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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. o 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 o o 10. ° 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