HomeMy WebLinkAbout3369RESOLUTION NO. 3 3 6 9
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, KING
COUNTY, WASHINGTON, AUTHORIZING THE EXECUTION OF AN
AGREEMENT BETVVEEN THE CITY OF AUBURN AND ALLIED CREDIT
COMPANIES AND ALLIANCEONE, INC., TO PROVIDE COLLECTION
SERVICES FOR THE AUBURN MUNICIPAL COURT.
WHEREAS, the Auburn Municipal Court has a need to collect delinquent
accounts; and
WHEREAS, Allied Credit Companies and AllianceOne, Inc., will provide
commercially reasonable efforts to collect delinquent accounts for the City of
Auburn Municipal Court; and
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, IN A REGULAR MEETING DULY ASSEMBLED, HEREWITH
RESOLVE THAT:
Section 1. The Mayor and City Clerk of the City of Auburn,
Washington, are hereby authorized to execute an Agreement for collection
services between the City of Auburn and Allied Credit Companies and
AllianceOne, Inc. A copy of the Agreement is attached hereto, designated as
Exhibit "A", and incorporated by reference in this Resolution.
Resolution 3369
June 25, 2001
Page 1
Section 2. The Mayor is hereby authorized to implement such
administrative procedures as may be necessary to carry out the directives of
this legislation.
ADOPTED this
day of ~,~/~,~ ,
OF AUBURN
CHARLES A. BOOTH
Mayor
ATTEST:
Dahielle El Daskam
City Clerk
APPROVED AS TO FORM:
Michael J. Reynolds
City Attorney
Resolution 3189
February 23, 2000
Page 2
ALLIED CREDIT COMPANIES
An AllianceOne Company
COLLECTION SERVICES AGREEMENT
THIS AGREEMENT is entered into between the City of Auburn, hereinafter called
"CITY," and ALLIED CREDIT COMPANIES and AllianceOne, Inc., hereinafter jointly
called "ACC" to provide collection services for the Auburn Municipal Court. This
agreement shall be considered as an addendum to that certain King County Contract
No. M10166M, but shall also be effective on its own terms should said King County
Contract expire or otherwise be inapplicable in whole or part.
For and in consideration of the compensation hereinafter described and the covenants
and conditions herein contained, the parties agree as follows:
Assignment of Accounts. The AUBURN MUNICIPAL COURT, hereinafter called
"COURT" will assign to ACC for collection such delinquent accounts, hereinafter
called "accounts," as COURT deems appropriate.
Collection Efforts. ACC will use commercially reasonable efforts to collect said
accounts, and will confine its efforts to the highest standard of ethical practice.
The COURT and ACC recognize that the appropriate level of activity may vary
according to the type of account, the account balance and the information
available.
Debts Just and Owinq. COURT certifies that every account referred will contain
accurate information and will be just and owing, and will not be subject to any
valid defense, set-off or counterclaim, including that such account or the obligor
of such account will not be subject to any bankruptcy proceeding, stay or
discharge as of the time of referral.
Compliance with Law. ACC's collection activities shall comply with federal, state
and local laws, including the Fair Debt Collection Practices Act (FDCPA), where
applicable.
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Legal Action. No legal action will be commenced on any account without written
permission, first obtained, from COURT. Legal action commenced under this
agreement shall be in the name of ACC and not COURT. ACC will promptly
advise COURT if any legal action is contested. COURT will provide evidence as
requested by ACC to support approved legal action, including providing a witness
or witnesses for live testimony if requested. Unless otherwise agreed, legal costs
and fees will be paid by ACC and not COURT, and will be recoverable from the
DEBTOR where allowed by applicable law, out of first monies recovered.
Collection Services Agreement
Res 3369
Exhibit "A"
Page 1
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10.
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Indemnification. Each party will indemnify and hold harmless the other party
from and against any and all claims and causes of action, be they meritorious or
otherwise, asserted against the other party except for claims and causes of
action resulting from errors or omissions of the other party, and each will
reimburse the other for costs and legal expense incurred in connection therewith.
Compensation. Compensation to ACC will be a percentage of the original
account balance, which will be assessed as a COURT cost to the account at the
time of assignment, pursuant to RCW 3.02.045, resulting in the return to the
COURT of 100% of the original assigned amounts collected, as follows:
Upon placement of an account by COURT with ACC, a COURT cost will
be assessed as a collection fee to the account in the amount of 24% of the
balance of the account for primary referrals, with ACC retaining a
commission fee of 19.35% of the funds collected. For secondary referrals
(accounts previously assigned to another agency), a 29% COURT cost
will be added as a collection fee, with ACC retaining a commission fee of
22.48% of the funds collected. These computations for primary and
secondary referrals allow for 100% payback to the COURT of its original
account balance.
ACC will charge interest, at the rate of 12% per annum, on accounts
assigned for collection. All interest collected will be retained by the
COURT.
The COURT cost will be computed and added to the principal balance by
ACC's computer system at the time the account is referred to ACC at the
above listed rates.
d. The COURT reserves the right to recall an account from collection at any
time without penalty to the COURT.
Remittance. Payments on accounts made to ACC will be remitted by ACC to
COURT, less ACC's portion, on a weekly basis. If payment is made by a
defendant/debtor without specific direction as to the account that is to be paid,
ACC will remit those funds to the oldest account first.
Payments to COURT. A payment made on behalf of a debtor directly to COURT
on an assigned account will be promptly reported to ACC by COURT.
Negotiable Instruments. COURT authorizes ACC to endorse checks or other
instruments payable to COURT and deposit same into a trust account separately
maintained by ACC. COURT further authorizes ACC to send notices of dishonor
or other notices on COURT's behalf for dishonored instruments, to assess and
collect any permissible dishonored instrument fees, and to retain any recovered
Collection Services Agreement
Res 3369
Exhibit "A"
Page 2
fees per compensation section of this agreement, whether such instruments were
issued before or after assignment of the account.
11.
Account Audits. COURT may audit ACC's records pertaining to accounts
assigned for collection upon reasonable notice.
12.
Term and Termination. This agreement will remain in effect until terminated by
either party. Any assignments by COURT and work performed by ACC prior to
the signing of this Agreement is specifically approved by the parties and ratified
by this Agreement. This Agreement may be terminated in whole or in part from
time to time when deemed by the COURT or ACC to be in its best interest.
Termination of work hereunder shall be effected by delivering to a party a written
Notice of Termination thirty (30) days prior to the specified effective date,
detailing the extent to which Performance of work under this Agreement is
terminated. COURT will consult with ACC prior to recalling any assigned
account, unless otherwise agreed.
13.
Non-discrimination. ACC, in its collection efforts, will not discriminate against any
DEBTOR on the basis of race, color, creed, religion, sex or national origin. ACC
will comply with the requirements of the Americans with Disabilities Act of 1992,
and all regulations interpreting or enforcing said Act.
14.
Beneficiaries to Contact. This Agreement is entered into for the benefit of
COURT and ACC. No third-party beneficiaries are intended to be created or are
created hereunder.
15.
Entire Aqreement. This Agreement, along with King County Contract No.
M10166M, constitutes the entire understanding between ACC and COURT
regarding collection services provided to COURT by ACC, and may not be
modified except by written agreement signed by both parties.
IN WITNESS WHEREOF, the parties have executed this contract at
., on the date last written below.
Allied Credit Companies
Allianc~e, Inc.~,~_~
/ Susi~ 3er~
City of Auburn
Charles A. Booth
TITLE: Mayor
Collection Services Agreement
Res 3369
Exhibit "A"
Page 3
ADDRESS: ~ Kimball Drive, Suite 200
PO Box 2449
DATE:
Gig Harbor, WA 98335
ADDRESS:
3 First Street NW
Auburn, WA 98001
DATE:
/~ ,..¢., ¢o'o/
VE.~~ORM:
Michael O. I~eynildl
City Attorney
Collection Services Agreement
Res 3369
Exhibit "A"
Page 4