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Home My WebLink About3372 RESOLUTION NO. 3 3 7 2 A RESOLUTION OF THE CITY COUNCIL AUTHORIZING THE ESTABLISHMENT OF AN AGREEMENT BETWEEN THE CITY OF AUBURN FINANCE DEPAF2TMENT AND ALLIED CREDIT COMPANIES AND ALLIANCEONE, INC., FOR GOLLECTION SERVICES. WHEREAS, the Auburn Finance Department has a need to collect to delinquent accounts; and WHEREAS, the Cify of Auburn Finance Department certifies that every delinquent account referred will contain accurate information; and WHEREAS, Allied Credit Companies and AllianceOne, Inc., will support commercially reasonable efforts to collect delinquent accounts for the City of Auburn Finance Department; and NOW THEREFORE, THE GITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, IN A REGULAR MEETING DULY ASSEMBLED, HEREINITH RESOLVE ThiAT: Section 1. The Mayor and City Clerk of the Gity of Auburn, Washington, are hereby authorized to execute an Agreement for collection services beiween the City 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 3372 July 2,2001 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 � da of o20'O- � Y CITY OF AUBURN Cl l��a.,�.�-.��_ �� CHARLES A. BOOTH Mayor ATTEST: � / , Dan le E. Daskam City Clerk APPROVED AS TO FORM: ; � Michael J. Reynolds City Attorney Resolution 3.372 July 2,2001 Eage 2 ALLIED CREDIT COMPANIES An AllianceOne Company COLLECTION SERVICES AGREEMENT I ___ THIS AGREE.MENT is entered into between the CITY OF AUBURN, hereinafter ealled "CTTY;` and ALLIED CREDIT COMPANIES and AllianceOne, Inc., hereinafter jointly called"ACC." T'his 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 eonsideration of the compensation hereinafter described and the covenants and conditions herein contained,the parties agree as follows: 1. Assignment of Accounts. CTTY will assign to ACC for collection such delinquent aeeounts, hereinafter calle.d"accounts;' as CTTY deems appropriate. 2. Collection Efforts. ACC will use commercially reasonable efforts to collect said accounts, and will confine its efforEs to the highest standard of ethical practice. The CTTY and ACC recognize that the appropriate l.evel of activity may vary according to the type of account, the account balance and the information available. 3. Debts Tust and Owin� CTTY certifies that every account referred will contain accurate inforination 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 oi discharge as of the time of referra.l.. 4. Compliance with Law. ACC's colleation activities shall comply with federal,state and local laws, including the Fair Debt Collection Practices Act(FDCPA),where applicable.. 5. Legal Action. No legal action will be commenced on any account without written permission, first obtained,from CTTY. Legal action commenced under this agieement shall be in the name of ACC and not CTI'Y. ACC will promptly advise CITY if any legal action is contested. CITY 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 CTTY,and will be recoverable from the DEBTOR where allowed by applicable law,out of first monies recovered. 6. 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 ar otherwise, asserted against the other party except for claims and causes of action resulEing from errors or omissions of the other party, and each will reimburse the other for costs and legal expense incurred in connection therewith. 7. Compensation. Compensation to ACC will be a percentage of the original account balance, which will be assessed to the account af the time of assignment pursuant to RC_W 19.16.500, resulting in the return of 100% of the original assigned amounts collected. CTTY will add fees at the following rates: Collection Services Agreement Resolution No.3372 Exhibit"A" COLLECTION SERVICE.S AGREEMENT Page 2 a. Upon placement of an account b.y CTTY with ACC,the CTTY will assess a collection fee to the aecount in the amount of 24% of the balance of the account. ACC will retain a commi5sion fee __ _ of 19.35%0 of the funds collected: For secondary referrals (accounts previously assigned to another agency),a 29% collection fee will be added to the account balance, wi#h ACC retaining a commission fee of 22.48%of the funds collected. These computations for primary and secondary referrals allow for 100�o payback to the City of its original account balance. b. ACC will charge interest,at the rate of 12% per annum,on accounts assigned for collection. All interest eollected will be retained by the City. c. The Cify's cost will be computed and added to the principal balance by ACCs computer system at the time the account is referred to ACC at the above listed rates. d. The City reserves the right to recall an account from collection at any time without penalty to the City. 8. Remittance. Paymenfs on accounts made to ACC will be remitted by ACC to CITY, less ACCs portion,on a weekly basis. 9. Payments to CTTY. A payment made on behalf of a debtor direcfly to CTTY on an assigned account will be promptly reported to ACC by.CTTY. 10. Negotiable Insfiumenfs. CTTY authorizes ACC to endorse ahecks or other instruments payabl.e to CTI'Y and deposit same into a trust account separately maintained by ACC for its CITYs. CIT'Y further authorizes ACC to send notices of dishonor or other notices on CITY's behalf for _ _ dishonored instruments,to assess and�collect any permissible dishonored instrument fees,and to retain any recovered fees, whether such instruments were issued before or after assignxne.nt of the account. 11. Aceount Audits. CTTY 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. Ariy assignments by CTTY and work performed by ACC prior to the signing of this Agreement is specificaIly approved by the parties and ratified by this Agreement. This Agreement may be terminafed in whole or in part from time to time when deemed by tlie CITY 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 eztent to which performance of work under this Agreement is terminated. CTTY will consult with ACC prior to recalling any assigned account,unless otherwise agreeii. 13. 1Von-discrimination. ACC,in iis collection efforts,will not discriminate against any DEBTOR on the basis of race, eolor, 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 Contract. This Agreement is entered into for the benefit of CTTY and ACC. No _ — - third-party beneficiaries are intended to be created or are created hereunder. Collection Services Agreement Resoluti6n No.33'T2 Exhibit"A" w � COLLECTION S.ERVICES AGREEM.ENT Page 3 15. Entire Agreement. This Agreement constitutes the entire understanding between ACC and CITY regarding collection services provided to CITY by ACC, and may not be modified except by written agreement signed by both parties. IN WITNESS WHEREOF,the parties have executed this contract a ��/l� _ _ _ __ ___ . ,on the date last written below. ALLIED CREDTI'CO NIES CTTY OF ALTBURN Alliance0 ,Inc. , � ' � By: By Susie Jensen Mayor Charles Booth TITLE: AVP,Court port Services Attested: ADDRESS: 6565 Kimball Drive,Suite 200 Dani Daskam,City Clerk P.O.Box 2449 Gig Harbor;WA 98335 Ap �ov s Date: 7' G�:s � � Michael Reynolds,City Attorney Date• �I�/ o� Collection Ser4ices Agreement IZesolution No.3372 , Exhibit"A"