1997-224 ORDINANCE NO qq'O'~'~//gr
ACC .PTr O co Tmv BIDS MD AW OrNG A CONTACT FOR
T.E mU m $r, summus s vxc s,
FOR THEI E~ENDI~ OF F~DS ~FOR, ~D PROVID~G FOR ~ EFFEC~VE
DATE
~AS, ~e Cl~ ~ solm~d, ~celved ~d ~b~ated compe~ave b~ds for ~e p~c~e
of necess~ matenfls, eqmpment, su~hes or se~t~s in acco~ce ~ ~e ~ced~es of STA~
law ~d Cl~ ordm~ces, ~d
WHE~AS, the Cl~ M~ager or a desxg~ted employee has reviewed ~d race--ended
· m ~e hereto dascnbed bids ~e ~e lowest responsible bids for ~e matenfls, equipment, supphes
or se~lces as shem m ~e "Bid Proposfls" submlRed ~emfore, ~d
~AS, ~e C~W Co~ctl ~ prowded m ~e C~ Budget for ~e appropna~on of ~ds
to be used, for ~e pm~e of ~e mtenfls, eqmpment, supphes or semces approved ~d accepted
here~n, NOW, THE~FO~,
THE CO~CIL OF THE CITY OF DENTON HE.BY O~A~S
SECTION I ~at ~e nmbered items ~n ~e follomng nmbered b~ds for materials,
eqmpment, supphes, or semites, shem m ~e "B~d Proposes" a~ch~ hereto, ~e hereby accepted
~d approved ~ being the lowest responsible bids for such items
~ID ITEM
~M~ER NO ~ AMOI ~T
2061 ALL NATIONAL C~DITS, ~C EXHIBIT A
SECI[O]gJi That by the acceptance and approval of the above numbered items of the
submitted bids, the City accepts the offer of the persons submitting the bids for such items and
agreestel
purchase the materials, equipment, supplies or services m accordance vath the terms,
specifications, standards, quantities and for the specified sums contmned in the Bid Invitations, Bid
Proposals, and related documents
SEC..ILOlg_HI That should the C~ty and persons subnuttmg approved and accepted items and
of the subrmtted bids rash to enter rote a formal written agreement as a result of the acceptance,
approval, and awarding of the bids, the City Manager or his designated representative is hereby
authorized to execute the written contract which shall be attached hereto, provided that the written
contract as in accordance with the terms, condltaons, specfficauons, standards, quantities and
speclfiedlsums contained in the Bid Proposal and related documents herein approved and accepted
~qECTION IV That by the acceptance and approval of the above numbered ~tems of the
submitted b~ds, the C~ty Council hereby authorizes the expenditure of funds therefor in the amount
and m accordance vnth the approved b~ds or pursuant to a written contract made pursuant thereto as
authorized hereto
~ That ttus ordmance shall become effective Immediately upon ~ts passage and
approval
day of __, 1997
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
2
BID # 2061
BID NAME MISCELLANEOUS COLLECTION NATIONAL
SERVICE CREDITS
OPEN DATE JUNE 3, 1997
# QTY DESCRIF]~ION VF~DOR
EXHIBIT A
% COLLECTORS COMPENSATION WILL t7 50/0
BE A FIXED PERCENTAGE OF FEES
COLLECTED
DATE AUGUST 19, 1997
CITY COUNCIL REPORT
TO Mayor and Members of the C~ty Council
FROM Kathy DuBose, Exacut~ve D~rector of Finance
SUBJECT BID # 2061 - MISCELLANEOUS COLLECTION SERVICE
RECOMMENDATION: We recommend this bxd be awarded to the lowest bxdder, National Credtts, Inc,
m the mount bf 17 5% of debts collected Estimated expenditure ~s approximately $16,000 00
SUMMARY: Tins b~d xs for a fixed percentage to prowde collection services for miscellaneous account
receivables Account receivables that ar6 owed to but have not been collected by the Cxty can include services
for utflmes, mowing, demolmon, and other miscellaneous accounts
The 17 5% b~cl xs a sxgmficant decrease over prewous contracts at 28% for s~mllar services
pROGRAMS. DEPARTMENTS OR GROUPS AFFECTED. Customer Service Dlws~on, Denton
Mummpal Utflit~as as well as other users of the service
I~KCALIM~M?~x Although our estimated contract expenditures are approximately $16,000 00 there ~s
no budget ~mpact The 17 5% ~s a result of a "bad debt" collectxon
Attachments Tabulatmn Sheet
Respectfully submitted
~Kath~ .y~uBAf~e
Executive I)freetor of Finance
Name Tom D Shaw, C P M
Title Purchasing Agent
8 9 9 AGENDA
4
BID # 2061
BID NAME MISCELLANEOUS COLLECTION J V SMITH NATIONAL MUNICIPAL
SERVICE CREDITS SERVICES
OPEN DATE JUNE 3, 1997 BUREAU
% COLLECTORS COMPENSATION WILL 25% 17 5% 28%
BE A FIXED PERCENTAGE OF FEES
COLLECTED
PROFESSION SERWCES AGm EMENT
FOR COLLECTION SERVICE
STATE OF TEXAS §
COUNTY OF DENTON §
THIS AGREEMBNT ,s made and entered into as of the / ST'day of /X/tg[Z~/t¢~, 19~__~by
and be~een ~e C~ty of Denton, A Texas M~m~pal Co~oratmn, w~th ~ts pnnc~pal office m 215
B McK~ey S~eet, Denton, Denton Co~, Texas '76201, (h~ema~er sometimes refe~ed to
~r~~m~~~ "CITY"] ~d ~ NATION~ C~DIT, ~C, w~th ~ts co.orate ~?ce at
~"~'."~)~/ff/~Z~/. herema~er called the
("CO[L CTOa)
acting
here~n, by ~d t~ugh-- ~e~r duly au~onzed representanve
WlTNE$SETH, that m conmdcranon of ~e coven~ts ~d agreements heron contmned, the
p~es hereto do mutually a~ec ~ follows
~TICLE I
EMPLOYMENT
The CITY hereby con.acts w~th COLLECTOR, as ~ zndependent contractor, ~d the
COLLECTOR hereby a~ees to pcrfom the se~zces here~n tn co~ect~on w~th the ProJect as
stated m the sectzons to follow, wz~ dthgence ~d tn accord~ce w~ the hzghest professtonal
st~d~ds custommly obtmned for such se~mes ~n the State of Texas The profesmonal settees
set out hereto ~e m co~ect~on w~ ~c following described project
To provide collection se~zces for mmcell~eous account receivables Account receivables that
~e owed to, but have not been collected by the Cay, c~ ~nclude seduces for unht~es, mow~ng,
demolmon ~d other rmscell~eous accounts The object ts to ~ncrcase revenue collections and
mamtmn a professional approach when m~ag~ng "bad debt" acco~ts
~TICLE II
SCOPE OF SERVICES
The COLLECTOR shall perfom the following settees tn a profesmonal m~er
A The COLLECTOR shall perform all those services as necessary and as described tn the
CITY'S Request for Bzd for Ut~hty and Mmcellaneous Collecnon Servmes which ~s
attached hereto and made a part hereof as Exhtb~t "A" as ~f written word for word herezn
B Referral of Accounts - Collector agrees to accept all first placement accounts receivable
referred to Collector for collection ("Accounts") by CITY It m expressly agreed that any
and all Account mformatzon &sclosed to Collector through placement of Accounts will
remam m the strictest confidence and w~ll not be dmclosed to any other party wahout
CITY written authonzatton
C Collection Efforts - collector's services and collection efforts shall mclude the sending
of demand letters, attempting telephone contact with debtors, attempting to locate debtors
and obtain updated financial and credit information with respect to debtors, and acqumng
payment arrangements from the debtors tn order to satisfy the indebtedness to be
collected For each Account, Collector shall make these collection efforts for a period of
at lest 180 days fi.om receipt of the Account If collector has not succeeded tn collecting
any part of the Account dunng that time period, then Collector shall submit its findings
and recommendations to CITY
D Collections and Settlement - Collector shall in all cases attempt to collect the total sum
of outstanding receivables and charges owed by the debtor on an Account However,
Collector shall have the authority on behalf of Creditor to collect, compromise, adjust or
settle any and all Accounts placed with collector so long as the sum collected,
compromised, adjusted or settled is previously approved and agreed to by Creditor
E Notification of Claims - Collector agrees to promptly advise CITY of any claims
asserted against Creditor by any debtor
F Return of Accounts - Unless this Agreement shall be terminated as hereinafter
provided, and unless Creditor expressly agrees otherwise, in advance, for each Account,
Collector shall cease its activities and return the Account to Creditor if (I) no collection
arrangement has been made within 180 days of receiving the Account, or (11) after having
made a collection arrangement for a particular Account, no amounts are collected by the
Collector for a continuous period of 180 days
G Withdrawal of Referred Accounts _ CITY may withdraw any Account assigned to
Collector at any time for any reason
H Reporting - Collector shall submit to the CITY, Activity reports and such other
information relative to the Accounts as requested in the Request for Bid and attached as
Exhibit "A"
I If there is any conflict between the terms of this agreement and the exhibits attached to
this agreement the terms and conditions of this agreement will control over the terms and
conditions of the attached exhibits
ARTICLE III
PERIOD OF SERVICE
A This Agreement shall become effective on November 1, 1997 The Agreement ts
effective for a period of one year however the agreement is renewable each year by
agreement of the parties The CITY and the COLLECTOR must each give written not,ce
to the other party at least 60 days before the contract ends for the renewal to be effective
B CITY may terminate this agreement immediately by oral or written notice if (I) Collector
violates or breaches any term or condition of the Agreement, or (ii) CITY reasonably
2
determines that there has been an adverse change ~n Collector's financial cond~tton
Collector shall still be entitled to receive ~ts fee as prowded ~n ARTICLE IV In case of
termination hereunder th~s paragraph 0) all accounts and file materials shall be returned
tmmed~ately to CITY, (n) Collector shall lmmedmtely cease all collection efforts
ARTICLE IV
COMPENSATION
The COLLECTOR as full compensation for ~ts servtces, COLLECTOR shall receive a
contingency fee of 17 5% on all money collected on the accounts placed for collectmn FEE
FOR LEGAL COLLECTIONS WILL BE 35% NO LEGAL ACTION WILL BE TAKEN
WITHOUT THE EXPRESS APPROVAL OF The C~ty of Denton
ARTICLE V
REMITTANCES
COLLECTOR shall remit to CITY all funds received on CITY Accounts along w~th a monthly
remittance report by the 15 th of each month, for the prevtous months collections
ARTICLE VI
INDEPENDENT CONTRACTOR
The COLLECTOR shall prowde services to CITY as an independent contractor, not as an
employee of the C~ty COLLECTOR shall not have or clmm any right arising from employee
status
ARTICLE VII
INDEMNITY AGREEMENT
THE COLLECTOR SHALL INDEMNIFY AND SAVE AND HOLD HARMLESS THE
CITY 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 CITY, AND INCLUDING WITHOUT
LIMITATION DAMAGES FOR BODILY AND PERSONAL INJURY, DEATH AND
PROPERTY DAMAGE, RESULTING FROM THE NEGLIGENT ACTS OR
OMISSIONS OF TIlE COLLECTOR OR ITS OFFICERS, SHAREHOLDERS, AGENTS,
OR EMPLOYEES IN THE EXECUTION, OPERATION, OR PERFORMANCE OF
THIS AGREEMENT.
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 PARTY'S DEFENSES, BOTH AT
LAW OR EQUITY, TO ANY CLAIM, CAUSE OF ACTION OR LITIGATION FILED
BY ANYONE NOT A PARTY TO THIS AGREEMENT, INCLUDING THE DEFENSE
OF GOVERNMENTAL IMMUNITY, WHICH DEFENSES ARE HEREBY EXPRESSLY
RESERVED
ARBITRATION AND ALTERNATE DISPUTE RESOLUTION
The parties may agree to settle any dispute under this Agreement by submitting the dispute to
arbitration or other means of alternate dispute resolution such as medlatmn No arbitration or
alternate dispute resolution arising out of or relating to, this agreement involving one party's
disagreement may include the other party to the disagreement without the other's approval
ARTICLE IX
BOND
Dunng the performance of the Services under this Agreement, COLLECTOR shall maintain the
following surety bond with a surety licensed to do business m the State of Texas and in a form
approved by the City Attorney
A A surety bond in an amount for at least $10,000 00, guaranteeing payment to the city for
momes due the city under the contract period and to be in effect for the term of this
Agreement and for a period of ninety days thereafter
ARTICLE X
RESPONSIBILITY FOR CLAIMS AND LAIBILITIES
Approval by the CITY shall not constitute nor be deemed a release of the responsibility and
habdlty of the COLLECTOR, its employees, associates, agents, subcontractors and
subconsultants for the competency of their work, nor shall such approval be deemed to be an
assumption of such responsibility by the City for any work by the COLLECTOR, its employees,
subcontractors, agents and consultants
ARTICLE XI
NOTICES
All notmes, communications, and reports required or permitted under this Agreement shall be
personally delivered or marled to the respective parties by depositing same m the United States
mml at the address shown below, certified mall, return receipt requested unless otherwise
specified herein Mailed notices shall be deemed communicated as of three days mmhng
TO COLLECTOR TO CITY
NATIONAL CREDITS, INC CITY OF DENTON
Attn 'I)~I~ELL ~.~t~l~ rlA/'4~'/~ Attn Kathy DuBose
] ~0~'5 ~l~ I~TLAND PL/~ ~ Title Executive Director of Finance
I.-kSLIB"rDN TX '7~O~5 215 E McKluney
Denton, Texas 76201
4
All notices shall be deemed effective upon receipt by the party to whom such notice is given or
within three days m~ulmg
ARTICLE XII
ENTIRE AGREEMENT
This Agreement consisting of 7 pages and 1 exhibits constitutes the complete and exclusive
statement of the terms of their agreements and supemedes all prior contemporaneous offers,
promises, representations, negotiations, discussions, communications and agreements which may
have been made in connection with the subject matter hereof
SEVERABILITY
If any provision of flus Agreement ts found or deemed by a court of competent jurisdiction to be
invalid or unenfomeable, it shall be considered severable from the remmnder of this Agreement
and shall not cause the remmnder to be invalid or unenforceable In such event, the party shall
reform ti'as 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 IV
COMPLIANCE WITH LAWS
The COLLECTOR shall comply with all federal, state, local laws, rules, regulations, and
ordinances applicable to the work covered hereunder as they may now read or hereinafter be
amended
ARTICLE XV
DISCRIMIANATION 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 XVI
PERSONNEL
A The 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 an contractual relations with the city
COLLECTOR shall inform the CITY of any conflict of interest or potential conflict of
interest that may arise dunng the term of th~s Agreement
B All services required hereunder will be performed by the COLLECTOR or under ~ts
supervision COLLECTOR shall ensure that all personnel engaged in work are duly
qualified, and permitted under state and local laws to perform such services
ARTICLE XVII
ASSIGNABILITY
The COLLECTOR shall not assign any tnterest tn thts Agreement and shall not transfer any
mterest tn thts Agreement (whether by assignment, unvatlon or otherwise) without the prior
wntten consent of the CITY
ARTICLE XVIII
MODIFICATION
No watver or modification of th~s Agreement or of any covenant, condttton, hm~tat~on heretn
contmned shall be vahd unless m writing and duly executed by the party to be charged therewtth
and no ewdence of any waiver or modification shall be offered or received in evidence tn any
proceeding arising between the parties hereto out of or affecting tlus Agreement, or the rights or
obhgattons of the parttes hereunder, and unless such watver or modfficatlon ts tn wntmg, duly
executed, and, the parties further agree that the provtslons of this sectton will not be wmved
unless as herein set forth
ARTICLE XIX
MISCELLANEOUS
A The following exhibits are attached to and made a part of this Agreement
1 Exh~btt "A" Request for B~d for Utdtty and Miscellaneous Collection Servmes
B Venue of any suit or cause of actton under thts Agreement shall lie exclustvely In Denton
County, Texas Thxs Agreement shall be construed in accordance with the laws of the
State of Texas
C Collector will promptly adwse CITY of any Account on which it receives a notice of
bankruptcy At CITY request Collector wall file a proof of clmm on behalf of CITY in
CITY name
D If Collector's efforts result in collateral, secunng an Account, betng retumed to CITY,
then Collector shall be entitled to recetve the standard fee that otherwtse would have been
prod under Article IV herein, based on the net amount that CITY recetves from the sale of
the collateral The cost to CITY of repossesston, stonng and selling the collateral shall
be deducted from the amount of sale proceeds collector ~s p~ud a fee on CITY shall
report to Collector when the collateral ts sold, and the sale price CITY shall then remit
Collector's fee hereunder w~thm 30 days from receipt of payment from the purchaser
E Collector wall accurately and fmfly report all accounts to the credit bureau
F Collector will promde techmcal support to enable electromc placement of accounts
Collector wtll also prowde software to enable account balance revtew, and collector
comments rewew of accounts held by collector To comply w~th the specfficatlons of the
Request for B~d attached as Exhibit "A"
G The captions of th~s Agreement are for ~nfonnat~onal purposes only and shall not ~n any
way affect the substantive terms or cond~tmns of this Agreement
IN WITNESS HEREOF, the C~ty of Denton, Texas has caused th~s Agreement to be executed by
~ts duly authorized City Manager and COLLECT~O:~, has executed th~s Agreement
duly authorized undersigned officer on th~s the ~ day of~.~t~, throughl9c~ ~ts
CITY OF DENTON, TEXAS
Ted Benawdes, Ctty Manager
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APP~ED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
NATIONAL CREDIT, INC
By
Name
T~tle
WITNESS
7
STATE OF MINNESOTA I
COUNTY OF HENNEPIN) Ss.
JAN ~) 1~1~ . be~'e me.a NOfal7 Public Wlf~ln a~ ,~"'~~n-E~to.~
0-
· , ~ ~tome~~ ' ' . in ins~u~nf
~rsonally ap~r ~~._..L.j .. ~.4 ~at ~.u~ w,thm an~
I~SURANCE COMPANY..t~ co~tlo~..~_~ ~
~- If of ~i~ cor ~ati~ and IsJ~ au~y
m b~a
~A~A~~
~.'- ~ ~ Bond #~ U 2776853
KNOW ALL UTILITY COLLECTIONS~ LTD~ DBA NATIONAL
CREDITS INSURANCE COMPANY , a S~rety Company,
having its, PA{ duly authorized to do bu}sinese 'in the
S~ate of New] firmly bound unto CITY DF DENTON, as
for the payment of which
Obliges,
sum the and severally bznd themselves, their
heirs, ~Sscrs and assigns, and each and ~every of them
firmly by ~
Signed, , 1998
THE IS ~U~H THAT ~REAS, the above named Principal
has~ agreed ,~he above named obliges as per a Collection
Agreement
for all ~, ~Oi /~; ~9~eo~ed~'o~ received by it in its [capacity as a
Collection ~,~h~is ~Obl~l~]%on'~ .hal% be null a.d void; otherwise to remain in
full force s~bJect,~o th~o~l:wing conditions.
1. its~ %~lability under this bond ~t any time by
~hirty (30) days in advance ~f the date of
2. '~under this bond to the Obliges for one or
shall not exceed in the aggregate sum of TEN
3. ,~ act'ioq 9~p=oo~eding shall be brought against the Surety
he ~%he s~]~ be instituted within three (3) mgnths after the
ration. ~ ~oanCellation-of thzs bond
4. 'Th ~t~at the Principal shal~ faithfully account for
al ~'~ ~coYlected or received by it in lt~ capacity as a
5. Th hp e~ent~ of, any~default on the part of the Principal, a written
the ~f~ots~o~menting the date and nature of suoh default shall
, ~h~ Oblige~%o~th~*~Surety as promptly as possible after such
~becom~ .~bw9' to t~e Obliges, and shall be forwarded by
, ~ UTILITY COLLECTIONS~ LTD
~' ~'~ ~;' ~ / Linda E. Giancola, ~ttorney-in-Fact
.'EEIANCE b-NJRETY COMPANY RELIANCE INSURANCE COMPANY
UNrrzD PACI~C, 1N~u'RANCE COMPANY ~I.~ NA~ON~ ~E~Y CO~
ADMINI~TRATIV~ OFFICe, PHILADEL~IA, PENNSYLVANIA
~ O[ A~O~Y
KNOW ALL MEN BYTHE$E PRESENTS, that RELIANCE $UR~ COMPANY m e ;o~oreflon duly orgamz~ u~et the laws of the S~ate of Del
aware, e~ that RELIANCE INSURANCE COMPANY e~ UNITED PACIFIC INSURANCE COMPANY, ere eo~oraao~e duly orgemz~ u~er the
of the Co~onweNth of Penns~ve~a e~ that RELIANCE NATIONAL tNOEMNI~ COMPANY m e ~o~ore~ofl duly orgamz~ u~et the lawt
the Stata of WleeonM~ {bereft oolleetw~y o~l~ 't~ Compamee") a~ that the Co.areal by ~e of mgne~e e~ ~e~e do hereby make
concrete e~ appoint Un~ E ~e~l J~ ~t M~. of ~. M~o~ their tree a~ law~l A~omey(i) ~Fa~t to make execute
sen a~ dehver for a~ on their beh~f, a~ ae thmr ~t e~ de~ ~y md ~ b~ ~d ~ ef tme~hi~ a~ to b~ the Compan*e;
thereby el fu y a~ t; the e~e e~ent ae ~f such bo~a a~ uMen~ingl a~ other wnflnga obhgatow m the nature thereof were s~gn~ by
Exeeu~ve Offioet of ~he Co~aNea e~ aeN~ e~ a~ett~ by one other of tush o~oert, e~ hereby rauflee a~ conhrma all that theft sa~d
A~orney(a) *~Faet may do i~ purtua~e hereof
T~i ~owt~ of A~omey II grem~ u~et a~ by the ~t~HW of A~ole VII of the B~Lawe of RELIANCE SUR~ COMPANY
RELIANCE INSURAN~E COMPANY UNiTEO PACIFIC INSURANCE COMPANY, a~ RELIANCE NATIONAL INDEMNI~ COMPANY w~ch
pro~mone are now in ~11 foroe a~ offset, re~i~ ii fo OWl
IN WITNESS WHEREOF, t~ Coca.es ~ =~.~ these preeente to be eign~ e~ thor oo~orate ~ed~ to be ~reto a~x~ t~s Janu~
~C~ ~S~CE COM~Y
~D PAC~ ~S~CE COMPLY
~E NA~N~ ~N~ COMP~
STATE OF Penn.~va~l
COUN~ OF
)
President of the R~I 8ureW Co.any, e~ t~ Vies ~;emlnt o~ .mm~e maura~e ~;~y, ~,..~ ................. ~ -,
~ont~n~ by mg~ the n~ of the oe~r~en by H~f ~ite duly ~t~Hz~ officer
RELIANCE NA~ONA~ IN~t~l~ COMPANY d~ ~r~y ~e~W mat t~ ~eve em mr.~.. ,...~- -~.~-,~---
exeout~ by I~ C~II, wNeh II I~ll tn ~a Totes e~ e~eot 0~N ~ I~
IN WITNESS WHEREOF, I he~ hereunto se~ mV ha~ a~ effix~ the sods of s~ Co~a~e~ tNs __ , of 19 __
Sent By COD CustomeP 8ervtoe~ 940 349 7211j Ju1-27-01 11 59AM, Page 2/2