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CIIT OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
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Dept: City Administrator
Subject: Ordinance establishing a cost
recovery system for booking fee
collections, and agreement to provide services to
recover criminal justice administrative fees
(booking fees) from convicted arrestees.
From: Fred Wilson, City Administrator
Date: July 3, 1997
Synopsis of Previous Council Action:
None.
Reconnnended Motion:
That said ordinance be laid over for final adoption,
and adopt resolution.
Contact person: Jan Wages. Administrative Assistant to the City Administrator
Phone
5122
Supporting data attached: Staff R~ort. Ordinance. and Agreement
Ward: N/ A
FUNDING REQUIREMENTS: Amount: N/ A
Source:(Acct. No.) N/ A
(Acct. Description)
Finance:
Council Notes:
K/"I/97
Agenda Item No. /1 A.,..B
Continued to 08"/13/'17
CITY OF SAN BERNARDINO - ItEQUEST FOR COUNCIL ACTION
STAFF REPORT
~"""vnund:
The cities in San Bernardino County were involved in a protracted lawsuit with San
Bernardino County relative to the payment of Booking Fees. In July of 1990, Senate Bill
2557 was signed by the Governor. Senate Bill 2557 was codified as California Government
Code Section 29550, and became effective January 1, 1991. This code section authorized
counties to retroactively charge cities and other entities for expenses incurred after July
1, 1990, in connection with the booking or other processing of persons arrested by
employees of the cities and other entities. Government Code Section 29550 requires that
the amount of the foe is not to exceed the actual administrative costs, including applicable
overhead costs as permitted by Federal Circular A-87 standards, incurred in booking and
otherwise processing those arrested persons.
Based on Section 29550, in January of 1991, the County adopted Ordinance No. 3428
(County Code Section 16.027 A) authorizing the County to charge each city a criminal
justice administrative fee, retroactive to July 1, 1990, in the amount of $122.90 for each
designated booking performed by the County in connection with arrests made within the
jurisdictional boundaries of the respective cities.
In February of 1991, the County began charging each city a criminal justice
administrative fee pursuant to the provisions of Ordinance No. 3428. Currently, the fee
being charged by the County per booking is $156.90 due to the inflation factor as
calculated in the CPI for all urban consumers in the Los Angeles/Anaheim/Riverside area.
T -vi Authorit;y to Collect Bookinr Fees:
Pursuant to Section 29550.1 of the Government Code, cities are entitled to recover any
criminal justice administration fee imposed by a county from the arrested person if the
.person is convicted of any criminal offense related to the arrest.
- Cost Recovery System Proposal:
Development of a cost recovery system for booking fee collections has been in process for
nearly three years. GC Services initially approached the City of Highland with the idea
of collecting the booking fees from those convicted and ordered to pay the fee by the
Court. The cities and the county were then approached by GC Services to provide
collection services for all local governments in the county. The idea was supported by the
City Managers, and was reviewed and approved at the Mayor/City Manager Conference
in 1995. It was also determined at that time that it made sense that GC Services be
allowed to act as a selected source provider during the pilot program process, for the
following reasons: they have worked closely with area cities for almost three years to
develop a mechanism for recouping a portion of the booking fee costs charged by the
County; they have a proven track record in the county; and, they are already established
in the San Bernardino County Court system.
D uuff~
'\~VJivJI1~
The term of the agreement is thirty-six months. At expiration, the agreement may be
extended under the same terms and conditions for two additional periods of time, not to
exceed twelve months each. The City also reserves the right to reevaluate or recall any
account that was assigned to GC Services. GC Services will collect the full booking fee
and an administrative fee of 61% to 78%, depending on the percentage of recovery.
There are no costs to the City for the implementation of this program. The cost of the
collection program will be paid out of the fee/commission process. There is the potential
for the reimbursement to the general fund for costs charged by the County for the
booking of persons arrested.
~".. amount can the City E.lqlect to Recover?
The City of San Bernardino currently averages approximately 330 prisoners booked per
month. Assuming that all of these are billable bookings, and with an 86% conviction rate,
the City would have 284 potential accounts. Due to the lack of ability to pay by people
are booked, GC Services estimates a recovery rate of approximately 6% (17 accounts).
Therefore, it is estimated that the City would receive $2,667.00 per month, or $32,004.00
per year through this process.
"
ORDINANCE NO._
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AN ORDINANCE OF TIlE CITY OF SAN BERNAIU>INO, CALIFORNIA,
3 ADDING CHAPTER 3.80 TO TIlE CITY OF SAN BERNAIU>INO MUNICIPAL
CODE FSfABUSHING A COST RECOVERY SYSTEM FOR BOOKING FEE
4 COllECfiONS.
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WHEREAS, Government Code Section 29550.1, et Seq. allows cities to recover the
costs charged by the counties for the booking or other processing of persons arrested and
other costs incurred in connection therewith if that person is convicted of a criminal
offense related to said arrest.
.
WHBEAS, the Common Council wishes to recover said costs charged by the
County of San Bernardino for the booking or other processing of persons arrested and
other costs incurred in connection therewith.
WHEREAS, the Common Council finds that the amount of the charges hereby
adopted do not exceed the reasonably anticipated costs charged by the County for the
13 booking or other processing of persons arrested and other costs incurred in connection
14 therewith, and therefore the fee imposed hereby is not a "special tax" pursuant to
Government Code Section 50076 and the actions taken herein are exempt from the
15 additional notice and public meeting requirements of the Brown Act pursuant to
Government Code Section 54954.6 (a) (1) (A) and (B).
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WHEREAS, the Common Council further finds that these fees are charged for the
purpose of meeting the City's operating expenses and recovering funds paid from the City
treasury to the County of San Bernardino, and are therefore exempt from the
requirements of the California Environmental Quality Act pursuant to Public Resources
19 Code Section 21080 (b) (8).
20
NOW, lHEREFORE, the Common Council of the City of San Bernardino does
21 hereby ordain as follows:
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SECTION 1. Tide 3 of the San Bernardino Municipal Code is hereby amended by
adding CHAPTER 3.80 COST RECOVERY SYSTEM FOR BOOKING FEE
COllECfiONS, as follows:
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July 30, 1997
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6 Sections:
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(CHAPl'ER 3.80)
COST RECOVERY SYSTEM FOR BOOKING FEE COIl.ECllONS
3.80.010
3.80.020
3.80.010
3.80:o.w
3.80.050
3.80.060
Authority and Scope
Purpose
Definitions
Method of N-ang Amount of Fees
Amount of Fees Collected
Severability
Section 3.80.010 Authority and Scope
14 This Chapter is adopted pursuant to Government Code Section 29550.1, et. Seq. as
the same may now exist or hereafter be amended.
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The proceeds from this program shall be used to reimburse the City's general fund
17 for costs charged by the County for the booking or other processing of persons arrested
18 and other costs incurred in connection therewith. . .
Section 3.80.020 Purpose
19 Section 3.80.030 Definitions
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A. .City. means the City of San Bernardino
B. .County. means the County of San Bernardino
Section 3.80.040 Method of Assacing Amount of Fees
Pursuant to Government Code Section 29550.1 the City shall charge a fee equal to
the fee assessed by the County to the City for the booking or other processing of persons
arrested, at the request of the City, to the person arrested, if that person is convicted of
a criminal offense related to said arrest.
July 30, 1997
2
1
2
AN ORDINANCE OF 1HE CITY OF SAN BERNARDINO, CALIFORNIA,
ADDING CHAPTER. 3.80 TO 1HE CITY OF SAN BERNARDINO MUNICIPAL
CODE ESTABliSHING A COST RECOVERY SYSTFM FOR BOOKING FEE
COUECIlONS.
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4
Fees collected shall be limited to those provided under Government Code Section
5 29550.1 et. Seq. The actual cost of recovery over and above the criminal justice
administrative fees shall be charged to the person convicted if applicable.
6
Section 3.80.050 Amount of Fees Collected
Section 3.80.060
Sever:ability
7
8 If any section, subsection, part, clause, sentence, or phrase of this Chapter or the
application thereof is for any reason held to be invalid or unconstitutional by the decision
9 of any court.of competent jurisdiction, the validity of the remaining portions of this
10 Chapter, die application thereof, and the fee imposed shall not be effected thereby, but
shall remain in full force and effect, it being the intention of the City Council to adopt
11 each and every section, subsection, part, clause, sentence, or phrase regardless of whether
any other section, subsection, part, clause, sentence, or phrase or the application thereof
12 if held to be invalid or unconstitutional.
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SECIlON 2. EFFECIlVE DATE
This ordinance shall become effective 30 days after its adoption.
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July 30, 19970
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. .,
AN ORDINANCE OF TIlE CITY OF SAN BERNARDINO. CALIFORNIA.
ADDING CHAPTER 3.80 TO TIlE CITY OF SAN BERNARDINO MUNICIPAL
1 CODE ESfABUSHING A COST RECOVERY SYSTEM FOR. BOOKING FEE
COLLECTIONS.
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3
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor
4 and Common Council of the City of San Bernardino at a
meeting thereof,
5 held on the _day of
6 Council Members AYES
7 NEGRETE
8
CURLIN
9 . .
, 1997, by the following vote, to wit:
NAYS
ABSTAIN ABSENT
10 ARIAS
11
OBER.HEIMAN
12 DEVLIN
13
14
ANDERSON
MTT T FR
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City Clerk
The foregoing resolution is hereby approved this _day of
,1997.
TOM MINOR., Mayor
City of San Bernardino
22 Approved as to form and
legal content:
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James F. Penman,
City ttomey
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July 30, 1997
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RESOLUllON NO._
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2 RESOLUllON OF TIlE CDY OF SAN BERNARDINO APPROVING AN
AGREEMENT WIlH GC SERVICES LIMlTED PARTNERSHIP TO COllECf
3 ClUMINAL JUmCE ADMINISTRATION FEES FROM ARRFSl'ED AND
4 CONVll:UlJ PERSONS ON BEHALF OF TIlE CDY OF SAN BERNARDINO.
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BE IT RESOLVED BY TIlE MAYOR AND COMMON COUNCll. OF TIlE
CDY OF SAN BERNARDINO AS FOllOWS:
SECTION 1. The Mayor is hereby authorized and directed to execute on behalf of
8 the City of San Bernardino an agreement for special services with GC Services Limited
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Partnership, .a copy of which is attached hereto and incorporated herein as Exhibit . A',
.
at no cost to the City, for collection of unpaid criminal justice administration fees.
12 SECTION 2. The authorization to execute the above-referenced agreement is
13 rescinded if the parties to the agreement fail to execute it within sixty (60 days of passage
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of the resolution.
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July 24, 1997
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RESOLUllON APPROVING AN AGllEEMENT WIIlI GC SERVICES I..IMlTED
PARTNEllSHIP TO COILECI' CRIMINAL JUSTICE ADMINISTRATION FEES
1 FROM ARRESfED AND CONVICfED PERSONS ON BEHALF OF 1HE CITY OF
SAN BERNARDINO.
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3 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor
4 and Common Council of the City of San Bernardino at a meeting thereof,
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held on the _day of
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, 1997, by the following vote, to wit:
AYES
NAYS
ABSTAIN ABSENT
Council Members
NEGRETE
CURLIN
.
.
ARIAS
OBERHEIMAN
12 DEVLIN
13
14
ANDERSON
15 MTT T Fll
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City, Clerk
The foregoing resolution is hereby approved this _day of
,1997.
22 Approved as to form and
23 legal content:
24 James F. Penman,
25 City ttorneyt
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TOM MINOR, Mayor
City of San Bernardino
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Exhibit "A"
AGREEMENT FOR A PILOT PROGRAM
FOR THE COLLECTION OF
BOOKING FEES
TIllS AGREEMENT is entered into this day of . 1997, by and
between the City of San Bernardino ("City") and GC Services Limited Partnership, a private
collections agency ("Agency").
RECITALS
A. The CITY OE. ADELANTO, TOWN OF APPLE VALLEY, CITY OF BARSTOW,
CITY OF BIG Bf'AR LAKE, CITY OF CHINO, CITY OF CHINO HILLS, CITY OF
COLTON, CITY OF FONTANA, CITY OF GRAND TERRACE, CITY OF HESPERIA, CITY
OF HIGHLAND, CITY OF LOMA LINDA, CITY OF MONTCLAIR, CITY OF NEEDLES,
CITY OF ONTARIO, CITY OF RA..'iCHO CUCAl\10NGA, CITY OF REDLANDS, CITY OF
RIALTO, CITY OF SAl'i BERNARDINO, CITY OF TWENTYNINE PALMS, CITY OF
UPLAND, CITY OF VICTORVILLE, CITY OF YUCAIPA, and TOWN OF YUCCA VALLEY
(hereinafter referred to as "the Cities'') are cities duly organized and existing under the laws of the
Stilte of California and are located within the jurisdictional boundaries of San Bernardino County.
B. The COUNTY OF SAN BERNARDINO ("the County") is a county duly organized and
existing as a political subdivision of the State ofCalifomia
C. On or about July I, 1990, Senate Bill 2557 was signed by the Governor of the State of
California as a non-urgency measure. Senate Bill 2557 was subsequently codified as California
Government Code Section 29550, and became effective January 1, 1991. Pursuant to
Government Code Section 29550 , counties were authorized to retroactively charge cities and
other entities for expenses incurred after July I, 1990, in connection with the booking or other
processing of persons arrested by employees of the cities and other entities. Government Code
Section 29550 requires that the amount of the fee not exceed the actual administrative costs,
- - including applicable overhead costs as permitted by federal Circular A-87 standards, incurred in
booking or otherwise processing those arrested persons.
D. Pursuant to Section 29550 of the Government Code, the County charges each of the
Cities a criminal justice administrative fee for each designated booking performed by the County
in connection with arrests made within the jurisdictional boundaries of the respective Cities.
E. Pursuant to Section 29550.1 of the Government Code, the Cities are entitled to recover
any criminal justice administration fee imposed by the County from the arrested person if the
person is convicted of any criminal offense related to the arrest.
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F. Under Section 29550.2 of the Government Code, the County is entitled to recover a
criminal justice administration fee for actual administrative costs from any person booked into
county jail pursuant to any arrest by a governmental. entity not specified in Government Code
Sections 29550 and 29550.1.
G. GC SERVICES LIMITED PARTNERSHIP (hereinafter "Agency") is a private collection
agency with the knowledge and experience to collect the above fees and costs from arrested and
convicted persons on behalf of the Cities and the County.
H. The parties hereto desire to enter into this Agreement for the purpose of establishing the
terms and conditions under which the Cites and the County will retain the Agency to seek to
recover from arrested persons the costs and fees indicated above (hereinafter "unpaid booking
fees'').
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COVENA.t~TS
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NOW THEREFORE, in consideration of the preceding Recitals and the mutual Covenants
contained herein, the parties hereto agree as follows:
I. Scooe: This Agreement is for a thirty-six (36) month and shall be administered so as to
allow the City to determine the cost effectiveness of a private collection agency collecting and
distributing unpaid booking fees to the City or its designee pursuant to the provisions of
Government Code Sections 29550.1 and 29550.2.
2. Al!encv: Subject to the terms and conditions of this Agreement, the Agency agrees to
accept accounts for the collection of amounts due on unpaid booking fees referred to the Agency
by the City. The Agency shall provide the services descnbed in the Statement of Work attached
hereto as Exhibit "A" and incorporated herein by this reference. Such work expressly includes all
related services ordinarily provided by the Agency under same or'similar circumstances andior are
necessary to satisfy the terms 0 f this Agreement.
3. Comoensation: The Agency agrees to accept as full payment for services rendered
hereunder a commission percentage on the amount of monies actually collected in accordance
- with the Fee Schedule attached hereto as Exhibit "0" and incorporated herein by this reference.
No other compensation will be paid to the Agency except for services performed pursuant to an
Amendment to this Agreement which must be in writing and signed by all parties hereto. Any
collections made by Agency on behalf of the City shall be remitted directly by Agency to the City,
or its designated representative, less any commission andlor other costs expressly agreed to be
deducted pursuant to the terms of this Agreement. In this regard, the City shall have no
obligation to reimburse Agency for any costs or expenses incurred by Agency.
4. City Duties: The responsibilities of the City under this agreement shall be as set fo~
herein and in Exlubit "B" attached hereto and incorporated herein by this reference. _;;;r-.- ,.
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5. fum.: Unless earlier canceled pursuant to Sections 33 and 34 of this Agreement, or
earlier terminated by the City due to breach thereof by Agency, the term of this Agreement shall
be for a period of thirty-six (36) months. After expiration, this Agreement may be extended under
the same terms and conditions for two (2) additional periods of time, not to exceed twelve (12)
months each at the discretion of both the City and Agency.
6. Cban1!es and Amendments: This Agreement may not be amended, modified, or altered
except by a written instrument signed by all parties hereto.
7. Location of A1!encv: The Agency shaU maintain local telephone listings or toU-free 800
numbers to serve the City where debtors may contact the Agency or its attorney regarding the
amounts due on unpaid booking fees.
8. Use of Citv Seal or Letterbead: The Agency shall not use or display the official logos
or seals of the C~ an any communications with any debtor without having previously obtained
written authorization from the City.
9. Confidentialitv: Except as otherwise required by applicable federal, state, or local law or
regulations. aU information acquired by Agency in the course of performing senices under this
Agreement shall be confidential and shall not be open to examination for any purpose without
prior written approval of the City. Each Agency employee involved in the implementation of this
Agreement shall read and sign the Confidentiality Agreement attached hereto as Exlubit ''C''.
10. Reevaluation: The City reserves the right to reevaluate and to adjust, cancel, or recaU
any accounts assigned for coUections to the Agency. The Agency reserves the right to withdraw
from this agreement. except with respect to its continuing obligations under Section 22 of this
Agreement. upon the expiration of thiny (30) days' prior written notice and an opporrunity to
cure is provided to the City in the event that an insufficient number of accounts are assigned to
the Agency through either the lack of participating Cities or insufficient placements from
participating Cities.
II. Recall: The City shall have the right to recall an account from the Agency without charge
or penalty. If City continues to recall accounts after prior written notice of excessive recalls is
provided by the Agency, the Agency reserves the right to refuse additional assigned accounts
from the City if the City has excessive recalls.
12. Commission Limitations: The Agency shall not be entitled to a commission if any
unpaid booking fees are paid directly to the City before being assigned to the Agency. The
Agency shall not be entitled to a commission if the defendant pays the booking fee immediately
upon the defendant's conviction, on the day of the defendant's conviction, or prior to any contact
or attempted contact ~ia telephone, mailings. or personal interaction by the Agency.
13. Collection Activitv and TecbniQues: The Agency shaU, upon receipt ofan acco~m'.
the City. inunediately undertake to coUect such account through aU ethical and la'W-fu1 means and
must take action on aU accounts, smaU as weD as large. The Agency agrees to comply with all
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applicable Federal, State and local laws, rules, regulations or ordinances, and all current and
future provisions required thereby to be included berein are hereby incorporated by reference.
The Agency shall advise City of its collections techniques and, to the extent that they are lawful,
shall comply with said practices and all of the Agency's own promotion materials in carrying out
its obligations under this Agreement. The City reselVes the right to approve such techniques, but
the City shall have no legal duty to oversee the Agency's activities.
The City does not guarantee or ensure the accuracy of any accounts, information, or other data
provided to the Agency. To tbe extent that any such accounts, information, or data so provided
was supplied to the City by persons or entities wbo are not employees of the City, any liability
resulting from inaccuracies and/or omissions contained therein shall be limited to liability on behalf
of the Agency and/or the party who supplied the information to the City.
The City's approval of the Agency's work and materials furnished hereunder shall not in any way
relieve the AgenC)' 01 any responsibility for its acts or omissions under this Agreement. Neither
the City's review, approval, or acceptance of, nor payment for, any of the services performed by
the Agency shall be construed as a waiver of any rights under this Agreement or of any defense or
cause of action which it may have arising out oftbe performance of this Agreement.
14. Ouality Control: The Agency agrees to maintain a quality assurance program for its
employees which shall include, but not be limited to, periodic instruction on the ethical and legal
requirements in the collection of accounts.
15. Al!encv Collections: The Agency will accept and distnbute to the City, or its designee all
pa}ments received. The Agency may not collect interest, service or carrying charges on any
account unless otherwise instructed to do so in \liming the City. The Agency may arrange
payment schedules within the debto'r's current income and ability to pay.
For payments received within fIfteen (15) days of the Agency's initial booking fee obligation
notice, the Agency may, upon concurrence of the City, accept a single payment of at least two
hundred (5100) dollars as settlement for the booking fee obligation.
16. Al!encv Attornevs: Any attorneys employed to carry out the Agency's obligations under
- this Agreement shall be deemed to represent the Agency and not the City.
17. Attachment: The Agency may utilize the attachment process to enforce ajudgmenl or
collect an assigned account, when appropriate.
18. Uncollectable Accounts: The Agency sha1l report to the Coordinator designated by the
City all accounts deemed by it to be uncollectable. All such accounts shall be returned to the City
and the Agency shall have no rights to a commission for any sums thereafter collected upon those
accounts, except with approval from the City after the reactivation of those accounts.
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19. Montblv Statements: Within twenty (20) days after the end of each calendar month, the
Agency shall submit a wrinen report to the City which shall include a sununary of the fiscal
activity of all individual accounts assigned to the Agen~y by the City as of the end of said month.
20. Indeoendent Contrador: The Agency shall at all times be acting in the capacity of an
independent contractor. This Agreement is not intended nor shalI be construed to create the
relationship of agent, servant, employee, partnership, joint venture or association, as between City
and Agency. Agency understands and agrees that all persons furnishing services to the City
pursuant to this Agreement are, for purposes of Workers' Compensation liability, employees
solely of Agency and not of the City. The Agency agrees to indemnify the City for any tax,
retirement contnbution, social security, overtime payment, or workers' compensation payment
which the City may be required to make on behalf of the Agency or any employee of the Agency
for work performed under this Agreement.
21. Insurance: "'Without in any way affecting the indemnity herein provided and in addition
thereto the Agency shall secure and maintain throughout the term of this Agreement the following
types of insurance with limits as shown:
Worken' Compensation - The Agency shall maintain Workers' Compensation
insurance, as required by law in the State of California, and Employers' Liability insurance
(including disease coverage) in an amount not less than $1,000,000:00 per occurrence.
This insurance shall also waive all right to subrogation against the City and its officers,
employees, representatives, agents, and volunteers.
General Liability: The Agency shall maintain general liability insurance including
provisions for contractual liability. independent contractors, and broad form property
damage coverage. This insurance shall be on a comprehensive, occurrence basis form
with a standard cross liability clause and endorsement (ISO CG 20 I 0 or equivalent). The
City shall be named as an additional insured and the limit for this insurance shall not be
less than $ I ,000,000.00 per occurrence, combined single limit for bodily injury and
property damage.
Automobile Liability: The Agency shall maintain automobile liability insurance with
coverage for any vehicle including those owned, leased, rented, or borrowed. This
insurance shalI have an endorsement naming the City as an additional insured and with a
standard cross liability clause and endorsement (ISO CG 2010 or equivalent). The limit
amount lor this insurance shall nOI be less lhan $1,000,000.00 per occurrence, combined
single limit for bodily injury and property damage.
Professional Liability: The Agency shalI maintain professional liability insurance with
coverage for wrongful acts, errors, or omissions committed by the Agency in the course of
work performed for the City under this Agreement. This insurance shalI include coverage
for liability assumed under this Agreement when such liability is caused by the ~c:'Is.
wrongful acts. errors. or omissions. The limit for this insurance shalI be not less than
$ 1.000.000.00 per claim
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The premiums for said insurance coverage shall be paid by the Agency. Insurers shall
have a least an ~A, VII" policyholder's rating,in accordance with the current Best's Kev
Ratinll Guide or equivalent. In addition, any and all insurers must be authorized to
conduct business in the State of California, as evidenced by a listing in the official
publication of the Department of Insurance of the State ofCalifomia.
Additional Named Insured - All insurance policies requiring the City to be named as an additional
insured shall also contain additional endorsements naming the City and its officers, employees,
agents, representatives, and volunteers as additional named insured when acting in their capacity
as such in connection with the performance of this Agreement.
Waiver of Subrol!ation Rillhts - Except for the Errors and Omissions Liability and professional
Liability, Agency shall require the carriers of the above-required coverages to waive all rights of
subrogation against. the City, its officers, employees, agents, volunteers, contractors, and
subcontractors.
Policies Prirnarv and Non-Contributorv - All policies required above are to be primary and non-
contnbutory with any insurance or self-insurance programs carried or administered by the City so
that any coverage held by the City shall not contnbute to any loss under the Agency's insurance.
Proof of Covel1lie - Agency shall innnediately furnish Certificates of Insurance to the City
evidencing the insurance coverage , including endorsements, required above prior to the
commencement of performance of services hereunder, which Certificates shall provide that such
insurance shall not be terminated. canceled, or changed without first giving thirty (30) days
advance ""TIlten notice to the City, and Agency shall maintain such insurance from the time
Agency commences performance of services hereunder. Within sixty (60) days of the
commencement of this Agreement. the Agency shall furnish certified copies of the policies and all
endo rsements.
Insurance Review - The above insurance requirements are subject to periodic review by the City.
The City is authorized, but expressly not required, to reduce or waive any of the above insurance
requirements whenever it determines, in its sole discretion, that any of the above insurance
- policies are not available. are unreasonably priced. or are not necessary to fully protect the interest
of the City. In addition, if the City determines that heretofore unreasonably priced or unavailable
types of insurance coverage or coverage limits become reasonably priced or available, the City are
authorized, but not required, to change the above insurance requirements to required additional
types of insurance coverage or higher coverage limits, provided that any such change is
reasonable in light of past claims against the City, inflation, or any other item reasonably related to
the City's risk.
Any such reduction or waiver for the entire term of the agreement and any change requiring
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additional types of insurance coverage or higher coverage limits must be made by amendnii!fii to
this Agreement which is in writing and signed by all parties hereto. Agency agrees to execute any
such amendment within thirty (30) days of receipt.
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22. Indemnification: Agency agrees to indemnify, defend, and hold harmless the City and its
officers, employees, representatives, agents, and vo~teers from any and all claims, actions,
losses, damages, andlor liabilities arising from the acts or omissions of Agency and/or its
consultants, agents, officers, and employees, and for any costs, fees, or expenses incurred by the
City on account of any claim therefor; provided, however, that Agency's duty to indemnify and
hold harmless shall not include any claims or liabilities arising from the established sole negligence
or willful misconduct of the City or any of their authorized officials, employees, agents, or
volunteers.
23. Eaual Opportunity Em plover: The Agency shall maintain equal opportunity status
throughout the term of this Agreement.
24. Affirmative Action: Agency agrees that it shall take afflIlIlative action to ensure that the
intent of the Ci~s -discrimination policy is met and shall take affirmative action to ensure that
applicants are employed and that employees are treated equally during employment, without
regard to their race, color, religion, sex, ancestry or national origin. Such action shall include,
but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or
recruitment advertising; layoff or termination; rates of payor other forms of compensation; and
selection for training, including apprenticeship.
25. Assurance of Compliance witb Civil Ril!bts Laws: The Agency hereby assures that it
will comply the Title vn of the Ci\.il Rights Act of 1964,42 USC Sections 2000e(1) through
2000e(17) and 42 USC Section 12101, et seq., to the end that no person shall, on the grounds of
race. creed, color, sex national origin or disability be excluded from participation in, be denied the
benetits of. or be otherwise subjected to discrimination under this Agreement or under any
project. program or activity support by this Agreement.
26. Non-Assil!nable: The Agency shall not transfer, sell, or assign the Agreement or monies
due or to become due hereunder without prior wrinen consent of the City. For purposes of this
Agreement, a transfer shall constitute any sale of over fifty percent (50%) of the stock of the
Agency. or a number of sales that over time and in the aggregate exceed fifty percent (50%).
Violation of this provision shall be grounds for termination of the Agreement for cause and the
attempted assignment shall be voided. However, if the attempted assignment is not voided, then
all terms, conditions. and provisions hereof shall inure to and shall bind each of the parties hereto,
and each of their respective heirs, executors. administrators, trustees, successors, and assigns.
27. GovemiDl! Laws: This Agreement shall be construed in accordance with and governed
by the laws of the State ofCa1ifomia In the event of litigation between the parties, venue in state
trial courts shall lie exclusively in the County of San Bernardino. In the event of litigation in the
United States District Court, exclusive venue shall lie in the Central District ofCa1ifomia
28. Covenant Al!ainst Continl!ent Fees: The Agency warrants that no person o~11iilg'
agency has been employed or retained to solicit or secure this Agreement upon an agreement or
understanding for a commission. percentage. brokerage, or contingent fee, except bona fide
7
established commercial or selling agencies maintained by the Agency for the purpose of securing
business. For breach or violation of this warranty, the City shall have the right to terminate this
Agreement and in its sole discretion, to deduct fro~ the Agreement price or consideration or
otherwise recover, the full amount of such commission, percentage, brokerage or contingent fee.
29. Gratuities: The City may, by written notice to the Agency, terminate this Agreement
upon one (1) calendar day's notice, ifit finds that a gratuity in the fonn of entertainment, gifts or
otherwise was offered or given by the Agency, or any agent or representative of the Agency, to
any officer or employee of the City with a view toward securing an Agreement or securing
favorable treatment with respect to the awarding or amending, or the making of any determination
with respect to the performing of such Agreement. In the event of such tennination, the City shall
be entitled to pursue the same remedies against the agency as it could pursue in the event of
defauh by the Agency.
30. Notice of.DElavs: Except as otherwise provided herein, when either party has knowledge
that any actual or potential situation is delaying or threatens to delay the timely perfonnance of
this Agreement, that party shall, within fifteen (15) days, give notice thereof, including all relevant
information with respect thereto, to the other party.
31. Record Retention. Files and Records and Audit Settlement:
(a) Record Retention and Insnection: The Agency agrees that the City or any duly
authorized representative without advance notice shall have access to and the
rights to examine, audit, excerpt, copy or traDScnbe any pertinent transaction,
activity, time cards or other records relating to this Agreement during normal
working hours. Such material, including all pertinent cost, accounting, financial
records or proprietary data. must be kept and maintained by the Agency for a
period of fIve (5) years after completion of this Agreement unless the City's
written permission is given to dispose of material prior to this time.
(b) Audit Settlement: lfat any time during the tenn of this Agreement, or at any time
after the expiration or tenninati<>n of this Agreement, authorized representatives of
City may conduct an audit of Agency regarding the services provided to the City
hereunder, and such an audit finds an overpayment to the Agency or an
underpayment to the City which is deemed to be material by the City's auditors
pursuant to generally accepted accounting principles and generally accepted
auditing standards. then the Agency shall be liable for all costs incurred by the City
in conducting the audit. and the difference shall be paid, at the City's sole options,
by means of either (I) a cash payment from the Agency to the City or (2) a credit
against any future compensation due to the Agency or services rendered .
hereunder, plus interest thereon calculated at the legal rate. If such audit finds that
the City's dollar liability for services provided hereunder is more than commission
paid by the City to Agency. then the difference shall be paid to Agency by City via
cash payment. ..;;:=:-...
8
32. Validitv: If any term, condition, covenant, or provision of this Agreement is found by a
court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the
provisions hereof shall remain in full force and effect, and shall in no way be affected, impaired,
or invalidated thereby.
33. Waiver: No waiver of a breach of any provision of this Agreement by either party sbaIl
constitute a waiver of any other breach of said provision or any other provisions of this
Agreement. Failure of either party to enforce at any time, or from time to time, any provisions of
this Agreement, shall not be construed to be a waiver thereof. The remedies herein reserved shall
be cumulative and additional to any other remedies in law or equity.
34. Default for Insolvency: The City may cancel forthwith this Agreement for default in the
event of the occurrence of any of the following:
.
(a) Inse1vencv of Al!encv: The Agency sba1l be deemed to be insolvent ifit has ceased
to pay its debts in the ordinary cOW'Se of business or cannot pay its debts as they
become due, whether the Agency has committed an act of bankruptcy or not, and
whether insolvent within the meaning of the Federal Bankruptcy Law or not;
(b) The filing of a voluntary or involuntary petition to have the Agency declared
bankrupt;
(c) The appointment of a Receiver or Trustee for the Agency;
(d) The executing by the Agency of an assignment for the benefit of creditors.
The rights and remedies of the City provided in this clause shall not be exclusive and are in
addition to any other rights and remedies provided by law, equity! and lor under this Agreement.
35. Breach of Contract:
(a) Should any party violate or breach any term or condition to this Agreement, any
other party shall have , without limitation, the right to move for entry of judgment by a
court of competent jurisdiction, to seek specific performance thereof, and otherwise
exercise all remedies available to it under the law to obtain redress from injury or damage
resulting from such violation or breach.
(b) If all parties mutually agree before, during, or after litigation has begun, any
dispute or controversy arising out of, under, or in connection with , or in relation to this .
Agreement, and any amendrnC'lltS thereto, or the breach thereof, may be submitted to
Arbitration in accordance with the California Arbitration Act, sections 1280 through
1294.2 of the Code of Civil Procedure. The cost of such arbitration shall be paid bt-th.e
parties equally. ~;;;r- - ..
9
.-- ..
(c) In any proceeding brought to enforce the tenns and conditions of this Agreement,
the prevailing party therein shaD be entitled to recover all attorneys fees or other costs
actually incurred in connection with reaching a,resolution of the dispute whether or not an
action, claim, or lawsuit is filed. In any action brought, the entitlement to recover
attorneys fees and costs will be considered an element of costs and not of damages.
(d) The rights and remedies of the City provided in this clause shall not be exclusive
and are in addition to any other rights and remedies provided by law Wlder this
Agreement.
36. Notices: All notices required by or given in connection with this Agreement shall be
effective upon receipt or refusal of delivery and shall be personally delivered, sent by
nationally recognized overnight courier, or sent by registered mail with return receipt
requested. Notices to Agency shaD be to the attention of Chief Financial Officer, 6330
Gulfton, HoUston, TX 77081. Notices to the City shall be to Admin. Asst. to the
City Administrator, City Administrator's pffice, 300 No. D St.
San Bernardino. CA 92418 . Either party may change its
address or recipient for notices by giving notice of such change in compliance with this
section.
37. CouDtemarts: This Agreement may be executed simultaneously or concurrently in one
or more counterparts, each of which shall be deemed a duplicate original but all of which
together shall constitute one and the same Agreement.
38 Power aDd Authoritv: The signatories below represent that they are duly authorized to
executed the Agreement and to bind the respective parties for whom they are acting to the
provisions set torth therein.
City of San Bernardino
GC Services Limited Partnenhip
By: GC Financial Corp.
Managing General Partner
By:
By:
William R. Leighton
Chief Financial Officer
Executive Vice President
A~ as to '0'" as' ooot.ot
By: ?L
10
EXHIBIT "A"
STATEMENTOF.WORK
CITIES AND COUNTY OF SAN BERNARDINO COUNTY
1. GC Services (Agency) must designate a group manager (one individual for contact
purposes).
2. Agency must agree to comply with all applicable local, State and Federal consumer and
collection practice laws.
3. Agency m~ provide a MonthIv Collection A ""!y<oi. "Report to include monthly
placements in number and dollar volumes, gross collections in dollars and percentages
matched against the month the acCOlUlt was placed and collection fees in dollars and
percentages.
4. Agency must provide an Acknowledlmlellt Report. This report must include the
placement date, accolUlt number, name , address and amolUlt for each and every referral
submitted by the City and accepted by the Agency. Agency shall notify the City of those
referraIs not accepted by the Agency.
5. Agency will prepare and mail all notices.
6. If directed. Agency shall close and return all accolUlts to the City at the end of the
Agreement period unless instructed otherwise by the City because payments or
arrangements to pay have been made.
7. On accounts that the City assigns to Agency, the formal assignment shall be deemed to
occur ten (10) days after the date of the referral by the City.
8. The City shall assign accounts to Agency in such numbers and ratios as the City
determines.
9. The City reserves the right to have anyaccolUlt recalled at its discretion. The City shall
have the right to recall from Agency without charge or penalty individual acCOlUlts
assigned during the contract period.
10. All information provided Agency is to be used solely for the purpose of collection of those
accolUlts or in response to any regulatory inquiry, state audit. or other purpose approved
by the City. _ -:; _ ..
~
II. Agency shall collect accounts through all ethical and lawful means, and must take action
on all accounts. sma11 as well as large.
II
~
12. Agency sbaIl be responsible for all "start-up" and "up front" costs of this Agreement
and/or modification.
13. Agency sbaI1 report to each participating City all accounts deemed by Agency to be
unconectable.
14. Agency shan remit quarterly to the City's designee, the run amount of moneys coUected
on accounts assigned by the City, less the commiosioDS.
15. Agency must provide, upon request of the City Coordinator, a history of accoWlt
collection activity.
-
-
-- -
~/.
12
!" .0
EXHIBIT "B"
CITY RESPONSmILITY
CITIES AND COUNTY OF SAN BERNARDINO COUNTY
1. The participating City must select a single City coordinator to process and distribute
Acknowledgment Reports, Monthly Collection Analysis Report, Invoices and payments,
and Cancellation Reports.
2. The participating City will select an individual City Coordinator or create a committee to
act as a conllCt for aD the participating entities.
.
3. The City will forward accounts wbich it desires to be handled pursuant to this Agreement
to GC Services upon notification by the appropriate authority that a possible or actuaI
obligation for criminal justice administration fees is owed the City by an arrestee or
convict.
r~.~
I3
EXlllBIT "c"
AGEJ."iCY EMPLOYEE ACKNOWLEDGMENT
AND CONFlDEJ.'lTIALITY AGREEMENT
CnBSANDCOmfiYOFSk"iB~MmmOCOmfiY
AGENCYIEMPLOYER'S NAME
CONTRACT TYPEINUMBER
PROJECT NA..'.IEINUMBER
.
AGREEMENT FOR A PILOT PROGRA,\i FOR
THE COLLECTION OF BOOKING FEES
I hereby agree that I will not divulge to any unauthorized person any data or information obtained
while performing work pursuant to the above-referenced Agreement between my employer and
the Cities or County of San Bernardino. I agree to forward all requests for the release of any data
or infollllation received by me to my immediate supervisor.
I agree to keep confidential all heahh, crimioal, and welfare recipient records and all data and
infollllation pertaining to persons and/or entities receiving services from the Cities or County,
design concepts, algorithms, programs, formats, documentation, Agency proprietary information,
and all other original materials produced, created, or provided to or by me under the above-
referenced Agreement. I agree to protect these confidential materials against disclosure to other
than my employer, City, or County employees who have a need to know the information. I agree
that if proprietary information supplied by other City or County -.:endors is provided to me during
this employment, I shall keep such information confidential.
I agree to report to may immediate supervisor any and all violations of the Agreement by me
and/or by any other person of which I become aware. I agree to return all confidential materials
to my immediate supervisor upon completion of this Agreement or termination of my employment
with my employer, whichever occurs first.
I acknowledge that violation of this Agreement will subject me to civil and/or criminal action and
that the County of San Bernardino an all Cities therein may seek all possible legal redress.
Name:
Date:
(Signature)
Name:
Position:
~~ ~
( Prin()
14
EXBIBIT "D"
FEE SCHEDULE
CmES AND COUNTY OF SAN B.f:RNARDINO COUNTY
RATE
CATEGORY
ModDY Agreement
1
2
3
4
5
6
7...
ModDY Agreement
RECOVERY
RATE PERCENT
9.05 and above
9.0 - 8.4
8.3 - 7.1
7.0 - 6.0
5.9 - 5.3
5.2 - 4.8
4.7 - 4.3
4.2 - 3.8
3.85 and below
~ONTlNGENCY FEE
ModUY Fee Schedule
60 Percent of Actual Collections
64 Percent of Actual Collections
68 Percent of Actual Collections
70 Percent of Actual Collections
72 Percent of Actual Collections
74 Percent of Actual Collections
78 Percent of Actual Collections
ModDY Fee Schedule
Initial Continllencv Fee Rate: The initial contingency fee rate shall be sixty-eight (68) percent.
Review of Continl!encv Fee Rate: Reviews of the contingency fee rate sbaIl occur after the
initial twelve (12) months of operation and every six (6) months thereafter. The purpose of the
reviews sbaIl be to determine the need for modification of the contingency fee rate.
Modification of ContiDl!:encv Fee Rate: The rate sbaIl be modified, in accordance with the
appropriate rate category set forth in the above table. Based on the overal1 recovery rate obtained
during the first six months of the previous eight month period inunediately preceding the month of
review as stated in the previous section.
In the event tbat recovery is 9.05 percent or greater, or is 3.85 percent or below the parties to the
agreement. at their option, may either renegotiate the contract or withdraw from the agreement.
Formula:
_ (COLL PeT') X (SUM OF THE MONTHS per') ~ THE WEIGHTED COLLECTION PERCENTAGE
ExIImple ClJlcllhdioll 011 Nat Page
15
~;:..-:
.~ .0
Examole Cllkultdion
Month 1 :z .3 4 5 6 7 8
JA!'! Em MAR APR MAY lm! JUL AUG
Col1ection percentage) 10.2 6.0 11.1 10.1 6.7 4.6 3.8 1.5
Multiplied sum of the months
percentagez : ZUl ml !2.Qi 14.29 ~ 4.76 N/A N/A
Weighted monthly recovery
rate 2.2.l 1& Ul 1M M .22 N/A N/A
Sum of weighted monthly
recovery rates ~
-
-
Formala:
_ (COLL PCT') X (SUM OF TIlE MONTHS PC1'i = TIlE WElGIITED COUECl1ON PERCENTAGE
I Collectiol1 pen:elltage as swed in the "M0IIlhly Collection AI1aIysis Report" provided 10 the CITY ~.< ..
pumIaII1l0 Exbibil M A", Statement ofWmI<. i1em:3.
, Pen:eI1Iages are the result of a sum of the molllbs method, [Mo11lbi{{n+112)12)], when: the lint DIOI1lb of the eight
mol1lh period is assitpled a weight of 6, the second mol1lh of the eight mol1lh period is assigned a weight of S, and
this is cOl1til1Ued UIIulthe sixth moI1Ih oftbe eight moI1Ih period is assigned i1s weight of I.
16