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Financial Credit Network Service Agreement - 2012-02-01
Name of Contractor: Financial Credit Network Service Agreement Purpose of Contract: For Example: Audit Services or Water Quality Testing Huntington Lake —Huntington Central Park Collection and Credit Reporting Services Amount of Contract: Funded from percentage of dollars collected Copy of contract distributed to: The original insurance certificate/waiver distributed ❑ Initiating Dept. ❑ to Risk Management Finance Dept. ❑ ORIGINAL bonds sent to Treasurer ❑ Date: ZZ 2_,.— Na xte lion City Attorney's Office G:AttyMisc/Contract Forms/City Clerk Transmittal SERVICE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND FINANCIAL CREDIT NETWORK, INC. FOR COLLECTIONAND CREDIT REPORTING 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 "City," and Financial Credit Network, Inc., a corporation hereinafter referred to as "Contractor." Recitals A. The City desires to retain a Contractor having special skill and knowledge in the field of collection of delinquent account receivables and reporting to credit agencies. B. Contractor represents that Contractor is able and willing to provide such services to the City. C. In undertaking the performance of this Agreement, Contractor represents that it is knowledgeable in its field and that any services performed by Contractor under this Agreement will be performed in compliance with such standards as may reasonably be expected from a comparable company or firm in the field. Contractor has been selected to perform these services pursuant to Huntington Beach Municipal Code Chapter 3.02, 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 Kris Davisson who shall represent it and be its sole contact and agent in all consultations with City during the performance of this Agreement. 2. City Staff Assistance City shall assign a staff coordinator to work directly with Contractor in the performance of this Agreement. 3. Compensation In consideration of the performance of these services described therein, CITY agrees to pay CONTRACTOR at the percentage rates specified in Exhibit `B", which is attached hereto and incorporated into this Agreement by reference. 11-3142/73669 1 4. Term 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") and terminate three (3) years unless terminated earlier in accordance with the provisions of this Agreement. All tasks specified in Exhibit "A" shall be completed no later than three (3) years years working days from the Commencement Date. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule and Term 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. 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. 6. 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. 7. 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, and consequential damage or liability of any kind or nature, however caused, including those resulting from death or injury to Contractor's employees and damage to Contractor's property, arising directly or indirectly out of the obligations or operations herein undertaken by Contractor, caused in whole or in part by any negligent act or omission of the Contractor, any subcontractors, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, including but not limited to concurrent active or passive negligence, except where caused by the active negligence, sole negligence, or willful misconduct of the 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 a limitation upon the amount of indemnification to be provided by Contractor. 11-3142/73669 2 8. Workers Compensation Insurance Pursuant to California Labor Code Section 1861, Contractor acknowledges awareness of Section 3700 et seq. of this Code, which requires every employer to be insured against liability for workers' compensation; Contractor covenants that it will comply with such provisions prior to commencing performance of the work hereunder. Contractor shall obtain and furnish to City workers' compensation and employer's liability insurance in an amount of not less than the State statutory limits. Contractor shall require all subcontractors to provide such workers' compensation and employer's liability insurance for all of the subcontractors' employees. Contractor shall furnish to City a certificate of waiver of subrogation under the terms of the workers' compensation and employer's liability insurance and Contractor shall similarly require all subcontractors to waive subrogation. 9. General Liability Insurance In addition to the workers' compensation and employer's liability insurance and Contractor's covenant to defend, hold harmless and indemnify City, Contractor shall obtain and furnish to City, a policy of general public liability insurance, including motor vehicle coverage covering the Project/Service. This policy shall indemnify Contractor, its officers, employees and agents while acting within the scope of their duties, against any and all claims arising out or in connection with the Project/Service, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of One Million Dollars ($1,000,000) per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than One Million Dollars ($1,000,000) for this Project/ Service. This policy shall name City, its officers, elected or appointed officials, employees, agents, and volunteers as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the Project/Service shall be deemed excess coverage and that Contractor's insurance shall be primary. Under no circumstances shall said above -mentioned insurance contain a self -insured retention, or a "deductible" or any other similar form of limitation on the required coverage. 10. Automobile 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 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. 11-3142/73669 3 11. 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 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. 12. 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 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. 13. Conflict of Interest Contractor covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 14. Termination This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Contractor shall be entitled to receive and the City shall pay Contractor compensation for all services performed by Contractor prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Contractor to deliver to the City all work product completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Contractor consents to the City's use thereof for such purposes as the City deems appropriate. 11-3142/73669 4 b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 15. Exclusivity and Amendment This Agreement represents the complete and exclusive statement between the City and Contractor, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Contractor. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Contractor or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 16. Assignment Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Contractor may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other Contractors retained by City. 17. 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 financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 18. Notices Any notices, certificates, 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: 11-3142/73669 5 To City: City of Huntington Beach Attn: Joyce Zacks 2000 Main Street Huntington Beach, CA 92648 19. Consent To Contractor: FINANCIAL CREDIT NETWORK 1300 W. Main Street Visalia, CA 93291 ATTN: Kris Davisson 800-540-9011 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. 20. Modification No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 21. 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. 22. 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. 23. 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 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. 1 1-3142/73669 6 24. 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. 25. Legal Services Subcontractiniz 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. 26. 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. 27. Discrimination Contractor shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. Contractor affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 28. Jurisdiction - Venue This Agreement and all questions relating to its validity, interpretation, performance, and enforcement shall be government and construed in accordance with the laws of the State of California. This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 29. Professional Licenses Contractor shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of 11-3142/73669 7 Huntington Beach and all other governmental agencies. Contractor shall notify the City immediately and in writing of her inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 30. 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 party shall not be entitled to recover its attorney's fees from the nonprevailing party. 31. Survival Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 32. Governing Law This Agreement shall be governed and construed in accordance with the laws of the State of California. 33. Signatories Each undersigned represents and warrants that its signature hereinbelow has the power, 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. 34. Entirety (a) 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 any representation, inducement, promise, agreement warranty, fact or circumstance not expressly set forth in this Agreement. (b) All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. 11-3142/73669 8 35. 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. CONTRACTOR FINANGkAL IT NET, INC. I:? print name ITS: (circle one) Chairma resident/ ice President By: print name ITS: (circle o)Q-Secreta hief Financial Officer/Asst. Secretary - Treasurer CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California , Ci INITIATED AND APPROVED: Director / Chief APPROVED AS TO FORM: L (`City Attorney b1c.0 IZuto` 11-3142/73669 9 EXHIBIT '►A►► A. STATEMENT OF WORK: CONTRACTOR shall assist the City of Huntington Beach 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 Director of Finance 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. Director of Finance 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 Director of Finance 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 Director of Finance 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 jmp/contracts group/ex. V]2/5/11 EXHIBIT ►.A►► as: Receipts, net accounts receivable, total accounts receivable, and collection percentage or changes, as requester[ by Director of Finance. . 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 Director of Finance. 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 Director of Finance, the Vendor shall remove an account notification from all affected bureaus and provide a copy of that notification to the Director of Finance. In accordance with the Fair Credit Reporting Act, the City requires that accounts be cancelled from each credit bureau upon request of the Director of Finance. 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. IVendor 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 jmp/contracts group/exA/12/5/11 EXHIBIT ►►A►► 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. 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 Director of Finance and appropriate City staff to discuss all services and discuss prior year's results, and Vendor may be asked to periodically provide training to Director of Finance 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 Director of Finance and designated staff shall be allowed access to debtor accounting information through an on-line terminal or the internet, such that the Director of Finance and staff 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. 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. .imp/contracts 2roup/exA/12/5/11 EXHIBIT "A" 16. 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 2roup/ex4/12/5/11 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. Compensation is based on the collection of revenue. CONTRACTOR shall be entitled to payments in accordance to the contingency fee schedule below: Description Contingency Fee Primary Placements 28% Legal Action on Primary Placements (if required & approved) 38% Secondary Placements 36% Legal Action on Secondary Placements (if required & approved) 38% 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. 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 gr0up/exB-I/12/5/11 ACOR®,., CERTIFICATE OF LIABILITY INSURANCE T DATE 04/04/2011) PRODUCER (559)436-0833 FAX (559)256-6590 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Arthur J. Gallagher & Co. Ins. Brokers of CA Inc. 45 East River Park Place West ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Suite 408 Fresno, CA 93720 INSURERS AFFORDING COVERAGE NAIC# INSURED Financial Credit Network, Inc. INSURERA: Golden Eagle Insurance Corp. 10836 P.O. Box 3084 INSURERS: Peerless Insurance Company Visalia, CA 93278 INSURER INSURER D. INSURER E' OVERAGES 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. INSRUDlYfl DO' TYPE OF INSURANCE POLICY NUMBER POLICY EDATEMFFECTIVE POLICY EXPIRATION LIMITS GENERAL LIABILITY CBP8018054 03/31/2011 03/31/2012 EACH OCCURRENCE $ 1,000,00 X COMMERCIAL GENERAL LIABILITY DAIdAGE TO RENTED $ 100,000 CLAIMS MADE OCCUR MED EXP (Arty one person! $ 10,000 A PERSONAL & ADV INJURY $ Exclude GENERAL AGGREGATE S 2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER PRODUCTS - COMP)OP AGO S 2,000,000 POLICY PROJECT LOC AUTOMOBILE LIABILITY ANY AUTO BA8017554 03/31/2011 03/31/2012 COMBINED SINGLE LIMIT (Ea accident) $ 1,000,000 B X X X ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS gg rr��77;� FF''��,, qq pp �/ AYt ,y r..Di STO 1-14 qq BODILY INJ URY (Per pawn) $ BODILY INJURY (Per accident) c PROPERTY DAMAGE (Per accident) $ �, , GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ -OTHER THAN EA ACC AUTO ONLY: AGO $ ANY AUTO ) $ EXCESSIUMBRELLA LIABILITY CU8017854 03/31/2011 03/31/2012 EACH OCCURRENCE S 3,000,000 OCCUR ❑ CLAIMS MADE AGGREGATE $ 3,000,000 $ A $ DEDUCTIBLE RETENTION $ WORKERS COMPENSATION AND TWO STATU- DTH- EMPLOYERS' LIABILITY ANYPROPRIETOR/PARTNER/EXECUTIVE OFFICER'MEMBER EXCLUDED' E.L EACHACCIDENT $ E L DISEASE - F1+ EP.IPLOYE $ If yes, describe under SPECIAL PROVISIONS below E L DISEASE- POLICY LIMIT DTHER DESCRIPTION OF OPERATIONS / LOCATIONS 1 VEHICLES f EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS e: Third Party Debt Collection for the City of Huntington Beach City of Huntington Beach, its officers, elected or appointed officials, employees, agents and volunteers are named addtional insured on General Liability per form # CG20100704 & Auto per form #GECA 701 (01/07) CERTIFICATE HOLDER CA E AT N 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, City of Huntington Beach BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY 2000 Main Street OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZE D REPRESENTATIVE Mi uel Palomares/MIGUEL �Lr Huntington Beach, CA 92648 ACORD 25 (2001l08) FAX: (714) 536-5212 ©ACORD CORPORATION 1988 POLICY NUMBER: CBP8018054 COMMERCIAL GENERAL LIABILITY CG 20 26 07 04 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Persons Or Organization(s) The City of Huntington Beach Its Officers, Elected or Appointed Officials, Employees, Agents and Volunteers Community Service Department 2000 Main Street Huntington Beach, CA 92648 Information required to complete this Schedule, if not shown above, will be shown in the Declarations. Section Il — Who Is An Insured is amended to in- clude as an additional insured the person(s) or organi- zation(s) shown in the Schedule, but only with respect to liability for "bodily injury', "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omis- sions of those acting on your behalf: A. In the performance of your ongoing operations; or B. In connection with your premises owned by or rented to you. CG 20 26 07 04 © ISO Properties, Inc., 2004 Page 1 of 1 11 FINAN-5 OP ID: KI '4�..—R® CERTIFICATE OF LIABILITY INSURANCE DAT11114DIYYYY) F11/14/11 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. 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). PRODUCER 559-733-1181 BUCKMAN MITCHELL, INC. P.O. BOX 629 500 North Santa Fe Street CONTACT NAME: Linda N. Loflin, CIC PHONE FAX A/c N Ext : 559-635-3518 A/c No): 559-750-5461 E-MAIL linda@bminc.com ADDRESS: VISALIA, CA 93279 Linda N. Loflin, CIC INSURERS AFFORDING COVERAGE NAIC # INSURER A: State Compensation Ins. Fund INSURED Financial Credit Network Alicia Sundstrom INSURER B : P.O. Box 3084 INSURER C : INSURER D : Visalia, CA 93278 INSURER E : INSURER F : COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT 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. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. IR LT LTR OF INSURANCE ADDLITYPE INSR SUB POLICY NUMBER MM POLICY 1Y`YYY MM/DD/YYYY LIMITS GENERAL LIABILITY EACH OCCURRENCE $ COMMERCIAL GENERAL LIABILITY DAMAGE TKEN] ED PREMISES Ea occurrence $ MED EXP (Any one person) $ CLAIMS-MADE1-1 OCCUR PERSONAL & ADV INJURY $ GENERAL AGGREGATE $ GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ $ POLICY PRO LOC AUTOMOBILE LIABILITY COM BINED SINGLE LIMIT Ea accident $ BODILY INJURY (Per person) $ ANY AUTO BODILY INJURY (Per accident) $ ALL OWNED SCHEDULED AUTOS AUTOS NON -OWNED HIREDAUTOS AUTOS PeOPERTYtDAMAGE $ UMBRELLA LIAB HCLAIMS-MADE OCCUR EACH OCCURRENCE $ AGGREGATE $ EXCESS LIAR DED I I RETENTION $ $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE Y OFFICER/MEMBER EXCLUDED? (Mandatory in NH) N / A 5622586 05/17/11 05/17/12 X WC STATU- OTH- TORY LIMITS ER E L. EACH ACCIDENT $ 1,000,000 E.L. DISEASE - EA EMPLOYEE $ 1,000,000 E.L DISEASE -POLICY LIMIT $ 1,000,000 If yes, describe under DESCRIPTION OF OPERATIONS below DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required) For Proof of Insurance Purposes Only Re: Third Party Debt Collection for the City of Huntington Beach A? . 'ED AS x Q s� 1 SE IY�Atiorm CERTIFICATE HOLDER UANUtzLLA I IUN 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, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED RREP�RESSEENT��IIA�TTIIVVEE it,V�IMK ©1988-2010 ACORD CORPORATION. All rights reserved. ACORD 25 (2010105) The ACORD name and logo are registered marks of ACORD CITY OF HUNTINGTON BEACH Professional Service Approval Form - -J PART 11 Date- 12/8/2011 Project Manager: Jim Slobojan Requested by Name if different from Project Manager: Jim Slobojan Department: Finance PARTS I & II OF THE PROFESSIONAL SERVICES CONTRACTS APPROVAL FORM MUST BE COMPLETED BY THE REQUESTING DEPARTMENT AND SIGNED FOR APPROVAL. PART I & H MUST BE FILED WITH ALL APPROVED CONTRACTS. 1) Name of consultant: Financial Credit Network, Inc. 2) Contract Number: FIN (Contract numbers are obtained through Finance Administration x 5630) 3) Amount of this contract: $ Funded from percentage of receivable dollars collected. 4) Is this contract less than $50,000? ® Yes ❑ No 5) Does this contract fall within $50,000 and $100,000? ❑ Yes ❑ No 6) 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 the contract.) 7) Were formal written proposals requested from at least three available qualified consultants? ® Yes ❑ No 8) Attach a list of consultants from whom proposals were requested (including a contact telephone number.) 9). Attach Exhibit A, which describes the proposed scope of work. 10) Attach Exhibit B, which describes the payment terms of the contract. Director of Finance (or designee) Signature Date CITY OF HUN-TINGTON BEACH ,. Professional Service Approval Form ecOli�lSyV�y'-.. PART-1 Date: 11/8/2011 Project Manager Name: Jim Slobojan Requested by Name if different from Project Manager: Jim Slobojan Department: Finance PARTS I OF THE PROFESSIONAL SERVICES CONTRACTS APPROVAL FORM MUST BE COMPLETED BY THE REQUESTING DEPARTMENT AND SIGNED BY THE CITY MANAGER, FOR APPROVAL, BEFORE PROCEEDING WITH THE SOLICITATION OR CONTRACT PROCESS. PART I MUST BE FILED WITH ALL APPROVED CONTRACTS. 1) Briefly provide the purpose for the agreement: A three year contract for collection agency and credit reporting services. 2) Estimated cost of the services being sought: $ contract funded by percentage of outstanding receivable dollars collected. 3) Are sufficient funds available to fund this contract? ® Yes ❑ No If no, please explain: 4) Is this contract generally described on the list of professional service contracts approved by the City Council? If the answer to this question is "No," the contract will require approval from the City Council.) ® Yes ❑ No 5) Amount, Business Unit (8 digits) and Object Code (5 digits) where funds are budgeted: 6) Check below how the services will be obtained: ❑ A Bid solicitation process in accordance to the MC 3.03.060 procedures will be conducted. ® MC 3.03.08(b) —Other Interagency Agreement procedure will be utilized. ❑ MC 3.03.08 — Contract Limits of $30,000 or less exempt procedure will be utilized. 1 W /,---� rtme ead ,Si n re ate biv&too Finance' nature Datel J?) ►) Deputy C� Manager's Signature Date APPROVEI�OiManager's ED ❑ Signature Date CIT-1-11" OF, MERA D to ".'twte "WU I'gi WN "k December 22, 2010 Kris Davisson 1300 W Main Street Visalia, CA 93291 Dear Kris Davisson: Enclosed is a duly executed duplicate original agreement, dated November 21, 2010, with the City of Merced for Collection of Unpaid & Delinquent Accounts Receivables. Sincerelv, V %%fir � � . �_ ,fit C, I a Loum-p"' Records Clerk (209) 385-6838 cc: Melanie Neely, Finance Teri Albrecht, Finance -7 V'V1 e'� C AGREEMENT FOR PROFESSIONAL SERVACCS THIS AGRFFMFNT is made and entered into this 21st day of-' December 2010, by and between the City of-Merce-d, a California Charter N/lunicipal Corporation, whose address of record is 678 West 18th Street, Merced, California 95340, (hereinafter referred to as "City") and Financial Credit Network, Inc., a California Corporation, whose address of -'record is 1300 West Main Street, Visalia, California 93291, (hereinafter referred to as "Consultant"). NXIIER.EAS, City is undertaking a project to collect on delinquent accounts receivables; and, WHEREAS, C'ollSUItant represents that it possesses the professional skills to provide collection services in connection with said project. NOW, TULREFORE, the parties hereto, in consideration of the mutt►al covenants hereinafter recited, hereby agree as follows: I . SCOPE OF SERVICES. 'f"he Consultant shall furnish the following services: Cons►pant shall provide the collection services described in Exhibit "A" attached hereto. No additional services shall be performed by Consultant unless approved in advance in writir►g by the City, stating the dollar value ol�the services, the method ofpayment, and any adjustment in contract time. All such se►•vices LUC to be coordinated with City and the results of the work shall be monitored by the Finance Officer or his designee. However, the means by which the work is accomplished shall be the sole responsibility of the Consultant. ?. TIME OF PERFORMANCE. All of the work outlined in the Scope of Services shall be completed in accordance with the Schedule outlined in IXhibit L 'B" attached hereto and incorporated herein by reference. By mutual agreement and written addendum to this Agrcenient, the City and the Consultant may change the requirements in said Schedule. 3. RESERVED. 4. COMPENSATION. Payment by the City to the Consultant for actual services rendered under this Agreement shall be made upon presentation of an `:'%SlI Crcdil Nchwik Rc Collection Scrciecs flue invoice detailing services performed under the Scope of Services, in accordance with the fee schedule. set firth in Exhibit "C" attached hereto and incorporated herein by reference. The Consultant agrees to provide all seryices required binder the Scope of Services in Exhibit "A" within the compensation amount set [firth in Ilxhibit "C". 5. METHOD OF PAYMLNT. Compensation to Consultant shall be paid by the City after submission by Consultant of an invoice delineating the services performed. 6. RECORDS. It is understood and agreed that all plans, studies, specifications, data magnetically or otherNvise recorded on Computer or computer diskettes, records, files, reports, etc., in possession of the Consultant relating to the matters covered by this Agreement shall be time property of tyre City, algid Consultant hereby agrees to deliver the same to the City upon termination of the Agreement. It is understood and agreed that the d0cull"ents and other matel•Hxds including but not limited to those set forth hereinabove, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable Iol- any future or other Use. 7. C.;ONY'il-IhANT'S BOOKS AND RECORDS. Consultant. shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or (.locuments evidencingg (�)r relating to charges for services or expenditures and disbursements charged to the City for a minimum of five (5) years, or for any longer period required by law, from tIje (late offinal payment to the Consultant to tills Agreement. Any records or documents required to be maintained shall be made available for inspection, audit and/or copying at any time during regular business hours, upon oral or written request of the City. 8. INDEPENDENT CONTRACTOR. It is expressly understood that Consultant is an independent contractor and that its employees shall not be employees of or have any contractual relationship Nvith the City. 'onsultant shall be responsible for the payment of all taxes, workers' compensation insurance and unemployment insurance. Should Consultant desire any insurance protection, the Consultant is to acgUire same at its expense. In the event Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of colnpetentjurisdiction or the California Public Employees Retirement System Ns IS I M1 J`I`,Atl(Irncp',;lgrcema�t;`Jln;muc'�!I 11PS�A-I iuouuaaI CtedIt 4eMolk J�: t,'IdlccIwil scrric,cs tlnr 0 0 (PERS) to be eligible for enrollment in PERS as an employee ofthe City. Consultant shall indemnify, protect, defend, and hold harmless the City for the payment of any employee and/or employer contributions for PERS benefits ora behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which rvoalld otherwise be the responsibility ol�City. 9. INDEMNITY. Consultant shall indemnify, protect, defend (with legal counsel selected by the City), save and hold City, its officers, employees, and r.agcn[s, harmless from any and all claims or causes of action 161 death or injury to persons, or damage to property resulting from intentional or negligent acts, errors, or omissions of Consultant or Consultant's officers, employees, volunteers, .and agents during performance of this Agreement, or from any violation of any federal, state, or municipal law or ordinance, to the extent caused, iai whole or in part, by the willful misconduct, negligent acts, or omissions of Consultant or its employees, subcontractors, or agents, or by the quality or character of Consultant's work, or resulting from the negligence of the City, its officers, employees, volunteers and agents, except for loss caused solely by the gross ncgligcnce of the Cit)'. It is understood that the duty of Consultant to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve C011SUltant from liability under this indemnification and hold harmless ch.ause. This indemnification and hold harmless clause shall survive the termination of this Agreement and shall apply to any- damages or claims lot- damages whether or not such insurance policies shall have been determined to apply. By execution of this Agreement, Consultant acknowledges and agrees to the provisions of this Section arld that it is a material element of consideration. 10. INSURANCE. During the term of this Agreement, Consultant shall maintain in full force and effect at its own cost and expense, the 10 lowing insurance coverage: a. Workers' Compensation Insurance. Full workers' compensation insurance shall be provided with a limit of at least One Hundred Thousand Dollars ($100,000) for any one person and as required by law, including F"inployer's Liability limits of�$1,000,000.00 per accident. -Che policy shall be endorsed to waive the 1115Urer'S SUbrogatlon rights against the City. N:'s H ARl? )"'Utnrnc ',' crincni,`,.I m incc 2l IU11'SA-I Juill cid1 0edIt Nrtttuik Re Collccit) n Services doc b. General Liability. (i) Consultant shall obtain and keep in full force and effect general liability coverage at least as broad as ISO commercial general liability coverage occurrence Form CG 0001. (i1) Consultant shall maintain limits of no less than One Million Dollars ($1,0001000) per occurrerIce for bodily injury, personal injury and property damage. (iii) The City, its officers, employees, volunteers and agents are to be named as additional insureds under the Policy, as respects liability arising ollt Of Work or operations performed by Or on behalf of the Consultant. (iv) The policy shall stipulate that this insurance Nvill operate as primary insurance for work performed by Constiltant and its sub -contractors, and that any other insurance or Set f insurance maintained by City or other named insureds shall be excess and non-contributory. (v) Consultant shall maintain its commercial general liability coveragg for three (3) years after completion of the work anr.l shall acid an additional insured endorsement form acceptable to the City naming the City of Merced, its ol"t-rcers, e nPloyees, agents and volunteers for each year thereafter for at least three (3) years after completion of the work. Copies ofthe annual renewal and additional insured endorsement form shall be sent to the City vvithin thirty (30) days ofthe Lrrrnual renewal. c. tAutol'rrobile ]rlsurar►ce. (i) Consultant shall obtain and keep in full force and effect all automobile policy of at least One Million Dollars ($1,000,000) per accident for bodily injury and property damage. file City, its oftieers, employees, volunteers and agents are to be named as additional insureds under the }policy, as respects automobiles owned, leased, hired or borrmu,ed by the C.'on5u1tant. �r.�SF141:ED`slltorncV,-ALramentsUYjjIancc''' 1i ItP.I -1-I ivancial (:1c(lIC k Re, (',)IIacIion Savi_•an.drc 4 9 (iii) The policy shall stipulate that this insurance will operate as primary insurance fir work performed by Consultant and its sub -contractors, and that any other insurance or sell' insurance maintained by City or other named insureds shall be excess and non-contributory. d. Professional Liability Insurance. Consultant shall carry professional liability insurance appropriate to Consultant's profession in the mininlurrl amc.aurrt of One Million Dollars ($1,000,000). Architects and engineers' covera�,,e is to be endorsed to include contractual liability. e. Qualifications of Insurer. The insurance shall be provided by an acceptable insurance provider, as determined by City, which satisfies all of the following minimum requirements: (i) An insurance carrier admitted to do business in California and maintaining an agent for service of process within this State-, and, (ii) An insurance carrier with a current A.M. Best Rating of A:VII or better (except for workers' compensation provided through the California State Compensation fund). f. Certificate of Insurance. Consultant shall complete and file with the City prior to engaging in any operation or activity set forth in this Agreement, certificates of insurance evidencing coverage as set forth above and which shall provide that rio cancellation or expiration by the insurance company will be mace during the term of this Agreement, without thirty (30) days written notice to City prior to the effective date of such cancellation --including cancellation for nonpayment of premium. In addition to any other remedies City may have, City reserves the ri_ht to withhold payment if Consultant's insurance policies are not current. 1 1. ASSIGNABILITY OF AGRF_,EMENT. It is understood and agreed that this Agreement contemplates personal performance by the Consultant anal is based upon a determination of its unique personal competence and experience and upon its specialized personal knowledge.. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the express written consent of the City. N`,ShI iwncc%:?0I0l,MA-I imaucial Ctcdit Nctrwtk IW,I i�I��s.�iuc 5 0 0 12. TERMINATION FOR CONVENIENCE OF CITE'. The City may ternmiate this Agreernent anv time by mailing a notice in writing to Consultant that the A(jeernent is terminated. Said Agreement shall then be deerr'red terminated, and no further xvork shall be performed by Consultant. If the Agreen"ient is so terminated, the Consultant shall be paid for that percentage of the phase of N ork actually completed, based on a fro rasa fortiori of the corrrpe►lsatiorr for said phase satisfactorily completed at the time the notice ofterrnination is received. 13. CONFORMANCE TO APPLICARLI" LAWS. Consultant shall comply with its standard ofcare regarding all applicable Federal, State, and municipal la VS. rtrlcr'; and ordinances. No discrin-Iination shall be inade by Consultant in the employment: oipersons to work under this contract because of race, color, national origin, ancestry, disability, sex or reli-ion of such person. Consultant hereby promises and agrees to comply vNith all of the provisions of the Federal Immigration and Nationality Act (8 U.S.C.A. 1 101 ct serf.), as amerrded, and in connection therewith, shall not e1111'r10v u11auth0rized allells cis defined therein. Should Consultant so employ such unauthorized aliens for the performance of work and/or services covered by this Agreement, and should any agency or irrstrun"rcntality ofthe federal or state govcrnrrrerrt, it►cludirr(l. the courts, impose sanctions against the City Im such arse Of unauthorized aliens, Consultant hereby agrees to, and shall, reimburse City for the cost of al I such sanctions imposed, together Nvith any and all costs, including attorneys' fees, incurred by the City in connection therewith. IZ1. WAIVE"R. 111 the event that either City or Conti►.►leant shall It any time or times waive any breach of this Agreement by the other, st►ch N aiver -,hall not constitute a waiver of any other Or sriceeedinL, breach of this Agreement, whether of the same or anv other covenant, condition or obligation. Waiver shall not be deemed effective until and unless signed by the NvaivingT 1�1trrty. 15, INCONSIS"11"NT OR CONFLICTING TERMS IN ACRE LMENT AND EXHIBITS. In the event ofany contradiction or inconsistem:v betNveen nine attached documents) or exhibit(s) incorporated by reference herein and the provisions of the Agreement itself`, the terms of the Agreement shall control. Anv exhibit that is attached and incorporated by reverence shall be limited to the purposes for which it is attached, as specified in this Agreerent. Any N II.AkI 1)%1A(IorneclAareemell ,'.. Fill: nce':,U1q.I'srA-Financial CIVdIt IXI\korh Ia collcnion ScrA•iccs dnc 6 11 IN WITNESS WHEREOF, the parties have caused this Agreement to be CXCCL]tcd on the date first above written. CITY OF MERCED A California Charter ML1111cipal Corporation BY;� City Manager ATTES'l-': JOHN M. BKAMBLE. CITY CLERK J,4 Assi" ant/Deptity City Clerk AI)PRO\71---D AS TO F�OIZM: City Attorney Date tl, I�;Wl , Al TIA t-ulv'- )&COLJNTDATA: 21 BY. Verified by Firiance'Officer 0 0"1 ru I - '512 -1 00 JI/ N M IARJ,])' Altorne.\ IWIPSA-1 inauclal Ocdit Nemoil, Re (,,,dlcciwn Smices,it)c (S 0 0 CONSULTANT FINANCIAL CREDIT NETWORK, INC., a California Corporation 13 Y: (Signature) Kris Davisson (Typed Name) Its: Vic:e President -- BY: (Signature) (Typed Name) Its: (Title) 'Faxpaver I.D. No. 48-1292262 ADDRESS: 1300 W. Matti Street Visalia, CA 9 32) () I TELEPHONE: (800) 540-9011 FAX: (888) 326-4329 E-MAIL: kl- isd@fcnetwork.com N: tS i [AR I � I XA Ilm -I lijincial Credit N,: I kk ni k Re Col Icct inn Sm ices. dnc Exhibit A Scope of Services The Contractor sha11 provide the professional services and dedicated personnel to perform the 1-011mving: ® Provide collection services on debts owed to the City on delirignent accounts receivables up to and including legal action. Provicle'acl:nowlecigement to the City within 7 days ofaccount pfaccment via the Sar11e method that the accounts NN'e►-e submitted. ® Make a rnimilluin of two Written or telephone contacts for each open account witliin 1, - give days of receipt of the account. ® Provide skip tracing on delinquent accounts. ® Noti t�!. Cite of paymem plan arrangements with customers. ® Provide City with access to the .Proposers database in order for the City to mor►itor accounts receivables and provide customer service. ® Maintain complete records of each account referred by the City, including all correspondence documentation, account records; transactions and a detailed log of all collection efforts. These records shall be retained for a minimun1 of four years after termination of collection action on each account. e Provide the City a montlily report on the status of each account including; account number, customer name, amcnuit received, date of payment, balance clue, adjustments, reason far adjustment including bankruptcy, and any action taken on the account. ® Advise the CitN ofany account that is paid in full or deemed uncollectible. If an account is deemed uncollectible, mlolillation regarding the determination must be provided to the. City. • Provide the City monthly financial summary reports by the I5"' ofthe lullowin" month includinc, total accounts receivable, total receipts, net accounts receivable, and collection percentage. ® Guarantee the cot, tidentiality, security and safety of all Liles aild documents, ® Exercise best ethical, prudent, lawful and professional efforts to secure collections on all accounts referred by the City. Collection activities shall comply with all federal, state and local laws. Exhibit A Scope of Services Continued • Process all cttstonrer payments in accordance with applicable Payment Card Industry (PCI) security requirements and have an theft prevention program it, place according to the fair and Accurz-ile Credit 'Transaction Act. • Deport all uncollectible accounts to the major credit bureaus after the acccuurt has been worked for at least 45 clays. Reporting must be clone in accordance with all federal, state and local laws. • Remove an accol.rnt from all hureaus and provide the City- notification upon request. • Contractor will not assign or subcontract ally portiotr oftlus agrectttent or claim pursuant to this contract, without the ��rritten consent of the City. • Notify [fie City of intent of legal action. • Collect and deposit payments from customer immediately and submit a check to the City for the a1110LInt collected by the 15"' of the fhlloNN"ing month. Compensation shall be contingent upon actual collection of debt. An invoice should be submitted showing the customer Account information, the amount collected and the Proposer's fee. This should reconcile to the monthly reports. The City will pay the commission based on the invoice. A separate invoice shoving accour�tt details and commission should be generated for payments received by the City. • Meet with City staff upon execution of the contract to discuss all goals of the relationship and the scope of services. The Proposer and City shall meet on a quarterly basis or as needed to discuss ongoing services. • Keep City abreast ofany new or changes to federal and state lati%r related to credit and collections. • Re lirllY responsible forrrii nnta.inilig accurate records ofall coriesponclenee, working papers, and other related records. These records shall be made available to the City as requested. • fie responsible for any and all costs incurred during collection efforts. i Exhibit 13 hitlle of Perf'ot malice I he tent, Agreeiiient is five years. The City, at its option, lnay extend the. A cl't' ilt with the sartle or more limited scope ofrequired services for uh to one. additional five-year terms. l 11 Exhibit C Compensation Compensation is based on collection of revenue. Account Placement'Type Primary Placements (if collected within first 30 days) Primary Placements (collected after 30days) Court Action on Primary Placements Secondary Placements Court Action on Secondaty Placements C'ontin�cnc T'ec 20`%o 33% 38% 38 `%, 40% October 15, 2010 To the Members of the Selection Committee: Financial Credit Network is pleased to submit this response to the City of Merced's request for proposal for collection and credit reporting services. Our proposal offers a pricing structure that will allow us to fully service your portfolio of unpaid fees and charges for but not limited to, animal control, airport fees, various permits, rents, business license, weed abatement, utilities, administrative citations, cliecks returned for non sufficient funds and other miscellaneous receivables. We know that there are many agencies in the marketplace; however, we believe the following strengths will illustrate our superiority: • Extensive Experience in Governmental Debt Collection • Interner-Based Web Portal Technology • Strategic Central California Location • Long Term Financial Stabiliry - Established 1954 • Complete Multi -Language Program • Competitive Rate Structure We encourage you to contact the enclosed references who will attest to our level of service and commitment. We have read and will comply with all of the terms and conditions of this RFP. I can be reached at (800) 540-9011 with any questions you may have. We look forward to working with the City of Merced. Sincerely, Kris Davisson Vice President Submitted by Financial Credit Network, Inc. Page I We pride ourselves in committing the time and resources to work through every detail to ensure the profitability of our program for both the City of Merced and ourselves. Our staff is trained to have a financial counseling approach to collections. Our office philosophy includes treating the consumer with dignity and working with the consumer to establish a mutually agreeable plan of repayment. We bring to the table the experience of having already worked through these details with our current governmental clients, which saves time when we bring a new client aboard. We feel there are several factors that differentiate us from our competitors. Most importantly, our vast experience providing excellent customer service to both our clients and their customers. We are very committed to applying the necessary resources to become the City of Merced's number one resource for collection services. Secondly, one of our primary focuses has been developing our bi-lingual collection services, through our Multi, Language Program. Through this program we are able to better communicate with our client's Hispanic ciistouier base which results in a higher liquidation and better overall customer satisfaction described in Attachment A. Additionally, we believe that our internet based web portal, FCNet"M, is the main technological feature that sets us apart from our competition. This portal can put all of the City's accounts that have been assigned to collection at the fingertips of your staff. This ability can have a Dirge impact on the productivity and efficiency of managing your portfolio. The individuals authorized to execute contracts on belialf of Financial Credit Nem,ork are Alicia Sundstrom, President/Owner (alicia@faretwork.com), and Kris Davisson, Vice President (krisd n fcnetwork.com). Both work from the corporate office in Visalia and can be reached at (800) 540-9011. On the following pages you will find that there is no magic to the collectio❑ process. What our firm has to offer is an extremely high degree of professionalism, over 56 years of experience in the collection industry, a proven track record, a commitment to staying technologically advanced and an incredible amount of flexibility. These qualities enable us to design and customize a collection program to meet the City's needs. Finally, it is part of our corporate culture to do things right the first time. We are known for our attention to detail when it comes to account handling as well as the required monthly reporting. By providing accurate and timely reporting, we allow your staff to focus on internal functions rather than spend their time managing the relationship with our office. Pinancial Credit Network was founded in 1954 to service the collection needs of clients throughout the State of California. Since its inception, we have grown from a "mom and pop shop" to a nationally recognized agency, serving lumdreds of clients throughout the United States. We are known throughout the industry as an agency that works diligently to treat people with dignity and respect. FCN has two locations to serve our clients and customers. Our corporate office is located at 1300 W. Main Street, Visalia, 93291. This facility, an 11,000 square foot home built in the early 1900's has been fully restored to its original splendor. It is an historical mansion providing a❑ unprecedented work environment within the collection industry. This location also serves as a payment center. Our Santa Barbara location, 1610 State Street, Santa Barbara, 93101 services the needs of our coastal clients and customers. The City's project would be managed by our Visalia office. For our client's convenience, we provide a toll free number (800) 540-9011. The days and hours of Submitted by Financial Credit Network, Inc. Page 2 operation for our Customer Service are as follows: Monday —Thursday: 8 a.m. until 7 p.m.; Friday: 8 a.m. until 6 p.m.; Selected Saturdays: 8 a.m. until 12 noon. Our customer service is located at our corporate office - 1300 W. Main St., Visalia, CA 93291. In 1984 Alicia Sandstrom was hired as a salesperson for the organization and quickly became an essential part of the team's success. After working her way inside, she spearheaded the conversion to a new computer system and new collections software. Also during this time, she learned all facets of the organization, from collections to accounts receivable and many of FCN's integral support functions. Alicia was promoted to Vice President in 1990 where she welcomed a new owner, Paul Flannery, in 1995. Her tenure, love and passion for the organization made her a natural candidate to own the company and in January 2003, Alicia purchased FCN from Paul During her years of ownership, Alicia has provided a positive environment which has fostered in atmosphere for creativity and continual personal growth to further solidify the tearer. This positive direction has given the staff a vision for creating a new industry image focused on exceptional customer experience. As mentioned in the Proposal Summary, both Alicia Sandstrom, President/Owner and Kris Davisson, Vice President (lcrisd(n)fcnetworlc.com are the individuals authorized to execute contracts on behalf of Financial Credit Network. They can both be reached at (800) 540-9011, 1300 W. Main St., Visalia, CA 93291. FCN currently employs 50 employees including 26 collectors, four lead collectors and two collection supervisors. Financial Credit Network prides itself on maintaining quality personnel by providing an excellent compensation and benefit package to our employees. In addition, the advanced technological resources we utilize enable our staff to work in an environment that is not only productive, but also conducive to employee satisfaction. Our average tenure at FCN is presently 5 years, which is above normal for an agency our size. Financial Credit Network is able to meet the needs of the contract with its current staff of experienced collectors. As requested, we have attached a copy of our organizational chart, see Attachment B. FCN has successfully implemented collection programs for city, county and state government agencies in California, as well as private sector firms in the healthcare, utility, telecommunications, commercial and retail throughout its 56 year history. Good reputations are built on strong work ethics and strict compliance to all state and federal regulations. Throughout the years our agency has been actively involved in our trade associations, American Collectors Association and California Association of Collectors, which provide excellent FDCPA compliance training. We are a Supplier Clearinghouse Certified Women Owned Business as well. Financial Credit Network is also a member of the following organizations: • California Municipal Revenue and Tax Association • Commercial Law League of America • American Association of Healthcare Administrative Management • Visalia Chamber of Commerce • Tulare Kings Hispanic Chamber of Commerce • Santa Barbara Chamber of Commerce • Ventura Chamber of Commerce • National Association of Women Business Owners One of our strengths has been positioning ourselves for growth. Our $650,000 dollar line of credit, combined with our internally generated cash flow allows us to grow very rapidly. Our growth from an original staff of 2 to 50 with an assignment base of over 160 million dollars a year points to a financially secure picture. Submitted by Financial Credit Network, Inc Page 3 e-t.�rrr'zs __ _ 21' ri—uion Financial Credit Network has had one case in the past five (5) years which was finalized. Krohn and Moss is a law firm front the Los Angeles area. This law firm files 15% of all FDCPA consumer violation lawsuits nationally so it is their practice to file the suits with the courts without any effort to contact the collection agencies to reach a solution beforehand. In this case the suit was filed claiming harassment due to calls to a specific phone number with such frequency as to harass and annoy the consumer. We found no record of the phone number ever being called by Financial Credit Network at all. We do have an account for this consumer, but the phone number does not match the one in question. This account was carefully reviewed by our owner, Training and Compliance Officer and collection supervisors to be sure that the account had been worked appropriately. At no time had the consumer requested calls stop and, in fact, he had promised payment. Our counsel filed an answer and explained this case was not based on fact but rather than proceed to a jury trial it would he a better choice to reach an agreement with the consumer. Although we were not guilty of any of the allegations in the complaint; this case was settled for a nominal amount as it would have cost considerably more to defend ourselves in court. Financial Credit Network has more than 350 clients. We are proud to include 39 separate city and county accounts in our current client roster, many of wlioni have governmental portfolios. F CN has successfully implemented collection programs for city, county and state govermnent agencies in California. Our governmental experience also includes being one of the first agencies awarded a contract with the General Services Administration of the Federal Government in Washington D.C. Additionally, we have worked for over fifty years in an environment regulated by the Public Utilities Commission through our association with Southern California Gas Company, Sempra Energy and the California Water Service. We are accustomed to the confidential nature of the data we receive and have many different ways that this is addressed. Leadership is a critical element in any organization. Financial Credit Network has been fortunate to retain highly motivated and talented individuals who embody the vision and mission of our organization. Our Transition Team for the City of Merced's portfolio consists of: • Andrea Miller, Account Executive; will physically service the City of Merced providing hands-on support whenever needed. • Kris Davisson, Vice President; will provide oversight of project including coordination of implementation plan. • Alicia Sundstrom, Owner/President, will provide historical perspective in overseeing implementation and on -going servicing of the City's portfolio. • I -are Carson, Technical Support Manager; will provide oversight of data processes including transmission of placements and monthly required reporting. • Susan Morado, Collection Manager; will provide daily oversight of collection strategies and management of Collection Team. • Robin Garza, Customer Care Specialist; will provide single point of contact for the City's questions. Our Transition Team currently works with all of our municipal agencies. Please see Attachment C for the biographies and resumes of our key personnel. As previously mentioned, FCN currently employs 26 collectors, four lead collectors and two collection supervisors. Financial Credit Network maintains a low manager to subordinate ratio, which enables us to closely monitor the productivity of our employees. Our supervisors overseeing the collection staff utilize computer -generated reports that detail the work efforts of the collector. These reports include collector activity, collector productivity, monthly Submitted by Financial Credit Network, Iris Page 4 planning calendars and telephone call detail. In addition, our supervisors are situated close to their staff, which allows theist to monitor their conversations with consumers and observe their performance. Each supervisor is also issued a headset device that allows the monitoring of a collection call while the collector is on the call. The supervisor has the option to participate in the call. They are encouraged to utilize this tool both during the initial training phase and on an ongoing basis. By utilizing these tools, supervisors are able to administer positive or constructive.reinforcenient based upon each individual collector's performance. i D, 11 a , u> Accounts can be assigned to Financial Credit Network in a variety of ways: 1) FCNer''M (web portal); 2) electronic file; 3) manual entry utilizing our Data Entry Department; and can be customized to meet our clients needs. d'r 1i �',-'E� 4 = . �,.� :f E��r��t i ._I; rrrrt<<.= All accounts are worked according to the work standards issued by our clients. During the first 48-72 hours accounts are input into CUBS (our collection system) and are cross- referenced against our database of over 2,000,000 accounts for matching name, social security niunber, driver's license number and account number. Next, accounts are batched to multiple account enrichment services such as NCOA Source, Contact Locator, CBClnnovis, SkipTrace hrfo, TMark and/or a property ownership database. All of this information is appended to the account before the account is viewed by the collector. At this time, the accounts that qualify for our Multi -Language Program described in Attachment A, are split off and assigned to collectors who are bilingual. For accounts that qualify, each is batched monthly to Trans Union for an abbreviated credit report which includes updated address and employment information as well as newly opened trade lines and any lieu information. We can also utilize frill credit reports to establish the consumer's ability to pay. Our flowchart, Attachment D, illustrates the workflow from initial placement to the eventual resolution/closing of the account. All of our collectors are linked to our CTCenter predictive dialer that has written a program that forces accounts to meet the work standards defined by our clientele. When a consumer is contacted, it is the collector's job to determine the consumer's ability to pay. Once the consumer and collector have mutually agreed upon a payment arrangement, the promise information is entered in specific areas of the collector's account screen for follow-up. The various arrangements tracked are promises for "Payment in Full", "Post-dated Checks" and "Partial Payment Plans". Each is unique in that reminder letters and follow -tip calls may be necessary. If any of these arrangements default, our computer, with the generation of a "Broken Promise" listing, immediately alerts the collector. All information provided by the client, FCN, and the other enrichment sources mentioned in the skip tracing section of this RFP is Exhausted before the account is closed. anti t.OWE A focused strategy is one of the most important factors in the success of a collection program. FCN recently made the switch from an individual approach to a team or "pooled" environment. The key motivation for creating this new approach was to have our most experienced collectors talking to consumers. We have created a three-tier system which includes an Inbound Team (13 collectors), a "Split" Team (8 collectors) and a Dialer Team (5 collectors). Each team plays in integral role in making this plan work smoothly. Each of these collectors is utilized to service the City of Merced's portfolio. The Inbound Team is comprised of our most experienced collectors. These individuals have proven themselves to be top negotiators. This team is responsible for handling all incoming calls according to the daily strategy. They Submitted by Financial Credit Nerwork, Inc. Page 5 also work priority accounts (promises, broken payment plans, etc.) and activate new business by placing outbound calls manually. The Split Tearer is comprised of collectors that will have a "split" role. Their daily responsibilities are determined by the daily strategy. These collectors take on more specialized duties including identifying suits, working payment reports, skip tracing, etc. They are also responsible for assisting either the Dialer or Inbound team when necessary. The Dialer Team is comprised of our newer collectors who have not yet gained the experience of handling the inbound call. These collectors work on the dialer from 9-6 on a daily basis. They are responsible for leaving messages, removing disconnected numbers, activating specified new work and backlog accounts, securing consumer's location information from third parties and generating call backs. When a right party is reached, this team transfers the consumer to a member of the Inbound or Split Teams. Our daily strategy is developed each morning and is based on a number of factors including the amount of new work, the amount of "today's" accounts (those accounts timed to he worked today) and the amount of backlogged accounts. Once these volumes have been determined, work lists are created for each team. The Inbound Team receives fewer, smaller WIP (work in program) lists of accounts, to be dialed manually, with accounts with the highest probability of payment, while the Dialer Team is assigned a much higher volume of WIP lists, to be dialed through automation, that have a lower probability of payment. The dialer lists are built three times daily at 9:00 a.m., 2:00 p.m. and 4:30 p.m. to cover morning, afternoon and evening calls. The Split Team can be assigned to assist either team or receives small specialized WIP lists. We have found that this new strategy has given its the flexibility to adapt quickly to changes in clients requests, staffing levels and call volumes. tel arrRCi,t-'f Consumers receive several different options with which to pay their delinquent billing: • In Person By Mail VISA/MasterCard/American Express/Debit Card: Fach FCN agent has web based access to our web portal "FCNet". Through FCNet, our collectors can receive real time approval for credit card transactions. AutoPay/Posted-Dated Checks: AutoPay is a system through which our agency can print a consumer's check for deposit that very day. It virtually elitnivates the "check's in the mail" syndrome. The system includes a National Bank database that micro -encodes the check for bank identification. This system not only generates a single check to pay au account in full, it can also be used for monthly payment arrangements. It has the capability of printing a check each month on a pre -established due date. • MoneyGram: This service, which is a division of American Express, also allows a consumer to pay cash at any MoneyGram location and provide our numeric account code which is then transmitted to a printer in our office and deposited the same day. • Website: We inaintai❑ a website with which our consumers can make payments over the internet using Visa, Mastercard or American Express. There is no additional cost to the City of Merced for any of these payment methods. Outlined below is our investment in computer technology, which enables us to stand out in the collection industry, increase our recovery rates and therefore, increase your bottom line. We have implemented FCNetTM, a web portal for use by our clientele. This portal allows our clientele, by utilizing the Internet, to view account activity, manually add accounts to our system, create custom reports, link to skip tracing services, post direct payments, cancel accounts, update demographics and receive all of their monthly reports via PDF files. It also allows consumers to pay their account in full, suggest a repayment plan, or notify our office of a dispute or bankruptcy. Submitted by Financial Credit Network, Inc. Page 6 Our software is provided by Columbia Ultimate Business Systems, Inc. (CUBS). This system has been designed for the collection industry and provides data easily accessed by our entire staff. The CUBS System is highly rated in the collection industry, providing an outstanding data source in a user friendly environment. This software is currently running on an IBM pSeries system. It is equipped with RAID, multiple Tape -backup systems and 512 ports. FCN currently uses 126 of these ports. Aleih i <_- ,�,�,,bd"++"i- =: We currently accept assignments, payments and cancellations from various clients via hard copy, FCNetTM andan internet connection utilizing file transfer protocol or secure HTTP. We utilize both the CUBS Custom Program Department and independent third -parry programmers for customized programming. The electronic programs that we currently have in place vary widely in scope. Each has been designed based upon the client's needs and unique situation. Data security is a priority for Financial Credit Network. Our web portal allows for a SSL data encrypted means of transmitting the information to us. We also maintain an FTP server which is dedicated to clients who wish to transmit files to our office electronically. FCN supports PGP encryption for added security. FCN has developed an extensive security policy and continually refines it with the advent of new technologies/threats. The physical security of our information includes training our staff to maintain a secure work area by not placing sensitive information on desks and by putting away information at the end day. Visitors who enter our facility are required to check in at our reception desk and obtain a visitor's pass. All doors, except our main entrance, are controlled by keypad entrance for additional security. Our data is archived each night and stored off site in a safe deposit box at Visalia Community Bank. A duplicate archive tape is created each week and forwarded to our alternate site for storage in the event of the need to implement our business resumption plan. Our computer vendor, CUBS, has agreed to provide "Red Alert" customer service within hours of a disaster. Our data would be loaded, running and tested on the alternate system within 72 hours of the disaster. - NWe were among the first agencies in California to install a predictive dialer. Since then we have made the transition to a new generation of dialing equipment. We purchased CTCenter from hiformation Access Technologies which is currently equipped with 48 agent workstations and 6 Interactive Communication ports. CTCenter's Predictive Dialing capabilities include skills -based routing; passive agents; monitoring, coaching and conferencing; simultaneous predictive, power or preview dialing by agent; remote agent and system management; real-time pacing by agent and campaign; and inbound/outbound call blending. The CTCenter interactive communicarion module automatically makes or takes contacts by phone — during the day, after hours or on weekends — based on parameters set hosed upon our client's work standards. Asking for the right party by name and delivering customized messages, it does the work of multiple agents. During office hours, both inbound and outbound calls can be transferred to an agent. hTteractive Communication lets FCN continue to make contact after our staff has gone home. / ,' ,''X :__nd � -.E.crimJ.,h Our NEC 2400 PBX is currently being utilized at less than 35% of its potential capacity. It can be expanded to accommodate virtnally an unlimited number of incoming trunks and telephone ports. The PBX is equipped with an automated attendant and a voicemail system. This equipment has been converted to have both Spanish and English prompts. When the office is closed, all calls are handled by the auto attendant. The consumers are given the option to leave a voicemail message which is returned the following morning. Submitted by Financial Credit Nemork, Inc. Page 7 C criltec`t: We utilize these vendors who use web -based contact software that incorporates VOIP (voice over IP) technology. With these tools we are able to create calling campaigns that launch hundreds of simultaneous calls. If a right party is contacted the consumer has the ability to link back into our call center and speak directly to a collection agent. -� We have a call recording system that records all incoming and outgoing collection calls. These recordings are then used to enhance our collector training program and provide valuable feedback to our collection team members. This software also has a feature that captures screen shots enabling both our QA staff and supervisors to follow not only the verbal conversation, but also the keystrokes of our agents. C.ol, rtor f:1,1Lr We have implemented the use of Collector Talk as an additional training tool during our extensive training course for our collection staff. It identifies ways to apply the collector's style strengths or modify their style weaknesses in order to optimize their interaction with a consumer resulting in a greater likelihood of payment. -b _i-N3 Skip tracing is a vital aspect of any successful collection agency. Financial Credit Network has invested heavily in state-of-the-art technology and training to insure our competitive edge within the industry. Our own database cross- references millions of accounts we have collected. In addition, in our collection department, we receive online property information, credit bureau reports, National Change of Address (NCOA), phone overlays, nearbys, and multiples. Some of the tools we own or subscribe to are described below: �._e rcj- �..i i_€fWac"1 / oc.4tO;-, S_734C r7 E _ infiv These skiptracing tools provide the opportunity to locate consumers and allows for right party contact (including unique address and telephone numbers). We utilize these vendors through a "waterfall" approach. Each account that does not have a valid telephone number is skipped upon placement and then every 30 days for six times. Then, after an additional six months, the account is skipped one last rime to obtain any new available information. When a telephone number is not returned by one vendor, it is batched to the next vendor in the waterfall. =m—, f?rr,rd: r /iret+a,t-wred Credit Rejfor•r:.- If an account qualifies, an abbreviated report is automatically accessible, providing additional information to each collector. The program compares existing data to new data, such as address changes, employment, spousal information, mortgages, liens, collections, credit cards etc. This innovative program gives substantial, fast, accurate data, allowing us to expand our information base for a greater volume of accounts assigned. ( A,j. I1'11: Our NEC telephone switch is Caller ID compatible. Each incoming telephone call, as it is passed internally to a collection clesk, is passed with the number the caller is calling from. This appears on the display of the telephone set. The collector is able to capture and record this nuniber for future reference. ,l ,rt�i !,`!).* Merlin Information Services provides access to public record and other databases to look for assets, run background checks, or perform investigative work. Merlin's data center has a storage capacity of over 115 terabytes of data, and is capable of delivering over 10 million searches per day. The average response tinie is under two seconds for instant search results. Through Internet access, our collection staff is able to perform extensive skip tracing searches. In Attachment E you will find our licensing matrix which indicates our current status with each state. We are also affiliated with a network of collection agencies throughout the United States through our membership in the American Collectors Association. Submitted by Financial Credit Nem-ork, Inc. Page 8 We report all accounts assigned to our office over $50.00 to all three credit reporting agencies, Fxperian, Trans Union and Equifax, after the first 30 days of assignment. Our normal cycle for updating is monthly via FTP electronic file. The above credit repositories set the $50.00 account balance minimum, however the time frame in which an account is reported and which accounts are reported can be customized to meet the individual needs of each client. There is no charge to the City for this service. CIT S'TAFP w _ It is our goal to exceed every client's expectations. In order to achieve this goal, we develop strong relationships with our clients and their staff members and work diligently to create a team environment. Initially we will request a meeting to identify all of the City of Merced's needs and expectations. During this meeting, we work with the City to outline the responsibilities of each parry. This information will then be applied to our policies, collector system and web portal, meeting your specifications. Once all systems are set up, our office will be available as much as needed, as often as needed, to ensure a smooth and error free transition and ongoing relationship. During the implementation period, FCN will provide as much training as necessary to ensure a smooth transition. 1C- t Y IIt I1 The biggest factor that affects the liquidity of an account is the age at the time of assignment. We have included average ages below. The general rule is the newer the account the more collectable it is. Other factors include the availability and quality of demographic information provided. Our historical collection percentage for Utilities is 19.8%*; the average age at time of assignment is 147 days. The collection percentage for Miscellaneous Receivables is 15.3%*; the average age at time of assignment is 359 days. (*Historically, our legal and forwarding collection percentages are approximately 10%-12% higher.) .IHI - i10'-' i,i_1 SUv :`v To maintain exceptional customer service, FCN must hold our staff accountable to both our expectations, as well as those of our client. Financial Credit Network emphasizes and maintains quality assurance control systerns to assure the effective and efficient operation of our agency. Part of our corporate culture is the belief that it is less expensive to do things right the first time. The many specific quality control checks currently in place are a standard adjunct to any collection contract we handle. The effectiveness of any quality control program is contingent upon the agency's management and staff. Accordingly, several steps must be taken before quality control systems can become an effective and dependable reality. • Senior management must be dedicated to the highest quality possible, and must lead by example. • Agency personnel must be selected carefully. They must have personal standards conducive to the performance of quality work. • All personnel must be properly trained. They must be caught the necessary skills to do the job right, and the value of high quality work. • Working conditions Hurst reflect our corporate dedication to quality. • Because performing at the highest quality levels is more difficult than simply meeting minimum standards, everyone must be motivated properly. • People must be rewarded for good work. Raises, promotions, bonuses and recognition must all clearly support high levels of performance. Submitted by Financial Credit Nem-ork, Inc. Page 9 Financial Credit Network has practiced these principles since our inception, and we feel they are major factors supporting our superior level of customer service and quality assurance. Our Quality Assurance Program consists of three elements, side by side monitoring, blind monitoring and file reviews. Our telephone system is equipped with a feature that enables a supervisor to monitor a collector's telephone "real time". This feature is used extensively both during the initial and follow-up training phases. Our Quality Assurance Specialist's goal is to look for the positives in everyone's work efforts in addition to pointing out areas of opportunity for growth and coaching. With each quality review, feedback is given directly to the collector, supervisor and Collection Manager. The supervisor and collector then agree on a plan of action to improve or sustain performance. The Quality Assurance Specialist revisits past reviews before conducting further reviews to measure improvement and to point out differences since last reviews. To ensure the information is given in a timely manner, our QA Specialist provides the review within 24 hours of it being completed. We pursue legal action only if we are unsuccessful in obtaining a satisfactory repayment plan. Many of our clients have specific guidelines they wish us to follow. The collectors make recommendations for legal action, which are then reviewed by their immediate supervisor. Once approved, the recommendation is given final approval by a committee comprised of supervisors and our Legal Department. At this point, if required, an authorization form is generated and forwarded to our client for their approval. Once approved, the legal documents are prepared by our legal support staff and submitted to our attorney to be finalized. Once finalized, the documents are batched out to the appropriate entity for filing or service. Below are some of the factors that the collector is required to consider before submitting legal action for management approval. • To be certain we have the right consumer, the account must show matching personal data with credit reports obtained and client information. • Account notes must support the collectors exercising good judgment to file legal action. • Reasonable attempts to secure a satisfactory arrangement must be noted. • All disputes are resolved in order to make sure something hasn't been overlooked. • A 10 day legal Letter is sent giving the consumer 10 days to respond as a last opportunity to work out an arrangement with them. • After the consumer has been served legal (1ocuments, a consumer may call to set an arrangement. If so, our staff is prepared to set an arrangement without garnishing wages. Default judgment Will still be taken. • With property suits we continue to try and secure payment arrangements, even if we must accept small payment amounts. • We are never a hardship to our consumers, and therefore we do not post properties for sale. Our intent is to protect monies owed to our clients without humiliating our consumers. After a judgment has been filed, abstract recorded and garnishment started, a consumer may call our office and state the amount of money garnished (25% disposable earnings per individual served) is creating a hardship. The Legal Manager will consider modif),ing the leery to a reasonable amount, in order to accommodate constuner's needs if necessary. Our legal rate takes affect once we receive your signed authorization and the lawsuit is created. Submitted by Financial Credit Nem-ork, Inc. Page 10 CIAENI F.Dt7i=__TlON; FCN feels very strongly about client education. We have the finest on -going training and education opportunities for our clients available within the industry. Our effort to help our clients understand our business and its procedures is the key to successful collections. Our clients are offered training to learn to prepare accounts for assignment and on -going conimunications with their clients and our agency. Our goal is to relieve your office of the collection process once accounts are assigned. Only when proper procedures and communication methods are in place prior to assignment of accounts can we all do our jobs effectively. We offer both on -site and in-house client training, at the client's convenience. At your request, our Trainer, Virginia Lopez, will come to your place of business to facilitate education and training on the topic of your choice. Our clients need only to identify the topic and a program will be custom tailored to their specific needs. There is no charge to our clients for this service. We have also developed several in-depth seminars which we periodically offer, on a variety of topics pertinent to the industry, such as operating within the guidelines of the FDCPA (Fair Debt & Collections Practices Act), negotiation skills and bankruptcy guidelines. These seminars are conducted at central California locations, convenient to all of our clients within specific geographical locations. The cost to clients is minimal, but the information is invaluable. Please see Attachment F for a sample listing of seminars available. We provide a quarterly client newsletter that focuses on new legislation and other issues facing our client base. We can also provide monthly publications through ACA such as the Pulse and CredAlert. Once the implementation process is complete, you will be assigned a single point of contact. Your Customer Care Specialist, Robin, will be able to assist in the day to day issues that may occur. She will coordinate the efforts of our team to handle any situation that arises and will utilize her knowledge and expertise in the ongoing maintenance of your portfolio. We do feel very strongly about our method of providing our clients with a single point of contact. However, any member of our client services staff or Management Team is capable of handling most of the day to day contact. Additionally, Alicia Sundstrom is involved in every facer of the organization and will be available to discuss any matters with the City of Merced. L.IENT REP-DRTS We typically furnish a monthly report and remittances of collection made on all collection activities to the Client on or before the 15th day of each month. Payments made via personal check, credit card and Auto -pay check by phone will be held fora period of 15 days from the date posted to the consumer's account before they appear on the remittance report. At the Client's option upon reasonable notice to Agency, reports and remittances may be made on a weekly or bi-weekly basis. We have included many of our standard reports in Attachment G which covers many of the requirements listed above. Each can be customized as required to meet your needs. Unless specified, these reports can available at predetermined intervals such as monthly or quarterly. • Assignment Acknowledgment (Available online via FCNetTM): This letter style report generates each time we receive a batch of account for assignments. Client Inventory (Available online via FCNetTM): This history lists each account assigned along with the client's reference number, amount assigned, the amount collected, amount canceled, the balance, the last pay elate and the current status of the account. • Performance Statistics (Available online via FCNeti-m): This report summarizes our overall performance statistics and breaks them down by age, balance and status code. Submitted by financial Credit Nemork, Inc. Page 11 • History Report (Coming soon to FCNetr"'): This report prints in an actuarial format allowing our client to match the date of collection against the assignment date. The report breaks the statistics down by month for the previous 24 mouths and by year for the last three years. • Recovery Rate Summary (Coming soon to FCNet'"'): This report compares recovery rates for the past 12 mouths to the current 12 months. • Yearly Client Assignments/Collection Report (Coming soon to FCNetTM): This report compares client assignments to actual collections for a 24 nionth period. Remittance Advice (Available online via FCNetTM): This statement can be provided weekly, bi-weekly or monthly and is available via magnetic tape or hard copy. • Cancellation Report (Coming soon to FCNetr"i): This report lists accounts that have been canceled for the current month A floc fiej7or•rin . We can provide most information needed in the format required within 48 hours of receiving the request. The CUBS system provides incredible flexibility in both retrieving information and placing that information in a desired report format. E�MI -NartcF.s Our notices are mailed in both English and Spanish. Sample notices can be found in Attachment 1-I. Collection notices and letters can be customized to meet each client's specific needs as long as the legends and disclaimers required by law are included. As mentioned earlier, one of our primary focuses has been developing our bi-lingual collection services, through our Multi -Language Program (described in Attachment A). Through this program we are able to better communicate with our client's Hispanic customer base which results in a higher liquidation and better overall customer satisfaction. 1_ o `;1. a Nii cf-s Below is a partial list of nnmicipal agencies which Financial Credit Network has worked with during the past five years. * City of Visalia * City of Sacramento * City of Aracata * Park Water Service Recent Awards • City of Madera * City of San Marcos * City of LaMcsa * City of Huntington Beach * City of Fremont * City of El Cerrito * California Water Service * City of Moorpark * City of Farniersvillc * Cucamonga Valley Water District * City of Paso Robles * City of Poway * City of El Cajon * City of Mendota Submitted by Financial Credit Nem-ork, Inc. Page 12 As requested, below are three collection projects that are similar to the City of Merced: l = y /�"+_� City of Turlock Jeri Gilley- Financial Customer 13 Closed Utility Accounts; Business License: Pees and penalties, Service Supervisor, Bus. Lic. permits; Police Dept: False alarms, DUI cost recovery, booking 900 N. Palm fees, noise disturbances; Garage Sale Permits Turlock CA 95380 (209) 668-5542 x307 jcilley<<Piurtock.ca.tts Utilities: Gloria DeCosta (209) 668-5570 Police Department: Ginger Zelidon (209) 668-5550 x634 City of Tulare Dean Leek - AIR Manager 11 Utilities; Miscellaneous Accounts Receivable; UTT Tax chick@ci Wlarexa us. 41 t E. Kern Ave, Ste. F Tulare, CA 93274 (559) 684-4232 City of Camarillo 3 Utilities (active, second placements, and closed), Miscellaneous Chris Inloes - Supervisor- Accounts Receivable Customer Service cinloesi'ri.ramarilloxa.us PO Box 37 Camarillo, CA 93011 (805) 388-5323 z 't_'9 -IF1 1CT OF tT-,, F.RE 'T: Financial Credit Nem,ork has no conflicts of interest with respect to the firm, its management team or employees. The success of any collection program is based on the ability to persuade consumers to pay for their responsibilities while maintaining the integrity of the consumer, the agency and the client. At FCN, we believe customer service has everything to do with our success. We have created a "BHAG". This Big Hairy Audacious Goal is to be: "Known for Creating a New Industry Image Focused on Exceptional Ctistonrer Experience!" tr s?c�N l lr.� frcr FCN believes that customer service begins with providing our team with a vision. We strive to build a passion for this vision in each and every staff member. We have developed four crucial inission statements that we use in every aspect of business. When changes are made, we ask ourselves if these changes are in keeping with our mission. The statements are: Submitted by Financial Credit Network, Inc. Page 13 Client.- Financial Credit Nemork's overall philosophy includes providing superior service for a competitive price to our clientele, while preserving the dignity of those who owe our clients money, through a financial counseling approach. We want to make people feel good about paying their debts, and not feel had for being in collections. Shred: Our philosophy of providing superior services also extends to our staff members. Our goal is to build and retain a diverse, well -trained and well -compensated workforce and to provide each teani member with a healthy environment in which to grow. FCN is committcd to providing the best possible benefits and offers high -quality, progressive leadership to attain these goals. C-:tarn l pity: Our responsibility is to make a difference in our community by giving not only monetary donations to local charities and events, but also giving our time. We are committed to promoting local events and providing avenues for employees to get involved. We strive to create an atmosphere than encourages our team members to give back to their local communities. Ni mavc-metit Team: PCN Managers are committed to foster a constantly improving work environment that promotes company and personal growth, service excellence and trust at all levels in order to achieve the company's mission. As stated earlier, there is no magic to the collection process. What our firm has to offer is an extremely high degree of professionalism, over 56 years of experience in the collection industry, a proven track record, a commitment to staying technologically advanced and an incredible amount of flexibility. These qualities enable us to design and customize a collection program to meet the City's needs. The timeline of our collection process can be found in our flowchart, Attachment D. l ROPO-AL COST This Pee Schedule shall be included which will be valid for the term of the contract. r M a Fko'i -- d ; Primary Placements (if collected within first 30 (lays) 20% Primary Placements (collected after 30 days - excluding legal action) 33% Court Actiou on Primary Placements (if required and approved) 38% Secondary Placements (excluding legal action) 38% Court Action on Secondary Placements (if required and approved) 40% There are no additional costs to the City associated with conversion of accounts. Lr%u,r, ; I IO _. Our account balance minimuni is flexible based upon our client's individual needs. Our general guideline for pursuing collection activity is $10.00 and over. Our legal dollar thresholds are a minimum of $1,000 combined balance. Case by case exceptions can be made to this limit. Submitted by Financial Credit Nem-ork, luc. Page 14 Attachment A Multi -language Program Submitted by Financial Credit Network, Inc. Page 15 Multi Law 'P-Tp-grairn Program Objective: With niore than 47 million people living in the United States who speak a primary language other than English, Financial Credit Network recognizes the need to communicate effectively. Our objective is to maximize recoveries for the account segment whose native language is not English by isolating those accounts and applying communication expertise, technology and expertly trained personnel. The success of our prograur revolves around our ability to effectively Communicate with other population segments. Studies have found that those consumers who are bilingual are more conito rtable using their language of origin when discussing sensitive matters. FCN's primary focus has been on the Hispanic community. As outlined below, we have developed an extensive program to meet the needs of this growing population. Communication FCN has taken the steps necessary to ensure every point of contact with the consumer be in Spanish. • Correspondence: All consumer correspondence, including legal documents, has been professionally translated. This process gives consideration to the regional differences in the language and the challenges of translating business terminology into readable Spanish. Several of our staff members write Spanish fluently and are available to translate daily correspondence. • Ongoing Beginning and Advanced Language Training: Our goal is to enable every employee of I'CN to be able to Communicate basic information to a Spanish-speaking consumer. This goal is achieved through ongoing beginning language training. Members of our Spanish-speaking collection division and outside consultants pertorrn this training. The members of our Spanish-speaking collection division receive advanced training to enable effective counuunication of collection and legal issues. • Dedicated Telephone Lines: Imagine the relief of hearing a telephone answered in your preferred language. Our Spanish correspondence and telephone messages utilize a unique telephone number, which upon connection with our office, is greeted in Spanish. The caller is then transferred to a Spanish-speaking account representative through our automated call distribution systeut. • Utilization of Moneygram Bilingual Offices: Moneygramr has been a very effective collection tool for many years. A consumer can simply pay cash at any Moneygram office, which is wired to a printer in our office inunediately and credited to the consumers account the saute day. Expert Staff • Spanish Speaking Staff: On -going training is an essential component to any successful program. In this division there are collectively utany years of experience in both collections and Hispanic communication. This suppleniented with advanced language training, collection schools held by the American Collection Association and our own in-house training program ensures that our employees are continuously kept expertly trained. Subutitted by Financial Crcdit Netu ork, Inc. Page 16 • Latin Cultural Training: We have developed a series of training modules designed to sensitize our entire staff to cultural differences. These modules include motivation and negotiation skills that appeal to the consumers' sense of pride and issues inherent in a transient, seasonal worker population. Technology • Migrant Worker Skip Tracing: By nature, the seasonal worker is transient, moving from town to town, to wherever the work is available. Our affiliation with a national skip -tracing database enables its to locate consumers who have permanently or temporarily relocated and are gainfully employed in their new location. • Customized Seasonal Payment Plans: Throtigh otir CUBS Collection Software payment plan program our account representatives are able to negotiate payurents and customize a repayment plan whereby a consumer can make a larger payment while employed and a sulaller payinent while unemployed. Our system monitors the repayment schedule through a series of reminder notices with no further account representative intervention finless the consumer is in default. Spanish Speaking Voice Mail: Our goal is for every incoming Spanish caller to reach our reception staff. Occasionally during peak business hours and after hours, it is necessary for the overflow to be handled by our voice mail system. Once answered, every proinpt and greeting in this program has been translated and professionally recorded in Spanish. Our next target area is the growing Asian population segment. We presently employ Hurong speaking individuals and have account representative positions open for candidates fluent in Tagalog, Vietnamese and Cantonese. Other Cap.- bit-ititts Our office has the capability of being linked with the Language Line Service, formerly known as AT&T Language Line. This service provides translation service in HO different languages, 7 days a week, 24 hours a day. Submitted by Financial Credit Network, Inc. Page 17 Attachment B Organizational Chart Submitted by Financial Credit Network, Inc. Page 18 Please double click on the attachment below to open the Organizational Chart. Adobe Acrobat Document (±CN Organizational Chart Attachment C Resume/Bl'o of Key Personnel Alicia Sundstrom Own er/Presiden t Alicia Sundstrom is the owner and President of Financial Credit Nem,ork, Inc. She has over 20 years of experience in the collection industry. She purchased the company in 2003 after serving in the capacity of Vice President for over 17 years. She manages the organization's portfolio of over 200 million annual placements and operating budget of $4.5 million. She is a hands-on owner, serving as a primary contact for many of RCN's major clients. Alicia is an example of the philosophy she espouses to her staff - "your path at FCN is limited only by your imagination!" Alicia's career began in 1984 and she has served in virtually every capacity ranging from the sales department, throughout the support department, on the executive team and now owner. She uses this hands-on experience to manage FCN's staff. Alicia is an experienced facilitator and has worked to develop and present a number of client training sessions and seminars. Alicia is known throughout the collections industry. She is active in the California Association of Collectors (CAC) and currently holds a seat on the Legislative Council and is a member of the Editorial Committee. She also is the current Chair of the Grievance Committee. She has been an active member of Soroptimist International for the past 13 years serving as Treasurer and Chair of numerous committees. She is the President of the Kawcah Delta Healthcare District Foundation and has sewed this organization for the past eight years in various capacities. Alicia is a quiet leader, but she has been recognized on several occasions: • CAC's Bob Morris Innovation and Excellence Award CAC "Gut of the Box" Award Soroptimist International's prestigious "Women Helping Women" Award Central California Women of Influence Award Influence ... it's the one word that describes her best. Her charismatic personality and integrity are what make Alicia a successful business woman. Education: College of the Sequoias 1979 Cerritos Junior College 1980 Business Administration Courses Various Seminars Including: American Collectors Association Continuing Education; FDCPA Issues; Professional Liability Seminar; Top Managers Seminar; Profit Issues Seminar; Managing the Financiat Process Professional References: Richard DeLuna, Groner, Collection Bureau of America, (510) 78 1-5 168 Julie Petersen, Owner, Bamboo Management, (510-526-5977) Vicki Stasch, Management Consultant (559) 733-0634 Submitted by Financial Credit Network, Inc. Page 20 Kris Davisson Vice President Kris Davisson serves as Financial Credit Network's Vice President. In this role, she is responsible for the oversight of all operations at FCN. She is involved in the day-to-day decisions, strategies and dealings of the organization. Dubbed "Jiminy Crickert", she is recognized throughout the organization as the "conscience of the company". Kris's passion has always been for people. The employees at FCN know her to be fair and consistent in their interactions with her. She is a role model in the area of business ethics and was recognized in 2006 by Tulare County with an "Excellence in Business Values" award. Kris began her career at FCN in 1996 as the owner's Administrative Assistant. She was promoted to Director of Human Resources in 1999. With this new role, she became a member of FCN's Board of Directors. Her responsibilities consisted of administering employee benefit programs including both health insurances and 401k programs; coordinating continuing education opportunities for all employees; development of leadership training; compliance with all state and federal regulations; participation in conflict resolution sessions with the staff and serving as a liaison between the employees and the management team. She was promoted to Vice President in 2003. Kris is a gifted communicator and has taught on the subject of "Recruitment and Interviewing" for the Tulare County Society for Human Resource Management for their annual HR Workshop Series. She has also taught classes on business ethics and inteiA,iewing skills to high school juniors and seniors through the Visalia Chamber of Commerce. Kris is an active member of the California Collector's Association and has served on the Membership Committee for four years. She currently serves at the Chairman of the Membership Committee. Additionally, she has served on the Education Scholarship Foundation for three years and is currently the co-chair. Coninitmity service is a big part of Kris's life. She is active in events such as the American Cancer Society's Relay for Life (raising money for cancer patients and cancer research); Visalia Emergency Aid's Race Against Hanger (raising money to feed those in need during Thanksgiving); Kid's For Christmas (providing a Christmas party for underprivileged children and providing a pair of shoes and socks for each child); Habitat for Humanity (building homes for deserving fainilies) as well as supporting a number of other charitable organizations. Once again, her passion for people is reflected in the way she spends her time and resources. Education: Warner Pacific College - Bachelor of Arts - Public Relations Mt. Hood Community College - Associate of Arts - Graphic Technology Various Management and Leadership Seminars Professional References: Vicki Stasch, Management Consultant, (559) 733-0634 Philip Smith, Vice President, Bank of the Sierra, (559) 740-4200 Susan K. Tackett, LUTCF, (559) 733-1777 Suhmitted by Fimamcial Credit Nem,ork, inc. Page 21 Susan Morado Collection Manager/Training and Compliance Officer Susan Morado serves FCN i❑ the capacity of Collection Manager and Training and Compliance Officer. She has been with the organization since 1989 and has worked her way from a part time collector, to Legal Supervisor, to Collection Supervisor, to her current position. In her current dual role she is responsible for developing strong work strategies that ensure solid business practices and unbeaten recovery percentages and client profitability. Susan is a creative -thinker and is gifted at using the resources available to her to increase productivity. She has developed a number of measurement tools that have helped FCN analyze the strengths and challenges of collection team members. She utilizes her team of supervisors to continually develop new strategies that enhance F CN's collection program. Susan has extensive knowledge of the CUBS software, dialing equipment and software, as well as other communication tools utilized to connect with consumers. She has an eye for detail and is able to identify issues before they become significant. As Training and Compliance Officer, Susan has been charged with the oversight of compliance with all state and federal laws regulating the collection industry. She is responsible for keeping FCN staff members up-to-date with any new legislation affecting ]low FCN and the industry does business. Susan actively participates in the California Association of Collector's legislative program. She has attended the annual Legal and Legislative Conference for the past several years and has participated in meetings with state legislators. Susan is an exceptional coach and teacher and has been identified by the ACA as a top industry trainer. She works with clients to identify areas in which their team needs training and then develops a customized training course based on the deficiencies that have been acknowledged. She has been an FCN seminar presenter for over 10 years and is a sought after resource throughout the collection community. She is a favorite trainer amongst RCN's staff members because she knows how to make learning more enjoyable. Susan's enthusiasm and passion for the company and the industry make her a valuable asset to the FCN team. Education: Reedley College - Psychology Certifications. ACA Certified Healthcare Specialist and Scholar in Business Management OtherAmel-ical7 Collectors Associatimi Training. The Art of Skiptracing; Personnel Managenent; Training the Trainer; Pair Debt Collection Practices Act; Pair Credit Reporting/act Act; Theft of Identity; Telephone Coustimer Protection Act; Red flag Regulations; Eight Steps to the Collection Call; Importance of Motivating Consumers and Employees; How to Recruit, Interview and Hire the Right Person; Stress Management Professional References: Vicki Stasch, Management Consultant, (559) 733-0634 Warren Gubler, Collection Attorney, (559) 625.9600 Sallie Garcia, Northview Fire District, Administrative Assistant, (801) 782--9042 Submitted by Financial Crcdit Network, Inc. Page 22 Andrea Miller Account Executive Andrea serves as Financial Credit Network's Account Executive. In this role, she is responsible for the securing, setting up, training and maintaining client relationships at FCN. She involved in the marketing and sales strategies of the organization. Andrea began her career at FCN in 2004 as Account Executive. Her responsibilities consist of regional sales; setting up new clients; marketing to new prospects; development of new sales and marketing strategies; company representative at tradeshows, seminars and conferences; training clients and resolving customer requests. Andrea completed her collection specialist training with the American Collection Association in January of 2008. Andrea is an active member of the ACA American Collection Association, CMRTA California Municipal Revenue and Tax Association, CSMFO California State Municipal Financial Officers, and the Visalia Chamber of Commerce. Community service is an important part of Andrew's life. She is currently serving as Vice President on the Board of Directors for the Creative Center in Visalia. She has been active in events such as the American Cancer Society's Relay for Life, and Visalia Emergency Aid's Race Against Hunger. Education: Landmark College - Putney, VT American Collection Association- Certified Collection Specialist Various Governmental, Collection and Sales Seminars Professional References: Kathleen Remillard, Executive Director Creative Center, (559) 733-4400 Cecil Lopez - RedChair Marketing, (559) 733-0510 Janer Robertson - Vice President, Citizen's Bank, (559) 636-2500 Submitted by Financial Credit Network, Inc. Page 23 Lare Carson Technical Support Manager Lare Carson, FCN's Technical Support Manager, has been with the organization since 1986. Starting as a receptionist, it was soon evident that Lare possessed both leadership qualities and technical aptitude. She worked her way into Management in 1987 and supervised our Support Team for over seven years. During this time, the team grew to 16 members. She was responsible for overseeing all support functions including reception, processing of itemized statement requests, processing of all bankruptcy documentation, handling of all dispute and fraud accounts, processing all credit bureaus disputes and deletions, the processing of insurance billing and the manual data entry of new placcinents. During her tenure with FCN, Lare has become an expert in the maintenance and troubleshooting of the Columbia Ultimate Business System'', (CUBS) software. She is adept at seeing beyond a problem and quickly identifying a solution. By knowing the right questions to ask, she is able to identify the cause of the issue and then, by either researching on her own or utilizing her network of sources, she is able to find the best resolution. She is a sought- after resource not only within FCN, but within the California collection community. Lare has completed courses such as Finance and Accounting for Non -Financial Managers, Conflict Management and Confrontation and other leadership courses. Additionally, she has completed courses in 200p AP/Picic/D3 Fundamentals as well as attending countless trainings sessions with Columbia Ultimate Business Systems. Lare is very active in community events that FCN sponsors and has taken a leadership role in the American Cancer Society's Relay for Life Event. Lare shares her enthusiasm and passion for the event with our staff and encourages others to get involved. She has developed a number of creative fundraisers and has been an integral part of our team's success for a number of years. Education: Redwood High School - General Education TCOVE - Business Managenicrt Professional References: Julie Peterson, Consultant, (510) 526-5977 Jo Gigarin, Programmer, (408) 391.5128 Terry Dill, District Attorney's Office, (559) 733-6754 Submitted by Financial Credit Network, Inc. Page 24 LV-A JOHNS( )N �hohnson@fcnetwork.coml Lisa is the Collection Supervisor for one of our Inbound Team. Lisa has been employed by FCN for fifteen years and has been in the collection industry for twenty years. Lisa has extensive experience in government and medical collections. She is passionate about "the details" of each account and holds her staff to a high standard of performance and customer service. She has been a supervisor for the last six years. IME- ND_—`� PF i RsNI FL sbpimentel@fcnetwork.coin} Brenda is the Collection Supervisor for Dialer and Split Teams. Brenda leas been with FCN for ten years and has been in collections for fifteen years. She nianages her team by holding them accountable to production goals that they set together. She also holds her staff to a high standard of both performance and customer service. Brenda has attended the IAT Annual User Conference, which has given her the knowledge needed to efficiently operate our dialer unit. OTHER KEY TEAM MEMBERS KOLIA v'AIN"f. (kvant@fcnetwork.com) Koua is the supervisor of our Support Team. She is responsible for all employees who support the collection ream including receptionists, bankruptcy specialists, credit reporting personnel and various other staff duties. She brings to FCN over eight years of management experience in both the healthcare and retail industry and has a Bachelors of Art in Management and Organizational Development. Koua brings many new perspectives and is a great addition to our Management Team. ROIAN C3_ lwr-r, (r2ar•za@fcnetwork.com) Robin is our Customer Care Supervisor. Robin has twelve years of experience in the customer service field and provides our clientele with a single point of contact. Robin is trained in both administrative and collection functions enabling her to field and provide timely answers as required. Submitted by Financial Credit Network, Inc Page 25 Attachment D Flowchart Subtniacd by Pineucial Credit Netwo k, Inc Page 26 Financial Credit Network Flowchart --------------------------------------------------- 7--- Day 1 I ACCOUNTS RECEIVED AT FCN I Accounts loaded in our system and cross-referenced against our database of over 2,000,000 accounts for matching name, social security number, drivers license number and account number NCOA Scrub First Notice Generated Initial Skip Tracing Waterfall Implemented Day 2 I Accounts Are Distributed to Collection Teams by Balance Range and Type I Activation of account beginning with client information, and matching debtor accounts. Sorted by language. I Sorting of Accounts GOOD NUMBERS •-— Follow-up at varying times of day and week for contact. Letter series Asset Search: Property, Job, Bank PIOMISES F1.11(3I A BROKEN PROMISES Judgement Execution Follow-up for 3 consecutive days & etter PA�INFILL���� I SKIPS I National Change of Address Skip Tracing Waterfall (Contact Locator, CBC Innovis, Skip Trace Info Abbreviated Credit Reports Full Credit Bureau Reports Merlin UNCOLL.ECTABLE Refuses to Pay - No Assets Bankrupt Account Maintained Deceased and Recycled Fraud Unable to Locate " POFTf U TO Cl IBVT REPOTTED TO CLIENT RI Submitted by Financial Credit Network) Inc. Page 27 Attachment E State Licensing Matrix Submitted by Fivauciat Credit Network, Iuc. Page 28 FINANCIAL CREDIT NETWORK, INC. LICENSING License State Required Alabama (AL) X Exeinpitio-n X MATRIX Not No 'License Currently ;o Alaska (AK) X X Arizona (AZ) X 10,000.00 Arkansas (AR) X California (CA) X Colorado (CO) X 20,000.00 Connecticut (CT) X Delaware (DE) X District of Columbia X Florida (FL) X X Georgia (GA) X Hawaii (HI) X Idaho (ID) X 15,000.00 Illinois (1L) X 25,000.00 Indiana (IN) X X Iowa (IA) X X Kansas (KS) X Kentucky (KY) X Louisiana (LA) X Maine (ME) X X Maryland (MD) X Massachusetts (MA) X Michigan (MI) X X Minnesota (MN) X Mississippi (MS) X Missouri (MO) X Montana (MT) X Nebraska (NE) X Nevada (NV) X 35,000.00 Submitted by financial Credit Network, Inc. Page 29 New Hampshire (NH) X New Jersey N.I X New Mexico NM X 5,000.00 New York (NY) X North Carolina NC X North Dakota (ND) X Ohio OFF X X Oklahoma (OK) X Oregon OR X 10,000.00 Pennsylvania PA X Rhode Island RI X X X South Carolina SC X South Dakota (SD) X Tennessee TN X Texas TX 10,000.00 X Utah UT X 10,000.00 Vermont VT X Virginia VA X Washington WA X X 5,000.00 West Virginia WV X Wisconsin(WI) X X W omin J WY X I X Submitted by Financial Credit Network, Inc. Page 30 Attachment F Client Seminars Submitted by Financial Credit Nem,ork, Inc. Page 31 FCN Seminar Topics `Legally Collecting Within the Law These are just sample questious that tyre covered: Inforniath,e senfinar. liras enlightened by sei,eral issues. ❑ When can I legally call consumers? - J Koluncich - ❑ Can I accept post-dated checks? ❑ Is it legal to speak with the spouse about a consumer's account? ❑ Are there different requirements to take legal action to collect debts owed to California hospitals? Telephone Courtesy ❑ Handling Multiple Calls ❑ Answering Calls ❑ Handling Problems ❑ Your Telephone Voice "`Handling the Collection Call (Prerequisite - "Telephone Courtesy") ❑ 8 Steps To The Collection Call ❑ Telephone Tips for Effective Collecting 'The ABC's of Motivation in Collections (Prerequisite - "Telephone Courtesy" and "Handling the Collection Call") ❑ Assertiveness ❑ Basic Skills ❑ Creativity Negotiation in Collections (Prerequisite - "Telephone Courtesy" and "Handling the Collection Call") ❑ Factors In Becoming A Successful Negotiator ❑ Practical Strategies ❑ Using Psychology in Negotiations I -low to Conlinunicate Successfully ❑ Techniques to Help With Successful Communication ❑ Listening Submitted by Financial Credit Nem-ork, Inc. Page 32 Attachment G Client Reports Subnnitred by Financial Credit Network, Lic. Page 33 All of the attached reports are in standard format. Each can be customized as required to uleetyour needs. Unless specified, these reports can be setup to print at predetermined intervals such as monthly or quarterly. `"Assignment Acknowledourent This letter style report generates each time we receive a batch of account for assignments. —Client Inventory: This history lists each account assigned along with the client's reference number, amotmr assigned, the amount collected, amount canceled, the balance, the last pay date and the current status of the account. —Performance Statistics: This report suuuuarizes our overall performance statistics and breaks them down by age, balance and status code. .k"I-listory Report This report prints in all actuarial format allowing our client to match the date of collection against the assignment date. The report breaks the statistics clown by uronth for the previous 24 months and by year for the last three yea rs. "`Recovery Rate Sumumrk This report compares recovery rates for the past 12 muntlis to the current 12 months. `"Yearly Client Assignments/Collection Report This report compares client assignments to actual collections for a 24 month period. `Remittance Advice This statement can be provided weekly, bi-weekly or monthly and is available via magnetic tape or bard copy. —Cancellation Report This report lists accounts that have been canceled for the current month. * *See following Page for attachments. Submitted by Financial Credit Network, Inc. Page 34 Please double click on the icons below to view client reports: Adobe Acrobat Document Acknowledgement 1� Adobe Acrobat Document Client Inventory Adobe Acrobat Document History Report Adobe Acrobat Document Recovery Rate Summary Adobe Acrobat Document Yearly Client Assignment/Collection Report Adobe Acrobat Document FCN Remittance Advice i Adobe Acrobat Document Cancellation Report Submitted by Financial Credit Nem,ork, Inc. Page 35 Attachment H Consumer Notices Submitted by Pivancial Credir Network, Inc. Page 36 Consumer Notices - Please double click on the icons below to view notices. Adobe Acrobat Document First Notice - English/Spanish Adobe Acrobat Document Second Notice - English/Spanish Adobe Acrobat Document Third Notice - English/Spanish Adobe Acrobat Document Fourth Notice - English/Spanish Submitted by Financial Credit Nemz ork, hic. Page 37