referring accounts to other collection agencies in the normal course of business. Term pfAweement The period ofthis contract shall commence on the date it is executed by all pates and shall terminate April 30, 2028. The City may, at its o[tiVn, extend the contract on a yeopto-ygmrbanin. hovvever. that either party may at any time during the |iha of this contract, or any extension thenoof. 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 oOkoeffect without written confirmation, unless the City provides advance written notice ofthe intention tonot 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 aprice adjustment, the contract renewal atthe existing compensation value shall beautomatic. Exclusive Contract Subject to the provisions herein regarding termination, the City shall not award contracts for the services herein provided to any other Contractor for the same services or term, In the event this Agreement is terminated by either party, this provision shall have ooforce oreffect. Termination 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, documonts, and records previously provided to the Contnaobor, to the City in the same form as they were provided. 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 affected 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 setoff 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, to the City in the same form as they were provided, 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 efservice. In such cmae, 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. Waiver of Remedies for any Breach, In the event the City elects tnwaive 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. 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 nr breach of this Contract. Contractor's Right UoTerminate, The Contractor may terminate this Contnmnt, in who|e, for any reason upon thirty (3O)calendar days written notice tothe City. Sexenabi|NY |fany portion ofthe Agreement is changed per mutual agreement orany portion hsheld invalid, the remainder nf the Agreement shall remain in full force and effect, Survival Any provision ofthis Agreement which imposes onobligation mfterbenninaUomor expirationofthis Agreement shall Chan_qeor, Notice Any alterations made to the Contract shall be rendered in writing and signed by both responsible parties; no changes without such signed documentation shall be valid, No alterations outside of the general scope and intent ofthe original Request for Proposals orinexcess of allowable and accepted price changes shall bemade. |nnoevent shall the Contractor bepaid orbmentitled topayment for services that are not authorized herein orany properly executed amendment. Notice of Business Changes: Contractor shall notify the City in writing within three (3) business days of any change in ownership ofthe facilities. Venue Governing In the event that any litigation should arise conceming the construction or interpretation of any of the terms of the Agreement, the venue ofsuch action oflitigation shall bninthe Courts ofthe State ofWashington inand for the County 0fYakima. This Agreement shall be governed bvand construed inaccordance with the laws Of the State of Washington, Insurance Provided bVContractor The Contractor agrees that at all times during the life of this contract that Contractor will maintain on a primary and non-contributory basis and at its sole expense, the insurance coverage limits, and endorsements described below, All such insurance shall not be subject to any deductible or self -insured retention (SIR), There shall be no canoeUation, material change, reduction in limits or intent not to nemevv the insurance coverage(s) without 30 days written notice from the Contractor or its insurer(s) to City of Yakima. The requirements contained herein, as well as the City's or designee's review or acceptance of insurance maintained by Contractor is not intended to and shall not in any manner limit or qualify the liabilities or obligations assumed by Contractor under this contract, Auto Liability: Combined Single Limit $1,,000,000 Per Occurrence The Contractor shall also maintain coverage at limits for workers compensation as legally mandated by the Industrial Insurance Laws of the State of Washington. Indemnification Errors and Omissions Insurance, The City will not be responsible for any mistakes or omissions by any contractor under this agreement regarding the performance of services provided under contract. Limitation of liability inc|udes, but is not limited to unintentional, negligent, willful, or intentional mistakes or omissions by any contractor, employee of contractor, or sub -contractor. Further, the City will not be responsible for any acts of the contractor, Further, the City will not be responsible for any acts of the contractor that occur during the course of the performance of this contract but are not related to collection services. These acts include all criminal and civil acts that may give rise to liability, The contractor and subcontractor(s) shall at all times during the term of this contract, carry and maintain Errors and Omissions Liability insurance with minimum limits of $1,000,000 per incident, loss or person, as applicable. If defense costs are paid within limit mfliability, Contractor shall maintain limits of$1 000.000 per incident, |oue or person asapplicable. License and Bomdinq Requirements Contractor represents that it is licensed and bonded and shall remain as licensed and bonded during the term of this Agreement inaccordance with and oarequired byRCVV19.10.110and RCVV1S.16.10Orespectively, |f 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 County Code provisions. Collection Efforts The Contractor shall exercise its best, prudent and lawful efforts kzsecure collection ofall accounts, regardless of amount, referred bvthe City. All collection and reporting activities shall be in strict compliance with all applicable federa|, state, and local laws and regulations. In the event of changes in applicable |aws, this Agreement shall be amended and/or the Contractor shall modify its methods accordingly, The Contractor shall be solely responsible for complying with all laws regulating collection enforcement methods. Records The Contractor shall utilize a comprehensive computerized system to manage and account for actions taken on the accounts referred by the City. The Contractor shall maintain a complete, separate, and detailed record of each account including all collection actions taken and related transaction and shall maintain copies of all reports required pursuant to contracts with the City for a period of not less than six (6) years after termination of collection action on each account. The Contractor shall grant the City access to these records for inspection purposes during reasonable business hours for six (6) years after termination of the debt collection contract. Account Referrals and Methods The basis upon which debts/accounts are assigned by the City to the 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. The City shall provide at least the following information on each account, if known; name of debtor, case number, last known address, driver's license number, judgment date, balance due on the account, and the type of transaction. Information may be provided to the Contractor by hard copy written format or electronic transfer, depending upon the ability of the department and Contractor, The City may recall any or ail accounts, except those accounts included in a current payment agreement, those with a civil judgment, bankruptcy, or forwarded accounts, at any time at its discretion and may exercise this right without any charge or penalty. The Contractor shall be entitled to compensation as provided herein up to the date of recall, Accounts Included The accounts covered by this Agreement include but are not limited to the following. Municipal Court fines, fees, assessments, restitution, civil penalties, and Interest on all such accounts. Confidentiality The Contractor shall maintain confidentiality on all documents and information provided to the Contractor by the City pursuant to this Agreement, except as to disclosure required by federal and state laws and regulations. Remittance The Contractor shall receive no other compensation for services except as provided in this section. The City and the Contractor agree that the Contractor's collection fee shall be as authorized by RCW 19.16.500, as amended. The City shall add those fees to the outstanding debts assigned for collection to be paid by the debtor. The Contractor shall be solely compensated for its services by withholding from remittances the fees agreed to above. Receipts shall be remitted to the City weekly, on Wednesdays unless the office or department gives written authorization for another remittance period. The Contractor may remit payments received by check no later than ten (10) working days after receipt. • Where legal action is pursued (i.e., suits and garnishments), the Contractor may first apply collection proceeds to direct out-of-pocket costs. • Where partial payments are involved, the Contractor shall prorate the proceeds between principal and Contractor collection fee at the rate of 70% to principal and 30% to collection fee, • No fee shall be charged for accounts not collected, • Interest accrued on any account shall be shared and split 66.67% to the City and 33.33 /i to the Contractor, Reporting Hard copy reports reflecting all transactions shall be submitted with remittances unless the office or department gives written authorization for another remittance period. Remittance reports shall be in the format responsive to the department or office needs. The Contractor shall use a comprehensive system to report account status, collection statistics and other information as required by the City on a daily, monthly, quarterly, annual and any other basis. Reports shall be received no more than seven (7) days after completion of the appropriate period to each office of department as required by the office or department, The reports shall include, but not be limited to the following: • Current status of each account referred. • The current balance owed, amount collected on each account during the month and to date, and the date that each account was referred to the Contractor. • A list of all accounts deemed uncollectible by the Contractor and the rationale, therefore, Audits and Evaluations The records and documents with respect to all matters referred by the City shall be subject at all times to inspection, review, or audit by federal or state officials so authorized by law or regulation or by the City during the term of any agreement and for six (6) years after termination. Auditing or monitoring for fund accountability, contract compliance and program performance may be conducted at the discretion of the City. The Contractor shall provide right of access to its facilities, including those of any sub agency, to the City, state, or federal agencies or officials at all reasonable times in order to monitor and evaluate the services provided under this Agreement. The Contractor agrees to cooperate with the City or its agents in the evaluation of the Contractor's performance and to make available all information reasonably required by any such evaluation process. If the Contractor is not covered by federal single audit requirements, the Contractor may be responsible for an independent contractor audit which meets generally accepted auditing standards. Collector Contractor agrees to provide an employee to preform duties for Yakima Municipal Court and whose duties will be substantially as follows: • Manage time pay reports, tracking payments and removing cases for nonpayment as required by the status of each case. • Send all delinquent notices and pay all postage costs. • Send reminders for slow paying accounts and pay all postage costs, • Send all pre -collection notices and pay all postage costs, • Perform duties as assigned by the Court Services Manager. Price Warranty The Contractor warrants that the costs for services are not in excess of those which would be charged any other individual or entity for the same services performed by the Contractor. Aggregate Accounts Contractor shall not aggregate accounts assigned pursuant to this contract with accounts assigned to it by other creditors, Contractor shall not maintain a principal balance on an account assigned pursuant to this contract in order to promote payment on any other account assigned by another creditor. Contractor shall allow debtors to pay only on accounts assigned pursuant to this contract Contract Execution: Professional Debt Collection Services for City of Yakima Municipal Court DONE this Kelley Cruel!, Municipal Court Presiding Judge Bob Harrison, Yakima City Manager CITY CONTRACT NO , RESOLUTION N NO: 2023 DONE this Jday o Shonna L. Stroud, Yakima County Credit Sei Vice -President ce INC. 2023