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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Frum: Fred Wilson, City Administrator
Date: July 3, 1997
(G@[?))1
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.
Dept: City Administrator
Synopsis of Previous Council Action:
None.
I Recommended Motion:
That said ordinance be laid over for final adoption,
and adopt resolution.
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C lct person: Ian Wages. Administrative Assistant to the City Administrator
Phone
5122
Supporting data attached: Staff Rc:port. Ordinance. and Agreement
Ward: N/ A
FUNDING REQUIREMENTS: Amount: N/ A
Source:(Acct. No.) N/ A
(Acct. Description)
Finance:
Council Notes:
Previously - . /7/1-f~, IJ~'//fl
rei I ~/97
Agenda Item No; -=If- 3/
continued to 0 '1fr2-/'ll
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
B....~uound:
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 fee 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 16.027A) 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 ~al Authoritr to Collect Bookinf 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.
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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 feel 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.
Wh- amouot ...,.11 ..hI' C~ ~ to Jl....nver?
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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2
AN ORDINANCE OF TIlE CITY OF SAN BERNARDINO, CALIFORNIA,
ADDING CHAPTER. 3.80 TO TIlE CITY OF SAN BERNARDINO MUNICIPAL
3 CODE FSfABUSlUNG A COST RECOVERY SYSTEM FOR BOOKING FEE
4 COllEcnONS.
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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 rdated to said arrest.
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'\VHElmAS, 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
11 other costs incurred in connection therewith.
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WHEREAS, the Common Council fmds that the amount of the charges hereby
adopted do not exceed the reasonably anticipated costs charged by the County for the
booking or other processing of persons arrested and other costs blcurred in connection
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).
16
WHEREAS, the Common Council further finds that these fees are charged for the
17 purpose of meeting the City's operating expenses and recovering funds paid from the City
18 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).
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NOW, TIIEREFORE, the Common Council of the City of San Bernardino does
hereby ordain as follows:
SECfiON 1. Title 3 of the San Bernardino Municipal Code is hereby amended by
adding CHAPTER 3.80 COST RECOVERY SYSTEM FOR BOOKING FEE
COllEcnONS, as follows:
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25 III
III
26 III
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July 30, 1997
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(CHAPTER. 3.80)
COST RECOVERY SYSTEM FOR :BOOKING FEE COllECllONS
Sections:
3.80.010
3.80.020
3.80.030
.
3.80.040
3.80.050
3.80.060
Authority and Scope
Purpose
Dc6Ditions
Method of A'..,.....g Amount of Fees
Amount of Fees Cotlected
Seve:r2bility
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.
15
16
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. . .
19
20
21
Section 3.80.020 Purpose
Section 3.80.030 Dc6Ditions
A.
.City. means the City of San Bernardino
B.
.County. means the County of San Bernardino
22
23 Section 3.80.040 Method of AssessiDg Amount of Fees
24 Pursuant to Government Code Section 29550.1 the City shall charge a fee equal to
25 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
26 a criminal offense related to said arrest. .
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July 30, 1997
28
2
AN ORDINANCE OF TIlE CITY OF SAN BERNARDINO, CALIFORNIA,
ADDING CHAPTER 3.80 TO TIlE CITY OF SAN BERNARDINO MUNICIPAL
CODE ESTABUSHING A COST RECOVERY SYSTEM FOR BOOKING FEE
COllECDONS.
1
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3
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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
7
Section 3.80.060
Sever:ability
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 r"",,,;n;ng 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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SEcnON 2. EFFECI1VE DATE
This ordinance shall become effective 30 days after its adoption.
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July 30, 1997
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AN ORDINANCE OF TIlE CITY OF SAN BERNARDINO. CALIFORNIA.
ADDING CHAPI'ER. 3.80 TO TIlE CITY OF SAN BERNARDINO MUNICIPAL
1 CODE FSfABIlSHING A COST RECOVERY SYSTEM FOR BOOKING FEE
C0llF.Cl10NS.
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I HF.RE.BY 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
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7
, 1997, by the following vote. to wit:
Council Members
NAYS
ABSTAIN ABSENT
Am.
NEGRETE
8
CURLIN
9
ARIAS
10
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12
.
.
OBERHEIMAN
DEVLIN
13 ANDERSON
14 MTTT Fll
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City ~lerk
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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
RESOLUIlON NO._
1
2 RESOLUIlON OF 1HE CITY OF SAN BERNARDINO APPROVING AN
AGREEMENT \VDH GC SERVICES LIMITED PARTNERSHIP TO COllEcr
3 CRIMINAL JUSTICE ADMINISTllATION FEES FROM ARRESI'ED AND
4 CONVlt;UID PERSONS ON BEHALF OF 1HE CITY OF SAN BERNARDINO.
BE IT RESOLVED BY 1HE MAYOR AND COMMON COUNCll. OF 1HE
CITY OF SAN BERNARDINO AS FOLLOWS:
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8 the City of San Bernardino an agreement for special services with GC Services Limited
SEcnON t. The Mayor is hereby authorized and directed to execute on behalf of
9 Partnership, ~ copy of which is attached hereto and incorporated herein as Exhibit . A "
.
10 at no cost to the City, for collection of unpaid crimin,,1 justice adminiot:ration fees.
11
12 SEcnON 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
14 of the resolution.
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July 24, 1997
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RESOLUIlON APPROVING AN AGREF.MENT WITH GC SERVICES LIM1TED
PARTNERSlDP TO COLLECr CRIMINAL JUSTICE ADMINISTRATION FEES
1 FROM ARRFSfED AND CONVICI'ED PERSONS ON BEHALF OF THE CITY OF
SAN BERNARDINO.
2
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor
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4 and Common Council of the City of San Bernardino at a
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meeting thereof,
held on the _day of
, 1997, by the following vote, to wit:
Council Members
NAYS
ABSTAIN ABSENT
~
NEGRETE
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- -
- -
- -
- -
- -
- -
CURLIN
.
. .
ARIAS
OBERHElMAN
City, Clerk
The foregoing resolution is hereby approved this _day of
,1997.
TOM MINOR, Mayor
City of San Bernardino
Approved as to form and
legal content:
James F. Penman,
City ttorney ;,
". ::1 I.
26 By:
27 a:4 24,1997
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Exhibit "A"
AGREEMENTFORAP~OTPROGRAM
FOR THE COLLECTION OF
.
BOOKING FEES
THIS 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 OEo ADELANTO, TOWN OF APPLE VALLEY, CITY OF BARSTOW,
CITY OF BIG BtAR LAKE, CITY OF CHINO, CITY OF CHINO IDLLS, CITY OF
COLTON, CITY OF FONTANA, CITY OF GRAND TERRACE, CITY OF HESPERIA, CITY
OF IDGHLAND, CITY OF LOMA LINDA, CITY OF MONTCLAIR, CITY OF NEEDLES,
CITY OF ONTARIO, CITY OF RA.'l'CHO CUCAMONGA, CITY OF REDLANDS, CITY OF
RlALTO, CITY OF Sk'l' BERNARDINO, CITY OF TWENTYNINE PALMS, CITY OF
UPLk'l'D, 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
State 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 I, 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 comection 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 arlm;ni~trative costs,
- - including applicable overhead costs as permitted by federal Circular A-S7 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 comection 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 crimina1 justice administration fee imposed by the County from the arrested person if the
person is convicted of any criminal offense related to the arrest.
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 govemmental. 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'').
.
COVENANTS
.
NOW THEREFORE, in consideration of the preceding Recitals and the mutual Covenants
contained herein, the parties hereto agree as follows:
1. SeoDe: 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. Ae: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 descnlled 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 and/or are
necessary to satisfy the terms 0 f this Agreement.
3. ComDensation: 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 Exlullit "D" 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 IIoTiting 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 and/or 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 tor any costs or expenses incurred by Agency.
4. City Duties: The responsibilities of the City under this agreement shall be as set fortQ.
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herein and in Exhibit -B" attached hereto and incorporated herein by this reference. _:.r-
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5. Term: 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 expirat!<>n. 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. Cbanl!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 Al!encv: The Agency shall maintain local telephone listings or toll-free 800
numbers to serve the City where debtors may contact the Agency or its anorney regarding the
amounts due on unpaid booking fees.
8. Use of Citv Seal or Letterbead: The Agency sha1I not use or display the official logos
or seals of the Citr on 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 10ca1law or
regulations, all 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 sha1I read and sign the Confidentiality Agreement attached hereto as Exhibit "C".
10. Reevaluation: The City reserves the right to reevaluate and to adjust, cancel, or recall
any accounts assigned for collections 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 thirty (30) days' prior written notice and an opportunity 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.
11. Recall: The City sha1I have the right to recall an account from the Agency without charge
or penalty. If City continues to recall accounts after prior .."ritten notice of excessive reca11s 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 sha1I 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.
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13. Collection Activitv and Tecbniaues: The Agency shaD. upon receipt ofan accollllf1ffiiii<
the City. inunediately undertake to collect such account through all ethical and Ia....ful means and
must take action on all accounts. small as well 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 sha11 advise City of its co Dections techniques and, to the extent that tbey are lawful,
sha1l comply with said practices and all of the Agency's own promotion materials in carrying out
its obligations under this Agreement. The City reserves 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 tbe Agency. To tbe extent that any such accounts, information, or data so provided
was supplied to the City by persons or entities who are not employees of the City, any liability
resulting from inaccuracies andlor omissions contained therein shall be limited to liability on behalf
of the Agency andlor the party who supplied the information to the City.
The City's approval of the Agency's work and materials furnished hereunder sha1l not in any way
relieve the Agen!:)' 01' any re5pOOSIbility 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 of the performance of this Agreement.
14. Quality 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 wTiling the City. The Agency may arrange
payment schedules within the debtor'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 (5200) 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 a judgment or
collect an assigned account, when appropriate.
18. Un collectable Accounts: The Agency sha1l report to the Coordinator designated by the
City all accounts deemed by it to be uncollectab1e. All such accounts sha1l be returned to the City
and the Agency sha1l 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. Monthlv Statements: Within twenty (20) days after the end of each calendar month, the
Agency shall submit a ....Tinen report to the City which shall include a summary of the fiscal
activity of all individual accounts assigned to the Agen~y by the City as of the end of said month.
20. IndeDendent Contractor: The Agency shall at all times be acting in the capacity of an
independent contractor. This Agreement is not intended nor shall 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; \vithout 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 foDowing
types of insurance with limits as shown:
Workers' 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 2010 or equivalent). The
City shall be named as an additional insured and the limit for this insurance shall not be
less than S 1.000,000.00 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 shall 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 not be less than 51,000,000.00 per occurrence, combined
single limit tor bodily injury and property damage.
Professional Liability: The Agency shall 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 shall include coverage
for liability assumed under this Agreement when such liability is caused by the ~C'/s'
wrongful acts. errors. or omissions. The limit tor this insurance shall be not less than
S 1.000.000.00 per claim.
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The premiums for said insurance coverage sball be paid by the Agency. Insurers sball
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 of California.
Additional Named Insured - All insurance policies requiring the City to be named as an additional
insured sball 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 Subrollation Rillhts . Except for the Errors and Omissions Liability and professional
Liability, Agency sball require the carriers of the above-required coverages to waive an rights of
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subrogation against the City, its officers, employees, agents, volunteers, contractors, and
subcontractors.
Policies Primarv and ~on-Contrlbutorv - All policies required above are to be primary and non-
contributory 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 Coveralle - Agency sball iImnediately 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 sball provide that such
insurance shall not be terminated, canceled, or changed without first giving thirty (30) days
advance viritten notice to the City, and Agency sball maintain such insurance from the time
Agency commences performance of sen-;ces hereunder. Within sixty (60) days of the
commencement of this Agreement. the Agency shall furnish certified copies of the policies and all
endorsements.
Insurance Re";ew . 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 requ!ting
additional types of insurance coverage or higher coverage limits must be made by amen~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 volJmteers from any and all claims, actions,
losses, damages, and/or 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 Oooortunitv Emolover: The Agency shall maintain equal opportunity status
throughout the term of this Agreement.
24. Affirmative Action: Agency agrees that it shall take afflI1Dlltive 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 fonowing: 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 Comoliance witb Civil Rillbts Laws: The Agency hereby assures that it
will comply the Title vn of the Civil 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-Assilmable: The Agency shall not transfer, sen, or assign the Agreement or monies
due or to become due hereunder without prior ....Tinen consent of the City. For purposes of this
Agreement, a transfer shan 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 shan 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
established commercial or selling agencies maintained by the Agency for the pwpose 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 (I) calendar day's notice, if it 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
default by the Agency.
30. Notice of.DeJavs: Except as otherwise provided herein, when either party bas knowledge
that any actual or potential situation is delaying or threatens to delay the timely performance of
this Agreement, that party shall, within fifteen (IS) 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 Insoection: 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 transcnee 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 pennission is given to dispose of lllaterial prior to this time.
(b) Audit Settlement: If at any time during the tenn of this Agreement, or at any time
after the expiration or tennination 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 pa}ment 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 doUar liability for services provided hereunder is more than commission
. paid bv the City to Agency. then the difference shall be paid to Agency by City via
. --
cash payment. _.;;.-- - ..
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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 shall
constitute a waiver of any otber breach of said provision or any other provisions of this
Agreemetrt. 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 Insolvencv: The City may cancel forthwith this Agreement for default in the
event of the occurrence of any of the following:
.
(a) IllSCllvencv of Ailency: The Agm:y shall be deemed to be insolvent ifit bas ceased
to pay its debts in the ordinary course of business or cannot pay its debts as they
become due, whether the Agency bas 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 ofa 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 bas begun, any
dispute or controversy arising out of, under, or in connection with , or in relation to this .
Agreement, and any amendments 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 ~
parties equally. -:;;-- - ..
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(c) In any proceeding broughllo enforce the lenus and conditions of this Agreement,
the prevailing party therein shall be entitled to recover all attorneys fees or other costs
actually incurred in coonection 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 clement of costs and not of damages.
(d) The rights and remedies of the City provided in this clause shall not be exclusive
and arc in addition to any other rights and remedies provided by law under 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 sba11 be to the attention of Chief Financial Officer, 6330
Gulfton, HoUston, TX n08I. Notices to the City sbaI1 be to Admin. Asst. to the
City Administrator, City Administrator's pffice, 300 No. D St.
San Bp....nardino. CA 92418 . Either party may change its
address or recipient for notices by giving notice of such change in compliance with this
section.
37. CouDternarts: This Agreement may be executed simuhaneously 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 and Authority: The signatories below represent that they are duly authorized to
executed the Agreement and 10 bind the respective parties for whom they are acting to the
provisions sel torth therein.
City of San Bernardino
GC Services Limited Partnenhip
By: GC Financial Corp.
Managing General Partner
By:
By:
Wtlliam R. Leighton
Chief Financial Officer
Executive Vice President
.~ as to '0"' ... ,o.t..t
By: r.L
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EXHIBIT "A"
STATEMENT OF. 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 IIIU$ provide a Monthlv Collection AnaMis -Report to include monthly
placements in nwnber and dollar volumes, gross COllectiODS in dollars and percentages
matched against the month the account was placed and coUection fees in dollars and
percentages.
4. Agency must provide an Acknowled"""'nt Retx>rt. This report must include the
placement date, account number, name , address and amount for each and every referral
submitted by the City and accepted by the Agency. Agency sba1l notifY the City of those
referra1s not accepted by the Agency.
5. Agency will prepare and mail all notices.
6. If directed. Agency shall close and return all accounts 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 sba1l assign accounts to Agency in such numbers and ratios as the City
determines.
9. The City reserves the right to have any account recalled at its discretion. The City shall
have the right to recall from Agency without charge or penalty individual accounts
assigned during the contract period.
10. AU information provided Agency is to be used solely for the purpose of collection of those
accounts or in response to any regulatory inquiry, state audit, or other purpose approved
by the City. y~:.
II. Agency shall collect accounts through all ethical and lawful means, and must take action
on all accounts. small as well as large.
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12. Agency shall be responsible for an "start-up" and "up front" costs of this Agreement
and/or modification.
13. Agency sball report to each participating City an accounts deemed by Agency to be
uncollectable.
14. Agency shall remit quarterly to the City's designee, the full amount of moneys collected
on accounts assigned by the City, less the commissions.
15. Agency must provide, upon request of the City Coordinator, a history of account
c:oDec:tion activity.
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4
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EXHIBIT "B"
Crn' 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 Conection 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 conq,ct for an the participating entities.
.e
3. The City will forward accounts which it desires to be handled purswmt to this Agreement
to GC Services upon notific'Slril)Q by the appropriate authority that a possible or actual
obligation for criminal justice administration fees is owed the City by an arrestee or
convict.
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EXHIBIT "C"
AGL~CYEMPLOYEEACKNOWLEDGMrnNT
AJ.~ CONFIDL~TIALITY AGREEMENT
CITIES AJ.~ COUNTY OF SAJ.~ BERNARDINO COUNTY
AGENCY/EMPLOYER'S NAME
CONTRACT TYPEINUMBER
PROJECT NAJ.\iE/NUMBER
.
AGREEMENT FOR A PILOT PROGRAM 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 an requests for the release of any data
or information received by me to my immediate supervisor.
I agree to keep confidential an health, criminal. and welfare recipient records and an data and
information pertaining to persons andlor entities receiving services from the Cities or County,
design concepts, algorithms, programs, formats, doC1l1'N'l'lhltiOn, Agency proprietary information,
and an 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 an violations of the Agreement by me
andlor by any other person of which I become aware. I agree to return an 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 andlor criminal action and
that the County of San Bernardino an an Cities therein may seek all possible legal redress.
Name:
Date:
(Signature)
Name:
Position:
:s: - '-
~
( Prin(!
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EXHIBIT "D"
FEE SCHEDULE
CmES AND COUNTY OF SAL'! B~RNARDINO COUNTY
RATE
CATEGORY
ModifY Agreement
1
2
3
4
5
6
7__ ..
ModifY 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
CONTINGENCY ~E
ModifY Fee Schedule
60 Percent of Actual Collections
64 Percent of Actual CoDections
68 Percent of Actual Collections
70 Percent of Actual Collections
72 Percent of Actual Collections
74 Percent of Actual CoDections
78 Percent of Actual CoDections
Modify Fee Schedule
Initial ContiDllencv Fee Rate: The initial contingency fee rate shall be sixty-eight (68) percent.
Review of Contin2encv Fee Rate: Reviews of the contingency fee rate shall occur after the
initial twelve (12) months of operation and every six (6) months thereafter. The purpose of the
reviews shall be to determine the need for modification of the contingency fee rate.
Modification of Contin2encv Fee Rate: The rate shall be modified, in accordance wid1 the
appropriate rate category set forth in the above table. Based on the overall recovery rate obtained
during the first six months of the previous eight month period immediately preceding the month of
review as stated in the previous section.
In the event that 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 per') X (SUM OF TIlE MONTHS per') - TIlE WEIGHTED COu.EcnON PERCENTAGE
Exsunple ClIlclIlIItion on !Val Page
.---
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ExmnDle Cakll/atio"
Moath 1 2 "3 .. 5 6 7 8
JAN FEB MAR APR MAX JUN JUt AYQ
Collection percentagel 10.2 6.0 11.1 10.1 6.7 4.6 3.8 1.5
Multiplied sum of the months
percenragez : ~ 2m 12M .w2 W 4.76 NJA NJA
Weighted monthly recovery
rate 2.2l UJ. Ul 1M M .22 N/A N/A
Sam of weighted monthly
recovery rates ~
-
-
Formala:
- (COll. PCT') x (SUM OF TIlE MON1lfS PCTi - TIlE WElGIfI1ID COllECTION PERCENTAGE
, Collection perceD1age as SIaIed in !be"'MombIy CoUCdioa AuaIysis Report" provided to !be CITY coo~.< ".
pI1I1UaDt 10 Exhibit M AM, Statement oYW"",- item,].
: Pen:catages are !be result ofa sum oftbe mombs method, [MoatIw'((D+D~)), ~ tbe lint IIlOIIlb oftbe eight
mol1lh period is assiped a weigbt of 6, tbe secoad moI1Ih of die eighl moI1Ih period is assipeel a weight of S, aDd
this is CODliaued lIIIlil the sixth moI1Ih ofdle eigbt moI1Ih period is ...;IV"'" its weigbt of 1.
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