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Home My WebLink About4069 RESOLUTION NO.4 0 6 9 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, KING COUNTY, WASHINGTON, AUTHORIZING THE EXECUTION OF AN AGREEMENT BETWEEN THE CITY OF AUBURN AND ALLlANCEONE RECEIVABLES MANAGEMENT, INC., AN ALLlANCEONE COMPANY, TO PROVIDE COLLECTION SERVICES FOR THE AUBURN MUNICIPAL COURT WHEREAS, the Auburn Municipal Court has a continuing need to collect delinquent accounts; and WHEREAS, AllianceOne Receivables Management, Inc., an AllianceOne company, currently provides the Auburn Municipal Court commercially reasonable efforts to collect delinquent accounts for the City of Auburn Municipal Court; and WHEREAS, the City of Auburn and AllianceOne Receivables Management, Inc., wish to continue this business relationship, and WHEREAS, AllianceOne Receivables Management, Inc., has proposed amended terms of Compensation and Method of Payment in which the City continues to collect the fine in full, while defendants are charged less for collection fees in the hope that the defendants will pay fine more quickly. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, IN A REGULAR MEETING DULY ASSEMBLED, HEREWITH RESOLVE THAT: Resolution No. 4069 July 27, 2006 Page 1 of 3 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. Section 2. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Section 3. This Resolution shall be in full force and effect upon passage and signatures hereon, and as provided herein. >..r DATED and signed this ~ J .--- ,2006. Resolution No. 4069 July 27,2006 Page 2 of 3 ATTEST: \ ~ ,? '~~~ -eaniet~ . a~ am Cathy Richardson Deputy City Clerk Resolution No. 4069 July 27, 2006 Page 3 of 3 . ne Receivables Management Specialists COLLECTION SERVICES AGREEMENT THIS AGREEMENT effective the _1st_ day of _September_, 2006 ("Effective Date"), is entered into between City of Auburn, hereinafter called "CITY," and AllianceOne Receivables Management, Inc., an AllianceOne company, hereinafter called "AOI." For and in consideration of the compensation hereinafter described and the covenants and conditions herein contained, the parties agree as follows: 1. Assianment of Accounts. The AUBURN MUNICIPAL COURT, hereinafter called "COURT" will assign to AOI for collection such delinquent accounts, hereinafter called "accounts," as COURT deems appropriate. 2. Collection Efforts. AOI will use commercially reasonable efforts to collect said accounts, and will confine its efforts to the highest standard of ethical practice. The COURT and AOI recognize that the appropriate level of activity may vary according to the type of account, the account balance and the information available. 3. Debts Just and Owina. 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. 4. Compliance with Law. AOl's collection activities shall comply with federal, state and local laws, including the Fair Debt Collection Practices Act (FDCPA), where applicable. 5. Leaal 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 AOI and not COURT. AOI will promptly advise COURT if any legal action is contested. COURT will provide evidence as requested by AOI 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 AOI and not COURT, and will be recoverable from the DEBTOR where allowed by applicable law, out of first monies recovered. 6. Insurance. AOI shall obtain and keep in force continually during the term of the contract Commercial General Liability insurance coverage in the amount of at least One Million Dollars ($1,000,000.00). Per this written agreement, the CITY shall be included as an Additional Insured under AOI's Commercial General Liability insurance policy, with respect to the work performed for the City. AOI's insurance coverage shall be primary insurance as respect the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of AOl's insurance and shall not contribute with it. AOI will supply to CITY a copy of AOl's collection agency license within 30 days of the execution of the Agreement. 7. Indemnification. AOI agrees and covenants to indemnify, defend and save harmless the CITY and its officers, agents, volunteers and employees against and from any loss, damage, costs including attorney fees, charges, expense, liability, claims, demands, or judgments, of whatsoever kind of nature, whether to persons or property arising wholly or partially out of an act, action, neglect, omission, or in default on the part of AOI, its subcontractors and/or employees, except for injuries and damages caused by the negligence of the City. 8. Assianments. Neither party to this Agreement shall assign this Agreement, nor any interest, right or responsibility arising herein, without the written consent of the other party; provided that AOI C:\Documents and Settings\msnow\Local Settings\Temporary Internet Files\Content.l E5\S9452J05\CollectionsContract0706(FinaIRev)Au burn.doc . COLLECTION SERVICES AGREEMENT Page 2 on can forward individual accounts to out-of-state collection agencies if deemed prudent by AOI to effect collection. 9. Severability. In the event any term or condition of this Agreement or application thereof to any person or circumstance is held invalid, such invalidity shall not affect other terms, conditions, or applications of this Agreement which can be given effect without the invalid term, condition, or application. To this end the terms and conditions of this Agreement are declared severable. 10. Compensation and Method of Payment. For services provided pursuant to this Agreement AOI shall be entitled to compensation as follows: A. Pre-Collection Demand Letter: No Charge. B. Collection Fees: COURT will assess a Collection Fee pursuant to RCW 3.02.045. Unless otherwise instructed by COURT, for accounts assigned to collection by COURT and collected by AOI from the debtor, AOI shall add this Collection Fee to the principal amount of the debt to each account by category of account as set forth below: A 19% Add-on fee (0.1596 retained) for new accounts assigned to AOI on and after the effective date of this Agreement. Previously-assigned accounts will remain at their existing rates. C. Partial Payments: Partial payments made on assigned accounts shall be remitted to COURT based upon the same pro rata formula applied to accounts that are paid in full. By way of illustration, and assuming a 19% add-on fee: $100 fine x 19% = $119 new balance to be collected; a $50 payment received would be remitted as follows: $42.02 to COURT; $7.98 to AOI ($7.98 = .1596 of $50). D. Interest on Accounts: Upon assignment to collections and only while in active collection status, interest shall accrue on unpaid civil judgments, penalties, fines, bail forfeitures, assessments, fees and costs at the rate of twelve percent per annum. The interest shall be added to the account by AOI, collected by AOI, and remitted in full by AOI to COURT. E. Monthly Payment Collection Services and Fees: AOI will offer the Signal Credit Management Services Program for COURT clients, but COURT is under no obligation to use this program. COURT will assess and AOI may add fees for this service ("Service Fees") as follows: 1. $15.00 Account Set-Up Fee: a one-time charge per client per court of limited jurisdiction. 2. $ 4.75 Monthly Fee: one charge per account per client with one case. 3. $ 8.25 Monthly Fee: one charge per account per client with multiple cases. 4. $ 7.75 Monthly Fee: one charge per account per client with one case in "past due status." 5. $11.25 Monthly Fee: one chargef per account per client with multiple cases in "past due status." Service Fees shall not be added to the principal amount of the debt for purposes of calculating AOI'S Collection Fee authorized in paragraph B above. F. Remittance Method: For payments to accounts collected by AOI, AOI shall deduct the Collection Fee prior to remitting the principal amount to COURT, as presently authorized by state law and an enabling Court Order. G. Change in Law. Should there be changes in laws or Court policy which prescribe/allow a different method for recovering Collection Fees, AOI shall modify its methods accordingly, upon instruction from COURT. 11. Payments to COURT. A payment made on behalf of a debtor directly to COURT on an assigned account will be promptly reported to AOI by COURT. COLLECTION SERVICES AGREEMENT Page 3 of3 12. Neaotiable Instruments. COURT authorizes AOI to endorse checks or other instruments payable to COURT and deposit same into a trust account separately maintained by AOI. COURT further authorizes AOI 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 fees per compensation section of this agreement, whether such instruments were issued before or after assignment of the account. 13. Account Audits. COURT may audit AOI's records pertaining to accounts assigned for collection upon reasonable notice. 14. Term and Termination. This agreement will remain in effect until terminated by either party. Any assignments by COURT and work performed by AOI 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 AOI to be in its best interest. Termination of work hereunder shall be effected by delivering to a party a 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. 15. Non-discrimination. AOI, in its collection efforts, will not discriminate against any DEBTOR on the basis of race, color, creed, religion, sex or national origin. AOI will comply with the requirements of the Americans with Disabilities Act of 1992, and all regulations interpreting or enforcing said Act, and the Washington Law Against Discrimination. 16. Beneficiaries to Contract. This Agreement is entered into for the benefit of COURT and AOI. No third-party beneficiaries are intended to be created or are created hereunder. 17. Entire Aareement. This Agreement constitutes the entire understanding between AOI and COURT regarding collection services provided to COURT by AOI, and may not be modified except by written agreement signed by both parties. IN WITNESS WHEREOF, the parties have executed this contr AllianceOne Receivables Management, Inc. City f Au ~?---I/J '1;J</ BY _ Ln./ TITL : TITLE: f1 fJ-y () K:... ritten below. ...---- ADDRESS: 6565 Kimball Drive, Suite 200 P. O. Box 2449 Gig Harbor, W A 98335-4449 DATE: ~/&//{)& ADDRESS: 25 W. Main Street Auburn, WA 98001 AUG 2 1 2006