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HomeMy WebLinkAbout2020 CON Financial Credit Network - Collection Services - Amendment #2SECOND AMENDMENT TO THE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND FINANCIAL CREDIT NETWORK, INC. THIS SECOND AMENDMENT TO THE AGREEMENT, is entered into this 16th day of June, 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, on January 21, 2020, the CITY and the CONSULTANT agreed to extend the Agreement for one year through June 30, 2020; and WHEREAS, the parties desire to amend the Agreement to extend the term of the Agreement for one year to June 30, 2021. AGREEMENT NOW, THEREFORE, the CITY and CONSULTANT parties agree as follows: This Amendment extends the term of the Agreement through June 30, 2021; 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 Second Amendment to the Agreement on the date and year first above written. CITY OF NATIONAL CITY By: y Alejandra Sotelo-Solis, Mayor APPROVED AS TO FORM: • ngi/��� . rris-Jones Ci • ttorney FINANCIAL CREDIT NETWORK, INC. By: (Name) Alicia Sundstrom (Print) President (Title) -l'AikkOvi \-1 By: (Name) Kris Davisson (Print) Vice President (Title) SECOND AMENDMENT TO THE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND FINANCIAL CREDIT NETWORK, INC. THIS SECOND AMENDMENT TO THE AGREEMENT, is entered into this 16'h day of June, 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, on January 21, 2020, the CITY and the CONSULTANT agreed to extend the Agreement for one year through June 30, 2020; and WHEREAS, the parties desire to amend the Agreement to extend the term of the Agreement for one year to June 30, 2021. AGREEMENT NOW, THEREFORE, the CITY and CONSULTANT parties agree as follows: This Amendment extends the term of the Agreement through June 30, 2021; 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 Second Amendment to the Agreement on the date and year first above written. CITY OF NATIONAL CITY By: Alejandra Sotelo-Solis, Mayor APPROVED AS TO FORM: ngi�d •rris-Jones Ci £ ttorney FINANCIAL CREDIT NETWORK, INC. By: -Th (Name) Alicia Sundstrom (Print) President (Title) ti By: bd-A (Name) Kris Davisson (Print) Vice President (Title) �- CALIFORNIA NATIONAL L CITY i— 1z3 3'.T INCORPORATED Docket Number: 2020 - REQUEST FOR LEGAL SERVICES Date: June 23, 2020 Contact Person: Mark Roberts, Director of Finance Ext. No.: x4265 Subject: Sign contract Deadline: Future Agenda Item? NO YES, for agendated: Reviewed and approved for submittal: SERVICE REQUESTED: (Double-click on box to check -off) X (Dep'a. C' t Head signature required) !�-4 G prtERN > (U< R s-L7 Documents for Review and Comment Document(s) for Signature Other: EXPLANATION City Clerk Office - After signature(s) please provide signed copy to Karim in Finance. Thank you. ��� �� MYS- Avd (LI �3 7°V n- CALIFORNIA - NATIONAL CITY ancy 01COAPOBATED Docket Number: 2020 — REQUEST FOR LEGAL SERVICES Date: June 23, 2020 Contact Person: Mark Roberts, Director of Finance Ext. No.: x4265 Subject: Sign contract Deadline: Future Agenda Item? NO YES, for agenda ted: Reviewed and approved for submittal: (Dep'ak 'eht Head signature required) \IN-rsc4-M,RN q {nil, a� ROA�sLZs SERVICE REQUESTED: (Double-click on box to check -off) Documents for Review and Comment Document(s) for Signature Other: EXPLANATION City Clerk Office - After signature(s) please provide signed copy to Karim in Finance. Thank you. MSS- Ah ,\ (J�3 7 V .... CALIFORNIA NATIONAL CITY Docket Number: 2020 - \\1 REQUEST FOR LEGAL SERVICES Date: June 23, 2020 Contact Person: Mark Roberts, Director of Finance Ext. No.: x4265 Subject: Sign contract Deadline: Future Agenda Item? NO YES, for agendafted: Reviewed and approved for submittal: (De.at Head signature required) rn P N o"l, Aw., Skakcy?S SERVICE REQUESTED: (Double-click on box to check -off) I-j Documents for Review and Comment ® Document(s) for Signature ❑ Other: EXPLANATION City Clerk Office - After signature(s) please provide signed copy to Karim in Finance. Thank you. �,�� � lyj MS- AvO 0.123176g CF)Ik_ SECOND AMENDMENT TO THE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND FINANCIAL CREDIT NETWORK, INC. THIS SECOND AMENDMENT TO THE AGREEMENT, is entered into this 16th day of June, 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, on January 21, 2020, the CITY and the CONSULTANT agreed to extend the Agreement for one year through June 30, 2020; and WHEREAS, the parties desire to amend the Agreement to extend the term of the Agreement for one year to June 30, 2021. AGREEMENT NOW, THEREFORE, the CITY and CONSULTANT parties agree as follows: This Amendment extends the term of the Agreement through June 30, 2021; 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 Second Amendment to the Agreement on the date and year first above written. CITY OF NATIONAL CITY By: Alejandra Sotelo-Solis, Mayor APPROVED AS TO FORM: ngrris-Jones Ci ttorney FINANCIAL CREDIT NETWORK, INC. By: (Name) Alicia Sundstrom (Print) President (Title) t0AtitiQti By: (Name) Kris Davisson (Print) Vice President (Title) RESOLUTION NO. 2020 - 118 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE THE SECOND 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, 2021 WHEREAS, the City of National City ("City") desired to engage 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, on January 21, 2020 the City Council approved the First Amendment to the Agreement extending the Agreement retroactively from July 1, 2019 to June 30, 2020; and WHEREAS, City staff recommends that Council exercise the option to extend the Agreement from July 1, 2020 to June 30, 2021. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute the Second one (1) year amendment to extend the Agreement with Financial Credit Network, Inc., for a one (1) year term ending June 30, 2021 for debt collection services for collection of delinquent indebtedness owed to the City of National City. Said Second amendment to the Agreement is on file in the Office of the City Clerk. PASSED and ADOPTED this 16th day of June, 2020 Alejndra Sotelo-Solis, Mayor ATTEST: Mich. el R. Dalla, V ' y Clerk APPROVED AS TO FORM: Passed and adopted by the Council of the City of National City, California, on June 16, 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. 2020-118 of the City of National City, California, passed and adopted by the Council of said City on June 16, 2020. City Clerk of the City of National City, California By: Deputy CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 16, 2020 AGENDA ITEM NO.: 17 ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute the Second 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, 2021. PREPARED BY: Karim Galeana, Finance Manager PHONE: 619-336-4330 APPROVED BY: ` EXPLANATION: t. On December 6, 2016, the City of National City entered into an agreement with Financial Credit Network, Inc. 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. On January 21, 2020, the City Council approved the First Amendment to the Agreement, extending the Agreement for one year, through June 30, 2020. Staff seeks approval to exercise the second one (1) year option. This Amendment would extend the Agreement for a one-year term ending June 30, 2021. DEPARTMENT: Finance FINANCIAL STATEMENT: APPROVED: /ad /eal-444. FINANCE APPROVED: Collections fees vary by collection type; however, for most collections, the fee is 24%. 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 Second 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, 2021. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Financial Credit Network, Inc. agreement 2. First extension 3. Second extension 4. Resolution /Zoo AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND FINANCIAL CREDIT NETWORK, INC. THIS AGREEMENT is entered into on this 6th day of December, 2016, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and FINANCIAL CREDIT NETWORK, INC., (the "CONSULTANT"), a California corporation. RECITALS WHEREAS, the CITY desires to employ a CONSULTANT to provide collection services for delinquent accounts receivable for the City. WHEREAS, the CITY has determined that the CONSULTANT is qualified by experience and ability to perform the services desired by the CITY, and the CONSULTANT is willing to perform such services. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: 1. ENGAGEMENT OF CONSULTANT. The CITY agrees to engage the CONSULTANT, and the CONSULTANT agrees to perform the services set forth here in accordance with all terms and conditions contained herein. The CONSULTANT represents that all services shall be performed directly by the CONSULTANT or under direct supervision of the CONSULTANT. 2. EFFECTIVE DATE AND LENGTH OF AGREEMENT. This Agreement will become effective on December 6, 2016. The duration of this Agreement is for the period of December 6, 2016 through June 30, 2019. This Agreement may be extended by mutual agreement upon the same terms and conditions for two (2) additional one (1) year terms. 3. SCOPE OF SERVICES. The CONSULTANT shall provide collection services for delinquent account receivables. The CONSULTANT will perform services as set forth in the attached Exhibit "A." The CONSULTANT shall not have full rights to accounts in that these accounts are due to the CITY. CONSULTANT shall be able to pursue collections, as permitted by applicable law, only on behalf of the CITY. CONSULTANT shall not have the authority to accept a compromise or settlement on any account without written consent of the Director of Finance, or designee. The CITY may establish parameters in which accounts may be setted by CONSULTANT on CITY's behalf. The CONSULTANT shall be responsible for all research and reviews related to the work and shall not rely on personnel of the CITY for such services, except as authorized in advance by the CITY. The CONSULTANT shall appear at meetings as specified in Exhibit "A" to keep staff and City Council advised of the progress on the Project. 1 The CITY may unilaterally, or upon request from the CONSULTANT, from time to time reduce or increase the Scope of Services to be performed by the CONSULTANT under this Agreement. Upon doing so, the CITY and the CONSULTANT agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction or increase in the compensation associated with said change in services. 4. PROJECT COORDINATION AND SUPERVISION. The Director of Finance is designated as the Project Coordinator for the CITY and will monitor the progress and execution of this Agreement. The CONSULTANT shall assign a single Project Director to provide supervision and have overall responsibility for the progress and execution of this Agreement for the CONSULTANT. Kris Davisson is hereby designated as the Project Director for the CONSULTANT. The City reserves the right to perform periodic audits to ensure all amounts collected are accurately reported and remitted. The Director of Finance, or designee, shall be allowed access to CONSULTANT's debtor account information for the purpose of generating recovery analysis reports or auditing files at any time. 5. COMPENSATION AND PAYMENT. The compensation for the CONSULTANT is contingent upon collection of moniesby the CONSULTANT, as permitted by law, and shall be based on charges covering actual work performed in accordance with the fee rates in the attached Exhibit "B." All monies due to the CONSULTANT shall be deducted from collections received by the CONSULTANT; and the CONSULTANT shall submit a monthly invoice to the City documenting amounts collected and fees deducted on all accounts. The CONSULTANT shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred, and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CITY, and for furnishing of copies to the CITY, if requested. 6. ACCEPTABILITY OF WORK. The City shall decide any and all questions which may arise as to the quality or acceptability of the services performed and the manner of performance, the acceptable completion of this Agreement, and the amount of compensation due. In the event the CONSULTANT and the City cannot agree to the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONSULTANT in this Agreement, the City or the CONSULTANT shall give to the other written notice. Within ten (10) business days, the CONSULTANT and the City shall each prepare a report which supports their position and file the same with the other party. The City shall, with reasonable diligence, determine the quality or acceptability of the work, the manner of performance, and/or the compensation payable to the CONSULTANT. 7. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The Memoranda, Reports, Maps, Drawings, Plans, Specifications, and other documents prepared by the CONSULTANT for this Project, whether paper or electronic, shall become the property of the CITY for use with respect to this Project, and shall be turned over to the CITY upon completion of the Project, or any phase thereof, as contemplated by this Agreement. 2 2 Contemporaneously with the transfer of documents, the CONSULTANT hereby assigns to the CITY, and CONSULTANT thereby expressly waives and disclaims any copyright in, and the right to reproduce, all written material, drawings, plans, specifications, or other work prepared under this Agreement, except upon the CITY'S prior authorization regarding reproduction, which authorization shall not be unreasonably withheld. The CONSULTANT shall, upon request of the CITY, execute any further document(s) necessary to further effectuate this waiver and disclaimer. The CONSULTANT agrees that the CITY may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium, or method utilize the CONSULTANT'S written work product for the CITY'S purposes, and the CONSULTANT expressly waives and disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to intellectual property and artistic works. Any modification or reuse by the CITY of documents, drawings, or specifications prepared by the CONSULTANT shall relieve the CONSULTANT from liability under Section 14, but only with respect to the effect of the modification or reuse by the CITY, or for any liability to the CITY should the documents be used by the CITY for some project other than what was expressly agreed upon within the Scope of this project, unless otherwise mutually agreed. 8. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of this Agreement will be acting in an independent capacity and not as agents, employees, partners, or joint venturers with one another. Neither the CONSULTANT nor the CONSULTANT'S employees are employees of the CITY, and are not entitled to any of the rights, benefits, or privileges of the CITY'S employees, including but not limited to retirement, medical, unemployment, or workers' compensation insurance. This Agreement contemplates the personal services of the CONSULTANT and the CONSULTANT'S employees, and it is recognized by the parties that a substantial inducement to the CITY for entering into this Agreement was, and is, the professional reputation and competence of the CONSULTANT and its employees. Neither this Agreement nor any interest herein may be assigned by the CONSULTANT without the prior written consent of the CITY. Nothing herein contained is intended to prevent the CONSULTANT from employing or hiring as many employees, or SUBCONSULTANTS, as the CONSULTANT may deem necessary for the proper and efficient performance of this Agreement. All agreements by CONSULTANT with its SUBCONSULTANT(S) shall require the SUBCONSULTANT(S) to adhere to the applicable terms of this Agreement. 9. CONTROL. Neither the CITY nor its officers, agents, or employees shall have any control over the conduct of the CONSULTANT or any of the CONSULTANT'S employees, except as herein set forth, and the CONSULTANT or the CONSULTANT'S agents, servants, or employees are not in any manner agents, servants, or employees of the CITY, it being understood that the CONSULTANT its agents, servants, and employees are as to the CITY wholly independent CONSULTANT, and that the CONSULTANT'S obligations to the CITY are solely such as are prescribed by this Agreement. 3 3 10. COMPLIANCE WITH APPLICABLE LAW. The CONSULTANT, in the performance of the services to be provided herein, shall comply with all applicable state and federal statutes and regulations, including, but not limited to, the provisions of the federal Fair Debt Collection Practices Act and California's Rosenthal Fair Debt Collection Practices Act,. and all applicable ordinances, rules, and regulations of the City of National City, whether now in force or subsequently enacted. The CONSULTANT and each of its SUBCONSULTANT(S), shall obtain and maintain a current City of National City business license prior to and during performance of any work pursuant to this Agreement. 11. LICENSES, PERMITS, ETC. The CONSULTANT represents and covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. The CONSULTANT represents and covenants that the CONSULTANT shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit, or approval which is legally required for the CONSULTANT to practice its profession. 12. STANDARD OF CARE. A. The CONSULTANT, in performing any services under this Agreement, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the CONSULTANT'S trade or profession currently practicing under similar conditions and in similar locations. The CONSULTANT shall take all special precautions necessary to protect the CONSULTANT'S employees and members of the public from risk of harm arising out of the nature of the work and/or the conditions of the work site. B. Unless disclosed in writing prior to the date of this Agreement, the CONSULTANT warrants to the CITY that it is not now, nor has it for the five (5) years preceding, been debarred by a governmental agency or involved in debarment, arbitration or litigation proceedings concerning the CONSULTANT'S professional performance or the furnishing of materials or services relating thereto. C. The CONSULTANT is responsible for identifying any unique products, treatments, processes or materials whose availability is critical to the success of the project the CONSULTANT has been retained to perform, within the time requirements of the CITY, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless the CONSULTANT has notified the CITY otherwise, the CONSULTANT warrants that all products, materials, processes or treatments identified in the project documents prepared for the CITY are reasonably commercially available. Any failure by the CONSULTANT to use due diligence under this sub -paragraph will render the CONSULTANT liable to the CITY for any increased costs that result from the CITY'S later inability to obtain the specified items or any reasonable substitute within a price range that allows for project completion in the time frame specified or, when not specified, then within a commercially reasonable time. 13. NON-DISCRIMINATION PROVISIONS. The CONSULTANT shall not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The CONSULTANT will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment 4 4 advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONSULTANT agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause. 14. CONFIDENTIAL INFORMATION. The CITY may from time to time communicate to the CONSULTANT certain confidential information to enable the CONSULTANT to effectively perform the services to be provided herein. The CONSULTANT shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CITY. The CONSULTANT shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services to be provided herein. The foregoing obligation of this Section 14, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of the CONSULTANT, hereafter disclosed in publicly available sources of information; (iii) is already in the possession of the CONSULTANT without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the CONSULTANT by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. The CONSULTANT shall not disclose any reports, recommendations, conclusions, or other results of the services or the existence of the subject matter of this Agreement without the prior written consent of the CITY. In its performance hereunder, the CONSULTANT shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm, or corporation. CONSULTANT shall be liable to CITY for any damages caused by breach of this condition, pursuant to the provisions of Section 14. 15. INDEMNIFICATION AND HOLD HARMLESS. The CONSULTANT agrees to defend, indemnify and hold harmless the City of National City, its officers, officials, agents, employees, and volunteers against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys' fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, resulting from or arising out of the CONSULTANT'S performance or other obligations under this Agreement; provided, however, that this indemnification and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers, employees, or volunteers. CITY will cooperate reasonably in the defense of any action, and CONSULTANT shall employ competent counsel, reasonably acceptable to the City Attorney. The indemnity, defense, and hold harmless obligations contained herein shall survive the termination of this Agreement for any alleged or actual omission, act, or negligence under this Agreement that occurred during the term of this Agreement. 16. WORKERS' COMPENSATION. The CONSULTANT shall comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar State or federal acts or laws applicable; and shall indemnify, 5 5 and hold harmless the CITY and its officers, employees, and volunteers from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description, including reasonable attorney's fees and defense costs presented, brought or recovered against the CITY or its officers, employees, or volunteers, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by the CONSULTANT under this Agreement. 17. INSURANCE. The CONSULTANT, at its sole cost and expense, shall purchase and maintain, and shall require its SUBCONSULTANT(S), when applicable, to purchase and maintain throughout the term of this Agreement, the following checked insurance policies: A. ® If checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence. B. Automobile Insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include owned, non -owned, and hired vehicles ("any auto"). The policy shall name the CITY and its officers, agents, employees, and volunteers as additional insureds, and a separate additional insured endorsement shall be provided. C. Commercial General Liability Insurance, with minimum limits of either $2,000,000 per occurrence and $4,000,000 aggregate, or $1,000,000 per occurrence and $2,000,000 aggregate with a $2,000,000 umbrella policy, covering all bodily injury and property damage arising out of its operations, work, or performance under this Agreement. The policy shall name the CITY and its officers, agents, employees, and volunteers as additional insureds, and a separate additional insured endorsement shall be provided. The general aggregate limit must apply solely to this "project" or "location." The "project" or "location" should be noted with specificity on an endorsement that shall be incorporated into the policy. D. Workers' Compensation Insurance in an amount sufficient to meet statutory requirements covering all of CONSULTANT'S employees and employers' liability insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed with a waiver of subrogation in favor of the City. Said endorsement shall be provided prior to commencement of work under this Agreement. If CONSULTANT has no employees subject to the California Workers' Compensation and Labor laws, CONSULTANT shall execute a Declaration to that effect. Said Declaration shall be provided to CONSULTANT by CITY. E. The aforesaid policies shall constitute primary insurance as to the CITY, its officers, officials, employees, and volunteers, so that any other policies held by the CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CITY of cancellation or material change. F. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the CONSULTANT shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date must be on or before the date of this Agreement. G. Insurance shall be written with only California admitted companies that hold a current policy holder's alphabetic and financial size category rating of not less than A-VII according to the current Best's Key Rating Guide, or a company equal financial stability that is approved by the CITY'S Risk Manager. In the event coverage is provided by non -admitted 6 6 "surplus lines" carriers, they must be included on the most recent California List of Eligible Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements. H. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, filed with, and approved by the CITY'S Risk Manager. If the CONSULTANT does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, the CITY may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. I. All deductibles and self -insured retentions in excess of $10,000 must be disclosed to and approved by the CITY. 18. LEGAL FEES. If any party brings a suit or action against the other party arising from any breach of any of the covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in that event, the prevailing party in such action or dispute, whether by final judgment or out -of -court settlement, shall be entitled to have and recover of and from the other party all costs and expenses of suit, including attorneys' fees. For purposes of determining who is to be considered the prevailing party, it is stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attorney's fees to the prevailing party if other than the CITY shall, in addition, be limited to the amount of attorney's fees incurred by the CITY in its prosecution or defense of the action, irrespective of the actual amount of ey's fees incurred by the prevailing party. to, this Agreement, or breach thereof, which ' l ' b . ediattie s' ll he . ttlled b ' rJ-cavc-cv�.,...... , .- � AATthen exis v n the art a an`' controversy. The expenses of the ar-bitration-shall-be-be-eually 20. TERMINATION. A. This Agreement may be terminated with or without cause by the CITY. Termination without cause shall be effective only upon 60-day's written notice to the CONSULTANT. During said 60-day period the CONSULTANT shall perform all services in accordance with this Agreement. B. This Agreement may also be terminated immediately by the CITY for cause in the event of a material breach of this Agreement, misrepresentation by the CONSULTANT in 7 connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the CITY. C. Termination with or without cause shall be effected by delivery of written Notice of Termination to the CONSULTANT as provided for herein. D. In the event of termination, all finished or unfinished Memoranda Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the CONSULTANT, whether paper or electronic, shall immediately become the property of and be delivered to the CITY, and the CONSULTANT shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of the Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the CITY by the CONSULTANT'S breach, if any. Thereafter, ownership of said written material shall vest in the CITY all rights set forth in Section 7. E. The CITY further reserves the right to immediately terminate this Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONSULTANT; (2) a reorganization of the CONSULTANT for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of the CONSULTANT. 21. NOTICES. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To CITY: Director of Finance City of National City 1243 National City Boulevard National City, CA 91950-4397 To CONSULTANT: Kris Davisson, Vice President Financial Credit Network, Inc. 1300 West Main Street Visalia, CA 93292 Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice, demand, request, or communication sent. Any notice, request, demand, direction or other communication 8 8 sent by cable, telex, telecopy, facsimile or fax must be confirmed within forty-eight (48) hours by letter mailed or delivered as specified in this Section. 22. CONFLICT OF INTEREST AND POLITICAL REFORM ACT OBLIGATIONS. During the term of this Agreement, the CONSULTANT shall not perform services of any kind for any person or entity whose interests conflict in any way with those of the City of National City. The CONSULTANT also agrees not to specify any product, treatment, process, or material for the project in which the CONSULTANT has a material financial interest, either direct or indirect, without first notifying the CITY of that fact. The CONSULTANT shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. The CONSULTANT shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the CITY in which the CONSULTANT has a financial interest as defined in Government Code Section 87103. The CONSULTANT represents that it has no knowledge of any financial interests that would require it to disqualify itself from any matter on which it might perform services for the CITY. If checked, the CONSULTANT shall comply with all of the reporting requirements of the Political Reform Act and the National City Conflict of Interest Code. Specifically, the CONSULTANT shall file a Statement of Economic Interests with the City Clerk of the City of National City in a timely manner on forms which the CONSULTANT shall obtain from the City Clerk. The CONSULTANT shall be strictly liable to the CITY for all damages, costs or expenses the CITY may suffer by virtue of any violation of this Paragraph 22 by the CONSULTANT. 23. PREVAILING WAGES. State prevailing wage rates may apply to work performed under this Agreement. State prevailing wages rates apply to all public works contracts as set forth in California Labor Code, including but not limited to, Sections 1720, 1720.2, 1720.3, 1720.4, and 1771. Consultant is solely responsible to determine if State prevailing wage rates apply and, if applicable, pay such rates in accordance with all laws, ordinances, rules, and regulations. 24. MISCELLANEOUS PROVISIONS. A. Computation of Time Periods. If any date or time period provided for in this Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or federal, state, or legal holiday. B. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. C. Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. D. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. 9 9 E. Exhibits and Schedules. The Exhibits and Schedules attached hereto are hereby incorporated herein by this reference for all purposes. To the extent any exhibits or schedules or provisions thereof conflict or are inconsistent with the terms and conditions contained in this Agreement, the terms and conditions of this Agreement shall control. F. Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto. G. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. H. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. I. Audit. If this Agreement exceeds ten -thousand dollars ($10,000), the parties shall be subject to the examination and audit of the State Auditor for a period of three (3) years after final payment under the Agreement, per Government Code Section 8546.7. J. Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent, or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. K. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. L. Subcontractors or Subconsultants. The City is engaging the services of the CONSULTANT identified in this Agreement. The CONSULTANT shall not subcontract any portion of the work, unless such subcontracting was part of the original proposal or is allowed by the City in writing. In the event any portion of the work under this Agreement is subcontracted, the subconsultant(s) shall be required to comply with and agree to, for the benefit of and in favor of the City, both the insurance provisions in Section 17 and the indemnification and hold harmless provision of Section 15 of this Agreement. M. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv) each party and such party's counsel and advisors have reviewed this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. [Signature Page to Follow] 10 10 CITY OF NATIONAL CITY By: Ron Morrison, Mayor APPROVED AS TO FORM: George H. Eiser, III Interim City Attorney FINANCIAL CREDIT NETWORK, INC. (Corporation -- signatures of two corporate officers required) By: (Name) 1-EcA-0,4s- (Print) Prewtg-)%t (Title) By: 1Cui (Name) EriS b t S (Print) iciL (Title) 11 Exhibit A FINANCIAL CREDIT NETWORK, INC. SCOPE OF SERVICES A. General Services: Financial Credit Network, Inc. ("FCN") shall provide collection services for unpaid and delinquent accounts receivable for the City of National City ("City") which includes: 1. administrative citations; 2. code enforcement citations; 3. business licenses; 4. false alarm billing; 5. property damage; 6. returned checks; and 7. miscellaneous receivables. B. Specific Services: FCN shall perform the following specific services: 1. Accept automated or manual transfers of delinquent accounts information from the City or City -authorized vendor's database (during which times FCN will work, at no additional cost, with the City, and City software, to ensure accurate and timely transmission of data); 2. Perform a minimum of two written or telephone contacts for each account within sixty (60) days of receipt of delinquent account information from the City; 3. Conduct skip tracing on delinquent accounts using tools provided by FCN; 4. Accrue interest on outstanding balances at a rate established by the City as authorized by the National City Municipal Code or by resolution of the City Council of the City of National City; 5. Provide consumer with multiple payment options; 6. Remit monies due to the City at least monthly, providing a detailed accounting of collections less City -owed fees with each remittance; 7. Report, in accordance with all applicable federal and California laws, all uncollected accounts pursued for collection by FCN for not less than 60 days to the major credit bureaus, except for types of accounts excluded from reporting by the National City Director of Finance ("Director"); 8. In accordance with the Fair Credit Reporting Act, remove account notifications from all affected bureaus at the request of the Director and provide a copy of the account notification removal letter or form submitted to each bureau to the Director; 9. Provide on -going training and education opportunities and provide updates to City staff on changes in state and federal laws related to credit and collections; Page 1 of 3 12 Exhibit A 10. Meet at least annually with the Director and other City staff to review and discuss all services and collection results; 11. Provide recommendations on how the City can reduce future bad debt; 12. Maintain accurate records of all correspondence, accounting records, banking records, and other relative evidence for each assigned account for at least seven (7) years after termination of the collection action and make said records available to the City for review upon request by the Director of Finance, or designee. C. Additional Collection Requirements: 1. The City reserves the right to withdraw a delinquent account from FCN at any time. In such cases, FCN shall cease all collection and/or legal activities related to the account. If an account is withdrawn prior to collection activity on the part of FCN, no fees shall be due. 2. The City requires FCN to exercise high ethical standards in its collection efforts. The FCN shall conduct its collection business in a professional manner and shall not use tactics which may he interpreted as harassment or as demeaning or that otherwise may reflect poorly on the City's image. The City prohibits any collection enforcement procedures not consistent with the City's requirements. 3. FCN shall make contacts with delinquent accountholders under FCN's name. 4. FCN shall instruct delinquent accountholders to submit payment to the collection agency. Any payments received by the City directly from accountholders will be forwarded to FCN for processing. FCN will be notified of any payment forwarded by the City. Funds received by FCN must be maintained in a trust fund until remitted to the City and the collection fee can be deducted at the time of remittance. D. Reporting Requirements: FCN shall provide the City with the following reports: 1. Monthly status report detailing all its collection activities for the previous month that shall include detailed accounting information, including: a. original placed value of debt; b. current value of debt; c. amount(s) and date(s) of all payment(s) received; d. interest charged; e. charges waived; f. balance due; 2. Invoices detailing collections received for the previous month, less all fees deducted (as set forth in Exhibit B) shall be sent to the City on a monthly basis. Page 2 of 3 13 Exhibit A 3. Period -to -date and fiscal year-to-date financial summary reports reflecting pertinent information, such as receipts, total accounts receivable, net accounts receivable, and collection percentage. 4. Annual report detailing the previous fiscal year's activities (July 1 through June 30), including detailed listings of the following: a. all accounts by type; b. all accounts closed in the past year by type; c. all activity by account in past year by account type; and d. summary of those reports mentioned in subsections 3(a)-3(c) 5. Ad hoc reports upon the City's request. 6. Detailed and summarized aging report, upon the City's request. E. Administrative Provisions: 1. FCN shall guarantee the confidentiality, security, and safety of all files, documents, computer files, etc. 2. FCN shall not subcontract work covered by this Exhibit A, or the Agreement between the City and FCN, without the prior written consent of the City. Page 3 of 3 14 Exhibit B 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 B 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 15 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 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. 1N 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] 1 CITY OF NATIONAL CITY By: Alejandra Sotelo-So is, Mayor FINANCIAL CR I T NETWORK, INC. ame L APPROVED AS TO,FOORM: (Title) OA) 1 A41SZA41401PP'-% Angil Mnes By: City • 'rney (Marne) hest (Print) (Title) 2 SECOND AMENDMENT TO THE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND FINANCIAL CREDIT NETWORK, INC. THIS SECOND AMENDMENT TO THE AGREEMENT, is entered into this 16th day of June, 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, on January 21, 2020, the CITY and the CONSULTANT agreed to extend the Agreement for one year through June 30, 2020; and WHEREAS, the parties desire to amend the Agreement to extend the term of the Agreement for one year to June 30, 2021. AGREEMENT NOW, THEREFORE, the CITY and CONSULTANT parties agree as follows: This Amendment extends the term of the Agreement through June 30, 2021; 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 Second Amendment to the Agreement on the date and year first above written. CITY OF NATIONAL CITY FINANCIAL CREDIT NETWORK, INC. By: By: Alejandra Sotelo-Solis, Mayor (Name) (Print) APPROVED AS TO FORM: (Title) Angil Morris -Jones City Attorney By: (Name) (Print) (Title) RESOLUTION NO. 2020 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE THE SECOND 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, 2021 WHEREAS, the City of National City ("City") desired to engage 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, on January 21, 2020 the City Council approved the First Amendment to the Agreement extending the Agreement retroactively from July 1, 2019 to June 30, 2020; and WHEREAS, City staff recommends that Council exercise the option to extend the Agreement from July 1, 2020 to June 30, 2021. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute the Second one (1) year amendment to extend the Agreement with Financial Credit Network, Inc., for a one (1) year term ending June 30, 2021 for debt collection services for collection of delinquent indebtedness owed to the City of National City. Said Second amendment to the Agreement is on file in the Office of the City Clerk. PASSED and ADOPTED this 16th day of June, 2020 Alejandra Sotelo-Solis, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney