Loading...
HomeMy WebLinkAbout35-City Administrator -CITY' OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Fred Wilson, City Administrator Dept: City Administrator r Oi7/Gh:'Al 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. Date: August 26, 1997 Synopsis of Previous Council Action: August 4, 1997 . Ordinance establishing a cost recovery system for booking fee collections, and a Resolution awarding a contract to GC Services Limited Partnership for booking fee collections presented to Mayor and Common Council; matter continued to August 18, 1997. August 18, 1997 - Matter continued to September 2, 1997. Recomm....ded Motion: That said ordinance be laid over for final adoption, and adopt resolution. ~ Contact person: Jan Wages. Administrative Assistant to the City Administrator Phone 5122 Supporting data attached: Yes Ward: N/A FUNDING REQUlRF.MENTS: Amount: N/ A Source:(Acct. No.) N/ A (Acct. Description) Finance: Council Notes: 35-A - 85.-8- Res 97- J,7tj Ordinance Laid OVer Agenda Item No. 35 ! q }J./q1 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT At the August 4th meeting of the Mayor and Common Council, Item No. 17 on the agenda introduced a Booking Fee Ordinance and a Resolution awarding a contract to GC Services Limited Partnership for booking fee collections. During the ensuing discussion, concern was expressed relative to the 36-month term of the contract (as stated in Sections 1 [Scope], and 5 rrerm] of the Agreement), and the lack of a 30-day termination clause for the City (Section 10 [Reevaluation]). In response to these concerns, the contract has been revised to remove the reference to 36 month term in Section 1 - Scope, and now reads in Section 5 - Term, that the term of the contract shall be for a period of twelve months, with the option to extent for up to four additional one-year extensions at the discretion of both the City and Agency. Section 10 - Reevaluation has been revised to read that the City reserves the right to withdraw from this Agreement upon the expiration of thirty (30) days' prior written notice. Staff recommends adoption of the Booking Fee Ordinance, and of the Resolution awarding contract to GC Services Limited Partnership for booking fee collections, with the above referenced changes to the Agreement. AGREEMENT FOR A PILOT PROGRAM 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 OF ADELANTO, TOWN OF APPLE V ALLEY, CITY OF BARSTOW, CITY OF BIG BEAR 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 RANCHO CUCAMONGA, CITY OF REDLANDS, CITY OF RIALTO, CITY OF SAN BERNARDINO, CITY OF TWENTYNINE PALMS, CITY OF UPLAND, CITY OF VICTORVILLE, CITY OF YUCAIPA, and TOWN OF YUCCA VALLEY (hereinafter referred to as "the Cities'') are cities duly organized and existing under the laws of the 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 of California. C. On or about July 1, 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 connection with the booking or other processing of persons arrested by employees of the cities and other entities. Government Code Section 29550 requires that the amount of the fee not exceed the actual administrative costs, including applicable overhead costs as permitted by federal Circular A-87 standards, incurred in booking or otherwise processing those arrested persons. D. Pursuant to Section 29550 of the Government Code, the County charges each of the Cities a criminal justice administrative fee for each designated booking performed by the County in connection with arrests made within the jurisdictional boundaries of the respective Cities. E. Pursuant to Section 29550.1 of the Government Code, the Cities are entitled to recover any criminal justice administration fee imposed by the County from the arrested person if the person is convicted of any criminal offense related to the arrest. 1 F. Under Section 29550.2 of the Government Code, the County is entitled to recover a criminal justice administration fee for actual administrative costs from any person booked into county jail pursuant to any arrest by a governmental entity not specified in Government Code Sections 29550 and 29550.1. G. GC SERVICES LIMITED P ARTNERSillP (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 hooking fees"). COVENANTS NOW THEREFORE, in consideration of the preceding Recitals and the mutual Covenants contained herein, the parties hereto agree as follows: I. ~: This Agreement 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. Aeency: 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 described 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 of this Agreement. 3. Compensation: The Agency agrees to accept as full payment for services rendered hereunder a commission percentage on the amount of monies actually collected in accordance with the Fee Schedule attached hereto as Exhibit "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 writing and signed by all parties hereto. Any collections made by Agency on behalf of the City shall be remitted directly by Agency to the City, or its designated representative, less any commission 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 for any costs or expenses incurred by Agency. 4. City Duties: The responsibilities of the City under this agreement shall be as set forth herein and in Exhibit "B" attached hereto and incorporated herein by this reference. 2 5. Icrm: 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 twelve (12) months. After expiration, this Agreement may be extended under the same terms and conditions for four (4) additional periods of time, not to exceed twelve (12) months each at the discretion of both the City and Agency. 6. Cbanees and Amendments: This Agreement may not be amended, modified, or altered except by a written instrument signed by all parties hereto. 7. Location of Agency: The Agency shall maintain local telephone listings or toll-free 800 numbers to serve the City where debtors may contact the Agency or its attorney regarding the amounts due on unpaid booking fees. 8. Use of City Seal or Letterbead: The Agency shall not use or display the official logos or seals of the City on any communications without having previously obtained written authorization from the City. 9. Confidentiality: Except as otherwise required by applicable federal, state, or local law or regulations, all information acquired by Agency in the course of performing services under this Agreement shall be confidential and shall not be open to examination for any purpose without prior written approval of the City. Each Agency employee involved in the implementation of this Agreement shall read and sign the Confidentiality Agreement attached hereto as Exhibit "C". 10. Reevaluation: The City reserves the right to withdraw from this Agreement upon the expiration of thirty (30) days' prior written notice, without regard to Sections 5, 33, and 34 of this Agreement. 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 shall have the right to recall accounts from the Agency without charge or penalty. If City continues to recall accounts after prior written notice of excessive recalls is provided by the Agency, the Agency reserves the right to refuse additional assigned accounts from the City if the City has excessive recalls. 12. Commission Limitations: The Agency shall not be entitled to a commission if any unpaid booking fees are paid directly to the City before being assigned to the Agency. The Agency shall not be entitled to a commission if the defendant pays the booking fee immediately upon the defendant's conviction, on the day of the defendant's conviction, or prior to any contact or attempted contact via telephone, mailings, or personal interaction by the Agency. 13. Collection Activity and TecbniqJles: The Agency shall, upon receipt of an account from the City, immediately undertake to collect such account through all ethical and lawful 3 means and must take action on all accounts, small as well as large. The Agency agrees to comply with all applicable Federal, State and local laws, rules, regulations or ordinances, and all current and future provisions required thereby to be included herein are hereby incorporated by reference. The Agency shall advise City of its collections techniques and, to the extent that they are lawful, shall comply with said practices and all of the Agency's own promotion materials in carrying out its obligations under this Agreement. The City 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 the Agency. To the 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 and/or omissions contained therein shall be limited to liability on behalf of the Agency and/or the party who supplied the information to the City. The City's approval of the Agency's work and materials furnished hereunder shall not in any way relieve the Agency of any responsibility for its acts or omissions under this Agreement. Neither the City's review, approval, or acceptance of,. nor payment for, any of the services performed by the Agency shall be construed as a waiver of any rights under this Agreement or of any defense or cause of action which it may have arising out of the performance of this Agreement. 14. Ouali(y 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. Agenl:Y Collections: The Agency will accept and distribute to the City, or its designee all payments received. The Agency may not collect interest, service or carrying charges on any account unless otherwise instructed to do so in writing 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 ($200) dollars as settlement for the booking fee obligation. 16. Alrenl:Y Attorneys: 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. Uncolledable Accounts: The Agency shall report to the Coordinator designated by the City all accounts deemed by it to be uncollectable. All such accounts shall be returned to the City and the Agency shall have no rights to a commission for any sums thereafter collected upon those accounts, except with approval from the City after the reactivation of those accounts. 4 19. Monthly Statements: Within twenty (20) days after the end of each calendar month, the Agency shall submit a written report to the City which shall include a summary of the fiscal activity of all individual accounts assigned to the Agency by the City as of the end of said month. 20. Independent 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 contribution, social security, overtime payment, or workers' compensation payment which the City may be required to make on behalf of the Agency or any employee of the Agency for work performed under this Agreement. 21. Insurance: Without in any way affecting the indemnity herein provided and in addition thereto the Agency shall secure and maintain throughout the term of this Agreement the following types of insurance with limits as shown: 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 $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 narning the City as an additional insured and with a standard cross liability clause and endorsement (ISO CG 20 I 0 or equivalent). The limit amount for this insurance shall not be less than $1,000,000.00 per occurrence, combined single limit for 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 Agency's wrongful acts, errors, or omissions. The limit for this insurance shall be not less than $1,000,000.00 per claim. 5 The premiums for said insurance coverage shall be paid by the Agency. Insurers shall have a least an "A, VII" policyholder's rating in accordance with the Current Best's Kc:y Ratin~ 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 shall also contain additional endorsements naming the City and its officers, employees, agents, representatives, and volunteers as additional named insured when acting in their capacity as such in connection with the performance of this Agreement. Waiver of Subro~ation Ri~ts - Except for the Errors and Omissions Liability and professional Liability, Agency shall require the carriers of the above-required coverages to waive all rights of subrogation against the City, its officers, employees, agents, volunteers, contractors, and subcontractors. Policies Prim8ly and Non-ContributOlY - 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 contribute to any loss under the Agency's insurance. Proof of Covera~e - Agency shall immediately furnish Certificates of Insurance to the City evidencing the insurance coverage , including endorsements, required above prior to the commencement of performance of services hereunder, which Certificates shall provide that such insurance shall not be terminated, canceled, or changed without first giving thirty (30) days advance written notice to the City, and Agency shall maintain such insurance from the time Agency commences performance of services hereunder. Within sixty (60) days of the commencement of this Agreement, the Agency shall furnish certified copies of the policies and all endorsements. Insurance Review - The above insurance requirements are subject to periodic review by the City. The City is authorized, but expressly not required, to reduce or waive any of the above insurance requirements whenever it determines, in its sole discretion, that any of the above insurance policies are not available, are unreasonably priced, or are not necessary to fully protect the interest of the City. In addition, if the City determines that heretofore unreasonably priced or unavailable types of insurance coverage or coverage limits become reasonably priced or available, the City are authorized, but not required, to change the above insurance requirements to required additional types of insurance coverage or higher coverage limits, provided that any such change is reasonable in light of past claims against the City, inflation, or any other item reasonably related to the City's risk. Any such reduction or waiver for the entire term of the agreement and any change requiring additional types of insurance coverage or higher coverage limits must be made by amendment to 6 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. 22. Indemnification: Agency agrees to indemnify, defend, and hold harmless the City and its officers, employees, representatives, agents, and volunteers 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. Equal Opportunity Emplo,yer: The Agency shall maintain equal opportunity status throughout the term of this Agreement. 24. Affirmative Action: Agency agrees that it shall take affirmative action to ensure that the intent of the City's discrimination policy is met and shall take affirmative action to ensure that applicants are employed and that employees are treated equally during employment, without regard to their race, color, religion, sex, ancestry or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of payor other forms of compensation; and selection for training, including apprenticeship. 25. Assurance of Compliance with Civil Rights Laws: The Agency hereby assures that it will comply the Title VII of the Civil Rights Act of 1964, 42 USC Sections 2000e(l) through 2000e(l7) 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 benefits of, or be otherwise subjected to discrimination under this Agreement or under any project, program or activity support by this Agreement. 26. Non-Assignable: The Agency shall not transfer, sell, or assign the Agreement or monies due or to become due hereunder without prior written consent of the City. For purposes of this Agreement, a transfer shall constitute any sale of over fifty percent (50%) of the stock of the Agency, or a number of sales that over time and in the aggregate exceed fifty percent (50%). Violation of this provision shall be grounds for termination of the Agreement for cause and the attempted assignment shall be voided. However, if the attempted assignment is not voided, then all terms, conditions, and provisions hereof shall inure to and shall bind each of the parties hereto, and each of their respective heirs, executors, administrators, trustees, successors, and asSigns. 27. Governing Laws: This Agreement shall be construed in accordance with and governed by the laws of the State of California. In the event of litigation between the parties, venue in state trial courts shall lie exclusively in the County of San Bernardino. In the event of litigation in the United States District Court, exclusive venue shall lie in the Central District of California. 7 28. Covenant Aeainst Contineent Fees: The Agency warrants that no person or selling agency has been employed or retained to solicit or secure this Agreement upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee,' except bona fide established commercial or selling agencies maintained by the Agency for the purpose of securing business. For breach or violation of this warranty, the City shall have the right to terminate this Agreement and in its sole discretion, to deduct from 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 form 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 termination, 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 Dell\Ys: Except as otherwise provided herein, when either party has 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 In!ll)ection: 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 transcribe any pertinent transaction, activity, time cards or other records relating to this Agreement during normal working hours. Such material, including all pertinent cost, accounting, financial records or proprietary data, must be kept and maintained by the Agency for a period of five (5) years after completion of this Agreement unless the City's written permission is given to dispose of material prior to this time. (b) Audit Settlement: If at any time during the term of this Agreement, or at any time after the expiration or termination 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 fmds an overpayment to the Agency or an underpayment to the City which is deemed to be material by the City's auditors pursuant to generally accepted accounting principles and generally accepted auditing standards, then the Agency shall be liable for all costs incurred by the City in conducting the audit, and the difference shall be paid, at the City's sole options, by means of either (I) a cash payment from the Agency to the City or (2) a credit against any future compensation due to the Agency or services rendered hereunder, plus interest thereon calculated at the legal rate. If such audit finds that the City's dollar liability for services provided hereunder is more than 8 commission paid by the City to Agency, then the difference shall be paid to Agency by City via cash payment. 32. Validity: If any term, condition, covenant, or provision of this Agreement is found by a court of competent jurisdiction to be invalid, void, or unenforcea~i1e, 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 other breach of said provision or any other provisions of this Agreement. Failure of either party to enforce at any time, or from time to time, any provisions of this Agreement, shall not be construed to be a waiver thereof. The remedies herein reserved shall be cumulative and additional to any other remedies in law or equity. 34. Default for Insolvenc:y: The City may cancel forthwith this Agreement for default in the event of the occurrence of any of the following: (a) Insolvency of Al1ency: The Agency shall be deemed to be insolvent if it has ceased to pay its debts in the ordinary course of business or cannot pay its debts as they become due, whether the Agency has committed an act of bankruptcy or not, and whether insolvent within the meaning of the Federal Bankruptcy Law or not; (b) The filing of a voluntary or involuntary petition to have the Agency declared bankrupt; (c) The appointment of a Receiver or Trustee for the Agency; (d) The executing by the Agency of an assignment for the benefit of creditors. The rights and remedies of the City provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law, equity, and lor under this Agreement. 35. Breach ofContraet: <a) Should any party violate or breach any term or condition to this Agreement, any other party shall have , without limitation, the right to move for entry of judgment by a court of competent jurisdiction, to seek specific performance thereof, and otherwise exercise all remedies available to it under the law to obtain redress from injury or damage resulting from such violation or breach. (b) If all parties mutually agree before, during, or after litigation has begun, any dispute or controversy arising out of, under, or in connection with , or in relation to this Agreement, and any amendments thereto, or the breach thereof, may be submitted to Arbitration in accordance with the California Arbitration Act, sections 1280 through 9 1294.2 of the Code of Civil Procedure. The cost of such arbitration shall be paid by the parties equally. (c) In any proceeding brought to enforce the terms and conditions of this Agreement, the prevailing party therein shall be entitled to recover all attorneys fees or other costs actually incurred in connection with reaching a resolution of the dispute whether or not an action, claim, or lawsuit is filed. In any action brought, the entitlement to recover attorneys fees and costs will be considered an element of costs and not of damages. (d) The rights and remedies of the City provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law 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 shall be to the attention of Chief Financial Officer, 6330 Gulfton, Houston, TX 77081. Notices to the City shall be to Either party may change its address or recipient for notices by giving notice of such change in compliance with this section. 37. Counte'1larts: This Agreement may be executed simultaneously or concurrently in one or more counterparts, each of which shall be deemed a duplicate original but all of which together shall constitute one and the same Agreement. 38 Power and Authority: The signatories below represent that they are duly authorized to executed the Agreement and to bind the respective parties for whom they are acting to the provisions set forth therein. City of San Bernardino GC Services Limited Partnership By: GC Financial Corp. Managing General Partner By: By: William R. Leighton Chief Financial Officer Executive Vice President Approved as to form and content By: :; u~ () 10 ______ ._ 4~ _~~ ~ 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 al1 applicable local, State and Federal consumer and collection practice laws. 3. Agency must provide a Monthly Collection Analysis Report to include monthly placements in number and dollar volumes, gross collections in dollars and percentages matched against the month the account was placed and col1ection fees in dollars and percentages. 4. Agency must provide an AcknowlediIDent RE:port for each batch of account referrals. 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 shall notify the City of those referrals 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 referraJ by the City. 8. The City shall assign accounts to Agency in such numbers and ratios as the City determines. 9. The City reserves the right to have 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. All 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. II 11. Agency shaI1 collect accounts through all ethical and lawful means, and must take action on all accounts, small as well as large. 12. Agency shall be responsible for all "start-up" and ''up front" costs of this Agreement and/or modification. 13. Agency sba1l report to each participating City all 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 collection activity. 12 EXHIBIT "B" CITY RESPONSmILITY CITIES AND COUNTY OF SAN BERNARDINO COUNTY 1. The participating City must select a single City coordinator to process and distribute Acknowledgment Reports, Monthly Collection Analysis Report, Invoices and payments, and Cancellation Reports. 2. The participating City will select an individual City Coordinator or create a committee to act as a contact for all the participating entities. 3. The City will forward accounts which it desires to be handled pursuant to this Agreement to GC Services upon notification by the appropriate authority that a possible or actual obligation for criminal justice administration fees is owed the City by an arrestee or convict. '~ "- "\ "~ '" 13 EXHIBIT "c" AGENCY EMWLOYEE ACKNOWLEDGMENT AND CONFIDENTIALITY AGREEMENT CITIES AND COUNTY OF SAN BERNARDINO COUNTY AGENCYIEMPLOYER'S NAME CONTRACT TYPE/NUMBER PROJECT NAMElNUMBER 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 all requests for the release of any data or information received by me to my immediate supervisor. I agree to keep confidential all health, criminal, and welfare recipient records and all data and information pertaining to persons and/or entities receiving services from the Cities or County, design concepts, algorithms, programs, formats, documentation, Agency proprietary information, and all other original materials produced, created, or provided to or by me under the above- referenced Agreement. I agree to protect these confidential materials against disclosure to other than my employer, City, or County employees who have a need to know the information. I agree that if proprietary information supplied by other City or County vendors is provided to me during this employment, I shall keep such information confidential. I agree to report to may immediate supervisor any and all violations of the Agreement by me and/or by any other person of which I become aware. I agree to return all confidential materials to my immediate supervisor upon completion of this Agreement or termination of my employment with my employer, whichever occurs first. I acknowledge that violation of this Agreement will subject me to civil and/or criminal action and that the County of San Bernardino an all Cities therein may seek all possible legal redress. Name: Date: (Signature) Name: Position: (Print) 14 EXlllBIT "D" FEE SCHEDULE CITIES AND COUNTY OF SAN BERNARDINO COUN'FY 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 FEE Modify Fee Schedule 60 Percent of Actual Collections 64 Percent of Actual Collections 68 Percent of Actual Collections 70 Percent of Actual Collections 72 Percent of Actual Collections 74 Percent of Actual Collections 78 Percent of Actual Collections Modify Fee Schedule Initial Continlenc:y Fee Rate: The initial contingency fee rate shall be sixty-eight (68) percent. Review of Contin~nc:y 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 Continlfenc:y Fee Rate: The rate shall be modified, in accordance with the appropriate rate category set forth in the above table. Based on the overall recovery rate obtained during the fust 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 PCT') X (SUM OF THE MONTHS PCT') - THE WEIGHTED COLLECTION PERCENTAGE Example Calculation on Next Page 15 . . , . Example Calculation Month 1 2 3 4 5 6 7 8 .wi .EEB MAR AlB MAY .Imi .IIlL AI!G Collection percentage' 10.2 6.0 11.1 10.1 6.7 4.6 3.8 1.5 Multiplied sum of the months percentage2; 2R.S1 2ill ~ H.22 2.S.2 ili N/A N/A Weighted monthly recovery rate 2.2l .lAl 2J..l 1M M .22 N/A N/A Sum of weighted monthly recovery rates ~ Formula: (COLL PCr') x (SUM OF THE MONTIlS PCr') = THE WEIGHfED COLLECTION PERCENTAGE I CoUection pen:entage as stated in the "Monthly CoUection Analysis Report" provided to the CITY coordinator pursuant to Exhibit" A", Statement of Work. item 3. 1 Percentages are the result ofa sum of the months method, [Montb/((n+n')/2)], wbere the fint month of the eight month period is assigned a weight of 6. the second month of the eight month period is assigned a weight of 5, and this is continued until the sixth month of the eight month period is assigned its weight of I. 16 ORDINANCE NO._ 1 2 AN ORDINANCE OF nm crrY OF SAN BERNARDINO, CALIFORNIA, ADDING CHAPTER 3.80 TO nm crrY OF SAN BERNARDINO MUNICIPAL 3 CODE ESTABUSHING A COST RECOVERY SYSTEM FOR BOOKING FEE 4 COUECfiOl'iS. 5 6 WHEREAS, Government Code Section 29550.1, et Seq. allows cities to recover the 7 costs charged by the counties for the booking or other processing of persons arrested and 8 other costs incurred in connection therewith if that person is convicted of a criminal offense related to said arrest. WHEREAS, the Common Council wishes to recover said costs charged by the 10 County of San Bernardino for the booking or other processing of persons arrested and 11 other costs incurred in connection therewith. 12 9 22 SECTION 1. Tide 3 of the San Bernardino Municipal Code is hereby amended by adding CHAPTER 3.80 COST RECOVERY SYSTEM FOR BOOKING FEE 23 COUECfiONS, as follows: 24 25 26 III III III III 27 28 July 30, 1997 1 , ()_ ~:'U~~ --O~S- ...... .. AN ORDINANCE OF TIlE Cl1Y OF SAN BERNARDINO, CALIFORNIA, ADDING CHAPTER. 3.80 TO TIlE Cl1Y OF SAN BERNARDINO MUNICIPAL 1 CODE ESTABUSIDNG A COST RECOVERY SYSTEM FOR BOOKING FEE C0ll.ECl10NS. 2 3 4 5 6 Sections: 7 8 9 10 11 12 13 (CHAPTER. 3.80) COST RECOVERY SYSTEM FOR BOOKING FEE COUECDONS 3.80.010 3.80.020 3.80.030 3.80.040 3.80.050 3.80.060 Authority and Scope Purpose Definitions Method of Assessing Amount of Fees Amount of Fees Collected Severability Section 3.80.010 Authority and Scope 14 This Chapter is adopted pursuant to Government Code Section 29550.1, et. Seq. as the same may now exist or hereafter be amended. 15 16 Section 3.80.020 Purpose 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 3.80.030 Definitions A. "City" means the City of San Bernardino B. "County" means the County of San Bernardino 22 23 Section 3.80.040 Method of Asseuing 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. 27 28 July 30, 1997 2 " AN ORDINANCE OF TIlE CITY OF SAN BERNARDINO, CALIFORNIA, ADDING CHAPTER. 3.80 TO TIlE CITY OF SAN BERNARDINO MUNICIPAL 1 CODE ESTABUSlDNG A COST RECOVERY SYSTEM FOR BOOKING FEE COll.ECDONS. 2 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor 3 4 and Common Council of the City of San Bernardino at a" 5 6 7 meeting thereof, held on the _day of , 1997, by the following vote, to wit: ABSENT ABSTAIN Council Members NAYS AYES NEGRETE 8 CURLIN 9 10 ARIAS 11 OBERHELMAN 12 DEVLIN 13 ANDERSON 14 MILLER 15 16 17 18 19 20 21 City Clerk The foregoing resolution is hereby approved this _day of ,1997. TOM MINOR, Mayor City of San Bernardino 22 Approved as to form and legal content: 23 24 25 26 27 James F. Penman, City ttomey .~ 4 July 30, 1997 28 AN ORDINANCE OF TIIE CfIY OF SAN BERNARDINO, CALIFORNIA, ADDING CHAPTER 3.80 TO TIIE CfIY OF SAN BERNARDINO MUNICIPAL 1 CODE ESTABUSHING A COST RECOVERY SYSTEM FOR BOOKING FEE COUECDONS. 2 3 4 Fees collected shall be limited to those provided under Government Code Section 5 29550.1 et. Seq. The actual cost of recovery over and above the criminal justice administrative fees shall be charged to the person convicted if applicable. 6 7 8 9 10 11 12 Section 3.80.050 Amount of Fees Collected Section 3.80.060 Severability 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 of any court of competent jurisdiction, the validity of the remaining portions of this Chapter, the 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 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 if held to be invalid or unconstitutional. 13 14 15 1/1 16 III 17 /II III 18 III III 19 III III 20 /II 21 III 1/1 22 1/1 1/1 23 III 24 /II 1/1 25 /II III 26 /II 27 28 SECDON 2. EFFECTIVE DATE This ordinance shall become effective 30 days after its adoption. July 30, 1997 3 CITY 'OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Dept: City Administrator Subject: Ordinance establishing a cost recovery system for booking fee collections, and agreement to provide services to recover criminal justice administrative fees (booking fees) from convicted arrestees. Frum: Fred Wilson, City Administrator Date: July 3, 1997 Synopsis of Previous Council Action: None. ~..........ded Motion: That said ordinance be laid over for final adoption, and adopt resolution. ~- C ,ct person: Jan Wages. Administrative Assistant to the City Administrator Phone 5122 Supporting data attached: Staff Rqlort. Ordinance. and AlP"eement Ward: N/ A FUNDING REQUIREMENTS: Amount: N/ A Source:(Acct. No.) N/ A (Acct. Descriptio!\) Finance: Council Notes: Previously - t 17 ,4t-~ -Oa/o'l/97' Previously - t 3 r - 0 3' Ii' /97 Agenda Item No.---= #7 F3s L CIlY OF SAN BERNARDINO - REQUEST FOR COUNCn. ACTION STAFF REPORT R"..1r:vnnud: 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 admini<trative 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 crimin,,! 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. I T1 Authority to CoUrrt Bookin( 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. t - Cost Recova:y Syct..... Proposal: Development of a cost recovery system for booking fee collections has been in process for nearly three years. GC Services initially approached the City of Highland with the idea of collecting the booking fees from those convicted and ordered to pay the fee by the Court. The cities and the county were then approached by GC Services to provide collection services for all local governments in the county. The idea was supported by the City Managers, and was reviewed and approved at the Mayor/City Manager Conference in 1995. It was also determined at that time that it made sense that GC Services be allowed to act as a selected source provider during the pilot program process, for the following reasons: they have worked closely with area cities for almost three years to develop a mechanism for recouping a portion of the booking fee costs charged by the County; they have a proven track record in the county; and, they are already established in the San Bernardino County Court system. D uuff~ "'~J1/bJ/1~ 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 twdve 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- '2I'nn11.... rMI t-hp City F:qIect to )l.H"ftver? The City of San Bernardino currendy 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 approximatdy 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.