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HomeMy WebLinkAbout4552 Contract Number: Vendor: Subject: Department: File Class: Begin Date: End Date: Review Date: Vault Date: Comments: 4552 ALLIANCEONE Collection Services City Clerk LEG 12-1 04/07/2006 06/15/2010 Review date for tracking only n COLLECTION SERVICE AGREEMENT THIS AGREEMENT is entered into between City of Bremerton (hereinafter "Client") and AllianceOne Receivables Management, Inc. (hereinafter "ARM!"), with an effective date of the ih day of April, 2006. For the consideration herein described, the sufficiency of which is acknowledged, and the covenants and conditions herein contained, the parties agree as follows: 1. Term. This agreement is continuing and will remain in effect until terminated by either party. Any assignments by Client and work performed by ARM! prior to the signing of this Agreement is specifically approved by the parties and ratified by this Agreement. 2. Assignment of Accounts. Client will assign to ARM! for collection such accounts, hereinafter called "accounts," as Client deems appropriate. The Client agrees that any accounts assigned to ARM! during the term of this agreement will not be placed with any other individual or entity as long as such accounts are being actively collected by ARM!. The parties understand that in order for ARM! to provide services to Client under this agreement, ARMI must have access to debtor data including, without limitation, biographical information, and all other debtor information regardless of form, and may also have access to other information of a proprietary nature to Client. 3. Collection Efforts. ARMI will use commercially reasonable efforts to collect said accounts, and will confine its efforts to the highest standard of ethical practice. The Client and ARM! recognize that the appropriate level of collection activity may vary according to the type of account, the account balance and the information available. 4. Debts Just and Owing. Client certifies that, to the best of its knowledge, every account referred will be a just debt due 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. The Client shall promptly inform ARM!, in writing of any notices it receives concerning any bankruptcy filings by debtors. Client further warrants and guarantees that the account referred will contain accurate information, including information regarding the identity of the debtor, legal limitations on the debtor's responsibility to repay the account, the balance of the account, payments made and credits due. 5. Compliance with Law. ARMI's collection activities shall comply with federal, state and local laws governing third-party collections of the type contemplated by this Agreement, including where applicable the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. 6. Legal Action. No legal action will be commenced on any account without written permission, first obtained, from Client. Legal action commenced under this agreement shall be in the name of ARMI and not Client where permitted by law. ARM! will promptly advise Client if any legal action is contested. Client will provide evidence as requested by ARM! 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 ARMI and not Client, and will be recovered from the debtor where allowed by applicable law, out of first monies recovered. Collection Services Agreement (rev 4-05-05) Page 1 7. Claims against Client. Neither ARMI nor ARMI's attorneys shall be responsible for providing the Client with legal representation to defend the Client against any claims, counterclaims or third-party claims asserted against CLIENT, whether asserted in response to a collection lawsuit initiated by ARMI or otherwise. 8. Cancellation of Accounts. To the extent practicable and unless otherwise agreed, Client will consult with ARMI prior to recalling any assigned account. For any account on which Client has approved legal action by ARMI, Client shall not cancel such account without first reimbursing ARMI for its legal expenses (which includes attorney fees) awarded in any judgment or, if no judgment is yet filed, its legal expenses incurred. On accounts with active payment arrangements, whether legal accounts or otherwise, ARMI will retain its right to commissions and interest recovered after cancellation. 9. Hold Harmless and Indemnification. ARMI will indemnify and hold harmless the Client, and it officers, agents, owners, attorneys and employees from any claim, loss, cost, damage, expense, attorneys' fees, and liability of whatsoever nature or kind (collectively the "Claims"), arising out of or as a result of the negligent acts or omissions of the ARMI or any of its agents or employees. Client will indemnify and hold harmless ARMI, its parent, subsidiary or affiliated companies and divisions, and their officers, agents, owners, attorneys and employees from any Claims arising out of or as a result of the negligent acts or omissions of the Client, its employees or agents; and specifically agrees to indemnify and hold ARMI harmless from and against all Claims resulting from errors in account information furnished to ARMI by Client. The indemnities provided for herein shall survive the termination of this Agreement. 10. Compensation. Compensation to ARMI will be a percentage of the original account balance, which Client will assess to the account at the time of assignment pursuant RCW 19.16.500. Upon placement of an account by Client with ARMI, Client will assess a collection fee to the account in the amount of 35% of the balance of the account. ARMI will retain a commission fee of 25.93% of the funds collected, resulting in a 100% return of the original account balance. Client directs ARMI to add the collection fee via its computer program at the time the account is entered in ARMI's database. The add-on and retained rates for accounts assigned to ARMI prior to the effective date of this Agreement shall remain at the rates in effect at the time of the original assignments. Accounts assigned on or after the effective date of the Agreement shall be subject to the compensation rates described in the Agreement. 11. Remittance and Reporting. Unless otherwise agreed, payments on accounts made to ARMI will be remitted by ARMI to Client, less ARMI's portion, on or before the 15th day of the month following payment, and will be accompanied by a remittance report including, among other things, the amount of payments received, the date of the payments, account number and the debtor's name. 12. Payments to Client. Client shall promptly notify ARMI of any payments received on behalf of a debtor from a source other than ARM!. ARMI shall then deduct its share of such payment from subsequent remittance to Client. 13. Negotiable Instruments. Client authorizes ARMI to endorse checks or other instruments payable to Client and deposit same into a trust account separately maintained by ARMI for its clients. Client further authorizes ARMI to send notices of dishonor or other notices on Client'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 assignment of the account. 14. Account Audits. ARMI will permit Client to audit accounts referred for collection during regular business hours upon reasonable advance notice. 15. Termination. This agreement may be terminated in whole or in part from time to time when deemed by the Client or ARMI to be in its best interest. Termination of work hereunder shall be effected by delivering to a party of 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. Upon termination of the Agreement: Collection Services Agreement Page 2 15.1 Continued Efforts. After the termination of this Agreement, ARMI shall be entitled to continue working on any Accounts it has received from Client prior to the termination date of this Agreement so long as such accounts have been classified by ARMI as "payment promised" or "payment arrangement" and so long as ARMI is continuing to receive payments on such Collection Accounts. In any event, ARMI shall be entitled to continue working on any Accounts it has received from Client prior to receipt of notice of the Provider's intent to terminate this Agreement for the full thirty (30) day notice period. 15.2 No Obligation to Continue Efforts. ARMI shall not be required to perform any work on any Collection Accounts after ARMI has received notice of Client's intent to terminate this Agreement. In the event that ARMI chooses to cease working any of the Accounts subsequent to receiving notice of Client's intent to terminate this Agreement, ARMI shall return such Accounts forthwith to Client. 15.3 Cooperation Upon Termination. In the event ofa termination of this Agreement by either party, ARMI agrees to use its best efforts to furnish Client with the status of the Accounts that are being actively worked by ARMI at the time of such termination. 16. Waiver of Breach. The waiver by either party of a breach or violation of any provision of this agreement shall not operate as or be construed to constitute a waiver of any subsequent breach of the same or another provision. 17. Severability. If any provision of this agreement shall be adjudged by any court of competent jurisdiction to be invalid or unenforceable for any reason, such judgment shall not affect, impair or invalidate the remainder of this agreement. 18. Notices. All notices, requests, demands, consents and other communications hereunder shall be in writing and shall be deemed to have been duly given when either (a) personally delivered; or (b) when deposited via certified mail, return receipt requested, postage prepaid to the intended recipient set forth below: If to ARMI: AllianceOne Receivables Management, Inc. 717 Constitution Drive, Suite 202 Exton, PA 19341 If to Client: City of Bremerton, Financial Services Dept. 345 - 6th Street, Ste. 600 Bremerton, WA 98337-1873 19. Interest. Client authorizes ARMI to add interest to accounts at the rate permitted by law, and to retain any interest recovered. 20. Taxes. Client agrees to pay all sales, use or similar taxes as may be applicable to the services rendered by ARM!. 21. Non-discrimination. ARMI, in its collection efforts, will not discriminate against any consumer on the basis of race, color, creed, religion, sex or national origin. ARMI will comply with the requirements of the Americans with Disabilities Act of 1992, and all regulations interpreting or enforcing said Act. 22. Beneficiaries to Contract. This Agreement is entered into for the benefit of Client and ARMI, and no other parties are entitled to enforce its terms. No third-party beneficiaries are intended to be created or are created hereunder, and no other party can derive any benefit or right here from. Collection Services Agreement Page 3 23. Entire Agreement. This Agreement, with attached Addendum 1, constitutes the entire understanding between ARMI and Client regarding collection services provided to Client by ARMI, and may not be modified except by written agreement signed by both parties. 24. Agreement All-Inclusive. This Agreement supercedes any prior Agreement, unless incorporated herein by reference. 25. Governing Law, Jurisdiction and Venue. This agreement shall be governed by the laws of the State of Washington. Jurisdiction for any dispute arising hereunder shall be in the superior or district courts of Washington, with venue situated in Kitsap County. IN WITNESS WHEREOF, the parties have executed this contract at 0 -'.-" ~~) Washington. City of Bremerton :~.ap;~z;~;en~ Ine. ((PRINT NA )) Mr:jj/~r ((TIT ~- /I-O&' ,( t1!- ((DA TE)) ((TITLIm ~i~) 345 - 6th Street, Ste. 600 Bremerton, WA 98337-1873 717 Constitution Drive, Suite 202 Exton, P A 19341 Collection Services Agreement Page 4 ADDENDUM 1 This Addendum is made part of that certain Collection Services Agreement (hereinafter "Agreement") by and between City of Bremerton (hereinafter "Client") and AIlianceOne Receivables Management, Inc. (hereinafter "ARM1"), dated April 7, 2006. The parties agree as follows: Dishonored Checks. Client may utilize the services of ARMI for collection of assigned dishonored check accounts. A handling fee of a minimum of $30 and a maximum of $40 will be assessed to every dishonored check. Unless otherwise agreed, client will send a Notice of Dishonor in the statutory form to the account debtor. Upon successful recovery, ARMI will remit to Client the following amounts: the full face amount of the check; $25 of any dishonored check fees for non-legal accounts; up to $120 of any dishonored check fees or damages on legal accounts (which includes the $25 amount referenced for non-legal accounts), not to exceed 40% of the statutory damages amount. AllianceOne Receivables Management, Inc. By: By: Date: Date: ~w II-()& Collection Services Agreement Page 5