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Home My WebLink AboutCAG2002-0451 - Original - Alliance One Receivables Management, Inc. - Law Department Collection Services - 11/26/2002 NT Records Management �� KE Document CONTRACT COVER SHEET This is to be completed by the Contract Manager prior to submission to City Clerks Office. All portions are to be completed, if you have questions, please contact Mary Simmons, City Clerks Office. Vendor Name:J ( i aj-)c-e-i3t-) e C-2 i yaiolfrsm -)G Contract Number: This is assigned by Mary Simmons Vendor Number: Project Name: I Contract Effective Date: Contract Termination Date: --�� Contract Renewal Notice (Days): i C-► 1 r 1C1 U/ Number of days required notice for termination or re i wal or amendment Contract Manager: I i Department: 1--- ct—� Abstra ADCL7832 07/02 AllianceOne Receivables Management,Inc. COLLECTION SERVICES AGREEMENT THIS AGREEMENT is entered into between the CITY OF KENT, hereinafter called "CITY;' and AllianceOne Receivables Management Inc., a Delaware Corporation, hereinafter called AOI. This agreement shall be considered as an addendum to that certain King County Contract No M10166K but shall also be effective on its own terms should said King County Contract expire or otherwise be inapplicable in whole or part For and in consideration of the compensation hereinafter described and the covenants and conditions herem contained,the parties agree as follows 1 Assignment of Accounts. CITY will assign to AOI for collection such delinquent accounts, hereinafter called"accounts,"as CITY deems appropriate. 2. Collection Efforts AOI will use commercially reasonable efforts to collect said accounts, and will confine its efforts to the highest standard of ethical practice The CITY and AOI recognize that the appropriate level of activity may vary according to the type of account, the account balance and the information available. 3 Debts Just and Owing. CITY certifies that every account referred will contain accurate information and will be lust and owing, and will not be subject to any valid defense,set-off or counterclaim, including that such account or the obligor of such account will not be subject to any bankruptcy proceeding,stay or discharge as of the time of referral. 4 Compliance with Law. AOI's collection activities shall comply with federal,state and local laws,including the Fair Debt Collection Practices Act(FDCPA),where applicable. 5. Legal Action. No legal action will be commenced on any account without written permission, fist obtained, from CITY. Legal action commenced under this agreement shall be in the name of AOI and not CITY. AOI will promptly advise CITY if any legal action is contested CITY will provide evidence as requested by AOI to support approved legal action, including providing a witness or witnesses for live testimony if requested Unless otherwise agreed, legal costs and fees will be paid by AOI and not CITY, and will be recoverable from the DEBTOR where allowed by applicable law, out of fast momes recovered. 6 Indemnification Each party will indemnify and hold harmless the other party from and against any and all claim and causes of action,be they meritorious or otherwise,asserted against the other party except for claims and causes of action resulting from errors or omissions of the other party,and each will reimburse the other for costs and legal expense incurred in connection therewith 7 Severability In the event any term or condition of this Agreement or application thereof to any person or circumstance is held invalid, such invalidity shall not affect other terms, conditions, or applications of this Agreement which can be given effect without the mvand term,condition,or application To this end the terms and conditions of this Agreement are declared severable COLLECTION SERVICES AGREEMENT Page 2 8 Compensation. Compensation to AOI will be a percentage of the original account balance, which,whenever allowed by law,will be assessed as a CITY cost to the account at the time of assignment, pursuant to RCW 19.16 500 and KCC 1.04 090 When collected, this will result in the return to the CITY of 100% of the original assigned amount,as follows• a Upon placement of an account by CITY with AOI, a CITY cost will be assessed as a collection fee to the account in the amount of 24% of the balance of the account for primary referrals. AOI will retain as its fee 19 35% of the funds collected. b Upon placement of an account that has previously been reduced to Judgment by the CITY,no additional collection cost may be added When a Judgment account is collected, AOI will retain 19.35% of the total Judgment amount as its fee. C. AOI will charge interest, at the rate of 12% per annum, on accounts assigned for collection All interest collected will be shared equally d The CITY cost will be computed and added to the principal balance by AOI's computer system at the time the account as referred to A01 at the above listed rates e The CITY reserves the right to recall an account from collecbon at any time without penalty to the CITY. 9 Remittance. Payments on accounts made to A01 will be remitted by A01 to CITY, less AOI's portion, on a monthly basis If payment is made by a debtor without specific direction as to the account that is to be paid A01 will remit those funds to the oldest account first 10 Payments to CITY. A payment made on behalf of a debtor directly to CITY on an assigned account will be promptly reported to A01 by CITY 11 Negotiable hstruments. CITY authorizes AOI to endorse checks or other instruments payable to CITY and deposit same into a trust account separately maintained by AOI. CITY further authorizes AOI to send notices of dishonor or other notices on CITY's behalf for dishonored instruments, to assess and collect any permissible dishonored instrument fees,and to retain any recovered fees per compensation section of this agreement,whether such instruments were issued before or after assignment of the account 12. Account Audits. CITY may audit A01's records pertaining to accounts assigned for collection upon reasonable notice 13 Term and Termination. This agreement will remain in effect until terminated by either party. Any assignments by CITY and work performed by AOI prior to the signing of this Agreement is specifically, approved by the parties and ratified by this Agreement This Agreement may be terminated in whole or in part from time to time when deemed by the CITY or AOI to be in its best interest Termmabon of work hereunder shall be effected by delivering to a party a Notice of Termination thirty(30)days prior to the specified effective date, detailing the extent to which performance of work under this Agreement is terminated. 14. Non-disrnmmation A01, in its collection efforts, will not discriminate against any DEBTOR on the basis of race, color, creed, religion, sex or national origin. A01 will comply with the requirements of the Americans with Disabilities Act of 199Z and all regulations interpreting or enforcing said Act 15. Beneficiaries to Contract. This Agreement is entered into for the benefit of CITY and AOI No third-party beneficarres are intended to be created or are created hereunder. COLLECTION SERVICES AGREEMENT Page 3 16 Entire Agreement This Agreement, along with King County Contract No M10166K constitutes the entire understanding between AOI and CITY regarding collection services provided to CITY by AOI, and may not be modified except by written agreement signed by both parties IN WITNESS WHEREOF,the parties have executed this contract on the date last written below AllianceOne Receivables Management,Inc. CITY OF KENT BY: �__�^�I BY. T2R,e y 4) E/KFL TITLE. SR glee 9',2e6lde-n f TITLE C;ayor t Atto{ney ADDRESS 6565 Kimball Drive,Suite 200 BY P O Box 2449 Gig Harbor,WA 983354449 TITLE ADDRESS• 220 4th Avenue South Kent,WA 98032 DATE- DATE. /1' c-;t,