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HomeMy WebLinkAbout29- Finance CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL.ACTION AL From: Barbara Pachon, Subject: Resolution authorizing the Director of Finance execution of an agreement with PMR Progressive LLC to provide Dept: Finance Collection Services of delinquent accounts for the City of San Date: June 30, 2010 Bernardino. Council Meeting: 7/6110 Synopsis of Previous Council Action: None Recommended motions: That said Resolution be adopted; and that the agreement take effect on September 2, 2010. 094""'. 11x2' zy Signatu e Contact person: Barbara Pachon, Director of Finance Phone: 5242 Supporting data attached: Staff Report, Attachments Ward: All FUNDING REQUIREMENTS: Amount: Source: Finance: Council Notes: �y) 1 ESA Agenda Item No. Z -7/&11D fl.,.lew......-� AI,V_c CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT SUBJECT: Resolution authorizing the execution of an agreement with PMR Progressive LLC, of Woodland Hills, CA,to provide collection services of delinquent accounts for the City of San Bernardino. BACKGROUND: As part of the City Manager's effort to improve and streamline collections in the City, Finance has been tasked to accomplish this goal. This item of obtaining a vendor to provide centralized debt collection is the first step in this process. Currently the City of San Bernardino does not have a centralized vendor performing the delinquent debt collection function for the City as a whole. There is currently uncollected revenue owed to the City in several areas like residential and commercial trash services, false alarm fees, emergency medical services, Animal Control citations, delinquent and lost library books, and Parking Enforcement Citations. Working with a collection vendor the Finance Department will coordinate the collection of past due revenues for all Departments in the City. REQUEST FOR PROPOSAL PROCESS AND CONTRACT AWARD: On January 12, 2010, the City of San Bernardino Purchasing Department issued a Request for Proposal (F-10-11) for Collection Services. The RFP was posted on the City's website, sent to the San Bernardino Chamber of Commerce and notices were mailed to fifteen(15) vendors. The City received thirteen (13) responses to our Request for Proposal with two (2) deemed as non- responsive. An evaluation committee comprised of various City Departments evaluated all responses. Several factors were taken into consideration as these proposals were reviewed including, capabilities of the Collection Agency qualifications and related experience and reasonableness of cost and price. The standardized city evaluation criteria were used which included such things as: • Capabilities of Firm to Effectively Complete the Project Requirements—35% • Qualifications of Finn/Related Experience—45% • Reasonableness of Cost and Price— 10% • Completeness of Response—5% • Local Vendor Preference—5% Staff Report Page—2 The term of this agreement is for a period of three (3) years, effective 9/2/10, (with the option of two one-year extensions at the City's discretion). An effective date of 9/2/10 is being requested in order for an ordinance to be brought forward at the next Council meeting to amend the Municipal Code to clarify Finance authority to proceed with a city wide debt collections process. The City Attorney's Office has agreed to this process and has drafted the ordinance which Finance will have on the next Council Agenda. Below is the list of companies who provided bid responses. Company Name Company Location United Adjustment Corp. Kentland, IN Money Control, Inc. Riverside, CA Vengroff Williams Garden Grove,CA MRS Cherry Hill,NJ RSI Enterprises Glendale,AZ PerSolve LLC Chatsworth,CA Penn Credit Corp Harrisburg,PA The Sagres Company Solana Beach, CA EOS/CCA Norwell,MA Sequoia Glendale,CA States Recover Systems, Rancho Cordova, hic., CA Financial Credit Network Visalia,CA PMR Progressive LLC was not the lowest-cost bid; however, many of the lower-cost companies were out of state which would increase other costs. hi addition, many of the lower-cost companies did not indicate that they could meet all of our requirements, and/or had little or no municipal experience. The proposed bid prices by the above companies ranged from 8.5% to 50% of the amount collected. Most bid prices were in the 21% to 28% range. The evaluation committee did not feel that the bid at the 8.5%was as qualified and capable as most of the other bids,nor did they respond completely to the RFP. Two of the references provided by PMR Progressive LLC were contacted by a member of the evaluation committee and indicated that they would recommend the company to others. Three other references provided letters of reference which were included in the bid document. Given the qualifications of PMR Progressive LLC, it is recommended that the Mayor and Common Council adopt the resolution and engage PMR Progressive LLC. to begin collection services on delinquent accounts. Staff Report Page—3 FINANCIAL IMPACT: The proposed firm has fixed fees for primary debt collection services provided by PMR Progressive, LLC for the City of San Bernardino are as follows: Emergency Medical Services Debt Collection Fee 28% (of the amount collected) All other Debt Collection Fee 26% (of the amount collected) PMR justifies the increased fee for Emergency Medical Services because it tends to be more difficult to locate these debtors,which makes the balances harder and more costly to collect. RECOMMENDATION: Adopt Resolution Exhibit A AGREEMENT FOR SERVICES WITH PMR PROGRESSIVE LLC. TO PROVIDE COLLECTION SERVICES OF DELINQUENT ACCOUNTS FOR THE CITY OF SAN BERNARDINO This AGREEMENT ("Agreement") is made and entered into this _ day of 2010 ("Effective Date") by and between the CITY OF SAN BERNARDINO, a charter city ("City"), and PMR Progressive LLC. ("Contractor")(sometimes jointly referred to herein as the "Parties"). WITNESSETH: A. WHEREAS, the City proposes to have Contractor perform collection services of delinquent accounts, and; B. WHEREAS, the City wishes to achieve acceptable collection rates on its delinquent accounts receivables; and C. WHEREAS, it has been determined by the Director of Finance that Contractor assistance is necessary to achieve acceptable collection rates on its delinquent accounts receivables; and D. WHEREAS, Contractor has submitted the most responsive and cost effective proposal to provide collection services of delinquent accounts. E. WHEREAS, Contractor represents that it has that degree of specialized expertise contemplated within California Government Code, Section 37103, and holds all necessary licenses to practice and perform the services herein contemplated; and F. WHEREAS, no official or employee of City has a financial interest, within the provisions of California Government Code, Sections 1090-1092, in the subject matter of this Agreement. NOW THEREFORE, in consideration of mutual covenants and conditions contained herein,the parties hereby agree as follows: 1.0. SERVICES PROVIDED BY CONTRACTOR 1.1. Scone of Services. Contractor shall provide to City, Collection Services of delinquent accounts, in accordance with the proposal dated January 12, 2010(F-10-11). 1.2. Professional Practices. All professional services to be provided by Contractor pursuant to this Agreement shall be provided by personnel experienced in their respective fields and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by professional consultants in similar fields and circumstances in accordance with sound professional practices. Contractor also warrants that it is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Contractor's performance of this Agreement. t 1.3. Warrant y Contractor warrants that it shall perform the services required by this Agreement in compliance with all applicable Federal and California employment laws including, but not limited to those laws related to minimum hours and wages; occupational health and safety; fair employment and employment practices; workers' compensation insurance and safety in employment; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement. Contractor shall indemnify and hold harmless City from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description including attorneys' fees and costs, presented, brought, or recovered against City for, or on account of any liability under any of the above-mentioned laws, which may be incurred by reason of Contractor's performance under this Agreement. 1.4. Non-discrimination. In performing this Agreement, Contractor shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religion, color, national origin, ancestry, age, physical handicap, medical condition, marital status, sexual gender or sexual orientation, or any other category protected by law, except as permitted pursuant to Section 12940 of the Government Code. Violation of this provision may result in the imposition of penalties referred to in Labor Code, Section 1735. 1.5. Non-Exclusive Agreement. Contractor acknowledges that City may enter into agreements with other contractors for services similar to the services that are subject to this Agreement or may have its own employees perform services similar to those services contemplated by this Agreement. 1.6. Delegation and Assignment. This is a personal services contract, and the duties set forth herein shall not be delegated or assigned to any person or entity without the prior written consent of the City. 1.7. Business License. The Contractor shall obtain and maintain a valid City Business Registration Certificate during the term of this Agreement. 1.8. Duty of Loyalty/Conflict of Interest. The Contractor understands and agrees that as the City's Contractor for collection services of delinquent accounts, Contractor shall maintain fiduciary duty and a duty of loyalty to the City in performing Contractor's obligations under this Agreement. Contractor, in performing its obligations under this Agreement, is governed by California's conflict of interest laws, Government Code Section 87100 et seq., and Title 2, California Code of Regulations Section 18700 et seq. 2.0 COMPENSATION AND BILLING 2.1.1 Compensation. For the performance of the services described in Contractor Responsibilities, the Contractor shall retain 28%of the gross amount the Contractor has collected on delinquent Emergency Medical Services accounts receivable and 26%of the gross amount the Contractor has collected on all other delinquent accounts receivable. 2.1.2 Contractor shall submit a monthly report to the City indicating the amounts collected on all delinquent accounts receivable,the portion payable to the Contractor, and the net amount the Contractor is remitting to the City. 2 2.2. Additional Services. Contractor shall not receive compensation for any services provided outside the scope of services specified in the RFP unless the City or its designee, approves such additional services in writing prior to Contractor performing the additional services. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable. 2.3. Records of Audits. Records of Contractor's services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times for a period of three(3)years from the Effective Date. 3.0 TIME OF PERFORMANCE 3.1. Commencement and Completion of Work. The obligation to perform the professional services to be performed pursuant to this Agreement shall commence within five (5) days from the Effective Date of this Agreement. Said services shall be performed in strict compliance with the RFP issued by the City's Purchasing Manager. Failure to commence work in a timely manner and/or diligently pursue work to completion may be grounds for termination of this Agreement. 3.2. Excusable Delays. Neither party shall be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties. Such acts shall include,but not be limited to, acts of God, fire, strikes, material shortages, compliance with laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a ply. 4.0 TERM AND TERMINATION 4.1. Term. This Agreement shall commence on September 2, 2010 and shall remain in full force and effect for a period of three (3) years, with the option of two one-year extensions at the City's discretion. 4.2. Notice of Termination. The City reserves and has the right and privilege of canceling, suspending or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time, by providing written notice to Contractor. The termination of this Agreement shall be deemed effective upon receipt of the notice of termination. In the event of such termination, Contractor shall immediately stop rendering services under this Agreement unless directed otherwise by the City. 4.3 Compensation. In the event of termination, City shall pay Contractor for reasonable costs incurred and professional services satisfactorily performed up to and including the date of City's written notice of termination. Compensation for work in progress shall be prorated as to the percentage of work completed as of the effective date of termination in accordance with the fees set forth herein. hi ascertaining the professional services actually rendered hereunder up to the effective date of termination of this Agreement, consideration shall be given to both completed work and work in progress, to complete and incomplete documents pertaining to the services contemplated herein whether delivered to the City or in the possession of the Contractor. 3 The Contractor shall give City a list of outstanding debtors so that City can notify debtors to stop sending payments to Contractor. Any payments received after the termination date but before notification to debtors, to stop sending payments to Contractor, shall be forwarded to City. Any payments received after Debtors are notified, to stop sending payments to Contractor, shall be forwarded to City. 4.4. Documents. In the event of termination of this Agreement, all documents prepared by Contractor in its performance of this Agreement including, but not limited to, finished or unfinished work shall be delivered to the City within ten (10) days of delivery of termination notice to Contractor, at no cost to City. Any use of uncompleted documents without specific written authorization from Contractor shall be at City's sole risk and without liability or legal expense to Contractor. 5.0 INSURANCE 5.1 Minimum Scope and Limits of Insurance. Contractor shall obtain and maintain during the life of this Agreement all of the following insurance coverages: (a) Comprehensive general liability, including premises-operations, products/completed operations, broad from property damage, blanket contractual liability, independent contractors, personal injury with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence and aggregate. (b) Automobile liability for owned vehicle, hired, and non-owned vehicles, with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits,per occurrence and aggregate. (c) Workers' compensation insurance as required by the State of California. (d) Professional errors and omissions ("E&O") liability insurance with policy limits of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence and aggregate. Consultant shall obtain and maintain, said E&O liability insurance during the life of this Agreement and for three years after completion of the work hereunder. 5.2 Endorsements. The comprehensive general liability insurance policy shall contain or be endorsed to contain the following provisions: (a) Additional insureds: "The City of San Bernardino and its elected and appointed boards, officers, agents, and employees are additional insureds with respect to this subject project and contract with City." (b) Notice: "Said policy shall not terminate, nor shall it be cancelled, nor the coverage reduced,until thirty(30) days after written notice is given to City." (c) Other insurance: "Any other insurance maintained by the City of San Bernardino shall be excess and not contributing with the insurance provided by this policy." 4 5.3 Certificates of Insurance. Consultant shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City,prior to performing any services under this Agreement. 5.4 Non-limiting. Nothing in this Section shall be construed as limiting in any way, the indemnification provision contained in this Agreement, or the extent to which Contractor may be held responsible for payments of damages to persons or property. 6.0 GENERAL PROVISIONS 6.1 Entire Agreement. This Agreement constitutes the entire Agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing, and signed by the parties in interest at the time of such modification. The terms of this Agreement shall prevail over any inconsistent provision in any other contract document appurtenant hereto, including exhibits to this Agreement. 6.2 Rre resentatives. The Director of Finance or her designee shall be the representative of City for purpose of this Agreement and may issue all consents, approvals, directives and agreements on behalf of the City, called for by this Agreement, except as otherwise expressly provided in this Agreement. Contractor shall designate a representative for purposes of this Agreement who shall be authorized to issue all consents, approvals, directives and agreements on behalf of Contractor called for by this Agreement, except as otherwise expressly provided in this Agreement. 6.3. Proiect Managers. City shall designate a Project Manager to work directly with Contractor in the performance of this Agreement. Contractor shall designate a Project Manager who shall represent it and be its agent in all consultations with City during the term of this Agreement. Contractor's Project Manager shall attend and assist in all coordination meetings called by City. 6.4. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery, facsimile or mail and shall be addressed as set forth below. Such communication shall be deemed served or delivered: a) at the time of delivery if such communication is sent by personal delivery; b) at the time of transmission if such communication is sent by facsimile; and c) 48 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail. 5 IF TO CONTRACTOR: IF TO CITY: Mr. Laurence E. Wilkinson Barbara Pachon President and Chief Operating Officer Director of Finance PMR Progressive LLC City of San Bernardino 22120 Clarendon Street 3rd Floor 300 North D Street Woodland Hills, CA 91367 San Bernardino CA 92418 Tel: 818-704-8315 Tel: 909-384-5242 Fax: 818-444-0435 Fax: 909-384-5043 6.5. Attorneys' Fees. In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. The costs, salary and expenses of the City Attorney and members of his office in enforcing this contract on behalf of the City shall be considered as "attorneys' fees" for the purposes of this paragraph. 6.6. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in San Bernardino County, California. 6.7. Assignment. Consultant shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of Contractor's interest in this Agreement without City's prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement. Regardless of City's consent, no subletting or assignment shall release Contractor of Contractor's obligation to perform all other obligations to be performed by Contractor hereunder for the term of this Agreement. 6.8. Indemnification and Hold Harmless. Contractor shall protect, defend, indemnify, and hold harmless the City and its elected and appointed officials, officers and employees from any and all claims, liabilities, expenses, including, attorney fees, damage to property or injuries to or death of any person or persons or damages of any nature including, but not by way of limitation, all civil claims or workers' compensation claims, arising out of or in any way connected with the intentional or negligent acts, errors or omissions of Contractor,its employees, agents or consultants in the performance of this Agreement. 6.9. Independent Contractor. Contractor is and shall be acting at all times as an independent contractor and not as an employee of City. Contractor shall secure, at its expense, and be responsible for any and all payment of hrcome Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Consultant and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. 6 6.10. Ownership of Documents. All findings, reports, documents, information and data including, but not limited to, computer tapes or discs, files and tapes furnished or prepared by Contractor or any of its consultants in the course of performance of this Agreement, shall be and remain the sole property of City. Consultant agrees that any such documents or information shall not be made available to any individual or organization without the prior consent of City. Any use of such documents for other projects not contemplated by this Agreement, and any use of incomplete documents, shall be at the sole risk of City and without liability or legal exposure to Consultant. City shall indemnify and hold harmless Contractor from all claims, damages, losses, and expenses, including attorneys' fees, arising out of or resulting from City's use of such documents for other projects not contemplated by this Agreement or use of incomplete documents famished by Contractor. Contractor shall deliver to City any findings, reports, documents, information, data, in any form, including but not limited to, computer tapes, discs, files, audio tapes or any other project related items as requested by City or its authorized representative, at no additional cost to the City. 6.11. Public Records Act Disclosure. Contractor has been advised and is aware that all reports, documents, information and data including, but not limited to, computer tapes, discs or files furnished or prepared by Contractor, or any of its consultants, and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code Section 6250 et. Seq.). Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term is defined in the California Government Code Section 6254.7, and of which Contractor informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the Court. 6.12. Responsibility for Errors. Contractor shall be responsible for its work and results under this Agreement. Contractor, when requested, shall furnish clarification and/or explanation as may be required by the City's representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Contractor occurs, then Contractor shall, at no cost to City, provide all necessary collection estimates and other Contractors professional services necessary to rectify and correct the matter to the sole satisfaction of City and to participate in any meeting required with regard to the correction. 6.13. Prohibited Employment. Contractor shall not employ any regular employee of the City while this Agreement is in effect. 6.14. Order of Precedence. In the event of an inconsistency or conflict in this Agreement and any of the attached Exhibits or Attachments, the terms set forth in this Agreement shall prevail. 6.15. Costs. Each party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein. 6.16. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and Contractor and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement. 6.17. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 6.18. Construction. The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 6.19. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement. 6.20. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event,nor shall any waiver constitute a continuing waiver. 6.21. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terns and provisions hereof or of the offending provision in any other circumstance. 6.22. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. 6.23. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so, the parties hereto are formally bound to the provisions of this Agreement. 6.24. Damages. The parties agree to waive any rights to incidental or consequential and punitive damages arising out of performance under this Agreement whether in torts or in contracts or in law or in equity. 8 AGREEMENT FOR SERVICES WITH PMR.PROGRESSIVE LLC. TO PROVIDE COLLECTION SERVICES OF DELINQUENT ACCOUNTS FOR THE CITY OF SAN BERNARDINO IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written. CITY OF SAN BERNARDINO CONTRACTOR A Municipal Corporation PMR Progressive LLC By Charles E.McNeely,City Manager Signature Name and Title Approved as to form: James F. Penman, City Attorney By Finance Dept\PMR Progressive LLC. Collections Agreement 9 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Barbara Pachon, Subject: Resolution Authorizing the Director of Finance execution of an agr ement with PMR Progressive L to provide Dept: Finance Collection Se ces of delinquent accounts fo the City of San Date: May 18, 2010 Bernardino. Cou it Meeting: 617/10 Synopsis of Previous Council Action: None Recommended motions: Adopt Resolution Signs ure Contact person: B//a ara Pachon, Director of Finance Phone: 5242 Supporting data a ched: Staff Report, Attachments Ward: All FUNDING REQUIREMENTS: Amount: f Source: Finance: Council No es: D (' D µlgenda Item No. ORIGINAL I -716-11° CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT SUBJECT: Resolution authorizing the execution of an agreement with PMR Progressive LLC, of Woodland Hills, CA,to provide collection services of delinquent accounts for the City of San Bernardino. BACKGROUND: Currently the City of San Bernardino does not have a centralized vendor performing the delinquent debt collection function for the City as a whole. There is currently uncollected revenue owed to the City in several areas like residential and commercial trash services, false alarm fees, emergency medical services, Animal Control citations, delinquent and lost library books, and Parking Enforcement Citations. Working with a collection vendor the Finance Department will coordinate the collection of past due revenues for all Departments in the City. REQUEST FOR PROPOSAL PROCESS AND CONTRACT AWARD: On January 12, 2010, the City of San Bernardino Purchasing Department issued a Request for Proposal (F-10-I1) for Collection Services. The RFP was posted on the City's website, sent to the San Bernardino Chamber of Commerce and notices were mailed to fifteen(15) vendors. The City received thirteen (13) responses to our Request for Proposal with two (2) deemed as non- responsive. An evaluation committee comprised of various City Departments evaluated all responses. Several factors were taken into consideration as these proposals were reviewed including, capabilities of the Collection Agency qualifications and related experience and reasonableness of cost and price. The standardized city evaluation criteria were used which included such things as: • Capabilities of Firm to Effectively Complete the Project Requirements—35% • Qualifications of Firm/Related Experience—45% • Reasonableness of Cost and Price— 10% • Completeness of Response—5% • Local Vendor Preference—5% The term of this agreement is for a period of three (3) years, (with the option of two one-year extensions at the City's discretion). Below is the list of companies who provided bid responses. Staff Report Page—2 Company Name Company Location United Adjustment Corp. Kentland, IN Money Control, Inc. Riverside, CA Vengroff Williams Garden Grove, CA MRS Cherry Hill,NJ RSI Enterprises Glendale,AZ PerSolve LLC Chatsworth, CA Penn Credit Corp Harrisburg,PA The Sagres Company Solana Beach, CA EOS/CCA Norwell,MA Sequoia Glendale, CA States Recover Systems, Rancho Cordova, Inc., CA Financial Credit Network Visalia, CA PMR Progressive LLC was not the lowest-cost bid; however, many of the lower-cost companies were out of state which would increase other costs. In addition, many of the lower-cost companies did not indicate that they could meet all of our requirements, and/or had little or no municipal experience. The proposed bid prices by the above companies ranged from 8.5% to 50% of the amount collected. Most bid prices were in the 21% to 28% range. The evaluation committee did not feel that the bid at the 8.5% was as qualified and capable as most of the other bids,nor did they respond completely to the RFP. Two of the references provided by PMR Progressive LLC were contacted by a member of the evaluation committee and indicated that they would recommend the company to others. Three other references provided letters of reference which were included in the bid document. Given the qualifications of PMR Progressive LLC, it is recommended that the Mayor and Common Council adopt the resolution and engage PMR Progressive LLC. to begin collection services on delinquent accounts. FINANCIAL IMPACT: The proposed firm has fixed fees for primary debt collection services provided by PMR Progressive, LLC for the City of San Bernardino are as follows: Emergency Medical Services Debt Collection Fee 28% (of the amount collected) All other Debt Collection Fee 26% (of the amount collected) PMR justifies the increased fee for Emergency Medical Services because it tends to be more difficult to locate these debtors which makes the balances harder to collect. RECOMMENDATION: Adopt Resolution 1 RESOLUTION NO. 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE 3 EXECUTION OF AN AGREEMENT WITH PMR PROGRESSIVE LLC. TO PROVIDE COLLECTION SERVICES OF DELINQUENT ACCOUNTS FOR THE 4 CITY OF SAN BERNARDINO. 5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 6 7 SECTION 1. PMR Progressive LLC, located at 22120 Clarendon Street, Third Floor, 8 Woodland Hills, CA 91364, is a competent, experienced collection agency and has provided 9 10 the most advantageous and best proposal in response to Request For Proposal F-10-11 to 11 provide collection services of delinquent accounts for the City of San Bernardino. Pursuant to 12 this determination, the Finance Department is hereby authorized and directed to coordinate all 13 collection activities with said collection agency, which references this Resolution. 14 SECTION 2. The City Manager is hereby authorized and directed to execute said 15 Agreement on behalf of the City, a copy of which is attached hereto marked Exhibit "A" and 16 incorporated herein by reference as fully as though set forth at length. 17 18 SECTION 3. The authorization to execute the above-referenced Agreement is 19 rescinded, if it is not executed within sixty(60) days of the passage of this resolution. 20 21 22 23 24 25 26 27 28 1 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE 2 EXECUTION OF AN AGREEMENT WITH PMR PROGRESSIVE LLC. TO PROVIDE COLLECTION SERVICES OF DELINQUENT ACCOUNTS FOR THE 3 CITY OF SAN BERNARDINO. 4 5 'I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common 6 Council of the City of San Bernardino at a meeting thereof, held on the day of ,2010,by the following vote, to wit: 8 9 Council Members: Ares NTvs Abstain Absent 10 MARQUEZ _ 11 DESJARDINS _ 12 BRINKER _ 13 SHORETT _ 14 KELLEY 15 16 JOHNSON 17 MCCAMMACK 18 19 Rachel Clark,.City Clerk 20 The foregoing resolution is hereby approved this_day of ,2010. 21 22 Patrick J. Morris,Mayor 23 City of San Bernardino 24 Approved as to form: 25 JAMES F. PENMAN, City Attorney 26 27 BY: 28 Exhibit A AGREEMENT FOR SERVICES WITH PMR PROGRESSIVE LLC. TO PROVIDE COLLECTION SERVICES OF DELINQUENT ACCOUNTS FOR THE CITY OF SAN BERNARDINO This AGREEMENT ("Agreement") is made and entered into this day of 2010 ("Effective Date") by and between the CITY OF SAN BERNARDINO, a charter city ("City"), and PMR Progressive LLC. ("Contractor") (sometimes jointly referred to herein as the "Parties")- WITNESSETH: A. WHEREAS, the City proposes to have Contractor perform collection services of delinquent accounts, and; B. WHEREAS, the City wishes to achieve acceptable collection rates on its delinquent accounts receivables;and C. WHEREAS, it has been determined by the Director of Finance that Contractor assistance is necessary to achieve acceptable collection rates on its delinquent accounts receivables; and D. WHEREAS, Contractor has submitted the most responsive and cost effective proposal to provide collection services of delinquent accounts. E. WHEREAS, Contractor represents that it has that degree of specialized expertise contemplated within California Government Code, Section 37103, and holds all necessary licenses to practice and perform the services herein contemplated; and F. WHEREAS, no official or employee of City has a financial interest, within the provisions of California Government Code, Sections 1090-1092, in the subject matter of this Agreement. NOW THEREFORE, in consideration of mutual covenants and conditions contained herein, the parties hereby agree as follows: 1.0. SERVICES PROVIDED BY CONTRACTOR 1.1. Scope of Services. Contractor shall provide to City, Collection Services of delinquent accounts, in accordance with the proposal dated January 12,2010(F-10-11). 1.2. Professional Practices. All professional services to be provided by Contractor pursuant to this Agreement shall be provided by personnel experienced in their respective fields and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by professional consultants in similar fields and circumstances in accordance with sound professional practices. Contractor also warrants that it is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Contractor's performance of this Agreement. t 1.3. Warranty Contractor warrants that it shall perform the services required by this Agreement in compliance with all applicable Federal and California employment laws including, but not limited to those laws related to minimum hours and wages; occupational health and safety; fair employment and employment practices; workers' compensation insurance and safety in employment; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement. Contractor shall indemnify and hold harmless City from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description including attorneys' fees and costs, presented, brought, or recovered against City for, or on account of any liability under any of the above-mentioned laws, which may be incurred by reason of Contractor's performance under this Agreement. 1.4. Non-discrimination. In performing this Agreement, Contractor shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religion, color, national origin, ancestry, age, physical handicap, medical condition, marital status, sexual gender or sexual orientation, or any other category protected by law, except as permitted pursuant to Section 12940 of the Government Code. Violation of this provision may result in the imposition of penalties referred to in Labor Code, Section 1735. 1.5. Non-Exclusive Agreement. Contractor acknowledges that City may enter into agreements with other contractors for services similar to the services that are subject to this Agreement or may have its own employees perform services similar to those services contemplated by this Agreement. 1.6. Delegation and Assignment. This is a personal services contract, and the duties set forth herein shall not be delegated or assigned to any person or entity without the prior written consent of the City. 1.7. Business License. The Contractor shall obtain and maintain a valid City Business Registration Certificate during the term of this Agreement. 1.8. Duty of Loyalty/Conflict of Interest. The Contractor understands and agrees that as the City's Contractor for collection services of delinquent accounts, Contractor shall maintain fiduciary duty and a duty of loyalty to the City in performing Contractor's obligations under this Agreement. Contractor, in performing its obligations under this Agreement, is governed by California's conflict of interest laws, Government Code Section 87100 et seq., and Title 2, California Code of Regulations Section 18700 et seq. 2.0 COMPENSATION AND BILLING 2.1.1 Compensation. For the performance of the services described in Contractor Responsibilities, the Contractor shall retain 28%of the gross amount the Contractor has collected on delinquent Emergency Medical Services accounts receivable and 26% of the gross amount the Contractor has collected on all other delinquent accounts receivable. 2.1.2 Contractor shall submit a monthly report to the City indicating the amounts collected on all delinquent accounts receivable, the portion payable to the Contractor, and the net amount the Contractor is remitting to the City. 2 2.2. Additional Services. Contractor shall not receive compensation for any services provided outside the scope of services specified in the RFP unless the City or its designee, approves such additional services in writing prior to Contractor performing the additional services. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable. 2.3. Records of Audits. Records of Contractor's services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times for a period of three(3) years from the Effective Date. 3.0 TIME OF PERFORMANCE 3.1. Commencement and Completion of Work The obligation to perform the professional services to be performed pursuant to this Agreement shall commence within five(5) days from the Effective Date of this Agreement. Said services shall be performed in strict compliance with the RFP issued by the City's Purchasing Manager. Failure to commence work in a timely manner and/or diligently pursue work to completion may be grounds for termination of this Agreement. 3.2. Excusable Delays. Neither party shall be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties. Such acts shall include, but not be limited to, acts of God, fire, strikes, material shortages, compliance with laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a ply. 4.0 TERM AND TERMINATION 4.1. Term. This Agreement shall commence on July 1, 2010 and shall remain in full force and effect for a period of three (3) years, with the option of two one-year extensions at the City's discretion. 4.2. Notice of Termination. The City reserves and has the right and privilege of canceling, suspending or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time, by providing written notice to Contractor. The termination of this Agreement shall be deemed effective upon receipt of the notice of termination. In the event of such termination, Contractor shall immediately stop rendering services under this Agreement unless directed otherwise by the City. 4.3 Compensation. In the event of termination, City shall pay Contractor for reasonable costs incurred and professional services satisfactorily performed up to and including the date of City's written notice of termination. Compensation for work in progress shall be prorated as to the percentage of work completed as of the effective date of termination in accordance with the fees set forth herein. In ascertaining the professional services actually rendered hereunder up to the effective date of termination of this Agreement, consideration shall be given to both completed work and work in progress, to complete and incomplete documents pertaining to the services contemplated herein whether delivered to the City or in the possession of the Contractor. 3 The Contractor shall give City a list of outstanding debtors so that City can notify debtors to stop sending payments to Contractor. Any payments received after the termination date but before notification to debtors, to stop sending payments to Contractor, shall be forwarded to City. Any payments received after Debtors are notified, to stop sending payments to Contractor, shall be forwarded to City. 4.4. Documents. In the event of termination of this Agreement, all documents prepared by Contractor in its performance of this Agreement including, but not limited to, finished or unfinished work shall be delivered to the City within ten (10) days of delivery of termination notice to Contractor, at no cost to City. Any use of uncompleted documents without specific written authorization from Contractor shall be at City's sole risk and without liability or legal expense to Contractor. 5.0 INSURANCE 5.1 Minimum Scope and Limits of Insurance Contractor shall obtain and maintain during the life of this Agreement all of the following insurance coverages: (a) Comprehensive general liability, including premises-operations, products/completed operations, broad from property damage, blanket contractual liability, independent contractors, personal injury with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence and aggregate. (b) Automobile liability for owned vehicle, hired, and non-owned vehicles, with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits,per occurrence and aggregate. (c) Workers' compensation insurance as required by the State of California. (d) Professional errors and omissions ("E&O") liability insurance with policy limits of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence and aggregate. Consultant shall obtain and maintain, said E&O liability insurance during the life of this Agreement and for three years after completion of the work hereunder. 5.2 Endorsements. The comprehensive general liability insurance policy shall contain or be endorsed to contain the following provisions: (a) Additional insureds: "The City of San Bernardino and its elected and appointed boards, officers, agents, and employees are additional insureds with respect to this subject project and contract with City." (b) Notice: "Said policy shall not terminate, nor shall it be cancelled, nor the coverage reduced, until thirty(30) days after written notice is given to City." (c) Other insurance: "Any other insurance maintained by the City of San Bernardino shall be excess and not contributing with the insurance provided by this policy." 4 5.3 Certificates of Insurance. Consultant shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City,prior to performing any services under this Agreement. 5.4 Non-limiting. Nothing in this Section shall be construed as limiting in any way, the indemnification provision contained in this Agreement, or the extent to which Contractor may be held responsible for payments of damages to persons or property. 6.0 GENERAL PROVISIONS 6.1 Entire Agreement. This Agreement constitutes the entire Agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing, and signed by the parties in interest at the time of such modification. The terms of this Agreement shall prevail over any inconsistent provision in any other contract document appurtenant hereto, including exhibits to this Agreement. 6.2 Representatives. The Director of Finance or her designee shall be the representative of City for purpose of this Agreement and may issue all consents, approvals, directives and agreements on behalf of the City, called for by this Agreement, except as otherwise expressly provided in this Agreement. Contractor shall designate a representative for purposes of this Agreement who shall be authorized to issue all consents, approvals, directives and agreements on behalf of Contractor called for by this Agreement, except as otherwise expressly provided in this Agreement. 6.3. Project Managers. City shall designate a Project Manager to work directly with Contractor in the performance of this Agreement. Contractor shall designate a Project Manager who shall represent it and be its agent in all consultations with City during the term of this Agreement. Contractor's Project Manager shall attend and assist in all coordination meetings called by City. 6.4. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery, facsimile or mail and shall be addressed as set forth below. Such communication shall be deemed served or delivered: a) at the time of delivery if such communication is sent by personal delivery; b) at the time of transmission if such communication is sent by facsimile; and c) 48 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail. 5 IF TO CONTRACTOR: IF TO CITY: Mr. Laurence E. Wilkinson Barbara Pachon President and Chief Operating Officer Director of Finance PMR Progressive LLC City of San Bernardino 22120 Clarendon Street 3rd Floor 300 North D Street Woodland Hills, CA 91367 San Bernardino CA 92418 Tel: 818-704-8315 Tel: 909-384-5242 Fax: 818-444-0435 Fax: 909-384-5043 6.5. Attorneys' Fees. In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. The costs, salary and expenses of the City Attorney and members of his office in enforcing this contract on behalf of the City shall be considered as "attorneys' fees" for the purposes of this paragraph. 6.6. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in San Bernardino County, California. 6.7. Assignment. Consultant shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of Contractor's interest in this Agreement without City's prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement. Regardless of City's consent, no subletting or assignment shall release Contractor of Contractor's obligation to perform all other obligations to be performed by Contractor hereunder for the term of this Agreement. 6.8. Indemnification and Hold Harmless. Contractor shall protect, defend, indemnify, and hold harmless the City and its elected and appointed officials, officers and employees from any and all claims, liabilities, expenses, including, attorney fees, damage to property or injuries to or death of any person or persons or damages of any nature including, but not by way of limitation, all civil claims or workers' compensation claims, arising out of or in any way connected with the intentional or negligent acts, errors or omissions of Contractor, its employees, agents or consultants in the performance of this Agreement. 6.9. Independent Contractor. Contractor is and shall be acting at all times as an independent contractor and not as an employee of City. Contractor shall secure, at its expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Consultant and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. 6 6.10. Ownership of Documents. All findings, reports, documents, information and data including, but not limited to, computer tapes or discs, files and tapes furnished or prepared by Contractor or any of its consultants in the course of performance of this Agreement, shall be and remain the sole property of City. Consultant agrees that any such documents or information shall not be made available to any individual or organization without the prior consent of City. Any use of such documents for other projects not contemplated by this Agreement, and any use of incomplete documents, shall be at the sole risk of City and without liability or legal exposure to Consultant. City shall indemnify and hold harmless Contractor from all claims, damages, losses, and expenses, including attorneys' fees, arising out of or resulting from City's use of such documents for other projects not contemplated by this Agreement or use of incomplete documents famished by Contractor. Contractor shall deliver to City any findings, reports, documents, information, data, in any form, including but not limited to, computer tapes, discs, files, audio tapes or any other project related items as requested by City or its authorized representative,at no additional cost to the City. 6.11. Public Records Act Disclosure. Contractor has been advised and is aware that all reports, documents, information and data including, but not limited to, computer tapes, discs or files furnished or prepared by Contractor, or any of its consultants, and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code Section 6250 et. Seq.). Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term is defined in the California Government Code Section 6254.7, and of which Contractor informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the Court. 6.12. Responsibility for Errors. Contractor shall be responsible for its work and results under this Agreement. Contractor, when requested, shall furnish clarification and/or explanation as may be required by the City's representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Contractor occurs, then Contractor shall, at no cost to City, provide all necessary collection estimates and other Contractors professional services necessary to rectify and correct the matter to the sole satisfaction of City and to participate in any meeting required with regard to the correction. 6.13. Prohibited Employment. Contractor shall not employ any regular employee of the City while this Agreement is in effect. 6.14. Order of Precedence. In the event of an inconsistency or conflict in this Agreement and any of the attached Exhibits or Attachments, the terms set forth in this Agreement shall prevail. 6.15. Costs. Each party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein. 7 6.16. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and Contractor and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement. 6.17. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 6.18. Construction. The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 6.19. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement. 6.20. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 6.21. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. 6.22. Countemarts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. 6.23. Co1porate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so, the parties hereto are formally bound to the provisions of this Agreement. 6.24. Damages. The parties agree to waive any rights to incidental or consequential and punitive damages arising out of performance under this Agreement whether in torts or in contracts or in law or in equity- 8 AGREEMENT FOR SERVICES WITH PMR PROGRESSIVE LLC. TO PROVIDE COLLECTION SERVICES OF DELINQUENT ACCOUNTS FOR THE CITY OF SAN BERNARDINO IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written. CITY OF SAN BERNARDINO CONTRACTOR A Municipal Corporation PMR Progressive LLC By Charles E. McNeely, City Manager Signature Name and Title Approved as to form: James F. Penman, City Attorney By Finance Dept\PMR Progressive LLC. Collections Agreement 9