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1989-060ORDINANCE NO AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND CREDICOM, INC FOR THE COLLECTION OF OVERDUE UTILITY ACCOUNTS, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND PROVIDING FOR AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the City Council hereby approves and authorizes the City Manager and City Secretary to execute and attest, respectively, the agreement between the City of Denton and Credicom, Inc for the collection of overdue utility accounts, under the terms and conditions contained in said agreement which is attached hereto and made a part hereof SECTION II That the City Council authorizes the expenditure of funds as set out in said contract SECTION III That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the day of , 1989 RAY STPHE S, MAYOR ATTEST 'Well. V_a~~ AIF R A TERS, CITY SECRETARY T J ROVED AS TO LEGAL FORM DEBRA A DRAYOVITCH, CITY ATTORNEY BY / ORD 1 THE STATE OF TEXAS 3 COUNTY OF DENTON 5 THIS CONTRACT, mad April, 1989, by and hereinafter referred hereinafter referred to CONTRACT FOR THE COLLECTION OF OVERDUE UTILITY ACCOUNTS e and entered into this the 3rd day of between the City of Denton, Texas, to as "City," and Credicom, Inc , as "Collector " WHEREAS, City anticipates it will have certain overdue utility accounts it may desire to refer to Collector for collection from time to time, and WHEREAS, Collector is qualified and willing to collect such overdue utility accounts as may be referred to it by City NOW, THEREFORE WITNESSETH The parties hereto, for and in consideration of the commissions, covenants and conditions contained herein, do mutually agree as follows I REFERRAL AND ACCEPTANCE OF ACCOUNTS Collector will accept for collection, upon the terms and conditions herein set forth, such overdue utility accounts as may be referred to it by City Collector agrees to acknowledge to City, in writing, receipt of each account referred by City II OBLIGATIONS OF COLLECTOR A Collection of Accounts Collector shall use its best efforts, through lawful means, to promptly collect all accounts referred to it by City B Records Statements and Reports Collector shall keep and maintain accurate records relating to the activity on accounts referred to it by City and shall permit City to inspect and copy such records upon request during normal business hours Collector shall provide a monthly report to City by the twentieth day of each month, listing all amounts collected on each City account, separately itemized, during the month immediately preceding and remitting to City the total amount collected, less collection fees as provided for herein In addition, collector shall provide a status report to the City every three months This status report must provide information relative to the progress made on each account assigned C Costs of Collection Collector shall bear all costs of collection D Return of Accounts Collector shall cease collection activities and return, within twelve (12) months of assignment, any account which is not paid in full or for which written payment arrangements have not been made Further, collector shall cease collection activities and return, without charge therefor, any account determined by City to be legally uncollectable or which the debtor pays prior to written acknowledgment of receipt of account by Collector E Compliance with Laws Collector shall comply with all applicable federal and state laws relating to debt collection practices Collector shall be liable for any violation of these laws III COMMISSIONS Collector shall be entitled, as its sole consideration under this contract, to retain thirty (308) percent of all monies collected by it Collector is authorized to endorse in City's name for deposit and collection all payments received on such accounts IV STATUS AS INDEPENDENT CONTRACTOR In conducting its collection activities hereunder, Collector shall be an independent contractor with city and shall not act in the capacity of, nor represent itself or its employees to be, officers, employees or agents of City or any department thereof Cullector shall not be authorized to initiate legal proceedings to collect any accounts referred to it by City without written authorization from the City as represented by the City Manager or his designee V INDEMNIFICATION Collector agrees to indemnify, defend and hold City harmless from and against any and all losses, claims, demands, damages, suits or causes of action, of whatever nature, arising from its acts or omissions, or those of its officers, employees, servants or agents, in the collection, or attempted collection, of any accounts referred to it by City or in the handling of any monies received pursuant to this contract Collector agrees to obtain and keep in effect, during the term of this agreement and for a period of ninety (90) days thereafter, a surety bond from a company authorized to transact PAGE -2- business in the State of Texas in the amount of six thousand dollars, ($6,000), guaranteeing payment to city of all sums collected,less commissions, under this contract VI TERMINATION This contract may be terminated by either party by written notice given at least thirty (30) days prior to the date of termination Upon termination, Collector shall return all accounts to City and shall remit all sums collected, less commissions Collector shall promptly notify all debtors of such accounts that this contract has been terminated and that all further payments shall be made directly to City Should Collector receive any payments on such accounts after the termination of this contract, Collector shall immediately remit the full amount thereof to City Notwithstanding any other provision herein, this agreement will be effective for a period of one year from the date of execution At the end of one year this contract shall terminate without notice by either party hereto, and Collector shall immediately comply with the provisions setforth above VII MISCELLANEOUS A Entire Agreement This contract constitutes the entire understanding between the parties and as of its effective date supersedes all prior or independent agreements between the parties concerning the subject matter hereof Any change or modification hereof shall be in writing signed by both parties B Assignment This contract shall not be assigned except by the written consent of both parties hereto C Governing Law This contract shall be construed in accordance with the laws of the State of Texas D Notice Any notice required under this contract shall be in writing and sent by certified mail, return receipt requested, postage prepaid and addressed as follows Notice To City Notice To Collector City of Denton Credicom, Inc Customer Service Division Attn Ron Hill Attn Collections Supervisor 2560 Royal Lane, suite 115 215 East McKinney Street Dallas, TX 75229 Denton, Texas 76201 PAGE -3- IN WITNESS WHEREOF, the parties have executed this contract the day and year first above written CITY OF DENTON, TEXAS CREDICOM, INC g BY ! d& 4 - 4CIT HARRELL Ronald P Hill AGERVice President APPROVED AS TO LEGAL FORM DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY BY v~ 31719 PAGE -4-