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
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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
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