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Resolution No. 91491 PA 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 9149 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A PERSONAL CONTACT SERVICE AGREEMENT AND TWO REVENUE RETENTION PROGRAM SERVICE AGREEMENTS BY AND BETWEEN THE CITY OF VERNON AND NCO FINANCIAL SYSTEMS, INC. FOR COLLECTION SERVICES WHEREAS, the Risk Management, Finance and Customer Service divisions of the City Administration/City Clerk Department have determined that they need the services of a collection agency to provide debt collection services for past due utility accounts, Ilaccount receivable accounts and property damage claims that have 11accumulated; and WHEREAS, the collection of these delinquent accounts is a Mime -consuming process that Risk Management, Finance and Customer Service are not staffed to handle; and WHEREAS, the City desires to use the services of NCO to provide debt collection services for past due utility accounts, account receivable accounts and property damage claims; and WHEREAS, NCO has provided the City with one Revenue Retention Program Service Agreement for past due utility accounts, one Revenue Retention Program Service Agreement for past due accounts receivable accounts and one Personal Contact Service Agreement for past due property damage claims to memorialize the terms and conditions of its collection agency services; and WHEREAS, the City has determined that NCO possesses the technical knowledge and expertise to furnish the collection services; and WHEREAS, the Acting Risk Manager has recommended that 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 agreement be approved and executed with NCO to perform the 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 enter into an agreement with NCO. 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 approves the one Personal Contact Service Agreement and two Revenue Retention Program Service Agreements with NCO, in substantially the same forms as the copies which are attached hereto as Exhibit A and incorporated by reference. SECTION 3: The City Council of the City of Vernon hereby authorizes the Acting Risk Manager to execute the Personal Contact Service Agreement and the Director of Personnel/Purchasing Agent/Finance Officer Manager to execute the two Revenue Retention Program Service Agreements for, and on behalf of, the City of Vernon. SECTION 4: The City Council of the City of Vernon hereby authorizes the Acting City Clerk, or his designee, to make whatever nonsubstantive, administrative and/or text changes, upon advice of counsel, to the Agreements. - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 5: The City Council of the City of Vernon hereby directs the Acting City Clerk, or his designee, to send three fully executed Agreements to: NCO Financial Systems, Inc. Attn. Tom Speiss, Vice President, Western Division 7700 Irvine Center Drive, Suite 800 Irvine, CA 92618 SECTION 6: The Acting 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 18th day of October, 2006. ATTES BRUCE V. LKENHORST, JR. Acting City Clerk r r. LEONIS C. MAL RG, flayor 11 - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 9149, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Wednesday, October 18, 2006, and thereafter was duly signed by the Mayor of the City of Vernon. 1117 (SEAL) BRUCkj. MALKENHORST, JR. Acting City Clerk - 4 - EXHIBIT A >NCor NCO RECEIVABLES MANAGEMENT SOLUTIONS A Service of NCO Financial Systems, Inc. (NCO) Norcross #4 • P.O. Box 73938 • Cleveland, OH 44193. 877-827-5672 El MAIL SYSTEMS(S) SYSTEM NUMBER New Ej Reorder ❑ Rewrite ❑ Online Svc. DATE_,h BUSINESS TYPE DESCRIPTION SIC CODE CREDITOR NAME (2 f YY Or V BRA' ADDRESS A�30 6_ ;54IJi—A E,6i A1/4 CITY STATE GA ZIPg0o�� PHONEi1 FAx EMAIL (Required for Online S PJ A S A K/a a i . � 1, 2 1r and . r'A V PRINT NAME OF SYSTEM ACTIVATORS PER SYSTEM � CO FULL SYSTEM PRICE U_ 14 43 SALES TAX CbselRetum Repot (E 50 per system) ❑ P.O. ❑Revenue Retention J AMOUNT V��� VariableCreddors o Medical RECEIVED V Ej.Spanish CS Any account completing the PCs Program's Primary Phase (approximately 120 days of pursuit) uncollected, will automatically be transferred to NCO's Seca Contingent Recovery Department (SCRD) for complete workout collection service (including litigation, when warranted) as a second placement. SCRD will tarred accounts in accordance with the terms and conditions stated herein and on the reverse side of this agreement. (•K;Iient/Creditor maintains a right to decline assignmen fen to SCRD on all accounts, for thirty (30) days from the a.v r Y� Ceth Must - or - Notice of Transfer date, which is sent after the PCS "�c or accou is submitted t NCO less than Hued Below) Initial Progrem's Primary Phase is completed. • months past due since last payment Client Must Initial Optional Settlement Authority-NCO's SCRD collectors are authorized to settle accounts for the percentage indicated of the amounts due if n NO necessary to effect a collection during the Secondary Phase. This authority will only be used when necessary and collectors will always v attempt to get payments in full if possible. 25% Client NO Must In accordance with the Federal Fair Debt Collection Practices Act you must indicate for consumer collections whether you will litigate if needed Initial REMARKS Client Initials Assn. Comp. If Client qualifies for an introductory system, Client YES N( Debt Type AV. Acct. Age Please ln' ial YES N� must indicate if this system includes the ACA Moneyback Guarantee. Creditor's Assn. Assn. No. AUTHORIZATION: Client/creditor authorizes NCO to provide collection service fully on each account submitted. If transfer to the Secondary Phase -Secondary Contingent Recovery Department (SCRD} is elected, the Client authorizes NCO to negotiate, secure, and process payments on submitted accounts and forward recovered funds monthly net of contingent collection fees in accordance with the Contingent Fee Schedule detailed above. The Primary Phase service has no time Omit so long as the com- puter maintenance fee of E1OO.O0 iei`eriirTted at the -end W each 24 month;period, following the date of purchase. The $emndary Phase service (SCRD) has no time limit. All payments and arrangements must be communicated directly to NCO. Coilection forms, services and procedures may be changed from time to time due to applicability, availability. and/or to comply with state and federal regulations. (Wisconsin only- On all consumer accounts, we recognize the requirement to forward fifteen (15) day Right ro Cure Notice when full payment is requested on installment accounts prior to forwarding for conecuons.) have read the reverse ide of trils ag nt and fully understand the terms and conditions of the services performed and the guarantee. This written agreement constitute he anti a me between the s and cannot be changed except in writing signed bd e parties. Signed by Client PRIMARY REP "' �' SS u r Ili1 LilfilP� 7 rTerv�► / ___ SECONDARY REP (O o 46 • Paid Ck Date MBG Y / NI E Activator Attached: Y / N • Date Roe. BY Misc. Paid Sales Tax/Report Remarks CgR Y / N ® 2005 NCO ALL RIGHTS RESERVED Please print dearly on tiro surface. crass amwy- you are wrsmg frown —pwa: ACA MEMBERSHIP This system entitles you to membership in the American Creditors Association (ACA) and all credit assurance services provided. Members will be furnished with a membership certificate (upon request), comprehensive activity reports, and the NRC auditing letter. Members are also entitled to the Moneyback Guarantee on systems with quantities of 100 to 1,000 accounts, as stated below (unless declined on the reverse side of this agreement.) TERMS AND CONDITIONS OF THE PERSONAL CONTACT PROGRAM'S PRIMARY PHASE MONEYBACK GUARANTEE FOR 'N' AND 'R' SYSTEMS* NCO guarantees that, during the program's Primary Phase, you will receive three times (300%) your paid -in -full price for qualifying systems of 100 to 1,000 accounts. as covered by the Service Agreement and in compliance with the temps and conditions b9IW through the complete use of the system. Or NCO will, at its option, (1) provide a full refund on the system's purchase price, or (2) refund the cash difference between amount collected and three times the system price invested. This 300% amount will be determined by totalling the stop service notices which are required as a result of cash collections, rewritten contracts, installment agreements, notes, returned merchandise, and/or settlements made with your debtors. Application for refund may be made 120 days after the date NCO receives the last of all qualifying (as defined below) original or replacement activators covered by the Service Agreement. The total of the originally submitted amounts on all stopped -service activators will be credited to the guarantee. To be eligible for a refund, you must have paid the total system price in full for a system of 100 to 1,000 accounts and paid the $50 annual computer maintenance fees when due to prevent system expiration, and also, complied with all the terms and conditions herein and on the reverse side of this Service Agreement. If the system is allowed to expire, this guarantee is null and void. Furthermore, you must furnish NCO qualifying accounts equal to the total number of activators in this system. NCO reserves the right to verify your eligibility for refund. If, upon application, you are determined to be ineligible for a refund, NCO will continue working more accounts for free until the 300% return is achieved. Qualifying accounts are those which are (1) existing persons or companies, who (2) legally owe you at least five times NCO's fee per activator, that are not contested, and are also (3) contactable by mail and/or phone through information furnished by you. Furthermore, accounts will not quality where prior legal action was taken or accounts where judgements have been obtained, bankruptcies, and accounts which are past due 12 months since last payment or charge. SPECIAL TERMS AND CONDITIONS OF THE PERSONAL CONTACT PROGRAM AND ITS EXECUTIVE GUARANTEE FOR 'N' SYSTEMS If Client has purchased a PCS system (as designated on the reverse side of this Service Agreement), NCO will provide the services of professional collector, who will make payment demands during the Personal Contact Program's Primary Phase, to accelerate cash flow and improve effectiveness. They will direct all payments to NCO for processing and administration. NCO will then remit a monthly check for all payments with a comprehensive debtor transaction report. NCO will also provide status reports to credit bureaus nationally (except in Massachusetts) on all debtors assigned with the PCS Program. Furthermore, in addition to the Moneyback Guarantee above, NCO guarantees 100% collection on this service, i.e., if any account goes through the program's Primary Phase and no payment is received, a replacement activator will be issued upon request without charge. NCO will repeat this process up to three times, if necessary, or until collections are achieved on 100% of the system's activators. SECONDARY CONTINGENT RECOVERY DEPARTMENT (SCRD) SECONDARY PHASE TERMS AND CONDITIONS If Client has provided SCRD Transfer Authorization on the reverse side of this agreement, any account completing the PCS Program's Primary Phase (approximately 120 days of pursuit) uncollected, will automatically be transferred to NCO's Secondary Contingent Recovery Department (SCRD) for complete workout collection service (including litigation, when warranted) as a second placement. SCRD will service transferred accounts in accordance with the terms and conditions stated herein and on the reverse side of this agreement. After the PCS Program's Primary Phase is completed, a SCRD Transfer of Assignment Notice will be sent by NCO to Client on all uncollected accounts. Unless Client exercises their right to decline assignment to SCRD within 30 days from the notice of transfer date, Client agrees that transfer to the PCS Program's Secondary Phase (SCRD) will automatically occur and the following terms will become effective. Revenue Retention accounts referred by Client which are 150 days or greater delinquent shall be placed in the Secondary Contingent Recovery Department "SCRD" where Agency will institute its collection efforts immediately and use its best efforts to collect the account. Date of delinquency shall be determined from information provided by Client and an account will only be referred directly to SCRD if the "date last paid' or the 'date of delinquency" are 150 days or greater. The accounts placed directly into SCRD will be exempt from determining the number of pre -pay accounts remaining and guarantee calculations. SCRD will process all debtor payments and remit a check (less collection fees charged as specified) to Client, together with a statement detailing all transactions processed, each 'month. Client agrees that NCO may deduct its collection fees from debtor payments, including those collections paid directly to Client, and will notify NCO immediately of all payments received. NCO is entitled to full commissions on all monies recovered, whether paid to SCRD or directly to Client. For returned merchandise, the applicable contingent fee will only be charged on one-half the amount credited to the particular debtor's account. Client authorizes NCO to endorse and deposit to its trust account any and all remittances received from debtors made payable to Client. NCO will notify Client for approval prior to forwarding any account to a collection attorney. When litigation is warranted, NCO will advance all costs associated with this filing of legal action on approved accounts and as prescribed by law, NCO will be reimbursed for such costs from the first monies recovered. Client expressly authorizes NCO to offset any fees owed by Client to NCO against any debtor payments received on Client accounts after 60 days of non-payment. ADDITIONAL TERMS AND CONDITIONS Client agrees that the, assignment period for any account forwarded to NCO will not expire unless nine consecutive months have elapsed without payment. Assignments on accounts forwarded to an attorney shall not expire until the attorney has completed all collection efforts. No account may be recalled during the assignment period. A Close and Return report will be provided if Client has purchased this optional report as indicated on the reverse side of this agreement. If an account is withdrawn within nine months of entry, NCO shall be entitled to its regular commission on amounts collected to date, or promised to be paid by the debtor to date, and fifteen percent (15%) of any amounts remaining. NCO agrees to comply with all provisions of the Fair Debt Collection Practices Act ("FDCPA") and applicable state statutes in connection with the collection of delinquent consumer debts. In connection with the collection of delinquent consumer debts, the FDCPA requires that NCO provide the consumer with verification of the underlying obligation, if the consumer request is made to NCO, in writing, within 30 days of our initial communication with the consumer. The law prohibits NCO from collecting on any obligation once a verification request is made to NCO from the consumer, until NCO has mailed said verification to the consumer. Client acknowledges that in any situation in which it does not provide NCO with the requested verification. NCO can no longer legally attempt to collect the account. Client hereby warrants and guarantees that the information furnished to NCO including but not limited to the identity of the debtor, any information about the debtor, the debtors eligibility for repayment exemption, the balance of the account and the payments and credits due, shall be accurate. NCO shall have no obligation to indemnify or hold Client harmless in the event of error In such information. Client agrees to indemnify NCO, its officers, directors, servants and agents and to hold NCO harmless from and against all damage, cost, loss and expense, including reasonable attorneys fees resulting from errors or omissions in connection with such information furnished by Client to NCO or actions that may arise out of the acts of the agents or employees of Client. The indemnities provided for herein shall survive the termination of this agreement NCO hereby expressly disclaims responsibility for lost profits or for any other damages whether special, incidental or consequential. This agreement shall be construed, governed and enforced in accordance with the laws of NCO and Client agree that any dispute relating to the interpretation of this agreement shall be resolved by binding arbitration. There shall be no appeal from any arbitration decision. If the parties cannot agree upon an arbitration procedure, then one arbiter will be chosen pursuant to the American Arbitration Association Rules of Commercial Arbitration. Any arbitration hearing will be held in kaiiiioW This agreement constitutes the entire agreement between the parties and cannot be modified or amended except with the written consent of both parties. . GENERAL TERMS AND CONDITIONS Accounts referred by Client, which are less than 150 days delinquent shall be plaoed In,the Primary Phase Collection program where Agency shall Institute is collection efforts immediately and use its best efforts to collect the account within the next 120 days. Date of aefinquency shall be detemdrmed from information provided by client. If either the "date last paid" or the "date of delinquency' as provided by Client is less than 150 days, the Account shall be placed in the Primary Phase collection program. Placement of accounts into the Primary Phase has no time limit so long as the computer maintenance fee of $100.00 is remitted at the end of each twenty-four (24) month period following the date of pur- chase. All payments and arrangements made by customers directly with Client must immediately be reported to Agency. TERMS AND CONDITIONS OF THE PROGRAM'S PRIMARY PHASE MONEYBACK GUARANTEE FOR `N' AND 'R' SYSTEMS* NCO guarantees that during the program's Primary Phase, you will receive three times (300%) your paid -in -full system price for qualifying systems of 100 to 1.000 accounts. as covered by the Service Agreement and In compliance with the terms and conditions beko% through the complete use of the system. Or NCO will, at is option. (1) provide a full refund on the system's purchase price, or (2) refund the cash difference between the amount collected and three times the system price invested. This 300% amount will be determined by totalling the stop service notices which are required as a result of cash collections, rewritten contracts, installment agreements, notes, returned merchandise, and/or settlements made with your debtors. Application for refund may be made 120 days after the date NCO receives the last of all qualifying (as defined below) original or replacement activators covered by the Service Agreement. The total of the originally submitted amounts on all stopped -service activators will be credited to the guarantee. To be eligible for a refund, you must have paid the total system price in full for a system of 100 to 1,000 accounts and paid the computer maintenance fees when due to prevent system expiration, and also, complied with all the terms and conditions herein and on the reverse side of this Service Agreement. if the system Is allowed to expire, this guarantee is full and void. Furthermore, you must furnish NCO qualifying accounts equal to the total number of activators in this system. NCO reserves the right to verify your eligibility for refund. If, upon application, you are determined to be ineligible for a refund, NCO will continue working more accounts for free until the 300% return is achieved. Qualifying accounts are those which are (1) existing persons or companies, who (2) legally owe you at least five times NCO's fee per activator, that are not contested, and are also (3) contactable by mail and/or phone through information furnished by you. Furthermore, accounts will not qualify where prior legal action was taken or accounts where judgements have been obtained, bankruptcies, and accounts which are past due 12 months since last payment or charge. This written guarantee constitutes the entire guarantee agreement between the parties and cannot be changed except in writing by the parties. SPECIAL TERMS AND CONDITIONS OF THE CAPP AND MCS PROGRAMS AND THEIR EXCLUSIVE EXECUTIVE GUARANTEE FOR W AND `R' SYSTEMS If Client has purchased a CAPP or MCS system (as designated on the reverse side of this Service Agreement), NCO will provide the services of professional collectors, who will make payment demands during the Program's Primary Phase, to accelerate cash flow and Improve effectiveness. They will direct all payments to NCO fox processing and administration. NCO will then remit a monthly check for all payments with a comprehensive debtor transaction report. NCO will report to national credit bureaus only on accounts assigned to the program's Secondary Phase (SCRD) where the client (CREDITOR) has provided accurate payment information including, but not limited to, the date of delinquency. NCO wig exclude reporting on all debtors who reside in the state of Massachusetts and any other state which, in NCO's sole opinion, restricts such reporting. Furthermore, in addition to the Moneyback Guarantee above. NCO guarantees 100% collection on this service, i.e., if any account goes through the program's Primary Phase and no payment is received, a replacement activator will be issued upon request without charge. NCO will repeat this process up to three times, if necessary, or until collections are achieved on 100% of the system's activators. SECONDARY CONTINGENT RECOVERY DEPARTMENT (SCRD) SECONDARY PHASE TERMS AND CONDITIONS If Client has provided SCRD Transfer Authorization on the reverse side of this agreement, any account completing the Program's Primary Phase (approximately 120 days of pursuit) uncollected, will automatically be transferred to NCO's Secondary Contingent Recovery Department (SCRD) for complete workout collection service (including litigation, when warranted, at NCO's expense) as a second placement. SCRD will service transferred accounts in accordance with the terms and conditions stated herein and on the reverse side of this agreement. After the Program's Primary Phase is completed, a SCRD Transfer of Assignment Notice will be sent by NCO to Client on all uncollected accounts. Unless Client exercises their right to decline assignment to SCRD within 30 days from the notice of transfer date, Client agrees that transfer to the Program's Secondary Phase (SCRD) will automatically occur and the following terms will become effective. Accounts referred by Client which are 150 days or greater delinquent shall be placed in the Secondary Contingent Recovery Department'SCRD" where Agency will institute its collection efforts immediately and use its best efforts to collect the account. Date of delinquency shall be determined from information provided by Client and an account will only be referred directly to SCRD if the "date last paid" or the 'date of delinquency' are 160 days or greater. The accounts placed directly into SCRD will be exempt from determining the num- ber of pre -pay accounts remaining and guarantee calculations. SCRO will process all debtor payments and remit a check (less collection fees charged as specified) to Client, together with a statement detailing all transactions processed, each month. Client agrees that NCO may deduct its collection fees from debtor payments, including those collections paid directly to Cliient, and will notify NCO immediately of all payments received. NCO Is entitled to full commissions on all monies recovered, whether paid to SCRD or directly to Client. Client further agrees to the SCRD Standard Contingent Fee Schedule as detailed on the reverse side of this Service Agreement. in accordance with the Fee schedule, NCO will also charge a 50°k fee on accounts forwarded to a collection attorney for litigation, skips/mail returns (which will automatically be accelerated through cycle for transfer to SCRD), accounts with balances less than $100, NSF checks, accounts past due over twelve (12) months since last payment or lacking a last payment date on the activator, and accounts previously worked by another collection agency (second placements). For returned merchandise, the applicable contingent fee will only be charged on one-half the amount credited to the particular debtor's account. Client authorizes NCO to endorse and deposit to Its trust account any and all remittances received from debtors made payable to Client. NCO will notify, Client for approval prior to forwarding any account to a collection attorney. When litigation is warranted, NCO will advance all costs associated with this filing of legal action on approved accounts and as prescribed by law. NCO will be reimbursed for such costs from the first monies recovered. Client expressly authorizes NCO to offset any fees owed by Client to NCO against any debtor payments received on Client accounts after 60 days of non-payment. ADDITIONAL TERMS AND CONDITIONS Client agrees that the assignment period for any account forwarded to NCO will not expire unless nine consecutive months have elapsed without payment. Assignments on accounts forwarded to an attorney shall not expire until the attorney has completed all collection efforts. No account may be recalled during the assignment period. A Close and Return report will be provided if Client has purchased this optional report as indicated on the reverse side of this agreement. If an account is withdrawn within nine months of entry, NCO shall be entitled to its regular commission on amounts collected to date, or promised to be paid by the debtor to date, and fifteen percent (15%) of any amounts remaining. NCO agrees to comply with all provisions of the Fair Debt Collection Practices Act ("FDCPA") and applicable state statutes in connection with the collection of delinquent consumer debts. In connection with the collection of delinquent consumer debts, the FDCPA requires that NCO provide the consumer with verification of the underlying obligation, if the consumer request is made to NCO, In writing, within 30 days of our initial communication with the consumer. The law prohibits NCO from collecting on any obligation once a verification request is made to NCO from the consumer, until NCO has mailed said verification to the consumer. Client acknowledges that in any situation in which it does not provide NCO with the requested verification, NCO can no longer legally attempt to collect the account. Client hereby warrants and guarantees that the Information furnished to NCO including but not limited to the identity of the debtor, any information about the debtor, the debtor's eligibility for repayment exemption, the balance of the account and the payments and credits due, shall be accurate. NCO shall have no obligation to indemnify or hold Client harmless in the event of error in such information. Client agrees to indemnify NCO, its officers, directors, servants and agents and to hold NCO harmless from and against all damage, cost, loss and expense, including reasonable attorney's fees resulting from errors or omissions in connection with such information furnished by Client to NCO or actions that may arise out of the acts of the agents or employees of Client. The indemnities provided for herein shall survive the termination of this agreement. NCO hereby expressly disclaims responsibility for lost profits or for any other damages whether special, incidental or consequential. This agreement shag be construed, governed and enforced in accordance with the laws of NCO and Client agree that any dispute relating to the Interpretation of this agreement shag be resolved by binding arbitration. There shag any be no appeal from arbitratlon decision. If the parties cannot agree upon an arbitration procedure. then one arbiter will be chosen pursuant to the American Arbitration Association Rules of Commercial Arbitration. Any arbitration hearing will be held In 4hajQW1. This agreement constitutes the entire agreement between the parties and cannot be modified or amended except with the written consent of both parties. 02005 NCO, ALL RIGHTS RESERVED : . REVENUE RETENTION PROGRAM SERVICE AGREEMENT 4VA>NCor NCO RECEIVABLES MANAGEMENT SOLUTIONS ReNvOhMsnpwmt s.roR... A Service of NCO Financial Systems, Inc. (NCO) Norcross #4 • P.O. Box 73938 - Cleveland, OH 44193 • 877-827-5672 ❑ MAIL SYSTEMS(S) SYSTEM NUMBER ' [3New % [3 Reorder ❑ Rewrite ❑ Online Svc. DATE BUSINESS TYPE DESCRIPTION l 1 A '�' 0 SIC CQQE CREDITOR b ADDRESS j_`�` 3 0 5-- ✓j� �%1 r A K t/ i �t `� CITY � I'm ry STATE EMAIL (Required for Online PRINT NAME OF SYSTE C' AW-Otkih (C_u1jb Qom, e, 11Q_ - ZIP PHONE FAX 3 23' 8U- 1432 ACTIVATORS ffll SALES PRIMARY PHASE SrP,.Vt(7r PER SYSTEM V TAx �!�/ ❑Tax F�cempt # FULL SYSTEM AMOUNT � ❑[3 SCRD Only Medical ❑ CS PRICE O 'a RECEIVED NEU Spanish ❑variable creditors SECONDARY PHASESERVICE I SECONDARY CONTINGENT RECOVERY DEPARTIMEINT (SCRD) I TRANSFER AUTHORIZATION Any account completing the Program's Primary Phase (approximately 120 days of pursuit) uncollected, will automatically be transferred to NCO's Secondary Contingent Recovery Department (SCRD) for complete workout collection service (including litigation, when warranted) as a second placement. SCRD will service tra s ed accounts in accordance with the terms and conditions stated herein and on the reverse side of this agreement. • "l—ent/Creditor maintains a right to decline assignmen must s to SCRD on all accounts, for thirty (30) days from the or - Notice of Transfer date, which is sent after the For accounts submitted to NCO less than (Continued Below) ln/tial Program's Primary Phase is completed. • months past due since last payment at Settlement Authority-NCO's SCRD collectors are authorized to settle accounts 3W for the percentage indicated of the amounts due if necessary to effect NO a collection during the Secondary Phase. This authority will only be used when necessary and collectors will always attempt to get r nt MusPinft/al payments in full if possible. 50% Client ISNO or ease provide e options on minis ra von Must Payment Processing services included with CAPP and MCS in accordance Initial u rr, tr,e in, —...A ,.,,..ARi— ctetnA ,,.. e.e .e.,e iae ,.r tr.re ­...e.,t For accounts submitted to NCO more than (Continued Below) months past due since last payment (See Reverse Act you must indicate for consumer collec- REMARKS Debt Type Assn. co n� YP Av. Acct. Age Please I ' i YES I O ��) e Creditor's Assn. Assn. No iJ D "' t1 d, f- om wo of 1 p�c,DU AUTHORIZATION: Client/creditor authorizes NCO to provide collection service fully on each account submitted. If transfer to the Secondary Phase -Secondary Contingent Recovery Department (SCRD} is elected, the Client authorizessecure and process payments on submitted accounts and forward recovered funds monthly net of contingent_ _ PrimaryPhaseservicehas no time limk so long as the compuler maintenance fee of $ Phae service (SCRD) has no time limit. All payments and arrangemen rca ed directly to jqft' ervices a ce ures may anged from time to time due to applicability, availability, and/or to comply with state and federal regulations. (Wisconsin only- On all consumer accounts, we recognize the requirement to forward fifteen (15) day Right To Cure Notice when full payment is requested on installment accounts prior to forwarding for collections.) I have read the reverse side of this agreement and fully understand the terms and conditions of the services pe or an the guava tee. Th wrttten agreement. constitutes the entire agreement between the parties and cannot be changed except in writing signe by he parties. Signed by Cli - PRIMARY REP y me u SECONDARY R Print Name 66i NiThe r • CDD/ o Paid Ck Date MBG Y / N / E Activator Attached: Y:-N• ME Date Rec. By Misc. Paid Sales Tax/Re Remarks CBR Y / N Please print clearty on hard surface. Press firmly- you are wrifing through 3 copiasl 0 2005 NCO ALL RIGHTS RESERVED ANCjg NCO RECEIVABLES MANAGEMENT SOLUTIONS R•••M.W. M•••s.1 ts•lw••s A Service of NCO Financial Systems, Inc. (NCO) Norcross #4 • P.O. Box 73938 - Cleveland, OH 44193 • 877-827-5672 ❑ MAIL SYSTEMS(S) SYSTEM BUSINESS TYPE DESCRIPTION CREDITOR NAME ADDRESS 3 CITYy4u t 1/ 0 EMAIL (Required for Online PRINT NAME OF SYSTEM b) Ca Wt 6,yo Iws F-e, P. STATE `mil I ZIP (n A i�, 1 A b aR li ❑ Rewrite ❑ Online Svc. DATE_ SIC'CODE T6R ta) )A CvS�U W.a f q� PHONE ONE 3 2,?- 3 U gull FAX 3 13 r 0 2-1 (I - UJ- ,10ilbo.L ART, ACTIVATORS ,\ SALES y, , PER SYSTEM (� TAX ❑Tax Exempt # FULL SYSTEM ® AMOUNT a�mini ❑SCRD Only ❑ Medical PRICE �� D RECEIVED 2 Z ®� ❑ CS ❑Spanish ❑ Variable Creditors SECONI)ARY PHASE SERVICE I ST`,C0NT)AftY CONTINGENT RECOX'ERY DEPARTMENT (SCRD) I TRANSI,'Elt Au'll"O UZATION; Any account completing the Program's Primary -Phase (approximately 120 days of pursuit) uncollected, will automatically be transferred to NCO's Secondary Contingent Recovery Department (SCRD) for complete workout collection service (including litigation, when warranted) as a second placement. SCRD will service transferred accounts in accordance with the terms and conditions stated herein and on the reverse side of this agreement. (')Ciient/Creditor maintains a right to decline assignmen n ' to SCRD on all accounts, for thirty (30) days from the ust - or- Notice of Transfer date, which is sent after the For accounts submitted to NCO less than (Continued Below) Initial Program's Primary Phase is completed. % • months past due since last payment L Optional Settlement Authority. NCO's SCRD collectors are authorized to settle accounts for the percentage indicated of the amounts due if necessary to effect NO a collection during the Secondary Phase. This authority will only be used when necessary and collectors will always attempt to get re Must Initial payments in full if possible. t 0 a. I For accounts submitted to NCO more than (Continued Below) months past due since last payment (See Reverse Side) 1111111411 am if t 50% Clie 7with or - ease provide e options Collection Administration Cl1e O n accordance witha era " arr o e ron Mu ent Processing services included with CAPP and MCS in accordance Mu Practices Act you must indicate for consumer collec- Initie e terms and conditions stated on the reverse side of this a regiment. Initial tions whether you will litigate if needed. REMARKS £ , � 1 lJ d vAq,,C Q (', v x +on, ct, I tk CO S I Z-5*�' AQr- 04� . rilV ofca. k) LA lmee 6F sVS,4Gai ru wre rvumm wnen run payment is requesteu on ror I agreement constitutes the entire agreement between the parties and cannot be changed except in writing signed by the parties. Signed by Cli 121W — PRIMARY REP ` D SECONDARY Print Name ss • CDD/ Paid Ck Date , MSG Y / N / E Activator Attached:' Y / N • _ I Date Rec. By Misc. Paid Sales Tax/Report Remarks CBR Y / N Pbam nnnl rbaAv nn hard cnfiro Drees firmhi_ vrunre arririnn rhmunF mniee/ 0 2005 NCO ALL RIGHTS RESERVED GENERAL TERMS AND CONDITIONS Accounts re4 tred-by Client, which are less than 150 days delinquent shall be, pladad Ln ttme Primary Phase Collection program where Agency ship kmsWe its collection efforts immediately and use its best efforts to collect the account within the next 120 days. Date of delinquency shall be determined from information provided by Client. Kerber the "date last paid" or the 'date of delinquency' as provided by Client is less than 150 days, the Account shad be placed in the Primary Phase collection program. Placement of accounts into the Primary Phase has no time limit so long as the computer maintenance fee of $100.00 is remitted at the end of each twenty-four (24) month period following the date of pur- chase. All payments and arrangements made by customers directly with Client must immediately be reported to Agency. TERMS AND CONDITIONS OF THE PROGRAM'S PRIMARY PHASE MONEYBACK GUARANTEE FOR 'N' AND 'R' SYSTEMS" NCO guarantees that during the program's Primary Phase, you will receive three times (300%) your paid4n4un system price for qualifying systems of 100 to 1,000 accounts, as covered by the Service Agreement and in compliance with the terns and conditions below, through the complete use of the system. Or NCO will, at is option. (1) provide a full refund on the system's purchase price, or (2) refund the cash difference between the amount collected and three times the system price invested. This 300% amount will be determined by totalling the stop service notices which are required as a result of cash collections, rewritten contracts, installment agreements, notes, returned merchandise. and/or settlements made with your debtors. Application for refund may be made 120 days after the date NCO receives the last of an qualifying (as defined below) original or replacement activators covered by the Service Agreement. The total of the originally submitted amounts on all stopped -service activators will be credited to the guarantee. To be eligible for a refund, you must have paid the total system price in full for a system of 100 to 1,000 accounts and paid the computer maintenance fees when due to prevent system expiration, and also, complied with all the terms and conditions herein and on the reverse side of this Service Agreement. If the system is allowed to expire, this guarantee is null and void. Furthermore, you must furnish NCO qualifying accounts equal to the total number of activators in this system. NCO reserves the right to verify your eligibility for refund. If, upon application, you are determined to be ineligible for a refund, NCO will continue working more accounts for free until the 300% return is achieved. Qualifying accounts are those which are (1) existing persons or companies, who (2) legally owe you at least five times NCO's fee per activator, that are not contested, and are also (3) contactable by mail and/or phone through information furnished by you. Furthermore, accounts will not qualify where prior legal action was taken or accounts where judgements have been obtained, bankruptcies, and accounts which are past due 12 months since last payment or charge. This written guarantee constitutes the entire guarantee agreement between the parties and cannot be changed except in writing by the parties. SPECIAL TERMS AND CONDITIONS OF THE CAPP AND MCS PROGRAMS AND THEIR EXCLUSIVE EXECUTIVE GUARANTEE FOR 'N' AND 'R' SYSTEMS If Client has purchased a CAPP or MCS system (as designated on the reverse side of this Service Agreement), NCO will provide the services of professional collectors, who will make payment demands during the Program's Primary Phase, to accelerate cash flow and improve effectiveness. They will direct all payments to NCO for processing and administration. NCO will then remit a monthly check for all payments with a comprehensive debtor transaction report. NCO will report to national credit bureaus only on accounts assigned to the programs Secondary Phase (SCRD) where the client (CREDITOR) has provided accurate payment information including, but not limited to, the date of delinquency. NCO will exclude reporting on all debtors who reside in the state of Massachusetts and any other state which, in NCO's sole opinion, restricts such reporting. Furthermore, in addition to the Moneyback Guarantee above, NCO guarantees 100% collection on this service, i.e., if any account goes through the programs Primary Phase and no payment is received, a replacement activator will be issued upon request without charge. NCO will repeat this process up to three times, if necessary, or until collections are achieved on 100% of the system's activators. SECONDARY CONTINGENT RECOVERY DEPARTMENT (SCRD) SECONDARY PHASE TERMS AND CONDITIONS If Client has provided SCRD Transfer Authorization on the reverse side of this agreement, any account complefxg the Program's Primary Phase (approximately 120 days of pursuit) uncollected, will automatically be transferred to NCO's Secondary Contingent Recovery Department (SCRD) for complete workout collection service (including litigation, when warranted, at NCO's expense) as a second placement. SCRD will service transferred accounts in accordance with the terms and conditions stated herein and on the reverse side of this agreement. After the Program's Primary Phase is completed, a SCRD Transfer of Assignment Notice will be sent by NCO to Client on all uncollected accounts. Unless Client exercises their right to decline assignment to SCRD within 30 days from the notice of transfer date, Client agrees that transfer to the Program's Secondary Phase (SCRD) will automatically occur and the following terms will become effective. Accounts referred by Client which are 150 days or greater delinquent shall be placed in the Secondary Contingent Recovery Department 'SCRD' where Agency will institute its collection efforts immediately and use its best efforts to collect the account. Date of delinquency shall be determined from information provided by Client and an account will only be referred directly to SCRD if the "date last paid" or the 'date of delinquency' are 150 days or greater. The accounts placed directly into SCRD will be exempt from determining the num- ber of pre -pay accounts remaining and guarantee calculations. SCRD will process all debtor payments and remit a check (less collection fees charged as specified) to Client, together with a statement detailing all transactions processed, each month. Client agrees that NCO may deduct its collection fees from debtor payments, including those collections paid directly to Client, and will notify NCO immediately of all payments received. NCO Is entitled to full commissions on all monies recovered, whether paid to SCRD or directly to Client. Client further agrees to the SCRD Standard Contingent Fee Schedule as detailed on the reverse side of this Service Agreement. in accordance with the Fee schedule, NCO will also charge a 50% fee on accounts forwarded to a collection attorney for litigation, skips/mail returns (which will automatically be accelerated through cycle for transfer to SCRD), accounts with balances less than $100, NSF checks, accounts past due over twelve (12) months since last payment or lacking a Last payment date on the activator, and accounts previously worked by another collection agency (second placements). For returned merchandise, the applicable contingent fee will only be charged on one-half the amount credited to the particular debtor's account. Client authorizes NCO to endorse and deposit to Its trust account any and all remittances received from debtors made payable to Client. NCO will notify Client for approval prior to forwarding any account to a collection attorney. When litigation is warranted, NCO will advance all costs associated with this filing of legal action on approved accounts and as prescribed by law, NCO will be reimbursed for such costs from the first monies recovered. Client expressly authorizes NCO to offset any fees awed by Client to NCO against any debtor payments received on Client accounts after 60 days of non-payment. ADDITIONAL TERMS AND CONDITIONS Client agrees that the assignment period for any account forwarded to NCO will not expire unless nine consecutive months have elapsed without payment. Assignments on accounts forwarded to an attorney shall not expire until the attorney has completed all collection efforts. No account may be recalled during the assignment period. A Close and Return report will be provided if Client has purchased this optional report as indicated on the reverse side of this agreement. If an account Is withdrawn within nine months of entry. NCO shall be entitled to its regular commission on amounts collected to date, or promised to be paid by the debtor to date, and fifteen percent (15%) of any amounts remaining. NCO agrees to comply with all provisions of the Fair Debt Collection Practices Act ("FDCPA") and applicable state statutes in connection with the collection of delinquent consumer debts. In connection with the collection of delinquent consumer debts, the FDCPA requires that NCO provide the consumer with verification of the underlying obligation, If the consumer request is made to NCO, in writing, within 30 days of our initial communication with the consumer. The law prohibits NCO from collecting on any obligation once a verification request is made to NCO from the consumer, until NCO has mailed said verification to the consumer. Client acknowledges that in any situation in which it does not provide NCO with the requested verification, NCO can no longer legally attempt to collect the account. Client hereby warrants and guarantees that the information fumished to NCO including but not limited to the identity of the debtor, any information about the debtor, the debtor's eligibility for repayment exemption, the balance of the account and the payments and credits due, shall be accurate. NCO shall have no obligation to indemnify or hold Client harmless in the event of error in such information. Client agrees to indemnify NCO, its officers, directors, servants and agents and to hold NCO harmless from and against all damage, cost, loss and expense, induding reasonable attorneys fees resulting from eras or omissions in connection with such information furnished by Client to NCO or actions that may arise out of the acts of the agents or employees of Client. The indemnities provided for herein shall survive the termination of this agreement. NCO hereby expressly disdaims responsibility for lost profits or for any other damages whether special, incidental or consequential. This agreement shall be construed, governed and enforced in accordance with the laws of -'--------.NCO and Client agree that any dispute relating to it* Interpretation of this agreement shall be resolved by binding arbitration. There shall be no appeal from any arbitration decision. H the parties cannot agree upon an arbitration procedure, then one arbiter will be chosen pursuant to the American Arbitration Association Rules of Commercial Arbitration. Any arbitration hearing will be held In $*sOn!"O This agreement constitutes the entire agreement between the parties and cannot be modified or amended except with the written consent of both parties. 02005 NCO, ALL RIGHTS RESERVED CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro-Tem WM. `BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL McCORMICK Councilman October 23, 2006 4305 Santa Fe Avenue, Vernon, California 90058 telephone (323) 583-8811 Mr. Tom Speiss Vice President, Western Division NCO Receivables Management Solutions NCO Financial Systems, Inc. 7700 Irvine Center Drive, Suite 800 Irvine, CA 92618 Re: Collection Services for Past Due Vernon Accounts Dear Mr. Speiss: SOL BENUDIZ Police Chief MARK C. WHITWORTH Acting Fire Chief LEWIS J. POZZEBON Director of Environmental Health S. KEVIN WILSON Director of Community Services SHARON L. DUCKWORTH Acting City Treasurer ll Lq U In accordance with City Council approval on October 18, 2006, enclosed please find for your records a copy of one signed Personal Contact Service Agreement and two signed Revenue Retention Program Service Agreements together with a check in the sum of $26,550.00 representing $2,250.00 for the 250 Utility Bill Account and $24,300.00 for the 100 Property Damage Claims Account. If you have any questions, please call me. y, ILIA D AMA HI 4incerel hief De y City Attorney/ Acting Risk Manager jl Enclosures: (3) Agreements and (1) Check cc: Bruce V. Malkenhorst, Jr., Acting City Clerk Martha Valenzuela, Director of Personnel/Purchasing Agent/Finance Officer Manager T'Nefugively jubug War Ila 3 L 3 L9 S1im is L 2 20O066 D: LL S9L.- L04EI 311' CITY OF VERNON • 4305 SANTA FE AVE. • VERNON, CALIFORNIA 90058-0805 VENDOR NO. VENDOR NAME DATE CHECK ISSUED CHECK NO. 11392 NCO FINANCIAL SYSTEMS, INC. 10/19/06 313195 CITY ACCOUNT NUMBER YOUR INV. NO. YOUR INV. DATE PAYMENT DESCRIPTION DISC. TAKEN NET AMT. PAID 011-500-1004-5962 COLLECTION SVCS. FOR DELINQUENT 2,250.00 UTILITY ACCOUNTS AND PROPERTY 011-500-1025-5962 DAMAGE CLAIMS 24,300.00 6,550.00 FILE DATE 11/01/06 WMJ This Agreement shall be governed by the laws of the State of California. The parties agree that any and all disputes arising out of or in relation to this Agreement, including without limitation any action in tort, shall be resolved exclusively, finally and conclusively by arbitration in Los Angeles County, California under the auspices of and pursuant to the rules of the Judicial Arbitration & Mediation Services Inc. (JAMS). Each parry will select an arbitrator. Those two arbitrators will then select a third. The three member panel will make the final decision. All decisions of the arbitrators shall be in writing, and the arbitrators shall provide written reasons for their decision. The arbitration decision shall be final and binding on the parties. Notwithstanding the foregoing, the parties shall be permitted to access the court system to enforce any arbitration award or to obtain injunctive relief. The exclusive jurisdiction and venue for any such action shall be the Superior Court of California, Los Angeles County. Any and all contracts between NCO Receivables Management Solutions and any subcontractor shall include the same arbitration clause. pi via im V� c� Q�3l�ec This Agreement shall be governed by the laws of the State of California. The parties agree that any and all disputes arising out of or in relation to this Agreement, including without limitation any action in tort, shall be resolved exclusively, finally and conclusively by arbitration in Los Angeles County, California under the auspices of and pursuant to the rules of the Judicial Arbitration & Mediation Services Inc. (JAMS). Each parry will select an arbitrator. Those two arbitrators will then select a third. The three member panel will make the final decision. All decisions of the arbitrators shall be in writing, and the arbitrators shall provide written reasons for their decision. The arbitration decision shall be final and binding on the parties. Notwithstanding the foregoing, the parties shall be permitted to access the court system to enforce any arbitration award or to obtain injunctive relief. The exclusive jurisdiction and venue for any such action shall be the Superior Court of California, Los Angeles County. Any and all contracts between NCO Receivables Management Solutions and any subcontractor shall include the same arbitration clause.