Loading...
HomeMy WebLinkAbout2020 CON Financial Credit Network - Collection Services - Amendment #1FIRST AMENDMENT TO THE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND FINANCIAL CREDIT NETWORK, INC. THIS FIRST AMENDMENT TO THE AGREEMENT, is entered into this 21' day of January, 2020, by and between the CITY OF NATIONAL CITY, a municipal corporation ("CITY"), and FINANCIAL CREDIT NETWORK, INC., a California corporation (the "CONSULTANT"). RECITALS WHEREAS, the CITY and the CONSULTANT entered into an Agreement on December 6, 2016, ("the Agreement") wherein the CONSULTANT agreed to provide collection services for the City for the period of December 6, 2016 through June 30, 2019 with two additional one- year options; and WHEREAS, the parties desire to amend the Agreement to extend the term of the Agreement for one year to June 30, 2020. AGREEMENT NOW, THEREFORE, the CITY and CONSULTANT parties agree as follows: This Amendment extends the term of the Agreement through June 30, 2020; and The parties agree that each and every term and provision of the agreement dated December 6, 2016 not specifically amended shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first above written. [Signature Page to Follow] CITY OF NATIONAL CITY By: Alejand . Sotelo-Solis, ayor APPROVED AS TO FORM: Angil City s•romey ones FINANCIAL CR1DIT NETWORK, INC. ame) t S/N ►-U4- (Print) (Title) By: (Name) (Print) (Title) Exhibit A FINANCIAL CREDIT NETWORK, INC. RATES TO PERFORM COLLECTION SERVICES Fees for collections services for delinquent accounts receivable forwarded by the City of National City ("City") to Financial Credit Network, Inc. ("FCN") are contingent upon collection on said delinquent accounts receivable. Fees will be deducted from collections in accordance with the following schedule: Description Contingency Fee Primary Placements for: 1. Administrative citations 24% 2. Business licenses 24% 3. False alarm billing 24% 4. Property damage 24% 5. Returned checks 24% 6. Miscellaneous receivables 24% Court action for primary placements for all account types (if required) 34% Transfer of account to an out -of -area agency for collection (forwarding) 34% Franchise Tax Board Intercept Program finder's fee 8% Future Primary Placements not enumerated in 1-6 in this Exhibit B 24% Future court action for Primary Placements not enumerated in 1-6 in this Exhibit A 34% The City shall not incur any costs for collection services. All monies due to FCN shall be deducted from collections by the Consultant; however, the City shall be invoiced for all fees deducted on a monthly basis. A detailed accounting of collections, less City -owed fees will accompany each remittance to the City. Additional fees may not be added to the principal amount of any debt to the City without prior written approval from the City. Notwithstanding approval by the City, additions must be in accordance with all applicable federal and state laws. Page 1 of 1 RESOLUTION NO. 2020 - 05 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE THE FIRST AMENDMENT TO THE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND FINANCIAL CREDIT NETWORK, INC. FOR COLLECTION SERVICES, EXTENDING THE AGREEMENT TO JUNE 30, 2020 WHEREAS, the City desired to employ a consultant to provide debt collection services for collection of delinquent indebtedness owed to the City; and WHEREAS, the City determined that Financial Credit Network, Inc., is a professional collection agency and is qualified by experience and ability to perform the services desired by the City; and WHEREAS, on December 6, 2016, the City entered into an Agreement with Financial Credit Network, Inc. to perform such services for a period of December 6, 2016 through June 30, 2019 with an option to extend for two additional one-year terms; and WHEREAS, staff seeks approval to execute the first one (1) year amendment to extend the Agreement for a one year term ending June 30, 2020. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute the first one (1) year amendment to extend the Agreement with Financial Credit Network, Inc., for a one year term ending June 30, 2020 for debt collection services for collection of delinquent indebtedness owed to the City. Said first amendment to the Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 21st day of January, 202 Alejandra Sotelo-Solis, Mayor ATTEST: ro-Z Michael R. Dralla, City Clerk APPROVED AS TO FORM: ngi rris-Jon-s City .¢(ney Passed and adopted by the Council of the City of National City, California, on January 21, 2020 by the following vote, to -wit: Ayes: Councilmembers Cano, Morrison, Quintero, Rios, Sotelo-Solis. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: ALEJANDRA SOTELO-SOLIS Mayor of the City of National City, California MICHAEL R. DALLA City Clerk of the City of National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2020-5 of the City of National City, California, passed and adopted by the Council of said City on January 21, 2020. City Clerk of the City of National City, California By: CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 21, 2020 AGENDA ITEM NO.: 13 ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute the First Amendment to the Agreement by and between the City of National City and Financial Credit Network, Inc. for collection services, extending the Agreement to June 30, 2020. PREPARED BY: Mark Roberts, Director of Finance DEPARTMENT: Finance''�� PHONE: 619-336-4330 APPROVED BY: L 7/7.4 EXPLANATION: The City of National City entered into an agreement with Financial Credit Network, Inc. on December 6, 2016 for collection services for the City for the period of December 6, 2016 through June 30, 2019 with an option for the City to extend the agreement under the same terms and conditions for up to two (2) additional years beyond the initial contract expiration date. Staff seeks approval to exercise the first one (1) year option. This Amendment would extend the Agreement for a one-year term ending June 30, 2020. FINANCIAL STATEMENT: APPROVED: LIZA/Ivk XQ FINANCE APPROVED: Collections fees vary by collection type; however, the City incurs no direct cost for these services. Fees are deducted from monies collected. ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION FINAL ADOPTION MIS STAFF RECOMMENDATION: Adopt the resolution, authorizing the Mayor to execute the First Amendment to the Agreement by and between the City of National City and Financial Credit Network, Inc. for collection services, extending the Agreement to June 30, 2020. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Financial Credit Network, Inc. agreement amendment 2. Resolution ��L.ao4 ,% 1 .-no • .9 0 - .5' FIRST AMENDMENT TO THE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND FINANCIAL CREDIT NETWORK, INC. THIS FIRST AMENDMENT TO THE AGREEMENT, is entered into this 21st day of January, 2020, by and between the CITY OF NATIONAL CITY, a municipal corporation ("CITY"), and FINANCIAL CREDIT NETWORK, INC., a California corporation (the "CONSULTANT"). RECITALS WHEREAS, the CITY and the CONSULTANT entered into an Agreement on December 6, 2016, ("the Agreement") wherein the CONSULTANT agreed to provide collection services for the City for the period of December 6, 2016 through June 30, 2019 with two additional one- year options; and WHEREAS, the parties desire to amend the Agreement to extend the term of the Agreement for one year to June 30, 2020. AGREEMENT NOW, THEREFORE, the CITY and CONSULTANT parties agree as follows: This Amendment extends the term of the Agreement through June 30, 2020; and The parties agree that each and every term and provision of the agreement dated December 6, 2016 not specifically amended shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first above written. [Signature Page to Follow] CITY OF NATIONAL CITY FINANCIAL CREDIT NETWORK, INC. By: By: Alejandra Sotelo-Solis, Mayor (Name) (Print) APPROVED AS TO FORM: (Title) Angil Morris -Jones By: City Attorney (Name) (Print) (Title) Exhibit A FINANCIAL CREDIT NETWORK, INC. RATES TO PERFORM COLLECTION SERVICES Fees for collections services for delinquent accounts receivable forwarded by the City of National City ("City") to Financial Credit Network, Inc. ("FCN") are contingent upon collection on said delinquent accounts receivable. Fees will be deducted from collections in accordance with the following schedule: Description Contingency Fee Primary Placements for: 1. Administrative citations 24% 2. Business licenses 24% 3. False alarm billing 24% 4. Property damage 24% 5. Returned checks 24% 6. Miscellaneous receivables 24% Court action for primary placements for all account types (if required) 34% Transfer of account to an out -of -area agency for collection (forwarding) 34% Franchise Tax Board Intercept Program finder's fee 8% Future Primary Placements not enumerated in 1-6 in this Exhibit B 24% Future court action for Primary Placements not enumerated in 1-6 in this Exhibit A 34% The City shall not incur any costs for collection services. All monies due to FCN shall be deducted from collections by the Consultant; however, the City shall be invoiced for all fees deducted on a monthly basis. A detailed accounting of collections, less City -owed fees will accompany each remittance to the City. Additional fees may not be added to the principal amount of any debt to the City without prior written approval from the City. Notwithstanding approval by the City, additions must be in accordance with all applicable federal and state laws. RESOLUTION NO. 2020 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE THE FIRST AMENDMENT TO THE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND FINANCIAL CREDIT NETWORK, INC. FOR COLLECTION SERVICES, EXTENDING THE AGREEMENT TO JUNE 30, 2020 WHEREAS, the City desired to employ a consultant to provide debt collection services for collection of delinquent indebtedness owed to the City; and WHEREAS, the City determined that Financial Credit Network, Inc., is a professional collection agency and is qualified by experience and ability to perform the services desired by the City; and WHEREAS, on December 6, 2016, the City entered into an Agreement with Financial Credit Network, Inc. to perform such services for a period of December 6, 2016 through June 30, 2019 with an option to extend for two additional one-year terms; and WHEREAS, staff seeks approval to execute the first one (1) year amendment to extend the Agreement for a one year term ending June 30, 2020. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute the first one (1) year amendment to extend the Agreement with Financial Credit Network, Inc., for a one year term ending June 30, 2020 for debt collection services for collection of delinquent indebtedness owed to the City. Said first amendment to the Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 21st day of January, 2020 Alejandra Sotelo-Solis, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney _��r!�' AL u, tTf` CITY OF NATIONAL CITY Office of the City Clerk 1243 National City Blvd., National City, California 91950-4397 619-336-4228 Michael R. Dalla, CMC - City Clerk FINANCIAL CARE NETWORK Collection Services, Amendment #1 Karim Galeana (Finance) forwarded a duplicate original Agreement to Financial Care Network.