Loading...
HomeMy WebLinkAbout10-1001 MCSI tb tool COLLECTION SERVICES AGREEMENT This Agreement is hereby made and entered into this Jj`' day of( 1. 2010, by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as the "City") and Municipal Collection Services, Inc., an Illinois corporation (hereinafter referred to as "MCSI"). WHEREAS, MCSI is a duly licensed collection agency in the State of Illinois; and WHEREAS, the City wishes to retain the services of MCSI to collect certain debts owed to the City upon the terms and conditions contained herein (hereinafter referred to as "debts listed for collection"); and WHEREAS, MCSI possesses the personnel, experience, expertise and equipment to effectively aid the City in collecting its debts through an effective collection process and court actions, if necessary. NOW, THEREFORE, in consideration of the mutual promises and covenants provided for herein, the sufficiency of which is mutually acknowledged, the parties hereto hereby agree as follows: 1. The above recitals are hereby incorporated into and made a part of this Agreement as if fully recited herein. 2. Any debts listed for collection with MCSI shall be collected and administered pursuant to the terms and conditions of this Agreement. 3. All debts listed for collection through MCSI shall be processed using the forms and procedures designated by MCSI. 4. Upon the request of MCSI, the City shall provide certified copies of documents necessary for MCSI's use in collection and in any court action as may be necessary. 5. MCSI shall provide notice to the City of the receipt of any documents or debts listed for collection within five (5)days of the receipt thereof. 6. MCSI shall use its best efforts and any lawful means in MCSI's sole judgment and discretion, which MCSI believes will result in the successful collection of debts listed for collection. 7. MCSI may pursue court action to obtain and/or perfect civil judgments when, in MCSI's discretion, MCSI believes such actions are advisable and will aid its efforts to collect such debts. 8. No matter shall be referred to an attorney by MCSI without five (5) days' prior written notice to the City of MCSI's intention to do so. 9. No fees will be payable to MCSI until such time as any money for the debts listed for collection is collected, at which time MCSI will be paid as follows: (a) MCSI will be entitled to any costs awarded by the court in the collection of the debt. If no additional expense amount is awarded for costs, this paragraph 9(a) will not apply. (b) Thirty-seven percent (37%) of the net amount collected on each file, after retention of any costs awarded pursuant to paragraph 9(a) above. 10. MCS1 shall have the exclusive right to seek and obtain collection of debts listed for collection with MCSI until such time as MCSI elects, in its sole discretion, to return such outstanding debts listed for collection to the City. Any communications or inquiries concerning any debts listed for collection pursuant to this Agreement, including, but not limited to, attempts to make payments thereon, shall be referred, at the earliest reasonable practicable time, to MCSI. 11. MCSI shall deposit any money collected pursuant to this Agreement in the City's separate bank trust account established for that purpose. 12. After deduction of its fees and costs allowable by this Agreement, MCSI will forward to the City its share of any amounts collected. Remittance to the City will be made by the 17`h of the month for any amounts collected by the last day of the preceding month. 13. In the event that any funds are paid to the City on debts listed for collection, the City will report such collections to MCSI daily for accounting. 14. The City hereby authorizes MCSI to compromise or reach negotiated settlements on any debt listed for collection. However, unless otherwise authorized by the City in writing, any such settlements shall be in conformance with the minimum amounts as set forth in this Agreement. The parties agree that no violation or other claims mutually agreed upon listed for collection will be settled, negotiated or compromised for less than fifty percent(50%) of the amount due. 15. Should the City make any settlement or otherwise take any action in derogation of MCSI's exclusive right to collect debts listed for collection, then MCSI shall be entitled to payment in full, as delineated in this Agreement, based on the full amount, as listed. Any such payments which may become due may be deducted from the City's next monthly payment from MCSI. 16. MCSI agrees to indemnify and hold the City harmless against any and all liability, costs and expenses, including attorneys' fees, occasioned by claims or suits for loss or damages arising out of the acts of the agent, servants or employees of MCSI during the term of this Agreement. Conversely, the City agrees to indemnify and hold MCSI harmless against any and all liability, costs and expenses, including attorneys' fees, occasioned by the claims or suits for loss or damages arising out of the acts of the City, its servants or employees. -2- 17. The City warrants and represents to MCSI that any debt listed for collection will be a legal and valid debt owed to the City; and in addition to the indemnities listed above, the City agrees to indemnify and hold MCSI 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 or the Illinois Collection Agency Act due to the breach of these warranties and representations; provided, however, that MCSI shall hold harmless and indemnify the City from and against any and all liability, costs and expenses, including attorneys' fees, arising out of or in connection with MCSI's violations of the Federal Fair Debt Collection Practices Act; the Illinois Collection Agency Act; or any law dealing with the credit rating of any individual and other applicable federal and state laws arising out of the acts or omissions of MCSI or its agents or employees; or arising out of or in connection with MCSI's negligent performance or non-performance of the terms of this Agreement. The provisions of this paragraph shall survive any termination/expiration of this Agreement. 18. This Agreement shall terminate on December 31, 2010. Upon termination of this Agreement, MCSI shall retain its exclusive right to collect any listed debts for collection for a period of thirty (30) days following such termination, after which MCSI shall return any such debts listed for collection to the City. 19. During the term of this Agreement, MCSI shall return to the City such debts which MCSI determines, in its sole judgment and discretion,to be uncollectable. 20. Any notices to be given pursuant to this Agreement shall be deemed as served when placed in the United States Mail, 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 designates, notices shall be sent as follows: If to MCSI: Municipal Collection Services, Inc. 7330 College Drive, Suite 108 Palos Heights, IL 60463 If to the City: City of Elgin Attn: Colleen Lavery 150 Dexter Court Elgin, IL 60120 21. The terms of this Agreement 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 remainder of this Agreement shall remain in full force and effect. -3- 22. This Agreement shall be subject to and governed by the laws of the State of Illinois. Venue for the resolution of any disputes for the enforcement of any rights arising out of or in connection with this Agreement shall be in the Circuit Court of Kane County, Illinois. 23. 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. 24. Notwithstanding any other provision of this Agreement, it is expressly agreed and understood that in connection with the performance of this Agreement, MCSI 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, MCSI hereby certifies, represents and warrants to the City that all of MCSI's employees and/or agents who will be providing products and/or services with respect to this Agreement shall be legal residents of the United States. MCSI 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 City shall have the right to audit any records in the possession or control of MCSI to determine MCSI's compliance with the provisions of this section. In the event the City proceeds with such an audit, MCSI shall make available to the City MCSI's relevant records at no cost to the City. 25. This Agreement contains the entire agreement between the parties hereto and supersedes any prior agreements or understandings between the parties. This Agreement may only be altered or modified by written instruments, signed by both parties. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. City of Elgin, an Illinois municipal corporation ATTEST: By: / .�eiIi,- "/���/ �' - t om: _�.�_�� can R. Stegall, C., Manager City Clerk Municipal Collection Services, Inc., ATTEST: an Illinois corporation CAUVI' ,L,L-k) -(i' --:, .Le•D 'Matthew C. Regan Secretary Chief Operating Officer f:\legal dept\agreement\collection services agreement-municipal collection services.docx -4-