HomeMy WebLinkAbout4668 Contract Number: 4668
Vendor: ALLIANCEONE RECEIVABLES MANAGEMENT INC
Subject: Collection Services
Department: Muni Court
• File Class: LEG 12-1
Begin Date: 10/31/2007
End Date:
Review Date: 06/15/2011
,
Vault Date:
Comments: In effect until terminated by either party
Modification #1-5/08
Review date for tracking only
CONTRACT MODIFICATION AGREEMENT NO.1
BETWEEN THE CITY OF BREMERTON AND
ALLIANCEONE RECEIVABLES MANAGEMENT, INC.
This Contract Modification Agreement specifically amends the Collection Services Agreement
(the "contract") entered into between the City of Bremerton, Bremerton Municipal Court
(CLIENT) and AllianceOne Receivables Management, Inc. (ARM I) on October 31, 2007.
All provisions in the Contract shall remain in full force and effect except as expressly modified
by this document.
For valuable consideration and by mutual consent of the parties, the modifications to the
Contract are as follows:
I.
Section One, Assignment of Accounts is modified to read as follows:
1. Assignment of Accounts. CLIENT will assign to ARMI for collection
such unpaid accounts, hereinafter call "Accounts," as CLIENT deems
appropriate, which may include accounts as assigned by Redflex Traffic
Systems, Inc. ("Redflex) under its contract with the CLIENT. (CLIENT
has implemented or will implement a Traffic Safety Camera Program
("TSCP") under RCW 46.63.170 and/or local ordinance. and anticipates
referring infraction accounts arising from the TSCP to ARMI for
collection. ARMI is authorized to communicate directly with Redflex.
CLIENT's TSCP provider. and receive infoffilation and documentation
directly from Redflex whenever necessary or desirable. Where desired by
the CLIENT. Redflex will perform the ministerial task of supplving
account data directlv to ARMI sufficient for ARM I to create account tiles
on refelTcd accounts.)
II.
This document will become a supplement of the contract and all provisions will apply
hereto. It is understood that this Contract Modification shall be effective when approved
by the City of Bremerton.
The parties whose names appear below warrant that they are authorized to enter into a
contract modification that is binding on the parties of this contract. In addition, ARMI
warrants that it has or will inform the surety of this change, and shall take appropriate
action to modify any bonds required under the contract to address this change.
IN WITNESS WHEREOF, the parties have executed this Contract Modification on the day
and year first written above.
CONTRACT MODIFICATION #1
ALLIANCEONE RECEIVABLES MANAMGENT, INC.
ALLIANCEONE RECEIVABLES
MANA ENT, NC.
By
Its
DATE:
APPROVED AS TO FORM:
Brtkiy
R:\Legal\LegaI\Contracts\MunicipaI Court\AlIianceOne.amdI .doc
CONTRACT MODIFICATION #1 2
ALLIANCEONE RECEIVABLES MANAMGENT, INC.
C~g~.
By Cary Bozeman
Its Mayor
DATE: JjPo/~R
ATTEST:
..~d~~
City Cler
Contract Number
4668
Vendor ALLIANCEONE RECEIVABLES MANAGEMENT INC
Subject Collection Services
Department Muni Court
Status Code PRO File Class LEG 12-1
Amount $
Begin Date 10/31/2007
End Date
Review Date 06/15/2009
Insurance GL $ Insurance Total $
AL $ Insurance Review Date
E&O $
Comments Review date for tracking only
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COLLECTION SERVICES AGREEMENT
:2 ~ ,
THIS AGREEMENT, effective the "C.) I day of ~\:)e..r , 2007
(the "Effective Date"), is entered into between BREMERTON MUNICIPAL COURT (hereinafter
called "CLIENT") and AllianceOne Receivables Management, Inc. (hereinafter called "ARMI"). For
and in consideration of the compensation hereinafter described and the covenants and conditions
herein contained, the parties agree as follows:
1. Assiqnment of Accounts. CLIENT will assign to ARMI for collection such unpaid accounts,
hereinafter called "Accounts," as CLIENT deems appropriate.
2. Collection Efforts. ARMI will use commercially reasonable efforts to collect said Accounts,
and will confine its efforts to the highest standard of ethical practice. CLIENT and ARMI
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 Owinq. CLIENT certifies that, to the best of its knowledge, every Account
referred will contain accurate information and will be just and owing, 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. ARMl's collection activities shall comply with federal, state and local
laws, including the Fair Debt Collection Practices Act (FDCPA), where applicable.
5. Leqal 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. ARMI will promptly advise CLIENT if any
legal action is contested. CLIENT will provide evidence as requested by ARMI 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 recoverable from the DEBTOR where allowed by applicable law, out
of first monies recovered.
6. Insurance. ARMI shall obtain and keep in force continuously during the term of the
contract comprehensive professional practices (errors and omissions) insurance coverage
in the amount of at least One Million Dollars ($1,000,000.00).
7. Indemnification. ARMI agrees and covenants to indemnify, defend and save harmless
CLIENT and its officers, agents, and employees against and from any loss, damage, costs,
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 ARMI, its subcontractors and/or employees, except for
that portion of the injuries or damages caused by CLIENT's negligence.
8. Assiqnments. 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 ARMI can forward individual Accounts to out-of-state collection agencies if
deemed prudent by ARMI to effect collection.
9. Severabilitv. 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
ARMI shall be entitled to compensation as follows:
A. Pre-Collection Demand Letter: No charge.
B. Court Costs for Collection Fees: CLIENT will assess a court cost for ARMI's
collection fee pursuant to RCW 3.02.045. CLIENT directs ARMI to perform the ministerial
act of adding this cost to the Account balance on its computer system at the time the
Account is entered into its computer, in the following amounts:
A 19% add-on fee (0.1596 retained) for new Accounts assigned to ARMI on and
after the Effective Date. Previously-assigned Accounts will remain at their existing
rates.
C. Partial Payments: Partial payments made on assigned Accounts shall be remitted to
CLIENT 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 + 19% = $119 new balance
to be collected; a $50 payment received would be remitted as follows: $7.98 to ARMI ($7.98
= .1596 of $50); $42.02 to CLIENT.
D. Interest on Accounts: Upon assignment to collection, interest shall accrue on all
Account amounts, including court costs for collection fees, at the rate of twelve percent per
annum. The interest shall be added to the Account by ARMI, collected by ARMI, and
remitted in full by ARMI to CLIENT on CLIENT'S portion of the Account (interest on the
collection fee portion will be retained by ARMI).
E. Signal Credit Management Services Program (Signal): ARMI will offer a monthly-
payment collection service (the Signal Credit Management Services Program) for CLIENT's
obligors on non-delinquent obligations, but CLIENT is under no obligation to use this
program. CLIENT will assess as court costs for this service and ARMI will add such costs
(also called "Service Fees") to the Accounts as follows:
1. $15.00 Account Set-Up Fee: a one-time charge per obligor per court of
limited jurisdiction (fee charged only once while defendant remains in an
active Signal program, even should new cases be added to the active
program; setting up a new Signal program after a program has been
completed or discontinued requires another Set-Up Fee).
2. $ 4.75 Monthly Fee: one charge per Account per obligor with one case.
3. $ 8.25 Monthly Fee: one charge per Account per obligor with multiple cases.
4. $ 7.75 Monthly Fee: one charge per Account per obligor with one case in
"past due status."
5. $11.25 Monthly Fee: one charge per Account per obligor with multiple cases
in "past due status."
ARMI will collect and retain all Signal Service Fees. Where a Signal Account is assigned to
full collection, Service Fees shall not be added to the principal amount of the debt for
purposes of calculating ARMI'S collection fee authorized in sub-paragraph B above, but can
otherwise be collected.
F. Net Remittance: ARMI shall deduct its compensation from recoveries prior to
remitting the CLIENT's portion.
09-07 rev
COLLECTION SERVICES AGREEMENT
Page 2
G. Change in Law: Should there be changes in law or CLIENT policy which prescribe
or allow a different method for recovering Collection Fees, ARMI shall modify its methods
accordingly upon instruction from CLIENT.
11. Payments to CLIENT. A payment made on behalf of a debtor directly to CLIENT on an
assigned Account will be promptly reported to ARMI by CLIENT.
12. Bankruptcv. Where an Account becomes subject to bankruptcy proceedings, ARMI will, at
the option of CLIENT, either (a) cancel the Account back to CLIENT, or (b) file a claim on
behalf of CLIENT. If CLIENT desires that ARMI file a claim, ARMI will retain the "fee-
added" amount of the Account whether or not that fee is allowed by the bankruptcy court
as an allowable claim (i.e., if the principal obligation is allowed, but the collection fee is not,
ARMI will deduct its fee from the allowed principal claim on a pro-rata basis). For a
Chapter 7 proceeding the parties anticipate that no claim will be permitted nor payment
made by the bankruptcy trustee on any assigned Account; that some bankruptcy courts
consider a court cost for collection fees assessed pre-petition to be dischargeable, but that
a new court cost for collection fees can be assessed after the bankruptcy is concluded; and
that CLIENT will post-bankruptcy assess a new court cost for collection fees and re-assign
the Account by way of a local court administrative rule providing for same, so that
collections activity can resume.
13. Neqotiable Instruments. CLIENT authorizes ARMI to endorse checks or other instruments
payable to CLIENT and deposit same into a trust account maintained by ARM!. 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. CLIENT may audit ARMI's records pertaining to assigned Accounts upon
reasonable notice.
15. Term and Termination. This Agreement will remain in effect until terminated by either
party. Any assignments by CLIENT and work performed by ARMI prior to the signing of
this Agreement are 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 CLIENT or ARMI to be in its best interest. Termination of work hereunder shall be
effected by delivering to a party a Notice of Termination ninety (90) days prior to the
specified effective date, detailing the extent to which performance of work under this
Agreement is terminated. Upon termination and CLIENT request, ARMI shall provide
account information covered by this Agreement to the CLIENT.
16. Non-discrimination. ARMI, in its collection efforts, will not discriminate against any
DEBTOR on the basis of race, color, creed, religion, sex, sexual orientation, 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.
17. Beneficiaries to Contract. This Agreement is entered into for the benefit of CLIENT and
ARM!. No third-party beneficiaries are intended to be created or are created hereunder,
and no other party can derive any benefit herefrom.
18. Entire Aqreement. This Agreement 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.
19. Waiver. The failure of either party to insist upon strict performance of any of the provision
contained herein, or to exercise any option herein conferred in one or more instances shall
not be construed to be a waiver or relinquishment of said provisions or options, and the
same shall be and remain in full force and effect. Waiver of any right or power arising out
of this Agreement shall not be deemed waiver of any other right or power.
09-07 rev
COLLECTION SERVICES AGREEMENT
Page 3
20. Choice of law and Venue. This Agreement shall be interpreted according to the laws of
the State of Washington. Any judicial action to resolve disputes arising out of this
Agreement shall be brought in Kitsap County Superior Court.
IN WITNESS WHEREOF, the parties have executed this contract on the date last written below.
AllianceOne Receivables Management, Inc.
BremenunJll\1 Court
BY: t).Zl/J
TITLE: ('o\...U""+ Seru1Co-s
B~ ;/~
TITl : r?
ADDRESS:
6565 Kimball Drive, Suite 200
P. O. Box 2449
Gig Harbor, W A 98335-4449
DATE: /0- 9....-o~
ADDRESS:
900 Pacific Ave
Bremerton, WA 98337
DATE: \0\ 31 \ 0,
09-07 rev
COLLECTION SERVICES AGREEMENT
Page 4