Loading...
HomeMy WebLinkAboutFinancial Credit Network, Inc. - 2008-10-13F_ CONTRACTS SUBMITTAL Tyr CITY CLERK'S OFFICO"' AN 20 P11i 2: 43 To: JOAN FLYNN, City Clerk Name of Contractor: Amendment No. 1 to Financial Credit Network, Inc. Purpose of Contract: For Example: Audit Services or Water Quality Testing Huntington Lake —Huntington Central Park Collection Agency Services Amount of Contract: Per original agreement Contingency fee pursuant to Exhibit B. Less than $50,000.00. Amended agreement to add Exhibit C. Copy of contract distributed to: The original insurance certificate/waiver distributed Initiating Dept. to Risk Management n Finance Dept. ORIGINAL bonds sent to Treasurer F-1 �/�O/0 % Nary(ejtxten_s_ion .4,ACj Date: !'Pe C"YAttorney's Office G:AttyMisc/Contract Forms/City Clerk Transmittal AMENDMENT NO. 1 TO AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND FINANCIAL CREDIT NETWORK, INC. FOR COLLECTION AGENCY SERVICES THIS AMENDMENT NO. 1 is made and entered into by and between the CITY OF HUNTINGTON BEACH, a California municipal corporation, hereinafter referred to as "CITY," and FINANCIAL CREDIT NETWORK, INC., hereinafter referred to as "CONTRACTOR." WHEREAS, CITY and CONTRACTOR are parties to that certain agreement, dated October 13, 2008, entitled "AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND FINANCIAL CREDIT NETWORK, INC. FOR COLLECTION AGENCY SERVICES," which agreement shall hereinafter be referred to as the "Original Agreement," and Since the execution of the Original Agreement, CITY and CONTRACTOR have determined that additional terms and conditions should be included as part of the Original Agreement, NOW, THEREFORE, it is agreed by CITY and CONTRACTOR as follows: 1. Paragraph 1 SCOPE OF SERVICES and paragraph 4 COMPENSATION are amended to include Exhibit C as follows: 1. SCOPE OF SERVICES CONTRACTOR shall provide all services as described in Exhibits "A" and "C," which are attached hereto and incorporated into this Agreement by this reference. These services shall sometimes hereinafter be referred to as the "PROJECT." CONTRACTOR hereby designates Alicia Sundstrom-Park who shall represent it and be its sole contact in all consultations with CITY during the performance of this Agreement. 2. COMPENSATION In consideration of the performance of the services described therein, CITY agrees to pay CONTRACTOR on a time and materials basis at the rates specified in Exhibits `B" and "C," which are attached hereto and incorporated by reference into this Agreement. 08-1796.001/28501 1 3. REAFFIRMATION Except as specifically modified herein, all other terms and conditions of the Original Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers. This Agreement shall be effective on the date of its approval by the City Attorney. FINANCIAL CREDIT NETWORK, INC. By: print name ITS: (circle one) Chairman/Presiden ice Preside By: print nam ITS: (circle one) ecretary/ hief Financial Officer/Asst. Secretary - Treasurer CITY OF HUNTINGTON BEACH, a municipal corporation of the State of INITIATED AND APPROVED: ity Treasurer APPROVED AS TO FORM: City Attorney MV l Dated: (.� 08-1796.001/28501 2 EXHIBIT "Alt A. STATEMENT OF WORD: CONTRACTOR shall assist the City of Huntington Beach Treasurer department in the collection of unpaid and delinquent accounts. B. CONSULTANT'S DUTIES AND RESPONSIBILITIES: Services shall include, but is not limited to the following: 1. Provide collection services for unpaid and delinquent accounts receivables for: business taxes, parking tickets, traffic and other emergency charges, municipal services charges, false alarms, returned checks, other miscellaneous receivables. a) Vendor shall work with accounts referred by the City Treasurer or her designee only. b) Vendor shall not have full rights to the accounts and shall only be able to pursue collections on behalf of the City. c) City shall provide copies of documentation as required by the vendor to respond to debtors' requests. City will make every effort to provide all pertinent information to the vendor through the account referral data in a format approved by the City. d) Vendor shall allow for time payment agreements and place this statement on all collection notices. City Treasurer shall set parameters in which the Contractor may accept a payment agreement without permission of the City. e) Vendor shall place no delinquent accounts with any attorney for collection without the express written consent of the City of Huntington Beach City Treasurer after obtaining approval from the City Attorney. f) Vendor shall not have authority to accept a compromise settlement on any account without written consent of the City Treasurer or designee for all accounts. This consent may be accomplished by setting parameters in which the vendor may accept a settlement' without permission. g) City will provide a log of all account types by which tracing quarterly and annual reporting will be required. 2. Service Specifications and Scope of Work a) Vendor shall make a minimum of two written or telephone contacts for each account (unless the account clears sooner) within sixty days of receipt of account. Vendor should provide in proposal detailed steps that will be taken once account is received from the City and number of contact and procedures that will be taken. b) Vendor will provide an acknowledgement of accounts placed with the agency within ten (10) days of placement. c) Vendor shall make contacts with delinquent accounts under the name of the collection agency. d) Vendor shall submit status reports on all accounts on a monthly basis by type of receivable. This shall include data for each patron, detailing information such as: original placed value of debt, the value of the current debt, money received, charges waived, interest charged, balance due, and date of last payment. A financial summary will also be required showing "period to date" and "year to date" totals for pertinent information such as: Receipts, net accounts receivable, total accounts receivable, and collection percentage or changes, as requested by City Treasurer. . jmp/contracts group/exA/8/28/08 EXHIBIT "A" In addition, an aging report should be available in summary and in detail. Vendor is to provide copies of all available reports. A year-end report as of September 30 (City's fiscal year-end) will be provided annually to include: ♦ Detailed listing of all accounts by type ♦ Detailed listing of all accounts closed in past year by type ♦ Detail of all activity by account in past year by type ♦ Summary of all the above reports ♦ Percentage collected for past year and cumulative percentage to date e) Vendor shall conduct skip tracing on delinquent accounts. Vendor to provide specific tools used to conduct skip tracing. f) Vendor shall report all uncollected accounts to the major credit bureaus unless a type is excluded from reporting by the City Treasurer. Such reporting must be in accordance with all applicable Federal and California laws including, but not limited to, the Fair Debt Collection Practices Act, Federal Equal Credit Opportunity Act, Regulations and the Consumer Credit Protection Act, as now in effect or hereafter amended. Vendor shall not report accounts to the credit bureaus until the Vendor has worked the account for 60 days. At the request of the City Treasurer, the Vendor shall remove an account notification from all affected bureaus and provide a copy of that notification to the City Treasurer. In accordance with the Fair Credit Reporting Act, the City requires that accounts be. cancelled from each credit bureau upon request of the City Treasurer. g) Vendor shall accept automated or manual transfer and payment information from the City of Huntington Beach's or other vendor's database. It is expected that the contractor will work (at no additional cost) with the City of Huntington Beach and its software to ensure accurate and timely transmission of data. h) Vendor shall comply with the Health Insurance Portability and Accountability Act (HIPAA) to ensure the confidentiality, security, and safety of all files, documents, computer files, etc. Vendor shall enter into a HIPAA Business Associate Agreement, with the City upon selection of this RFP. i) Vendor shall provide in proposal any other information about their collection and shall provide detailed information about their collection methods to be used. 3. Vendor shall perform all work in strict compliance with all Federal and California State laws applicable to debt collectors, including but not limited to the Robbins -Rosenthal Fair Debt Collection Practices Act (California Civil Code 1788-1788.3) and the Federal Fair Debt: Collection Practices Act (I5 U.S. Code 1692 et seq.; Title 16 C.F. R. Section 682 et seq.). 4. Vendor shall perform all work in accordance with state and local laws. 5. The City is customer service oriented and firmly believes in a positive approach in dealing with debtors. The Contractor shall not use tactics that may be interpreted as harassment or as demeaning or that may reflect poorly on the City's efforts. The City prohibits any collection enforcement procedures not consistent with the City's requirements. The City requires the Contractor to exercise high ethical standards in their collection philosophy and techniques. The Contractor shall conduct its collection business in a professional manner, which will preserve the dignity of the City and its relationship with its citizens. jmp/contracts group/exA/8/28/08 EXHIBIT "A" 6. The City will provide overall guidance on the conduct of the collection service as it will reflect on the City's policies and reputation. 7. Vendor shall meet annually with the City of Huntington Beach City Treasurer and appropriate City staff to discuss all services and discuss prior year's results, and Vendor may be asked to periodically provide training to City Treasurer and other department staff at no cost. The vendor will also provide recommendations on how the City can reduce future bad debt. The collection agency should consider providing updates to the City on changes in state and national laws related to credit and collections, as an example, monthly copies of Cred- Alert. 8. Vendor shall maintain accurate records of all transactions. City of Huntington Beach may perform periodic audits to ensure that all amounts collected are accurately reported and. remitted. 9. The City of Huntington Beach City Treasurer and designated staff shall be allowed access to debtor accounting information through an on-line terminal or the internet, such that the Treasurer may view, send or receive messages, generate recovery analysis reports or audit debtor files at anytime. 10. Vendor shall maintain records supporting each assigned account. All such records (correspondence, documents, accounting records and other relative evidence) shall be made available to the City of Huntington Beach for review upon request. These records should be maintained for a period of six (6) years after termination of the collection action on each account. 11. City of Huntington Beach desires a three-year contract; however, the City may terminate the resulting contract by giving thirty days written notice for convenience or cause. 12. City of Huntington Beach will not permit this work to be subcontracted without the prior written consent of the City representative. 13. Vendor shall maintain insurance as specified on the insurance attachment hereto. 14. City of Huntington Beach reserves the right to conduct oral interviews with any or all firms after the formal RFP evaluation process. Oral interviews will be for the addressing of issues specific to each respondent. 15. The City would like the contractor to consider having accounts which are collected by the agency within 30 days of receipt from the City to be returned to the City at 100% or at a discount from the final collection percentage. 16. Any settlement of principal or charges shall be agreed upon between the agency and the City, prior to acceptance and supported in writing by the City. jmp/contracts group/exA/8/28/08 EXHIBIT "A" 17. The City adds a collection fee to all accounts sent to collections and may request the contractor to also charge for delinquent fees once sent to the contractor as allowed by the City's ordinance. C. CITY'S DUTIES AND RESPONSIBILITIES: Identify the collection accounts and assign those accounts to the collection agency via the chosen method. Communicate subsequent changes to those accounts such as direct payments or adjustments, cancellations or updated demographic information. D. WORK PR®GRAMIPROJECT SCHEDULE: To be determined. jmp/contracts group/exA/8/28/08 EXHIBIT "B" Payment Schedule I. Charges for time during travel are normally not reimbursable and will only be paid if such time is actually used in performing services for CITY or as otherwise arranged with CITY. 2. CONTRACTOR shall be entitled to payments in accordance to the contingency fee schedule below: Description Contingency Fee Day 1 — Day 15: 15-day one letter grace period. Any money collected during this time would be posted at a 0% commission. 0% Day 16: Life of Account 26% Court Action(if required) 40% Transfer of account to an out of the area agency for collection 40% CONTRACTOR shall instruct consumers to submit payments due to the City of Huntington Beach at the collection agency. Payments received at the City will be forwarded to the collection agency for processing. The collection agency will be notified within 30 days of any payment processed by the City. The funds received by the collection agency must be maintained in the trust fund until remitted to the City of Huntington Beach, and the collection fee can be deducted at the time of remittance. After year one or year two of the three-year term, this contract may be amended to allow CONTRACTOR to invoice CITY for all collection fee charges. Total estimated cost for years two and three are $90,000. 3. Delivery of work product: At the CITY's request, certain documents prepared by CONTRACTOR shall be submitted to CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. 4. Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. jmp/contracts group/exB-1/8/28/08 Exhibit C Customized Secondary Placement Program 1. CONTRACTOR shall provide collection services for second placement accounts for the City of Huntington Beach. Second placement accounts will be defined as any account that has previously been treated at another collection agency for more than six months. The CITY understands that this program has been developed to meet the City's needs. 2. CONTRACTOR shall be entitled to payments in accordance to the contingency fee schedule below: scri tion t Contin enc Fee cond Placement Accounts 36% CONTRACTOR shall instruct consumers to submit payments due to the City of Huntington Beach at the collection agency. Payments received by either the CITY or the previous vendor will be forwarded to the CONTRACTOR for processing. The collection agency will be notified within 30 days of any payment processed by the City. The funds received by the CONTRACTOR must be maintained in the trust fund until remitted to the City of Huntington Beach and the collection fee can be deducted at the time of remittance. Owawvwservice Contracts Purchasing Certification Amendment # 1 RECEIVED 1. Date Requested: 10/30/08 R E Cr 2. Contract Number to be Amended: n/a DEC 1 1 2000 City of Huntington Beach 3. Department: City Treasurer city of Huntington se 5ac., City Attorneys OfficeCity Attornoy's cmica 4. Requested By: Shari Freidenrich 5. Name of Consultant: Financial Credit Network 6. Amount of Original/Prior Contract: $Fees are offset against collections. 7. Additional Compensation Requested: $See proposed new Schedule "C" as provided by Financial Credit Network 8. Original Commencement Date: 10/13/08, or as soon as amendment is completed. J 9. Original Termination Date: According to terms in section 1A of contract, the city has the right to terminate as it desires. 10. Extended Date Requested: n/a 11. Reason for Contract Amendment: Add exhibit "C" for covering collections formerly submitted to previous vendor. 12. Are sufficient funds available to fund this contract? Yes ® No ❑ 13. Business Unit and Object Code where funds are budgeted: n/a. partm n Head Signature Central Services Manager Vendor Contract Recap Sheet Subject: Credit Collection Agency contract Former Vendor: Vengroff Williams and Associates Current Vendor: Financial Credit Network, Inc. Contract Effective Date: 10/13/08 Contract Expiration Date: 10/13/11 Contract terms: Agency only gets paid the following when they collect funds on accounts sent to them for collection. Day 1 — Day 15; 15 day, one day letter grace period. Any money collected during this time would be posted at a 0% commission Day 16: Life of account — 26% Court action (if required) — 40% Transfer of account to an out of the area agency for collection — 40% RFP Process: RFP sent out on 10/08/07 date to 8 vendors and also placed on the City's website RFP closed on 10/29/07 11 vendors submitted bids Review team from City Treasurer's, Fire, and Library departments reviewed bids and provided ratings on bidders. Top 4 firms invited to an interview with City Treasurer Dept. City Treasurer Department selected FCN as winning bidder. Contract amended to provide that FCN would also perform collections on outstanding accounts formerly at Vengroff Williams and Associates (those less than 6 months old) for a rate of 36%. CONTRACTS SUBMIT FJ4 T40A M 10: 5 2 CITY CLERK'S 0 N­"L To: JOAN FLYNN, City Clerk Name of Contractor: Financial Credit Network, Inc. Purpose of Contract: For Example: Audit Services or Water Quality Testing Huntington Lake— Huntington Central Park Collection Agency Services Amount of Contract: Contingency fee pursuant to Exhibit B. Less than $50,000.00. Copy of contract distributed to: The original insurance certificate/waiver distributed Initiating Dept. F] to Risk Management R Finance Dept. n ORIGINAL bonds sent to Treasurer F-1 Date: 1611 310LP r4arn/Ekdnsi'n - City Attorney's Office G:AttyMisc/Contract Forms/City Clerk Transmittal s SERVICE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND FINANCIAL CREDIT NETWORK, INC. FOR COLLECTION AGENCY SERVICES THIS AGREEMENT ("Agreement") is made and entered into by and between the CITY OF HUNTINGTON BEACH a municipal corporation of the State of California, hereinafter called the "CITY," and FINANCIAL CREDIT NETWORK, INC., a corporation hereinafter referred to as "CONTRACTOR." WHEREAS, CITY desires to engage the services of a contractor to provide debt collection services; and Pursuant to document on file in the office of the City Clerk, the provisions of the ' Huntington Beach Municipal Code, Chapter 3.02, relating to the procurement of service contacts have been complied with; and CONTRACTOR has been selected to perform these services, NOW, THEREFORE, it is agreed by CITY and CONTRACTOR as follows: 1. SCOPE OF SERVICES CONTRACTOR shall provide all services as described in Exhibit "A," which is attached hereto and incorporated into this Agreement by this reference. These services shall sometimes hereinafter be referred to as the "PROJECT." CONTRACTOR hereby designates Alicia Sundstrom-Park who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. 08-1796/26071 1 Of 11 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONTRACTOR in the performance of this Agreement. 3. TERM; TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONTRACTOR are to commence as soon as practicable after the execution of this Agreement by CITY (the "Commencement Date"). This Agreement shall automatically terminate three (3) years from the Commencement Date, unless extended or sooner terminated as provided therein. All tasks specified in Exhibit "A" shall be completed no later than three (3) years from the I Commencement Date of this Agreement. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule may be amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONTRACTOR. In the event the Commencement Date precedes the Effective Date, CONTRACTOR shall be bound by all terms and conditions as provided herein. 4. COMPENSATION In consideration of the performance of the services described therein, CITY agrees to pay CONTRACTOR on a time and materials basis at the rates specified in Exhibit `B," which is attached hereto and incorporated by reference into this Agreement. 5. EXTRA WORK In the event CITY requires additional services not included in Exhibit "A" or changes in the scope of services described in Exhibit "A," CONTRACTOR will undertake such work only after receiving written authorization from CITY. Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. 08-1796/26071 2of11 6. METHOD OF PAYMENT CONTRACTOR shall be paid pursuant to the terms of Exhibit "B." 7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONTRACTOR agrees that title to all materials prepared hereunder, including, without limitation, all original drawings, designs, reports, both field and office notices, calculations computer code, language, data or programs, maps, memoranda, letters and other documents, shall belong to CITY, and CONTRACTOR shall turn these materials over to CITY upon expiration or termination of this Agreement or upon PROJECT completion, whichever shall occur first. These materials may be used by CITY as it sees fit. 8. HOLD HARMLESS CONTRACTOR hereby agrees to protect, defend, indemnify and hold harmless CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or in connection with CONTRACTOR's (or CONTRACTOR's subcontractors, if any) negligent (or alleged negligent) performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement by CONTRACTOR, its officers, agents or employees except such loss or damage which was caused by the sole negligence or willful misconduct of CITY. CONTRACTOR will conduct all defense at its sole cost and expense and CITY shall approve selection of CONTRACTOR's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by CONTRACTOR. 08-1796/26071 3 of 11 9. WORKERS COMPENSATION INSURANCE CONTRACTOR shall carry workers compensation insurance as required by law for the protection of its employees during the progress of the work. Contractor understands that it is an independent contractor and not entitled to any worker's compensation benefits under any City program. 10. GENERAL LIABILITY INSURANCE CONTRACTOR shall obtain and furnish to CITY a comprehensive general liability insurance policy covering the work performed by it hereunder. This policy shall provide coverage for CONTRACTOR's general liability in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and a separate "Additional Insured Endorsement" page listing both the policy number and naming the "City of Huntington Beach, its officers, elected or appointed officials, employees, agents and volunteers" as additional insured on the endorsement. The above -mentioned insurance shall not contain a self -insured retention, "deductible" or any other similar form of limitation on the required coverage except with the express written consent of CITY. 11. AUTOMOTIVE LIABILITY INSURANCE CONTRACTOR shall obtain and furnish to CITY an automotive liability insurance policy covering the work performed by it hereunder. This policy shall provide coverage for CONTRACTOR's automotive liability in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and a separate "Additional Insured Endorsement" page listing both the policy number and naming the "City of Huntington Beach, its officers, elected or 08-1796/26071 4 of 11 t appointed officials, employees, agents and volunteers" as additional insured on the endorsement. The above -mentioned insurance shall not contain a self -insured retention, "deductible" or any other similar form of limitation on the required coverage except with the express written consent of CITY. 12. CERTIFICATE OF INSURANCE Prior to commencing performance of the work hereunder, CONTRACTOR shall furnish to CITY a certificate of insurance subject to approval of the City Attorney evidencing the i foregoing insurance coverage as required by this Agreement; the certificate shall: a. provide the name and policy number of each carrier and policy; b. state that the policy is currently in force; and c. promise that such policy shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice; however, ten (10) days' prior written notice in the event of cancellation for nonpayment of premium. CONTRACTOR shall maintain the foregoing insurance coverage in force until the work under this Agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverage shall not derogate from CONTRACTOR's defense, hold harmless and indemnification obligations as set forth in this Agreement. CITY or its representative shall at all times have the right to demand the original or a copy of the policy of insurance. CONTRACTOR shall pay, in a prompt and timely manner, the premiums on the insurance hereinabove required. 13. INDEPENDENT CONTRACTOR CONTRACTOR is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of CITY. CONTRACTOR shall 08-1796/26071 5 of 11 r secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONTRACTOR and its officers, agents and employees and all business licenses, if any, in connection with the PROJECT and/or the services to be performed hereunder. 14. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. I CITY may terminate CONTRACTOR's services hereunder with or without cause, and whether or not the PROJECT is fully complete. CITY may terminate this Agreement with or without R cause by giving CONTRACTOR written notice ("Notice of Termination"), which clearly expresses CITY's intent to terminate the Agreement. Notice of Termination shall become effective no less than thirty (30) calendar days after CONTRACTOR receives such notice. In the event of termination, all finished and unfinished documents, exhibits, report, and evidence shall, at the option of CITY, become its property and shall be promptly delivered to it by CONTRACTOR. 15. ASSIGNMENT AND DELEGATION This Agreement is a personal service contract and the work hereunder shall not be assigned, delegated or subcontracted by CONTRACTOR to any other person or entity without the prior express written consent of CITY. If an assignment, delegation or subcontract is approved, all approved assignees, delegates and subcontractors must satisfy the insurance requirements as set forth in this Agreement. 16. CITY EMPLOYEES AND OFFICIALS CONTRACTOR shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any 08-1796/26071 6 of I I financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 17. NOTICES Any notices, certficates, or other communications hereunder shall be given either by personal delivery to CONTRACTOR's agent (as designated in Section 1 hereinabove) or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses below. CITY and CONTRACTOR may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U.S. certified U.S. certified mail -return receipt requested: TO CITY: TO CONTRACTOR: City of Huntington Beach Financial Credit Network, Inc. Attn: Shari Freidenrich, City Treasurer Attn: Alicia Sundstrom - Park P.O. Box 190 P.O. Box 3084 Huntington Beach, CA 92648-0190 Visalia, CA 93277 18. CONSENT When CITY's consent/approval is required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transactions or event. 19. MODIFICATION No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 08-1796/email page.doc 7 of 11 { 20. SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 21. INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 22. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of 08-1796/26071 8 of 11 the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 23. IMMIGRATION CONTRACTOR shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 24. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONTRACTOR and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONTRACTOR understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONTRACTOR. 25. CONFIDENTIALITY CONTRACTOR recognizes that in the performance of its duties under this Agreement, it must conduct its activities in a manner designed to protect information of a sensitive nature from improper use or disclosure. CONTRACTOR warrants that it will use reasonable efforts consistent with practices customary in the facilities management industry in recruiting, training and supervising employees and in otherwise performing its duties hereunder in order to achieve this result. In the furtherance of this, CONTRACTOR agrees, at the request of the CITY, to require its employees to execute written undertakings to comply with the foregoing confidentiality provision. 08-1796/26071 9 of 11 26. ATTORNEY' S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing parry shall not be entitled to recover its attorney's fees from the nonprevailing party. 27. SURVIVAL Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 28. GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 29. SIGNATORIES Each undersigned represents and warrants that its signature hereinbelow has the power, i authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. CONTRACTOR'S initials 30. ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on 08-1796a6071 10 of I I any representation, inducement, promise, agreement warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. 31. EFFECTIVE DATE IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers. This Agreement shall be effective on the date of its approval by the City., . ; This Agreement shall expire when terminated as provided herein. FINANCIAL CREDIT NETWORK, INC. t>&v SS print name- ITS: (circle one) Chairman/Presid (tIvice President ND By: ���_'p l It k, print name ITS: (circle on4CS_ecreta!DChief Financial Officer/Asst. Secretary - Treasurer CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California City Administrator INITIATED AND APPROVED: ity Trea er APPROVED AS TO FORM: PA) ttj (� lot City Attorney 1 '�/ 3J0's Dated: 10/13/08 °� 4111,91 08-1796/26071 11 of 11 EXHIBIT "A" A. STATEMENT OF WORK: CONTRACTOR shall assist the City of Huntington Beach Treasurer department in the collection of unpaid and delinquent accounts. B. CONSULTANT'S DUTIES AND RESPONSIBILITIES: Services shall include, but is not limited to the following: 1. Provide collection services for unpaid and delinquent accounts receivables for: business taxes, parking tickets, traffic and other emergency charges, municipal services charges, false alarms, returned checks, other miscellaneous receivables. a) Vendor shall work with accounts referred by the City Treasurer or her designee only. b) Vendor shall not have full rights to the accounts and shall only be able to pursue collections on behalf of the City. c) City shall provide copies of documentation as required by the vendor to respond to debtors' requests. City will make every effort to provide all pertinent information to the vendor through the account referral data in a format approved by the City. d) Vendor shall allow for time payment agreements and place this statement on all collection notices. City Treasurer shall set parameters in which the Contractor may accept a payment agreement without permission of the City. e) Vendor shall place no delinquent accounts with any attorney for collection without the express written consent of the City of Huntington Beach City Treasurer after obtaining approval from the City Attorney. f) Vendor shall not have authority to accept a compromise settlement on any account without written consent of the City Treasurer or designee for all accounts. This consent may be accomplished by setting parameters in which the vendor may accept a settlement' without permission. g) City will provide a log of all account types by which tracing quarterly and annual reporting will be required. 2. Service Specifications and Scope of Work a) Vendor shall make a minimum of two written or telephone contacts for each account' (unless the account clears sooner) within sixty days of receipt of account. Vendor should provide in proposal detailed steps that will be taken once account is received from the City and number of contact and procedures that will be taken. b) Vendor will provide an acknowledgement of accounts placed with the agency within ten (10) days of placement. c) Vendor shall make contacts with delinquent accounts under the name of the collection agency. d) Vendor shall submit status reports on all accounts on a monthly basis by type of receivable. This shall include data for each patron, detailing information such as: original placed value of debt, the value of the current debt, money received, charges waived, interest charged, balance due, and date of last payment. A financial summary will also be required showing "period to date" and "year to date" totals for pertinent information such as: Receipts, net accounts receivable, total accounts receivable, and collection percentage or changes, as requested by City Treasurer. . jmp/contracts group/exA/8/28/08 EXHIBIT "A" In addition, an aging report should be available in summary and in detail. Vendor is to provide copies of all available reports. A year-end report as of September 30 (City's fiscal year-end) will be provided annually to include: ♦ Detailed listing of all accounts by type ♦ Detailed listing of all accounts closed in past year by type ♦ Detail of all activity by account in past year by type ♦ Summary of all the above reports ♦ Percentage collected for past year and cumulative percentage to date e) Vendor shall conduct skip tracing on delinquent accounts. Vendor to provide specific tools used to conduct skip tracing. f) Vendor shall report all uncollected accounts to the major credit bureaus unless a type is excluded from reporting by the City Treasurer. Such reporting must be in accordance with all applicable Federal and California laws including, but not limited to, the Fair Debt Collection Practices Act, Federal Equal Credit Opportunity Act, Regulations and the Consumer Credit Protection Act, as now in effect or hereafter amended. Vendor shall not report accounts to the credit bureaus until the Vendor has worked the account for 60 days. At the request of the City Treasurer, the Vendor shall remove an account notification from all affected bureaus and provide a copy of that notification to the City Treasurer. In accordance with the Fair Credit Reporting Act, the City requires that accounts be cancelled from each credit bureau upon request of the City Treasurer. g) Vendor shall accept automated or manual transfer and payment information from the City of Huntington Beach's or other vendor's database. It is expected that the contractor will work (at no additional cost) with the City of Huntington Beach and its software to ensure accurate and timely transmission of data. h) Vendor shall comply with the Health Insurance Portability and Accountability Act (HIPAA) to ensure the confidentiality, security, and safety of all files, documents, computer files, etc. Vendor shall enter into a HIPAA Business Associate Agreement, with the City upon selection of this RFP. i) Vendor shall provide in proposal any other information about their collection and shall provide detailed information about their collection methods to be used. 3. Vendor shall perform all work in strict compliance with all Federal and California State laws applicable to debt collectors, including but not limited to the Robbins -Rosenthal Fair Debt Collection Practices Act (California Civil Code 1788-1788.3) and the Federal Fair Debt' Collection Practices Act (15 U.S. Code 1692 et seq.; Title 16 C.F. R. Section 682 et seq.). 4. Vendor shall perform all work in accordance with state and local laws. 5. The City is customer service oriented and firmly believes in a positive approach in dealing with debtors. The Contractor shall not use tactics that may be interpreted as harassment or as demeaning or that may reflect poorly on the City's efforts. The City prohibits any collection enforcement procedures not consistent with the City's requirements. The City requires the Contractor to exercise high ethical standards in their collection philosophy and techniques. The Contractor shall conduct its collection business in a professional manner, which will preserve the dignity of the City and its relationship with its citizens. jmp/contracts group/exA/8/28/08 EXHIBIT "A" 6. The City will provide overall guidance on the conduct of the collection service as it will reflect on the City's policies and reputation. 7. Vendor shall meet annually with the City of Huntington Beach City Treasurer and appropriate City staff to discuss all services and discuss prior year's results, and Vendor may be asked to periodically provide training to City Treasurer and other department staff at no cost. The vendor will also provide recommendations on how the City can reduce future bad debt. The collection agency should consider providing updates to the City on changes in state and national laws related to credit and collections, as an example, monthly copies of Cred- Alert. 8. Vendor shall maintain accurate records of all transactions. City of Huntington Beach may perform periodic audits to ensure that all amounts collected are accurately reported and. remitted. 9. The City of Huntington Beach City Treasurer and designated staff shall be allowed access to debtor accounting information through an on-line terminal or the internet, such that the Treasurer may view, send or receive messages, generate recovery analysis reports or audit debtor files at anytime. 10. Vendor shall maintain records supporting each assigned account. All such records (correspondence, documents, accounting records and other relative evidence) shall be made available to the City of Huntington Beach for review upon request. These records should be maintained for a period of six (6) years after termination of the collection action on each account. 11. City of Huntington Beach desires a three-year contract; however, the City may terminate the resulting contract by giving thirty days written notice for convenience or cause. 12. City of Huntington Beach will not permit this work to be subcontracted without the prior written consent of the City representative. 13. Vendor shall maintain insurance as specified on the insurance attachment hereto. 14. City of Huntington Beach reserves the right to conduct oral interviews with any or all firms after the formal RFP evaluation process. Oral interviews will be for the addressing of issues specific to each respondent. 15. The City would like the contractor to consider having accounts which are collected by the agency within 30 days of receipt from the City to be returned to the City at 100% or at a discount from the final collection percentage. 16. Any settlement of principal or charges shall be agreed upon between the agency and the City, prior to acceptance and supported in writing by the City. jmp/contracts group/exA/8/28/08 EXHIBIT "A" 17. The City adds a collection fee to all accounts sent to collections and may request the contractor to also charge for delinquent fees once sent to the contractor as allowed by the City's ordinance. C. CITY'S DUTIES AND RESPONSIBILITIES: Identify the collection accounts and assign those accounts to the collection agency via the chosen method. Communicate subsequent changes to those accounts such as direct payments or adjustments, cancellations or updated demographic information. D. WORK PROGRAM/PROJECT SCHEDULE: To be determined. jmp/contracts group/exA/8/28/08 EXHIBIT "B" Payment Schedule 1. Charges for time during travel are normally not reimbursable and will only be paid if such time is actually used in performing services for CITY or as otherwise arranged with CITY. 2. CONTRACTOR shall be entitled to payments in accordance to the contingency fee schedule below: Description Contingency Fee Day 1 — Day 15: 15-day one letter grace period. Any money collected during this time would be posted at a 0% commission. 0% Day 16: Life of Account 26% Court Action(if required) 40% Transfer of account to an out of the area agency for collection 40% CONTRACTOR shall instruct consumers to submit payments due to the City of Huntington Beach at the collection agency. Payments received at the City will be forwarded to the collection agency for processing. The collection agency will be notified within 30 days of any payment processed by the City. The funds received by the collection agency must be maintained in the trust fund until remitted to the City of Huntington Beach, and the collection fee can be deducted at the time of remittance. After year one or year two of the three-year term, this contract may be amended to allow CONTRACTOR to invoice CITY for all collection fee charges. Total estimated cost for years two and three are $90,000. 3. Delivery of work product: At the CITY's request, certain documents prepared by CONTRACTOR shall be submitted to CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. 4. Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. jmp/contracts group/exB-1/8/28/08 su k� INSURANCE AND INDEMNIFICATION WAIVER MODIFICATIONHUM s 1. Requested by: Shari Freidenrich SEP 2 4 200 2. Date: September 23, 2008 City of Huntington baQc:,: 3. Name of contractor/permittee: Financial Credit Network CityAttorney's offic6 4. Description of work to be performed: Collection Agency Services 5. Value and length of contract: 3 years 6. Waiver/modification request: Waive completed operations coverage requirements 7. Reason for request and why it should be granted: No risk for completed operations liability. 8. Identify the risks to the City in approving this waiver/modification: No risk 9- 13 'y T' D ent HeAd Signature Date: APPROVALS Approvals must be obtained in the order listed on this form. Two approvals are required for a request to be granted. Approval from the City Administrator's Office is only required if Risk Management anojhy City Attorney's.Office disagree. 1. Risk Management 0,Approved ❑ Denied �D Signature Date 2. City Attorneys Office proved ❑ Denie ' 0 W_ Signature U Date 3. City Administrator's Office ❑ Approved ❑ Denied Signature Date If approved, the completed waiver/modification request is to be submitted to the City Attorney's Office along with the contract for approval. Once the contract has been approved, ----__this-form-isto-be-filed with -the -Risk Management -Division -of -Administrative -Services- --- --- FC'N Incuranca Waivar 9/9�/9nnR 'i•.ri4•nn PM ACORDM CERTIFICATE OF LIABILITY INSURANCE 09/05iz 81 PRODUCER (559)737-9670 FAX (559)737-9673 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Arthur J . Gallagher & Co. Ins. Brokers of CA Inc. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 720 W. Main St. ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Suite A Visalia, CA 93291 INSURERS AFFORDING COVERAGE NAIC # INSURED Financial Credit Network, Inc. INSURERA: Golden Eagle Insurance Corp. 10375 P.O. Box 3084 INSURER B: The Netherlands Insurance Co Visalia, CA 93278 INSURERC: INSURER D: INSURER E: �rwco w noO THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. D' NqRDATE TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION (MM/DDNY) LIMITS rA GENERAL LIABILITY X COMMERCIAL GENERAL LIABILITY CLAIMS MADE M OCCUR CBP8018054 03/31/2008 03/31/2009 EACH OCCURRENCE $ 1,000,000 DAMAGE TO RENTED $ 100,000 MED EXP (Any one person) $ 10,000 PERSONAL 8 ADV INJURY $ Excluded GENERAL AGGREGATE $ 2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PROECT LOC J PRODUCTS -COMP/OP AGG $ 2,000,000 B AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS BA8017554 c� APP pVED S i 03/31/2008 ��,{ o ORM iAmu! 03/31/2009 f5' COMBINED SINGLE LIMIT (Ea accident) $ 1,000,000 BODILY INJURY (Per person) $ X X BODILY INJURY (Peraccident) $ X PROPERTY DAMAGE P accident) $ GARAGE LIABILITY ANY AUTO -� �; AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC AUTO ONLY: AGG $ $ A EXCESS/UMBRELLA LIABILITY X OCCUR CLAIMS MADE DEDUCTIBLE RETENTION $ CU8017854 03/31/2008 03/31/2009 EACH OCCURRENCE $ 3,000,.000 AGGREGATE $ 3,000,000 $ $ $ WORKERS COMPENSATION COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? If yes, describe under SPECIAL PROVISIONS below WC OTH- FIR E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYE $ E.L. DISEASE - POLICY LIMIT $ OTHER DESCRIPTI N OF OPERATIONS / LOCATIONS / VEHICLES I E CLUSIONS ADQED BY ENDORSEMENT / SPECIAL PROV SIONS ity of Huntington Beach, its of?icers, elected or appointed ollficials, employees, agents and volunteers are named addtional insured on General Liability per form # GECG 602 (09/04) & Auto per form #GECA 701 (01/07) City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES, AUTHORIZED REPRESENTATIVE C� Tracey Donal dson/DANI ACORD 25 (2001108) ©ACORD CORPORATION 1988 IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD 25 (2001/08) COMMERCIAL LIABILITY GOLD ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SECTION I - COVERAGES COVERAGE A. BODILY INJURY AND PROPERTY DAMAGE LIABILITY 2. Exclusions Item 2.g. 2) is replaced with the following: 2.g. 2) A watercraft you do not own that is: a) less than 50 feet long; and b) Not being used to carry persons or property for a charge. Item 2.g. 6) is added: 6) An aircraft in which you have no ownership interest and that you have chartered with crew. The last paragraph of 2. Exclusions is replaced with the following: Exclusions c. through n. do not apply to damage by fire, explosion, sprinkler leakage, or lightning to premises while rented to you, temporarily occupied by you with the permission of the owner, or managed by you under a written agreement with the owner. A separate limit of insurance applies to this coverage as described in Section III - Limits of Insurance. SECTION I - COVERAGES COVERAGE C. MEDICAL PAYMENTS If Medical Payments Coverage is provided under this policy, the following is changed: 3. Limits The medical expense limit provided by this policy shall be the greater of: a. $10,000; or -b. The amount shown -in -the declarations. - Coverage C. Medical Payments is primary and not contributing with any other insurance, even if that other insurance is also primary. GECG 602 (09/04) Includes copyrighted material of Insurance Services Offices Inc. with its permission Page 1 of I The following is added: COVERAGE D. PRODUCT RECALL NOTIFICATION EXPENSES Insuring Agreement We will pay "product recall notification expenses" incurred by you for the withdrawal of your products, provided that: a. Such withdrawal is required because of a determination by you during the policy period, that the use or consumption of your products could result in "bodily injury" or "property damage"; and b. The "product recall notification expenses" are incurred and reported to us during the policy period. The most we will pay for "product recall notification expenses" during the policy period is $100,000. SUPPLEMENTARY PAYMENTS - COVERAGES A AND B Item b. and d. are replaced with: b. The cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which the Bodily Injury Liability Coverage applies. We do not have to furnish these bonds. d. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit' including actual loss of earnings up to $500 a day because of time off from work. SECTION II -WHO IS AN INSURED Item 4. is replaced with: 4. Any subsidiaries, companies, corporations, firms, or organizations you acquire or form during the policy period over which you maintain a controlling interest of greater than 50% of the stock or assets, will qualify as a Named Insured if: a) you have the responsibility of placing insurance for such entity; and b) coverage for the entity is not otherwise more specifically provided; and c) the entity is incorporated or organized under the laws of the United States of America. However; coverage under this provision does not apply to "bodily injury" or "property damage" that occurred before you acquired or formed the entity, or "personal injury" or "advertising injury" arising out of an offense committed before you acquired or formed the entity. Coverage under this provision is afforded only until the end of the policy. period, or the twelve (12) month anniversary of the policy inception date whichever is earlier. SECTION III - LIMITS OF INSURANCE Paragraph 2 is amended to include: The General Aggregate Limit of Insurance applies separately to each 'location" owned by you, rented to you, or occupied by you with the permission of the owner. GECG 602 (09/04) Includes copyrighted material of Insurance Services Offices Inc. with its permission Page 2 of 2 Paragraph 6. is replaced with the following: 6. Subject to 5. above, the Fire Damage Limit is the most we will pay under Coverage A for damages because of "property damage" to premises while rented to you, temporarily occupied by you with permission of the owner, or managed by you under a written agreement with the owner, arising out of any one fire, explosion or sprinkler leakage incident. The Fire Damage Limit provided by this policy shall be the greater of: I$ $f1 . b. The amount shown in the Declarations. SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS Item 2. a. is replaced with: 2. Duties In The Event of Occurrence, Offense, Claim or Suit a. You must promptly notify us. Your duty to promptly notify us is effective when any of your executive officers, partners, members, or legal representatives is aware of the "occurrence", offense, claim, or "suit". Knowledge of an "occurrence", offense, claim or "suit" by other employee(s) does not imply you also have such knowledge. To the extent possible, notice to us should include: 1) How, when and where the "occurrence" or offense took place; 2) The names and addresses of any injured persons and witnesses; and 3) The nature and location of any injury or damage arising out of the "occurrence", offense, claim or "suit". Item 4. b. 1) b) is replaced with: b. Excess Insurance 1) b) That is Fire, Explosion or Sprinkler Leakage insurance for premises while rented to you, temporarily occupied by you with permission of the owner, or managed by you under a written agreement with the owner; or Item 6. is amended to include: 6. Representations d. If you unintentionally fail to disclose any hazards existing at the inception date of your policy, we will not deny coverage under this Coverage Part because of such failure. However, this provision does not affect our right to collect additional premium or exercise our right of cancellation or non -renewal. Item 8. is replaced with: 8. Transfer of Rights Of Recovery Against Others To Us a: -If the -insured hasrightstorecoverall-or part of any payment we have made -under -this Coverage - Part, those rights are transferred to us. The insured must do nothing after loss to impair them. At our request, the insured will bring suit or transfer those rights to us and help us enforce them. GECG 602 (09/04) Includes copyrighted material of Insurance Services Offices Inc. with its permission Page 3 of 3 b. If required by a written "insured contract", we waive any right of recovery we may have against any person or organization because of payments we make for injury or damage arising out of your ongoing operations or "your work" done under that written "insured contract" for that person or organization and included in the "products -completed operations hazard". Item 10. and Item 11. are added. 10. Cancellation Condition If we cancel this policy for any reason other than nonpayment of premium we will mail or deliver written notice of cancellation to the first Named Insured at least 60 days prior to the effective date of cancellation. 11. Liberalization If we adopt a change in our forms or rules which would broaden your coverage without an extra charge, the broader coverage will apply to this policy. This extension is effective upon the approval of such broader coverage in your state. SECTION V- DEFINITIONS The following definitions are added or changed. 9. "Insured contract" a. Is changed to: a. A contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or organization for damage.by fire, explosion or sprinkler leakage to premises while rented to you, or temporarily occupied by you with permission of the owner, or managed by you under a written agreement with the owner is not an "insured contract'. 23 and 24 are added: 23. "Location" means premises involving the same or connecting lots; or premises whose connection is interrupted only by a street, roadway, waterway or right-of-way of a railroad. 24. "Product recall notification expenses" means the reasonable additional expenses (including, but not limited to, cost of correspondence, newspaper and magazine advertising, radio or television announcements and transportation cost), necessarily incurred in arranging for the return of products, but excluding costs of the replacement products and the cash value of the damaged products. The following Provisions are also added to this Coverage Part: A. ADDITIONAL INSUREDS - BY CONTRACT, AGREEMENT OR PERMIT 1. Paragraph 2. under SECTION II - WHO IS AN INSURED is amended to include as an insured any person or organization when you and such person or organization have agreed in writing in a contract, agreement or permit that such person or organization be added as an additional insured on your policy to provide insurance -such -as -is afforded under this Coverage Part. Such person -or organization is not — - entitled to any notices that we are required to send to the Named Insured and is an additional insured only with respect to liability arising out of: a. Your ongoing operations performed for that person or organization-, or b. Premises or facilities owned or used by you. GECG 602 (09/04) Includes copyrighted material of Insurance Services Offices Inc. with its permission Page 4 of 4 With respect to provision 1.a. above, a person's or organization's status as an insured under this endorsement ends when your operations for that person or organization are completed. With respect to provision 1.b. above, a person's or organization's status as an insured under this endorsement ends when their contract or agreement with you for such premises or facilities ends. 2. This endorsement provision A. does not apply: a. Unless the written contract or agreement has been executed, or permit has been issued, prior to the "bodily injury", "property damage" or "personal and advertising injury"; b. To "bodily injury" or "property damage" occurring after: (1) All work, including materials, parts or equipment furnished in connection with such work, in the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the site of the covered operations has been completed; or (2) That portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project; c. To the rendering of or failure to render any professional services including, but not limited to, any professional architectural, engineering or surveying services such as: (1) The preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; and (2) Supervisory, inspection, architectural or engineering activities; d. To "bodily injury", "property damage" or "personal and advertising injury" arising out of any act, error or omission that results from the additional insured's sole negligence or wrongdoing; e. To any person or organization included as an insured under provision B. of this endorsement; f. To any person or organization included as an insured by a separate additional insured endorsement issued by us and made a part of this policy. B. ADDITIONAL INSURED — VENDORS Paragraph 2. under SECTION II - WHO IS AN INSURED is amended to include as an insured any person or organization (referred to below as "vendor") with whom you agreed, in a written contract or agreement to provide insurance such as is afforded under this policy, but only with respect to "bodily injury" or "property damage" arising out of "your products" which are distributed or sold in the regular course of the vendor's business, subject to the following additional exclusions: 1. The insurance afforded the vendor does not apply to: a. "Bodily injury" or "property damage" for which the vendor is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that the vendor would have in the absence of the contract or agreement;_ b. Any express warranty unauthorized by you; c. Any physical or chemical change in the product made intentionally by the vendor; GECG 602 (09/04) Includes copyrighted material of Insurance Services Offices Inc. with its permission Page 5 of 5 d. Repackaging, unless unpacked solely for the purpose of inspection, demonstration, testing, or substitution of parts under instructions from the manufacturer, and then repackaged in the original container; e. Any failure to make such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the course of business, in connection with the distribution or sale of the products; f. Demonstration, installation, servicing or repair operations, except such operations performed at the vendor's premises in connection with the sale of the product; g. Products which, after distribution or sale by you, have been labeled or relabeled or used as a container, part or ingredient of any other thing or substance by or for the vendor; or h. To "bodily injury" or "property damage" arising out of any act, error or omission that results from the additional insured's sole negligence or wrongdoing. 2. This insurance does not apply to any insured person or organization, from whom you have acquired such products, or any ingredient, part or container, entering into, accompanying or containing such products. GECG 602 (09/04) Includes copyrighted material of Insurance Services Offices Inc. with its permission Page 6 of 6 COMMERCIAL AUTO GOLD ENDORSEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM SECTION Il —LIABILITY COVERAGE A. COVERAGE 1. WHO IS AN INSURED The following is added: d. Any organization, other than a partnership or joint venture, over which you maintain ownership or a majority interest on the effective date of this Coverage Form, d there is no similar insurance available to that organization. e. Any organization you newly acquire or form other than a partnership or joint venture, and over which you maintain ownership of a majority interest. However, coverage under this provision does not apply: (1) If there is similar insurance or a self -insured retention plan available to that organization; or (2) To "bodily injury" or "property damage" that occurred before you acquired or formed the organization. f, Any volunteer or employee of yours while using a covered "auto" you do not own, hire or borrow in your business or your personal affairs. Insurance provided by this endorsement is excess over any other insurance available to any volunteer or employee. g. Any person, organization, trustee, estate or governmental entity with respect to the operation, maintenance or use of a covered "auto" by an insured, if: (1) You are obligated to add that person, organization, trustee, estate or governmental entity as an additional insured to this policy by: (a) an expressed provision of an "insured contract", or written agreement; or (b) an expressed condition of a written permit issued to you by a governmental or public authority. (2) The "bodily injury" or "property damage" is caused by an "accident" which takes place after: (a) You executed the "insured contract" or written agreement; or (b) the permit has been issued to you. 2. COVERAGE EXTENSIONS a. Supplementary Payments. Subparagraphs (2) and (4) are amended as follows: (2) Up to $2500 for cost of bail bonds (including bonds for related traffic law violations) required because of an "accident" we cover. We do not have to furnish these bonds. (4) All reasonable expenses incurred by the "Insured" at our request, including actual loss of earning upto$500 a day -because of time off from work Includes copyrighted material of Insurance Services Offices, Inc. with Its permission GECA 701 (01107) Page 1 of 3 INSURED COPY par3�p1ppg 8017554 NEUSXDMF3303 PGDMO60D J25881 GCAFPPN 00000485 Page 25 SECTION III -PHYSICAL DAMAGE COVERAGE A. COVERAGE The following is added: 5. Hired Auto Physical Damage a. Any "auto" you lease, hire, rent or borrow from someone other than your employees or partners or members of their household is a covered "auto" for each of your physical damage coverages. b. The most we will pay for "loss" in any one "accident" is the smallest of: (1) $50,000 (2) The actual cash value of the damaged or stolen property as of the time of the "loss"; or (3) The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality. If you are liable for the "accident', we will also pay up to $500 per "accident" for the actual loss of use to the owner of the covered "auto". c. Our obligation to pay for, repair, return or replace damaged or stolen property will be reduced by an amount that is equal to the amount of the largest deductible shown for any owned "auto" for that coverage. However, any Comprehensive Coverage deductible shown in the Declarations I does not apply to "loss" caused by fire or lightning. d. For this coverage, the insurance provided is primary for any covered "auto" you hire without a driver and excess over any other collectible insurance for any covered "auto" that you hire with a driver. 6. Rental Reimbursement Coverage We will pay up to $75 per day for up to 30 days, for rental reimbursement expenses incurred by you for the rental of an "auto" because of "loss" to a covered "auto". Rental Reimbursement will be based on the rental of a comparable vehicle, which in many cases may be substantially less than $75 per day, and will only be allowed for a period of time it should take to repair or replace the vehicle with reasonable speed and similar quality, up to a maximum of 30 days. We will also pay up to $500 for reasonable and necessary expenses incurred by you to remove and replace your materials and equipment from the covered "auto". If "loss" results from the total theft of a covered "auto" of the private passenger type, we will pay under this coverage only that amount of your rental reimbursement expenses which is not already provided under paragraph 4. Coverage Extension. i 7. Lease Gap Coverage i If a long-term leased "auto" is a covered "auto" and the lessor is named as an Additional Insured - Lessor, In the event of a total loss, we will pay your additional regal obligation to the lessor for any difference between the actual cash value of the "auto" at the time of the loss and the "outstanding balance" of the lease. "Outstanding balance" means the amount you owe on the lease at the time of loss less any amounts representing taxes; overdue payments; penalties, interest or charges resulting from overdue payments; additional mileage charges; excess wear and tear charges; and lease termination fees. B. EXCLUSIONS - -The following is added to-Paragraph-3- The exclusion for "loss" caused by or resulting from mechanical or electrical breakdown does not apply to the accidental discharge of an airbag. Includes copyrighted material of Insurance Services Offices, Inc. with its permission GECA 701 (01107) Page 2 of 3 03/31/2008 8017554 NEUSXDM/113M INSURED COPY PGDM060D J25981 GCAFPPN 000OD466 Page 26 Paragraph 4 is replaced with the following: 4. We will not pay for "loss" to any of the following: a. Tapes, records, disks or other similar audio, visual or data electronic devices designed for use with audio, visual or data electronic equipment. b. Equipment designed or used for the detection or location of radar. c. Any electronic equipment that receives or transmits audio, visual or data signals. Exclusion 4.c does not apply to: (1) Electronic equipment that receives or transmits audio, visual or data signals, whether or not designed solely for the reproduction of sound, if the equipment is permanently installed in the covered "auto" at the time of the "loss" and such equipment is designed to be solely operated by use of the power from the "auto's" electrical system, in or upon the covered "auto"; or (2) Any other electronic equipment that is: (a) Necessary for the normal operation of the covered "auto" or the monitoring of the covered .1auto's"operating system; or (b) An integral part of the same unit housing any sound reproducing equipment described in (1) above and permanently installed in the opening of the dash or console of the covered "auto" normally used by the manufacturer for installation of a radio. D. DEDUCTIBLE The following is added: No deductible applies to glass damage If the glass is repaired rather than replaced. SECTION IV. BUSINESS AUTO CONDITIONS A. LOSS CONDITIONS Item 2.a. and b. are replaced with: 2. Duties In The Event of Accident, Claim, Suit, or Loss a. You must promptly notify us. Your duty to promptly notify us is effective when any of your executive officers, partners, members, or legal representatives is aware of the accident, claim, "suit", or loss. Knowledge of an accident, claim, "suit", or loss, by other employee(s) does not imply you also have such knowledge. b. To the extent possible, notice to us should include: (1) How, when and where the accident or loss took place; (2) The names and addresses of any injured persons and witnesses; and (3) The nature and location of any injury or damage arising out of the accident or loss. The following is added to 5. We waive any right of recovery we may have against any additional insured under Coverage A_ 1. Who Is An Insured g., but only as respects loss arising out of the operation, maintenance or use of a covered "auto" pursuant to the provisions of the "insured contract", written agreement, or permit. B. GENERAL CONDITIONS 9. is added 9. UNINTENTIONAL FAILURE TO DISCLOSE HAZARDS Your unintentional failure to disclose any hazards_ existing_ at the effective date of your policy will not prejudice the coverage afforded. However, we have the right to collect additional premium for any such hazard. COMMON POLICY CONDITIONS 2.b. is replaced by the following: b. 60 days before the effective date of cancellation if we cancel for any other reason. Includes copyrighted material of Insurance Services Offices, Inc. with its permission GECA 701 (01/07) Page 3 of 3 03/31/2088 OM7564 NEUSXDMM303 INSURED COPY PODMO80D J25981 GOAFPPN 000OD467 Page 27 CERTHOLDER COPY STATE E P.O. BOX 420807, SAN FRANCISCO,CA 94142-0807 COMPENSATION INSURANCE FUND CERTIFICATE OF WORKERS' COMPENSATION INSURANCE ISSUE DATE: 09-16-2008 GROUP: POLICY NUMBER: 1723760-2008 CERTIFICATE ID: 70 CERTIFICATE EXPIRES: 05-17-2009 05-17-2008/05-17-2009 CITY OF HUNTINGTON BEACH NE JUSTIN WESSELS 2000 MAIN ST HUNTINGTON BEACH CA 92648-2702 This is to certify that we have issued a valid Workers' Compensation insurance policy in a form approved by the California Insurance Commissioner to the employer named below for the policy period indicated. This policy is not subject to cancellation by the Fund except upon 30 days advance written notice to the employer.. We will also give you 30 days advance notice should this policy be cancelled prior to its normal expiration. This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policy listed herein. Notwithstanding any requirement, term or condition of any contract or other document with respect to which this certificate of insurance may be issued or to which it may pertain, the insurance afforded by the policy described herein is subject to all the terms, exclusions, and conditions, of such policy. THORIZED REPRESENTATI PRESIDENT EMPLOYER'S LIABILITY LIMIT INCLUDING DEFENSE COSTS: $1.000,000 PER OCCURRENCE. ENDORSEMENT #1600 - ALICIA SUNDSTROM PRES,SEC,TRES - EXCLUDED. I ENDORSEMENT #1901 - ALICIA SUNDSTROM - EXCLUDED. ENDORSEMENT #2085 ENTITLED CERTIFICATE HOLDERS' NOTICE EFFECTIVE 05-17-2006 IS ATTACHED TO AND FORMS A PART OF THIS POLICY. EMPLOYER FINANCIAL CREDIT NETWORK INC AND/OR CUSTOMER CARE NETWORK LLC PO BOX 3084 VISALIA CA 93278 EV.2-051 APPRO� rAS To FORM McGRATH, City AttOmeY (B19,NEI PRINTED : 09-16-2008 ME CITY OF HUNTINGTON BEACH Service Agreements Purchasing Certification 1. Date: 10/6/08 2. Department: City Treasurer 3. Requested By: Shari L. Freidenrich 4. Name of Consultant: Financial Credit Network, Inc. 5. Amount of Contract: $Contractor is paid from collections according to Exhibit "B". 6. Are sufficient funds available to fund this contract? Yes ® No ❑ 7. Company Number and object code where funds are budgeted: Fees are offset against collections. 8. Is this contract less than $50,000? Yes ® No ❑ 9. Does this contract fall within $50,000 and $100,000? Yes ❑ No 10. Is this contract over $100,000? Yes ❑ No (Note: Contracts requiring City Council approval need to be signed by the Mayor and City Clerk. Make sure the appropriate signature page is attached to contract.) 11. Were formal written proposals requested from at least three available qualified firms? Yes ® No ❑ If no, explain: 12. Attach list of vendors from whom proposals were requested (include name of company, address, contact person, and telephone). 13. Attach proposed scope of work. attached 14. Attach proposed payment schedule. attached Department Head Signature RIC ARD r Central Services Division COLLECTION AGENCY SERVICES REQUEST FOR PROPOSAL PROPOSALS RECEIVED J.J. Mac Intyre Co. Inc. Attn: Kaselle Crislip 1801 California Avenue Corona, CA 92881 951-898-4310 AWA Collections Attn: Harley Marchbank 1045 W. Katella Avenue 230 Orange, CA 92867-3562 714-771-3690 Vengroff, Williams & Associates, Inc. Attn: Matt Muramoto 7441 Lincoln Way Garden Grove, CA 92841 714-889-6216 J&L Collections Services, Inc. Attn: Aimee Arata 651 North Cherokee Lane, Ste B-2 Lodi, CA 95240 1-800-481-6006 American Municipal Services, LTD Attn: Daniel Hafen 3740 North Josey Lane, Ste 225 Carrollton, TX 75007 1-972-394-7200 Credit Bureau of Stockton dba CB Merchant Services Attn: Ana Molina P. O. BOX 209 Stockton, CA 95201 209-944-9001 Sequoia Concepts, Inc. dba Sequoia Financial Services Attn: King Bechtel 500 North Brand Boulevard, Ste 1200 Glendale, CA 91203 818-409-6000 Transworld Systems, Inc. Attn: Gerhi Richardson 5880 Commerce Blvd. Financial Credit Network, Inc. Attn: Alicia Sunstrom-Park P.O. Box 3084 Visalia, CA 93277 800-540-9011 Municipal Services Bureau Attn: Bruce Cummings 6505 Airport Blvd. Ste 100 Austin, TX 78752 512-323-4321 Caine & Weiner Co., Inc. Attn: Steve Simon, VP Operation Services 21210 Erwin Street Woodland Hills, CA 91367 Collection Agency List - as of July 11, 2007 J.J. Macintyre Company 1801 California Ave. Corona, CA 92881 (800)621-9859 Data Line Credit Corporation (Data Line Collection Agency on old list) 18652 Florida Street, Suite 105 Huntington Beach, CA 92648 (714)841-5151 Transworld Systems Inc. 2235 Mercury Way, Suite 375 Santa Rosa, CA 95407 (888)446-4733 Valley Creditors Service (Automated Recovery Systems on old list) 79689 Country Club Drive, Suite 203 Bermuda Dunes, CA 92201 (800)248-6395 United Compucred Collections Inc. 4190 Harrison Ave Cincinnati, OH 45211 (513)481-5028 AWA Collections P.O. Box 6605 Orange, CA 92863 (800)772-2550 x114 Sandy Limacher Vice President Client Services Caine & Weiner 21210 Erwin Street Woodland Hills, Ca 91367 949-458-5705 Direct Line 949-458-5706 Fax 818-612-6746 Cell www.caine-weiner.com Mark Vengroff, President Vengroff, Williams & Assoc, Inc. 210 Main Street #250 Huntington Beach, CA 92648 714-374-3600 X-119 RFP WAS ALSO POSTED ON THE CITY WEBSITE