HomeMy WebLinkAboutC2009-295 - 8/10/2009 - NAPage 1 of 9
SERVICE AREEI~ENT FoR HEM IIERIFI~ATI~N ANB ~IEK ~LLETI~N
SERIIIES BETWEEN HEKRITE BNB THE CITY OF CORPUS CHRISTI, TEXAS
This service Agreement for check 1lerification and check Collection Services the "Bervice
Agreement"} is made between quantum Financial Business Services LLC dba heckRite
~"heckRite"}, a Colorado business authorized to transact business in Texas, and the City of
corpus Christi, Texas {the "pity"~.
The purpose of this agreement i to specify the terms and conditions under Which heck~ite
Will provide check verification services and check collection services for dishonored checks
received by pity departments. heckite and the City agree as follouus:
~ . heckRite Will provide check verification services to pity departments by making available
its on-line check verification database services. The database lists names of individuals Who or
entities Which have made checks Which have been dishonored. heckRite shall not b held
responsible for any interruption or suspension of this on-line database service.
~. In addition to providing check verification services for pity departments, the pity
authorizes CheckRite to pursue collection of the face amount of all dishonored checks received
by the pity and referred to heckRite. heckRite agrees to attempt to collect payment of the
face amount of each dishonored check the "Dishonored Item"~ from the maker of the
Dishonored Iterr~, plus a 0.0~ Dishonored Item Fee. heckRite Will utilize the follov~ring
procedures to attempt to collect paymen# on the dishonored check: 1 ~ contact bank to verify
funds on daily basis cif the bank provides this service}; ~} Utilize lUloneyrar~ service to verify
open accounts; ~ Re-deposit check if funds available; ~} Re-deposit checks returned to maker;
} Bend at least letters to atter~pt collection; ~ Make at least 3 phone calls to attempt
collection. For redeposited checks, heckRite W`rll give copy of deposit information to City
Treasurer.
3. To facilitate collection efforts, Dishonored Items shall be sent directly from the City's
depository bank to heckRite in accordance With the bank authorization form attached as exhibit
~ . The pity agrees to sign one or more such bank authorization forms. heckRite shall
provide pity Treasurer With copies of the Dishanored Items Within five ~~ business days of
receipt from pity's depository bank.
4. The City shall send Dishonored Items to heckRite for collection irr accordance With the
terms of this Service Agreement. Nothing in this Service Agreement shall preclude the City from
attempting to collect any Dishonored item before or instead of sending such item to heckRite
for collection.
~. ~heckRite shall utilize the follouving procedures in its attempts to collect payment of all
Dishanored Items referred to it by the City:
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a. heckRite makes an electronic presentment through the AH~
b. The face ar~ount of the check carp be presented week one of the
representment process,
c. The fee amount can be collected the following week on the successful face
arr~ount collections -this prevents DheckRite from inadvertently collecting a
fee without first collecting the face amount.
d. All funds available for collection are electronically debited from the check
writer and credited to heckRite on the ~~~ business day.
e. Funds that are still NSF can be electronically presented one ~1 ~ additional
time. This is up to heckRite and can automatically be initiated through the
software.
~. Even if a Dishonored Item is returned to the pity for further collection activities, the name
of the maker of the item shall be kept on the heckRite check verification database until the pity
notifies heckRite that the Dishonored Item bas been paid. The pity shall take reasonable
steps to ensure that such notification is provided to DheckRite promptly after the date the pity
receives such payments.
7. In accordance with Section ~.~gB, Texas Business and omr~erce bode, heckRite
acknowledges that it ants under this Service Agreement as a person retained by the holder to
seek collection of Dishonored Iter~s. Also in accordance with the terms of Section 3.50, Texas
Business and commerce bode, ~heckRite has determined that it will charge makers of
Dishonored Iter~s a maximum processing fee of 30.0o as allowed by the State of Texas.
S. Generally, heckRite shall not accept payments for Dishonored Items that total less than
the fade amount of the items plus the 0.0~ processing fee charged by heckRite. If the maker
of a Dishonored Item attempts to make a partial payment in person, then heckRite shall not
accept such payment, Rather, it shall inform the maker that payment of the face amount of the
Dishonored Item plus the 3g.oo processing fee is required. ~f the maker of a Dishonored Iter~
attempts a partial payment to heckRite by mail, then heckRite shall return the payment with a
letter explaining that partial payments are not accepted and demanding both payment of the face
amount of the Dishonored Item and heckRite's processing 3o.g0 fee.
I~owever, on case by ease basis, the pity may authorize heckRite to accept a partial payr~ent,
upon execution of promissory note and approval of the Dity Director of Financial Services.
9. Grace a Dishonored lterr~ has been referred to ~heckRite for collection in accordance with
this Service Agreement, the Dity may at times accept partial or full payment for the Dishonored
item direct payments}. The Dity shall take the appropriate steps to ensure that such notification
is provided to DheckRite after the date that the pity receives such payment. The pity shall not
collect a service fee for ~heckRite but rather direct payment to ~heckRite offices.
9.1 Dredit bard payments. heckRite shall accept credit card payments up to ~,goo.0o.
Dheck Rite shall accept credit card payments up to ~,500.~~ with proper identification and
verification,
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10. vvhen any Dishonored Item is collected by DheckRite, it shall promptly pay to the pity the
face amount of the Dishonored Item. DheckRite shall make these payments to the Dity via ~H
electronic deposit na later than the next business day after the date heckRite receives payment
of the dishonored item.
~ 1. In addition to providing services under this service Agreement, and as additional
consideration to the pity far utili~'rng DheckRite as its check verification and check collection
service, ~heckRite agrees to pay to the Dity ~.gg of each O.Oa processing fee collected by
heckRite concerning Dishonored Items referred to it by the pity, ~heckRite will reimburse to
the pity ~ .o far each returned item. This does not include stolenlforged or existing Dity held
checks {old checks.
1 ~, once the maker of a Dishonored Item has paid CheckRite the face arr~ount of the item
and the processing fee, heckRite shall promptly remove the name of this maker from its check
verification database unless heckRite determines that there are other bases, unrelated to the
paid Dishonored Item, which justify the maker's continued inclusion in the heckRite check
verification database,
~ . 11a~riaus pity departments currently passes old Dishonored Items. The pity desires to
utilise heckRite's services to collect such Dishonored Items. The Dity may refer any
Dishonored Item to heckRite regardless of the age of the item. It is provided, however, that
with regard to items dishonored mare than forty-five {4}days before the date the pity refers
then to heckRite, ~heckRite Hoed not send the notices or letter previously described if the
required telephone contact process i unsuccessful. In that event, ~heckRite may re#urn those
items to the Dity for further collection activities. vllith regard to these older items, however,
heckRite expressly agrees to enter information in its check verification database,
14, To allow the pity to use the heckRite check verification database, heckRite shall
provide to the Dity central Dashierin Department verification terminals. ~heckRite shall
provide, at its awn expense, training to members of pity staff concerning the proper use and
maintenance of such terminals.
~ . heckRite shall provide, at its oven expense, installation, maintenance, and service far ar
replacement of all such terminals. heckRite shall also provide, at its own expense, supplies
necessary to operate such verification terminals. ~t is provided, however, that the pity shall
provide and pay for the installation of any telephone lines necessary to operate these terminals.
~heckRite shall provide updated terminals. DheckRite check verification terminals shall provide
automated response to pity employee within five ~~} seconds of check scan process by pity
employee.
~ ~. it is agreed that heckRite shall pay postage expenses incurred 'rn mailing the notices or
lei#ers previously described in this service Agreement.
~ ~. heckRite shall provide the pity with decals and customer notification cards. The Dity
may post these decals and distribute the cards to indicate that checks are verified and collected
by heckRite. such decals and ratification cards shall be provided at DheckRite's expense.
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17.1 After CheckRite has attempted collection on the check for ninety {0~ days, CheckRite
may report the check to credit bureau, There is no fee to the City for this service.
17.E After CheckRite has attempted collection on the check for ninety {g~~ days, CheckRite
shall refer the checks for collection through the Nueces County Attorney office. CheckRite
gill notify the City Director of Financial services of the checks referred to the Nueces
County Attorney office,
17,E After CheckRite receives checks back from the Nueces County Attorney office, CheckRite
shall return the checks to the City and no further collection effort is required by CheckRite.
18. The term of this service Agreement shall be one {1 }year from the date this service
Agreement is signed by the City N~anager or his designee. This service Agreement will be
renewed for an additional one year term upon the written request of the City Manager.
1 g. The City may terminate this service Agreement immediately and without notice far cause.
At any time after ~~} months after the date the City Manager signs this service Agreement, either
the City or CheckRite may terminate this service Agreement without cause upon thirty {~0}days
prior written notice to the other party. Upon termination of this service Agreement for any
reason, the City shall return check verification terminals, supplies, and unused decals and
notification card s to CheckRite. The City shall also remove CheckRite decals f rorr~ any locations
where decals are posted.
fig, Similarly, except as hereafter specified, upon ~ days' notice of termination of this service
Agreement for any reason, CheckRite shall discontinue collection efforts concerning Dishonored
Items and return any Dishonored Items in its possession to the City. ~Jnless the City directs
otherwise in writing, however, if CheckRite received payment of a Dishonored Item after the date
of termination of this service Agreement, CheckRite agrees to complete processing of such
items in accordance with the terms of this service Agreement.
~1. The City authorises CheckRite to include checking account information obtained from
Dishonored Iter~ referred to CheckRite for collection as part of the CheckRite check verification
database, The City understands and agrees that all CheckRite information is confidential and is
to be used for check verification purposes only.
~~. All CheckRite materials and information i confidential, for the exclusive use of the City far
the City's legitimate business needs, and will not be made available to third parties except as
required bythe Texas open Records Act, the Freedom of Information Act, orother applicable
laws, rules or regulations. Duplicating or copying, in any manner or form, CheckRite data, signs,
decals, forms or any other items furnished by CheckRite shall be prohibited.
2. CheckRite represents to the City that it gill comply with all applicable federal, state, and
Iocal lavers, rules and regulations in the performance of this service Agreement. This shall be
particularly true pith regards to laws, rules, and regulations relating to fair debt collection
practices.
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~4. CheckRite acknowledges that it acts under this Service Agreer~ent as an independent
contractor.
25. heckRite shall provide to any City departr~ent requesting such information, free of
charge, and at the time intervals requested, reports in fora requested by the City Director of
Financial Services or her designee which identify those individuals or entities which have
submitted Dishonored Items to the City and which correlate ACID deposit amounts received from
CheckRite with the Dishonored Items being paid. Such reports shall be altered to reflect data
that applies to the department requesting the report. Additionally, to the extent CheckRite has
the computer capabilities from time to time, it agrees to provide other reports to the City
departments if the preparation of such reports as feasible without additional expense to
CheckRite.
~~. From time to time, the City may require a copy of the front and back of a Dishonored
Item. CheckRite agrees to provide each copies upon request at CheckRite's expense.
~~. CheckRite shall provide to the City Treasurerr copies of all notices or any letter issued in
accordance with the terms of this Service Agreement. Such copies shall be provided at
CheckRite's expense.
2, As soon a possible after the date this Service Agreement is signed by the City Manager,
the City shall provide to CheckRite an executed state sales and use tax exemption certificate.
29. ~therthan the return of Dishonored Items to the City, notices or correspondence
concerning this Service Agreement shall be directed to the city and CheckRite as follows:
a} To the City
City Treasurerr
City of Corpus Christi
P.O. Box 927
Corpus Christi, Texas 749-971
b} To CheckRite:
operations Manager
CheckRite
ooo South Padre Island Drive, Suite 210
Corpus Christi, Texas 784~~
~o. Neither the City nor CheckRite shall assign its interest under this Service Agreement
without the prior written consent of the other. Failure to do so shall make the assignment void
for all purposes. such failure shall also form a basis for termination of this Service Agreement.
~~. This Service Agreement shall replace end supersede any written or oral agreements
between the City including any City department} and Checkite, This Service Agreement shall
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constitute the entire agreement between the City and CheckRite concerning the services to be
provided.
~ Check~ite must comply with all applicable Federal, state, and City laws and regulations
in performing Phis Contract, including the Fair Debt Collections Act.
~. CheckRite covenants to rnair~tair~ insurance averages as required in Exhibit B~ Before
activities can begin under this Contract, CheckRite's insurance coe~pany~ies} rr~ust deliver a
Certificate of Insurance, as proof of the required insurance coverages to the Contract
Administrator. Additionally, the Certificate must state that the Contract Adminitra#ar gill be
given at least a days written native of cancellation, rr~aterial change in the coverages, or intent
not to renew any of the policies by certified mail, The City must be Warned as an Additional
Insured on the Professional Liability policy. The CityAttorney must be given copies of all
insurance policies within 1~ days of the City Manager's written request. Insurance
requirements are attached and incorporated a Exhibit B, and may be revised annually by the
City Manager upon o days writken native to CHECKRITE.
4. The Contract Administrator designated by the City is responsible for approval of all
phases of performance and operations underthis Contract including authorizations far payment.
All of CHECKRITE natives or communications regarding this Contract must be directed to the
Contract Administrator, who is the Director of Financial services, or designee,
~. CHECKRITE veil! perform the services hereunder a an independent contractor and gill
furnish such services in its own manner and method, and under no circumstaeces or conditions
may any agent, servant, or employee of CHECIiRITE be considered as an employee of the City.
CHECKRITE shall release, defend, indemnify and hold harrr~les the City, its
officers, agents and err~ployee from and against any and all claims, losses, damages,
causes of action, suits and liability of every kind, including all expenses of litigation,
court costs and attorney's fees, including ~rithout limitation, damages for bodily and
personal injury, death and property damage, resulting from the negligent acts or
omissions of CHECI~~ITE, its officers, agents, or employees under this Contract.
CHECI~~ITE is expressly required to defend City against all such claims.
fi. ~ CHECICRITE will be given prompt written notification of any claims, lass, damage, suitor
liability of any kind and shall have the right to defend such action through use of its own counsel.
In its sale discretion, City shall have the right to select or to approve defense oounsel to be
retained by CHEC#~RITE in fulfilling its obligation hereunderto defend and indemnify City, unless
such right is expressly waived by City Manager in writing. City reserves the right to provide a
portion or all of its own defense, however, City is under no obligation to do so. Any such action
by City is not to be construed as a waiver of CHECK~ITE's obligation to defend City or a a
waiver of CHECI~RITE's obligation to indemnify City pursuant to this Contract. CHECICI~ITE
shall retain City approved defense counsel within seven ~~} business days of City's written notice
that City is invoking its right to indemnification under this Contract. If CHECICRITE fails to retain
Counsel within suoh time period, City shall have the right to retain defense oounsel on its awn
behalf, and CHECKRITE shall be liable far all oasts `recurred by City.
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7. All parties recognize that the continuation of any contract after the close of any fiscal year of
the pity, which fiscal gear ends on July 1 annually, is subject to appropriations and budget
approval providing for such contract item as an expenditure in that budget. The pity does not
represent that this antract will actually be adapted as a budget item, that determination is within
the sole discretion of the pity council at the time each budget is adopted.
. heckRite covenants to pay payroll taxes, property taxes, occupation taxes, Medicare taxes,
FICA taxes, unemployment taxes, and all taxes assessed to the pity or heckRite for any
activity under this contract. heckRite must provide proof of payment of these taxes within g
days after pity Manager's written request. Failure to pay or provide proof of payment is grounds
far the pity Manager to immediately terminate this antract.
9. The laves of the state of Texas shall govern the interpretation, validity, performance and
enforcement of this ontract~ The parties agree that this contract is performable in Nueces
bounty, Texas and that exclusive venue far any dispute under this contract lies in hlueces
bounty, Texas,
4g. Except as specifically provided otherwise in this agreer~ent any alterations, additions, or
deletions to the terms of this agreement shall be by amendment hereto in writing and executed
by both parties to this agreement. Modifications which do not change the essential scope and
purpose of this Agreement may be approved on behalf of the pity by the pity Manager or
designee.
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A~EED T~ BY:
Quantum ~~nan~ial Business services
~~~ CHEC~CRiTE
B
Y'
Name: fain
Title: President
Date: ~~~~~~ - . _ ~~~ ~..~
gage 8 of 9
CITYFC~RPU CHRITi
~~.
`Ange soo~ar
City anager
Date: a
Approved as to form this ~'~ day of ~ , ~~Og
B ;
Y
Lisa Aguilar
Assistant City Attorney
For City Attorney
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EXHIBIT B
INSURANCE REQUIREMENTS
I. HE~~CRITE' LIABILITY INURANE
A. ~HEKRITE must not comr~ence woriC under this agreement until all insurance required
herein has been obtained and such insurance has been approved by the pity.
~HEKRITE must not allow any subcontractor to commence v~rork until all similar
insurance required of the subcontractor has been obtained.
B. CHE~ICRITE must furnish to the Dity's Risk Manager two ~~} copies of Dertificates of
Insurance, showing the following minimum coverage by insurance company~s}
acceptable to the pity's Risk Manager. The pity must be named s an addi#ianal
insured far the Professional liability policy.
TYPE OF INUI~ANDE MINIMUM INSI~I~A~VE D~IIERAE
Q-Day Notice of Dancellation, material change, non- Bodily Injury and Property Damage
renewal or terminat~vn is re aired on ail certificates
~~MMERIAL GENERAL LIABILITY including: 2,~OQ,D00 COMBINED INCLE LIMIT
~, Commercial Farm
~, Premises - ~peraticns
3. Productsl ampleted Operations Hazard
4. contractual Liability
5. Independent Contractors
~. Personallnjury
PR~FEBBIONAL LIABILITY to include : ~,aQD,OQO COMBINED INLE LIMIT
~ . ER~QR AND OMMIf~N
EMPLOYEE DIHONETY ~ FIDELITY ~~RIME 5Q,00~
P~LI~Y
In the event of accidents of any kind, HEKRITE must furnish the Risk Manager with
copies of all reports of such accidents within ten ~1~~ days of any accidents.
Il. ADDITIQNAL REUIREMENT
A. er#ificate of Insurance:
* The pity of ~vrpus Christi must be named as an additionai insured on the
Professional liability coverage.
* If your insurance company uses the standard A~~RD form, the cancellation
clause bottom right} must be amended by adding the v~rording "changed a~'
between "be" and "canceled", and deleting the words, "endeavor to", and deleting
the wording after "left". In lieu of modification of the ACRD farm, separate
endorsements addressing the same substantive requirements are mandatory.
The Warne of the project must be listed under "Description of operations"
* At a minir~um, a ~0-day written notice of material change, non-renewal,
termination or cancellation to the Risk Manager is required.
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Quantum Financial Business Services
dba CheckRite of Corpus Christi
~~
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#h, ~4U~
August ~
Lisa Aguilar
Assistant City Attorney
City of Corpus Christi
X201 Leopard
Carpus Christi, Texas 754111
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subject; City of Carpus Christi 1 CheckRite of Corpus Christi Service Agreement
Lisa,
Fer our previous correspondence I am enclosing signed copy of the new draft
agreement between the City of Carpus Christi and CheckRite of Carpus Christi.
All of our processes will meet or exceed the specifics of the agreement ~
As an example line item 3 requires notice and copies to the City Treasurer within
days of receipt fro~u depository bank. fur standard process is to provide notice the
same day or following day in the A,M. to the City on with the exception of weekends
and holidays.
~n closing, we at CheckRite of Carpus Christi are honored to continue our
participation as a provider of check verification and collection services to the
City afCorpus Chrlstl ~
Respectfully Yaurs,
~~~~
Mike McClain
Tel. 361- 993 - 9370 or Toll Free 1- 800 - 840 - 3725
P.O. Boz 8650
6000 South Padre Island Drive Ste. 210
Corpus Christi, Texas 78468