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HomeMy WebLinkAboutMunicipal Collections of America - Collecton Services Agreement - 12.19.2022COLLECTION SERVICES AGREEMENT MUNICIPAL COLLECTIONS OF AMERICA, INC. This COLLECTION SERVICES AGREEMENT is hereby made and entered into this 19th day of ecembr , 2022 by and between Municipal Collections of America, Inc., (MCOA) and the City of Waterloo, Iowa (hereinafter referred to as THE CITY). WHEREAS, MCOA is a duly licensed collection agency in the State of Iowa; and WHEREAS, MCOA possesses the personnel, experience, expertise, and equipment to effectively aid THE CITY in collecting fines tluough an effective collection process; and WHEREAS, THE CITY 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 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. Upon request of MCOA, THE CITY, or its Agents, will provide any relevant documentation deemed necessary for use by MCOA in its collection efforts in a tiinely manner. MCOA will acknowledge receipt of any debts listed for collection within five days thereof. MCOA retains the right to reject any debt submitted for collection. MCOA shall provide THE CITY 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: If THE CITY adds a 25% Collection Fee to a debt upon delinquency: Upon payment, MCOA shall receive twenty-five percent (25%) of the balance paid on each debt prior to any additional fee or cost THE CITY may add to the balance at delinquency. In the event that THE CITY has added a 25% collection fee to the debt prior to listing it with MCOA, MCOA's fee shall be calculated on the balance paid net of the collection fee. If THE CITY does NOT add a 25% Collection Fee to a debt upon delinquency: Any debts that are not eligible for adding on the cost of collection by THE CITY will be recovered with MCOA receiving 25% of the proceeds. Any payments received from the Iowa Department of Administrative Services (DAS) Tax Offset Program shall be charged a reduced commission of 10% paid to MCOA. ARTICLE IV Upon THE CITY'S listing of a debt 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 CITY requests return of the debt to THE CITY 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 CITY'S separate bank trust account established for that purpose. After deduction of the fees allowable by this Agreement, MCOA will forward to THE CITY THE CITY'S share of any amounts collected. Remittance to THE CITY will be made by the 511i 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 CITY for debts which have been listed for collection, THE CITY will report such collections to MCOA daily for accounting pursuant to this agreement. ARTICLE V THE CITY hereby authorizes MCOA to accept a negotiated settlement on any debt listed for collection; provided, however, that unless otherwise authorized by THE CITY, any such settlement shall be no less than 100% of the available balance. Should THE CITY make any settlement or otherwise takes any action in derogation of MCOA's exclusive right to collect on any debt 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 CITY'S next monthly payment from MCOA. 2 ARTICLE VI MCOA shall indemnify and hold THE CITY 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 CITY 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 debt 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 CITY 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 CITY or its employees. Further, THE CITY warrants and represents to MCOA that any debt listed for collection will be a legal and valid debt owed to THE CITY; and in additional to the indemnities listed above, THE CITY 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 12-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. In the event of termination of the Agreement by either party, THE CITY shall have the option of requesting that MCOA continues to process any active payment plans under the same terms and conditions of this Agreement until completion. ARTICLE VIII At least once per year, MCOA will return to THE CITY such debts 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: 3 If to MCOA, If to THE CITY, Municipal Collections of America, Inc. 3348 Ridge Road Lansing, Illinois 60438 City of Waterloo 715 Mulberry Street Waterloo, Iowa 50703 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. 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 CITY that all MCOA'S employees and/or agents who will be 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. 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 party to this agreement 4 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 Collections of America, Inc. By: 'I ItLer- Date: Name: JeffreyWood THE CITY By: Qum-UtzJ �/ crrl sioeEo Name: Quentin Hart 5 Date: 12/19/2022