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Resolution No. 2013-026CONTRACTOR: C Ax lJ a —2 \!V ek"cm-9, CONTRACT PURPOSE: C-0L— _EL•cl nxrc l onapLyt t—E-s ON phc.'t 00 L G t -y t j-�ye p tvaed �u�To�a•. �I� S CONTRACT IS: ❑ FEDERAL ❑ PREVAILING WAGE X COMPETIVE SELECTION & NOTICED RFP ❑ COMPETITIVE & NOTICED LOW BID TOTAL CONTRACT VALUE: $ Charge Acet. No(s) S.Y. Amendment Value $ o Contract is an Amendment to Contract No. (if Applicable) RESPONSIBLE DEPARTMENT PERSON: SAVIELYZ UAL a=•z PHONE: X AUTHORIZATION: )(Approved by Council on 2— S t 3 (Check One) Resolution No.CO -•"L (if applicable) ❑ Approved by City Administrator on Note: Attach supporting documentation ❑Amendment Approved by (if applicable) ROUTING SEQUENCE: (Please Follow In Order — Do not use N/A) Initials Date (1) Responsible Department Person Checks substance of contract and assembles two (2) copies of Contract, required AA, insurance & bond documents, certifies compliance With Competitive Bidding and Purchasing Ordinance (2) Liability and Claims Approves insurance and sureties, if bonds required a/a1113 (3) Finance (Purchasing) j Checks compliance with Competitive Bidding & Living Wage Ordinances 2,- 7 I J And reflected in current budget )7 1 (4) City Attorney Approves contract as to form, verifies bonds and insurance included q ? (5) City Signatory Signs all copies on behalf of City (6) City Clerk Attests signatures, numbers, files contract, insurance, and bonds and returns duplicate original to responsible department for transmittal to contractor Rev. 02113 OFFICE OF THE CITY CLERK 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 February 28, 2013 Greg A. Cohen, President Caine & Weiner Company, Inc. 21210 Erwin Street Woodland Hills, CA 91367 Re: Services Agreement for the Collection of Past Due Receivables Dear Mr. Cohen: The insurance requirements have been met. Transmitted herewith is a fully executed original agreement, as referenced. above, approved by City Council on February 5, 2013, through Resolution No. 2013-26. If you have any questions regarding this matter, please call Mr. Carlos Fandino at 323/583-8811 ext. 834. Very truly yours, A4 1� J w ti orah R. Juarez Records Management Assistant Enclosure c: Carlos Fandino William Fox Teresa McAllister Purchasing Department Resolution No. 2013-26 Agreement File No. 13-010 Exclusively Industrial SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND CAINE & WEINER COMPANY, INC. FOR COLLECTION OF PAST DUE RECEIVABLES Contractor: Responsible Principal of Contractor: Notice Information - Contractor: Notice Information - City: Commencement Date: Termination Date: Consideration: Records Retention Period COVER PAGE Caine & Weiner Greg A. Cohen, President Caine & Weiner 21210 Erwin Street Woodland Hills, CA 91367 Attention: Greg A. Cohen Phone: (818) 251-1701 Facsimile. (818) 251-1751 City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Carlos Fandino, Director of Light & Power Telephone: (323) 583-8811 ext. 834 Facsimile: (323) 826-1408 February 5, 2013 February 5, 2016 20% of all monies recovered, as more particularly described in Exhibit C Three (3) years, pursuant to Section 9.19 SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND CAINE & WEINER COMPANY, INC. FOR COLLECTION OF PAST DUE RECEIVABLES THIS Contract is made between the City of Vernon ("City"), a California charter City and California municipal corporation ("City"), and Caine & Weiner Company, Inc., a California corporation ("Contractor"). The City and Contractor agree as follows: 1.0 EMPLOYMENT OF CONTRACTOR. City agrees to engage Contractor to perform the services as hereinafter set forth as authorized by the City Council on February 5, 2013. 2.0 SCOPE OF SERVICES. 2.1 Contractor shall perform all work necessary to complete the services set forth in the Request for Proposals dated September, 2012, Exhibit "A", and Contractor's proposal to the City ("Proposal') dated November 16, 2012, Exhibit "B", both of which are attached to and incorporated into this Contract, by reference. 2.2 All services shall be performed to the satisfaction of City. 2.3 All services shall be performed according to the standards then prevailing in the debt collection profession. 3.0 PERSONNEL. 3.1 Contractor represents that it employs, or will employ, at its own expense, all personnel required to perform the services under this Contract. 3.2 Contractor shall not subcontract any services to be performed by it under this Contract without prior written approval of City. 3.3 All of the services required hereunder will be performed by Contractor or by City -approved subcontractors. Contractor, and all personnel engaged in the work, shall be fully qualified and authorized or permitted under State and local law to perform such services and shall be subject to approval by the City. 4.0 TERM. The term of this Contract shall commence on February 5, 2013, and it shall continue until February 5, 2016, unless terminated at an earlier date pursuant to the 2 - December 2012 provisions thereof. 5.0 COMPENSATION AND FEES. 5.1 Contractor has established rates for the City of Vernon which are comparable to and do not exceed the best rates offered to other governmental entities in and around Los Angeles County for the same services. For satisfactory and timely performance of the services, the City will pay Contractor in accordance with the payment schedule set forth in Exhibit "C". 5.2 Contractor shall, at its sole cost and expense, furnish all necessary and incidental labor, material, supplies, facilities, equipment and transportation which may be required for furnishing services pursuant to this Contract. Materials shall be of the highest quality. The above Contract fee shall include all staff time and all clerical, administrative, overhead, insurance, reproduction, telephone, air travel, auto rental, subsistence, and all related costs and expenses. 6.0 PAYMENT. 6.1 Contractor shall remit to City all payments due to City based upon collections services provided on accounts assigned to Contractor and at the rates set forth in the Request for Proposal, Exhibit "C", along with a full accounting, within 30 days of receipt of each payment. 6.2 In the event that any payment is received directly by City on accounts which have been assigned to Contractor, City shall remit all payments due to Contractor, along with a full accounting, at the rates set forth in Contractor's response to the Request for Proposal, Exhibit "C", within 30 days of receipt of each payment. 6.3 City will pay Contractor for all direct payments within thirty (30) days after the City approves the invoice. 6.4 Contractor understands and agrees that invoices which lack sufficient detail to measure performance will be returned and not processed for payment. 6.5 Payment of such invoices shall be payment in full for all services, - 3 - December 2012 authorized costs and authorized extra work covered by that invoice. 7.0 CHANGE ORDERS. There is no change order authority provided in this Contract. 8.0 CITY'S RESPONSIBILITY. City shall cooperate with Contractor as may be reasonably necessary for Contractor to perform its services; and will give any required decisions - as promptly as practicable so as to avoid unreasonable delay in the progress of Contractor's services. 9.0 GENERAL TERMS AND CONDITIONS. 9.1 INDEPENDENT CONTRACTOR. 9.1.1 It is understood that in the performance of the services herein provided for, Contractor shall be, and is, an independent contractor, and is not an agent or employee of City and shall furnish such services in its own manner and method except as required by this Contract. Further, Contractor has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Contractor in the performance of the services hereunder. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 9.1.2 Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of the City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits. 9.2 CONTRACTOR NOT AGENT. Except as the City may authorize in writing, Contractor and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. - 4 - December 2012 9.3 OWNERSHIP OF WORK. All reports, drawings, plans, specifications, computer tapes, floppy disks and printouts, studies, memoranda, computation sheets and other documents prepared by Contractor in furtherance of the work shall be the sole property of City and shall be delivered to City whenever requested. Contractor shall keep such documents and materials on file and available for audit by the City for at least three (3) years after completion or earlier termination of this Contract. Contractor may make duplicate copies of such materials and documents for its own files or for such other purposes as may be authorized in writing by the City. 9.4 CORRECTION OF WORK. Contractor shall promptly correct any defective, inaccurate or incomplete tasks, deliverables, goods, services and other work, without additional cost to the City. The performance or acceptance of services fumished by Contractor shall not relieve the Contractor from the obligation to correct subsequently discovered defects, inaccuracy or incompleteness. 9.5 WAIVER. The City's waiver of any term, condition, breach or default of this Contract shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. 9.6 SUCCESSORS. This Contract shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, successors and/or assigns. 9.7 NO ASSIGNMENT. Contractor shall not assign or transfer this Contract or any rights hereunder without the prior written consent of the City and approval by the City Attorney, which may be withheld in the City's sole discretion. Any unauthorized assignment or transfer shall be null and void and shall constitute a material breach by the Contractor of its obligations under this Contract. No assignment shall release the original parties or otherwise constitute a novation. 9.8 COMPLIANCE WITH LAWS. Contractor shall comply with all Federal, State, County and City laws, ordinances, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof, including but without - 5- December 2012 limitation, the Vernon Living Wage Ordinance. Violation of any law material to performance of this Contract shall entitle the City to terminate the Contract and otherwise pursue its remedies. 9.9 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 9.10 INTERPRETATION. 9.10.1 Applicable Law. This Contract, and the rights and duties of the parties hereunder (both procedural and substantive), shall be governed by and construed according to the laws of the State of California. 9.10.2 Entire Agreement. This Contract, including any exhibits attached hereto, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 9.10.3 . Written Amendment. This Contract may only be changed by written amendment signed by Contractor and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council.. Any oral representations or modifications concerning this Contract shall be of no force or effect. 9.10.4 Severability. If any provision in this Contract is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Contract, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Contract. 9.10.5 Order of Precedence. In case of conflict between the terms of this Contract and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the terms of this Contract shall strictly prevail. The terms - 6 - - December 2012 of the City's Request for Proposals shall control over the Contractor's Proposal. 9.10.6 Choice of Forum. The parties hereby agree that this Contract is to be enforced in accordance with the laws of the State of California, is entered into and/or is to be performed in the City of Vernon and that all claims or controversies arising out of or related to performance under this Contract shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 9.10.7 Duplicate Originals. There shall be two (2) fully signed copies of this Contract, each of which shall be deemed an original. 9.11 TIME OF ESSENCE. Time is strictly of the essence of this contract and each and every covenant, term and provision hereof. 9.12 AUTHORITY OF CONTRACTOR. The Contractor hereby represents and warrants to the City that the Contractor has the right, power, legal capacity and authority to enter into and perform its obligations under this Contract, and its execution of this Contract has been duly authorized. 9.13 ARBITRATION OF DISPUTES. Any dispute for under $25,000 arising out of or relating to the negotiation, construction, performance, non-performance, breach or any other aspect of this Contract, shall be settled by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association at Los Angeles, California and judgment upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. The City does not waive its right to object to the timeliness or sufficiency of any claim filed or required to be filed against the City and reserves the right to conduct full discovery. 9.14 INDEMNITY. 9.14.1 Contractor agrees to indemnify, hold harmless.and defend (even if the allegations are false, fraudulent or groundless), to the maximum extent permitted by law, the City, its City Council and each member thereof, and its officers, employees, commission members and representatives, from any and all liability, loss, suits, 7 - December 2012 claims, damages, costs, judgments and expenses (including attorney's fees and costs of litigation) which in whole or in part result from, or arise out of, or are claimed to result from or to arise out of: A. any activity on or use of City's premises or facilities or any performance under this Contract; or B. any acts, errors or omissions (including, without limitation, professional negligence) of Contractor, its employees, representatives, subcontractors, or agents in connection with the performance of this Contract. 9,14.2 This agreement to indemnify includes, but is not limited to, personal injury (including death at any time) and property or other damage (including, but without limitation, contract or tort or patent, copyright, trade secret or trademark infringement) sustained by any person or persons (including, but not limited to, companies, or corporations, Contractor and its employees or agents, and members of the general public). The sole negligence or willful misconduct of City, its employees or agents other than Contractor or Contractor's subcontractors are excluded from this indemnity agreement. 9.15 INSURANCE. Contractor shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the Contract, including any extensions thereto. The policies shall state that they afford primary coverage. 9.15.1 Automobile Liability with minimum limits of at least $100,000/300,000/50,000 if written on a personal automobile liability form, for using a personal vehicle; or an amount of $500,000 including owned, hired, and non -owned liability coverage if written on a Commercial automobile liability form. 9.15.2 General Liability with minimum limits of at least $1.000,000 combined single limits written on an Insurance Services Office (ISO) Comprehensive General Liability "occurrence" form or its equivalent for coverage on an occurrence basis. - 8 - December 2012 Premises/Operations and Personal Injury coverage is required. The City of Vernon, its directors, commissioners, officers, employees, agents and volunteers must be endorsed on the policy as additional insureds as respects liability arising out of the Contractor's performance of this Contract. A. If Contractor employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Contractor may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. is applicable. B. Blanket Contractual Coverage if required. C. Products/Completed Operations coverage where such risk 9.15.3 Contractor shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. Compliance is accomplished in one of the following manners: A. Provide copy of permissive self-insurance certificate approved by the State of California; or Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a minimal limit of $1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its City Council, commissioners, officers, employees, and volunteers for losses arising from performance of this Contract; or C. Provide a "waiver" form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of this Contract. 9.15.4 Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. - 9 December 2012 of no less than B:VIII. 9.15.5 Insurance shall be placed with insurers with a Best's rating 9.15.6 Prior to commencement of performance, Contractor shall. furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies at any time. 9.15.7 Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Contractor shall immediately notify City and cease all performance under this Contract until further directed by the City. In the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Contractor by way of set-off or recoupment from sums due Contractor, at City's option; (b) immediately terminate this Contract; or (c) self insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Contractor, by way of set- off or recoupment from any sums due Contractor. 9.16 NOTICES. Any notice or demand to be given by one party to the other be given in writing and by personal delivery or prepaid first-class, registered or certified mail, addressed as follows. Notice simply to the City of Vernon or any other City department is not adequate notice. If to the City: City, of Vernon Attention: Carlos Fandino, Director of Light & Power 4305 Santa Fe Avenue Vernon, CA 90058 If to the Contractor: Caine & Weiner Attention: Greg A. Cohen 21210 Erwin Street Woodland Hills, CA 91367 - 10 - December 2012 Any such notice shall be deemed to have been given upon delivery, if personally delivered, or, if mailed, upon receipt or upon expiration of three (3) business days from the date of posting, whichever is earlier. Either party may change the address at which it desires to receive notice upon giving written notice of such request to the other party. 9.17 TERMINATION FOR CONVENIENCE (Without Cause). City may terminate this Contract in whole or in part at any time, for any cause or without cause, upon fifteen (15) calendar days' written notice to Contractor. If the Contract is thus terminated by City for reasons other than Contractor's failure to perform its obligations, City shall pay. Contractor a prorated amount based on the services satisfactorily completed and accepted prior to the effective date of termination. Such payment shall be Contractor's exclusive remedy for termination without cause. 9.18 DEFAULT. In the event either party materially defaults in its obligations hereunder, the other party may declare a default and terminate this Contract by written notice to the defaulting party. The notice shall specify the basis for the default. The Contract shall terminate unless such default is cured before the effective date of termination stated in such notice, which date shall be no sooner than ten (10) days after the date of the notice. Termination for cause shall relieve the terminating party of further liability or responsibility under this Contract, including the payment of money, except for payment for services satisfactorily and timely performed prior to the service of the notice of termination, and except for reimbursement of (1) any payments made by the City for service not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by the City in obtaining substitute performance. 9.19 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Contract and/or is paying only the amounts to which Contractor is properly entitled under the Contract or - 11 - December 2012 for other purposes relating to the Contract. The Contractor shall maintain and preserve all such records for a period of at least 3 years after termination of the Contract. The Contractor shall maintain all such records in the City of Vernon. If not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals and overhead. 9.20 CONFLICT. Contractor hereby represents, warrants and certifies that no member, officer or employee of the Contractor is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. 9.21 ENFORCEMENT OF WAGE AND HOUR LAWS. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon compensation for all hours worked in excess of 8 hours per day at not less than 1'/2 times the basic rate of pay. 9.22 LIVING WAGES. Contractor, or Subcontractor, if any, working on City service contracts of any amount, as to all employees spending time on City contracts shall observe the City's Living Wage Ordinance and all requirements thereof at all times on City contracts. The Current Living Wage Standards are set forth in Exhibit "D". Upon request, certified payroll shall be provided to the City. - 12 - December 2012 9.23 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Contractor certifies and represents that, during the performance of this Contract, it and any other parties with whom it may subcontract shall adhere to equal employment opportunity practices to assure that applicants, employees and recipients of service are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, sexual orientation or marital status. Contractor further certifies that it will not maintain any segregated facilities. Contractor further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit "E". [Signatures Begin on Next Page]. - 13 - December 2012 IN WITNESS WHEREOF, the Parties have signed this Agreement as of the date stated in the introductory clause. City of Vernon, a California charter City and California municipal corporation c William Davis, Mayor APPROV D S TO FORM: til0111 Nichola eorge Rodriguez, City Attorney Caine & Weiner Company, Inc., a California corporation By: Name: J�i�i. �, `►��L';,� Title: 'S�7ynbsrV'kL- P fe5. cAa„f - G 4oj2/'vk Cz,r^a 0 Name: Title: -14- December 2012 EXHIBIT A EXHIBIT A REQUEST FOR PROPOSALS December 2012 City of Vernon Request for Proposals (RFP) For the Function of Collection of Past Due Receivables o F vE EVE Y City of Vernon City Administrator's Office 4305 Santa Fe Avenue, Vernon Ca 90058 Phone: (323) 583-8811 September 2012 I. INTRODUCTION AND PROJECT The City of Vernon (City) is currently seeking Proposals from qualified business entities for the function of Collection of Past Due Receivables ("Collections"). The City will select a business entity which demonstrates proven capabilities of serving in handling collections. The proposers must should reflect a knowledge of current "best practices" in Collections, have demonstrated history of success in similar Collections, provide a proposed scope of work, and a proposed fee schedule, for an initial one-year period of rendering services with two renewal options of one year, in the sole discretion of the City Administrator. II. BACKGROUND The City of Vernon was founded in 1905, is approximately 5.2 square miles in size and is located approximately 5 miles southeast of downtown Los Angeles. California. Over its long history Vernon has been developed as an industrial community. At the turn of the 20'h century the lands that make up Vernon were comprised largely of farmlands. The presence of three major rail lines in the area led influential business men and property owners to encourage the railroad companies to run spur lines onto the farmlands. These rail extensions enabled the creation of an "exclusively industrial" city. By the 1920's Vernon was attracting large stockyards and meatpacking facilities. In the 1930's Vernon became the location of choice for many heavy industrial plants. As economic conditions changed over the decades, these large scale industrial operations have relocated out of Southern. California and Vernon has attracted smaller, lighter industrial facilities. The City's business friendly environment, low cost utilities and key location for trucking and rail transport continue to position Vernon as an ideal location for industrial uses. City Government: The City Council consists of five members, elected from the City at large, who serve five-year staggered terms. The City Council annually appoints a Mayor and a Mayor Pro Tern from its own membership to serve one-year terms. III. SCOPE OF SERVICES The City of Vernon generates 122 million in revenue for electric, water, gas, business licenses, and miscellaneous services every fiscal year. Of this total revenue, approximately $250,000 is written off to bad debt with the average balance due per account to be around $1500.00. Over 80 percent of the bac debt volume is generated by the City of Vernon Light & Power Department with the remainder coming from damage property, permit fees and false alarms permits. Each Proposal shall include a description of a fall scope of services, including at least the following elements: 0 Manner in which the City would provide claims for collection. • Manner in which claims would be evaluated and processed to and through any required litigation. • Manner in which "best practices" for collection are observed and how consumer claims for unfair collection practices, if any, would be handled. • Fees charged, as a percentage of successful collections as well as a specification of the exact dollar amounts of any additional costs or charges which the City would be required to pay. • Manner in which records will be kept and reports will be generated for the City of all Collections. IV. PROPOSED FORMAT The selected provider shall work with the City's personnel to ensure the highest level of successful Collections. A. Assumptions: Proposals should include a list of assumptions made in preparation of the proposal on a separate page entitled, "Assumptions Upon Which This Proposal is Based." This section should also specifically set forth those documents and data which the prospective Coordinator expects to be provided by the City. B. Schedule: Proposals should provide a detailed schedule for the handling of typical Collection matters to the extentreasonably possible and foreseeable. C. Fees and Costs: Fees charged, as a percentage of successful collections as well as a specification of the exact dollar amounts of any additional costs or charges which the City would be required to pay. Cost information shall be submitted in a separate sealed envelope. V. QUALIFICATIONS & CRITERIA A. Qualifications: The City of Vernon will select a firm to handle Collections on the basis of qualifications, experience, and cost. The following are the minimum qualifications to be used to evaluate responses to this Request for Proposal: The proposer has advanced knowledge of the laws and practices relating to Collections and consumer debt collection performing the requested services. 2. The proposer has a demonstrated track record of success in handling Collections of an equal or greater level of receivables than that described in Section III, above. 3. Each proposer shall provide three references, preferably from governmental entities, for relevant work performed in the past five years. When possible, include references from cities of a similar size and character to Vernon. If the proposer does not have three governmental entity references, references from private entities may be provided. 4. The proposer can demonstrate understanding of the assignment and knowledge of the skills necessary to serve in the role of handling Collections. B. Selection Criteria: The following items will be used to evaluate each proposer: 1. Qualifications, background and prior experience of the firm. Experience of key staff assigned to oversee Collections for Vernon. Evaluation of the size and scope of similar work performed and success on that work. 2. Soundness of accounting and reporting procedures. 3. Cost and fees to Vernon for handling Collections. Cost is not the sole determining factor but will be taken into consideration. 4. Responsiveness to the RFP, and quality and responsiveness of the proposal. 5. References including past performance of proposer. VI. FORMAT AND DELIVERY RESPONSE Respondents are asked to submit seven (7) copies of their proposals in sufficient detail to allow for a thorough evaluation and comparative analysis. The proposal should include, at a minimum, the following information in sectionalized format addressing all phases of the work in the RFP: A. Format: Limit your proposal to 20 typed 8.5" x I I" pages, or fewer, on white bond paper of at least 20-pound weight single sided (excluding cover letter and attachments). You may attach company brochure materials if you wish, but these must be as separate attachments and independent from the required elements noted above. 1. Use a conventional typeface with a minimum font size of 12 points. Use a 1" margin on all boarders. 2. Organize your submittal in the order described above. 3. Provide one (1) unbound original of your firm's response and one electronic version 4 4. Prominently label the package: "RFP for the Function of Collection of Past Due Receivables" and include the name of the prime respondent. Deliver the response to: City of Vernon Attention: Javier Valdez, Business & Account Supervisor Finance Department 4305 Santa Fe Avenue Vernon, CA 90058 5. Responses are due on or before 5:00 p.m., on October 29, 2012. Late responses will not be accepted. 6. If you have any questions please contact Anthony Serrano at (323) 583-8811 Extension 202 B. Cover Letter: All proposals shall include a cover letter which states that the proposal shall remain valid for a period of not less than ninety (90) days from the date of submittal. If the proposal contemplates the use of sub -contractors, the sub -contractors shall be identified in the cover letter. If the proposal is submitted by a business entity, the cover letter shall be signed by an officer authorized to contractually bind the business entity. With respect to the business entity, the cover letter shall also include: the identification of the business entity, including the name, address and telephone number of the business entity; and the name, title, address and telephone number of a contact person during the proposal evaluation period. C. Introduction: Present an introduction of the proposal and your understanding of the assignment and significant steps, methods and procedures to be employed by the proposer to ensure quality deliverables that can be delivered within the required time frames and your identified budget. D. General Scope of Work: Briefly summarize the scope of work as the proposer perceives or envisions it. E. Work Plan: Present concepts for conducting the work plan and interrelationship of all products. Define the scope of each task including the depth and scope of analysis or research proposed. F. Specific Work Products: Identify the specific end products that will be submitted. Include concepts as to the form and content of each work product. E G. Proposed Schedule: Present a comprehensive schedule reflecting time frames and milestones for completing each phase and task. Include key decision points, interviews, workshops and Public Hearings H. Fees and costs: Although an important aspect of consideration, the financial cost estimate will not be the sole justification for consideration. Negotiations may or may not be conducted with the proposer; therefore, the proposal submitted should contain the proposer's most favorable terms and conditions, since selection and award may be made without discussion with, any firm. All prices should reflect "not to exceed" amounts per item. I. Ability of the Proposer to Perform: Provide a detailed description of the proposer and his/her/its qualifications, including names, titles, detailed professional resumes and past experience in similar work efforts/products of key personnel who will be working on the assignment. Provide a list of specific related work projects that have been completed by the proposer which are directly related to the assignment described in this RFP. Note the specific individuals who completed such project(s), Identify role and responsibility of each member of the project team. Include the amount of time key personnel will be involved in the respective portions of the assignment. Respondents are encouraged to supply relevant examples of their professional product. Provide a list.of references. The Coordinator shall not subcontract any work under the RFP nor assign any work without the prior written consent of the City. J.Affidavit of Non -Collusion. Proposer must submit a completed and signed, "Affidavit of Non -Collusion." (Copy attached as Fxhibit A). VIL ADDENDA, CHANGES, AND AMENDMENTS TO THIS SOLICITATION At any time prior to the due date for responses, the City may make changes, amendments, and addenda to this solicitation, including changing the date due to allow respondents time to address such changes. Addenda, changes, and amendments, if made, will be posted on the City's website (www.cityofvemon.org), which is deemed adequate notice. A proposer may make a request to the City's project coordinator to be placed on a list of persons to receive notice of any such addenda, changes, or. amendments. The preferred manner of communications is via e-mail due to its timeliness. VIII. CONDITIONS FOR RESPONSES TO RFP The following conditions apply to this RFP process: A. Nothing contained in this RFP shall create any contractual relationship between the respondent and the City. B. This RFP does not obligate the City to establish a list of service providers qualified as prime contractors, or award a contract to any respondent. The City reserves the right to amend or cancel this RFP without prior notice, at any time, at its sole discretion. C. The City shall not be liable for any expenses incurred by any individual or organization in connection with this RFP. D. No conversations or agreements with any officer, agent, or employee of the City shall affect or modify any terms of this RFP. Oral communications. or any written/e-mail materials provided by any person other than designated contact staff of City shall not be considered binding. E. The City reserves the right, in its sole discretion, to accept or reject any or all Proposals without prior notice and to waive any minor irregularities or defects in a Proposal. The City reserves the right to seek clarification on a Proposal with any source. F. The dates, times, and sequence of events related to this RFP shall ultimately be determined by the City. The schedule shown above is subject to change, at the sole discretion of the City, although the City will attempt to follow it and, if it must be altered, will attempt to provide reasonable notice of the changes. G. Respondents shall not issue any news release pertaining to this RFP, or the City without prior written approval of the City. H. All submitted proposals and information included therein or attached thereto shall become public record upon delivery to the City Administrator's Office. IX. RIGHT BY THE CITY TO WITHDRAW THIS REQUEST The City may, at its sole discretion and for any reason whatsoever, withdraw this solicitation at any time. X. STANDARD TERMS AND CONDITIONS. Prior to the award of any work hereunder, City and proposer shall enter into the written contract attached hereto as Exhibit B. Proposers responding to this RFP are strongly advised to review all the terms and conditions of the Contract. 7 EXHIBIT A AFFIDAVIT OF NON -COLLUSION BY CONTRACTOR STATE OF CALIFORNIA ) ) as COUNTY OF LOS ANGELES ) being first duly sworn deposes and says that he/she is (Insert "Sole Owner", "Partner", "President, "Secretary", or other proper title) (insert name of bidder) who submits herewith to the City of Vernon a proposal; That all statements of fact in such proposal are true; That such proposal was not made in the interest of or on behalf of any undisclosed person, partnership, company, association, organization or corporation; That such proposal is genuine and not collusive or sham; That said bidder has not, directly or indirectly by agreement, communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract; and further That prior to the public opening and reading of proposals, said bidder: a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham proposal; b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham proposal, or that anyone should refrain from bidding or withdraw his proposal; C. Did not, in any manner, directly or indirectly seek by agreement, communication or conference with anyone to raise or fix the proposal price of said bidder or of anyone else, or to raise or fix any overhead, profit or cost element of his proposal price, or of that of anyone else; d. Did not, directly or indirectly, submit his proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, or to any individual or group of individuals, except the City of Vernon, or to any person or persons who have a partnership or other financial interest with said bidder in his business. I certify under penalty of perjury that the above information is correct 0 EXHIBIT B SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND [CONTRACTOR'S NAME] FOR [BRIEF DESCRIPTION OF SERVICES] Contractor: Responsible Principal of Contractor: Notice Information - Contractor: Notice Information - City: Commencement Date: Termination Date: Consideration: Records Retention Period COVER PAGE [insert name of contractor] [insert name, title] [insert name of contractor] [insert street address] [insert city, state, zip code] Attention: [insert name, title] Phone: [insert phone number] Facsimile: [insert fax number] City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: [insert department head] [insert department head title] Telephone: (323) 583-8811 ext. [insert] Facsimile: [insert fax number] [insert commencement date] [insert termination date] Total not to exceed $[insert amount] (includes all applicable sales tax); and more particularly described in Exhibit B [insert number of years contractor must retain records] September 2012 SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND [CONTRACTOR'S NAME] FOR [BRIEF DESCRIPTION OF SERVICES] THIS Contract is made between the City of Vernon ("City"), a California charter City and California municipal corporation ("City"), and [Contractor's Name], a [State incorporated in] corporation ("Contractor"). The City and Contractor agree as follows: 1.0 EMPLOYMENT OF CONTRACTOR. City agrees to engage Contractor to perform the services as hereinafter set forth as authorized by the City Council on 2.0 SCOPE OF SERVICES. 2.1 Contractor shall perform.all work necessary to complete the services set forth in the Request for Proposals dated , Exhibit "A," and Contractor's proposal to the City ("Proposal") dated Exhibit "B," and according to an agreed upon Schedule, Exhibit "C," all of which are attached to and incorporated into this Contract by reference. 2.2 All services shall be performed to the satisfaction of City. 2.3 All services shall be performed according to the standards then prevailing in the [state] profession. 3.0 PERSONNEL. 3.1 Contractor represents that it employs, or will employ, at its own expense, all personnel required to perform the services under this Contract. 3.2 Contractor shall not subcontract any services to be performed by it under this Contract without prior written approval of City. 2 gAntAmhPr 9M9 3.3 All of the services required hereunder will be performed by Contractor or by City -approved subcontractors. Contractor, and all personnel engaged in the work, shall be fully qualified and authorized or permitted under State and local law to perform such services and shall be subject to approval by the City. 4.0 TERM. 4.1 The term of this Contract is for a period of three years, commencing with its signing and continuing to and through [state date]. 5.0 COMPENSATION AND FEES. 5.1 For satisfactory and timely performance of the services, the City will pay Contractor an amount not to exceed in accordance with the payment schedule set forth in Exhibit "C",.and subject to the terms and conditions of Exhibit "A". 5.2 Contractor's grand total compensation for the entire term of this Contract shall not exceed [state amount] without the prior authorization of the City Council. 5.3 Contractor shall, at its sole cost and expense, furnish all necessary and incidental labor, material, supplies, facilities, equipment and transportation which may be required for furnishing services pursuant to this Contract. Materials shall be of the highest quality. The above Contract fee shall include all staff time and all clerical, administrative, overhead, insurance, reproduction, telephone, air travel, auto rental, subsistence, and all related expenses. 6.0 PAYMENT. 6.1 As scheduled services are completed, Contractor shall submit to 3 September 2012 the City an invoice for the services completed, authorized expenses, and authorized extra work actually performed or incurred according to said schedule. 6.2 Each such invoice shall state the basis for the amount invoiced, including the services completed, the number of hours spent, reimbursable expenses incurred and any extra work performed. 6.3 Contractor shall also submit a progress report with each invoice that describes in reasonable detail the services and the extra work, if any, performed in the immediately preceding calendar month. 6.4 City will pay Contractor the amount invoiced within thirty (30) days after the City approves the invoice. 6.5 Payment of such invoices shall be payment in full for all services, authorized costs and authorized extra work covered by that invoice. 7.0 CHANGE ORDERS. There is no change order authority provided in this Contract. 8.0 CITY'S RESPONSIBILITY. City shall cooperate with Contractor as may be reasonably necessary for Contractor to perform its services; and will give any required decisions as promptly as practicable so as to avoid unreasonable delay in the progress of Contractor's services. 9.0 GENERAL TERMS AND CONDITIONS. 9.1 INDEPENDENT CONTRACTOR. 9.1.1 It is understood that in the performance of the services herein provided for, Contractor shall be, and is, an independent contractor, and is not an agent or employee of City and shall furnish such services in its own manner and method 4 September 2012 except as required by this Contract. Further, Contractor has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Contractor in the performance of the services hereunder. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 9.1.2 Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of the City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits. 9.2 CONTRACTOR NOT AGENT. Except as the City may authorize in writing, Contractor and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 9.3 OWNERSHIP OF WORK. All reports, drawings, plans, specifications, computer tapes, floppy disks and printouts, studies, memoranda, computation sheets and other documents prepared by Contractor in furtherance of, the work shall be the sole property of City and shall be delivered to City whenever requested. Contractor shall keep such documents and materials on file and available for audit by the City for at least three (3) years after completion or earlier termination of this Contract. Contractor may make duplicate copies of such materials and documents 5. September 2012 for its own files or for such other purposes as may be authorized in. writing by the City. 9.4 CORRECTION OF WORK. Contractor shall promptly correct any defective, inaccurate or incomplete tasks, deliverables, goods, services and other work, without additional cost to the City. The performance or acceptance of services furnished by Contractor shall not relieve the Contractor from the obligation to correct subsequently discovered defects, inaccuracy or incompleteness. 9.5 WAIVER. The City's waiver of any term, condition, breach or default of this Contract shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. 9.6 . SUCCESSORS. This Contract shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, successors and/or assigns. 9.7 NO ASSIGNMENT. Contractor shall not assign or transfer this Contract or any rights hereunder without the prior written consent of the City and approval by the City Attorney, which may be withheld in the City's sole discretion. Any unauthorized assignment or transfer shall be null and void and shall constitute a material breach by the Contractor of its obligations under this Contract. No assignment shall release the original parties or otherwise constitute a novation. 9.8 COMPLIANCE WITH LAWS. Contractor shall comply with all Federal, State, County and City laws, ordinances, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof, including but without limitation, the Vernon Living Wage Ordinance. Violation of any law material to performance of this Contract shall entitle the City to terminate the 6 September 2012 Contract and otherwise pursue its remedies. 9.9 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 9.10 INTERPRETATION. 9.10.1 Applicable Law. This Contract, and the rights and duties of the parties hereunder (both procedural and substantive), shall be governed by and construed according to the laws of the State of California. 9.10.2 Entire Agreement. This Contract, including any exhibits attached hereto, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 9.10.3 Written Amendment. This Contract may only be changed by written amendment signed by Contractor and the City Administrator or other authorized representative of the City, subject to any requisite.authorization by the City Council. Any oral representations or modifications concerning this Contract shall be of no force or effect. 9.10.4 Severability. If any provision in this Contract is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Contract, and the remaining provisions, shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or 7 September 2012 unenforceable portion had never been part of this Contract. 9.10.5 Order of Precedence. In case of conflict between the terms of this Contract and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the terms of this Contract shall strictly prevail. 9.10.6 Choice of Forum. The parties hereby agree that this Contract is to be enforced in accordance with the laws of the State of California, is entered into and/or is to be performed in the City of Vernon and that all claims or controversies arising out of or related to performance under this Contract shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 9.10.7 Duplicate Originals. There shall be two (2) fully signed copies of this Contract, each of which shall be deemed an original. 9.11 TIME OF ESSENCE. Time is strictly of the essence of this contract and each and every covenant, term and provision hereof. 9.12 AUTHORITY OF CONTRACTOR. The Contractor hereby represents and warrants to the City that the Contractor has the right, power, legal capacity and authority to enter into and perform its obligations under this Contract, and its execution of this Contract has been duly authorized. 9.13 ARBITRATION OF DISPUTES. Any dispute for under $25,000 arising out of or relating to the negotiation, construction, performance, non- performance, breach or any other aspect of this Contract, shall be settled by binding arbitration in accordance with the Commercial Rules of the American Arbitration 8 September 2M Association at Los Angeles, California and judgment upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. The City does not waive its right to object to the timeliness or sufficiency of any claim filed or required to be filed against the City, and reserves the right to conduct full discovery. 9.14 INDEMNITY. 9.14.1 Contractor agrees to indemnify, hold harmless and defend (even if the allegations are false, fraudulent or groundless), to the maximum extent permitted by law, the City, its City Council and each member thereof, and its officers, employees, commission members and representatives, from any and all liability, loss, suits, claims, damages, costs, judgments and expenses (including attorney's fees and costs of litigation) which in whole or in part result from, or arise out of, or are claimed to result from or to arise out of: A. any activity on or use of City's premises or facilities or any performance under this Contract; or B. any acts, errors or omissions (including, without limitation, professional negligence) of Contractor, its employees, representatives, subcontractors, or agents in connection with the performance of this Contract. 9.14.2 This agreement to indemnify includes, but is not limited to, personal injury (including death at any time) and property or other damage (including, but without limitation, contract or tort or patent, copyright, trade secret or trademark infringement) sustained by any person or persons (including, but not limited to, companies, or corporations, Contractor and its employees or agents, and members of the general public). The sole negligence or willful misconduct of City, its employees 9 September 2012 or agents other than Contractor or Contractor's subcontractors are excluded from this indemnity agreement. 9.15 INSURANCE. Contractor shall, at its own expense, procure and maintain policies of insurance of the types and in the amounts set forth below, for the duration of the Contract, including any extensions thereto. The policies shall state that they afford primary coverage. 9.15.1 Automobile Liability with minimum limits of at least $100,000/300,000150,000 if written on a personal automobile liability form, for using a personal vehicle; or an. amount of $500,000 including owned, hired, and non -owned liability coverage if written on a Commercial automobile liability form. 9.15.2 General Liability with minimum limits of at least $1,000,000 combined single limits written on an Insurance Services Office (ISO) Comprehensive General Liability "occurrence" form or its equivalent for coverage on an occurrence basis. Premises/Operations and Personal Injury coverage is required. The City of Vernon, its directors, commissioners, officers, employees, agents and volunteers must be endorsed on the policy as additional insureds as respects liability arising out of the Contractor's performance of this Contract. A. If Contractor employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Contractor may include all subcontractors as insureds under its own policy or shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. B. Blanket Contractual Coverage if required. 10 September 2012 C. Products/Completed Operations coverage where such risk is applicable. 9.15.3 Professional Errors and Omissions coverage in a sum of at least $1,000,000. Applicable aggregates must be identified and claims history provided to determine amounts remaining under the aggregate. 9.15.4 Contractor shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. Compliance is accomplished in one of the following manners: A. Provide copy of permissive self-insurance certificate approved by the State of California; or B. Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a minimal limit of $1,000,000 per accident. The policy shall be endorsed to waive all rights of subrogation against City, its City Council, commissioners, officers, employees, and volunteers for losses arising from performance of this Contract; or C. Provide a "waiver" form certifying that no employees subject to the Labor Code's Workers' Compensation provision will be used in performance of this Contract. 9.15.5 Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days' prior written notice to City. 9.15.6 Insurance shall be placed with insurers with a Best's rating of no less than B:VIII. 11 September 2012 9.15.7 Prior to commencement of performance, Contractor shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies at any time. 9.15.8 Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Contractor shall immediately notify City and cease all performance under this Contract until further directed by the City. In the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees and costs against Contractor by way of set-off or recoupment from sums due Contractor, at City's option; (b) immediately terminate this Contract; or (c) self insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from, Contractor, by way of set-off or recoupment from any sums due Contractor. 9.16 NOTICES. Any notice or demand to be given by one party to the other shall be given in writing and by personal delivery or prepaid first-class, registered or certified mail, addressed as follows. Notice simply to the City of Vernon or any other City department is not adequate notice. If to the City: 12 September 2012 If to the Contractor: Any such notice shall be deemed to have been given upon delivery, if personally delivered, or, if mailed, upon receipt or upon expiration of three (3) business days from the date of posting, whichever is earlier. Either party may change the address at which it desires to receive notice upon giving written notice of such request to the other party. 9.17 TERMINATION FOR CONVENIENCE (Without Cause). City may terminate this Contract in whole or in part at any time, for any cause or without cause, upon fifteen (15) calendar days' written notice to Contractor. If the Contract is thus terminated by City for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a prorated amount based on the services satisfactorily completed and accepted prior to the effective date of termination. Such payment shall be Contractor's exclusive remedy for termination without cause. 9.18 DEFAULT. In the event either party materially defaults in its obligations hereunder, the other party may declare a default and terminate this Contract by written notice to the defaulting party. The notice shall specify the basis for the default. The Contract shall terminate unless such default is cured before the effective date of termination stated in such notice, which date shall be no sooner than ten (10) days after the date of the notice. Termination for cause shall relieve the terminating party of further liability or responsibility under this Contract, including the payment of money, except for payment for services satisfactorily and timely performed prior to the service of the notice 13 September 2012 of termination, and except for reimbursement of (1) any payments made by the City for service not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by the City in obtaining substitute performance. 9.19 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Contract and/or is paying only the amounts to which Contractor is properly entitled under the Contract or for other purposes relating to the Contract. The Contractor shall maintain and preserve all such records for a period of at least 3 years after termination of the Contract. The Contractor shall maintain all such records in the City of Vernon. If not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals and overhead. 9.20 CONFLICT. Contractor hereby represents, warrants and certifies that no member, officer or employee of the Contractor is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. 9.21 Enforcement of Wa-ge and Hour Laws. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five 14 September 2012 dollars ($25) for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon compensation for all hours worked in excess of 8 hours per day at not less than 1'/2 times the basic rate of pay. Living Wages. In addition, Contractor, or Subcontractor, if any, working on City service contracts of any amount, as to all employees spending time on City contracts shall observe the City's Living Wage Ordinance and all requirements thereof at all times on City contracts. The Current Living Wage Standards are set forth in Exhibit D. Upon request, certified payroll shall be provided to the City. 15 September 2012 IN WITNESS WHEREOF, the Parties have signed this Agreement as of the date stated in the introductory clause. City of Vernon, a California charter City [CONTRACTOR'S NAME, a [State and California municipal corporation incorporated in] corporation 0 Mayor / Mayor Pro-Tem ATTEST: Dana Reed, Acting City Clerk APPROVED AS TO FORM: Nicholas Rodriguez, City Attorney 0 Title: a Name: Title: 16 September 2012 EXHIBIT A SCOPE OF SERVICES 17 September 2012 . EXHIBIT B PROPOSAL 18 September 2012 EXHIBIT C SCHEDULE 19 September 2012 EXHIBIT D LIVING WAGE PROVISIONS Minimum Living Wages: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. 20 September 2012 EXHIBIT B PROPOSAL December 2012 EXHIBIT B created exclusively for The City of Vernon ® Caine &Weiner Excellence in Global Receivables Solutions Professional Service, Personal Attention —Proven Results Caine & Weiner www.,,..:iine-weiner.com Los Angeles Chicago Louisville Buffalo Dallas Table of Contents City of Vernon Collection of Past Due Receivables Proposal About Caine & Weiner Mission Statement Introduction Strategy & Implementation File Handling Procedure The PIF Process Forwarding Litigation Communication & Reporting System Technology Placing files For Collection Debtor Payment Options Remittance Procedure The Law Offices of Pucin & Collection Center Locations Why use Caine & Weiner? Frequently asked questions Friedland, P.C. Exhibits State Licenses & Registration Insurance & Bonding Certification Caine & Weiner's vital role in the U.S. economy Global Credit Solutions Who are some of our clients? Is your collection agency meeting your expectations? Web Presence/Newsletter Attachments 1-17 2 3 4 5 7 8 9 10 11 13 14 15 16 17 18 21 Tab 1 Tab 2 Tab 3 Tab 4 Tab 5 Tab 6 Tab 7 Tab 8 Report Samples Collection Letters Non -Collusion Affidavit Fee & Cost Schedule (Sealed) Proposal to The City of Vernon for Collection of Past Due Receivables November 16, 2012 I. Introduction Caine & Weiner is honored to have been invited by the City of Vernon to submit our proposal in response to your October 25, 2012 Request for Proposal —Collections of Past Due Receivables. Collecting the delinquent debts outlined in your RFP is well within Caine & Weiner's level of expertise. Caine & Weiner currently provides debt recovery activities for City of Los Angeles, the Los Angeles Department of Water & Power, and the City of Pomona among other municipalities. By using our services to address the recovery of your delinquent commercial utility accounts, city property damage, city permits and business false alarms, The City of Vernon derives "the best of both worlds" —the resources, facilities and collection platform of a large agency with a record of proven performance in the recovery of municipality debt recovery, combined with the personalized service and responsiveness of a small, local agency. Founded in 1930 and headquartered in Los Angeles, Caine & Weiner is a solution -based accounts receivable management enterprise that provides effective 1st and 3`d party collection solutions to commercial (626) and consumer (132C) businesses representing every major industry, including many Fortune 500 Companies and municipalities. We are renowned for our collection excellence and outstanding client service, explaining in part why some of our clients have continuously used our services for over 35 years. Caine and Weiner has the technology and collection expertise to produce maximum recovery results on behalf of The City of Vernon. As the 4th oldest agency in the country, Caine & Weiner is highly regarded in the collection industry and a founding member of the Commercial Collection Agency, certified by the Commercial Law League of America. Our revenue is derived almost exclusively from our collection activity, in which we've recovered over $1 billion on behalf of our clients. II. Assumptions upon which this proposal is based In presenting this proposal to the City of Vernon the following assumptions have been made: 1 Proposal to The City of Vernon for Collection of Past Due Receivables November 16, 2012 • Collection activity to be performed will be primarily for commercial business entities with approximately 20% consisting of consumer debt. • The City of Vernon will be submitting accounts electronically in one of several formats available incoordination with the Caine & Weiner IT team. Files submitted for collection will be accepted in a hard copy format if required. Placements will be submitted on at least a monthly basis. • Files placed for collection will contain data to include the following: * Debtor Name/Entity Details * Address/Phone/E-mail data as available * Contact name if possible * City of Vernon Account/Reference number/Debt Type * Date ranges for unpaid services/Incident dates * Amount owed to the City * Debt description * Last Charge Date/Last Payment date if possible • The City will be selecting only one agency to receive the contract award • There is no blanket settlement authority on the files. • The City of Vernon will designate a contact person with whom we can communicate as needed regarding account details, status updates, backup documentation requests, etc. • That collection activity performed on behalf of the City of Vernon will be performed on a contingency fee collection basis, with net monies recovered remitted to the City either weekly or monthly per City preference • The City must pre -approve any files authorized for litigation • Annual placements will be approximately $250,000 III. General Scope of Work With a proven track record of municipality debt recovery, Caine & Weiner's goal is to generate maximum debt recovery for the City of Vernon for delinquent balances which otherwise is written off. Your RFP states this figure is approximately $250,000 consisting mostly of bad debt generated by the Light & Power Department. As your provider, Caine & Weiner is able to accept files via electronic or hard copy methods including fixed length, Excel, Access and other formats as required by our clients. Our systems are extremely flexible as it relates to the exact format for new file placement. We can provide templates for use by our clientele prior to sending new files if needed. Our software can easily accommodate importing the data from any source as mentioned above. We do accept hard copy files for manual data entry. Typically, our 2 Proposal to The City of Vernon for Collection of Past Due Receivables November 16, 2012 clients provide an Excel spreadsheet with all pertinent information regarding name, address, phone, amount due, customer number, invoice numbers, last payment date, last payment amount, date of last charge, and more. Backup documentation is not required on each account but if provided is easily and securely scanned into the imaging system of our collection software for collector access. To best facilitate this process, upon award of the contract, meetings would be arranged, either in person or via conference call, between key personnel at the City and Caine & Weiner. The purpose of the meetings is to determine the specific collection processes, from file placement through payment remittance of collected funds, which would occur on the accounts placed by the City for collection activity. These meetings would establish in significant detail file placement methodology, collection activity time frames, settlement parameters, communication protocols between the two organizations regarding daily collection activity, backup documentation requests, remittance time frames and much more. Caine & Weiner would then set up our internal systems and establish client protocols as appropriate. Additional key factors: • IT testing and validation of EDI processes, including sample placement files (if needed) • Timely data security adjustments made as needed • Data validation after placement of accounts • Introductions of CW client relations team to City of Vernon personnel • Training for your personnel on CW Connect on line access product • Establish internal Key Performance Indicators and performance scorecards for your A/R portfolios • Monthly and quarterly business reviews, internal and with the City, to include KPI tracking • Ongoing training from City personnel on department specifics and recovery expectations • Scheduling of calls to discuss results, account handling, benchmarking, and partnering to maximize recoveries for the City 3 Proposal to The City of Vernon for Collection of Past Due Receivables November 16, 2012 Files are also easily placed with Caine & Weiner in a secure fashion via our CW Connect product and its robust client file upload/download features. A secure VPN tunnel and file transfer protocols can also be established for file placement. The placement file is reviewed and downloaded into CUBS, our Columbia Ultimate Business Systems Collection software. Immediately upon placement, an acknowledgment is sent to the client to confirm the number and dollar amounts of the placement. An initial demand letter is concurrently sent to the debtor that meets all FDCPA and FCRA requirements. These letters can be pre -approved by the client as required. Our software can automatically allocate accounts to a pre-set group of collectors based on client parameters. Each collector is given a maximum number of files to handle which ensures that timely call cycles and activity is maintained on each account. Commercial accounts are assigned to specific collectors with experience in asset investigation, contract evaluation and pre -litigation negotiation among other skills. Each new file is also screened through two national databases, Accolaid and Banko. Respectfully those databases verify the debtor's address and telephone and determine if there has been a recent bankruptcy filing. Such pre-screening allows us, if necessary, to immediately commence skip tracing action or refrain from collection action if bankruptcy was filed. If the original phone number and/or address are invalid, our commercial collectors use an unlimited access to the LexisNexis database to run a Business Report and determine the current corporate status of the company and research available assets, corporate ownership, sole proprietor status, etc. We also feature the Cortera product, specifically designed to pull business details from multiple online databases. Cortera provides access to property records for the business location, corporate officer listings, asset portfolios and more. If there is a personal guarantee on the account, every effort is made to pursue the individual responsible for the debt under FDCPA guidelines for consumer collections. All consumer accounts are scored through a vendor partner Intelitech to determine the anticipated likelihood of collection and overall potential dollars per account. The scores are integrated into the daily collection processes. Work queues and dialer campaigns are updated daily based upon the current scores of each account. Work flow for the collectors is adjusted daily to contact the best accounts during the most beneficial times of day. Contact attempts are tracked daily as well and more effort is put into the higher scored accounts throughout the entire collection process. Specific targets are established regarding work flow by score/category that enable our collectors to spend the vast majority of their time contacting the best possible accounts. Collection results 4 Proposal to The City of Vernon for Collection of Past Due Receivables November 16, 2012 are tracked against the effort on each account to insure maximum dollars are recovered on each file. More details as to the scoring process and methodology can be provided upon request by our clients. If the original phone number and/or address are invalid on an account, our LexisNexis feature allows our collection team to search a 16 million -record database for nearby information, potential work phone numbers, etc. This online feature enhances our ability to locate missing debtors. It includes access to property records, reverse directories, etc. and is accessible at any time by our collection and skip tracing teams. Files without valid phone numbers are immediately moved to a skip trace desk for further work. In addition to using the LexisNexis database, skip trace personnel have access to all online search engines and our own internal 2 million record data base. Once a valid phone number is found the file is immediately moved to a collector's desk for further collection activity. Our skip tracing specialists are equipped with an extensive source of effective skip tracing resources. Some of them include: Accolaid Banko Experian Equifax TransUnion E-bureau LexisNexis Dun & Bradstreet Accurint National Change of Address Database Bankruptcy Database Caine & Weiner developed the PIFZaccount handling procedure to ensure that each debtor account receives optimal handling and 100% accountability. PIFZ HANDLING METHOD • P= Primary collector 1-45 Days • 1= Intermediate collector 46-90 Days • F= Final collector 91-120 Days • 2= Supervisor/Manager review 120+ Days Account flow manager automatically changes desk assignment. 5 Proposal to The City of Vernon for Collection of Past Due Receivables November 16, 2012 The process ensures that each account properly advances through the collection process and that management consistently reviews it at regular day intervals. By using multiple collectors and management's continuous review, the PIF2 handling procedure is a very effective method that produces outstanding results. Primary, intermediate and final demand account resolution specialists are teamed to each account. The handling is closely monitored throughout the collection cycle by the unit supervisor. If a determination is made that the account should be closed due to non-payment, a 2-step management review process is conducted. The collection cycle, built within the PIF2 procedure is designed to maximize amicable resolution and continues for approximately 120-180 days. During this time frame, all means of communication with the debtor are used to convey urgency and resolve the matter. The exact time period will vary depending upon the portfolio and the circumstances of each file. For accounts placed at a value over a mutually established dollar amount in which we are unable to collect the monies through our in-house collection efforts, Caine & Weiner features tremendous internal and external options for debt recovery. The Law Offices of Pucin & Friedland is Caine & Weiner's affiliated legal entity that shares our mission to provide our stakeholders with enhanced due diligence, accountability, control, lower costs and increased results throughout the entire recovery cycle, specifically focused on pre -litigation and litigation services. Their team of highly skilled and experienced creditors' rights attorneys serves the entire enterprise and is strategically located in our Los Angeles and Chicago call centers. If our in-house collection efforts have been exhausted and after management review the debtor appears viable with attachable assets, the file is forwarded to the Law Firm with client permission. All files remain in our primary collection database and all collection activity is documented throughout the entire legal collection process up to and including any litigation efforts and remittance of funds. Collection efforts include legal demand letters and calls both from experienced legal collectors and the attorneys. The City of Vernon would continue to have 24/7 online access to the files via our CW Connect product. The firm manages each file to completion regardless of the physical location of the debtor. The firm works with an established network of Creditor's Rights attorneys across the entire country and has the capability to pursue debt in every jurisdiction across the United States. Each attorney is licensed and bonded up to $3 million through the Commercial Law League of America, the American Lawyers Quarterly and/or the General Bar. For all files in which the debtor resides in Southern California, all litigation efforts against the debtor are handled 9 Proposal to The City of Vernon for Collection of Past Due Receivables November 16, 2012 directly by Steven Friedland, Esq. and his legal team located in our corporate headquarters in Woodland Hills, California. Caine & Weiner accepts payments over the phone via Credit Card, Debit Card or ACH (check), in addition to processing hard copy checks, wire transfers, and Western Union payments. All checks are deposited on the day they are received. All credit card and ACH payment items obtained via phone efforts are also processed the same day. Client remittances are flexible, depending on client preference. Remittance statements are typically sent either weekly or monthly based upon client requirements. They can be funded via normal check disbursements, ACH Federal Reserve line or via wire transfers. A detailed Trust Statement is provided to our clients with each remittance, documenting all dollars received per account, fees earned, and monies due the client. The Trust detail is easily submitted both electronically via Excel spreadsheets and via hard copy as required. Quarterly bank audits are performed internally to assure there are no misapplied funds, and an outside CPA firm performs a yearly audit on all internal financial and cash handling processes. Remittance monies are typically sent weekly (but can be monthly at client request) to our clients after a short 10 day hold to insure clearance of all funds. The appropriate percentage of all monies collected is paid to the client under this time frame regardless of whether the monies collected paid the account in full. Files paid in full are coded with a PIF status and no further collection activity occurs once the funds have cleared. Payment plans under limited time frames are accepted from debtors by our collection staff. Should a debtor fail to pay the entire balance due and eventually stop communicating with our collection team, the file is closed under a partial payment status. All monies due the client would have already been remitted based upon the date the monies were received in house by Caine & Weiner. If the client permits, all accounts are reported to Experian, Equifax and TransUnion, with monthly updates provided for any status changes or payments received. For files that remain unpaid through the PIF2 collection process, final disposition is based upon client preference. Files may be closed and returned to the client with a specific status such as refusal to pay, unable to locate, no response from debtor, etc. Closing reports are provided to the clients on a monthly basis. Additionally, if the client dictates the files can remain open in our collection system under a suspend 7 Proposal to The City of Vernon for Collection of Past Due Receivables November 16, 2012 status and remain with Caine & Weiner for periodic review and to maintain the credit reporting integrity. Caine & Weiner also features an extensive Client Services staff in place to support the daily collection operations and provide timely communication to our clientele. A dedicated point of contact is can be assigned to a client that is extremely well -versed in all aspects of collections. All daily phone and e-mail communication is handled through our Client Services staff in order to streamline client contact and create tremendous efficiencies within the collection process. Our Client Services team also provides the daily, weekly and monthly reports required by the client. As part of our client services commitment, Caine & Weiner features our CW Connect client access product. CW Connect provides 24/7 user ID and password protected access for our clientele to view all activity on their accounts. Available data includes access to all collection activity from the placement date forward including all letters, collector notes, payment histories and more. No additional hardware or software is required. Access is via our www.calne-weiner.com website. This product also includes tremendous data mining capabilities and customizable reporting. CW Connect also provides the ability for clients to update accounts, report payment activity, send secure e-mails, and more. All data is updated daily and new business is available to be viewed the following calendar day. There is no cost to the client for this feature. Our base report is a monthly status report documenting all monies recovered and the current status of all accounts. It provides statistics based on age of account, account balance, age of debt at time of placements and present status and can be provided in hardcopy or via Excel worksheets. Caine & Weiner provides all clientele with multiple levels of reporting. Our primary customization in reporting comes from our CW Connect product. Any number of client specific reports is readily available online 24/7 that track all data required by the client. Reports can be run based upon placement date, dollars recovered, dollars placed, payment dates, geography, reference numbers, etc. Data can be mined to access very specific information, for example, limiting the search to accounts placed within the last 90 days over $5000 that are still in open status and have at least one payment. CW Connect is a very user friendly program and our client services team is always available to assist in the creation of customizable reports. Customized reports, including ad hoc reports, can be prepared in accordance with your specific parameters. Typically these reports are provided through our CW Connect product, securely accessible at all times with an assigned User ID and 111 Proposal to The City of Vernon for Collection of Past Due Receivables November 16, 2012 password that prevents access by unauthorized parties. No additional hardware or software is required. Any number of specific reports can be created that track all data you require. Reports can be created based upon product, placement date, dollars recovered, dollars placed, payment dates, geography, reference numbers, and much more. The CW Connect feature includes robust data mining capabilities and customizable reporting. Caine & Weiner collection team members handle themselves in a professional, ethical manner at all times. It is a core aspect of our debt recovery operation, supported by our continuing certification by the Agency Association of the Commercial Law League of America, obtained by fewer than 2% of all agencies nationwide. Caine & Weiner considers itself an extension of our clients and as such does everything possible to insure a positive experience for the customers through the debt recovery process. Files are handled with assertiveness and professional follow up, never with aggressiveness or threats. Simple explanations are provided to individual consumers outlining the reasons the debt is owed and all options available to them for resolution. Discussions are always focused on how Caine & Weiner can assist the individual in satisfying the outstanding balance, not on the consequences of failing to pay the debt, although issues such as credit reporting are discussed if appropriate. All FDCPA and FCRA laws are followed at all times, including all required delays between follow up calls to avoid any potential harassment concerns. In addition, all unresolved files are moved through a collection process that requires multiple team members work the account in an attempt to recover the monies due. This methodology provides a team concept framework that prevents the need for any one collector to be overly aggressive in their collection efforts. Any debtor complaint issues regarding file handling or collector conduct are immediately transferred to senior management for resolution. The debtor file is updated by the management team with all details as to the next steps and any necessary client involvement. The file is then placed on a senior management desk for continued debt recovery efforts and final resolution. Internally, senior management reviews the event both with the collection manager and the collector to confirm that all debt recovery activities were handled according to company policy and the client's work standards and in a professional, ethical manner at all times. Individual personnel files are updated as appropriate depending upon the final results of the investigation. Management will notify the client of the final resolution of the complaint. If Caine & Weiner discovers a complaint trend with a collector or Account Representative we address the issue immediately internally through additional training on all collection E Proposal to The City of Vernon for Collection of Past Due Receivables November 16, 2012 practices and any client specific concerns. Caine & Weiner prides itself on our professionalism and very rarely receives these types of complaints. In keeping with your requirement (IV Proposed Format, Q our fees and costs are attached in the sealed envelope. IV. Work Plan The specific methodology in which the files are worked is outlined in great detail in our response to the General Scope of Work. This also includes all reporting options available to the City. Please see section III above. As a brief overview, demand letters are sent to the debtors on each account within one business day of placement into our collection software. The one day delay allows our system to process address change and bankruptcy data prior to the initial correspondence being sent. Collection calls begin immediately upon placement of account. All files are handled by collectors experienced in Municipality debt recovery. Collection efforts progress through primary, intermediate and final demand collectors in-house and continue into the legal process as needed. Specific parameters are set by the City as to which accounts qualify for legal efforts. No litigation takes place without prior City approval. Our legal team including our attorney is located onsite at our corporate office in Los Angeles. Monies recovered are remitted on a net fee basis either weekly or monthly based upon City preference after a short 10 day holdover to insure all funds clear. Reports documenting monies recovered and account status are readily available 24/7 to designated City personnel via our CW Connect online product. Access is limited by User ID and password protections with no additional hardware or software requirements. IV. Specific Work products The RFP relates to offsite debt recovery services performed on behalf of the City of Vernon. As such, the primary work product is the collection activity documented in our Columbia Ultimate software. Additional work product includes reports and remittance documentation. As noted in our response to the General Scope of Work, online access is available at all times for City personnel to view the current status of any account placed with Caine & Weiner for collection activity. Custom reports can be created at any time as well at the City's request. 10 Proposal to The City of Vernon for Collection of Past Due Receivables November 16, 2012 Attached are sample standard reports regarding inventory status, recovery statistics, history report and remittance of recovered funds along with a sample initial demand letter. Reports can be provided in Excel or Word format as required by the client. V.Proposed Schedule Caine & Weiner currently features the technology, infrastructure and personnel to begin collection activity on behalf of the City of Vernon with virtually no lead time. Upon award of the contract we anticipate needing 2-3 business days at most to set up all required client information internally within our software, including accounting and remittance processes along with all collection activity parameters. Our existing senior management team is readily available to meet with City of Vernon personnel at any time to review all required collection processes and establish all recovery protocols as discussed in the General Scope of Work response. Once those meetings occur we are able to train the appropriate collection staff within 1-2 business days. Time frames for the actual debt recovery activity can range from a few days up to over a year depending on the debtor's response and the potential for litigation on the particular account. Typically we are able to begin collection activity less than 30 days from contract award/signatures. VI. Fees and costs Please refer to fees and costs in the separate sealed envelope. VII. Ability of the Proposer to Perform Established in 1930 and headquartered in Los Angeles, Caine & Weiner is a solution - based accounts receivable management company that provides effective 1" and 3`d party collection solutions to commercial (13213) and consumer (132C) businesses representing every major industry. In addition to our corporate office in Los Angeles, we maintain full service call centers strategically located in Chicago, Buffalo, Louisville, and Dallas. As a partner of Global Credit Solutions (GCS), with partner offices in 90 world capitals and 4,000 employees, we have the international resources and expertise to perform collection activity unhindered by geographic location. Our eight decades of experience have convinced us that client satisfaction is our highest priority. Toward that goal we've assembled the industry s top team of tenured professionals —designated subject matter experts who specialize in their area of 11 Proposal to The City of Vernon for Collection of Past Due Receivables November 16, 2012 expertise. In addition we've established strategic business alliances, invested in advanced software, training, development, quality management/manpower, and developed proven file handling techniques that consistently enable our organization to reach top tier recovery levels while maintaining the highest levels of customer service. Caine & Weiner combines our expertise in recovering funds with a strong ability to avoid adversely affecting your customer relationships. Due to our high level of professionalism, often debtors who we've contacted for payment later approach us to collect their receivables. We're also a founding member of the Commercial Collection Agency Association certified by the Commercial Law League of America. As such, we adhere to the highest ethics and standards. Fewer than 2% of the collection agencies in the U.S. are members. Our membership is an additional assurance that all account handling on behalf of your organization is conducted in a professional, transparent manner. Our company has seen 30% revenue growth over the past five years. Our competitive edge lies in our success in having built an organization with the size, scope, technology and resources of a true national company featuring five full service call centers strategically located throughout the United States, combined with the high customer service and recovery levels of a much smaller organization. With fewer collection agencies operating today than ten years ago, Caine & Weiner has not only remained robust, but has flourished in the industry and will continue to do so through our commitment to building long term relationships with our clientele via the proper balance of state-of-the-art technology and experienced, dedicated personnel that enable our organization to maximize recovery and customer service in an extremely cost efficient environment. Not surprisingly we're invited on an ongoing basis by America's leading companies to participate in their RFP processes. As well, many of our clients decided to use our services based on positive industry feedback and peer recommendations regarding our performance and unmatched client service. We have 2500+ active clients, which placed in excess of $292 million last year of which $57.8 million was recovered on their behalf. 12 Proposal to The City of Vernon for Collection of Past Due Receivables November 16, 2012 Workforce statistics Location Full Time Employees Part Time Employees Los Angeles, LA 81 51 Chicago, IL 29 1 Louisville, KY 17 0 Buffalo, NY 10 2 Dallas 2 i 3 Caine & Weiner prides itself on our diverse customer base and our ability to build highly successful partnerships with clientele across multiple industries. We have industry expertise in multiple commercial arenas including Municipalities, Wholesale/Distribution, Rental/Leasing, Advertising, Finance and Insurance Premiums, among many others. Some of our core clients include Fortune 500 Companies such as Nestle USA, Tribune Companies/The Los Angeles Times, Pitney Bowes, John Deere, Wells Fargo, W.W Grainger and McMaster Carr Supply Company among many others, some of which have used our services for over 35 years. In performing collection activity on behalf of the City of Vernon, Caine & Weiner adheres to all state and federal requirements regulating debt collection, including: • Fair Debt Collection Practices Act (FDCPA) • Privacy Act of 1984 • The Fair Credit Reporting Act (FCRA) • Gramm Leach Bliley Act (GLBA) • Workers Compensation case laws • The Fair and Accurate Credit Transactions Act of 2003 (FACIA) • The Heath Insurance Portability and Accountability Act (HIPAA) • Code of Ethics & Standards of the Collectors Associations Caine & Weiner features multiple years of highly successful collection programs for several municipalities across Southern California. Our company has over ten years of experience recovering monies on behalf of the Los Angeles Department of Water and Power and other similar entities. Caine & Weiner currently has a team of collectors specifically dedicated to the recovery of Los Angeles Department of Water & Power and other municipality files. These individuals have a minimum of 3-5 years of collection experience and each collector (along with the 13 Proposal to The City of Vernon for Collection of Past Due Receivables November 16, 2012 collection manager) is fluent in Spanish. They are fully trained on all FDCPA and FCRA issues and are very well versed in all aspects of the municipality water and power general billing and final bill generation and notification processes. This in-depth knowledge enables our collection team to maximize their recovery efforts while still maintaining the highest levels of customer service expected by the various cities. In addition, for the past 5 years Caine & Weiner has recovered debt on behalf of the City of Los Angeles and specifically the Office of Finance, Citywide Collection Unit. Our expertise in this area includes recovery of unpaid Los Angeles City Business Taxes. We have recovered in excess of $18,000,000 over the life of the contract on behalf of the City of Los Angeles. More directly related to the scope of this RFP for the City of Vernon, Caine & Weiner currently recovers monies owed to the City for administrative costs related to DUI activity, damage both to City and Department of Transportation property, Police Department false alarms, street light damage, Building & Safety debt, Bureau of Accounting debt, and Hazardous Materials debt, among other business units. To date under the current contract we have collected in excess of $2.1 Million on behalf of the City of Los Angeles for these divisions. Caine & Weiner can easily segregate business submitted by various business units within the City of Vernon as needed to insure proper tracking of recovery results. Caine & Weiner currently stores data in our Columbia Ultimate (CUBS) software for multiple business units within the various municipalities. One key component of our success in working with the various Southern California municipalities is our ability to limit the number of files worked by our collection staff. As noted above with over 130 employees in our Los Angeles office, Caine & Weiner is easily able to build collection teams and add collectors as dictated by our client's volume of placements. Our collectors handling commercial accounts are limited to 400-500 files each, and our collectors handling consumer accounts are limited to 600-800 files. Further limits are placed on collectors specializing in the recovery of high dollar files. Caine & Weiner has been providing our municipality clients with standard, customized and ad hoc reports for the past decade. These reports include recovery statistics, accounts status, monthly open and closed account details, current and prior month payment files and much more. These reports are generated on a weekly or monthly basis as required by the clients, and ad hoc reports are generated on a same day request basis. As part of the methodology to deliver these reports and account updates, Caine & Weiner features our CW Connect client access product. CW Connect provides 24/7 user ID and password protected access for our clientele to view all activity on their accounts. 14 Proposal to The City of Vernon for Collection of Past Due Receivables November 16, 2012 No additional hardware or software is required. Access is via our www.caine- weiner.com website. This product includes tremendous data mining capabilities and customizable reporting in addition to access to files notes and payment histories. The product also provides the ability for clients to update accounts, report payment activity, to send secure a -mails and more. All data is updated daily and new business is available to be viewed the following calendar day. We possess specific hands on experience and success in recovering the types of monies owed outlined in this RFP, including both outstanding Water and Power debt and non - tax debt from multiple business units. Project Team: The following individuals have been assigned to oversee The City of Vernon account. Tony Albanesi Vice President -West Coast Operations Based in our corporate call center in Woodland Hills, California, Tony would have senior management level oversight of the City of Vernon accounts. Tony has over 25 years of experience in the collection industry, with the last 18 years being spent at Caine & Weiner. He is involved with all key clientele using services at our corporate location and has more specific accountability for 10-15 of our largest clients. He is involved with all key clientele using services at our corporate location. Manny Torrez Collection Manager Manny oversees our Municipalities collection unit and has 20 years of experience in the industry, the last five of which have been spent at Caine & Weiner. He currently manages the team responsible for water and power debt recovery. Collection staff currently working for Manny and Tony will be assigned as needed based upon placement volume assigned by the City of Vernon. 15 Proposal to The City of Vernon for Collection of Past Due Receivables November 16, 2012 As specifically requested in the RFP, below are three references in the municipality arena: References Karen Dean Supervisor City of Los Angeles, Office of Finance 200 N. Spring Street #1225 Los Angeles, CA 90012 karen.dean@lacitv.ore 213 978-2821 Rick Ryan Supervisor Los Angeles Department of Water & Power 1115 Hope ST #732-146 71h Floor Los Angeles, CA 90012 rick.rvan@ladwp.com 213 367-2949 Debbie Vento Collection Manager City of Pomona 505 South Garey Ave Pomona, CA 91769 debbievento@ci.pomona.ca.us 909-620-2250 In summary, there are several advantages the City of Vernon will derive by using the proven services of Caine & Weiner: Competency As a California corporation Caine & Weiner is a well -familiar with California laws, statutes and regulations with a proven history of maximized recoveries. With a long history of providing debt recovery and related services, our file -handling and accountability and performance are unmatched. The tenured collectors who will be handling the files from The City of Vernon are adept at handling municipal collection work. 16 Proposal to The City of Vernon for Collection of Past Due Receivables November 16, 2012 Stability Caine & Weiner has enjoyed a long history of stability, both in regard to its management team and its financial matters. These are critical components to ensure client confidence of our abilities and our dedication to a long and successful relationship. Client Service: Caine & Weiner is renown in the industry for our outstanding client service. As such some of our clients have continuously used our service for over 35 years. We have a hand-picked team, very familiar with municipality collections ready to serve the City of Vernon to make sure your expectations are met. System Capabilities Caine & Weiner is a front-runner in the utilization of the latest technology to enhance service, streamline performance and increase results. Caine & Weiner looks forward to establishing a partnership with The City of Vernon. Such a relationship will provide the City with proven expertise in municipal debt recovery, adherence to all state and federal regulations applicable regulations and unmatched performance. Performance Caine & Weiner is an industry leader in achieving maximum recoveries and has vast experience within your industry and California. Our senior management team has over 350 years combined experience within the credit and collections industry. 17 For over eight decades Caine & Weiner has served the credit and collection industry. As an International provider of commercial and consumer credit and collection services, we have earned an exemplary industry reputation based on our total team commitment to delivering optimal collection performance and outstanding client service. Established in 1930 by Sidney Caine and Charles Weiner, our company today has four full service collection centers strategically located throughout the United States. Our 2,500 clients, which include Fortune 500 Companies, are served by our team members. Caine & Weiner integrates several resources to l' maximize recoveries and provide the highest level of �t service to our clients. To maximize collections we utilize speed, integrated database information, tenured professionals, flexibility and the most advanced technology and database systems available. To make our services valuable to our clients we continually focus on streamlining our processes, developing innovative collection methods, data analysis, maximizing cash flow and maintaining client relationships. Our management team collectively has over 350 years of experience in the commercial and consumer accounts receivable managements industry. We are members of ACA, the Commercial Collection Agency Association, and are certified by the Commercial Law League of America, and The International Association of Commercial Collectors and take pride in the alliance partnerships we have established. Est. 1930 Caine & Weiner Los Angeles Chicago Buffalo Louisville Dallas t, Statement Caine & Weiner Mission/Vision Statement We enhance cash flow for the global business community thfouyI1 the creative and effective utilization of account receivable management systems and innovative solutions As we approach the end of our first century of successful service,our strategic Intent is: Continued growth through Internal development of our resources Or) going investment in people, procedures and technology Acquisition of, and alliance with progressive companies who share our vision. We are committed to building a positive, professional environment that fosters teamwork and honors our historic service values and Integrity. Cash flow is the life blood that determines if a business succeeds or fails. When accounts receivables are not promptly acted upon the likelihood of recovery diminishes with each passing month. A survey conducted by PricewaterhouseCoopers LLP estimated that bad debt write-offs in 2007 were about $152.5 billion, of which a substantial portion could've been recovered had collection action been implemented at the early stages of delinquency. As shown in the following table, a business with a 5% profit margin must bill and collect $200,000 to offset a $10,000 loss due to bad debt. 50 0 1,000 714 100 3,334 2,000 1,428 200 6,668 4,000 2,856 300 10,000 6,000 4,284 400 LIIII }� ..1,667 , , 6j672fis5,712OQ 500 25Q69 a iw�, , 16,670 i`1i5,R 10,000.i1'3�4'0� 750 ,z�3�/s'UQmt,i�._25,000 ,?,�S`'6r�W++,. 15,000 10,710 I,000 '33,340 "5f000,�a,i�' 20,000 ""1 , $0�"v�'�s�. 14,280 2,000 w ,9�b 0'i�d�.�` 66,668 '.'SO°00,� 40,000- 28,571 5,000 166,666 v��5 00,0 y r 100,00089,33.`Q s,K 71,428 10,000 50p,OQOj imp 333,333 ''�Sy0,000ti,; 200,000 ,16�G66` p 142,857 2Q 000 �3`QDOi000 666,666 00s600 a 400 000 3333 '' 285,774 According to a study undertaken by the Commercial Collection Agency Association the probability of debt collection diminishes over time. As shown in the table below, after 180 days, the probability of collecting a delinquent balance drops to 52.1 %. The statistics clearly illustrate the importance of utilizing Caine & Weiner's collection service once accounts receivable age beyond the due date. We understand the importance of cash flow and have developed a sophisticated system to greatly enhance collection and the flexibility to meet client requirements. As accounts receivable management experts, the Caine & Weiner team has the experience and collection technology to help you increase your cash flow and lower your DSO to increase your bottom line profits. 3 In order for our team to deliver the results expected by our clients it is critical that we have a full understanding of their needs and expectations. Once this is established a collection strategy is implemented and closely monitored and continuously reviewed. Our collection management software allows us to continually evaluate our collection performance and implement the appropriate collection strategies as necessary. Optimal performance and client satisfaction are Caine & Weiner's highest priorities. Upon receipt of the client's file and supporting data, it is uploaded into our collection handling system and scanned into our document imaging system for easy access by our collection teams. Client -specific coding, if necessary, can also be tracked. Clients may submit files electronically by email or secure ftp. Hardcopy submission is also acceptable. Thereafter, the client receives written or electronic acknowledgement of the placement and the account resolution specialist assigned to the file commences collection activity. Collector inventory is tracked daily, and newly -submitted files are systematically assigned to ensure proper distribution. This prevents any one collector from carrying an inventory of accounts that would hinder their ability to maintain proper work flow and call cycle standards for the client. The following table lists the minimum work standards that the account resolution specialist is expected to invest into the debt recovery process for each file. Based on the individual circumstances of each file, however, additional contacts may be necessary to accelerate the recovery effort. • Commercial Each letter series shown above contains language that increases the urgency of payment and shortens the payment time frame with each subsequent letter. When files are assigned without a known debtor telephone number and unavailable through the Acollaid, (NCOA) pre-screening process, the file is forwarded to our skip tracing department. Caine & Weiner utilizes Lexis/Nexis online data base with over 15 million public records as our primary research tool. Once the skip tracing department locates the debtor information, the file is forwarded to an assigned accounts resolution specialist to initiate collection activity. Should there be no positive resolution after 30-45 days into our debt recovery efforts the account is moved through an intermediate and final desk work flow over the next 60-90 days (our plF2 process). This ensures contact attempts from multiple collectors and provides the maximum recovery opportunities. Files, as necessary, are reviewed for potential litigation activity. The PI F2 proceSS-Caine & Weiner's precision file management procedure The process, resulting from over eight decades of -file handling, produces optimal collection results, precise follow-up, continuous management oversight and-100% accountability. Features include: A primary, secondary and final handling specialist is assigned to each file At each; stage a collection supervisor evaluates the progress Management oversight imbedded in the procedure guarantees 100%accountability for every file Before a file is closed it must undergo a two-step management review. The three -tiered integrated collection process incorporates multiple collection actions governed by on -going supervisory/management review and intervention throughout the entire collection cycle. Primary handling During the initial handling period the debtor receives an FDCPA-compliant payment request by mail and a 2-3 day call cycle commences. The Account Resolution Specialist assigned to the file is a certified collection professional, regulation -compliant and highly skilled in debtor communication and problem solving. If payment is not received or a payment plan agreed upon the file is moved to the next handling level. Intermediate handling At this level, the 2-3 day action cycle continues and, depending on the circumstances, a secondary specialist may enter the picture. A supplemental FDCPA-compliant letter is sent to the debtor and greater urgency is conveyed. The Account Resolution Specialist's file -handling and call cycle is supervisor -reviewed to make sure that maximum collection efforts are undertaken and that handling is compliant with all regulations in the area where the debtor is domiciled. If payment is not received or a payment plan agreed upon (with the clients approval), the file is moved to the final handling stage. Final handling Final handling is performed by a specialist --whose sole objective is to fully explore all final opportunities to amicably resolve the debt. Their activity includes a review of all previous activity and. direct debtor communication. The specialist operates within a very narrow area, between primary and intermediate handling, and before the implementation of legal action (if client approved). In the final handling stage, the assigned specialist, an articulate and persuasive communicator, is often able to convince the debtor to remit payment "to avoid a blemish on their credit record" and that the client is rightfully entitled to payment. In keeping with Caine & Wiener's reputation, the debtor is treated at all times in a professional, dignified manner. If the debtor refuses to cooperate the file is forwarded to Caine & Weiner's Legal Department for review after which recommendations are made to the client. If legal activity is approved, the file is managed from "cradle to grave" up through execution of judgment. Assigned attorneys are located in the debtor's jurisdiction. If the file is considered for closure, it undergoes a two-step management review. 2 Throughout the collection cycle the progress is continuously analyzed and reviewed by management. 'All legal activity must be client approved Forwarding The Law Offices of Pucin & Friedland, P.C. (P&F) is Caine & Weiner's affiliated legal entity that handles Caine & Weiner files exclusively. With three full time attorneys and their staffs, they specifically focus on pre - litigation and litigation services. Throughout the entire recovery cycle, they ensure that enhanced due diligence, accountability, control, lower costs, increased results, and the elimination of costly delays are given top priority. Clients directly benefit from their easy access to P&F—an advantage lacking in midsize and smaller agencies that must remotely communicate with off -site law firms. In those cases when the debtor refuses all reasonable collection efforts, their file is referred by P&F to a collection attorney located in the debtor's geographic area. The attorney is required to be a member of the Commercial Law League of America (CLLA), licensed and bonded for $3 million through American Lawyers Quarterly and the General Bar. P&F works closely with the outside collection attorneys at all steps throughout the litigation process to ensure that the file is thoroughly handled. Forwarding Process: Following in-house collection P&F evaluates A payment demand is made upon activity, the collector forwards the the file.' the debtor file to P&F If continued collection activity is <warranted a is sent to the attorney , If the debtor (ails to pay, their After receiving the signed business entity is confirmed after documentation and the clients which suit requirements & a check check, legal action is initiated 'reauesl am. sent to. the client • Is the debt disputed? " • Does the debtor have any assets? • Does any personal liability exist? • Are their env oendlnd tax hens Bulls or iudomentsi. 8 For certain accounts uncollected through our in-house efforts, Caine & Weiner may forward these files to a local attorney for further review. Once the attorney has researched the debtor company, Caine & Weiner is provided with an overview of the account along with a recommendation as to whether litigation is a viable option on the file. This recommendation is based upon multiple factors including the amount of the debt, location, the operational status, the ability to serve the debtor, etc. If litigation is recommended, Caine & Weiner will provide written notification to the client as to the initial filing fees required. The client is then able to determine if it is cost effective to proceed with litigation. If so, the client forwards written authorization for suit along with the initial court costs/suit fees and necessary documents to Caine & Weiner. Once these are received, legal action is initiated against the debtor. Further action on the accounts will vary, based on whether the lawsuit is answered. If the debtor fails to answer the suit, the attorney will process the file to obtain a Default Judgment against the debtor. After obtaining, a writ of execution may be filed and an attempt is made to recover funds through bank levies, asset judgment, attachments, etc. Should the debtor answer the suit, the case moves into discovery. At that point a detailed exchange of information takes place through interrogatories, production demands, etc. Motions may be filed to attempt a quick resolution on the matter. Various hearings and/or settlement conferences may be held in an attempt to resolve the case prior to trial. If a trial is necessary, the client would be required to provide a witness to testify as to the validity of the debt. If no witness is available, every effort will be made to settle the case prior to trial. Once a favorable judgment is obtained, post judgment execution efforts described above will be initiated. Caine & Weiner will notify the client of all key events as they transpire. The client may contact our legal department as needed with any questions on particular files. Please be reminded that these accounts are handled on a contingency fee basis, with an increased fee added due to litigation. A small non -contingent suit fee may be required by counsel in certain geographic locations. Communication & Reporting Caine & Weiner utilizes the latest procedures, systems and technologies to communicate effectively with our clients. An integral part of our service is to provide our clients with a convenient and secure format for the transmission of system data. Multiple communication options enhance the recovery process. • Online direct links have been established to access public record information, asset information, credit information and other valuable sources to implement our collection activity. • Clients can utilize our communication capabilities to place files, enter notes, read the collector notes and obtain up to date file status information. • Statistical and customized reporting is provided according to the client's request. In addition to voice, email and facsimile transmission, communication can be facilitated though the Internet. Our website address is www.caine-weiner.com/contact We offer a wide range of reporting options and statistical reports will be customized to your specifications. Examples include: acknowledgement of file, account inventory, account closure, remittance reports and more. Electronic and/or hard copy is available according to your preference. Our CW Connect feature provides 24n access so that our client —and only them, can view the collection activity of their files. A unique ID and password will be assigned to ensure security No additional software is required. Accounts may be assigned for collection via email, disk, the Internet, and through the creation of ASCII or Excel files for independent upload and download of information. Our Collection software program -- Gm.nWm�, ......., ..... ery WIN 4R 0. - f 1l e�.n�yeouaab.no41e•e p9e s�$a0 ,i provides tremendous flexibility and customization options with regard to placements, reporting, recovery tracking, etc. The following pages contain sample reports. 10 System Technology Caine & Weiner leverages the latest technology to ensure that our collection utilizes the best hardware and software available. The core platform is The Collector System from Columbia Ultimate. The system is the most resource -enriched in the marketplace, with its advanced technology and sophisticated software. Our Accounts j,, � Resolution Specialists work in a "paperless" user-friendly environment in which work (WIP) is scheduled, and brought to their attention for follow up automatically. Using a debtor number, name, social security number, phone number, etc., files can be retrieved instantaneously. A number of points can be assigned to each account record based on the balance amount, the age of account, last payment date, etc., and prioritized for appearance on the collectors WIP (Work In Progress) list each day. The Collector System provides an array of powerful collector management tools. In addition to the traditional reporting and tracking of costs. Features of the system include the following: Management Reports The system provides the unit manager overseeing the collector's activity with daily, weekly and monthly reports. This enables the management staff to highlight areas where coaching and goal -setting might be appropriate. A feature of the system is "exception reports" to flag any file which has not received collection activity in accordance with Caine & Weiner's work standards. itWorkstation automation The Collector System eliminates "paper filing". The collector has availability to all information that is necessary to call, fax, and send letters to accomplish their collection objectives. 7 Follow -Up Scheduling Files are automatically scheduled for follow-up at specific times. Follow-up activity is predetermined by the collector's previous efforts and commitments and promises from the debtor, the size of the balance, and other important factors. 11 System Technology ■ Collection Activity Tracking All collection activity on each file is logged and measured. The date, time and collector who completed the action are recorded on the file. The logs provide a history for the collector for further collection activity, as well as for the Caine & Weiner collection supervisor. The Collector System provides maximum flexibility in the scheduling and printing of account and client correspondence. Virtually any information from the database can be sorted and accessed on an unlimited number of user -defined accounts. Entire inventories or segmented portions can be analyzed and reports generated to provide such information. Clients may also access their files through the CWConnect feature to view their accounts as they are being worked. Our collection software resides on custom, scalable Dell servers, set in a RAID10 configuration for maximum efficiency and data protection. Offsite Redundant servers provide disaster recovery protection within 24-48 hours. Fortigate software provides top level frrewall protection and daily downloads insure up-to-date virus protection at all times. All necessary data exchange is secure, encrypted and user ID and Password protected within FTP and SFTP environments. The Collector System software is the state-of-the-art for the collection industry by way of design, philosophy, flexibility and client interface capabilities. 12 Clients have several file -placement options available to them. Within 24 hours after receiving the file the data is downloaded into our collection management system —and confirmation which lists the debtors name, amount owed, assigned file number and other required data is sent to the client. Confirmation 13 Caine & Weiner makes it easy for debtors to remit payment by offering them several user-friendly options. Our use of integrated technology such as these multiple options allows us to quickly determine if the debtor is stalling for additional time. The ACH check -processing options, for example lets us know within 72 hours if the debtors check is NSF. 14 Remittance Procedure Caine & Weiner has the flexibility to remit collected amounts according to the client's specific requirements. Our goal is to get the dollars collected to our clients as quickly as possible. Our normal procedure is a weekly remittance cycle on all available funds held for 10 days. During this time frame funds are held in our clients trust account. The hold period is waived for payments made by certified funds or cashier's check payments. Depending on the client's preference, remittances can be on an individual or combined basis. Our system allows for deduction or non - deduction of the collection fees. Remittances are accompanied with an itemized trust statement documenting all monies received on a per account basis. 15 Another Caine & Weiner Advantage! The Law Offices of Pucin & Friedland, P.C. Caine & Weiner, recognizing client needs within the current fluctuating economic times, provides yet another distinct advantage to recover lost dollars. The Law Offices of Pucin & Friedland, P.C. (P&F) is Caine & Weiner's affiliated legal entity who shares our mission to provide our stakeholders with enhanced due diligence, accountability, control, lower costs and increased results throughout entire recovery cycle specifically focused on pre -litigation and litigation services. Its team of highly skilled and experienced creditors' rights attorneys serves the entire enterprise and is strategically located in our Chicago and Los Angeles centers. The P&F process occurs as the next logical step in the collection cycle initiated by Caine & Weiner. This process involves legal professionals, who are specifically trained in the art of negotiation, financial analysis, skip tracing and reporting all in furtherance of client requirements focused on the ultimate goal of final resolution. Caine & Weiner and P&F use the same collection system and database, sharing key information thus eliminating redundancy and loss of time. Furthermore, our clientele are able to view our respective activity within the account notes from our CW Connect online portal, accessible 24/7 via our website at http://www.caine-weiner.com/client_access/ Our objective is to avoid litigation and P&F will make every attempt to amicably resolve the matter and mitigate the cost of collection without recommending the filing of a lawsuit. If litigation is the only alternative, our team will verify the debtor's financial situation, attachable assets, bank accounts, employment, etc. so as to analyze any settlement offer propounded or post judgment execution needed. Based on the aforementioned analysis, litigation is recommended and submitted to Caine & Weiner and the client. Suit will be filed only with prior client approval. P&F attorneys are licensed in Illinois, Ohio and California, and can litigate certain accounts where jurisdiction falls within those states. On all other accounts, Caine & Weiner will utilize its long standing network of licensed, bonded and insured Commercial Law League of America attorneys. P&F and Caine & Weiner will manage the entire legal process for maximized results, eliminating wasted time, efforts, frustration and money. The services provided and results obtained are compelling advantages for our clients. 16 Caine & Weiner's national network of full service, electronically linked regional collection centers share a data base for integrated file handling. This shared platform facilitates resource re -allocation to ensure seamless account handling. The result is that the proper ratio of accounts handled by the collector is maintained, ensuring optimal collection performance and maximized recoveries. 1 West Coast 21210 Ervin St. Woodland Hills, CA 91367 818-226-6000 818-226-6010 Fax ca@caine-weiner.mm yin .mud Midwest 1699 E. Woodfield Rd. Schaumburg, IL 60173 847-407-2320 847-6194765 Fax it@caine-weiner.com Mid -South Northeast Southwest 9931 Corporate Campus Dr. 338 Harris Rd. 16200 Addison Rd. Louisville, KY 40223 Buffalo, NY 14221 Addison, TX 75001 502-425-9100 716-633-0235 972-248-6499 502426-9005 Fax 716-633-5944 Fax 972-248-7544Fw ky@caine-weiner.com ny@csine-weiner.com tx@caine-weiner.com 17 Why Use Caine & Weiner? Los Angeles Chicago Louisville Buffalo Dallas As one of America's leading providers of accounts receivable management services, with experience in every major industry, we've found that companies may be missing the important benefits we offer because of misperceptions and faulty information. ALL COLLECTION AGENCIES ARE THE SAME! That's like saying all Credit Managers are the same! When this perception exists, it's usually based on average service delivered by the agency. There are around 5,000 collection agencies in the U.S. Like any industry, the services they provide range from marginal to outstanding. Unfortunately, the negative occurrences are often the ones remembered. The problems of understaffed and under -financed agencies end up becoming the clients' problem! Accounts placed for collection aren't efficiently handled. Status reports are infrequently sent. Short-staffed Accounting Departments fail to process remittances promptly expected by the client. Caine & Weiner's employee retention is one of the highest in the industry. Since 1930, we've placed a high priority on hiring the best available candidates, training and retaining them! This insures that only well qualified specialists handle the recovery of your delinquent accounts. Doing business today requires fast solutions. Unfortunately many agencies often lack up-to-date collection technology. Time frames tolerated just five years ago aren't acceptable today. Caine & Weiner is mindful of this and acquired the industry's most advanced collection software. Our collection platform utilizes the Collector System from Columbia Ultimate. LerisNexis sofhvare augments our skip tracing investigations. Our resources also include Banko, NCOA address verification and CW Connect, our online access feature. By utilizing the Quantum I! Integrated Dialer system we significantly increased debtor contact increasing recoveries for our clients. Our investments in people and in the best collection technology available are just two of the reasons why many Fortune 500 companies use our accounts receivable management services on an ongoing basis. WE CAN DO EVERYTHING ANAGENCY CAN! While many companies utilize collection software and have an in-house collection staff, Caine & Weiner's resources can augment their efforts! Company collectors typically work on a salary basis. Regardless of thew monthly collection results, they're assured of a check on payday. Caine & Weiner's Accounts Receivable Specialists work on a contingent 18 collection basis. As professionals, their compensation is based on results; hence, they're focused on performance! As a full service agency, Caine & Weiner reports debtors to Experian, Trans Union and Equifax. Debtors withholding payment often find a way to pay their obligation if their credit rating could be affected. Unlike company collectors, who must balance collecting with other tasks such as approving orders, handling administrative duties, etc., our specialists' job is to collect money —nothing else! Although company collectors endeavor to skip trace, frequently they must work with outdated information and few resources. Our Skip Trace Department uses best in class skip tracing software. Our on -site database contains over 4.5 million files. We provide debtors with a variety of ways to remit payment, which include payment by credit card (VISA, MasterCard, American Express & Discover Card). They may also pay through our website (www.caine- weiner.com) using the Expresspay option and also remit via ACH, the secured electronic bill paying option. WE'VE USED THE SAME AGENCY FOR YEARS! While loyalty is commendable, the world is rapidly changing. According to IBM, every four years their technology is obsolete! In today's world of wireless technology, e-commerce, global markets and ever -changing business landscape, business solutions used a year ago may no longer be effective. Caine & Weiner's role is to provide our clients with solutions that work. Our clients receive information about changes in legislation collection law and on- going tips on how to improve their in-house collection efforts. Some companies use agencies that aren't deriving use of the latest technology or not practicing up-to-date collection techniques. Their inability to compete in the marketplace ends up costing the client money! Although agencies traditionally involved themselves only after the debt became past due, we're involved throughout the process. We provide our clients with "front end" information. Our services also include dunning programs, placing specialist's onsite at your place of business and keeping our clients informed of the latest collection techniques. We deliver results! Our combination of customer service, technology and results, combined with our small unit focus and national resources, provides a unique ability to produce maximum results for our clientele. OUR IN-HOUSE ATTORNEY HANDLES OUR COLLECTIONS! In-house attorneys provide a vital function to their company. Their on -site presence enables them to review contracts, study lease agreements, oversee Human Resource Laws, and handle acquisitions, dealer agreements, compliance with the Fair Trade Act and more. When collection efforts are necessary, their role is limited. While they can augment the Credit Manager's effort by sending a letter to the debtor, if a phone call to the debtor is necessary, they can do little more than threaten the debtor with a lawsuit. Our Specialists are trained to turn debtors into customers. They're trained in using the strategic pause, overcoming objections and inducing the debtor to remit payment. In-house Attorneys, moreover, can file a lawsuit only in the state in which they're licensed to practice. If a Los Angeles -based attorney intends to file a suit against a New York debtor, he must use an attorney licensed to 10 practice in New York. Unless he's familiar with the area, he must find an attorney to handle the action. Often this is a random search, using little more than a law list. We utilize a network of proven collection attorneys. Because we've worked with attorney firms since 1930, we know who the top collection attorneys are. Moreover, because of our on -going use of national and international attorney services, chances are our collection attorneys will do the job at a lower cost than the one contacted by your attorney! Getting timely information from the in-house attorney can sometimes present challenges for the Credit Manager. He may place the Credit Manager's request at the bottom of his priorities. Office politics or inter -department rivalries may also impede the collection process. go] Must 1 sign a contract to use your service? We work with and without written contracts. We handle debt recovery on a contingent collection basis, no recovery = no fee. You are not obligated to place a minimum number of accounts. Some of my customers are located in other countries. Do you provide International collection service? Yes. As an active partner of Global Credit Solutions (GCS), we have 90 partners offices with over 4,000 employees located in every major world capital. 1 often work late Into the evening. Is their a way to obtain the status of my accounts during non -business hours? Yes. Our user-friendly CW Connect on-line feature allows you to access the status of your files 24n through our website. An assigned User ID and Password provides security, preventing unauthorized access. There is no additional fee for this service. What happens If the debtor 1 placed for collection contacts me and wants to work out a settlement arrangement? Debtors sometimes do this to delay payment or to avoid contact by the agency. Once the account is placed for collection it is best to distance yourself. Please refer them to our office immediately. Is their a collection fee If the debtor sends me their check after I've placed them for collection? Debtors placed for collection are contacted immediately by our Account Resolution Specialist. Sometimes they resent having been placed for collection and send their payment to the creditor, hoping the agency will not be compensated. In such cases, please let us know if payment was received, after which collection activity will cease. An invoice will be sent to you to cover the contingent collection fee. If you are unable to collect the account I placed, then what? After all in-house collection measures have been undertaken, and if the debtor continues to conduct business -not having filed bankruptcy, a lawsuit may be prudent. The next step involves the services of an outside collection attorney. The attorney reviews the file and makes a recommendation whether to pursue further action. If you approve, additional contingent costs 21 will apply. Litigation is undertaken only with your a rpp oval. What happens if the debtor placed for collection wants to return the product I shipped, rather than remit payment? We are mindful you are in business to sell product not to re -purchase it from your customer. Every attempt will be made to recover the amount owed to you. If the debtor is having severe financial problems and wishes to return product, we let you make the decision after which we convey it to the debtor. When product, in lieu of payment, is returned, our collection fee is reduced to 1/2 of the standard fee. How soon can I expect my money once the debtor remits payment to you? The standard industry hold period —the time between collection of the debt until the funds are sent to the creditor is 30 days. Caine & Weiner's weekly remittance holdover period is just 10- days! If I'm not pleased with your service what recourse do 1 have? Client satisfaction is our highest priority. If you have any concerns about the service you have received you may contact your Client Relations Representative or our Customer Service Department. OX I Is an unlicensed or non -compliant agency contacting your customers for payment? Why take unnecessary risks by using an agency performing collection activity in violation of state regulations. With different requirements in each state regulating collection activity, many agencies are not compliant. By using the trustworthy services of Caine & Weiner, you are assured that all 3rd party contact on your behalf, in every state, is conducted legally and professionally, ensuring that your company's best interests are notjeopardized. Caine & Weiner protects you! Alabama License not required Nebraska Licensed Alaska Letter of Exemption Nevada Licensed Arizona Licensed New Hampshire License not required Arkansas Licensed New Jersey Licensed Califomia License not required New Mexico Licensed Colorado Licensed New York State Licensed not required Connecticut Licensed NYC, New York Licensed Delaware Licensed Buffalo, New York Licensed Florida Licensed North Carolina Licensed Georgia License not required North Dakota Licensed Hawaii Registered Ohio License not required Idaho Registered Oklahoma License not required Illinois Licensed Oregon Licensed Indiana Licensed Pennsylvania License not required Iowa Registered Rhode Island License not required Kansas Registered South Carolina License not required Kentucky License not required South Dakota License not required Louisiana Certificate of Authority Tennessee Licensed Maine Licensed Texas License not required Maryland Licensed Utah Registered Massachusetts Licensed Vermont License not required Michigan Licensed Virginia License not required Minnesota Licensed Washington Licensed Mississippi License not required West Virginia Licensed Missouri License not required Wisconsin Licensed Montana License not required Wyoming Licensed www.caine-weiner.com INSURANCE AND BONDING General Liability The Hartford Client Bond Liberty Mutual Insurance Co. Errors & Omissions Executive Risk Indemnity/Chubb Crime & Fidelity Bond Chubb Employment Practices American Safety Casualty Insurance Co. Workers Compensation Employers Compensation Insurance Co. Umbrella National Union Fire Insurance Co. $2,000,000/$4,000,000 $500,000 $2,000,000 $1,000,000 $2,000,000 $1,000,000 $1,000,000 The Association of Law Lists of the Commercial Law League of America provides bonding up to $3,000,000. Commercial Collection Agency Association Certified by the Commercial Law League of America American Collectors Association International Association of Commercial Collectors 0 Poo O �o U .. � MO • N 40 pmq .Poo c� 0 Poo U V M N 3 - ra w R 1w 404 td 0 d IQ v N El _5) RWR Caine & Weiner's vital role in the U.S. economy By recovering delinquent debt, that would otherwise go uncollected, Caine & Weiner and other debt collection providers directly benefit the U.S. economy Collection agencies returned $44.6 billion of collected debt, in 2010, to creditors, directly benefiting the U.S government, American households and businesses. The data, published in February, 2012 from a survey conducted by Ernst & Young LLP, on behalf of ACA International, underlined the value of third -party debt collection to the U.S. economy. Third party debt collection providers employ thousands of Americans as collection professionals to collect past due accounts from various credit grantors such as credit card issuers, banks, retail stores, health care providers and others. Federal, state and local governments also utilized their expertise to recover uncollected taxes, fines and other unpaid governmental obligations. From the government perspective the recovery of delinquent tax dollars reduces the need for future tax and fee increases or cuts in services to their constituencies. For consumers the benefit of third party debt collection can be seen through reduced consumer prices and greater consumer purchasing power. Businesses benefit from third -party debt collection because debt recoveries help keep their costs down and reduce their risk of financial insolvency and bankruptcy that could result from unrecovered bad debt. "Caine & Weiner takes Caine & Weiner 2012 considerable pride in our contributions to the nation's economy," said Greg A. Cohen, Caine & Weiner's President and CEO. "Millions of dollars have been successfully recovered on behalf of our clients, enabling them to grow their businesses, provide employment and be successful business entities. I'm very proud of what our dedicated team of professionals have accomplished." The survey found that approximately 148,300 people are employed in the debt collection industry, including 133,900 fulltime employees, 12,900 part time and 1,500 contract employees. The total industry payroll is nearly $5.0 billion; another $1.8 billion is spent on non -labor expenditures. U.S. debt collection agencies also support the indirect employment of an additional 152,000 individuals in industries that provide goods and services to them. Considering both the direct and indirect economic impacts of the debt collection industry, the total employment impact on the U.S. is nearly 302,000 jobs with a total payroll impact of $10.1 billion. Charitable institutions benefited by receiving approximately $85 million from the industry in 2010. Agency employees devoted 652,000 hours of company sponsored volunteer activities. With baby boomers now entering retirement age, it's not surprising that health care related debt is the leading category of debt collection among survey respondents, accounting for more than half of all debt collected in the industry. Credit card and financial debt is the next category with 201/o of debt collected. Utility, telecommunications, student loans, commercial and government debt each comprise less than 10 percent of debt collected. U.S debt collection agencies were estimated to directly create $495 million of federal tax. $289 million of state tax and $221 million of local tax for a combined tax impact of more than $1 billion. The survey data collected by Ernst & Young LLP took place between September and November of 2011 and consisted of ACA International members and non-member contacts. Greg A. Cohen President & CEO Caine & Weiner 5 International Services G l .I al jig ;GCS Partner Locations Argentina,' Lebanon'= ,Agslrella Lithuania Austria -'Macedonia Bahreim '. Malawi Bangladesh Malaysia Belgium, Malta BermudaMauritius Bosnla ' Mexico Botswana ,Monaco Brazil .Netherlands Bulgaria New Zealand " Burma ;Nigeria Cambodia Norway Canada." ` ' Oman Caribbean Pakistan Chile `. Panama China Paraguay Colombia Peru Croatia Philippines Cyprus Poland Czech Republic Portugal Denmark Qatar Dominican Republic Romania Egypt Russian Federation El Salvador Saudi Arabia Estonia Serbia Fiji Singapore Finland Slovenia France South Africa Germany Spain Ghana Sri Lanka Greece Sudan Guam Sweden Hong Kong Switzerland Iceland Syria India Taiwan Indonesia Tanzania Iran Thailand Iraq Trinidad & Tobago Ireland Tunisia Israel Turkey Italy Uganda Japan UK Jordan Ukraine Kazakhstan United Arab Emirates Kenya USA Korea (south) Venezuela Kuwait Yemen Laos Zambia Caine & Weiner's global network of collection partners reduces the risk for businesses engaged in International commerce Caine & Weiner, as an active alliance partner of Global Credit Solutions (GCS) can provide debt collection and risk management services to companies conducting businesses outside of the U.S. Though our global network of GCS partners, we have full -service centers in 90+ countries, with over 4000 employees. With knowledge of local customs, cultures and proven collection experience in their respective countries, our partners communicate with your customers locally in their own language — providing a strategic advantage over creditors thousands of miles away attempting to reach them. Files are handled on a contingent basis. Legal action is undertaken only with the client's approval. Corporations engaged in business outside of the U.S. are better able to manage their accounts receivable and minimize their risk by leveraging strategic information. International services provided • 1st & 3rd party commercial & consumer collection services • Investigations • Due diligence reporting • Credit/ business Reports • Skip tracing • Credit risk management Investigations A comprehensive financial and background analysis allows our client to respond immediately to suspected criminal or civil wrongdoing. The report is individually researched and double -verified for accuracy. Due Diligence Reporting Due diligence reporting is available on every file, minimizing your risk and keeping you updated at all times on the status of your files. Credit/Business Reports Credit reports, ranging from verbal file checks to written trade and status reports are also available to you through our International services division. Corporate information regarding directors, shareholders, operations, trade and mercantile background as will as financial data is investigated and discreetly shared with you. Skip tracing, Process serving, litigation & Judgment execution One of the most frustrating experiences is to be unable to locate a person or the assets that will enable a recovery. We can carry out this vital task through our skip tracing resources in over one hundred countries. Credit Risk Management • Assess operations & procedures of customers • Identify areas where their may be exposure to risk • Determine options to reduce or offset the risk • Provide a comprehensive report with recommendations • Assist or implement agreed recommendations with management • Conduct audits to ensure recommendations achieve the desired effects G Some of our valued clients 00 Pitney Bowes Document Messaging Tuehnologles r A r fOR 1Hp �NlA 4�WR rtFfl p<1Np Buy.com 0 monster` c tibanW Cos Angetes F7k—stIC7- waters (j)CAPITOL x no is: A N I 7 #oogpodun an a,tugg ASSOCIATION With over 6,000 collection agencies in the U.S. to pick from doesn't it make sense to use the best? Tha Cmart Choice! Alliance Partners www.caine-weiner.com Los Angeles Chicago Louisville Buf NACM Midwest 'Caine &Weiner has been an excellent c, alliance partner for our Association over the past three years. They provide our membership Mitt exceptional service and outstanding resells. It has been great to be able to nod svnh such a reputable agency.' y ~ — Phil Lattanzio, CCE President of NACM Midwest For over seven decades the world's leading businesses have relied on Caine & Weiner's ' t,ommerouI thin Parry uentc.onecnons team of certified collectors to collect their bad debts and past due accounts. > Consumer Third Party Debt Collections ' Caine & Weiner is a leading Full -service Accounts Receivable Management Enterprise, > First Party outsourcing with a network of National .Collection Centers strategically located throughout the > International Credit. Collection & Investigation Services country. Client satisfaction is our highest priority. Since 1930 we have delivered > Letter -Writing Services outstanding performance and unmatched service to our world wide clients. ) What Sets Caine & Weiner apart.... Our team of tenured collection professionals, supported with cutting -edge technology, Bell has the skills to help you accomplish your accounts receivable management objectives. Collections are handled on a contingent collection basis —no collection no charge. > Collection Expertise in Every Major Industry Click here for your copy of.• > PIF2 - Maximum Recoveries 'Everything You Ever Wanted to Know About Collections But Were Afraid to Ask." > Impeccable Service > Thorough Accountability Professional & Ethical > Compliance CWConnect ' Global Credit Solutions Alliances & Partnerships ' Express Pay Accessing your Flies 11. .j lntemational services M Strategic business Partners Two caste on TheBiz Credit & Collection News from Caine & Weiner J Auto tales post best August in five years 4 SaP/Ezperian: Consumer defaults drop In August Caine & Weiner expands Southwest Center Woodland Hills, CA —On Monday, September 17th, following several weeks of preparations, normal business operations resumed at Caine & Weiners newest center in Addison, Texas located within the greater Dallas area. The move to larger facilities from their former site in Plano, TX. where they have conducted operations since May of 2010, was needed to accommodate Caine & Weiner's growing work force and provide the opportunity for continued expansion while managing their high level of customer service to their clientele. With increased demand for Caine & Weiners domestic and international accounts receivable management solutions and expertise, this latest relocation to larger facilities follows similar moves at each of their other centers in Los Angeles, Chicago, Buffalo and most recently in Louisville. full -service center and add to our existing staff," said Greg Cohen, Caine & Weiners President & CEO, "reflects our steadfast commitment to serve all our stake -holders in our on -going pursuit to deriver the optimal performance and exceptional service with the best -in -class industry professionals." The new office suite is located in the upscale Addison Plaza which is situated in a highly 16200 Addison Rd. Suite #190 desirable hub of commerce, providing access Addison, TX 75901 =' and greater visibility to the industry work force. 972-248-6499 972-248-7544 Fax Our decision to expand to a larger Southwest Foreclosure starts fell on annual basis in August By Alex Veiga Associated Press - LOS ANGELES—The evolution of the U.S. foreclosure crisis is increasingly diverging along state lines. On a national level, fewer homes were placed on the foreclosure track last month than in August last year, when they hit a 17 -year high, foreclosure listing firm RealtyTrac Inc. said Thursday. At the same time, so-called foreclosure starts increased .almost exclusively in states like -Florida and New York, where the courts must sign off an foreclosures, the firm said. Conversely, in many so-called non -judicial states, like California and Arizona, the number of foreclosure starts declined versus August last year. Full story Rising gas prices crimp Americans' spending By Christopher S. Rugaber Associated Press WASHINGTON -- Higher gas prices are crimping consumer spending and slowing the -already -weak. U.S.. economy. And they could get worse in the coming months. The -Federal Reserve this week took steps to boost economic growth. But those stimulus measures are also pushingoil prices up. If gas prices follow,consumers will have less money to spend elsewhere. The impact of the Fed's actions "is likely to weigh on the value of the U.S. dollar and lift commodity prices," said Joseph Carson, U.S. economist at Alliance Bernstein. "We would not be surprised if (it) fueled more inflation in coming months, squeezing the real income of U.S. workers." Americans are already feeling pinched by high unemployment, slow wage growth and higher gas prices. Consumers increased their spending at retail businesses by 0.9 percent in August, the Commerce Department reported Friday. But that was largely because they paid more for gas. Excluding the impact of gas prices and a sizeable increase in auto sales, retail sales rose just 0.1 percent. Perhaps more telling is where Americans spent less. Consumers cut back on clothing, electronics and at general merchandise outlets — discretionary purchases that typically signal confidence in the economy. Gas prices have risen more than 50 cents per gallon in the past two months. The national average was $3.87 a gallon on Friday. Most of the increase took place in August, which drove the biggest one -month increase in overall consumer prices in three years, the Labor Department said Friday in a separate report. "Consumers were not willing to spend much at the mall since they are feeling the pump price pinch," said Chris Christopher, an economist at IHS Global Insight. Weaker retail sales will likely weigh on growth in the July -September quarter. Economists at Bank of America Merrill Lynch slashed their third-quarter growth forecast to an annual rate of only 1.1 percent, down from 1.5 percent. That's not nearly fast enough to spur more hiring, which has languished since February. The Fed is hoping to kick-start growth with a series of bold steps announced Thursday that could make borrowing cheaper for years. Full story Richest 400 Americans' net worth jumps 13 percent to $1.7 trillion: Forbes B Dan Bums NEW YORK The net worth of the richest Americans grew by 13 percent in the past year to $1.7 trillion, Forbes magazine said,. and a familiar cast of characters once again populated the top of the magazine's annual list of the U.S. uber-elite, including Bill Gates, Warren Buffett, Larry Ellison and the Koch brothers. The average net worth of the 400 wealthiest Americans rose to a record $4.2 billion, the magazine said. Collectively, this group's net worth is the equivalent of one -eighth of the entire U.S. economy, which stood at $13.56 billion in real terms according to the latest government data. But the 13 percent growth in the wealth of the y Reuters richest Americans -far outpaced that of the economy overall, helping widen the chasm between rich and poor. Bill Gates, the chairman of.Microsoft Corp, :topped the list for the 19th year in a row with $66 billion, up $7 billion from a year earlier. Warren Buffett, chairman and chief executive of insurance conglomerate Berkshire Hathaway Inc, stood second with $46 billion, followed by Larry Ellison, head of software maker Oracle Corp, with $41 billion; and the Koch brothers, Charles and David, who run the energy and chemicals conglomerate that bears their name, Koch Industries, were tied for fourth with $31 billion, Forbes said. The ranks of the top five were unchanged from'a year earlier. Two notable names dropped from the top. 10, however. Casino- magnate Sheldon Adelson, also active in conservative political causes, fell to the 12 spot from No. 8 last year, and financier George Soros dropped five spots to No. 12 from the No. 7 position one year ago. The disappointing stock market debut of Facebook Inc also took a toll on the fortune of its founder and CEO, Mark Zuckerberg. His net worth fell by nearly half to $9.4 billion, and he slid to the No. 36 slot from No. 14 a year ago, Forbes said. Professional Service, Personal Attention —Proven Resultsl Demand for credit rises as overall consumer risk falls By Darren Waggoner Credit and Credit Risk Demand for consumer credit showed an increase of 21.4 percent in the second quarter ended June 30 compared with the year-ago period, according to TransUnion's Total Inquiry Index. "The increase in consumer -initiated inquiries indicates stronger consumer demand for credit, and may be a signal that consumers are beginning to increase their spending on discretionary items and larger -ticket purchases, reflecting stronger consumer sentiment and confidence toward the U.S. economy," says Charlie Wise, director of research and consulting in TransUnion's financial services business unit. TransUnion's Credit Risk Index, a gauge of the risk inherent in the U.S. credit -using population, fell in the second quarter, reversing the increases seen in the prior two quarters. A higher index indicates a higher level of credit risk. "it was good to see the credit risk level decline this quarter to roughly the same level it was last year," says Wise. "Delinquency rates for major loan types have all declined in the first half of 2012, and that contributed to the drop in the risk index in the second quarter." The Credit Risk Index decreased 1,57 percent in the second quarter compared with the prior quarter, from 123.98 to 122.03. On a year - over -year basis, the Credit Risk Index had a nominal 0.66 percent Increase. Delinquency rates for major consumer loan types, including: bankcard, auto, and mortgage, all declined on a quarter -over -quarter basis in each of the first two quarters of 2012. Delinquency rates for each of these loan types remained flat or declined year -over -year from 02 2011 to 02 2012, These improvements in loan delinquency rates have offset moderate increases in consumer borrowing: over the past year. Full Slimy Home sales jump to highest since May 2010 By Christopher S. Rugaber Associated Press WASONGTON — A jump in sales of previously occupied homes and further gains in home construction suggest the U.S. housing recovery is gaining momentum. Sales of previously occupied homes rose 7.8 percent in August from July to a seasonally adjusted annual rate of 4.82 million, the National Association of Realtors said Wednesday. That's the highest level since May 2010, when sales were aided by a federal home -buying tax credit. At the same time, builders broke ground on 2.3 percent more homes and apartments in August than July. The Commerce Department said the annual rate of construction rose to a seasonally adjusted 750,000. The increase was driven the best rate of single-family home construction since April 2010. The pair of reports comes amid other signs of steady progress in the housing market after years of stagnation. New -home sales are up, builder confidence is at its highest level in more than six years and increases in home prices appear to be sustainable. Auto sales post best August in five years By Bernie Woodall and Deepa Seetimamn Reuters DETROIT—Automakers turned in their All three Detroit automakers inctenaaeri best August since before the 2007-09- August sales more than analysts Road recession, with l S. monthly auto sales expected. rising 20 percent from a year ago as consumers with aging vehicles showed more confidence in buying big -ticket items on easier credit terms. Big sales gains were achieved by Japan's Toyota Motor Corp <7203.T> and Honda Motor Co <7267.T>, which continued to recover after last year's earthquake and tsunami. Total sales for the month wewe 1,285,202 vehicles, according to Autodata Corp, the highest m.. tty sales figure for any August state 20-07. when 1.47 million autos were sold: in the United States. "The reason for the improvement is that consumers are feeling better about makng big -ticket item purchases," said Jesse Toprak, autos analyst with TmreCancom. He also said that new models from Detroit and foreign automakers gave consumers"the best selection ever." The auto sales pace last month was the latest sign suggesting consumer spending fared better early in the third quarter after weak consumption held back economic growth to a 1.7 percent annual pace from April through June. Full story Caine & Weiner —Since 1930, the world -class accounts receivable management solution for the global business community Established in 1930 by Sidney Caine and Charles Weiner, the firm has offices strategically located across the country to service their 2,500 clients. S&P/Experian: Consumer defaults drop in August By Ben Fox Market Watch Consumer defaults in August declined for the eighth consecutive month, as nearly all loan types posted their lowest rates since the end of the recession, according to a monthly survey from Standard & Poor's Indexes and Experian PLC (EXPGY, EXPN.LN). The composite index recorded a post -recession low of 1.5% last month, down slightly from 1.51% in July. A year-earlier, the rate was 2.04%. Only auto loan default rates rose, to 1.09% from 1.01% in July. Still, the rate was below the 1.31% recorded a year ago. Bank card defaults fell to 3.77%, from 3.83% in July and 5.26% last year. First mortgage defaults dropped to 1.4%, from 1.41% in July and 1.92% a year ago. Second mortgage defaults fell to 0.72%, the lowest rate in its history of over eight years and below the 0.75% in July and 1.27% last year. "While continuing to fall, most of the August changes in default rates were small compared to what we saw in the first half of the year,' says David M. Blitzer, chairman of the index committee for S&P Dow Jones Indices. "As the consumers' financial condition continues to improve their credit default rates showed small changes from July to August, in most cases the trend was either down or flat." Geographically, default rates in August from July were flat in New York City, fell in Los Angeles, and rose in Chicago, Dallas and Miami. REPORT SAMPLES W C. E N t O O. C u C cc m o o b ry ry ry o �n m m m m m m m m �mo o n .+o�y Sni$.4 t6 d zm am+m. 2 }}a wwv m .m+o N Q m m m N N N N N N N N N N N N N N N N N m N N N N N N N ei ti N eel e1 N "'I r'I e'I 2 O eel ei ei ei ei 'i ei fi ei ei .i .4 O N N N N N N N N N N N N N N N N N N N N N eN\ O„„ O \\\ N\ O N N N N W m.� W W m.r ,y m.+ o ~ T 6 6 6} 0 O 6} 6 d d} Q O O❑ r<aata GG��a���aG d V1 p. d Q Q 6 6 6 d d d Q d 6 d 6 pd p p p p p O C0 Q b U) Ui IX!N N O O O O O S Lq m W. V, M b � mm.+m m n000000n vi b m b � e O V NNNNNNNNNNNNNNN I/�NNN N pN N N O O N Oml Q O ImVI O n e O m N N O b O N N 1I1 n e N O] m VI N N e1 VI N N N N N N N N N a p p p p op p O Otp m m n InO O.... 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Box 5010 Woodland Hills, CA 91365-5010 ASSIGNMENT DATE 06-01-06 TO 06-21-07 - - CLIENT: DEBTOR q DEBTOR NAME CLI-REF H DT-ASGM PN-ASGN PRN-COLL CAN-AMT BALANCE LST-PAY STS - 2204904 A 247750005 07-17-06 4796.00 0.00 4796.00 0.00 COB 2369917 A[ 263606803 10-03-06 4297.20 1000.00 0.00 3297.20 10-17-06 PAY 2342236 A[ 287243600 09-18-06 599.00 0.00 599.00 0.00 Cu 2856282 AT LTANTS 262526600 06-18-07 7440.00 0.00 0.00 7440.00 ACT 2389564 AT 203391300 10-12-06 698.75 698.75 0.00 0.00 12-15-06 PIF 2856285 AT FORMING 269510006 06-18-07 1225.00 0.00 0.00 1225.00 ACT 2176295 At RY 279557703 06-30-06 44120.50 0.00 44120.50 0.00 C08 2389565 AI 203424,804 10-12-06 11888.00 11888.00 0.00 0.00 10-20-06 PIF 2571816 AT 208782302 01-17-07 7892.64 2095.00 0.00 5797.64 03-19-07 LEG 2647375 AT 232950001 02-26-07 912.00 311.41 0.00 600.59 05-31-07 PAY 2239104 AI _ - 213321706 08-04-06 3120.00 3120.00 0.00 0.00 10-17-06 PIF 2136305 AT y x? 619400003 - 06-09-06 333.00 333.00 0.00 0.00 07-24-06 PIF 2342235 AT {, ; - 248489706 09-18-06 734.40 0.00 734.40 0.00 Cu 2342234 At "' i 284760000 09-18-06 698.75 698.75 0.00 0.00 09-25-06 PPA 2136307 Al ''3 �`�'--� iNARDINO 216087804 06-09-06 1198.00 0.00 1198.00 0.00 CIE 2136308 81 �`��" 7RPORATED 200580004 06-09-06 800.00 800.00 0.00 0.00 06-29-06 PIF 2856287 BE ur-rar..,' 253579303 06-1B-07 9593.02 0.00 0.00 9593.02 ACT 2204897 BI�j i''} ''A>j, 240763703 07-17-06 9192.80 9192.80 0.00 0.00 08-16-06 PIF 2850761 C -wx ! 261271006 06-14-07 500.00 0.00 0.00 500.00 ACT 2596909 Co 259512702 01-30-07 990.00 990.00 0.00 0.00 03-09-07 PIF 2666331 CI w5.. 1TRY 286929506 03-06-07 2198.24 2198.24 0.00 0.00 03-23-07 PIF 2225380 CI !G CARE 203696205 07-27-06 2096.25 2096.25 0.00 0.00 08-07-06 PIF 2489148 Cl r:; ",e!.,,;,..,� 31TY MS 251106402 12-05-06 1149.20 0.00 0.00 1149.20 ACT 2136306 CI^ 244732003 06-09-06 1500.00 1500.00 0.00 0.00 06-21-06 PPA x 2850765 C:.. 24552760E 06-14-07 3125.00 0.00 0.00 3125.00 ACT 2712283 C: c.<r:ee 275947700 04-02-07 2247.00 1400.00 0.00 847.00 05-22-07 PAY 217630E C 289440104 06-30-06 526.85 526.85 0.00 0.00 07-78-06 PIF 2749598 CI +,evN' 218447806 04-23-07 114.20 0.00 0.00 114.20 ACT 221189E C( f 258599600 07-19-06 2500.00 2500.00 0.00 -0.00 12-22-06 PPA 2136309 CI 272368806 06-09-06 825.00 825.00 0.00 0.00 07-18-06 PIF 2410794. CI .y .�ji 3E COMPAN 251669703 10-26-06 18468.00 18468.00 0.00 0.00 11-03-06 PIF 2615417 Cl 282532003 02-09-07 352.00 0.00 0.00 352.00 ACT 2369918 Cl :E 239802500 10-03-06 264.00 264.00 0.00 0.00 12-01-06 PIF 2204913 Di f 217822706 07-17-06 399.00 399.00 0.00 0.00 08-04-06 PIF 2821863 111 1 287462000 05.29-07 2229.00 0.00 0.00 2229:00 ACT 2204855 DI 1 299330301 07-17-06 9747.00 0.00 9747.00 0.00 BAN 2796440 DI EDIT) 054379102 05-21-07 660.00 0.00 0.00 660.00 ACT CLIENT INVENTORY PAGE 2 DEBTOR # 2796438 DEBTOR OR; NAME CLI-REF it 063348106 DT•ASGN 05-21-07 PN-ASGN 298.00 PRN-COLL 298.00 CAN-AMT 0.00 BALANCE LST-PAY 0.00 05-24-07 $IS PPA 2561481 E 1 226362603 01-11-07 4226.06 0.00 0.00 4226.06 MIT 2454069 EC( RIES 218758606 11-15-06 10058.00 10058.00 0.00 0.00 01-03-07 PIF 2211886 EN1 )EVELOPM 293533800 07.19-06 788.75 0.00 788.75 0.00 Cu 2369919 ESI 280247100 10-03-06 216.00 216.00 0.00 0.00 11-20-06 PIF 2204898 FA( 278341700 07-17-06 1983.75 1983.75 0.00 0.00 07-25-06 PIF 2204891 FL( 227633000 07-17-06 510.00 0.00 510.00 0.00 CU 2647374 FO( 245933004 02-26-07 10992.85 0.00 0.00 10992.85 ACT 2596910 FO( 281923600 01-30-07 9009.21 0.00 9009.21 0.00 COB 2290521 FIN 229043006 08-30-06 1869.00 1869.00 0.00 0.00 11-28-06 PIF 2204910 F01 285014800 07-17-06 930.00 930.00 0.00 0.00 08-03-06 PIF 2561483 FRI )1STRICT 247215301 01.11-07 2595.00 2595.00 0.00 0.00 01-24-07 PIF 2749600 PUP 219977704 04-23-07 425.00 0.00 0.00 425.00 ACT 2856289 G ! 649100001 06.18.07 1225.86 0.00 0.00 1225.86 ACT 2609216 GHI 244220900 02-05-07 3240.00 3240.00 0.00 0.00 03-27-07 PIF 2507634 GO( t";m^zx 242159503 12-13-06 5094.56 5094.56 0.00 0.00 01-30-07 PIF 2204906 AIR, L`s%,"'rc' 21 232166804 07-17-06 9312.22 7500.00 0.00 1812.22 06-20-07 PAY 2530305 GF 274983004 12-27-06 3450.00 3450.00 0.00 0.00 01-05-07 PIF 2176300 GRI 219393005 06-30-06 232.50 232.50 0.00 0.00 08-11-06 PIF 2204908 HAI �.:'rara ITION 265613504 07-17-06 905.00 905.00 0.00 0.00 03-27-07 PIF 2856290 HAIxaz 275131802 - 06.18-07 520.00 0.00 0.00 520.00 ACT 2680684 HAI,..,.,. 226244900 03-15-07 3265.50 0.00 3265.50 0.00 CAN 2530306 ME/ EAL ESTA 241384706 12-27-06 3745.10 3745.10 0.00 0.00 01-17-07 PIF 2596911 HIP B �"j ,' S 295613102 01-30-07 2176.00 2176.00 0.00 0.00 02-02-07 PIF 2410796 XDI q;2 240479805 10-26-06 2345.00 0.00 0.00 2345.00 ACT 2225373 NU[ INC 220344003 07-27-06 770.90 770.90 0.00 0.00 09-15-06 PIF 2342233 HUI -a:m'ws D CITY 272275006 09-18-06 2262.50 2262.50 0.00 0.00 11-03-06 PIF 2211884 IN- 275954000 07-19-06 2155.00 2155.00 0.00 0.00 08-07-06 PIF 2176299 IRI ?v'C:L:uid+lid $ 245194806 06-30-06 35850.00 0.00 35850.00 0.00 COB 2749602 IRA 2T.'?s � EGE OF 293886407 04-23-07 7091.10 7091.10 0.00 0.00 04.26-07 PPP 2465966 JM 233437503 11-22-06 3244.61 3244.61 0.00 0.00 01-30-07 PIF 2489149 JMI '''"�'�"g; 233437503 12-05-06 249.64 249.64 0.00 0.00 02-12-07 PIF RE CONSU 254759503 10-12-06 19105.80 17712.80 1393.00 0.00 11-22-06 CPN 2389566 J01 �:a�„t4% 2561485 J01 a.- (s. NO 289534803 01-11-07 300.00 300.00 0.00 0.00 01-12-07 PIF 2162881 JU! A. 264394DOI 06-22-06 582.00 582.00 0.00 0.00 06-30-06 PIF 2596912 KEI ax„.,�R,+ HOUSE 246769806 01-30-07 530.00 530.00 0.00 0.00 03-09-07 PIF 2647377 KE1 257881002 02-26-07 128.00 128.00 0.00 0.00 05-18-07 PIP 2465963 KI1 288739802 11-22-06 5304.78 0.00 5304.78 0.00 BAN 2389567 KII 256628702 10-12-06 4139.00 0.00 4139.00 0.00 COB 2455810 KII 271943302 11-16-06 3980.75 3980.75 0.00 0.00 02-14-07 PIF 2211889 Kit SUZUK1 296158203 07-19-06 1994.21 1994.21 0.00 0.00 08-07-06 PIF 2796441 LAI SNYDER 028934102 05-21-07 1160.25 0.00 0.00 1160.25 ACT 2732552 LEI NCY INC 661410002 - 04-16-07 1829.20 0.00 0.00 1829.20 ACT 2507635 Lit 285561500 12-13-06 275.00 0.00 275.00 0.00 Cu 2489150 LOI 222165005 12-05-06 2188.40 2188.40 0.00 0.00 12-12-06 PIF 2239105 MAI 202575004 08-04-06 10752.00 4480.00 6272.00 0.00 08-11-06 CPN 2561487 MAI 233675002 01-11-07 230.00 230.00 0.00 0.00 04-11.07 PIP 2225372 MAI AN 253870105 07-27-06 550.29 550.00 0.29 0.00 08-11.06 PIT CLIENT INVENTORY PAGE 3 DEBTOR # DEBTOR NAME CLI-REF # DT-ASGN PM-ASGN PRM-LOLL CAM-AMT BALANCE LST-PAY STS 2136303 M 275829805 06-09.06 535.00 535.00 0.00 0.00 06-12-06 PIF 2796442 M 050010203 05-21-07 712.00 0.00 0.00 712.00 ACT 2465964 M 258843605 11-22-06 121.52 0.00 121.52 0.00 Cu 2225371 M :LES 295934004 07-27.06 676.00 676.00 0.00 0.00 08-22-06 PIF 2546565 M 236929501 01-04.07 9595.00 9595.00 0.00 0.00 01-12-07 PIF 2530307 M 237976701 12.27-06 1397.50 1397.50 0.00 0.00 12-29-06 PPA 2211882 N KIP 214183804 07-19-06 1596.00 0.00 1596.00 0.00 Cu 2680683 N 247630902 03.15-07 5850.56 5850.56 0.00 0.00 04.25-07 PIF 2239107 N 296691603 08-04-06 235.11 235.11 0.00 0.00 08-18-06 PIF 2136304 0 270785804 06-09-06 1797.00 1797.00 0.00 0.00 06-27-06 PIF 253030E 0 273220905 12-27-06 4044.00 0.00 0.00 4044.00 ACT 2342238 01 ICES 263831201 09.18-06 232.50 0.00 . 232.50 0.00 CNL 2136310 0 ES INC 288610906 06-09-06 915.00 915.00 0.00 0.00 08.31-06 PIF 2749654 P, 265107006 04-23-07 1167.00 0.00 0.00 1167.00 ACT 2678434 P. ONG BEACH 215352605 03-14-07 9000.00 9000.00 0.00 0.00 05.18-07 PIF 2507636 P N 206845800 12-13-06 1400.00 0.00 1400.00 0.00 DUP 2530309 P" RVICES 248227000 - 12-27.06 2395.00 2395.00 0.00 0.00 01.12-07 PIF 2225370 PI T` ISING 612800005 07-27-06 3247.00 1623.50 1623.50 0.00 08.16-06 CPN Z369920 P 263679500 10-03-06 2190.00 2190.00 0.00 0.00 10-09-06 PPA 2239103 RI1'g' PROPERTIE 247143805 08-04-06 4556.16 4556.16 0.00 0.00 02.26-07 PIF 2647376 RI 228304904 02-26-07 4859.05 0.00 0.00 4859.05 ACT 2850766 RI %.. 215916304 06-14-07 12999.00 0.00 0.00 12999.00 ACT 2489151 RI 265613902 12-05-06 1024.00 1024.00 0.00 0.00 12-14.06 PIF 2680879 R: 236094703 03-15-07 5796.00 5796.00 0.00 0.00 04-30-07 PIF 2680878 Rf 264831803 03.15-07 3376.00 3376.00 0.00 0.00 05.23-07 PIF 2410797 SI pan:^„� 219528002 10-26-06 9057.00 9057.00 0.00 0.00 11-10-06 PIF 2596913 SI LLC 254138603 01-30.07 4005.00 4005.00 0.00 0.00 05-08-07 PIF 2850767 SI a mw a .�s 219673801 06-14-07 745.00 0.00 0.00 745.00 ACT 2796443 SI Y ° 055944103 05-21-07 1216.80 1216.80 0.00 0.00 06-07-07 PIF 2204858 Sf ( 266956701 07-17-06 9591.25 0.00 0.00 9591.25 LEG 2341957 S1 210132300 09-18-06 135.00 135.00 0.00 0.00 04.04-07 PIF 2821865 51 y9 FY 299958304 05.29-07 11270.00 100.00 0.00 11170.00 06.12-07 PAY 2561490 S1 217198601 01-11.07 837.00 0.00 .837.00 0.00 CAN 2162879 Si 628210004 06-22-06 12189.00 12189.00 0.00 0.00 08-15-06 PIF 2225376 SL 297266502 07-27-06 264.00 264.00 0.00 0.00 12-20.06 PIF 2204850 SL ;-max''" SSION HIL 288086503 07-17-06 7737.73 7737.73 0.00 0.00 08-31-06 PIF 2454109 TA 219691905 11-15.06 6268.00 6268.00 0.00 0.00 01-30-07 PIF 2796444 TE 018520202 05-21-07 702.00 0.00 0.00 702.00 ACT 2211887 TE IANCIAL 202430900 07-19-06 1807.00 0.00 1807.00 0.00 COB 2454110 TE 216090206 11-15-06 1117.50 1117.50 0.00 0.00 03-12-07 PIF 2796447 TH 041189105 05-21-07 1062.00 688.50 0.00 373.50 06.11.07 PAY 2489152 TH ;IVE SVCS 257829003 12-05-06 5235.00 5235.00 0.00 0.00 12-14.06 PIF 2561491 TI 273017006 01-11-07 3899.08 3899.08 0.00 0.00 03-28-07 PIF 2733972 TC :ONTROL 298894702 04.16-07 1292.75 0.00 0.00 1292.75 ACT 2530310 TC 239242802 12-27-06 1475.00 1475.00 0.00 0.00 02-28-07 PIF 2369921 TR 250800900 10-03-06 875.00 525.00 0.00 350.00 11-16-06 PAY 2666329 TU 233584503 03-06.07 1999.00 1999.00 0.00 0.00 03-27-07 PIF 2454111 UN AL 224802900 11-15-06 850.00 0.00 850.00 0.00 Cu CLIENT INVENTORY PAGE 4 DEBTOR k DEBTOR NAME CLI-REF N DT-ASGN PN-ASGN PRN-COLL CAN-AMT BALANCE LST-PAY STS 2561493 UNIX LIARY SERVICE 299370002 01-11-07 3246.00 3246.00 0.00 0.00 02-20-07 PPA 2850768 US A 260466006 06-14-07 2962.00 0.00 0.00 2962.00 ACT 2796445 VALLTHEATRE 069400203 05-21-07 2712.00 0.00 0.00 2712.00 ACT 2225378 VASTTION fl 290468802 07-27-06 698.75 698.75 0.00 0.00 07-31-06 PIF 2162880 WES%SOUND INSTIT 251614602 06-22.06 2701.60 2701.60 0.00 0.00 07-14-06 PIF 2342237 WEST 278718204 09-18-06 5400.85 5400.85 0.00 0.00 02-21-07 PIF 1715197 WIREIMUNICATIONS 218867305 03-28-07 3049.75 0.00 0.00 3049.75 ACT ACCOUNTS LISTED 140 NET ASSIGNED 391,164.10 TOTAL CANCELLED 136,469.95 TOTAL ASSIGNED 527,634.05 TOTAL BALANCE 118,195.59 TOTAL COLLECTED 272,968.51 Caine & Weiner 09:08AM 06-21-07 PERFORMANCE STATISTICS LST ASGN: 06-18-07 -------- ASSIGNED -------- ------ COLLECTED ------ ---CANCELLED--- -OPEN ACCOUNTS - IV AMOUNT AVG # AMOUNT % N AMOUNT p AMOUNT MONTH TO DATE 10 40335 4033 1 1897 0 1 837 10 40335 YEAR TO DATE 55 181073 3292 36 127422 43 16 105725 31 95607 TOTAL TO DATE * 2701 5403628 2001 1574 3300784 79 651 1208636 476 894208 * May vary from Client Inventory totals because of purging, abnormal updates, or status exclusions SUMMARY OF STATISTICS BY STATUS _______________________________ STATUS NUMBER ASSIGNED CANCELLED NET ASSIGNED COLLECTED BALANCE RCVY% ACT 28 80130.13 0.00 80130.13 0.00 80130.13 0.00 BAN 2 15051.78 15051.78 0.00 0.00 0.00 0.00 CAN 2 4102.50 4102.50 0.00 0.00 0.00 0.00 CNL 1 232.50 232.50 0.00 0.00 0.00 0.00 COB 6 99721.71 99721.71 0.00 0.0.0 0.00 0.00 CPN 3 33104.80 9288.50 - 23816.30 23816.30 0.00 100.00 CU 9 6672.67 6672.67 0.00 0.00 0.00 0.00 DUP 1 1400.00 1400.00 0.00 0.00 0.00 0.00 LEG 2 17483.89 0.00 17483.89 2095.00 15388.89 11.98 MRT 1 4226.06 0.00 4226.06 0.00 4226.06 0.00 PAY 7 29975.42 0.00 29975.42 11524.91 18450.51 38.45 PIF 70 216611.24 0.29 216610.95 216610.95 0.00 100.00 PPA 8 18921.35 0.00 18921.35 18921.35 0.00 100.00 140 527634.05 136469.95 391164.10 272968.51 118195.59 69.78 SUMMARY OF STATISTICS BY AGE OF ACCOUNT _______________________________________ CATEGORY NUMBER ASSIGNED CANCELLED NET ASSIGNED COLLECTED BALANCE RCVY% UP TO 30 35 250772.33 114885.99 135886.34 82228.88 53657.46 60.51 UP TO 60 19 97342.31 1807.00 95535.31 65267.45 30267.86 68.32 UP TO 90 36 76802.85 7407.46 69395.39 50589.40 18805.99 72.90 UP TO 120 36 89567.15 11257.50 78309.65 64494.57 13815.08 82.36 UP TO 180 12 11751.91 1112.00 10639.91 8990.71 1649.20 84.50 UP TO 360 2 1397.50 0.00 1397.50 1397.50 0.00 100.00 OVER 360 0.00 0.00 0.00 0.00 0.00 0.00 140 527634.05 136469.95 391164.10 272968.51 118195.59 69.78 SUMMARY OF STATISTICS BY AMOUNT OF ASSIGNMENT _____________________________________________ CATEGORY NUMBER ASSIGNED CANCELLED NET ASSIGNED COLLECTED BALANCE RCVY% UP TO 500 20 5304.47 629.02 4675.45 3284.25 1391.20 70.24 UP TO 1000 29 21077.44 4319.44 16758.00 12468.41 4289.59 74.40 UP TO 3000 39 71439.01 6001.00 65438.01 44920.25 20517.76 68.65 UP TO 5000 21 78911.26 13824.00 65087.26 42486.20 22601.06 65.28 UP TO 10000 20 153208.72 24060.99 129147.73 94913.60 34234.13 73.49 OVER 10000 11 197693.15 87635.50 110057.65 74895.80 35161.85 68.05 140 527634.05 136469.95 391164.10 272968.51 118195.59 69.78 COLLECTION LETTERS einer October 15, 2007 For. Ye Old Test Client Client # Ivan Glowinthedark too Desk # Mrs. Glowinthedark Account # Mr-1234 Cooling Tower -„ C&W Office - Fairfield, Ct 10601 Amount 21210 ERWrN STREET P.O. BOX 5010 WOODLAND HILLS, CA 91365-5010 TEL: (818) 226-6000 IAX:(818)226-6010 1 105 Aba123 (818) 902-4204 $633.64 We have been unable to reach you by telephone and have had no response to our correspondence. In accordance with our policy to give you an opportunity to amicably resolve this debt prior to seeking further remedies, which may adversely affect your credit history, we are again requesting your assistance in this matter. We therefore demand that your payment for the above stated balance be received in our office within ten (10) days from the date of this letter. If you have any questions, please contact the undersigned immediately: Failure to comply will result in further collection action, which may include attorney involvement and possible legal action In the event our attorney deems it necessary to file suit, you will be held liable for all attorney fees, interest, court costs and any other miscellaneous expenses arising from this action Sincerely, CAINE & WEINER For your convenience, we accept payment via the Internet fwwdet Rfp Visit our ExpressPay option at www.expresspay-cw.com (818) 902-4204 This is an attempt to collect a debt by a debt collector and any information obtained will be used for that purpose. NOTICE. SEE REVERSE SIDE FOR IMPORTANT INFORMATION. P.O. Box 8500 Van Nuys, CA 91409-8500 Address Service Requested RD198 PERSONAL & CONFIDENTIAL #BWNFMTN #0441 920013321548# Ivan Glowinthedark Mrs. Gloainthodark Mr-1234 Cooling Tower Fairfield, Ct 10601 . RD198 000167P 1071 000002189 044192 Z-CRE Make cbecks payable to Caine & Weiner, or for credit card payment You are hereby authorized to charge my credit card account Check one: 1 Visa 17 American Express ❑ MasterCard Card Number. _ _________ Expiration Date / / Paymlent Anlount too Cairn &Weiner P.O. Box 8300 Van Nuis. CA 91409-8300 IG Iw i d ldrdlhn � l h d n lul ddl udlw ll urt lu nLJ l ark" einer October 15, 2607 Ivan Glowiinledark Mrs. Glowinthedark Mr-1234 Cooling Tower Fairfield, Ct 10601 212A ERWAI STREET P.O. BOX 5010 WOODLAND HILLS, CA 91365-5010 TEL: (818) 226-6000 FAX: (818) 226-6010 For. Ye Old Test Client . Client # : 1 100 _ Desk # : 105 Account # : Abc-123 C&W Office (818) 902-4204 Amount : $633.64 Please refer to C&W# : 100 Dear SidMadant We are disappointed in your continued silence regarding the above unpaid balance. Your failure to discuss this debt is leaving us no alternative but to take further action in order to protect our clients interests. t You have ten (10) days from the date of this letter to contact the undersigned with arrangements to clear this balance. This is an attempt to collect a debt Any information will be used for that purpose Sincerely, For your convenience, we accept payment via the.Intemet FooedeZ Re,,r Visit our ExpressPay option at www. expresspay-cw. corn (818) 9024204 This is an attempt to collect a debt by a debt collector and any information obtained will be used for that purpose. NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION. P.O. Box 8500 , Make checks payable to Caine & Weiner, Van Nuys, CA 91409-9500" or for credit card payment Address Service Requested You are hereby authorized to charge my credit card account Check one: ❑ Visa: ❑ American Express - Cl MasterCard RD119 Card Number. ----.------------ PERSONAL & CONFIDENTIAL Expiration Date: ! ! Payment Amount #BWNFMTN #0441 920013321498# Si lure 4� Ivan Glominthedark 100 Mrs. GloHinthedark - - - Caine& Weiner Mr-1234 Cooling Tower- : P.O. Box 8500 Fairfield, Ct 10601 Van Nuys, CA 91409-8500 IidnuJh 61111n ddulnLwh I JLu16�JLnILuJrcll R0110 000147P 1071000002189044192 Z-GRE - ,�« EST. 1930 October 15, 2007 einer Ivan Glowinthedark Mrs. Glowinthedark 1234 Cooling Tower i3oston, AE 981.23 21210 ERWIN STREET WOODLAND HILLS, CA 91365-5010 TEL: (818) 226-6000 FAX: (818) 226-6010 For. Ye Old Test Client Client # : 1 100 Desk # :100 Account # : Abc-123 . . Direct Dial # : (818) 902-4206 Amount Due : $9459.63 Please refer to C&W# :100 Your account has been listed with our company for collection. This is an attempt to collect a debt and any information obtained will be used for that purpose. If paid in full to this office, all collection activity will be stopped. Unless you notify this office within 30 days after, receiving this notice that you dispute the validity of the debt or any portion thereof, this office will assume the debt is valid. If you notify this office in writing Within 30 days from receiving this notice, this office will obtain verification of the debt or obtain a copy of a Judgment and mail you A copy of such Judgment or verification. If you request this office in writing . within 30 days of receiving this notice, this office will provide you with the name and address of the original creditor, if different from the current creditor. To speak with us directly, contact us at (818) 902-4206. Sincerely, For your convenience, we accept payment via the Internet Vaedew'jf/ Visit our ExpressPay option at www.6xpresspay-ew.com (818) 902-4206 This is an attempt to collect a debt by a debt collector and any information obtained will be used for that purpose. NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION. P.O. Box 8500 Make checks payable to Caine & Weiner, Van Nuys, CA 91409-8500 or for credit card payment You are hereby authorized to charge my credit card account Change Service Requested. - Check one: ❑Visa 0 American Express ❑ MasterCard RDI01 - Card Number. _ _ _ _ — _ — — PERSONAL & CONFIDENTIAL Expiration Date: / / Payment Amount #BWNFMTN 90441 9200 2150 8326# Signature: Ivan Glowinthedark 100 Caine & Weiner Mrs. Glowinthedark P.O. Box 8500 1234 Cooling Tower Boston, AE 98123 Van Nuys, CA 91409-8590 ( ILIunJlddlluddJduhLlludhnlhnlluiJull auk" RD101000145P1 /03 OW002 e.044192 Z-CRE - NON COLLUSION AFFIDAVIT AFFIDAVIT Or NON -COLLUSION BY CONTRACTOR STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) G R e7G- fd . Ca N e') being first duly sworn deposes and says that he/she is Vie. s_ I e, t..t T' nn ei 5ek puner','Pannv :'Pnsidem.'Ssczap".er mha MaPer rinej of ((NC I (Je'I Ne It_ amen nam a!!lJderi who submits lrcrew•ith to the City of Vernon a proposal; That all statements of fact in such proposal are true; That such proposal was not made in the interest of or on behalf of any undisclosed person, partnership, company, association, organization or corporation: That such proposal is gennine and not collusive or sharp: That said bidder has not, directly or indirectly by agreement, communication or conference with anyone attempted to induce action prejudicial to the interest of the Citv of Vernon, or of any other bidder or anyone else interested in the proposed contract- and further Tbat prior to the public opening and reading of proposals, said bidder a. Did not drecdv or indirectly, induce or solicit anyone else to submit a false or shant proposal; b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else drat said bidder or anyone else would submit a false or sham proposal. or that anyone should refrain from bidding or withdraw his proposal: c. Did not; in any manner, directly or indirectly seek by agrcement, communication or conference with anyone to raise or fix the proposal price of said bidder or of anyone else, or to raise or Ls any overhead, profit or cost element of his proposal price, or of that of anyone else: d. Did not, directly or indirectly, submit his proposal price or any breakdown thereof or the contents thereof or divulge information or data relative thereto, to any corporation: partnership, c v, association, orgam7ntion, bid depository or to any member or agent thereof. or to any ndivid al or group of individuals, es rty of Vernon, or to any person or persons who „have artnership or other f interest with said bidder in his business. the above information correct „�� Title: 1h7re FEE & COST SCHEDULE EXHIBIT C EXHIBIT C SCHEDULE December 2012 Fees & Cost Schedule Caine & Weiner is pleased to offer our in-house collection activity at contingency fee rate of 20% of all monies recovered on each account. There are no other additional costs to the City of Vernon. Should an account be moved into the legal process, the contingency fee for recovery of funds moves to 25% of all monies recovered on each account. There are no other additional costs to the City of Vernon. Should the City of Vernon authorize litigation on a particular account, the contingency fee for recovery of funds moves to 30% of all monies recovered. For these files only the City may also be asked to front an estimated $450-$650 for initial filing and processing fees. These costs may be recoverable and would be reimbursed to the City when recovered. Los Angeles Chicago Louisville Buffalo Dallas www.caine-weiner.com EXHIBIT D EXHIBIT D LIVING WAGE PROVISIONS Minimum Livina Waaes: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an'additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. December 2012 EXHIBIT E EXHIBIT E EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities. B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. December.2012