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HomeMy WebLinkAbout17-101 Resolution No. 17-101 RESOLUTION AUTHORIZING EXECUTION OF A COLLECTION SERVICES AGREEMENT WITH MUNICIPAL COLLECTIONS OF AMERICA, INC. FOR COLLECTION SERVICES REGARDING UNPAID PARKING AND ADJUDICATION FINES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that pursuant to Elgin Municipal Code Section 5.02.020B(9) the City Council hereby finds that an exception to the requirements of the procurement ordinance is necessary and in the best interest of the city; and BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Richard G. Kozal, City Manager, and Kimberly A. Dewis, City Clerk, be and are hereby authorized and directed to execute a collection services agreement on behalf of the City of Elgin with Municipal Collections of America, Inc. for collection services regarding unpaid parking and adjudication fines, a copy of which is attached hereto and made a part hereof by reference. s/David J. Kaptain David J. Kaptain, Mayor Presented: July 26, 2017 Adopted: July 26, 2017 Omnibus Vote: Yeas: 9 Nays: 0 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk COLLECTION SERVICES AGREEMENT MUNICIPAL COLLECTIONS OF AMERICA, INC. This COLLECTION SERVICES AGREEMENT is hereby made and entered into this 26th day of July , 2017 by and between Municipal Collections of America, Inc., (MCOA) an Illinois corporation, and the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as THE MUNICIPALITY). WHEREAS, MCOA is a duly licensed collection agency in the State of Illinois; and WHEREAS, MCOA possesses the personnel, experience, expertise, and equipment to effectively aid THE MUNICIPALITY in collecting fines through an effective collection process; and WHEREAS, THE MUNICIPALITY may wish to list certain debts with MCOA for collection from time to time and MCOA may wish to accept such claims for collection. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein,the sufficiency of which is hereby mutually acknowledged,the parties hereto hereby agree as follows: ARTICLE I The above recitals are hereby incorporated into and made a part of this agreement as if fully recited hereby. Any debts and/or fines listed for collection with MCOA will be collected and administered pursuant to all the terms and conditions in this Agreement. All debts and fines submitted to MCOA for collection shall be submitted using the forms and procedures designated by MCOA and pursuant to this agreement. This agreement shall not be construed so as to constitute an exclusive collection agreement between THE MUNICIPALITY and MCOA. THE MUNICIPALITY may submit or not submit any debts for collection to MCOA at THE MUNICIPALITY'S sole discretion, and THE MUNICIPALITY may use any alternate means other than by submitting such debts to MCOA for collection pursuant to this agreement to attempt to collect on any outstanding debts owed to THE MUNICIPALITY, including, but not limited to,using the services of any entity other than MCOA. THE MUNICIPALITY may,in its sole discretion,require MCOA to return any uncollected debt previously submitted to MCOA for attempted collection by THE MUNICIPALITY. Any such uncollected debt shall be returned to THE MUNICIPALITY within twenty-one (21) days of THE MUNICIPALITY'S said request for return. Any such uncollected returned debt may be collected by THE MUNICIPALITY by any lawful means, and shall thereafter not be subject to the payment requirements from THE MUNICIPALITY to MCOA of this agreement. I Upon request of MCOA, THE MUNICIPALITY will provide certified copies of any documentation deemed necessary for use by MCOA in its collection efforts in a timely manner. MCOA will acknowledge receipt of any violations listed for collection within five days thereof. MCOA retains the right to reject any debt submitted for collection. MCOA shall provide THE MUNICIPALITY with an explanation for any such rejection. ARTICLE II MCOA shall use its best efforts and any lawful means which in its judgment and discretion it believes will result in the collection of the debt/fines which are listed for collections. ARTICLE III No fees shall be payable to MCOA unless money is collected, at which time MCOA shall be paid as follows: Upon payment, MCOA shall receive thirty-five percent(35%)of the balance paid on each debt prior to any additional amount THE MUNICIPALITY may add pursuant to law, including, but not limited to, 65 ILCS 5/1-2-1, as amended. In the event that THE MUNICIPALITY has added any collection fee to the original debt before listing it with MCOA, MCOA's fee shall be calculated on the balance paid net of any such collection fee. MCOA's performance pursuant to 15 ILCS 405/10.05d,as amended(commonly known as the "Local Debt Recovery Program") on behalf of THE MUNICIPALITY shall be performed at no additional cost beyond the standard commission detailed above. ARTICLE IV Upon THE MUNICIPALITY'S listing of the violation for collection, MCOA shall have the exclusive right to collect the amounts owed thereunder until such time as it determines the debt is uncollectable or THE MUNICIPALITY requests return of the violation to THE MUNICIPALITY. Any inquiries concerning any debt listed for collections,including attempts to make payment, shall be referred at the earliest possible time to MCOA. MCOA will deposit any money collected in THE MUNICIPALITY'S separate bank trust account established for that purpose. After deduction of the fees allowable by this Agreement, MCOA will forward to_THE MUNICIPALITY THE MUNICIPALITY'S share of any amounts collected. Remittance to THE MUNICIPALITY will be made by the 15th of the month for any amounts collected by the last day of the preceding month. 2 In the event that any funds are paid to THE MUNICIPALITY for violations which have been listed for collection,THE MUNICIPALITY will report such collections to MCOA daily for accounting pursuant to this agreement. ARTICLE V THE MUNICIPALITY hereby authorizes MCOA to accept a negotiated settlement on any debt listed for collection; provided, however, that unless otherwise authorized by THE MUNICIPALITY in writing, any such settlement shall be no less than 100% of the available balance. ARTICLE VI MCOA shall indemnify and hold THE MUNICIPALITY harmless from and against any and all suits, causes of action, claims for damages, and any and all other.liability of whatsoever nature,including but not limited to any and all costs and expenses,excluding attorneys'fees arising out of or in connection with any claims or suits for loss or damages arising solely out of the acts of the agents, servants or employees of MCOA during the term of this Agreement. MCOA shall defend and indemnify THE MUNICIPALITY from any claim or action arising out of MCOA'S performance or non-performance of its obligations under this agreement,including but not limited to any violation of the Fair Debt Collection Practices Act(15 U.S.C. 1601,et seq.),any law dealing with the credit rating of any individual, and other applicable laws arising out of the acts or omissions of MCOA or its agents or employees. Conversely, THE MUNICIPALITY shall indemnify and hold harmless MCOA from and against any and all liability, costs and expenses, excluding attorneys' fees arising solely out of or in connection with any claims or suits for loss or damages arising out of acts of THE MUNICIPALITY, its servants or employees.. Further,THE MUNICIPALITY warrants and represents to MCOA that any debt listed for collection will be a legal and valid debt owed to THE MUNICIPALITY; and in additional to the indemnities listed above, THE MUNICIPALITY agrees to indemnify and hold MCOA harmless against any and all liability, costs, and expenses, excluding attorneys' fees occasioned by claims or suits, under the Federal "Fair Debt Collection Practices Act", due to the breach of these warranties and representations. ARTICLE VII This agreement shall terminate on December 31, 2020;provided, however,that either party hereto may terminate this agreement at any time upon sixty(60) days written notice for convenience. In the event of any such termination for convenience,THE MUNICIPALITY shall be liable to MCOA only for such fees as may be owed to MCOA pursuant to a successful collection at the time of said termination. In the event of termination of the Agreement by either party, MCOA shall continue any outstanding collection efforts on debts pursuant to the terms and provisions of this Agreement until the debt is either paid or determined to be uncollectible; provided, however,that MCOA shall return any and all uncollected debts to THE MUNICIPALITY if directed to do so by THE MUNICIPALITY in writing. 3 ARTICLE VIII At least once per year,MCOA will return to THE MUNICIPALITY such violations which MCOA determines, in its sole judgment and discretion,to be uncollectible. ARTICLE IX Any notice to be given pursuant to this Agreement shall be deemed as served when placed in the United States Mail,with postage prepaid, sent by certified mail, return receipt requested;to the address designated, in writing, by either party. Until such time as a different address is designated notices shall be sent as follows: If to MCOA, Municipal Collections of America, Inc. 3348 Ridge Road Lansing, Illinois 60438 If to THE MUNICIPALITY, City of Elgin Police Department Adjudication Division 151 Douglas Avenue Elgin, Illinois 60120 ARTICLE X This agreement contains the entire agreement between the parties hereto and supersedes any prior agreements or understandings between the parties, except to the extent specifically . provided for herein. This agreement may only be altered, amended or modified by written instrument signed by both parties hereto. This agreement shall be subject to and governed by the laws of the State of Illinois. Venue for the resolution of any disputes or the enforcement of any rights arising out of or in connection with this agreement shall be in the Circuit Court of Kane County, Illinois. The terms of this shall be severable. In the event any of the terms or provisions of this agreement are deemed to be void or otherwise unenforceable for any reason,the reminder of this agreement shall remain in full force and effect. This agreement shall not be construed so as to create a joint venture, partnership, employment or other agency relationship between the parties hereto except to the extent specifically provided for herein. Notwithstanding any other provision of this agreement, it is expressly agreed and understood that, in connection with the performance of this agreement,MCOA shall comply with all applicable federal, state, city and other requirements of law, including, but not limited to, any applicable requirements regarding prevailing wages, minimum wage, workplace safety and legal status of employees. Without limiting the foregoing, MCOA hereby certifies, represents and warrants to THE MUNICIPALITY that all MCOA'S employees and/or agents who will be 4 providing products and/or services with respect to this agreement shall be legally authorized to work in the United States. MCOA shall also, at its expense, secure all permits and licenses, pay all charges and fees and give all notices necessary and incident to the due and lawful prosecution of the work, and/or the products and/or services to be provided for in this agreement. THE MUNICIPALITY shall have the right to audit any records in the possession or control of MCOA to determine MCOA'S compliance with the provisions of this section. In the event THE MUNICIPALITY proceeds with such an audit, the MCOA shall make available to THE MUNICIPALITY MCOA'S relevant records at no cost to THE MUNICIPALITY. MCOA shall pay any and all costs associated with any such audit up to a maximum of$900.00. ARTICLE XI This agreement may be executed in counterparts,each of which shall be an original and all of which shall constitute one and the same agreement. For the purposes of executing this agreement,any signed copy of this agreement transmitted by fax machine or e-mail shall be treated in all manners and respects as an original document. The signature of any party on a copy of this agreement transmitted by fax machine or e-mail shall be considered for these purposes as an original signature and shall have the same legal effect as an original signature. Any such faxed or e-mailed copy of this agreement shall be considered to have the same binding legal effect as an original document. At the request of either party any fax or e-mail copy of this agreement shall be re-executed by the parties in an original form. No parry to this agreement shall raise the use of fax machine or e-mail as a defense to this agreement and shall forever waive such defense IN WITNESS WHEREOF, the parties have signed and sealed this Agreement of the date first above written. Municipal ollec"t4 tions of America, Inc. By: Name:Jeffrey Wood Its: President THEM ALITY A es By: Richard G. Kozal,City Manager rty er F:\Legal Dept\Agreement\MCOA Agreement-Parking Ticket Collections-clean-5-5-17.docx 5