Resolution No. 80801
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RESOLUTION NO. 8080
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND RATIFYING THE EXECUTION OF A
GENERAL AGREEMENT BY AND BETWEEN THE CITY OF VERNON
AND J.J. MAC INTYRE CO., INC. FOR COLLECTION
SERVICES
WHEREAS, the Finance Department has determined that it needs
the services of a collection agency to provide debt collection services
for the large number of past due accounts that have accumulated; and
WHEREAS, the collection of these delinquent accounts is a
time-consuming process that the Finance Department is not staffed to
handle; and
WHEREAS, City staff obtained informal quotes from collection
agencies used by other cities and determined that the firm of J.J. Mac
Intyre Co., Inc. ("J.J.") met the requirements of the Finance
Department; and
WHEREAS, J.J. provided the City with a General Agreement
memorializing the terms and conditions of its collection recovery
services; and
WHEREAS, in order to meet the urgent need for the collection
of past due accounts, the City Administrator executed a General
Agreement with J.J. on September 25, 2002, subject to ratification by
the City Council; and
WHEREAS, on October 1, 2002, the Finance Committee
recommended that the City Council approve the recommendation of Bruce
V. Malkenhorst, Director of Finance, dated September 26, 2002, that
J.J. be retained to pursue the collection of outstanding invoices and
that the agreement with J.J. be ratified; and
WHEREAS, the City Council desires to approve and ratify the
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General Agreement, as executed by the City Administrator, for debt
collection services; and
WHEREAS, the City Council of the City of Vernon has
determined that, pursuant to the provisions of subsection (a) of
Section 2.27 of the Vernon City Code, it is in the public interest and
necessity to ratify entering into the General Agreement with J.J. to
enhance services provided to the Vernon community.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
ratifies the execution of the General Agreement with J.J., a copy of
which is attached hereto as Exhibit "A" and made a part hereof.
SECTION 3: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 9tn day of October, 2002.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
LEONIS C. MAL URG, Ma 'or
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
8080, was duly adopted by the City Council of the City of Vernon at an
adjourned regular meeting of the City Council duly held on Wednesday,
October 9, 2002, and thereafter was duly signed by the Mayor of the
City of Vernon.
(SEAL)
BRUCE V. MALKENHORST, City Clerk.
- 3 -
EXHIBIT A
EXHIBIT
0
10/01/2002 09:35 FAX 323 581 7924 CITY.OF VERNON J LEHR Z003
J.J. Mac Intyre Co_, Inc.
Collection Recovery Services
GENERAL AGREEMENT
This agreement made and entered into this 25thdayof September , 2002, by and between City of Vernon, hereinafter
referred to as CLIENT and J. J. Mac Intyre Co,, Inc., licensed collection agencies, hereinafter referred to as AGENCY.
AGENCYshall provide collection services for CLIENT delinquent accounts receivable and other monies owed to CLIENT. All
accounts assigned for collection to AGENCY by CLIENT are bona fide accounts, justly owing, due and unpaid.
AGENCY is to act as Attorney -in -fact for CLIENT on all accounts assigned, and to perform all acts necessary to effect collection.
AGENCY is authorized to endorse checks, etc. made payable to CLIENT and to deposit same into AGENCY'S trust account.
AGENCY will furnish CLIENT with a statement each month and net check covering all collections received during the month by the
15d'day of the following month.
Under this Agreement, AGENCY is authorized, but not obligated, to bring suit and to use all other legal methods to enforce collection
of accounts assigned hereunder. AGENCY is not a law firm, and it files lawsuits at i[s sole discretion. AGENCY has made no promise
or guarantee that it will actually file suit. CLIENT is hereby advised that, in California, the Statute of Limitations requires that any suit
must be filed within four years from the date of the first breach of a written agreement and two years from the first breach of an oral
agreement. CLIENT hereby agrees that AGENCY will not be responsible if the Statute of Limitations expires on any account assigned
for collection.
AGENCY agrees to advance all court costs and attorney fees to be deducted from the first monies collected. Interest and returned
check charges by AGENCY shall be retained by AGENCY.
Rates: No Collection - No Charge,
Twenty (20%) percent commission on all collections on balances assigned during first 30 days,
Thirty (30%) percent commission on all collections on balances assigned on day 31 and after,
Forty (40%) percent commission on all collections on balances processed through the legal office,
Forty-five (45%) percent commission on all collections on balances that have been skip traced and/or forwarded.
Rate applies to money paid directly to CLIENT or to AGENCY. We hereby agree that all accounts heretofore, herewith, or hereafter
assigned hereunder shall be subject to the terms of this agreement.
Executed in Los Angeles County, California on this 25thday of September, 2002.
AGENCY
J• J. Mac Intyre Co., Inc.
Tanya Jones, Sales Re esentative
1801 California Avenue
Corona, California 92881
(909.) 898-4311
SC: 330
Agency Number: Client Number:
Date: August 5, 2002
CLIENT
City of Vernon
Authorized Signature
4305 Santa Fe Avenue
Vernon, CA 90059
Phone- (323) 583-8811
Fax.
Contact: Martha Valenzuela, Finance Department
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SUPPORTING
DOCUMENTS
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro —Tern
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Clerk
FAX (323) 826-1438
Finance Committee
City of Vernon
Honorable Members:
z
EDUARDO OLIVO
City Attorney
FAX: (562) 869-1883
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
September 26, 2002
KENNETH J. DeDARIO
Director of Utilities
FAX: (323) 826-1425
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
FAX: (323) 826-1481
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v.
The Finance Department is accumulating a large number of outstanding
invoices due and payable to the City of Vernon. The collection of
these invoices is a time consuming process that the department is not
staffed to handle. The Collection Recovery Services of J.J. Mac
Intyre Co. Inc., have been retained to pursue the collection of
outstanding invoices and it is hereby recommended that the Collection
Recovery Service Agreement with J.J. Mac Intyre Co., Inc. be ratified.
Very truly yours,
Bruce V. Malkenhorst
Director of Finance
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OFFICE MEMORANDUM
FINANCE DEPARTMENT
DATE: September 26, 2002
TO: Bruce V. Malkenhorst, City Administrator
FROM: Martha Valenzuela, Finance Office Manager
SUBJECT: J.J. Mac Intyre Co., Inc.
The Finance Department has been in need of a collection agency to collect on past due invoices that
we have tried to collect in house and have been unsuccessful. Raquel Franco called different cities to
find out what collection agency they were using. J.J. Mac Intyre Co., Inc., was the best suited to
handle our collections. Their fee is based on the attached agreement.
Orosco, Gloria
From: Valenzuela, Martha
Sent: Wednesday, September 25, 2002 2:08 PM
To: Orosco, Gloria
Subject: RE: Agreement
Can we begin using their services or do we have to wait for Council approval? I would like to begin using their services
right away.
-----Original Message-----
From: Orosm, Gloria
Sent: Wednesday, September 25, 200212:58 PM
To: ValermMa, Martha
Subject: RE: Agreement �/✓ '
i guess you should probably give me a copy of your copy & then we will present it to either finance or council to ratify
bruce's execution effective the date he signed it. this would also give us a resolution to more easily track the
agreement in the future if we need to.
-----Original Message --
From: Vatenzuela, Martha
Sens: Wednesday, September 25, 2002 9:07 AM
To: Orosco, Gloria
Subject: RE: Agreement
The collection agency will keep 20% 30days; 30% 31day and after; 40% if collection has to be handled by their
legal office and 45% for collections that have been skip traced. There is no annual or monthly fee. Only if they
collect.
-----Original Message -----
Front Orosm, Gloria
Sent: Wednesday, September 25, 2002 8:29 AM
To: Valenzuela, Martha
Subject: RE: Agreement
the first question i need to ask is what this will be costing the city?
-----Original Message -----
From: Valenzuela, Martha
Sent: Wednesday, September 25, 2002 8:16 AM
To: Orosco, Gloria
Subject: Agreement
We are going to be contracting with J.J. Mac Intyre Co., Inc. for the collection of our past due invoices
that we have tried collecting but have gotten nowhere. Bruce has already signed the agreement, do you
need a copy of it? I only have one original that I need to mail to the company. Also can we start using
their services now or do we have to wait for Council approval? Please advise. Thank you.