13-187 Resolution No. 13-187
RESOLUTION
AUTHORIZING EXECUTION OF A COLLECTION SERVICES AGREEMENT
WITH MUNICIPAL COLLECTIONS OF AMERICA, INC.
FOR DEBT COLLECTION SERVICES
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS,
that Sean R. Stegall, 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 debt collection services, a copy of which
is attached hereto and made a part hereof by reference.
s/David J. Kaptain
David J. Kaptain, Mayor
Presented: November 20, 2013
Adopted: November 20, 2013
Omnibus Vote: Yeas: 9 Nays: 0
Attest:
s/Kimberly Dewis
Kimberly Dewis, City Clerk
COLLECTION SERVICES ARGEEMENT
MUNICIPAL COLLECTIONS OF AMERICA, INC.
This COLLECTION SERVICES AGREEMENT is hereby made and entered into this
20th day of November , 2013 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.
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 will be payable to MCOA unless money is collected, at which time MCOA will
be paid as follows:
Upon listing for collection, a thirty-five (35%) cost of collection will be added to the
outstanding balance. Upon the successful collection of a debt, a twenty-five and 93/100'percent
(25.93%) collection fee shall be retained by MCOA from the full balance, with the original
balance submitted for collection being paid to the municipality.
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 15'h of the month for any amounts collected by the last
day of the preceding month.
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.
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ARTICLE V
THE MUNICIPALITY hereby authorizes MCOA to accept a negotiated settlement on
any violations 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.
Should THE MUNICIPALITY make any settlement or otherwise takes any action in
derogation of MCOA'S exclusive right to collect on any violation listed for collection, then
MCOA shall be entitled to payment in full, as delineated in Article III hereof, based on the full
amount of the violation, as listed. Any such payments which may become due may be deducted
from THE MUNICIPALITY'S next monthly payment from MCOA.
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 including 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, 2016; 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 the termination of this agreement for
any reason, MCOA shall continue any outstanding collection efforts on debts pursuant to the
terms and provisions of this agreement upon request of THE MUNICIPALITY in the THE
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MUNICIPALITY'S sole discretion. In the event of the termination of this agreement for any
reason, MCOA shall return any and all uncollected debts to THE MUNICIPALITY unless
otherwise directed by the THE MUNICIPALITY in writing in the THE MUNICIPALITY'S sole
discretion.
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 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.
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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
providing products and/or services with respect to this agreement shall be legal residents of 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.
IN WITNESS WHEREOF, the parties have signed and sealed this Agreement of the date
first above written.
Municipal Collections of DAmerica, Inc.
By:
Name: �e FF �✓d°�f
Its: /J" r �-44/'
THE MUNIC ALITY
By: o4-
Sean Stegall, City M ger
Att t:
Kimberly A. ewis, City Clerk
F:\Legal Dept\Agreement\MCOA Amended Agreement-Parking Ticket Collections-clean-10-14-13.docx
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ELGIN
THE CITY IN THE SUBURBS"
DATE: December 18, 2013
TO: Bill Wolf, Deputy Police Chief
FROM: Jennifer Quinton, Deputy City Clerk
SUBJECT: Resolution No. 13-187 Adopted at the November 20, 2013, Council Meeting
Enclosed you will find the agreement listed below. Please distribute this agreement to the other
party and keep a copy for your records if you wish. If you have any questions please feel free to
contact our office 847-931-5660 and we will do our best to assist you. Thank you.
• Collection Services Agreement with Municipal Collections of America, Inc. for
Debt Collection Services