HomeMy WebLinkAboutC2010-224 - 6/29/2010 - ApprovedCONTRACT
Collection Sexvices Contract
THIS Collection Services CONTRACT {this "Agreement") is entered into by and
between Credit Systems International, Inc. (the "Contractor") and the City of Corpus Christi, a
Texas home-rule municipal corporation {the "City") effective far all purposes upon execution by
the Assistant Director of h'inancial Services.
WHEREAS Contractor has proposed to provide Collection Services in response to
Request far Information No. BI-0176-10 which is incorporated and attached as Exhibit A;
WHEREAS the City has determined Contractor to be the overaIl best value provider;
NOW, THEREFORE, Contractor and City enter into this Agreement and agree as
follows:
1. Services. Contractor will perform Collection Services in accordance with BI-017b-
10.
2. Term. This Agreement is for twelve {12} months commencing on the date of
final execution of the parties. The term includes an option to extend for up to two additional
twelve-month periods subject fo the approval of the Contractor and the Assistant Director of
Finacial Services or his designee.
3. Contract. Administrator. The Contract Administrator designated by the City
is responsible for approval of all phases of performance and operations under this Agreement
including deductions for non-performance and authorizations for payment. All of the
Contractor's notices or communications regarding this Agreement must be directed to the
Contract Administrator, who is the Utility Business Office Manager or her designee.
4'. Independent Contractor. Contractor will perform the services hereunder as
an independent contractor and will furnish such services in its own manner and method, and
under no circumstances or conditions may any agent, servant or employee of the Contractor be
considered an employee of the City.
2010-224
M2010-154
OG/29110
Credit Systems International
Rev. 4-96
IND~D
5. Insurance. Before activities can begin under this Agreement, the Contractor's
insurance company(ies} must deliver a Certificate of Insurance, as proof of the required
insurance coverages to the Contract Administrator. Additionally, the Certificate must state that
the Contract Administrator will be given at least thirty (30} days notice, by certified mail, of
cancellation, material change in the coverages or intent oat to renew any of the policies. The
City must be named as an Additional Insured. The City Attorney must be given copies of all
insurance policies within 1 S days of the City Manager's written request.
6. Assignment. No assignment of this Agreement or any right or interest therein by
the Contractor is effective unless the City frst gives its written consent to such assignment. The
performance of this Agreement by the Contractor is of the essence of this Agreement and the
City's right to withhold consent to such assignment is within the sole discretion of the City on
any ground whatsoever.
7. Fiscal Year. All parties recognize that the continuation of any contract after the
close of any fiscal year of the City (the City's fiscal year ends an July 31~`), is subject to
appropriations and budget approval providing for covering such contract item as an expenditure
in said budget. The City does not represent that said budget item will be actually adopted as that
determination is within the sole discretion of the City Council at the time of adoption of each
budget.
8. Waiver. No waiver of any breach of any term or condition of this Agreement, or
the Contractor's offer to Bid Invitation No. BI-0176-10 waives any subsequent breach of the
same.
9. Compliance with Laws. This Agreement is subject to all Federal laws and laws of
the State of Texas. All duties of the parties will be performed in the City of Corpus Christi,
Texas. The applicable law for any legal disputes arising out of this Agreement is the law of
Texas and such form and venue for such disputes is the appropriate district, county or justice
court in and far Nueces County, Texas.
10. Subcontractors. The Contractor may use subcontractors in connection with the
work performed under this Agreement. When using subcontractors, however, the Contractor
must obtain prior written approval from the Contract Administrator. In using subcontractors,
the Contractor is responsible for all their acts and omissions to the same extent as if the
subcontractor and its employees were employees of the Contractor. All requirements set forth as
part of this Agreement are applicable to all subcontractors and their employees to the same
extent as if the Contractor and its employees had performed the services.
AG2210.004.ajr Rav. 9-96
11. Amendments. This Agreement may be amended only by written Agreement duly
authorized by the parties hereto and signed by the parties.
12. Termination. The City Manager may terminate this Agreement for Contractor's failure to
perform the services specified in Bid Invitation No. BI-0176-I0. Failure to keep all insurance policies in
force for the entire term of this Agreement is grounds for termination. The Contract Administrator must
give the Contractor five (5) wor(C days written notice of the breach and set out a reasonable opportunity to
cure. If the Contractor has not cured within. the cure period, the City Manager may terminate this
Agreement immediately thereafter.
Alternatively, the City may terminate this Agreement upon twenty (2Q) days written notice to the
Contractor. However, the City may terminate this Agreement on twenty-four (24) hours written notice to
the Contractor for failure to pay or provide proof of payment of taxes as set out herein.
13. Taxes. The Contractor covenants to pay payroll taxes, Medicare taxes, FICA taxes,
unemployment taxes and all other related taxes according to Circular E Employer's Tax Guide,
Publication 15, as it may be amended. -Upon his request, the City Manager shall be provided proof of
payment of these taxes within fifteen {15) days of such request. Failure to pay or provide proof of
payment is grounds for the City Manager to immediately terminate this Agreement.
14. Drug Policy. The Contractor must adopt a Drug Free Workplace and drag testing policy
that substantially conforms to the City's policy. The City has azero-tolerance drug policy.
15. Violence Policy. The Contractor must adopt a Violence in the Workplace and related hiring
policy that substantially conforms to the City's policy. The City has azero-tolerance violence in the
workplace policy.
1fi. Notice. Notice may be given by fax, hand delivery or eertifed mail, postage prepaid, and is
received on the day faxed or hand-delivered and on the third day after deposit if sent certified mail.
Notice shall be sent as follows:
IF TO CITY:
City of Corpus Christi
Attention: Utility Business Office Manager
P.O. Box 9277
Corpus Christi, Texas 78469-9277
Fax No.: {361} 826-3174
AG2210.004.ajr 1tev. 9-96
1F TO CONTRACTOR:
Contractor Credit S stems lnternationai Inc.
Contact Kathy Faith
Address: 1277 Country Club Lane
City, State, Fort Worth TX 76112-
Fax No.: 817-429-9696
I7. Month-to-Month Extension. If the City has not completed the procurement process and awarded a
new Agreement upon expiration of the original contract period or any extension period, the Contractor
shall continue to provide goods/services under this Agreement, at the most current price under the terms
of this Agreement or extension, on a month-to-month basis, not to exceed six months. This Agreement
automatically expires on the effective date of a new contract.
18. Severability. Each provision of the Agreement shall be considered to be severable and, if,
for any reason, any such provision or any part thereof, is determined to be invalid and contrary to any
existing or future applicable law, such invalidity shall not impair the operation of ar affect those portions
of this Agreement that are valid, but this Agreement shall be construed and enforced in all respects as if
the invalid or unenforceable provision or part thereof had been omitted.
CONTRACTOR AGREES TD INDEMNIFY, HOLD HARMLESS AND DEFEND THE~CITY OF CORPUS
CHRISTI AND ITS OFFICERS, EMPLOYEES AND AGENTS (INDEMNITEES) FROM AND AGAINST
ANY AND ALL LIABILITY, LOSS, CLAIMS, DEMANDS, SUITS AND CAUSES OF ACTION OF ANY
NATURE ON ACCOUNT OF DEATH, PERSONAL INJURIES, PROPERTY LOSS OR DAMAGE OR ANY
OTHER KIND OF DAMAGE, INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS,
ATTORNEYS' FEES AND EXPERT WITNESS FEES WHICH ARISE OR ARE CLAIMED TO ARISE OUT
OF OR IN CONNECTION WITH THIS CONTRACT OR THE PERFORMANCE OF THIS CONTRACT,
REGARDLESS OF WHETHER THE INJURIES, DEATH OR DAMAGES ARE CAUSED OR ARE
CLAIMED TD BE CAUSED BY THE CONCURRENT OR CONTRIBUTING NEGLIGENCE OF
INDEMNITEES, BUT NOT BY THE SOLE NEGLIGENCE OF INDEMNITEES UNMIXED WITH THE
FAULT OF ANY OTHER PERSON OR GROUP. CONTRACTOR MUST, AT ITS OWN EXPENSE,
INVESTIGATE ALL CLAIMS AND DEMANDS, ATTEND TO THEIR SETTLEMENT OR OTHER
DISPOSITION, DEFEND ALL ACTIONS BASED THEREON WITH COUNSEL SATISFACTORY TO
INDEMNITEES AND PAY ALL CHARGES OF ATTORNEY AND ALL OTHER COSTS AND EXPENSES
OF ANY KIND ARISING FROM ANY OF SAID LIABILITY, DAMAGE, LOSS, CLAIMS, DEMANDS OR
ACTIONS. THE INDEMNIFICATION OBLIGATIONS OF CONTRACTOR UNDER THIS SECTION
SHALL SURVIVE THE EXPIRATION OR SOONER TERMINATION OF THIS AGREEMENT.
AG22] D.004,ajr Rev. 9-96
SIGNED this ~~ay of U/h-Q~ 2010
Contractor Credit Systems International, Inc.
Title: J2/c~Io~2. ~c7" . ~X~~ .
1 ~' `~ ~ ~~ ~ ~Jr~F AUTl1ARiIE~
RY CUUNCIL..,~~,~~
.~~
S~CfRErfARY ~•
APPROVED THIS DAY OF ~ 2410
CARLOS VALDEZ, CITY ATTORNEY
By: ~~ •'
Veronica Ocaflas
Assistant City Attorney
Exhibit A: Bid Invitation No. BI-0176-10
Exhibit B: Insurance Requirements
Exhibit C Credit Systems International, Inc. -Cost, Conditions, Clarifications, Exceptions
AG2210.004.ajr Itev. 9-46
Assistant Director of Financial Services
EXHIBIT A
CITY OF CORPUS CHRISTI
REQUEST FOR INFORMATION
COLLECTION SERVICES
INTRODUCTION
LO PURPOSE
1.1 The purpose-of the Request for Information is to solicit Letter of Interests from
collection agencies that are qualified and experienced in collecting past due or
delinquent accounts; to collect, account for, submit and report funds representing
delinquent accounts receivable to the City of Corpus Christi. These accounts include
miscellaneous receivables and utility delinquency accounts. `The City shall have sole
discretion in determining which accounts to turn over to the Contractor. The City
and Contractor make no agreement as to the age, type, dollar amount or collectability
of said accounts.
1.2 The City may recall at any time from the Contractor an account or group of accounts
previously referred to Contractor for collection efforts, when in the opinion of the
City, the best interest of the City will be served by recalling the accounts}.
1.3 The objective of the RFI process is to obtain the collection services that will provide
immediate responsible and consistent efforts in collections. The City of Corpus
Christi is inviting Letter of Interests from qualified firms to provide collection agency
services as described herein.
2.0 PROGRAM OBJECTIVE
2.1 To increase collections of "low probability" accounts, which have been determined to
be uncollectible.
3.0 NATURE OF SERVICES REOUIRED/IMPLEMENTATION
3.1 Contractor{s) must furnish all personnel, materials, services and facilities necessary
in performing the requirements of this RFI.
3.2 Contractor(s) must assume sole responsibility for ail aspects of the col lection process,
including problem resolution with debtors once their account is turned aver to the
Contractor. The Contractor must have a toll free number far customer service.
3.3 A suitable computer program, mail-out production and telephone contact is considered
essential to handle the volume.
3.4 The City's City of Corpus Christi will provide the fallowing functions:
A. A monthly extraction of accounts which meet the extraction criteria set by the City as
candidates for remote collection. The major data items are listed, but the extract may
include more or less items currently available on our systems.
Debtor Name
Debtor Address
Account Number
Debtor Phone
Debtor Address
Debtor ID #
Balanced Assessed
Balance Paid
Balance Outstanding
B. A monthly report itemizing all those accounts which were assigned to the remote
collection agency where payments were made directly to the City.
NOTE: The data will be provided to the vendor electronically.
It will be the Contractor's responsibility to assure compatibility of the City's Data
Files and transmittal medium to the Contractor's computer system. The Contractor
shall bear alI costs related to the data transfer.
C. The City will provide the contractor with a list of delinquent accounts from prior
years. Subsequent delinquent account files will be issued recurring on a monthly
basis. Accounts will be in excess of 120 days old when referred. The Contractor will
"work" all accounts for a period that is mutually agreed upon.
3.5 The Contractor will be required to make a minimum of two follow-up contacts for each
person listed as a delinquent account.
A. The Contractor shall make at least one (1) written contact via postal services. The
format and language of all written correspondence must be reviewed and approved by
the City. All costs associated with the letter and mailing shall be paid by the
Contractor.
B. Tlae Contractor shall make at least one {1}telephone contact with the person listed
with the account. The City must review and approve the general format of all scripts
used for telephone contact. All costs associated with telephone contact shall be paid
by the Contractor.
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C. Any and all written or telephone contacts shall cease upon payment or the appropriate
time period to work the delinquent account has expired or the contract has been
terminated.
D. No contact will be made in person by the Contractor with the debtor.
3.6 In both written and telephone contacts, the Contractor will instruct the debtor and account
holder to make payment to or refer all inquiries to the Contractor.
3.7 Additional written and/or telephone contacts may be made at the discretion of the Contractor.
Telephone contact attempts must be limited to between the hours of 8:00 a.m. and 9:00 p.m.
central time.
3.8 The City and the Contractor will j ointly review the accounts far which payment is due to the
Contractor on a monthly basis.
A. The City shall pay an appropriate fee to the Contractor on an agreed basis. The
Contractor will be paid on the actual amount collected and received by the City.
B. No payments will be made to the Contractor for the City's receipt of a voluntary
payment, or far an account where the account is subsequently dismissed or for which
no money is actually received by the City.
3.9 The Contractor shall use due diligence, reasonablc and ethical methods and employ lawful
means to effect the collection of all accounts.
3.10 The Contractor will provide to the City a daily report by electronic means, which contains
revised information including debtors' name, address, payment made and distribution where
the Contractor has received money on an outstanding account. This information must be
maintained accurately and timely. The Contractor will incur all expenses with. providing this
data to the City of Corpus Christi on a daily basis.
3.11 The Contractor must have a computer system that interfaces with the City's database system;
Sunguard HTE.
The Contractor's computer system must be able to transfer data directly into the City's
database system so that the City's data is automatically updated to reflect payments made for
each debtor and automatically update amount of money collected from debtor. The
Contractor will incur all expenses with providing the data to the City's computer system~as
required, including all costs of establishing an interface between the Contractor's computer
system and the City's computer system.
3.12 Deposits must be made to the City's bank of choice by electronic means on a daily basis.
Accompanying this electronic payment - a payment report will be sent to the City containing
the following information: Account number(s), debtor's name (Last, First, Middle Initial),
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address and total payment received. Bank information will be provided to vendor at contract
award.
3.13 Audit of Contractor Records
The Contractor shall maintain and make available for inspection or audit by an authorized
representative of the City or any external auditor representing the City -books, documents and
other relevant information pertaining to the collections carried out for the City and the
expenses of the contract.
4.0 RFI FORMAT
4.1 Companies must submit Letter of Interests in a sealed envelope. The envelope must be
marked "Letter of Interest for City of Corpus Christi Collections Contract" and should
note the purchasing file number identified herein (BI-0176-10). Letter of Interests must be
submitted by Friday Jnne 25, 2010, S:OOPM. No Letter of Interests will be accepted
after this date and time.
Letter of Interests maybe mailed to:
CITY OF CORPUS CHRISTI
PURCHASING DEPARTMENT
P.O. BOX 9277
CORPUS CHRISTI, TEXAS 78469-9277
Alternatively, Letter of Interests may be hand delivered to:
CITY OF CORPUS CHRISTI
PURCHASING DEPARTMENT
1201 LEOPARD, CITY HALL, 4~n FLOOR
CORPUS CHRISTI, TEXAS 78401
4.2 Companies must submit one original and five (5) identical codes of the Letter of
Interests by the deadline for receipt of Letter of Interests. All Letter of Interests must be
typewritten on 8 112 x 11-inch paper; however, larger paper is permissible for charts or
spreadsheets.
4.3 Each Letter of Interest must be submitted with a transmittal letter which:
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a. Identifies the company;
b. Is signed by an individual, identified by name and title, who is authorized to bind
the company contractually;
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c. Identifies the names, titles, telephone, fax numbers and a-mail address of
individuals who are available to be contacted by the City concerning the RFI and
for additional information;
d. Acknowledges the receipt of any and al! addenda to the RFI; and
e. Certifies that the company will comply with mandatory contract provisions
specified in this 1tFI.
f. Returns a completed Disclosure of Letter of Interests form.
4.4 Prefacing the Letter of Interest, the Company shall provide an Executive Summary of three
(3) pages or less, which gives in brief, concise terms, a summation of the Letter of Interest.
In order to simplify the review process and obtain the maximum degree of comparison
between firms, please submit your fan's Letter of Interest according to the outline listed
below. The Letter of Interest itself shall be organized in the fallowing format and
information sequence:
4.5 Each Letter of Interest must include or describe the following;
A. Part I -Business Organization
State full name and address of your organization and identify parent company if
you are a subsidiary. Specify the branch off ce or other subordinate element, which
will perform or assist in performing work herein. Indicate whether you operate as
a partnership, corporation, or individual Include the State(s) in which
incorporated or licensed to operate.
B. Company's Qualifications
i . State whether the Company is local, regional or national.
2. State the locations of the office that will have primary responsibility for the
Collection Services, as well as the number of professional staff employed at
that office.
C. Describe the range of the collection services performed by the Company. Be
specific about the firm's collection expertise as it relates to municipal government
contracts.
4.6 Part II -System Concept and Solution
Define in detail your understanding of the work to be accomplished as described herein
and your system solution. Include the Contractor's knowledge of terminology. Briefly
state the Contractor's understanding of the work to be accomplished and commitment to
perform all work within the required time frames.
4.7 Part III -Collection Procedure
A. Provide a summary of collection activities proposed to collect City of Corpus
Christi receivables, i.e.: collection letters, telephone contacts, skip tracing
techniques, daytime and evening collection staff, etc.
B. Provide a summary of collection activities proposed to collect delinquent accounts.
C. Provide a statement of methodology for handling customer's questions and
problems.
D. Provide a listing of all data sources which will be used.
E. State the Company's methodology for handling non-English speaking customers.
F. Collection Notices
1. Provide examples of all proposed written collection notices to be mailed,
which must be approved by the City, prior to being used by the Contractor.
2. Provide a copy of proposed telephone collector's script, which must be
approved by the City. Provide a copy of the telephone collector's training
material
3. Provide a copy of report which will accompany electronic deposit to the
City's account regarding payment detail.
G. Computer Network
1. State a brief description of the computer system used and its capabilities.
2. State whether terminal access will be made available to the City far online
inquiry at vendor's expense (5 days a week, 5:00 a.m. - 5:00 p.m.).
3. ldentify the form and frequency of data transfers both to and from the
Contractor.
4. The Company must document that they transmit data electronically with the
City's SunGuard HTE computer system.
5. Describe the Contractor's ability to maintain records of collections,
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recovery and producing reports, and billing for an unlimited number of
debtors and describe backup capabilities.
H. Management Reports
The Contractor should acknowledge the need for a cooperative effort and
open communication between the Contractor and the City. In this regard,
the frequency of reporting and the content of data transmitted to the City
should be identified.
2. The Contractor shall provide monthly report, providing debtors' name,
account number(s) and total amount received.
3. The Contractor must provide a daily electronic report when a debtor has
paid which clearly identifies the following: Debtors' name, account
numbers}, address, payment and distribution of payment.
4. Include examples of reporting currently provided to other customers.
5. The Contractor must provide an itemized payment listing provided with
each electronic transfer on weekly basis with i#emized payment listing of
every payment, name, and other information required by City.
6. Payment must be made to the City's bank of choice by electronic means on
a daily basis. Accompanying this electronic payment - A payment report
will be sent to the City containing the following information: Account
number(s), debtor's name {Last, First, Middle Initial), address and total
payment received. Bank information will be provided to vendor at contract
award.
4.8 Part N -Prior Experience
A. The Company must have minimum of 3 years experience in collection of
Municipal delinquent accounts. Supply the names of 3 prominent client companies
and contact persons with whom you have contracted since 2005. Provide
collection performance data (number of accounts and amount referred, amount
collected, etc.}. Provide a complete list of all clients in Texas for the past three {3}
years.
B. State the Company's experience as it applies to the collection of delinquent
accounts. Specifically list all Texas government clients for whom the Contractor
currently provides collection services.
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~F.9 Part V -Cost Information
A. Fee Structure
The fee structure will be determined upon the selection of the Contractor and will
be expressed as a percentage {%) or as a set fee charged per account of actual
monies received by the City. The fee structure will remain in effect throughout the
term of the contract.
Cost Letter of Interests reflecting a specific percentage commission rate to be paid
by the City based upon the amount collected are preferred. If a variable and/or
incentive based commission rate is proposed, explain fully haw commissions will
be calculated.
4.1 Q Part VI - Cost of Service
A. The City will pay a commission to the successful company at the end of each
reporting period at the rates agreed upon. If City receives no monies, City will not
be responsible to Contractor for the payment of any fiends.
B. Once collection efforts are considered exhausted and an account is returned to the
- City, any funds collected will not be subject to commission.
1) State the all-inclusive fee or percentage for which the work will be done.
Fee or percentage will be based on recovery only.
2) Fee Structure
State the service fee to be charged to the City, expressed as a percentage of
actual monies received or processing fee per accounts receivable collected.
Fee will be based on recovery only.
4.11 Information Acce tance Period
All Letter of Interests must include a statement that they are valid for a minimal period of
thirty (60) days subsequent to the RFI closing date.
5.0 GENERAL INFORMATION
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S.1 It is the City's intent to execute a contract for services with the Company(s) that submit(s)
the Letter of Interest deemed to be the most advantageous to the City. The City reserves
the right to award a single contract to one contractor or multiple contracts to multiple
contractors for each type of delinquency owed (2 types}. The City may conduct post-1tFI
negotiations with any Company(s) determined by the City to be reasonably qualified for
selection. Past-RFI discussions may include requests for additional information,
interviews, references and Letter of Interest modif cation.
5.2 The City is not bound under any contract until the City Council authorizes the City
Manager to execute the contract and the City Manger or his designee actually executes the
contract. Additionally, any payments are subject to annual appropriation of funds by the
City Council. The continuation of any contract after the close of any fiscal year of the
City, which fiscal year ends on July 31 of each year, is subject to budget approval
providing for such contract item as an expenditure in said budget. The City does not
represent that the budget item will actually be adopted, that determination being within the
sale discretion of the City Council.
6.4 LETTER OF INTEREST EVALUATION FACTORS
6.1 Letter of Interests will be evaluated to ascertain which contractor best meets the needs of
the City. Letter of Interests will be evaluated on the following criteria. The selection
criteria are not presented in order of priority:
1. Experience (specifcally prior experience in collection of municipal debt)
2. Qualifications
3. Fee Structure
a. Projections of net monies collected
4. Collections Procedures
S. Collection Notices
6. Computer Network/City Access to Information (inclusive of ability to interface
with existing computer system, implementing automated interface.)
7. Management Reports
6.2 The award of any contract will be made to the Contractor(s), which in the opinion of the
City, is/are the best qualified. Agency must comply with all applicable State/Federal
consumer collection practices.
7.4 REJECTION OF LETTER OF INTERESTS
7.l The City reserves the right to reject any and all Letter of Interests
7.2 The City reserves the right to re-solicit far Letter of Interests in such an event.
$.4 COST INCURRED IN RESPONDING
4
All cost directly or indirectly related to preparation of a response to the RFI or any oral
presentation required to supplement and/or clarify a Letter of Interest which may be required by
the City shall be the sole responsibility of an shall be borne by Contractors.
4.0 PROGRESS REPORTS
The Contractors shall submit written monthly progress reports, as required by the City
10.0 QUESTIONS & CLARIFICATIONS
If any information is needed concerning requirements, please contact:
City of Corpus Christi
Michael Barrera, Assistant Director of Financial Services
P. O. Box 9277
Corpus Christi, TX 78469-9277
Telephone: (361} 826~31691Fax: (3G1) 826-3174
e-mail : mikeb@cctexas.com
11.0 CONFIDENTIALITY OF LETTER OF INTERESTS
11.1 Letter of Interests will be opened in a manner that avoids disclosure of the contents to
competing companies and keeps the Letter of Interests secret during negotiations. All
Letter of Interests are open for public inspection after the contracts are awarded, but trade
secrets and confidential information in the Letter of Interests are not open for public
inspection. It is specifically provided, however, that each company must identify any
information contained in its Letter of Interest which it asserts is either a trade secret or
confidential information. Such material must be identified conspicuously by marking each
page containing such information as confidential. If such material is not conspicuously
identified, then by submitting its Letter of Interest, a company agrees that sack
material shall be considered public information.
12.0 TERMINATION
12.1 The City may cancel the contract without penalty for convenience with. or without cause
upon thirty (30) calendar days written notice to the Contractor. The City reserves the right
to cancel its contract at any time the City Manager or his designee determines it is in the
Ciiy's best Information to do so. Effective date of such notice shall begin three (3) days
after date of posting with the United States Postal Service with said notice being sent to
last known address of Contractor.
13.0 LAWS, STATUTES AND OTHER GOVERNMENTAL REQUIREMENTS
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13.1 Contractor shall comply with all laws, statutes and other governmental provisions
prevailing during the term of this Agreement, including the Texas Debt Collection Act,
Chapter 392 of the Texas Finance Code; and the Federal Debt Collection Practices Act, 15
U.S.C.A. Section 1692, et. sech; as amended
14.0 CONTRACT TERM
14.1 The term of the contract steal! be for a period of one year, with two one-year options to
renew, subject to the approval of the City Manager or his designee, and subject to annual
appropriati-on of funds by the City Council.
15.0 CONTRACTUAL ARRANGEMENTS
15.1 The contract to be awarded by the City fox collection services, as identif ed in the RFI .will
be for a period of one year. A copy of the RFI as well as the successful Letter of Interest
will become the basis for the contract. Part of the RFI is the attached proposed contract.
15.2 No payment will be owed to contractor prior to actual receipt of payment by the City. Fee
based upon recovery only. Payment will be remitted to the City of Corpus Christi
electronic deposit daily to account number as provided to Contractor at time of contract
award. Discrepancies owed to the agency will be set aside until full review and resolution
can he determined by both the City and the Collection Agency, without penalty to the City.
15.3 Contractor shall not enter into any agreement authorizing a delay of payment, extension or
suspension of amount owed.
15.4 Contractor cannot assign or in any way transfer any Information of the contract.
15.5 Contractor will have a minimum of six (6) months to work the referred items.
15.6 If any provisions} of this contract is held invalid, illegal, or unenforceable, the remainder
shall be construed to conform to the intent of the parties.
15.7 The City can perform audits to ensure accounts are reported and maintained.
15.8 The agency shall retain all records and relevant documents for a minimum of five (5) years
after contract expiration.
15_.9 The City reserves the right to reject any or all Letter of Interests and to resubmit for Letter
of Interests in such an event.
15.10 This agreement shall not be construed as creating a partnership, joint venture or
employerlemployee relationship, it being the intent of the parties hereto that the Contractor
shall occupy the status of an independent contractor and shall be solely responsible for the
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acts, means acid methods employed by it in attempting to collect the referred accounts.
12
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DTS~LOSURE ®~F IN~'Ol~llTT~-TiON
City isf Cgt7sus C'Itrititi Ordinance i 7.i 12, as amended, rey[tires ati pers[sns qr Iintrs seeking io du business witi~ the City io
prgvide the fgllowin infgrntazion. l :very question mttst be answered. lt'the cuestion is not xpplicxbte, answer with "N A".
See t~verse side for- ~iiirtg I~equiremenis, C4rtificatians and definiiinas.
i C.'f]l1'lPANI'NAIViF: aa"`FiE;~~'€':sYti"fsYS"i'Ir14Iti1N1`I?.I2i'y~1')i_9E31ti'AI.._II~C:.
-----
P. ).' 4.fr A.IItI.~ING"1't)I~i, ~€']e
} 1277 G~C~N'T'RY' CLiIB I~l*i FT'§~%C]R"f>fi, `Y}s 7ti1_t~
$TI2H:ET Ai)1)1tF5ti: C:17'Y: ZIP:
~ FlRM IS: [. Corporation 3t 2. T'artnerstr.i}s 3- Safe Owtrer [~
~#. Association ^ 5. Other _......._._-._.._-...._.-_-_..._~_~._._.___--~_.
IIISCI.C]SCI.I2I+; t~ilt:5"CIf);tilfi
ff acidiiinnaE space is necessary,. please use the reverse side of this pa a or attach separate sheet-
] . State tltc names of each "cttipi[>yec" nl~ the City of Corpus Christi having an "gw~rtership Infisrtnalian" constittrting 3'% or
mote of the ownership in the above named `•IErttt."
i~Eame Job Title and. City DepetY€nsnt (if known)
~ ?tiOT~I:
2. State she nan;es gt'each 'official" o~'the Cite gfCgtpuR Christi having an "ownership htfarmatimr" constituting 30 <rr mcux
of the otit°ncrship in the ahovc named "f rm-"
icamc 'T'ide
3. State t3-te narnes of each "beard member" gfthe City of Gtrrpus Christi having au "ownership Infgrrnatigaa" constif.uting 310
qr more of the awa3ersttils its the allnvC named "f[rrn."
Fame I3uard, t=cimmissign or Committee
4. State the names of each employee qr officer of a "consultant'' for the City of Corpus Christi who worked on any matter
related to the strbject gf'this conttttct and has an `'c>wner-ship In format:i[sn" cgnstitttung 3°/u or more ofthc orvnerbhip in the
above natncd ~`fri'tr[."
Nante C.ousultant
i~
5
Request fc~r f~~forr~rallo~~ ~ Collection Services v File Na. BI-0176-IO
'~'t~~ ~~I~'t)f1'IrI~I~~t~ ~'~~~I~~~.a~a~€~ o~ ~~~~±~ ]~g~ ~s ~'~a~~~d~fv~t~~l `cll!tC~ ~I"tI~}I`16s~~>{'~,
Credit Systems. International, Inc.
~II.Irrc ri1~QTi~ra`~n1~:n~rs
1f x person wlto req[tests ofticial actin]} on a matter lcltows that the requested action will confer art aconontic l}eneCt uu any
City official sac eeitployec that is distinguishable frnrrt the effect t.llxi tht: action will have on rr[emben [)f the public in
general ur a substantial segment thereof, you shalE disclose that €act in a sighed writitt~ to the City official, employee or
body that has been requested to act ht the mailer, unless the Information of the City officia} or erttpioye.e in thr ttaxttcr is
apparel t)~'1'he disclosure shall also ]te made in a Sighed writing filed with the City Secrewry. [Ethics Urdirlance Section
2-3349 d
CI;RTIFICATIQN
T certify that all inforrltatWn p.r[!V IdCd !S ll'at; alid is{lrrCr:t ati [lftllC date Uf tltE5 titaCC]11L'nt~ that 11SaVL'' it1}t knowmgiy' wlthhLlcl
disclnsul~e. of arty iltformation requested: and tha# suppletnental statements will be promptly submitted to ilia l;ih' of Corpus
Cl}risti, Texas aYs chunges occur.
~ Certifying Person: iKA'I'TIl' I'AITF3 'T'itle: SI~?lU.lt At'C"1' X.?f>h'.C~I ~'iVL
17~ypcrn f4~i~ii} ,p.
Signature of [:crtifyiag ~ ~ ~ - ~~ IPate:
Person: _
ll~;Fl;lYil~'ii}1riS
.RileiF., 222_(}1 t)
a, `~8uard lnelnber," A tnernber o#' arty boa]•d, conunission, or committee appointed by. the City Counci} of the City of
Corpus Christi, Texas,
b. "Ecosutnie benefit'". Ate action that is IfRel} to affect an economic lnfcrmtatinn if it is likely u} have an effect nu that
}nfnrmatinn chat is diatittgui5hahle front itv effect on mernhcrs of the public in general nr a substantial segment thereof.
c. "Ltnplnyee.~' Any person employed by the City ofCot'lnts Christi, Texas either on a ftrll rn•part-time basis, but not as an
inclcpandent contractor.
d. "T~irm." Any entity operated #i}r' economic gain, whether professional, industrial or colntnercial, and whether established
to produce or deal with a product or set•~~iee, ilte}uding but not liE)tited to, entities operated in the €orln o€ sole
proprietorship, as self-etnpioyed person, pattnelsltip, corporation,.jointstnck company, •joint velthtrc_ rcccivcrsltip ortrusL
and entities which for purposes of taxation are tt•eated as non-proi'it organizations.
t. "t~f~IClal.'~ Tllc 1vI~y01', !tlCl]]1)C1J Of I:IiC C`lt}' C.[tuncil, City Manager. Deputy City Mallab[;r, Ass}stant Glty Managers,
l:ieprertmcl)t and I3ivision Heads, and }vlunicipai Court 7esdges ofthc City of Corpus C}trisli, Texas.
E "Ownership Infrtrmation.'' Legal or equitable }nfum}ation, whether actually or conslructively held, in a tirttt,
including when such lnfnrmation is held through an agent, trust, estate, of holding entity. "Cnnshuctively held" refers tc
holdings or control established through voting trusts, proxies, or special terms of ve-t#m•e or partnership agreemetlts."
g. "f_'onsnitant.°' Any person or Linn, such as engineers and m'cltitects, hired by the City of Corpus Ctlristi forthe purpose of
professiutlal consultation ,grid recotluneudatiou.
Re~aic~.s°t•fat~ Ifafo~•~~~~~i-tan ~ Callc~c:'tian Ser•vees ~ File Nc~, 81-017~i-10
'~'tl~ tlt~ot•rl~E~~~e~l~ ~'r~~tf~~~l~e c~~ ~I~~~ ~~~l~er i;,~ ~'Qrl~tiet~nt~~i d]llcf ta`~•€~pl•~~t~l-yt.
EXHIBIT B
INSURANCE REQUIREMENTS
L CONTRACTOR'S LIABILITY INSURANCE
A. Contractor must not commence work under this agreement until all insurance
required herein has been obtained and such insurance has been approved by the
City. Contractor must not allow any subcontractor to commence work until all
similar insurance required of the subcontractor has been obtained.
B. Contractor must furnish to the City's Risk Manager two (2) copies of Certificates
of Insurance, showing the following minimum coverage by insurance company(s)
acceptable to the Ciry's Risk Manager. The City must be named as an additional
insured for the General liability policy.
TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE
30-Day Notice of Cancellation, material change, Bodily Inf ury and Property Damage
non-renewal or termination is required on all
certificates
COMMERCIAL GENERAL LIABILITY $1,000,000 COMBINED SINGLE LIMIT
including:
I. Commercial Form
2. Premises -Operations
3. Products/ Completed Operations
~-. Contractual Liability
5. Independent Contractors
PROFESSIONAL LIABILITY to include : $1,004,000 COMBINED SINGLE LIMIT
1. Personallnjury
2. Errors and Omissions \
C. In the event of incidents /accidents of any kind, Contractor must furnish the Risk
Manager with copies of all reports of any claims within ten (l0} days of the
incident./ accident.
II. ADDITIONAL REOUIREMENTS
A. Certificate of Insurance:
The City of Corpus Christi must be named as an additional insured on
the General liability coverage.
The name of the project must be listed under "Description of Operations"
At a minimum, a 30-day written native of materival change, non-renewal,
termination or cancellation to the Risk Manager is required.
Collection Service RFI ins. req.
6-7- ] 0 ep Risk Mgmt
EXHFB~T C
The parties agree to the following 53
:Credit Systems International, Inc.
4.9 Part V -Cost Information
Method of calculation: CSII's proposed contingency fee schedule is calculated by the age of the
account at the time of placement from the date of service, Rates do not change once accounts
are processed into our system at placement. Accounts, not currently reported to the Credit
Reporting Agencies by City, will be reported by CSII.
Contingency rates and methodology may be discussed during negotiations.
Two schedules are provided: Schedule I is for monthly new placements, which CSII will report
to the Credit reporting Agencies. Schedule II is far the backlog of accounts according to the
numbers detailed in the files provided by City for than 15,000 accounts and according to City
these accounts have been reported to the Credit Reporting Agencies. (If City has not reported a
segment of the backlog, CSII will report the accounts to the Credit Reporting Agencies.)
Rates are for both Utility and Misc. Accounts.
THE FOLLOWING RATES ARE BASED UPON CSII RECEIVING 100% OF THE
PLACEMENTS .FOR NEW PLACEMENTS AND BACKLOG.
Schedule I: New monthly placements ongoing placements, not previously been reported by
City to the Credit Reporting Agencies. CSll will report these accounts to the Credit
Reporting Agencies.
• 17.9% for accounts placed at 120 days and less from the date services disconnected.
• 22.9% far accounts placed between 121 and 365 days from the date services disconnected.
• 33.9% for accounts placed at more than 3b5 days from tike date services disconnected.
Schedule II: Backlog accounts as represented in tiles provided by City of mare than 15.000
accounts.
• 17.9°1o far accounts placed at two years and less from the date services disconnected.
• 21.9% for accounts placed at more than two years from the date services disconnected.
IF MORE THAN ONE AGENCY IS SELECTED.
Please note, if more than one agency is selected for City's new placements and backlog, rates
will increase in each category 4%. The rates offered for 100% of the placements aA•e based upon
the volumes represented in this RFI, allowing CSII to offer City high volume rates.
NOTE: CONDITIONS OF T.HE PROPOSED RATES ARE BASED AND CONTINGENT
UPON T.HE INFORMATION ON FOLLOWING PAGE. The conditions outlined in our
proposal are based upon the financial investment that CS11 makes in City's portfolio from the
moment we receive accounts, as well as our knowledge of this industry. Our intention regarding
Request for Information M Collection Services ~ File No. B1-0176-10
The lnformatian Contai~~ed on this page is Confidential and Proprietary.
- . :Credit Systems International, Inc.
54
conditions is simply to ensure there is not a misunderstanding between City and CSll, which we
felt is necessary due to the limited timeline provided in responding to this RFI.
• CSII receiving 1 D0% of the placements of all placements.
• CSII retaining accounts for at least eighteen months from the time of placements or longer.
• If accounts not in a paying status are required to be returned after eighteen months (or
longer), CSII will retain accounts in a paying status for conclusion. A file will be provided to
City far accounts retained due to paying status.
• Returned accounts will be deleted from the Credit Reporting Agencies if. reported by CSII.
• Commissions (fees) are due whether paid CSII or paid directly to City.
• Fees are due CSII fiam City an all payments/recoveries from the tune City refers an account
to CSII whether paid by the customer, a third party, paid to reconnect or establish services
and balance/partial balance is transferred to another account.
• Recovery is defined as any payment remitted by the customer, co-maker, third party,
payment in connection to restoring/establishing services and partial or balance transfer to
another account resulting in a reduction of the amount due. Non-recovery reduction in the
amount due where commissions are not paid by City includes credit adjustments due to write
offs for billing errors, usage credits, settlement write offs and charity write offs. Again,
clarifications can be made during negotiations.
• Payment reversals will be conducted by both parties as applicable with regard to posting
errors, NSFlreturned payment items and reversal of balance transfers by City. The reversals
enable CSII to refund fees paid by City or City to refund CSII for remittances of returned
items/payment reversals.
• Rates are contingent upon weekly payment files, statements and electronic bank remittances.
Daily reporting and remittances are very costly and CSII's goal is to offer City the best
passible rate that will enable us to utilize all of the resources at our disposal to optimize
account recovery and net the highest return for City. in order to offer discounted rates,
electronic processes must be minimized.
• Rates are also based on a 30 day or less remittance for each weekly statement. .
• CSII's proposal can be discussed during the interview process/negotiations.
Due to the rapid response for submission of this RFI, CSII would Like to reserve the ability to
negotiate and clarify terms, processes and procedures to ensure a successful partnership and smooth
transition with City. Our goal is to provide the best possible results, services and professional
relationship that are the most cost effective far City. Our expertise, specialized procedures and
extensive resources for this type of collection portfolios will greatly benefit City of Corpus Christi.
Request for .Infor•matio~ ~ Collection Services ~ File No. BI-0176-I d
The Information Cantgined on this page is Confidential and Proprietary.
Credit Systems International, Inc.
CLARIFICATIONS/ EXCEPTIONS
S6
(3.2) "...including prolflem resolution with debtors once there account is turned over for
collection."
Clarification: Whereas, CSII makes every effort to resolve all accounts, we have a
responsibility to notify our clients of disputes/frauds. Most disputes can be resolve by
CSII. However, there maybe situations that require City assistance. Agency's online
access to City's system will support City's staff regarding account assistance. This may
be discussed during negotiations.
(3.4.A) Data extraction. Clarification: The information listed for extraction to place accounts is
incomplete. In order for the agency to succeed additional information will be required.
This information can be discussed during the interview process or negotiations. CSI1's
proposal is based upon receiving pertinent additional information.
(3.4.8} Monthly payment file from City. ClarifcationlSuggestion: Weekly payment files to
the agency will reduce potential complaint issues. This can be discussed during
negotiations.
(3S) Follow-up attempts and contact. Clarification: Follow up telephone attempts and
contacts can only be conducted on accounts with good phone numbers. Exception:
Telephone calls are not guaranteed on accounts less than $100.00. Clarification:
Accounts that link with other accounts and total mare than $100A0 will receive calls. All
accounts receive at least one letter (unless mail return) and are reported to the Credit
Reporting Agencies (if appNcable).
(3.6) Customer remittance to contractor: Clarification: Whereas, C51I instructs debtors to
pay and contact the agency, it is not possible to prevent customer payments and contacts
to City.
(3.8) Review accounts far payment due "monthly". Clarification/Suggestion: Weekly
review of weekly stateinentslremittances. This may be discussed during negotiations.
(3.8.B) "Voluntary payment" -Clarification or exception as appropriate: Being as, CSII
immediately starts processing all placement files in their entirety upon receipt of the files
which includes bankruptcy scrubs, .address validation, etc. (as described in this RFI) this
means that work has commenced an the accounts. CSII's automated processes and
technology enables us to manage large volume placements. Therefore, CSII is due fees
on all payments whether paid to agency or City from the time accounts are placed.
Payments are defined as customer payments of any kind and for any reason once the
account is placed for collections. This includes customer payments, third party
payments, payment to restore services and balance transfers. Fees are not applicable to
credit adjustments due to billing errors, usage credits or charity write offs where the
Request for Irafalnaation ~ Collection Services ~ File No. 81-0176-10
The Information Contained on this page is Confidential and Proprietary.
Credit Systems International, Inc.
balance or partial credit is issued by City. This may be discussed in detail during
negotiations.
57
(3.10) Daily report of payments. Exception: Daily reports are very costly. Our largest utility
clients require weekly. CSII takes an exception to daily and recommends weekly for
statements/electronic remittances and monthly far reportslaccountlnventories. The
statement provides name, service address, client account nwnber, amount paid CSII,
amount paid City, amount due CSII as means of identifying payments remitted to CSII
and billed far payments reported by City. This may be discussed during negotiations.
{3.11) Interface. Clarification/Exception: CSII's security protocols will not permit a direct
interface from our collection system to any other host system. However, this is a nan-
issue since industry standards utilize data transfers. CSII will work with City to
established data exchange via Secure FTP ar our Web Portal. CSI1's internal
programmers will create programs to convert City's data files to our format. CSII's Web
Portal is available for basic account information and same reports. Details r can be
discussed during negotiations.
(3.12) Daily electronic deposit. Exception: For cost control CSII recommends weekly. Tlais
can be discussed, during negotiations.
{3.13) Audits. Clarification: Audits may be conducted on CSll's premises.
(4.8) Experience. Exception: CSII is not permitted to publish information regarding our
clients' collection portfolios. This is their private information and does not belong to
CSII. Nor does CSII publish our entire client list.
Contract:
(15.5) Contractual Arrangements -minimum of b months. Exception: CSII's fee schedule
is based upon retaining the accounts a minimum of l8 months to maximize recoveries.
This may be discussed during negotiations.
Contract amendments:
CSII would like tl~e contract to include a 30 day remittance terms for each submitted invoice.
Example: CSII remits to City by transferring electronic funds weekly along with an invoice
customer details. In return City remits payment for CSIYs weekly invoices within 30 days from
receipt, Final contractual modifications can be discussed during negotiations.
Anything in the 1tF1 that we may have failed to answer, submit or respond to is purely an error due to
the extremely limited time-frame and not intentional. Please contact Kathy Faith for any clarifications.
Request for Information ~ Cadlectian Servaces ti File No. BI-0176-10
The Information Contained on this page is Confidential and Proprietary,