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