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~IJ'Y OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
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From: James R. Howell, Director Subject:
ORIGINAL
RESOLUTION REQUESTING MAYOR AND
COMMON COUNCIL TO AUTHORIZE THE
CITY PURCHASING AGENT TO ENTER INTO
AN AGREEMENT AND ISSUE A PURCHASE
ORDER WITH COLLECTECH SYSTEMS, INC.
FOR DELINQUENT ACCOUNT COLLECTION
SERVICES.
Dept: Public Services
Date: January 27, 1997
Synopsis of Previous Council Action:
. On January 23, 1991, the City of San Bernardino Public Services Department entered into an agreement,
authorized by the Finance Director, with Lewis & Associates for collection of delinquent accounts.
Recommended Motion:
Adopt resolution.
James R. Howell. Director of Public Services
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ADMIN. OFFlCgt
30 JAN 97 11121
Signature
Contact person:
Phone:
5140
Supporting data attached:
Yes
Ward:
N/A
FUNDING REQUIREMENTS: Amount:
Cost estimated to be approximately $8,000.
Cost is based on projected delinquent accounts.
Source: (Acct. No.) 527-411-5182
(Acct. Description) 'R.<l nl"ht/TTnrnlll"rtihll" Arrto
Finance:~/~//cll!vk--
Council Notes:
.llIW7
Agenda Item NO..3J
Res 97- 55
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
The Public Services Department has used the services of a Collection Agency since 1991 for
the purpose of collecting delinquent open and closed Refuse accounts. Efforts by a Collection
Agency in the past have been successful, therefore, entering into an agreement with a Collection
Agency would be beneficial.
Staff issued a Request for Proposal to solicit competitive bids to enter into an agreement for
collection services. Requests for proposals were mailed to fifteen (15) prospective contractors.
Also, a notice requesting proposals was published in the local newspaper which resulted in one
additional bid. One of the proposals was returned by the post office marked "unable to
deliver. " Four responses to the request for proposal were received. Finance and Public
Services staff evaluated the proposals submitted and rated them on a scale of 0-100.
Compliance with specifications, experience and costs were considered. Collectech Systems,
Inc., a locally operated business, received the highest overall evaluation. Collectech Systems,
Inc. has experienced staff and the fact that Collectech has previous experience with Refuse
accounts is an added benefit. Collectech Systems, Inc. have priced its services at a flat rate of
$6.50 per account handled. References were verified and staff visited the facilities of Collectech
Systems, Inc. and found its operations to be satisfactory.
Based on past account history, staff projects that approximately 70 accounts will be turned over
to a Collection Agency each month. The' average cost will be approximately $500 each month
and will result in a estimated recovery of $5,000. Of those accounts not inunediately collected,
the Refuse Fund will receive some residual revenues over the next seven (7) years due to credit
agency reporting.
It is recommended that the Mayor and Common Council authorize the execution of an
agreement with Collectech Systems, Inc. to provide collection services for delinquent refuse
accounts.
1/97
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SERVICES AGREEMENT
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2 THIS AGREEMENT is made and entered into by and between CITY
3 OF SAN BERNARDINO, a municipal corporation, hereinafter called
4 "CITY," and COLLECTECH SYSTEMS INC., hereinafter called "AGENCY."
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6 WITNESSETH:
7 A. WHEREAS, CITY has need for COLLECTION SERVICES within
8 the CITY and,
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10 B. WHEREAS, AGENCY is competent, experienced and able to
11 perform said services: and,
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13 C. WHEREAS, AGENCY has provided the lowest responsible b.id
14 for the providing of such services;
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16 NOW THEREFORE, the parties hereto agree as follows:
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18 1. AGENCY shall furnish COLLECTION SERVICES to CITY in
19 accordance with Bid Specifications and Bidder's Proposal, both of
20 which are attached hereto, and incorporated herein as part of
21 this services agreement.
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23 2. Over the term of this Agreement, AGENCY shall be paid
24 for such services an amount in accordance with said Bid
25 Specification -and Bidder's Proposal.
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AGREEMENT BETWEEN CITY OF SAN BERNARDINO AND COLLECTECH SYSTEMS,
INC. FOR ACCOUNT COLLECrION SERVICES.
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The term of this Agreement shall be one (1) year,
5 commencing on March 1, 1997 and continuing to and including
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February 28, 1998.
4. CITY will refer its past due accounts for collection in
a format that is mutually agreeable but may be changed from time
to time by CITY or AGENCY.
5. AGENCY will diligently apply all effort to effect
collection of each account referred for collection, but will
14 refrain from using any approach or method of procedure which
15 would be detrimental to CITY policies or public image.
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6. AGENCY will abide in collection of all accounts
assigned to the Fair Debt Collection Practices Act (PL 95-109)
19 set forth by the United States of America, and all California
20 Laws and Codes pertaining to collection of accounts.
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7. AGENCY will provide reports
outlined
in Bid
as
Specification and Bidder's Proposal.
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8. AGENCY shall provide the Public Services Department
with a monthly invoice in arrears and AGENCY shall be provided
payment within thirty (30) days therefrom.
CITY retains the
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AGREEMENT BETWEEN CITY OF SAN BERNARDINO AND COLLECTECH SYSTEMS,
INC. FOR ACCOUNT COLLECTION SERVICES.
4 right to challenge all or any part of an invoice.
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6 9. While not restricting or limiting the foregoing, during
7 the term of this Agreement, AGENCY shall maintain in effect
8 policies of comprehensive public, general and automobile
9 liability insurance, in the amount of $1,000,000.00 combined
10 single limit, naming the city, and its employees, as additional
11 insured, and statutory worker's compensation coverage, and shall
12 file copies of said policies with the CITY'S Risk Manager prior
13 to undertaking any work under this Agreement.
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15 10. AGENCY shall perform work tasks as directed by the
16 Public Services Department, but for all intents and purposes
17 agency shall be an independent contractor and not an agent or
18 employee of the CITY.
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11. In the performance of thjs Agreement and in the hiring
21 and recruitment of employees, AGENCY shall not discriminate on
22 the basis of race, creed, color, religion, sex, physical
23 handicap, ethnic background or country of origin.
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25 12. The Parties agree to indemnify and hold each other
26 harmless for any costs, damages, claims, liabilities or other
27 amounts paid by a party, including reasonable attorneys' fees and
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AGREEMENT BETWEEN CITY OF SAN BERNARDINO AND COLLECTECH SYSTEMS,
INC. FOR ACCOUNT COLLECTION SERVICES.
costs, where such expenses or losses were caused by the act,
omission or negligence of the other party. 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 "attorney's fees" for the purposes of this paragraph.
13. CITY agrees to indemnify and hold AGENCY and its
employees harmless from any liability, claims, damages and suits
or other legal proceedi~g, by whomever and whenever, brought and
arising out of or relating to CITY error in accounting or
misinformation on assigned past due accounts.
14. AGENCY records which refer to monies collected under
this agreement shall be kept in accordance with the accounting
standards set forth by the State of California, Bureau of
Collection and Investigative Services, 440R Street, Suite 200,
Sacramento, California 95814.
15. AGENCY fee is $6.50 per account submitted to agency on
all monies collected for past due accounts.
Any account
requiring legal action beyond normal collection activity will be
returned to CITY for such action. Any fee to be paid to AGENCY
in such cases, shall be paid in accordance with Bid Specification
Bidder's Proposal.
AGENCY method of payment from the payee on a
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AGREEMENT BETWEEN CITY OF SAN BERNARDINO AND COLLECTECH SYSTEMS,
INC. FOR ACCOUNT COLLECTION SERVICES.
past due account to the AGENCY, that could result in insufficient
fund checks, shall be the responsibility of the AGENCY.
16. CITY retains the right, at the discretion of the Mayor
of the City or his/her designee, to terminate this Agreement, for
any reason, upon giving a thirty (30) day written notice of such
termination to AGENCY.
17. Any notice to be given pursuant to this Agreement shall
be deposited with the United States Postal Service, postage
prepaid and addressed as follows:
TO THE CITY:
Public Services Director
300 North "D" Street
San Bernardino, CA 92418
TO THE AGENCY:
collectech Systems, Inc.
26541 Agoura Road, Suite 101
Calabasas, CA 91302
Nothing in this paragraph shall be construed to prevent the
giving of notice by personal service.
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AGREEMENT BETWEEN CITY OF SAN BERNARDINO AND COLLECTECH SYSTEMS,
INC. FOR ACCOUNT COLLECTION SERVICES.
4 IN WITNESS WHEREOF, the parties hereto have executed this
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13 Date:
day of
, 1997.
Agreement on the
I - Iff, Ci1
By:
Date:
CITY OF SAN BERNARDINO
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16 ATTEST:
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By:
John P. Murphy,
Purchasing Manager
City of San Bernardino
Rachel Clark, City Clerk
Approved as to form
and legal content:
James F. Penman,
City ttorney
By: \ CO 7"",,~ 1 .C.-"
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