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2007-026 ORDINANCE. 2 () () 7 - tJ 20 AN ORDINANCE OF THE CITY OF DENTON, TEXAS ACCEPTING COMPETITIVE SEALED BIDS AND AWARDING A BEST VALUE CONTRACT FOR COLLECTION SERVICES FOR VARIOUS CITY OF DENTON DEPARTMENTS; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 3624-A WARDED TO CREDIT SYSTEMS INTERNATIONAL, INC.). WHEREAS, the City has solicited, received, and tabulated competitive best value bids, for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of State law and City ordinances based on the best value as determined by using the selection criteria set forth in the request for bids; and WHEREAS, the City's selection committee has reviewed and recommended that the herein described bids are the best value based on the selection criteria for the materials, equipment, supplies or services as shown in the "Bid Proposals" submitted; and WHEREAS, the City's Purchasing Agent has determined that the best value bid process provides the best value to the City for this procurement; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. The findings and conclusions set forth in the preamble of this ordinance are incorporated within the body of the ordinance. SECTION 2. The options in the following numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, is hereby accepted and approved as being the best value based on the selection criteria contained in the request for bids for such items: BID NUMBER DESCRIPTION VENDOR 3624 Collection Services Credit Systems International, Inc. SECTION 3. By the acceptance and approval of the above items of the submitted bids, the City accepts the offer of the persons submitting the bids for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Bid Invitations, Bid Proposals, and related documents. SECTION 4. The City Manager is hereby authorized to execute any and all necessary written contracts for the performance of the services in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with and relating to the items specified in Section I, which written contract(s) are on file in the office of the Purchasing Agent; provided that the written contract is in accordance with the above Request to Submit Bids, Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. SECTION 5. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this ;//11 day of khrpllrtl I ,2007. ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: ~;y/ ~ 4.0Rr62 . BEST VALUE BID AGREEMENT FOR COLLECTION SERVICES . THIS AGREEMENT is made and entered into as of the ~ tl day of fen rtL/1.I---i/ 2007, by and between the City of Denton, Texas, a Texas Municipal Corporation, Wi'thTts pnnclpal office at 215 East McKinney Street, Denton, Texas 76201 (hereafter "CITY"); and Credit Svstems International. Inc., with its corporate office at 1277 Country Club Lane Fort Worth. TX 76112, (hereafter "COLLECTOR"); each acting herein, by and through their duly authorized representative or officer. WITNESSETH, that in consideration of the covenants and agreements herein contained, the parties hereto do mutually agree as follows: ARTICLE I EMPLOYMENT The CITY hereby contracts with COLLECTOR, as an independent contractor, and the COLLECTOR hereby agrees to perform the services herein in connection with the Project as stated in the articles to follow, with diligence and in accordance with the professional standards customarily obtained for such services in the State of Texas. The professional services set out herein are in connection with the following described Project, to wit: To provide collection services for miscellaneous accounts receivable. Accounts receivable that are owed to, but have not been collected by the CITY, can include services for utilities, ambulance and other miscellaneous accounts. The requirement is to increase revenue collections and at the same time maintain a professional approach when managing "bad debt" accounts of the CITY. ARTICLE II SCOPE OF SERVICES The COLLECTOR shall perform the following services in a professional manner: A. The COLLECTOR shall perform those services as are necessary and as described in the CITY'S "Best Value Bid for Utilities, Ambulance, Code Enforcement Liens and Miscellaneous Receivables Collection Services" which is attached hereto, incorporated by reference and made a part hereof as Exhibit "A." B. Referral of Accounts - Collector agrees to accept all first placement accounts receivable referred to Collector for collection ("Accounts") by CITY. It is expressly agreed that any and all Account information disclosed to Collector through placement of Accounts will remain in the strictest confidence and will not be disclosed to any other party without the CITY's written authorization and within the legal requirements of the Health Insurance Portability and Accountability Act (HIPPA). PAGE 1 OF BID # 3624 C. Collection Efforts - COLLECTOR's services and collection efforts shall include the sending of demand letters; attempting telephone contact with debtors; attempting to locate debtors; obtain updated financial and credit information with respect to debtors; and arranging payment arrangements from the debtors in order to satisfy the indebtedness to be collected. For each Account, COLLECTOR shall make these collection efforts for a period of at least 365 days from receipt of the Account. At the end of the 365 day period, all inactive uncollected Accounts must be promptly returned to the CITY, along with its findings and recommendations. Active Accounts (those who have a payment pending or are actively on a payment plan) may be retained by COLLECTOR for an additional 180 days, for a total of 545 days, or returned sooner if an Account becomes inactive. If COLLECTOR has not succeeded in collecting any part of the Account during that time period, then COLLECTOR shall promptly submit its findings and recommendations to the CITY. D. Collections and Settlement - COLLECTOR shall in all cases attempt to collect the total sum of outstanding receivables and all charges owed by the debtor on an Account. E. Notification of Claims - COLLECTOR agrees to promptly advise CITY of any claims or causes of action asserted against the CITY by any debtor. F. Return of Accounts - Unless this Agreement shall be terminated as hereinafter provided, and unless CITY expressly agrees otherwise, in advance, for each Account, COLLECTOR shall cease its activities and return the Account to the CITY if (i) no collection arrangement has been made within365 days of receiving the Account, or (ii) after having made a collection arrangement for a particular Account, no amounts are collected by the Collector for a continuous period of 365 days. The Accounts may not be held for a period longer than eighteen (18) months. 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 is requested in the "Best Value Bid for Utilities, Ambulance, Code Enforcement Liens and Miscellaneous Receivables Collection Services" document attached hereto 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 its date of final approval by the Denton City Council. The term of this Agreement shall be for twenty-four (24) months. It shall be PAGE 2 OF BID # 3624 renewable for up to two (2) additional one-year periods, with all the terms and conditions remaining unchanged, if agreed to by both parties, provided that COLLECTOR's performance of this Agreement is not objectionable as determined by the City Council. Provided however, the renewal of said Agreement for each of the two (2) additional one-year periods shall be automatic unless the CITY provide a minimum of thirty (30) days written notice to the other party, before the Agreement term or any such renewal term expires. 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 if (ii) CITY reasonably determines that there has been a material adverse change in COLLECTOR's financial condition. COLLECTOR shall still be entitled to receive its fee as provided in Article IV hereof. In case oftermination hereunder this paragraph (i) all accounts and file materials shall be returned immediately to the CITY, (ii) COLLECTOR shall immediately cease all collection efforts on CITY Accounts. ARTICLE IV COMPENSATION COLLECTOR as full compensation for its services performed hereunder shall receive a fee as outlined in the "Bid Proposal" attached hereto as Exhibit "B" on all monies collected on Accounts in the COLLECTOR'S possession for which the COLLECTOR has begun active collection procedures. Active collections will be based on proof of first contact with the debtor. If the CITY collects on an Account that is in the COLLECTOR's possession that the COLLECTOR has not started pursuing collections, then COLLECTOR shall immediately return the account to the CITY and no fee shall be charged. A complete listing of all fees is included in the "Bid Proposal" attached hereto as Exhibit "B". It is understood, that the COLLECTOR will take no legal action regarding collections. ARTICLE V REMITTANCES , COLLECTOR shall instruct debtors to send their payment(s) directly to the COLLECTOR. COLLECTOR shall include payment instructions, as specified in the "Best Value Bid for Utilities, Ambulance, Code Enforcement Liens and Miscellaneous Receivables Collection Services" (Exhibit "A" hereto), in all correspondence or other materials sent to each debtor. The COLLECTOR will remit monthly, by the 10th of each month, to the CITY payment(s) received by debtors with a report of payments received from debtors on Accounts during the previous month. The CITY shall remit monthly, by the 15th of each month, the agreed fee to COLLECTOR based solely upon the reported information. ARTICLE VI INDEPENDENT CONTRACTOR The COLLECTOR shall provide services to the CITY as an independent contractor, not as an employee of the CITY. COLLECTOR shall not have or claim any right arising from employee status. PAGE 3 OF BID # 3624 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 THE 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. ARTICLE VIII ARBITRATION AND ALTERNATE DISPUTE RESOLUTION The CITY and COLLECTOR may agree to settle any dispute under this Agreement by submitting the dispute to arbitration or other means of alternate dispute resolution such as mediation. 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 approlial. ARTICLE IX BOND During the performance of the professional services under this Agreement, the COLLECTOR shall maintain the following surety bond with a surety licensed to do business in the State of Texas and in a form approved by the City Attorney: A. A surety bond in an amount of at least $10,000, guaranteeing payment to the CITY for monies due the CITY during the Agreement term or any renewal thereof, to be in effect for the term of this Agreement or any renewal thereof, and for an additional period of ninety (90) days thereafter. PAGE 4 OF BID # 3624 ARTICLE X RESPONSIBILITY FOR CLAIMS AND LIABILITIES Approval by the, CITY shall not constitute nor be deemed a release of the responsibility and liability of the COLLECTOR, its employees, associates, agents, subcontractors and sub-consultants 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, associates, agents, subcontractors, and sub- consultants. ARTICLE XI NOTICES All notices, communications, and reports required or permitted under this Agreement shall be personally delivered or mailed to the respective parties by depositing same in the United States mail at the address shown below, certified mail, return receipt requested unless otherwise specified herein. Mailed notices shall be deemed communicated as of three (3) days mailing: TO COLLECTOR: TO CITY: For Contractual Notices For Account Activitv ts]I. L IIoJJra... ET'ftMortS- Be4.Jlll.. . J~T7 f'oWl-hy tll4-b 1.. IU.L /="'-1. W;,+/.., Tl( 7'" /I :l CITY OF DENTON Attn: Charles Atkinson Customer Svc. Manager 601 E. Hickory St., Ste. F Denton, TX 76205 CITY OF DENTON Attn: Pamela Dugger Credit/Collections Accounts Supervisor 601 E. Hickory St., Ste. F Denton, TX 76205 All notices shall be deemed effective upon receipt by the party to whom such notice is given or within three days mailing. ARTICLE XII ENTIRE AGREEMENT This Agreement consisting of eight (8) pages and two (2) Exhibits constitutes the complete and exclusive statement of the terms of their agreements and supercedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications and agreements which may have been made in connection with the subject matter hereof. PAGE 5 OF BID # 3624 ARTICLE XIII SEVERABILITY If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the party shall reform this 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 XIV COMPLIANCE WITH LAWS The COLLECTOR shall comply with all federal, state, local laws, rules, regulations, and ordinances regarding Fair Debt Collections practices for which is applicable to the work covered hereunder as they may now read or hereinafter be amended. ARTICLE XV DISCRIMINATION 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 any contractual relations with the CITY. COLLECTOR shall promptly inform the CITY in writing of any conflict of interest or potential conflict of interest that may arise during the term of this Agreement. B. All services required hereunder will be performed by the COLLECTOR or under its care, custody, and 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 interest in this Agreement and shall not transfer any interest in this Agreement (whether by assignment, novation or otherwise) without the prior written consent of the CITY. PAGE 6 OF BID # 3624 ARTICLE XVIII MODIFICATION No waiver or modification ofthis Agreement orof any covenant, condition, limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith. No evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, unless such waiver or modification is in writing, and is duly executed. The parties further agree that the provisions of this article will not be waived unless as herein set forth. ARTICLE XIX MISCELLANEOUS A. The following Exhibits are attached to, incorporated herewith, and are made a part of this Agreement: 1. Exhibit "A" - Bid #3624 - Best Value Bid for Utilities, Ambulance, Code Enforcement Liens and Miscellaneous Receivables Collection Services. 2. Exhibit "B" - Summary of Proposed Services B. Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton County, Texas. This Agreement shall be construed in accordance with the laws of the State of Texas. C. COLLECTOR will promptly advise CITY of any Account on which it receives a ~I~tii~e so: ~:~~~~}~~"/~~ ~~{y~i::~~~cC~~ ~~.[CTO~r' (lQ!:. - D. If COLLECTOR's efforts result in collateral, securing an Account, being returned to the CITY, then COLLECTOR shall be entitled to receive the standard fee that otherwise would have been paid under Article IV herein, based upon the net amount of money thatthe CITY receives from the sale of the collateral. The costto the CITY of repossession, of storing, and of selling the collateral shall be first deducted from the amount of sale proceeds COLLECTOR is paid a fee on. CITY shall promptly report to COLLECTOR when the collateral is sold, the applicable costs of repossession, of storage, of selling the collateral, and the sale price. CITY shall then remit COLLECTOR's fee hereunder within thirty (30) days from receipt of payment from the Purchaser of the property at the sale. E. COLLECTOR will accurately, lawfully, and fairly report all accounts to EXPERIAN and/or another credit bureau immediately upon receipt of accounts information on the Accounts received from the CITY. F. COLLECTOR will provide technical support to enable electronic placement of PAGE 7 OF BID # 3624 Accounts. COLLECTOR will also provide regular, periodic software or electronic reports to the CITY to enable Account balance review by the CITY, and COLLECTOR comments regarding review of Accounts held by COLLECTOR, each in order to comply with the specifications of the "Request for Bid by Best Value" attached hereto as Exhibit "A." G. The captions of this Agreement are for informational purposes only and shall not in any way affect the substantive terms or conditions of this Agreement. IN WITNESS HEREOF, the City of Denton, Texas has executed this Agreement by and through its duly authorized undersigned City Manager; and COLLECTOR has executed this Agreement by and through ,its duly author~ undersigned officer, in duplicate original counterparts, on this the lr7flt day of !J Ol..afl/ ' 2007. CITY OF DENTON, TEXAS A Texas Municipal Cor ion CITY MANAGER B. ATTEST: JENNIFER WALTERS, CITY SECRETARY By CfA1Jf IliA. <1 APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY By: ~~~ / ' t!rb WITNESS/ATTEST: . c.vr By: PAGE 8 OF BID # 3624 Purchasing Department 901-8 Texas 5t. Denton, TX 76209 (940) 349-7100 www.dentonpurchasing.com ADDENDUM #1 Bid # 3624 Best Value Bid For Utilities. Ambulance. Code Enforcement Liens and Miscellaneous Receivables Collection Services BIDS DUE: November 28, 2006 2:00 P.M. Bid submitted by: Company Name BID # 3624 ADDENDUM #1 Addendum #1 to be returned with Bid Proposal The following answers are provided to address questions submitted by prospective proposers: 1. On page 10 of the RFP, under Submitting Bid Proposals, Part A. it states "including active drainage accounts and miscellaneous accounts." Can Denton explain what is meant by "active"? Are these accounts delinquent? Active drainage accounts are accounts that are active in our utility billing system and continue to bill each month. These accounts receive new billing monthly. There are currently twelve (12) active drainage accounts reported to the collection agency and are updated quarterly. 2. Are there any insurance requirements that have not been listed in the RFP aside from the Surety Bond while under contract, and can they be provided for review? No 3. Who are the incumbents, if any? Credit Systems International, Inc. 4. How long have they been providing the requested services? Since 2002 5. Has the current contract gone full term? Yes 6. Has Denton exercised all options to extend the current contract? Yes, we have extended to the maximum length of the contract. 7. Why is the contract out to bid? End of the four-year contract term 8. If not all accounts are owed by individuals, can the City provide a percentage breakout of accounts owed by individuals versus those owed by commercial businesses? Utilities/Miscellaneous Receivables Residential utility accounts would account for 98% of collections, whereas commercial utility accounts turned over for collections is a small percentage. Page 2 BID # 3624 ADDENDUM #1 Code Enforcement Liens Approximately 13% of the outstanding liens are on properties currently commercially owned. 9. What internal collections does Denton attempt before referring accounts to collections? Internal collections consist of reviewing of accounts and transferring outstanding amounts from final accounts to active accounts when applicable. Commercial accounts receive collection calls. All final accounts receive a final bill and two collection letters prior to transferring accounts to collection agency. 10. Will accounts be authorized for litigation? No 11. If necessary, will the historical accounts residing with the incumbent be transferred to the newly awarded agency, or at least accounts that are not under any payment arrangements? Yes, most collection accounts that are residing with the current collection agency will be transferred to the newly awarded agency. Please see the bid proposal page (Page 1 of Bid #3624) for the number of accounts and total amounts that the City plans to send. It is preferred that the newly awarded agency maintain payment arrangements for active collection accounts. 12. What are the current fees Denton is paying for the various account types, for both historical and ongoing account placements, including for litigation if authorized? Please see the attached Fee Schedule for Credit Systems International, Inc. 13. What kind of liquidation has Denton received under the current contract(s)? None 14. Does the City plan on conducting oral presentations or site visits as part of their selection process? Past selection was based solely on the information provided in bid proposals received. The City reserves the right to schedule site visits prior to award of contract. Page 3 BID # 3624 ADDENDUM #1 15. What is the current vendor's collection success percentage? Approximately fifteen percent (15%) 16. What is the City's estimated dollar value of future submissions? What is the average number of future accounts to be submitted? What age will the new accounts be at submission? See bid proposal page (Page 1 of Bid #3624) The deadline for submitting technical questions is November 17, 2006. Technical questions will not be accepted after this date. NO OTHER CHANGES AT THIS TIME. This form shall be signed and returned with your bid. Name: Signature: Company: Title: Date: Page 4 Exhibit A Purchasing Department 901-B Texas 5t. Denton, TX 76209 (940) 349-7100 www.dentonpurchasing.com Bid # 3624 Best Value Bid For Utilities, Ambulance, Code Enforcement Liens and Miscellaneous Receivables Collection Services The award of this contract will be based upon a "best value" evaluation as allowed by Chapter 252 of the Texas Local Government Code. The criteria for the evaluation is listed in the invitation to bid documents. Only those items listed can be used to determine "best value". BIDS DUE: November 28, 2006 2:00 P.M. Bid submitted by: Company Name TABLE OF CONTENTS PROPOSAL FORMS ...........................................................................................................1 - 2 BID INSTRUCTIONS AND CONDITIONS ........................................................................... 3 - 7 OPENING DATE, TIME, PROCEDURES, CONTACTS.................................................. 3 GENERAL CONDITIONS...........................................................................................3 - 6 EVALUATION CRITERIA ........................... .... .......................................... ..... ............ ......6 SPECIAL TERMS AND CONDITIONS............................................................................ 7 DISADVANTAGED BUSINESS ENTERPRiSES....................................................................... 8 VENDOR REFERENCES ..........................................................................................................9 TECHNICAL SPECIFICATIONS...................................................................................... 1 0 -13 APPENDIX A ...................................................................................................................14 - 24 SAMPLE SERVICE AGREEMENT ....................................................................... 15 - 22 CONFLICT OF INTEREST QUESTIONNAIRE ..................................................... 23 - 24 APPENDIX B ..................................................................................................................25 - 28 COLLECTION SERVICES QUESTIONNAIRE...................................................... 26 - 28 This Table of Contents is intended as an aid to bidders and not as a comprehensive listing of the bid package. Bidders are responsible for reading the entire bid package and complying with all specifications. CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES BID PROPOSAL Estimated Quantities Item Service No. of Amount Fee' Accts. A PART A - Utilities induding active drainage accounts and miscellaneous receivables 1 Outstanding accounts 11,579 $3,589,490 % (August 2001 - October 2006) 2 Monthly collections (Avg. age: 120 days) 200 $52,000 % B PART B - Emergency Medical Service Ambulance billing 1 Outstanding accounts 4713 1,967,785 % (1999 - April 2006) 2 Monthly collections (Avg. age: 240 days) 90 $90,000 % PART C - Code Enforcement Liens C induding mowing, trash and debris removal and other liens or iudaments 1 Outstanding accounts 463 $133,357 % 1986 - Sept. 2006 2 Monthly collections (Avg. age: 45 days) 5 $872 % Monthly collections for D Utilities/ Ambu lance/M iscellaneous 295 $142,872 % Receivables/Code Enforcement Liens (combined) Account collected by City if account had E been turned over to the vendor that N/A N/A % collections has not yet been actively pursued. , If your fee structure is not based on a percentage structure as shown above, please provide a detailed explanation of your fee structure. PAGE 1 OF BID # 3624 Bidder's Initiais CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES The undersigned agrees this bid becomes the property of the City of Denton after the official opening. The undersigned affirms he has familiarized himself with the local conditions under which the work is to be performed; satisfied himself of the conditions of delivery, handling and storage of equipment and all other matters that may be incidental to the work, before submitting a bid. The undersigned agrees, if this bid is accepted, to furnish any and all items/services upon which prices are offered, at the price(s) and upon the terms and conditions contained in the Specifications. The period for acceptance of this Bid Proposal will be sixty (60) calendar days unless a different period is noted by the bidder. The undersigned affirms that they are duly authorized to execute this contract, that this bid has not been prepared in collusion with any other Bidder, nor any employee ofthe City of Denton, and that the contents of this bid have not been communicated to any other bidder or to any employee of the City of Denton prior to the official opening of this bid. Vendor hereby assigns to purchaser any and all claims for overcharges associated with this contract which arise under the antitrust laws of the United States, 15 USCA Section 1 et seq., and which arise under the antitrust laws of the State of Texas, Tex. Bus. & Com. Code, Section 15.01, et seq. The undersigned affirms that they have read and do understand the specifications and any attachments contained in this bid package. NAME AND ADDRESS OF COMPANY: AUTHORIZED REPRESENTATIVE: Signature Date Name Title Fax No. Email. Tel. No. COMPANY IS: Business included in a Corporate Income Tax Return? YES NO Corporation organized & existing under the laws of the State of Partnership consisting of Individual trading as Principal offices are in the city of PAGE 2 OF BID # 3624 Bidder's Initials CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES COMPLETE SET OF ORIGINAL AND FIVE (5) COPIES OF EXECUTED BID PROPOSAL MUST BE RECEIVED IN THE PURCHASING DEPARTMENT AT 901-B TEXAS ST, DENTON, TX 76209 ON OR BEFORE NOVEMBER 28, 2006 AT 2:00 P.M. QUESTIONS REGARDING SPECIFICATIONS MUST BE SUBMITTED IN WRITING TO THE PURCHASING OFFICE FIVE (5) WORKING DAYS PRIOR TO THE BID OPENING. ALL QUESTIONS SUBMITTED AFTER THAT DATE WILL NOT BE CONSIDERED TO ENSURE ALL BIDDERS ARE GIVEN EQUAL ACCESS TO THE INFORMATION PROVIDED. All questions regarding the bid and purchasing process should be directed to: Tom Shaw, Purchasing Agent Email: Tom.Shaw@cityofdenton.com Phone: (940) 349-7100 Fax: (940) 349-7302 Directions to the Purchasing Department can be accessed atwww.dentonpurchasing.com (Click on "Directions to our Office") All bids. includinQ a "NO BID", are due in the PurchasinQ Department bv the due date, in sealed envelopes or boxes. All bids must be clearly marked with the name of the Company submitting the bid, the Bid Number and Date and Time of opening on the outside of the envelope/box. Original bid must be clearly marked "ORIGINAL" and contain all original signatures. All proposal pages must be initialed or signed where indicated. All bids will be publicly opened at the date and time listed above or as soon thereafter as practical. The City of Denton does not accept faxed or e-mailed bids. Anv bid received after the date and/or hour set for bid openinQ will be returned unopened. If bids/proposals are sent by mail to the Purchasing Department, the bidder shall be responsible for actual delivery of the bid to the Purchasing Department before the advertised date and hour for opening of bids. If mail is delayed either in the postal service or in the internal mail system of the City of Denton beyond the date and hour set for the bid opening, bids thus delayed will not be considered and will be returned unopened. Bids may be withdrawn at any time prior to the official opening. Alterations made before opening time must be initialed by bidder guaranteeing authenticity. Any attempt to negotiate or give information on the contents of this bid with the City of Denton or its representatives priorto award shall be grounds for disqualification. After the official opening, bids become the property of the City of Denton and may not be amended, altered or withdrawn without the recommendation of the Purchasing Agent. The approval of the City Council is required for public works projects. The City of Denton reserves the right to accept or reject in part or in whole any bids submitted, unless denied by the bidder, and to waive any technicalities for the best interest of the City. Any submitted article deviating from the specifications must be identified and have full descriptive data accompanying same, or it will not be considered. Submitted bids shall remain in force for a ninety (90) day period after opening or until award is made; whichever comes first. In case of default after bid acceptance, the City of Denton may at its option hold the accepted bidder or contractor liable for any and all resultant increased costs as a penalty for such default. The City of Denton will award the bid to the most qualified bidder while complying with all current state and local laws. The City of Denton is exempt from Federal Excise and State Sales Tax; therefore, tax must not be included in this bid. PAGE 3 OF BID # 3624 Bidder's Initials CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES The City of Denton is requesting bids for BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES. The City will only accept new products and will reject proposals for used or remanufactured goods. All bids must be submitted on the attached Bid Proposal Form. Vendors may bid on any or all items. The City of Denton will not enter into any contract where the cost is provisional upon such clauses as "escalator" or "cost-plus" clauses. All bids shall specify terms and conditions of payment, which will be considered as part of, but not control, the award of bid. City review, inspection, and processing procedures ordinarily require thirty (30) days after receipt of invoice, materials, or service. Bids which call for payment before thirty (30) days from receipt of invoice, or cash discounts given on such payment, will be considered only if, in the opinion ofthe Purchasing Agent, the review, inspection, and processing procedures can be completed as specified. Invoices shall be sent directly to the City of Denton Accounts Payable Department, 215 E McKinney St, Denton, TX, 76201-4299. It is the intention of the City of Denton to make payment on completed orders within thirty days after receipt of invoice or items; whichever is later, unless unusual circumstances arise. Invoices must be fully documented as to labor, materials, and equipment provided, jf applicable, and must reference the City of Denton Purchase Order Number in order to be processed. No payments shall be made on invoices not listing a Purchase Order Number. Continuina non-performance of the vendor in terms of Specifications shall be a basis for the termination of the contract by the City. The City shall not pay for work, equipment, or supplies that are unsatisfactory. Vendors will be given a reasonable opportunity before termination to correct the deficiencies. This, however, shall in no way be construed as negating the basis for non- performance termination. The contract mav be terminated by the City upon written thirty (30) days notice prior to cancellation. Bids will be considered irregular if they show any omissions, alteration of form, additions or conditions not called for, or irregularities of any kind. However, the City of Denton reserves the right to waive any irregularities. The City of Denton reserves the right to accept or reject in part or in whole any bids submitted, and to waive any technicalities forthe best interest of the City. Bids may be rejected, among other reasons, for any of the following specific reasons: 1. Bids containing any irregularities. 2. Unbalanced value of any items. 3. Bid price cannot be determined based upon information provided, i.e. missing freight charges, or other fees. This request for bids does not commit the City to award a contract, issue a purchase order, or pay any costs incurred in the preparation of a proposal in response to this bid invitation. PAGE 4 OF BID # 3624 Bidder's Initials CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES Bidders may be disqualified and their bids not considered for any of the following reasons: 1. Collusion exists among the Bidders. 2. Reasonable grounds for believing that any Bidder is interested in more than one Bid for the work contemplated. 3. The Bidder being interested in any litigation against the City. 4. The Bidder being in arrears on any existing contract or having defaulted on a previous contract. 5. Lack of competency as revealed by a financial statement, experience and equipment, questionnaires, etc. 6. Uncompleted work, which in the judgment of the City, will prevent or hinder the prompt completion of additional work, if awarded. 7. Any other unresolved issues with the City. Due care and diligence has been used in preparation of this information, and it is believed to be substantially correct. However, the responsibility for determining the full extent of the exposure and the verification of all information presented herein shall rest solely with the proposer. The City of Denton and its representatives will not be responsible for any errors or omissions in these specifications, nor for the failure on the part of the proposer to determine the full extent of the exposures. The successful bidder may not assign their rights and duties under an award without the written consent of the Purchasing Agent. Such consent shall not relieve the assignor of liability in the event of default by the assignee. The City reserves the right to demand bond or penalty to guarantee delivery by the date indicated. If order is given and the Bidder fails to furnish the materials by the guaranteed date, the City reserves the right to cancel the order without liability on its part. PAGE 5 OF BID # 3624 Bidder's Initials CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES Bid Evaluation This is a Best Value Bid that will be evaluated by the criteria established in this bid document. Response to specification is primary in determining the best value. Failure to comply with the listed General Conditions may result in disqualification of bid. The successful bidder will be that bidder which provides the best value bid. The best value bids will be evaluated and rated on the following areas. 1. Compliance with bid specifications 25 pts. 2. Agency's past/current experience working with a combination of utilities and ambulance accounts 15 pts. 3. Number of current contracts with other municipal governmental entities 20 pts. 4. Price for services 25 pts. 5. Process and timing of payments to City and billing for services 15 pts. The award of this contract will be based upon a "best value" evaluation as allowed by Chapter 252 of the Texas Local Government Code. The criteria for the evaluation is listed in the invitation to bid documents. Only those items listed can be used to determine "best value". Award The City reserves the right to award by line item, section, or by entire bid; whichever is most advantageous to the City, unless denied by the bidder. The Denton City Council must approve the vendor selected to provide the services outlined in the specifications. Each bid proposal should be submitted as completely and accurately as possible. The City reserves the right to request additional data or clarifications as needed. Quantities indicated on the Bid Proposal Forms are estimates based upon the best available information. The City reserves the right to increase or decrease the quantities to meet its actual needs without any adjustments in the bid price. I ndividual purchase orders will be issued on an as needed basis. Contracts & Bonds The successful awarded vendor will be required to sign the original contract and submit a $10,000 surety bond, guaranteeing payment to the City for monies due the City, before work is to commence. PAGE 6 OF BID # 3624 Bidder's Initials CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES SPECIAL TERMS AND CONDITIONS Contract Terms Successful vendor(s) will be awarded a twenty-four (24) month contract, effective from date of award or notice to proceed as determined by the City of Denton Purchasing Department. At the City of Denton's option and approval by the vendor, the contract may be renewed for two additional one (1) year periods, as further explained in Renewal Options. Prices must remain firm for the entire contract. Renewal Options The City of Denton reserves the right to exercise an option to renew the contract of the vendor for two additional one (1) year periods, provided such option is stipulated in the Special Conditions and agreed upon in writing by both parties. All prices, terms and conditions must remain the same for each optional additionl;11 one-year period. If the City exercises the right in writing, the Bidder shall update and submit any legal documents required during the initial solicitation by no later than thirty (30) calendar days prior to the commencement of the option period. These documents, if applicable, will be specified in the Special Conditions and include, but are not limited to, Insurance Certificates and Performance Bonds and must be in force for the full period of the option. If the updated documents are not submitted by the Bidder in complete form within the time specified, the City will rescind its option and seek a new bid solicitation. Cooperative Purchasing The City of Denton encourages Cooperative Purchasing efforts among the governmental entities; therefore it would be in the vendor's best interest to help the City of Denton facilitate this cooperative effort. Should other Governmental Entities decide to participate in this contract, would you, the Vendor, agree that all terms, conditions, specifications, and pricinq would apply? Yes No If you, the Vendor, checked yes, the following will apply: Governmental Entities utilizing Inter-Governmental Contracts with the City of Denton will be eligible, but not obligated, to purchase materials/services under the contract(s) awarded as a result of this solicitation. All purchases by Governmental Entities other than the City of Denton will be billed directly to that Governmental Entity and paid by that Governmental Entity. The City of Denton will not be responsible for another Governmental Entity's debts. Each Governmental Entity will order its own material/services as needed. PAGE 7 OF BID # 3624 Bidder's Initials CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES FOR DISADVANTAGED BUSINESS ENTERPRISES ONLY DisadvantaQed Business Enterprises (DBE) are encouraged to participate in the City of Denton's bid process. The Purchasing Department will provide additional clarification of specifications, assistance with Bid Proposal Forms, and further explanation of bidding procedures to those DBEs who request it. Representatives from DBE companies should identify themselves as such and submit a copy of the Certification. The City recognizes the certifications ofthe State of Texas Building and Procurement Commission HUB Program. All companies seeking information concerning DBE certification are urged to contact. State of Texas HUB Program Texas Building and Procurement Commission PO Box 13047 Austin, TX 78711-3047 (512) 463-5872 If your company is already certified, attach a copy of your certification to this form and return with bid. COMPANY NAME: REPRESENTATIVE: ADDRESS: CITY, STATE, ZIP: TELEPHONE NO. FAX NO . Indicate all that apply: Minority-Owned Business Enterprise Women-Owned Business Enterprise Disadvantaged Business Enterprise PAGE 8 OF BID # 3624 Bidder's Initials CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES VENDOR REFERENCES Please list three (3) Government references, other than the City of Denton, who can verify the quality of service your company provides. The City prefers customers of similar size and scope of work to this bid. II: <;ii , " ' . , REf"ERENCE6NE' " ":::;".' ~,,<, "3;t(:.~.;: :: : . ,'x' ".....111 GOVERNMENT/COMPANY NAME: LOCATION: CONTACT PERSON AND TITLE: TELEPHONE NUMBER: SCOPE OF WORK: CONTRACT PERIOD: II REFERENCE two GOVERNMENT/COMPANY NAME: LOCATION: CONTACT PERSON AND TITLE: TELEPHONE NUMBER: SCOPE OF WORK: CONTRACT PERIOD: II. .'" ,:,;:,::", , ',' ~ .'~, ~'-'~"~- "-'~':>:}:-:':f, REFERENCE THREE " ,<.,'.,y;-- ,,' ". .....11 " ,','" GOVERNMENT/COMPANY NAME: LOCATION: CONTACT PERSON AND TITLE: TELEPHONE NUMBER: SCOPE OF WORK: CONTRACT PERIOD: PAGE 9 OF BID # 3624 Bidder's Initials CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES SPECIFICATIONS The City of Denton (City), is seeking a qualified Collection Company (Vendor), to provide collection services for accounts receivables. Account receivables that are owed to, but not been collected by the City, can include services for utilities, ambulance, code enforcement liens and other miscellaneous accounts. It is preferred that collection services are provided for all the services listed above. The majority of accounts sent to the vendor for collections will consist of utilities and ambulance services. If collection services cannot be provided for the three services, utilities, ambulance services and code enforcement liens, please submit a quote for each service that can be performed by your company. The following information MUST be include in a submitted proposal: Company or Firm Legal Name Physical Address and Mailing Address (if different from Physical Address) of Bidder Person Authorized to Sign Bid Proposal Authorized Person's Title Phone Number(s) (including area code) of Company or Firm Company or Firm Fax Number Federal Tax 10# Submitting Bid Proposals This invitation for best value bids is seeking bid proposals for three (3) distinct projects: Part A: for collection services for delinquent utility accounts, including active drainage accounts and miscellaneous accounts. Part B: for collection services for ambulance billing. Part C: for collection services of code enforcement liens including mowing, trash and debris removal and all other liens or judgments the City may hold and in its discretion for collections. Proposals may be submitted on a single PART or a combination of PART. The contract will be awarded to the vendor whose proposal is determined by the City to be the best value service provider that meets specifications. The following requirements must be met for full consideration in the decision making process. . Vendor must obtain a surety bond for $10,000.00, guaranteeing payment to the City for monies due the City under the contract period. . Vendor must be able to accept and transmit information from the City via the mail, fax or electronic file transmission at the City's option. PAGE 10 OF BID # 3624 Bidder's Initials CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES . Vendor must report all accounts to Experian and/or another national credit bureau, at the time the accounts are received from the City. . Vendor must actively pursue all receivables, turned over by the City, regardless of the amount owed. . Vendor will retain all accounts for a period of 365 days. Inactive uncollected accounts must be promptly returned to the City along with its findings and recommendations after inactivity for 365 days. Active accounts (those who have a payment pending or are actively on a payment plan) may be retained by the vendor for an additional 180 days, but will be returned sooner if an account becomes inactive. If the vendor has not succeeded in collection any part of an account during that time period, then the vendor must promptly submit its findings and recommendations to the City. . Vendor will retain a record of all accounts for the life of the account for credit bureau reporting purposes. . In processing and handling Emergency Medical Service Ambulance accounts, vendor must comply with all Health Insurance Portability and Accountability Act (HIPPA) requirements and must maintain a compliance program or policy in place. . Vendor must provide monthly reports on the collection activities. These reports are due to the City by the 15th of each month and should include: 1. Acknowledgment of accounts received (number of accounts and total revenue) 2. Itemized monthly activity statements (include for each service: summary of collection activity, each debtor account collection status, and verified fee amount due to collector) 3. Statement of accounts being returned to the City . Vendor must provide regular, periodic software or electronic reports to the City to enable account balance review by the City, and vendor comments regarding review of accounts held by the vendor. Vendor must provide technical support to enable electronic placement of accounts. . The City will pay the agreed upon fee based on the amount collected on a monthly basis. A monthly report will be provided by the City by the 5th working day of payments received from debtors during the previous month for billing purposes. . It is preferred that the vendor is located within the state of Texas and preferably located within the Dallas/Fort WorthlDenton Metroplex. The vendor must be licensed to conduct business in the state of Texas. . It is preferred that the vendor employs bilingual collectors who can correspond with Spanish-speaking debtors both orally and in writing. PAGE 11 OF BID # 3624 Bidder's Initials CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES . Vendor correspondence and collection methods must comply with a format acceptable to the City and be in accordance with all federal, state and local statutes regarding Fair Debt Collections practices. . Vendor's collection experience and qualifications must be sufficient to provide the most adequate and secure collection services as determined by the City. . Vendor must provide skip-tracing services. Schedule of Events Issuing the bid invitation......................................................................... November 3,2006 Deadline for technical questions by.................................................... November 17, 2006 Bid opening date .................................................................................. November 28,2006 Recommendation to City Council for Award......................................... December 19, 2006 Contract Start Date .................................................................................... January 9,2007 All technical questions regarding this bid should be directed in writing to: Charles Atkinson Customer Service Manager City of Denton 601 E. Hickory, St., Ste F Denton, TX 76205 Fax: 940-349-7211 E-Mail: Charles.Atkinson@cityofdenton.com Citv of Denton's Estimated Outstandinq Account Data Estimates as of October 2006: Part A B Tvpe of Account Time Period No. of Accounts Averaqe Amount Utility 8/2001 - 10/2006 11,579 $310 per acct. Utility Avg. Age 120 days 200 $52,000 Ambulance 1999 - April 2006 4713 $417 per acct. Ambulance Avg. Age 240 days 90 $90,000 Code Enf. Liens 1986 - Sept. 2006 463 $288 per acct. Code Enf. Liens Avg. Age 45 days 5 $872.22 C PAGE 12 OF BID # 3624 Bidder's Initials CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES The following response components must be included with bid proposal: (tab in order) 1. Company Experience Detail the experience the company office that will be responsible for this account has had in collection of delinquent municipal accounts receivables. Include answers to the questions listed under the Experience and Reputation section of the Collection Services Questionnaire (Appendix B). 2. Provide five references of collections in excess of $500,000 and any governmental agencies. If not applicable, list your top three accounts. Include name, address, phone number of the contact person, and length of time such entity or entities have been your client. Indicate specifically what type(s) of collections services you provide. The vendor reference page included on page 9 shall be used. 3. Provide the number and type of collection clients your company has gained in the last 12 months and how many your company has lost in the last 12 months, and briefly explain the loss of each client. 4. Explain in relevant detail how your company researches proper addresses and ownership for delinquent accounts. 5. Provide outline of progressive course of action taken to pursue delinquent accounts. You may use the format under question number 1 on the Collection Services Questionnaire (Appendix B). 6. Methods to be used Describe the methods your company will use in the collection process for delinquent municipal accounts receivables. Include methods as producing and mailing collection letters, delinquent statements, notifications and other similar mailings, follow-up calls, and handling inquiries from customers 7. Provide sample relevant documents, including the following: a. Invoices b. Proposed collection notices/letters to be sent to an individual c. Proposed collection notices/letters to be sent to an entity or a company d. Telephone scripts e. Progress/status reports that will be provided to the City of Denton 8. Completed Collection Services Questionnaire (Appendix B) PAGE 13 OF BID # 3624 Bidder's Initials CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES APPENDIX A PAGE 14 OF BID # 3624 CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES BEST VALUE BID AGREEMENT FOR COLLECTION SERVICES THIS AGREEMENT is made and entered into as of the day of 2007, by and between the City of Denton, Texas, a Texas Municipal Corporation, with its principal office at 215 East McKinney Street, Denton, Texas 76201 (hereafter "CITY"); and , with its corporate office at ,(hereafter"COLLECTOR"); each acting herein, by and through their duly authorized representative or officer. WITNESSETH, that in consideration of the covenants and agreements herein contained, the parties hereto do mutually agree as follows: ARTICLE I EMPLOYMENT The CITY hereby contracts with COLLECTOR, as an independent contractor, and the COLLECTOR hereby agrees to perform the services herein in connection with the Project as stated in the articles to follow, with diligence and in accordance with the professional standards customarily obtained for such services in the State of Texas. The professional services set out herein are in connection with the following described Project, to wit: To provide collection services for miscellaneous accounts receivable. Accounts receivable that are owed to, but have not been collected by the CITY, can include services for utilities, ambulance and other miscellaneous accounts. The requirement is to increase revenue collections and at the same time maintain a professional approach when managing "bad debt" accounts of the CITY. ARTICLE II SCOPE OF SERVICES The COLLECTOR shall perform the following services in a professional manner: A. The COLLECTOR shall perform those services as are necessary and as described in the CITY'S "Best Value Bid for Utilities, Ambulance, Code Enforcement Liens and Miscellaneous Receivables Collection Services" which is attached hereto, incorporated by reference and made a part hereof as Exhibit "A." B. Referral of Accounts - Collector agrees to accept all first placement accounts receivable referred to Collector for collection ("Accounts") by CITY. It is expressly agreed that any and all Account information disclosed to Collector through placement of Accounts will remain in the strictest confidence and will not be disclosed to any other party without the CITY's written authorization and within the legal requirements of the Health Insurance Portability and Accountability Act (HIPPA). PAGE 15 OF BID # 3624 CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES C. Collection Efforts - COLLECTOR's services and collection efforts shall include the sending of demand letters; attempting telephone contact with debtors; attempting to locate debtors; obtain updated financial and credit information with respect to debtors; and arranging payment arrangements from the debtors in order to satisfy the indebtedness to be collected. For each Account, COLLECTOR shall make these collection efforts for a period of at least 365 days from receipt of the Account. At the end ofthe 365 day period, all inactive uncollected Accounts must be promptly returned to the CITY, along with its findings and recommendations. Active Accounts (those who have a payment pending or are actively on a payment plan) may be retained by COLLECTOR for an additional 180 days, for a total of 545 days, or returned sooner if an Account becomes inactive. If COLLECTOR has not succeeded in collecting any part of the Account during that time period, then COLLECTOR shall promptly submit its findings and recommendations to the CITY. D. Collections and Settlement - COLLECTOR shall in all cases attempt to collect the total sum of outstanding receivables and all charges owed by the debtor on an Account. E. Notification of Claims - COLLECTOR agrees to promptly advise CITY of any claims or causes of action asserted against the CITY by any debtor. F. Return of Accounts - Unless this Agreement shall be terminated as hereinafter provided, and unless CITY expressly agrees otherwise, in advance, for each Account, COLLECTOR shall cease its activities and return the Account to the CITY if (i) no collection arrangement has been made within365 days of receiving the Account, or (ii) after having made a collection arrangement for a particular Account, no amounts are collected by the Collector for a continuous period of 365 days. The Accounts may not be held for a period longer than eighteen (18) months. 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 is requested in the "Best Value Bid for Utilities, Ambulance, Code Enforcement Liens and Miscellaneous Receivables Collection Services" document attached hereto 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 its date of final approval by the Denton City Council. The term of this Agreement shall be for twenty-four (24) months. It shall be PAGE 16 OF BID # 3624 CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES renewable for up to two (2) additional one-year periods, with all the terms and conditions remaining unchanged, if agreed to by both parties, provided that COLLECTOR's performance of this Agreement is not objectionable as determined by the City Council. Provided however, the renewal of said Agreement for each of the two (2) additional one-year periods shall be automatic unless the CITY provide a minimum of thirty (30) days written notice to the other party, before the Agreement term or any such renewal term expires. 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 if (ii) CITY reasonably determines that there has been a material adverse change in COLLECTOR's financial condition. COLLECTOR shall still be entitled to receive its fee as provided in Article IV hereof. In case of termination hereunder this paragraph (i) all accounts and file materials shall be returned immediately to the CITY, (ii) COLLECTOR shall immediately cease all collection efforts on CITY Accounts. ARTICLE IV COMPENSATION COLLECTOR as full compensation for its services performed hereunder shall receive a fee of % on all monies collected on Accounts in the COLLECTOR'S possession for which the COLLECTOR has begun active collection procedures. Active collections will be based on proof of first contact with the debtor. If the CITY collects on an Account that is in the COLLECTOR's possession that the COLLECTOR has not started pursuing collections, then COLLECTOR shall receive a fee of %. These fees are more particularly outlined in the "Summary" attached hereto as Exhibit "B". The fee for collections requiring legal action shall be %. It is understood, however, that no legal action will be taken by the COLLECTOR without tre express advance written approval of the CITY. ARTICLE V REMITTANCES COLLECTOR shall instruct debtors to send their payment(s) directly to the COLLECTOR. COLLECTOR shall include payment instructions, as specified in the "Best Value Bid for Utilities, Ambulance, Code Enforcement Liens and Miscellaneous Receivables Collection Services" (Exhibit "A" hereto), in all correspondence or other materials sent to each debtor. The COLLECTOR will remit monthly, by the of each month, to the CITY payment(s) received by debtors with a report of payments received from debtors on Accounts during the previous month. The CITY shall remit monthly, by the 15th of each month, the agreed fee to COLLECTOR based solely upon the reported information. ARTICLE VI INDEPENDENT CONTRACTOR The COLLECTOR shall provide services to the CITY as an independent contractor, PAGE 17 OF BID # 3624 CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES not as an employee of the CITY. COLLECTOR shall not have or claim 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 THE 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. ARTICLE VIII ARBITRATION AND ALTERNATE DISPUTE RESOLUTION The CITY and COLLECTOR may agree to settle any dispute under this Agreement by submitting the dispute to arbitration or other means of alternate dispute resolution such as mediation. 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 During the performance of the professional services under this Agreement, the COLLECTOR shall maintain the following surety bond with a surety licensed to do business in the State of Texas and in a form approved by the City Attorney: A. A surety bond in an amount of at least $10,000, guaranteeing payment to the CITY for monies due the CITY during the Agreement term or any renewal thereof, to be in effect for the term of this Agreement or any renewal thereof, and for an additional period of ninety (90) days thereafter. PAGE 18 OF BID # 3624 CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES ARTICLE X RESPONSIBILITY FOR CLAIMS AND LIABILITIES Approval by the, CITY shall not constitute nor be deemed a release of the responsibility and liability of the COLLECTOR, its employees, associates, agents, subcontractors and sub-consultants 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, associates, agents, subcontractors, and sub- consultants. ARTICLE XI NOTICES All notices, communications, and reports required or permitted under this Agreement shall be personally delivered or mailed to the respective parties by depositing same in the United States mail at the address shown below, certified mail, return receipt requested unless otherwise specified herein. Mailed notices shall be deemed communicated as of three (3) days mailing: TO COLLECTOR: TO CITY: For Contractual Notices For Account Activitv CITY OF DENTON Attn: Charles Atkinson Customer Svc. Manager 601 E. Hickory St., Ste. F Denton, TX 76205 CITY OF DENTON Attn: Pamela Dugger Credit/Collections Accounts Supervisor 601 E. Hickory St., Ste. F Denton, TX 76205 All notices shall be deemed effective upon receipt by the party to whom such notice is given or within three days mailing. ARTICLE XII ENTIRE AGREEMENT This Agreement consisting of eight (8) pages and two (2) Exhibits constitutes the complete and exclusive statement of the terms of their agreements and supercedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications and agreements which may have been made in connection with the subject matter hereof. PAGE 19 OF BID # 3624 CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES ARTICLE XIII SEVERABILITY If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the party shall reform this 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 XIV COMPLIANCE WITH LAWS The COLLECTOR shall comply with all federal, state, local laws, rules, regulations, and ordinances regarding Fair Debt Collections practices for which is applicable to the work covered hereunder as they may now read or hereinafter be amended. ARTICLE XV DISCRIMINATION 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 any contractual relations with the CITY. COLLECTOR shall promptly inform the CITY in writing of any conflict of interest or potential conflict of interest that may arise during the term of this Agreement. B. All services required hereunder will be performed by the COLLECTOR or under its care, custody, and 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 interest in this Agreement and shall not transfer any interest in this Agreement (whether by assignment, novation or otherwise) without the prior written consent of the CITY. PAGE 20 OF BID # 3624 CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES ARTICLE XVIII MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith. No evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, unless such waiver or modification is in writing, and is duly executed. The parties further agree that the provisions of this article will not be waived unless as herein set forth. ARTICLE XIX MISCELLANEOUS A. The following Exhibits are attached to, incorporated herewith, and are made a part of this Agreement: 1. Exhibit "A" - Bid #3624 - Best Value Bid for Utilities, Ambulance, Code Enforcement Liens and Miscellaneous Receivables Collection Services. 2. Exhibit "B" - Summary of Proposed Services B. Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton County, Texas. This Agreement shall be construed in accordance with the laws of the State of Texas. C. COLLECTOR will promptly advise CITY of any Account on which it receives a notice of bankruptcy. At the CITY's written request, COLLECTOR will file a proof of claim on behalf of the CITY in CITY's name, as its agent. D. If COLLECTOR's efforts result in collateral, securing an Account, being returned to the CITY, then COLLECTOR shall be entitled to receive the standard fee that otherwise would have been paid under Article IV herein, based upon the net amount of money that the CITY receives from the sale of the collateral. The cost to the CITY of repossession, of storing, and of selling the collateral shall be first deducted from the amount of sale proceeds COLLECTOR is paid a fee on. CITY shall promptly report to COLLECTOR when the collateral is sold, the applicable costs of repossession, of storage, of selling the collateral, and the sale price. CITY shall then remit COLLECTOR's fee hereunder within thirty (30) days from receipt of payment from the Purchaser of the property at the sale. E. COLLECTOR will accurately, lawfully, and fairly report all accounts to EXPERIAN and/or another credit bureau immediately upon receipt of accounts information on the Accounts received from the CITY. PAGE 21 OF BID # 3624 CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES F. COLLECTOR will provide technical support to enable electronic placement of Accounts. COLLECTOR will also provide regular, periodic software or electronic reports to the CITY to enable Account balance review by the CITY, and COLLECTOR comments regarding review of Accounts held by COLLECTOR, each in order to comply with the specifications of the "Request for Bid by Best Value" attached hereto as Exhibit "A." G. The captions ofthis Agreement are for informational purposes only and shall not in any way affect the substantive terms or conditions of this Agreement. IN WITNESS HEREOF, the City of Denton, Texas has executed this Agreement by and through its duly authorized undersigned City Manager; and COLLECTOR has executed this Agreement by and through its duly authorized undersigned officer, in duplicate original counterparts, on this the day of ,2007. CITY OF DENTON, TEXAS A Texas Municipal Corporation By: CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY By: (NAME OF COLLECTOR) By: Name: Title: WITNESS/ATTEST: By: PAGE 22 OF BID # 3624 CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES APPENDIX B PAGE 25 OF BID # 3624 CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES COLLECTION SERVICES QUESTIONNAIRE for UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES Collection Process I. What steps will be taken by you to collect? . . . . How do you collect? (Include operating procedures and processes) 2. Do you perform skip tracing? Yes No 3. Can collection notices be prepared in Spanish at no additional cost? Yes No 4. Do you have employees who can speak and write in Spanish? Yes No PAGE 26 OF BID # 3624 CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES 5. How do you handle customers questions or problems? Experience and Reputation 6. What amount do you expect to collect? $ What is your recovery rate? % 7. How many professionally trained collectors do you have on your staff? 8. How many years has your fIrm been in the collection business? _years _ months 9. Are you currently collecting for a utility company? Yes No If yes, how long have you collected for a utility company? years months 10. Are you currently collecting for ambulance or medical services? Yes No If yes, how long have you collected for an ambulance or medical services? years months II. Are you currently collecting for code enforcement liens? Yes No If yes, how long have you collected for code enforcement liens? years months PAGE 27 OF BID # 3624 CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES 12. Upon request, will you provide an independently audited financial statement? Yes No 13. Have you received any complaints concerning non-compliance to the applicable federal, state, and local statutes regarding Fair Debt Collection practices? Yes No If yes, please provide an explanation. Compatibility 14. Do you have the ability to incorporate a remittance slip in your written correspondences? Yes No 15. Can you combine multiple accounts into a single collection effort? (i.e. Collect $500 for ambulance service plus two utility account at $200 each from the same individual or entity.) Yes No 16. What is the minimum combined amount for which you will perform collections? $ 17. Can you accept the Agreement as it is written? Yes No If no, please indicate the areas of proposed changes. 18. Is your office located within the DallaslFort WorthlDenton Metroplex? Yes No PAGE 28 OF BID # 3624 Exhibit B CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES . BID PROPOSAL Estimated Quantities Item Service No. of Amount Fee" Accts. A PART A- Utilities including active drainage accounts and miscellaneous receivables 1 Outstanding accounts 11,579 $3,589,490 ~% (August 2001 - October 2006) 2 Monthly collections (Avg. age: 120 days) 200 $52,000 01.1. CL% B PART B - Emergency Medical Service Ambulance billing - 1 Outstanding accounts 4713 1,967,785 om , 'L% (1999 - April 2006) 2 Monthly collections (Avg. age: 240 days) 90 $90,000 J4.CL%- .... PART t - Code Enforcement Liens C including mowing, trash and debris removal "'" and other liens or iudaments - .. 1 Outstanding accounts 463 $133,357 ot1....9- % 1986 - Sept. 2006 2 Monthly collections (Avg. age: 45 days) 5 $872 ~% Monthly collections for D. Utilities/Ambulance/Miscellaneous 295 $142,872 ~~ . 'l % Receivables/Code Enforcement Liens . (combined) Account collected by City if account had E been turned over to the vendor that N/A N/A % collections has not yet been actively pursued. " If your fee structure is not based on a percentage structure as shown above, please provide a dl?tailed explanation of your fee structure. - PAGE 1 OF BID # 3624 Bidder's Initials ~ CITY OF DENTON BEST VALUE BID FOR UTlLmES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES The undersigned agrees this bid becomes the property of the City of Denton after the official opening. The undersigned affirms he has familiarized himselfwith the local conditions under which the work is to be performed; satisfied himself of the conditions of delivery, handling and storage of equipment and all other matters that may be incidental to the work, before submitting a bid. The undersigned agrees, ifthis bid is accepted, to furnish any and all items/services upon which prices are offered, at the price(s) and upon the terms and conditions contained in the Specifications. The period for acceptance of this Bid Proposal will be sixty (60) calendar days unless a different period is noted by the bidder. . The undersigned affirms that they are duly authorized to execute this .contract, that this bid has not been. prepared in collusion with any other Bidder, nor any employee ofthe City ofDenton, and thatthe contents of this bid have not been communicated to any other bidder or to any employee of the City of Denton prior to the official opening of this bid. Vendor hereby assigns to purchaser any and all claims for .overcharges associated with this contract which arise under the antitrust laws of the United States, 15 USCA Section 1 et sea., and which arise under the antitrust laws of the State of Texas, Tex. Bus. & Com~ Code, Section 15.01, et sea. The undersigned affirms that they have read and do understand the specifications and any attachments contained in this bid packcige. NAME. AND ADDRESS OF ~DMPANY' ::;:>lD RE1.:'ENT~~~... ) let" CoW\-Iry C'Ju..b LAN- Date~~~~~ ~. J;\' 7Mf,t ~:t;:.f~,;:;:t~... Tel. No.~'.hBoo ~DS.7S416 / Fax No. . . Email. J~MMOI'\s{A)(r,J i~y~~ 11\+ . (1)1 COMPANY IS: Business included in a Corporate IncomeTax Return? ~ YES -LCorporation organized & existing under the laws of the State Of.=r;Jiln "t Partnership consisting of Individual trading as Principal offices are in the city of NO PAGE 2 OF BID # 3624 Bidder's InitialS~ ,. i / / BID # 3624 ADDENDUM #1 15. What is the current vendor's collection success percentage? Approximately fifteen percent (15%) 16. What is the City's estimated dollar value of future submissions? What is the average number of future accounts to be submitted? What age will the new accounts be at submission? See bid proposal page (Page 1 of Bid #3624) The deadline for submitting technical questions is November 17,2006. Technical questions will not be accepted after this date. -.) NO OTHER CHANGES AT THIS TIME. This form shall be signed and returned with your bid. Name: Title: .l~' Date: Page 4 CREDIT SYSTEMS .INTERNATIONAL, INC. Credit Systems International, Inc. - Best Value Bid Number 3624 Citv of Denton Collection Services 1. Company Experience Credit Systems International, Ine. (CSII), headquartered in Fort Worth., Texas, continues to provide dependable account management and bad debt recovery solutions for a multitude of industries with extensive experience in large volume account receivables for the utility and medical industries as well as miscellaneous portfolios. Since 1980, CSll has had the privilege to hold long term partnerships with entities and municipalities such TXU Energy, Austin Energy/City of Austin, Oklahoma Natural Gas, Brownsville Public Utility Board, City of Denton, Moo Star Ambulance, Green Mountain Energy Company, First Choice Power, L.P. and City of Mansfield to name just a few. For over 26 years, CSll has remained devoted to exceptional client service and targets a spirit of excellence in the area of compliance, training, and remaining sensitive to our client's public image. CSll's Management Team has reviewed all aspects of the Best Value Bid Request as well as reviewed current statistical information pertaining to the City of Denton's existing collection portfolio and we are honored to submit our strategic response to the bid. CSll continues to provide a unique and customized approach to our account due diligence and recovery strategies for debt reconciliation which is what allows our agency to remain at the cutting edge of our industry. CSll's technical infrastructure provides an excellent tool in the processing and management of large volume account portfolios. CSll's dialing system promotes high volume calls which increases production by more than five times per collector. CSll employees approximately 45-50 Collection Specialists. However, with our technology, CSll's production is equivalent to approximately a 200 employee collection team. Our continuously enhanced computer system is designed to efficiently prioritize accounts for consistent follow up. At any given time, CSll remains ready to accept an immediate increase in accounts without the need to expand or upgrade our systems. As the current collection agency for the City of Denton, CSll would continue to expect recoveries to remain at approximately 15% and will always seek for avenues and new programs to enhance this figure as the portfolio matures. Considering CSll is a locally based agency and approximately 75% percent of the accounts in our system are local, our knowledge and understanding of the City of Denton's customer base, payer Page 1 of 15 Credit Systems International, Inc. -Best Value Bid Number 3624 Cliv of Denton CoUection Services mix and geographic areas provides an excellent advantage to customizing and manavng the account portfolios. CSII does not handle retail collections such as credit card and deficiency balance accounts nor does CSII utilize hard core collection techniques. CSII's utility client's provide an excellent resource for obtaining current addresses. Debtors with multiple accounts are "linked" during processing. CSII uses a scoring system, similar to credit bureaus, to link debtors with more than one account. This is an invaluable skip tracing tool! Under HIP AA regulations, patient demographics and information cannot be shared in the collection process. Therefore, CSII has measures in place to cease the updating of account information from medical to the utility accounts. However, medical clients still benefit from information received by CSII's utility clients as well as all Utility clients benefit tremendously! This is a valuable tool considering all of CSII's utility clients. In addition to utilizing CSII's data base, another resource which optimizes CSII's account recovery is skip tracing. Periodically throughout an account's collection process, CSII downloads the account to a national third party skip trace firm. Information changes over time and our intent is to obtain new location information. Our statistics indicate that approximately 60% of the accounts which we are able to locate through skip tracing pay their account in full. CSII's philosophy for debt collection is that optimum recovery is achieved by speaking to debtors; Our collectors are trained to ski1lfully negotiate payment on accounts. Once contact is made with a debtor, the goal is to professionally collect the balance in the least amount of time and with the least number of contacts - without jeopardizing our clients' public image. Therefore, CSII's collection staff reCeives intensive training. CSII has not received any valid complaints concerning non- compliance to any portion of the FDCP A, FCRA, IllP AA or any additional federal, state, or local statutes. Again, CSII understands the customer base and payor mix for the City of Denton and our Collection Specialists are aware of the professional protocol and account due diligence required for maximum recoveries. There will not be any training necessary to implement this program with CSII which will result in no downtime of recoveries for the City of Denton. CSII's organization skills in coordinating communications with the City of Denton provides an excellent advantage for the success of our professional relationship. All clients are important to us and as one of CSII's top clients, the City of Denton's needs will always be prioritized. In-house service representatives will remain assigned to each of the Cities portfolios. CSII has policies and procedures in place to ensure clients are assisted irrunediately. Voice mail is utilized only at the client's request. Our client lines are answered by switchboard operators so that clients can receive inunediate assistance. We understand that when a client calls, waiting should not be an option. CSII's experience with municipal accounts and qualifications to serve as a collection agency for the City of Denton is our experience in high volume account placement of medical, utility, and Page 2 of 15 Credit Systems International, Inc. - Best Value Bid Number 3624 Citv of Denton Collection Services miscellaneous accounts, our demographic location, professionally trained staff, excellent client service, and advanced technical infrastructure. CSll is a locally based agency with all the tools of a large national company. CSll's advantage of knowing the geographical area promotes an excellent basis for providing account recovery strategies for the City of Denton. As a local, privately owned collection agency, providing collection services for the city will keep jobs within in our local community and contributes to economic development. CSll will be happy to furnish the City with a SAS70 financial report upon request. Since CSll is a privately help corporation, audited financial statements are not mandatory. Therefore, CSll has an annually updated SAS70 report available for our clients. CSll is proud to partner with a city located in the "County Seat" of Denton County and which supports the United Way with such outstanding and remarkable contributions from their staft1 It is truly an honor and CSll will always be committed to remaining sensitive to the City of Denton's public image while obtaining the highest possible return on all bad debt portfolios. 2. References TXU Energy - Client Since 1983 Mr. Tim Hartley 200 Vista Ridge Palestine, Texas 75801 (903) 661-4202 Utility Portfolio Residential and Commercial Oklahoma Natural Gas - Client Since 1996 Mr. Kelly Park P.O. Box 871, Mail Drop 15-0 Tulsa, Oklahoma 74102 (918) 588-7654 Natural Gas Portfolio Residential Green Mountain Energy Company - Client Since 2004 Ms. Tracey Adams 300 West 6th Street Austin, Texas 78701 (512) 691-6336 Utility Portfolio Residential and Commercial Page 3 of 15 Credit Systems International, Ine. - Best Value Bid Number 3624 Ci/v of Denton Collection Services . ~Te$-I~ First Choice Power - Client Since 11-2006 4100 International Plaza, Tower IT 9th Floor Fort Worth, TX 76109 817-762-7518 Mr. Brad Hammond brad.hammond@fIrstchoicepower.com Utility Portfolio City of MansfIeld 1200 East Broad Street MansfIeld, TX 76063 817-276-4200 Ms. Mary Whitehead - EMS Ms. Rita Hudson - Utility EMS Portfolio - Client Since 8-2002 Utility Portfolio Client Since 7-2006 Mary.whitehead@ci.mansfIeld.tx.us rita.hudson@ci.mansfield.tx.us Additional Municipality Local Clients: City of North Richland Hills City of Keller City of AzIe City of Corsicana City of Haltom City City of Kilgore City of Bonham City of Stephenville City of Granbury Orange County Ambulance 3. CSII has gained a minimum of90 new clients in the past 12 months. These consist of utility, medical and miscellaneous portfolios. CSII has only lost a few client's in the past 12 months due to a company dissolving, management turnover, bid award, and an entity closing all their accounts to sell toa factoring company (selling accounts receivables). Page 4 of 15 Credit Systems International, Inc. - Best Value Bid Number 3624 Citv of Denton Collection Services 4. Skip Trace Department CSll's internal statistics indicate that when we are able to locate and speak to debtors, our ability to collect the accounts greatly improves. Therefore, we focus on locating patients and making high volume calls. Debtor location is a critical part of the collection process. For this reason, csn has effective processes in place for skip tracing high volume accounts. In addition, CSll has special procedures set up specifically for City of Denton accounts to make more than one attempt at locating skipped patients during the history that the account is with CSII. . Accounts without telephone numbers and/or with return mail are forwarded to the skip tracing department for location. . Collection staff forwards all accounts which require location research to the skip trace department. . Accounts which the predictive dialing system kicks out due to operator iritercepts are moved to the skip tracing department for research. . Accounts with no contact yet the telephone number appears to be correct, are routinely downloaded to a National Skip trace firm to verifY that the address belongs to the telephone number iri which CSII has listed. . csn utilizes a number of skip tracirig resources to locate debtors, iricluding (but not limited to) the following: multiple national database resources; a national CD Rom database for telephone numbers, name searches, near-bys; property tax roles; public records; Internet; drivers license searches; directory assistance; credit bureau reports; a manual search of CSII's database for possible matches missed during the linking process as well as a National Skip Trace firm where csn downloads 50,000 names per week for possible updates. Page 5 of 15 Credit Systems International, Ine. - Best Value Bid Number 3624 Citvof Denton Collection Services 5.&6. Please see the following for CSll's response to questions 5 and 6: INCOMING NEW BUSINESS- DATA FLOW -- -- us__~ CIotoI_INT_~~ Of__"_.lIlo.._.T_~ _~__Io_"'''' ,-- ~_"'_arCD__ _____f'C (lMon>oIPCIr.....~..__l ,-- ecp....._glfMlD --- ,-- FIololll-ldltody'" --- -.....----- --- --"'~-'" CSlrs~_~_n.o_ """'1ID1'-""""_~"""""'R..~_ 12""""....~~ OUTGOING DATA FLOW All ontgoing data is manually loaded to OUT stand-alone Internet P.C. then sent to it's destination. F'.-n_..-"....._"""'-- _k_ --~ ..........r_Mklcr___ooIgInIII _"''''''--~br__'''''''''''''' --~ "'-------- _~ID......"'_ ,-- OoI.-DdgNoI___ ___PC{FTP) Page 6 of 15 ,-- --- ,-- CGpIoo."-gillM.. --- Credit Systems International, Inc. - Best Value Bid Number 3624 Citv of Denton Collection Services Methods to be Used: CSll's collection approach is professional and persistent while remaining sensitive to our client's public image. Below is the outline of CSll's account due diligence for the entire collection process: Transfer and Loadinl! of Assil!Bed Accounts . Accounts will be accepted by CSll via Electronic Transfer from City of Denton Departments. This process is already established and will not reflect any down time for City Departments. . Accounts are loaded and processed into CSll's system within 24 hours from placement date, excluding weekends and Holidays. . Placements are balanced to City of Denton's control numbers (number of accounts placed and the dollar amount) prior to releasing accounts. If the control numbers do not balance, placements are held until confirmed with the business office contact. . An acknowledgment of the placement will be provided to City of Denton Departments within 72 hours of receipt of the placement except weekends and Holidays. Confirmation of totals can be forwarded via Email. A complete list of each account placed and total monies placed is available upon request. . Debtors with multiple accounts are linked during processing. CSll uses a scoring system, similar to credit bureaus, to link debtors with more than one account. This is an invaluable skip-tracing tool for all the Cities Departments! With more than 4.5 million active debtors in CSll's database, clients benefit by sharing pertinent debtor information. . Prior to accounts being released and validation notices sent, addresses are CASS certified for spelling errors, incomplete addresses, inaccuracies, and incorrect addresses. Non deliverable accounts are noted in the system. This is critical for Federal and State Laws with regard to validation notices and skip tracing accounts eliminating manual changes to inaccurate addresses. . Prior to accounts being released and downloaded into the predictive dialing system, all resident area codes are cleansed with CSll's custom area code program. The purpose of this program is to update and correct area codes that have been changed by the telephone companies. This process is very important to the efficiency of the predictive dialing system and skip tracers. . Accounts without resident telephone numbers with return mail are forwarded to the skip- tracing department for research. Page 7 of 15 Credit Systems International, Inc. - Best Value Bid Number 3624 Citv of Denton Collection Services . Accounts are released, validation notices sent, and accounts are downloaded to the dialing system for telephone calls within 24 hours from the received date, except weekends and . Holidays. CSIl forwards a minimum of 2 collection notices and attempts to contact the guarantor of the account via telephone a minimum of 3 times. CSIl guarantees a minimum of 4 telephone contact attempts on each account with current telephone information within the first 30 days of the collection process. Letters (please see "Sample/Additional Documents" section for sample letters) . Validation notices are mailed after the accounts are completely processed, usually within 24 to 48 hours after the date the placement is received. . Additional correspondence is sent approximately 20 days after the initial letter is mailed. . A variety of supplemental letters are available and utilized at the discretion of the collection staff and all letters include a remittance slip and return bar coded envelope. . Accounts without telephone numbers, with return mail, are forwarded to the skip-tracing department for location. Collection Specialists do not skip trace accounts. . Collection staff forwards all accounts which require location research the Skip Trace department. . Telephone numbers that the predictive dialing system rejects due to operator intercepts are moved to the skip-tracing department for research. Skin Trace Denartment CSIl utilizes a number of skip tracing resources to locate debtors, including the following: . Manual search of CSIl's database for possible matches missed during the linking process. . NSTN (a National Skip Trace Firm CSIl utilizes for searches) . National CD-Rom database for telephone numbers, name searches, and near-bys. . Property tax roles. . Public records. . Internet. . Drivers license searches. . Directory assistance. . Credit Bureau reports. . National criss-cross databases. Page 8 of 15 Credit Systems International, Inc. - Best Value Bid Number 3624 Citv of Denton Collection Services CoUection CalIs . The predictive dialing system, CT CENTER, starts the calling process within 24 to 48 hours from the time the accounts are received, excluding weekends and Holidays. CSll currently downloads between 80,000 and 90,000 accounts daily for telephone calls. . CT CENTER '8 voice module leaves messages on answering machines, during prime and non prime time. All messages are left in a human voice. . CT CENTER's interactive collection module, utilized for automated collections and is utilized primarily for small balance accounts. . All collection calls are digitally recorded for quality control, training, customer service, complaints, and liability purposes. The recording system captures about 98 percent of all telephone calls. . Collection calls continue until the accounts are collected or deemed uncollectible. CSll uses our LC.S. system to track account due diligence and ensure all accounts are worked appropriately. The Le.S. is prograrmned specifically for each client's requirements. CSll does not simply stop the collection process at a specific time. The accounts are pursued for the full seven years the debt will remain on the customer/citizen's credit report. . CSll continues contact attempts until thirty attempts or three contacts have been met on accounts with good telephone numbers within one quarter. . If conclusion of the account is not obtained after the above efforts, the accounts are placed in status codes designed to be a cooling off period before attempting to start the process of trying to contact the guarantor again. Security and Privacy of Personal Debtor Information: CSll places top priority on maintaining all personal and confidential information belonging to debtor's highly confidential and secure. The following procedures are in place to assist CSll in protecting all confidential account information. . CSll conducts criminal and employment background checks on aU employees prior to new hire and throughout employment. . AB part of CSll's training, employees receive in-depth training on HIP AA, FDCP A, and the FCRA regulations and restrictions, as well as, the private information which Page 9 of 15 Credit Systems International, Inc. - Best Value Bid Number 3624 Citv of Denton Collection Services may be available while collecting an account. They are fully aware that they may not discuss accounts with third parties that are not listed as a guarantor or the patient on the account. . All employees must sign a Certificate of Training and Confidentiality Agreement prior to commencing duties. . Security cameras are stationed on the collection floor, at exits, and around the perimeter of the building. . Telephone calls are monitored and recorded. . All building entrances are secured and require codes for admittance. . Authorized personnel must admit vendors and clients from the main lobby to a secured area for sign in and an escort. . A private payment window is available for debtors or individuals. They are not allowed in the secure areas. The window is accessible from the main lobby and located in an enclosure with a door that can be closed by the individual for privacy. . All electronic data on debtors is transmitted and received in a secure manner, such as FTP, encryption, or any other method required by clients. . CSII's Internet connections are on stand alone PCs and not connected to systems which are linked to our main frame. No matter how good security software may be, it is simply not worth the risk to our clients and CSII to chance unauthorized access to our system. . CSII does not notifY or communicate with debtors via Email. The privacy issues are simply too great since the laws do not cover Email. . CSII's employees with Internet access are limited to authorized personneL . All debtors making payments through auto pay are sent to staff that are authorized to take the information. Collectors are not permitted to take check or credit card information. Not only is it a conflict of interest, but it is private information they do not need to know While collecting a debt. The calls authorizing payment on the phone are recorded and stored for security purposes. Partial Pavments and Pavment-ulans CSII makes every effort to initially collect the balance in full. When necessary to set up payment arrangements, collectors follow these minimum requirements: . Agent first attempts to establish arrangements with a payout of 90 days or less. . Payment arrangements for more than 90 days must be approved at a supervisory level. Page 16 of 15 Credit Systems International, Inc. - Best Value Bid Number 3624 Citv of Denton Collection Services - - -------$' . ------ -:-...-r:..-.""'.-....~......... " :""11. --. =-l' ..'" =- ~,~ -- ."1 ~ -----::- -i.. _ ~J~ ~. 7 '/J' . Associates try to obtain assurance that payments are made in a timely manner, such as phone pays (automatic draft from debtors checking accounts). . Phone pays are handled in the same manner as a post-dated check. . csn sends reminder notices - on all accounts with established payment arrangements - ten days prior to the payment due date and a late payment notice two days after the due date for customer service purposes and to reduce complaints. . All partial payments are posted to accounts. . Payments which debtors offer as settlements are not posted_ City of Denton is notified of all offers for a decision, unless City of Denton advises CSII that settlements are not accepted. Unacceptable partial payments are returned to the debtor. . csn does not solicit settlement offers on behalf of our clients. . Minimum payment arrangement accepted is a $25.00 monthly installment. Referral to Credit Renortine: Bureau . CSII reports to the three major credit bureaus, Transunion, Experian, and CSC. . csn's policy is to refer all accounts not in a paying, disputed, hold, or bankruptcy status after csn has worked the account a minimum of 30-45 days. This provides debtors sufficient opportunity to resolve accounts and greatly reduces complaints. . On the first working day of each month, CSII produces files for each bureau containing accounts, payments, returns, and updates in the format required by each reporting agency. Data provided to the credit bureaus include names, addresses, social security numbers, status, balances due, dates of last payment, dates of last charge, dates of delinquency, etc. To ensure the bureaus receipt of the files and that the files are secure, CSII sends each file encrypted via SFTP transmission to the respective bureau. . csn has an internal department which handles all credit bureau issues and inquiries to ensure compliance. Credit bureau reporting is still one of the most effective tools used by an agency, but requires high maintenance and constant training to certifY compliance with current and new laws. . The credit bureaus are strictly governed by the Fair Credit Reporting Act to enforce accuracy. The credit bureaus require creditors to respond on disputed items within ten days. . csn utilizes E-Oscar to communicate dispute responses to credit report inquiries and is able to send manual updates for reporting immediate changes pending the monthly data transmit. Page 11 of 15 Credit Systems International, Inc. - Best Value Bid Number 3624 Citv of Denton Collection Services Dispute I Credit Bureau Resolution . CSll's policy, with regard to disputed accounts, is to notify the credit bureaus of pending disputes and make every effort to resolve accounts within 30 days. Credit bureaus are notified of the resolution. If the debtor continues to dispute the account, the credit bureau is notified to code the account as disputed. If CSll is unable to provide proof of the debt, the disputed item is deleted from the credit bureaus as required by the FCRA. . All disputes and complaints are placed in a hold status by the supervisor until it is resolved. . Disputed accounts previously resolved by City of Denton, whether credits were issued or charges were determined to be correct, are provided with itemized statements and informed of the findings. Debtors that continue to dispute charges--as a final resort are informed of their right to appeal the decision to City of Denton. . CSll makes every effort to resolve all disputed accounts internally, prior to seeking our client's assistance. CSll's experience and understanding of the medical industry greatly reduces the need to obtain our client's assistance in the resolution of most disputed accounts. . All accounts with requests for itemized statements are placed on hold. The request is uploaded and an electronic statement is generated out of a stand alone data base which holds all diagnosis and procedure coded confidential. The itemized statement is mailed to the debtor and the account is then QUED approximately ten days for a follow-up calL . CSll's Legal Department and managers handle attorneys representing debtors. . Debtor complaint calls are referred to CSll's Compliance Coordinator for research, investigation, and resolution. EMS Accounts in which CSll obtains Insurance Information . All accounts with a balance of $1 00.00 or more, in which the patient I guarantor provides insurance information to CSll's Insurance Department, CSll will obtain all the insurance information and validate the coverage. . After obtaining and validating the insurance, CSll will forward all confirmed and valid information to City of Denton EMS to drop the claim. . CSll will follow up with the respective insurance companies on payment for claim and pursue the responsible party once the debt is deemed to be patient responsibility. Page 12 of 15 Credit Systems International, Inc. - Best Value Bid Number 3624 Citv of Denton Collection Services S{lanish-SDeakin~ Customers . Approximately 35 percent of CSll's collection staff is bilingual- fluent in speaking, writing, and reading. . All notices contain a phrase, in Spanish, informing debtors of CSll's bilingual capabilities. . All notices state the validation clause, as required by Federal and State Law, in both English and Spanish ( Please see "Sample/Additional Documents" Section for notice). Hearine-imDaired Customers . CSll obtains a signed statement from the debtor with regard to the disability, then a supervisor communicates with the customer through Texas Relay. Combinine of MultiDle Accounts . CSll links debtors with multiple accounts during the initial processing of placements by a scoring system similar to the credit bureaus to match accounts. . CSll uses another process to combine multiple files with matching account numbers. In-house programmers customize these programs per requirements. ReDorts / Invoices / Statements (please see "Sample Documents" section for all samples) . Reports and invoices will be provided and sorted as requested by the City of Denton. Samples ofCSll's standard reports available are included following CSll's response to question 7. The City of Denton Utility Department currently receives the History Analysis Report electronically on a monthly basis. CSll can forward any standard report at the request of the City or on a monthly basis. . Funds can be NET or GROSS remittance with monthly statements. . CSll is capable of providing reports electronically via encrypted file tunneled through the Internet, diskette, SFTP, FTP, or via U.S. Postal Service. Page 13 of 15 Credit Systems International, Inc. - Best Value Bid Number 3624 Citv of Denton Collection Services 7. CSll's Sample Documents (please see sample documents Section for the following reports). -THIS INFORMATION IS CONSIDERED CONFIDENTIAL- a. Monthly Client Statement / Invoice CSll remits statements to our clients on a monthly basis. All client activity registers are mailed from CSll's office no later than the lotb of each month for the previous months collection activity. Portfolio can be established with a NET or GROSS remittance. The sample inclosed is a NET remittance sample. b.& c. Collection Notices All CSll's collection notices are customized for each client's portfolio. The following notices are examples of initial letters utilized on current utility client's portfolios. All initial notices have the required disclosure statement printed on the reverse side in English and in Spanish while offering the customer an option to pay their account with a credit card by completing the form and returning to CSII. CSII also offers a toll free, 24 hour automated payment line which is listed on notices as welL B. Notice to Individual C. Notice to an entity or a company d. Telephone Scripts e. Progress/Status Reports available to City of Denton Departments Acconnt Status Report Generated upon request - Details each patient in the portfolio and information pertaining to the account such as payments to date, balance, and CSII's account status. History Analysis Report Generated monthly with month end processing - Details the recovery percentage on the portfolio as well as tracks collections back to the month the accounts were placed with CSII. Page 14 of 15 Credit Systems International, Inc. - Best Value Bid Number 3624 Citv of Denton Collection Services Data Integrity Report This report is printed upon demand and offers pertinent information for analyzing a collection portfolio. It provides many categories detailing the integrity of the accounts in a collection portfolio. 8. CSII's Completed Collection Services Questionnaire (Appendix B) Page 15 of 15 CREDIT SYSTEMS INTERNATIONAL, INe. EXCEPTIONS Best Value Bid Agreement for Collection Services Article II - Scope of Services c. csn takes exception to COLLECTOR retuining the accounts after collection efforts for a period of at least 365 days from receipt of the account. csn proposes that COLLECTOR retain all the collection accounts ( payers and non-payers) for the life of the account or contract term. This will allow COLLECTOR to effectively utilize credit bureau reporting which is explained in exception below under Article XIX - E. However, csn can provide the City a listing of accounts that are not in a paying status after 365 days in the collection process. This will allow the City to note the accounts while not affecting the long term recovery of the portfolio. F. CSII takes exception to returning the accounts not in a paying status after 365 days. csn proposes to continue to work all accounts for the full 7 years and at that time return accounts which are not in a paying status to the city. Detailed information and further explanation is given - please see exception in Article XIX - E. . G. CSII's standard policy for account withdrawal without any fees charged is when an account has been placed with agency and client will not receive any payments from the account. This is an account which is truly turned in error. A transferred account is not considered a cancel account. csn will cancel these type accounts without fees, at the client's request. csn does not provide a grace period for accounts. When an account is placed with csn we immediately begin the collection process. Therefore, there will not be a rate quoted for accounts collected by the City and turned over to the vendor and vendor had not pursued collection efforts yet. Article XIX - Miscellaneous E. CSII takes exception to reporting the accounts immediately to the credit bureau. csn reports to the top three national bureaus: EXPERIAN, EQUIFAX, and TRANS UNION. CSII's standard policy in regards to the reporting of accounts to credit bureaus has been placed in effect to ensure total compliance with the Fair Debt Collection Practices Act ( F.D.C.P.A. ) CSII is strict in maintaining that all office policies and procedures consistently remain above the standard which is required by State and Federal laws. If an account is placed on an individual's credit record irnniediately, the agency is not allowing the debtor an opportunity to dispute the validity of the debt. Taking away the debtor's rights in this regard could become a legal issue. Please refer to the following copied F.D.C.P.A. for exact clarification of this matter. Section 809 on page 5 is explaining the "Validation of Debts." csn will report the accounts in a non-paying status to the three above-mentioned bureaus after the account has been with our agency for 30-45 days. This allows debtors the required 30 days to dispute the debt and time to request and receive an itemized statement (which csn will mail at the debtors request). This is ample time for the customer/patient to correspond any disputes. Due to holding the accounts off of the bureaus for the initial 30 days of the collection process( to ensure compliance with all laws), csn proposes that the accounts not be returned to the City of Denton at 365 days. csn proposes to maintain the files for the life of the account. Returning the accounts to the City will result in the agency removing the accounts from the debtors credit report at the time of return. The City of Denton is not going to receive the highest net back recovery long term on its collection accounts if the accounts are not able to remain on the debtors credit file for the allowed period of seven years from date of service or date of service termination. The entity which reports an account to the bureau is responsible for maintaining the record and it's accuracy. The agency reporting must update any and all payments made on the account in a timely manner. Removing the account from the Agency after only 365 days will not allow the account to remain on the debtors credit file for longer than the 365 days. Therefore, the long term effect of the credit bureau will not be effective on the portfolio and will ultimately lower the recovery percentage. csn recommends that the City revisit the option of allowing the agency to retain the accounts for the seven years to receive the highest return possible on the overall portfolio long term. However, csn's fee structure proposed is based upon the portfolios continuing as they have operated for the past 4 years and not returning the accounts to the City after 365 days in the collection process. Again, csn will accommodate any annual reporting for the portfolio upon the City's request and specifications. CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES AP PEN DIX-~B~---- PAGE 25 OF BID # 3624 CIlY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES COLLECTION SERVICES QUESTIONNAIRE for UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES Collection Process 1. What steps will be taken by you to collect? · 'PI#4.St. r~t'" 40 .. tSJI's ~~Sp?I\S~' ~l0o'",- ~ tt, 1>~ ~. I~ V' 'Re~t'Of'lS~ io ~UtS tn;"s 5 . . . . How do you collect? (Include operating procedures and processes) 2. Y.. Do you perform skip tracing? Yes No 3. Can collection notices be prepared in Spanish at no additional cost? ..A _ I _ _ a./I C!.5lt c.u.rret\.+fy Ql.CO~T\\ .e. Yes No '/.. CSplU\\~"-s~'~4~b+Or'$. r"Oe.tU..e.J...S,e... .'JosMI \~ ~"'1-s" sediD~-\Or 1\O-nU!$. Do you have employees who can spea1t and .fnte in Spanish? Yes y... No 4. PAGE 26 OF BID # 3624 CITY OF DENTON BEST VALUE BID FOR UTILITIES, AMBULANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES 5. Experience and Reputation 6. What amount do you expect to collect? $ [0, DW - J.2/ ~ iJU MD~.:fl,.!~.. ~/L.Y f/()~I- t'S7fIJl4.Tt!.- . What is your recovery rate? J,1. - J!1- % How many professionally trained collectors do you have on your stafi? 45 7. 8. How many years has your firm been in the collectio~ busines~? ~years ~ months 9. -. Are yOu currently collecting for a utility company? Yes 'I.. No If yes, how long have you collected for a utility company? ~ears ~months 10. Are you currently collecting for ambulance or medical services? Yes Y- No If yes, how long have you collected for an ambulance or medical services? J 1D . years --1- months II. Are you currently collecting for code enforcement liens? Yes '/.. No If yes, how long have you collected for code enforcement liens? years ~ months. PAGE 27 OF Rln -It :lR?.! , '. .\ CITY OF DENTON BEST VALUE BID FOR UTlLI1lES, AMBUlANCE, CODE ENFORCEMENT LIENS AND MISCELLANEOUS RECEIVABLES COLLECTION SERVICES 12. 13. Upon request, will you provide an independently audited financial statement? t-' c.U.J! e.sn: wil\ pl'ovlDt.t.. A. SASYlO t-II'\AA Yes --'!- No 1\"-por+- lAf>on f'I.U'S+. Have you receiveq any complaints concerning non-compliance to the applicable federal, state, and local statutes regarding Fair Debt Collection practices? . . _ . A ,. A . ~ ~ no-4- ('ec.eiv~ Okl V V'l./I~ Yes No X CoNlplo..in+s. COI\(:erll\i~ nta:?CD"'PItAA.-U-. If yes, please provide an explanation. Compatibility 14. Do you have the ability to incorporate a remittance slip in your written correspondences? Yes 'I-.. No 15. Can you combine multiple accounts into a single collection effort? (i.e. Collect $500 for ambulance service plus two utility account at $200 each from the same individual or entity.) i No Yes 16. What is the minimum combined amount for which you will perform collections? $ ..15.00 17. Can you accept the Agreement as it is written? Yes No X. !fno, please indicate the areas of proposed changes. 'PI~ Su.~ ~Vc~r-hbl'S n S~~.. 18. Is your office located within the DallasIFort WorthlDenton Metroplex? Yes X No PAGE 28 OF BID # 3624