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HomeMy WebLinkAbout23-0426 MCOA Municipal Collections of America IncCOLLECTION SERVICES AGREEMENT Municipal Collections of America, Inc This COLLECTION SERVICES AGREEMENT, made thisday of 2023 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 the said fines through an effective collection process and; WHEREAS, THE MUNICIPALITY may wish to list certain other debts with MCOA for collection from time to time and MCOA may wish to accept such claims for collection. MCOA retains the right to reject any debt submitted for collection and will provide explanation for such action if taken. MCOA and THE MUNICIPALITY do hereby agree as follows: ARTICLE I THE MUNICIPALITY agrees that 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. 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 alternative means other than submitting such debts to MCOA for collection pursuant All municipal debts and fines listed for collection will be forwarded to MCOA, using the forms and procedures designated by MCOA. 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 tunely manner. MCOA will acknowledge receipt of any violations listed for collection within five days thereof. ARTICLE II MCOA agrees to use its best efforts and any lawful means which in its judgment and discretion it believes will result in the collection of the debts/fines which are listed for collections. ARTICLE III No fees will be payable to MCOA unless money is collected, at which time MCOA will be paid as follows: Ootion 1: MCOA shall receive 25.92% ofthe balance paid on any debt in which THE MUNICIPALITY has added a 35% collection fee at delinquency, per 65 ILCS 5/1-2-1, as amended, to the debt prior to listing it with MCOA. Option 2: MCOA shall receive 25% of the balance paid on any debts in which THE MUNICIPALITY has not added a collection fee at delinquency per 65 ILCS 5/1:2-1, as amended. All debts shall be designated as either Option 1 or Option 2 prior to MCOA commencing collection efforts. MCOA's performance pursuant to 15 ILCS 405/10.05d, as amended (commonly known as the Local Debt Recovery Program, and/or "IDROP") 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 with MCOA, 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, its share of any amounts collected. Remittance to the MUNICIPALITY will be made by the 15t' of the month for any amounts collected by the last day of the preceding mouth. 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 under this Article. ARTICLE V THE MUNICIPALITY hereby authorizes MCOA to accept a negotiated settlement on any violations listed for collection. However, unless otherwise authorized by the MUNICIPALITY, any such settlements shall be no less than 100% of the available balance. ARTICLE VI MCOA agrees to indemnify and hold THE MUNICIPALITY harmless against any and all liability, costs and expenses including attorney fees, occasioned by claims or suits for loss or damages arising 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 Practice Act, 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 agrees to indemnify and hold MCOA harmless against any and all liability, costs and expenses including attorney fees, occasioned by the claims or suits for loss or damages arising out of the 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 addition 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 is for a period of 24 months from the date first above written, however, it shall continue under the same terms and conditions for additional one-year periods until termination by either party, by notice given in writing to the other party, at least sixty days prior to termination. However, in the event oftermination of the Agreement by either party, THE MUNICPALITY shall have the option of requesting MCOA to continue any outstanding collection efforts on debts until the debt is either paid or determined to be uncollectible under the same terms of this Agreement. ARTICLE VIII At least once per year, MCOA will return to THE MUNICIPALITY such violations which it determines, in its sole judgment and discretion, to be uncollectible. ARTICLE IX Any notices to be given pursuant to this Agreement shall be deemed as served when placed in the United States Mail, with postage prepaid, sent by U.S. mail; 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 Finance Department 150 Dexter Court Elgin, IL 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, both parties hereto waive a jury. 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 TBE MUNICIPALITY that all MCOA'S employees and/or agents who will be providing products and/or services with respect to this agreement shall be legal residents ofthe 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. EXECUTION. 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, e-mail or other electronic means shall be treated in all manner and respects as an original document. The signature of any party on a copy of this agreement transmitted by fax machine, or e-mail, or other electronic means shall be considered for these purposes as an original signature and shall have the same legal effect as an original signature. Any such faxed, e-mailed or other electronically transmitted 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 electronically transmitted correct copy of this agreement shall be re -executed by the parties in an original form. No party 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 scaled this Agreement of the date first above written. MuniciUal Collections o'America. Ina TITLE: President THE MUNICIPALITY BY: 4