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HomeMy WebLinkAboutResolution No. 2011-29dry of KENAI, ALASKA Suggested by: Administration CITY OF KENAI RESOLUTION NO. 2011 -29 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A CONTRACT TO PROFESSIONAL CREDIT SERVICE TO PERFORM COLLECTION SERVICES FOR THE CITY OF KENAI ON DELINQUENT AMBULANCE BILLS. WHEREAS, the request for proposal evaluation results of April 4, 2011 were: ; and, PROPOSER PROPOSAL SCORE Associated Credit Agency 170.10 Professional Credit Service 248.40 WHEREAS, the Professional Credit Service's proposal ranked the highest and award to this proposer would be in the best interest of the City; and, WHEREAS, the recommendation from the City Administration is to award the contract to Professional Credit Service to perform delinquent account collection services for the City for fees of 24% on accounts not requiring legal action and 35% on accounts requiring legal action. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, the Council authorizes the City Manager to enter into a contract with Professional Credit Services to perform collection on delinquent ambulance billing accounts of the City pursuant the City's Collection Policy adopted via Resolution 2011- 06. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fourth day of May, 2011. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance:____ SM Professional Credit Service n,..,,o. of Hawes c ina„cia: GeouP COLLECTION SERVICE AGREEMENT THIS AGREEMENT is entered into this 5th day of May, 2011, by and between City of Kenai, hereinafter referred to as "CLIENT," and Ray Klein, Inc., an Oregon corporation doing business as Professional Credit Service, hereinafter referred to as "PCS." WHEREAS, CLIENT is the owner, or represents the owner of certain delinquent accounts that CLIENT desires to collect in an efficient and expeditious manner and desires to retain the service of PCS for that purpose, and WHEREAS, PCS is a professional collection agency specializing in the collection of delinquent accounts pursuant to this agreement. NOW, THEREFORE, in consideration of the mutual promises, responsibilities, compensation, and conditions set forth herein, and for good and other valuable consideration, the parties hereby agree as follows: A. RELATIONSHIP OF PARTIES 1. INDEPENDENT CONTRACTOR: PCS shall perfoiuu under this agreement as an independent contractor, not as an employee, agent or servant of CLIENT, and nothing herein contained shall be construed to be inconsistent with this relationship or status. PCS acknowledges that its agents, employees, and servants are not entitled to benefit from CLIENT as an employee of CLIENT. B. RESPONSIBILITIES OF PCS 1. GOOD FAITH: PCS shall exercise due diligence and good faith in collection of assigned accounts. 2. AGENCY CONDUCT & PROFESSIONALISM: PCS shall conduct its business in conformity with all State and Federal laws pertaining to providing and maintaining collection agency functions. PCS shall maintain the highest standards of ethical practice and professionalism. PCS shall make every effort to protect CLIENT's image while performing collection activities. PCS shall promptly notify CLIENT of any claim, demand, or lawsuit arising out of PCS 's provision of collection services and operations under this agreement. 3. LICENSES & BOND: PCS has obtained all licenses and permits required by law, has posted all bonds required by law, has complied with all laws and governmental regulations required of collection agencies, and is a duly licensed collection agency. PCS shall maintain all licenses and permits required by law, and all bonds required by law, throughout the teen of this agreement. 4. LISTING OF ACCOUNTS: PCS shall list CLIENT accounts, upon CLIENT's request, via printout or electronic media, or by other mutually agreeable means. 5. REPORTS: PCS shall provide the following reports quarterly or more frequently as requested by the CLIENT- a. Alphabetical Acknowledgement of the receipt of accounts by PCS for collection, as assigned by CLIENT, within five (5) business days after receiving accounts. Professional Credit Service Page 1 of 6 PCS Collection Agreement (N; 12.09.08) SM a WA Professional Credit Service d;,.;.,on of Hawes f■nancia: croup 2. FORWARD AUTHORITY: PCS may, with mutual agreement of the City, forward CLIENT accounts to an external collection agent, agency, or attorney in order to enforce collection. 3. SETTLEMENT AUTHORITY: PCS will not accept any compromise settlement on CLIENT's behalf that is less than the amount assigned without prior approval from CLIENT. Nothing herein obligates CLIENT to agree to any specific compromise or settlement. F. PAYMENTS 1. PAYMENTS RECEIVED BY PCS: PCS shall remit payments on account to CLIENT, less compensation as provided in Section G of this agreement, along with a detailed, monthly report of payments. Payments made to PCS on accounts shall be deposited in a dedicated client trust account maintained by PCS on behalf of CLIENT, less compensation due to PCS as described in section G of this Agreement. 2. PAYMENTS RECEIVED BY CLIENT: CLIENT shall promptly notify PCS orally and in writing of any payments made directly to CLIENT on any account previously referred to PCS. For each such payment made directly to CLIENT, PCS shall be authorized to retain from CLIENT, the applicable commission fee percentage specified in Section G of this Agreement. G. COMPENSATION AND COSTS 1. FULL COLLECTION SERVICE: A commission rate of twenty four percent (24 %) of amounts collected shall be paid to PCS for services rendered under this agreement on principal payments received by either PCS or CLIENT, with the exception of subsections 2 and 3 below. 2. LEGAL & FORWARDING COLLECTION SERVICE: A commission rate of thirty five percent (35 %) of amounts collected shall be paid to PCS on principal payments received by either PCS or CLIENT on assigned accounts on which PCS has filed suit or incurred fees in connection with forwarding account to an external collection agent, agency, or attorney in order to enforce collection. 3. SECOND PLACEMENT ACCOUNTS: A commission rate of thirty five percent (35 %) of amounts collected shall be paid to PCS on principal payments received by either PCS or CLIENT on assigned accounts that have been previously held by other collection agencies. 4. COSTS & LEGAL FEES: PCS shall pay its own costs, court costs and legal fees associated with the collection of delinquent accounts pursuant to this agreement. PCS shall retain all attorney fees, court costs, interest, and other fees recovered in collection of CLIENT accounts. 5. PAYMENT OF COMPENSATION: Unless otherwise agreed in writing, all accounts are assigned on a contingency basis. Compensation will be paid to PCS only on accounts collected. H. MUTUAL RESPONSIBILITIES 1. INDEMNIFICATION: PCS agrees to defend, indemnify and hold CLIENT hain less against any and all losses, expenses, damages, claims, and actions, provided said claims and causes of action arise out of the collection efforts of PCS and those representing or acting on behalf of PCS. CLIENT agrees to defend, indemnify and hold PCS harmless against any and alllosses, expenses, damages, claims, and actions, which arise out of the actions of CLIENT, its directors, officers, members, managers, affiliates, partners, agents, servants, and employees. Professional Credit Service Page 3 of 6 PCS Collection Agreement (N; 12.09.08) SM EiE 'Want Professional Credit Service a,.i,ion of I,aw., h,,anclal coon To PCS: Professional Credit Service P.O. Box 7548, Eugene, OR 97401 To CLIENT- City of Kenai Attn: Finance Director 210 Fidalgo Avenue Kenai, AK 99611 6. COURT COSTS & EXPENSES: The prevailing party shall be entitled to reasonable attorney fees and costs _� byr reason f a,�u court gusts iiiCiaiiou by ieasun of enforcing any of the provisions of this agreement at final and on appeal. 7. NON - EXCLUSIVE REMEDIES: No remedy made available by any of the provisions of this agreement is intended to be exclusive of any other remedy. Each and every remedy shall be cumulative and shall be in addition to every other remedy whether given hereunder, now existing or hereafter arising and whether at law, in equity, including injunctive relief, by statute or otherwise. 8. SECTION HEADINGS: Section headings are for convenient reference only and will not affect the meaning or interpretation of any provision of this agreement. 9. AUTHORITY: The individuals executing this Agreement represent and warrant that are authorized to execute this Agreement on behalf of the parties hereto. 10. NO DISCRIMINATION: PCS shall not discriminate on the grounds of race, color, religion, national origin, ancestry, or sex against any patron, employee, applicant for employment, or other person or group of persons in any matter prohibited by federal or state law. Professional Credit Service Page 5 of 6 PCS Collection Agreement (N; 12.09.08) /y a// KENAI, ALASKA \`/ "I/illaye with a Past, Ci y with a Future FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014 To: Rick Koch, City Manager ifFrom: Terry Eubank, Finance Director Date: April 13, 2011 Re: Resolution 2011-29 Professional Credit Service Pursuant to Resolution 2011 -06 Ambulance Fee Collection Policy, the Finance Department solicited proposals from licensed collection agencies. On March 1, 2011, 117 postcards were mailed out advertising the Request for Proposals. These 117 agencies were listed on the State of Alaska's site as registered collection agencies. We received requests for the bid documents from 21 agencies. Bids were due March 28, 2011 and two bids were received and reviewed by three evaluators. Bid tallies are as follow: Associated Credit Agency 170.10 Total Points Professional Credit Service 248.40 Total Points PCS is located in Oregon and ranked higher on every criteria of the RFP. Criteria included Experience and Qualifications, Performance, Available Resources, Home Office Location, Methodology and Approach and Cost. It is the City Administration's recommendation to award the contract to Professional Credit Service to perform delinquent account collection services for the City for fees of 24% on accounts not requiring legal action and 35% on accounts requiring legal action. These rates compare to 35% on non legal accounts and 40% on legal accounts of the second proposer. KENAI, ALASKA \�/ "I/c'llaye with a Past, Gay with a Future" FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014 To: Rick Koch, City Manager From: Terry Eubank, Finance Director Date: April 28, 2011 Re: Resolution 2011 -29 — Proposed Contract for Collection Services Attached is the negotiated contract for collection services. Ms. Stearns, the City Attorney, and I discussed the initial contract proposal and requested numerous changes. Each of the City's requests were honored by Professional Credit Services (PCS).