Collection Agency Services

The Vendor is required to provide collection agency services of delinquent fees and fines of the city’s utility accounts.
- Requirement:
• Collection efforts shall include letters, skip-tracing, telephone calls, and credit bureau inquiries. Service provider may not take legal action against the debtor on behalf of the city.
• Service provider will not be allowed to settle any accounts for less than the total amount due without the authorization of the city.
• Able to effect collection in all 50 states.
• All letters to and correspondence with debtors must be of an informative and respectful nature.
• Approve all letters or correspondence prior to use.
• Any letters deemed by the city, at its sole discretion, to be of a harassing nature are forbidden to be utilized for collection purposes.
• All development and postal costs of any kind are to be bome by service provider.
• Required reports: the service provider shall provide an annual report of accounts that are not collectable and provide the reason(s) as to why each account is not collectable.
• The service provider shall submit a monthly report, on the first business day of each month, detailing cumulative data reports that reflect, at a minimum, the following:
o Aged receivables by category of debt, i.e., business license, court fine, development fees, etc.
o The dollar amount of debts collected cumulative to date.
o Status of each debtor while in the process of collection.
• Service provider must be able to receive and send documents and communications electronically from inception of the contract and throughout the life of the contract.
• The service provider must be able to communicate through e-mail and data transfers (FTPS).
• The service provider must also have the ability to use city-owned applications via a secure network and agree to follow the city's computing and IT policies.
• Its employees, and its agents shall perform the work as independent providers and not as agents, representatives, joint venturers, partners, or employees of the city.
• The number of accounts and which accounts are sent to the agency will be determined solely by the city.
• Any change in ownership or management of the service provider will be communicated to the city within 30 days.
• The city reserves the right to immediately terminate this contract, at its discretion, with any change in ownership.
• Financial records pertaining to the contract will be available to the city auditor at any time.
• Copies of any and all records relating to accounts turned over to service provider shall be given to the city upon request without additional cost to the city.
• Prior to the commencement of work, the service provider shall submit a current occupational license and all permits required to complete this contractual service at no cost to the city.
• Suspend any and all activity on any case or debt category at the written request of the city.
• Immediately notify the city if any of its employees is a party to any debt turned over to the proposer for collection.
• Obtain a city business license and be bonded and insured.
• Submit audited financial statements, prepared and certified by a CPA, on an on-going basis at the request of the city.
• All usual and customary costs incurred as a result of collecting accounts and any costs of automation equipment, installation of data lines, printing, postage, and equipment costs will be borne by the service provider and are not subject to reimbursement by the city.
• Collection activities will be in compliance with federal, state, and local laws and regulations, be courteous and business-like, and consistent with the image and reputation of the city.
• Collections made by service provider on the city's accounts will be reported to the city on a monthly basis.
• All collections made by service provider on the city's accounts will be remitted to city after deduction of the service provider's collection fee.
• City agrees to provide service provider with information on all direct payments, adjustments, and disputes within a timely manner, within 30 days.
• If this information is not provided to the service provider per, there may be a fine for any information not provided to the service provider.
• The city will be responsible for any and all fines for information not provided to the service provider.
• The collection fee on payments made to service provider and directed to the city on accounts placed with the service provider will be in accordance with requirements.
• The city authorizes service provider to settle for 85% of the account balance if this is the only way to collect the account in a timely manner.
• Add interest to accounts, as state law provides, and retain 100% of interest collected to offset expenses and supplement lower collection fees.
• Initiate any form of legal action without prior written authority from the city.
• Legal action is authorized, the city will execute a written assignment of the account.
• Legal action will be brought in the name of service provider to further indemnify the city.
• All legal action accounts will be charged at the rate of 40%.
• Responsible for all legal fees and court costs with reference to accounts placed for collections by the city
• Obligated to file suit on any account referred by the city.
• Legal fees and court costs will be retained out of first monies collected.
• Audits of service provider may be performed from time to time by the city or persons retained by the city, to include a review of service provider's collection efforts, adequacy of cash controls, promptness of recording and remitting payments, compliance with this agreement, and any other normal audit procedures.
• Accounts placed in error by the city with service provider for collection may be withdrawn by the city upon written or oral request.
• Cancel and return said account along with all media and data pertaining to said account that the city provided.
• Retain the right to commissions on payments, settlements, and insurance accounts, unless other arrangements are made with the city.
• The event the debtor moves out of the area serviced by service provider, the service provider may forward the account to an associated service provider located in the debtor's area.
• Remain responsible to the city for all collection activity on forwarded accounts.
• Further consideration for the receipt, handling, and collection of accounts by the service provider, and for the services rendered to the city by service provider, the service provider shall indemnify and defend the city against any claims made by a third party against the city and the service provider.
• Service provider, being an independent service provider and licensed and bonded under N.R.S. 649, is solely responsible for the employment, acts, omissions, control, and direction of its employees.
• Employees are the proximate cause of any action brought against the city, service provider will assume full responsibility for the defense of said action and payment of any resulting judgment.
• Termination or cancellation by either party will not affect the collection enforcement or validity of any accrued obligations between the parties.
• Retain commissions on paying accounts, settlement accounts, and insurance accounts as well as the right to recover any court costs advanced on said accounts.
• All accounts returned to the city by city request may be charged by service provider at the rate of $5.00 each to cover set up costs.