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HomeMy WebLinkAbout4452 Resolution - Collection Agency ContractRESOLUTION NO. 4452 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE A COLLECTION AGENCY CONTRACT WITH WASHINGTON COLLECTORS TRI-CITIES, INC., FOR COLLECTION SERVICES. WHEREAS, the City of Pasco (City), under RCW 19.16.500(1), may retain collection agencies by written contract, to collect public debts owed by any person; and WHEREAS, the City has been utilizing Washington Collectors Tri-Cities, Inc. for collection services since November of 1999; and WHEREAS, Washington Collectors Tri-Cities, Inc has consistently delivered exceptional service, fostering a longstanding and mutually beneficial relationship with the City; and WHEREAS, the City Council of the City of Pasco, Washington, has after due consideration, determined that it is in the best interest of the City of Pasco to enter into a Collection Agency Contract with Washington Collectors Tri-Cities Inc. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council of the City of Pasco approves the terms and conditions of the Collection Agency Contract between the City of Pasco and Washington Collectors Tri-Cities, Inc. as attached hereto and incorporated herein as Exhibit A. Be It Further Resolved, that the City Manager of the City of Pasco, Washington, is hereby authorized, empowered, and directed to sign and execute said Collection Agency Contract on behalf of the City of Pasco; and to make minor substantive changes as necessary to execute the Contract. Be It Further Resolved, that this Resolution shall take effect immediately. PASSED by the City Council of the City of Pasco, Washington, on this 20th day of May, 2024. APPROVED AS TO FORM: ___________________________ Kerr Ferguson Law, PLLC _____________________________ Pete Serrano Mayor ATTEST: _____________________________ Krystle Shanks, CMC Deputy City Clerk Resolution – Collection Agency Contract - 1 City Attorneys Page 1 of 5 CITY OF PASCO COLLECTION AGENCY CONTRACT THIS CONTRACT is made and entered into by and between the City of Pasco, a municipal corporation of the State of Washington, hereinafter referred to as “City”, and Washington Collectors Tri-Cities, Inc., a collection agency duly licensed under and pursuant to the laws of the State of Washington, hereinafter referred to as the “Agent.” R E C I T A L S: WHEREAS, the City desires the Agent to undertake the collection of delinquent accounts from time to time in the manner and under the terms and conditions hereinafter set forth; and WHEREAS, the parties contemplate a future course of dealing as the City and the Agent, and desire to set forth and define herein the mutual rights, obligations, and liabilities of the parties hereto in such course of dealings. NOW, THEREFORE, in consideration of the promises and of the mutual agreements of the parties hereto, it is hereby agreed as follows: 1.AGENT APPOINTED: The City hereby appoints the Agent as its agent to collect and receive for the City all sums of money due and payable to the City of Pasco for debts which the City lists with the Agent. Where Municipal Court accounts are sent to the Agency, handling of all accounts is subject to the ongoing jurisdiction of the Pasco Municipal Court (the Court). 2.COMPLIANCE WITH LAW: The Agent shall comply with the collection laws of the State of Washington and Public Law 95- 109 (Fair Debt Collection Practices Act) and all Federal regulations and laws governing collections, including those mandated under the Health Insurance Portability and Accountability Act (HIPAA). New legislation affecting the City or the Agent with respect to terms and conditions of this contract shall be made a part of this contract by notice of either party to the other and in all cases compliance with the statute on its effective date shall be implemented until such time as an addendum to the contract can be written. 3.DEFINITIONS: A.“City” means the City of Pasco and all its departments and divisions, including, but not limited to the Finance Division and the Municipal Court. B.“Collections” means monies collected from Debtor by the Agent after date on which the Agent acknowledges receipt of the account. Remittance statements for collections will show amounts for principal, contingent fees and interest separately. Page 2 of 5 C. “Contingent Fees” means money due to the Agent from the City in payment for collection services rendered, pursuant to RCW 19.16.500 D. “Court” means the City of Pasco Municipal Court. E. “Debt” means unpaid amounts owed to the City including, but not limited to, utility billings, ambulance billings, cemetery or other miscellaneous billings referred by the Finance Division, plus unpaid infractions, criminal fines, civil judgments, and other costs, assessments and forfeitures that have been imposed by the Court. F. “Debtor” means any individual, partnership, corporation or other entity which owes money to the City. 4. TERM: A. This Contract shall continue in effect for a period beginning January 1, 2023, and ending December 31, 2027, unless earlier terminated as provided for in Section 10 of this contract. B. Except as authorized/directed by the Court, the City will not accept payment on any account which has been listed with the Agent, but will refer the debtor to the Agent for payment, and the City agrees that any holds (i.e., DOL adjudication, utility liens, abatement or code enforcement liens, other); will not be released until all principal, contingent fees and interest are satisfied. 5. COMPROMISE SETTLEMENT: Except as authorized/directed by the Court, the Agent shall not accept any compromise settlement of principal amounts due the City without prior approval of the City. Except as authorized/directed by the Court, the City shall not accept any compromise settlement of contingent fees and/or interest due the Agent without prior consultation with the Agent. After a case has been listed with the Agent for in excess of 30 days, for all cases not related to Court accounts, the City will limit requests for account cancellations to special circumstances (such as error or failure of reasonable notice) and prior consultation with the Agent. 6. RELATIONSHIP OF PARTIES: The Agent is an independent contractor, and nothing contained in this contract shall be construed as constituting the Agent as servant, agent or employee of City. The Agent is solely responsible for the employment, acts and omissions, control and direction of its employees. Page 3 of 5 7. INDEMNIFICATION: The Agent shall indemnify and save the City harmless from any and all claims, demands, or causes of action asserted against the City, arising out of or in any way connected with the collection activities of the Agent on accounts referred to the Agent by the City, except due to the sole negligence of the City. 8. DESCRIPTION OF SERVICES: Subject to the ongoing jurisdiction of the Court, the Agent’s services are to be provided under the following conditions: A. All costs associated with pre-collection and collection, including postage, supplies, and staff, will be provided by the Agent. B. Pre-collection services and monies collected during pre-collection are not subject to contingent fees. No monies will be collected by the Agent during pre-collection. All payments during pre-collection shall be forwarded to the City. C. Monies collected during regular collection will be subject to contingent fees and reported as applicable to the City Finance Division and remitted on a monthly (by the 15th of each month respectively) basis or reported as applicable to the Court and remitted on a monthly basis. In both cases, remittance statements will show principal amounts and contingent fees separately. Interest postings will be remitted monthly on a separate statement. D. In all cases where the Revised Code of Washington (RCW 19.16.500) allows contingent fees, such contingent fees will be added to the account balance pursuant to statute, at a rate of 40%, after pre-collection. Interest collected shall be split equally between the City and the Agent. E. Direct contact with Debtors will be by trained collection staff. F. The Agent will advance legal costs and have an attorney on retainer. G. The Agent will provide reports and a variety of specialize reports monthly. Semi- annual and annual recaps of performance, for all types of accounts, will also be provided. H. The License Restoration Program and its process will be at the discretion of the Agent, subject to the Court’s approval of the Agent’s policies and procedures. I. Subject to the ongoing jurisdiction of the Court, the City shall not waive or reduce the Agent’s processing fee without consultation with the Agent. J. If the City accepts payment on any account which has been listed with the Agent. Page 4 of 5 The City will forward payment to the Agent to be applied accordingly. K. In cases where payment is made by personal check, posting to release the hold will be made when the check clears. L. In cases where the Court places a “DOL” hold, the hold will remain in place until all principal, contingent fees and interest are satisfied. In cases where payment is made by personal check, a two-week clearing time will be placed on the posting before the “DOL” hold will be released. 9. KEY CONTACT PERSONS: The authorized contact personnel for the City are: • Finance Division o Darcy Buckley, Finance Director o Precilla Andaya, Utility Billing Manager o Felix Farias, Accounts Receivable Clerk • Municipal Court o Elizabeth Porras The key contact personnel for the Agent are: • Marcie Grace • Jeana Mathews 10. EARLY TERMINATION: Either party may at any time cause this contract to terminate without cause, upon giving ninety (90) days written notice to the other party. The contract shall terminate at the end of the ninety days. 11. ASSURANCE OF NON-DISCRIMINATION: The Agent hereby confirms, agrees to, and assures compliance with non-discriminatory practices consistent with Titles VI and VII of the 1964 Civil Rights Act as amended in 1972; Executive Order 11246 as amended by Executive Order 11375; Sections 503 and 504 of the Rehab ilitation Act of 1975 and the Age Discrimination in Employment Act of 1967; the 1974 Vietnam Era Veteran Readjustment Assistance Act; and the Washington State Laws Against Discrimination, Chapter 490 RCW. Page 5 of 5 Approved and executed on the _______ day of ____________________, 2024. WASHINGTON COLLECTORS TRI-CITIES, INC. _____________________________________ SEAN LAMB President Approved and executed on the _______ day of ____________________, 2024. CITY OF PASCO _____________________________________ Adam Lincoln, City Manager ATTEST APPROVED AS TO FORM: _____________________________________ _________________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys