119951
RESOLUTION NO. 11,995
2 A RESOLUTION TO AUTHORIZE THE CITY MANAGER TO ENTER
3 INTO A REVISED COLLECTION SERVICE AGREEMENT WITH
4 COLLECTION SERVICE, INC.; AND FOR OTHER PURPOSES.
5 WHEREAS, in August, 2002, the Board approved an agreement with Collection
6 Service, Inc. (CSI) for the collection of outstanding accounts receivable, and
7 WHEREAS, the 2005 budget projects the cost of collections under the agreement
8 with CSI to be $90,000.00, and
9 WHEREAS, it is believed by management that the overall cost of collection can
10 be reduced substantially by City staff handling collections on accounts less than one
11 year old;
12 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
13 THE CITY OF LITTLE ROCK, ARKANSAS:
14 Section 1. The Board of Directors hereby authorizes the City Manager to enter
15 into a revised agreement with Collection Service, Inc. for the remainder of the CSI
16 contract term, for collection of accounts receivable, as set forth in the contract attached
17 hereto as Exhibit "A ".
18 Section 2. Severability. In the event any title, section, paragraph, item, sentence,
19 clause, phrase, or word of this resolution is declared or adjudged to be invalid or
20 unconstitutional, such declaration or adjudication shall not affect the remaining
21 portions of the resolution which shall remain in full force and effect as if the portion so
22 declared or adjudged invalid or unconstitutional was not originally a part of the
23 resolution.
24 Section 3. Repealer. All laws, ordinances, resolutions, or parts of the same, that
25 are inconsistent with the provisions of this resolution, are hereby repealed to the extent
26 of such inconsistency.
[PAGE 1 OF 21
Resolution
Agreement with Collection Service, Inc.
1 ADOPTED: May 17, 2005
2
3 ATTEST:
4
5
6 Nancy W0'4' City Clerk
7
8 APPROVED AS TO LEGAL FORM:
9
10 441Lt"1q'
11 Thomas M. Carpenter, eity Attorney
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[PAGE 2 OF 21
Resolution
Agreement with Collection Service, Inc.
APPROVED: �
9w...jk&4
ji �Pailey, Mayor
AGREEMENT
THIS AGREEMENT, made and entered into as of the _ day of May, 2005,
by and between Collection Service, Inc., an Arkansas corporation licensed to do
business in Arkansas, hereinafter called "Collection Agency ", and the City of Little
Rock, Arkansas, hereinafter called "Client ".
WITNESSETH
WHEREAS, Client from time to time has unpaid judgments and accounts which
it is unable to collect through ordinary processes of collection available to it, and desires
Collection Agency to collect such judgments and accounts that City refers to Collection
Agency; and
WHEREAS, Collection Agency is equipped to collect unpaid judgments and
accounts of Client and desires to handle such accounts as may be referred by Client;
NOW, THEREFORE, it is mutually agreed as follows:
1. Collection Agency agrees to accept for collection such unpaid judgments and
accounts as Client may refer to Collection Agency from time to time.
2. Collection Agency agrees to cancel and return judgments and accounts at
Client's request.
3. Collection Agency will promptly remit to Client one hundred percent (100 %)
of all collections collected by Collection Agency. Client will remit to
Collection Agency its fee no later than ten (10) days after receiving a
statement for such fees.
4. Client hereby agrees that fees for Collection Agency shall be the following;
A. Thirty percent (30 %) on all judgments or accounts deemed by Client
to be uncollectible by Client.
5. On or about the fifth (5th) day of the month, Collection Agency will submit its
report to Client listing the judgments or accounts collected or caused to be
paid directly to the Client, in whole or in part, during the proceeding month,
accompanied by remittance to Client.
6. Collection Agency shall work as an independent contractor, shall use its own
letterhead for all correspondence and at all times shall make clear to any
judgment debtors, or account debtors, that it is acting for Client, but that it is
not a part of the Client's organization.
7. Collection Agency agrees to supply Client with a monthly report, including
monthly collection totals and percentages including year to date totals.
8. Collection Agency shall comply with all state and federal civil rights laws in
the performance of this Agreement, and shall further comply with all rules,
regulations and provisions of the federal bankruptcy laws; in the event any
action by Collection Agency pursuant to this Agreement results in a
successful state or federal civil rights or discrimination claim against Client,
Collection Agency shall be responsible for, and shall indemnify Client for all
costs, judgments, fees, attorney fees, or expenditures or expenses of any
nature whatsoever, incurred by Client in the defense of such claim,
notwithstanding the fact that Client may choose to use its own legal counsel to
defend such claim.
9. Collection Agency, by entry into this Agreement, assures that it is aware of
and shall comply with any and all special Arkansas statutes that deal with the
collections of judgments and accounts from a municipal court, or the
judgment of accounts of any court, on behalf of the City.
10. This Agreement shall be in full force and effect for a period of one year from
the date of its execution, provided:
(A) Either party may voluntarily terminate this Agreement upon thirty (30)
days written notice to the other of the intent to do so; if such termination
occurs, Collection Agency shall be entitled to payment for any
collections received after the date of termination which were received
because of the actions of Collection Agency; further, Collection Agency
shall turn over all records to the City on the date that the Agreement is
terminated;
(B) Either party may terminate this Agreement as quickly as possible for
violation of the terms and provisions of this Agreement, and upon notice
of such termination shall meet to arrange the return of all files to the
City; and to negotiate the payment of any outstanding fees due to
Collection Agency.
WITNESS the signature of the parties as to the date and year noted above.
COLLECTION SERVICES, INC.
By:
CITY OF LITTLE ROCK, ARKANSAS
By:
Pursuant to authority granted in Little
Rock, Ark. Resolution No. (May
_, 2005)