HomeMy WebLinkAboutAmerican Capital Enterprises Inc; 2012-02-24;RATIFICATION OF AMENDMENT NO. 3 TO EXTEND AND AMEND AGREEMENT
FOR COLLECTION SERVICES
AMERICAN CAPITAL ENTERPRISES, INC.
This "fication of Amendment No. 3 is e;5red into as of the Jtpth day of
=-~----!...::...w:i~f---:-:----:------' 20 , but effective as of the 251h day of
February, 2015, ending and amending the agreement dated February 24, 2012 (the
"Agreement") by and between the City of Carlsbad, a municipal corporation, ("City"}, and
American Capital Enterprises, Inc., ("Contractor") (collectively, the "Parties") for collection
services.
RECITALS
A. On February 25, 2013, the Parties executed Amendment No. 1 to the Agreement
for Collection Services; and
B. On March 17, 2014, the Parties executed Amendment No. 2 to the Agreement for
Collection Services; and
C. The Agreement, as amended from time to time expired on February 24, 2015 and
Contractor continued to work on the services specified therein without the benefit of an
agreement; and
D. The Parties desire to extend the Agreement for a period of 1 year; and
E. The Parties desire to fund the Agreement for another year.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Contractor agree as follows:
1. The retroactive extension and amendment of the Agreement is ratified.
2. That the Agreement, as may have been amended from time to time, is hereby
extended for a period of one year ending on February 24, 2016 on a time and materials basis not-
to-exceed thirty thousand dollars ($30,000) per Agreement year.
3. All other provisions of the Agreement, as may have been amended from time to
time, will remain in full force and effect.
4. All requisite insurance policies to be maintained by the Contractor pursuant to the
Agreement, as may have been amended from time to time, will include coverage for this
Amendment.
5. Reserved
6. Reserved
7. Reserved
City Attorney Approved Version 1/30/13
8. The individuals executing this Amendment and the instruments referenced in it on
behalf of Contractor each represent and warrant that they have the legal power, right and actual
authority to bind Contractor to the terms and conditions of this amendment.
CONTRACTOR
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CITY OF CARLSBAD, a municipal
corporation of the State of California
By:
or Mayor or Director
ATTEST:
City Clerk
If required by City, proper notarial acknowledgment of execution by contractor must be attached.
If a corporation, Agreement must be signed by one corporate officer from each of the following
two groups.
Group A
Chairman,
President, or
Vice-President
Group B
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or assistant
secretary under corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
City Attorney Approved Version 1/30/13
2
AMENDMENT NO. 2 TO EXTEND THE AGREEMENT FOR
COLLECTION SERVICES
AMERICAN CAPITOL ENTERPRISES, INC.
This Amendment No. 2 is entered into and effective as of the I rfA day of
/'V\a.rch. , 20!!:/:..., extending the agreement dated February 24, 2012
(the "Agreement") by and between the City of Carlsbad, a municipal corporation, ("City"), and
American Capital Enterprises, Inc., a corporation, ("Contractor") (collectively, the "Parties") for
collection services.
RECITALS
A. On February 25, 2013, the Parties executed Amendment No. 1 to the Agreement
to for collection services; and
B. The Parties desire to extend the Agreement for a period of one (1) year, ending
February 24, 2015.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Contractor agree as follows:
1. The Agreement, as may have been amended from time to time, is hereby
extended for a period of one (1) year ending on February 24, 2015, in an amount not to exceed
thirty thousand dollars ($30,000) per Agreement year.
2. All other provisions of the Agreement, as may have been amended from time to
time, shall remain in full force and effect.
3. All requisite insurance policies to be maintained by the Contractor pursuant to the
Agreement, as may have been amended from time to time, shall include coverage for this
Amendment.
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City Attorney Approved Version 1/30/13
4. The individuals executing this Amendment and the instruments referenced on
behalf of Contractor each represent and warrant that they have the legal power, right and actual
authority to bind Contractor to the terms and conditions hereof of this Amendment.
CONTRACTOR
(sign here)
R.il~IIJ 1\-1..9 G. M~tntrsuw ff2C3.+-oC:::W1
(print name/title)
By:
7 (sign here)
(print name/title)
CITY OF CARLSBAD, a municipal
corporation of the State of California
By: c/~
Cit¥ Mo!!Rasar 9r Mayer er Director Chuck McBnde
ATTEST:
City Clerk
If required by City, proper notarial acknowledgment of execution by Contractor must be
attached. If a corporation, Agreement must be signed by one corporate officer from each of the
following two groups:
Group A
Chairman,
President, or
Vice-President
Group B
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or assistant
secretary under corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
City Attorney Approved Version 1/30/13
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AMENDMENT N0.1TO EXTEND THE AGREEMENT FOR COLLECTION SERVICES
AMERICAN CAPITOL ENTERPRISES, INC.
This Amendment No. 1 is entered into and effective as of the .:25~ day of
fi:;bn./~ , 20.l..S., extending the agreement dated February 24, 2012
(the "Agreement")i and between the City of Carlsbad, a municipal corporation, ("City"), and
American Capital Enterprises, Inc., a corporation, ("Contractor'') (collectively, the "Parties") for
collection services.
RECITALS
A. On February 24, 2012, the Parties entered into a one year Agreement for
collection services; and
B. The Parties desire to extend the Agreement for a period of one (1) year, ending
February 24, 2014.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Contractor agree as follows:
1. The Agreement, as may have been amended from time to time, is hereby
extended for a period of one (1) year ending on February 24, 2014, not to exceed thirty
thousand dollars ($30,000) per Agreement year.
2. All other provisions of the Agreement, as may have been amended from time to
time, shall remain in full force and effect.
3. All requisite insurance policies to be maintained by the Contractor pursuant to the
Agreement, as may have been amended from time to time, shall include coverage for this
Amendment.
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City Attorney Approved Version 5/12/11
4. The individuals executing this Amendment and the instruments referenced on
behalf of Contractor each represent and warrant that they have the legal power, right and actual
authority to bind Contractor to the terms and conditions hereof of this Amendment.
CONTRACTOR
B~
(sign here)
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(print name/title) 1
(print name/title)
CITY OF CARLSBAD, a municipal
corporation of the State of California
By:
If required by City, proper notarial acknowledgment of execution by Contractor must be
attached. If a corporation, Agreement must be signed by one corporate officer from each of the
following two groups:
Group A
Chairman,
President, or
Vice-President
Group B
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or assistant
secretary under corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
ssistant City Attorney
City Attorney Approved Version 5/12/11
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AGREEMENT FOR COLLECTION SERVICES
AMERICAN CAPITAL ENTERPRISES
THIS AGREEMENT is made and entered into as of the ,2.4--fh day of
Ft:;br'Vt:::l-YC/ , 20 1~. by and between the CITY OF CARLSBAD, a municipal
corporation, ("City"~d American Capital Enterprises, Inc., a corporation, ("Contractor").
RECITALS
A. City requires the professional services of a collection service that is experienced
in debt recovery.
B. Contractor has the necessary experience in providing professional services and
advice related to debt recovery.
C. Selection of Contractor is expected to achieve the desired results in an expedited
fashion.
D. Contractor has submitted a proposal to City and has affirmed its willingness and
ability to perform such work.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Contractor agree as follows:
1. SCOPE OF WORK
City retains Contractor to perform, and Contractor agrees to render, those services (the
"Services") that are defined in attached Exhibit "A", which is incorporated by this reference in
accordance with this Agreement's terms and conditions.
2. STANDARD OF PERFORMANCE
While performing the Services, Contractor will exercise the reasonable professional care and
skill customarily exercised by reputable members of Contractor's profession practicing in the
Metropolitan Southern California Area, and will use reasonable diligence and best judgment
while exercising its professional skill and expertise.
3. TERM
The term of this Agreement will be effective for a period of one (1) year from the date first above
written. The City Manager may amend the Agreement to extend it for three (3) additional one (1)
year periods or parts thereof in an amount not to exceed thirty thousand dollars ($30,000) per
Agreement year. Extensions will be based upon a satisfactory review of Contractor's
performance, City needs, and appropriation of funds by the City Council. The parties will
prepare a written amendment indicating the effective date and length of the extended
Agreement.
4. TIME IS OF THE ESSENCE
Time is of the essence for each and every provision of this Agreement.
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5. COMPENSATION
The total fee payable for the Services to be performed during the initial Agreement term will not
exceed thirty thousand dollars ($30,000). No other compensation for the Services will be
allowed except for items covered by subsequent amendments to this Agreement. The City
reserves the right to withhold a ten percent (10%) retention until City has accepted the work
and/or Services specified in Exhibit "A".
Incremental payments, if applicable, should be made as outlined in attached Exhibit "A".
6. STATUS OF CONTRACTOR
Contractor will perform the Services in Contractor's own way as an independent contractor and
in pursuit of Contractor's independent calling, and not as an employee of City. Contractor will be
under control of City only as to the result to be accomplished, but will consult with City as
necessary. The persons used by Contractor to provide services under this Agreement will not
be considered employees of City for any purposes.
The payment made to Contractor pursuant to the Agreement will be the full and complete
compensation to which Contractor is entitled. City will not make any federal or state tax
withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not be
required to pay any workers' compensation insurance or unemployment contributions on behalf
of Contractor or its employees or subcontractors. Contractor agrees to indemnify City within
thirty (30) days for any tax, retirement contribution, social security, overtime payment,
unemployment payment or workers' compensation payment which City may be required to
make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work
done under this Agreement. At the City's election, City may deduct the indemnification amount
from any balance owing to Contractor.
7. SUBCONTRACTING
Contractor will not subcontract any portion of the Services without prior written approval of City.
If Contractor subcontracts any of the Services, Contractor will be fully responsible to City for the
acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly
employed by the subcontractor, as Contractor is for the acts and omissions of persons directly
employed by Contractor. Nothing contained in this Agreement will create any contractual
relationship between any subcontractor of Contractor and City. Contractor will be responsible for
payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of
a subcontractor by the terms of this Agreement applicable to Contractor's work unless
specifically noted to the contrary in the subcontract and approved in writing by City.
8. OTHER CONTRACTORS
The City reserves the right to employ other Contractors in connection with the Services.
9. INDEMNIFICATION
Contractor agrees to indemnify and hold harmless the City and its officers, officials, employees
and volunteers from and against all claims, damages, losses and expenses including attorneys
fees arising out of the performance of the work described herein caused by any negligence,
recklessness, or willful misconduct of the Contractor, any subcontractor, anyone directly or
indirectly employed by any of them or anyone for whose acts any of them may be liable.
The parties expressly agree that any payment, attorney's fee, costs or expense City incurs or
makes to or on behalf of an injured employee under the City's self-administered workers'
compensation is included as a loss, expense or cost for the purposes of this section, and that
this section will survive the expiration or early termination of this Agreement.
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10. INSURANCE
Contractor will obtain and maintain for the duration of the Agreement and any and all
amendments, insurance against claims for injuries to persons or damage to property which may
arise out of or in connection with performance of the services by Contractor or Contractor's
agents, representatives, employees or subcontractors. The insurance will be obtained from an
insurance carrier admitted and authorized to do business in the State of California. The
insurance carrier is required to have a current Best's Key Rating of not less than "A-:VII". OR
with a surplus line insurer on the State of California's List of Eligible Surplus Line Insurers
(LESLI) with a rating in the latest Best's Key Rating Guide of at least "A:X".
10.1 Coverages and Limits.
Contractor will maintain the types of coverages and minimum limits indicated below, unless City
Attorney or City Manager approves a lower amount. These minimum amounts of coverage will
not constitute any limitations or cap on Contractor's indemnification obligations under this
Agreement. City, its officers, agents and employees make no representation that the limits of
the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to
protect Contractor. If Contractor believes that any required insurance coverage is inadequate,
Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at
Contractor's sole expense.
10.1.1 Commercial General Liability Insurance. $1,000,000 combined single-limit
per occurrence for bodily injury, personal injury and property damage. If the submitted policies
contain aggregate limits, general aggregate limits will apply separately to the work under this
Agreement or the general aggregate will be twice the required per occurrence limit.
1 0.1.2 Automobile Liability (if the use of an automobile is involved for
Contractor's work for City). $1 ,000,000 combined single-limit per accident for bodily injury and
property damage.
1 0.1.3 Workers' Compensation and Employer's Liability. Workers' Compensation
limits as required by the California Labor Code. Workers' Compensation will not be required if
Contractor has no employees and provides, to City's satisfaction, a declaration stating this.
1 0.1.4 Professional Liability. Errors and omissions liability appropriate to
Contractor's profession with limits of not less than $1,000,000 per claim. Coverage must be
maintained for a period of five years following the date of completion of the work.
City's Initials Contractor's Initials
0 If box is checked, Professional Liability
Insurance requirement is waived.
1 0.2. Additional Provisions. Contractor will ensure that the policies of insurance required under
this Agreement contain, or are endorsed to contain, the following provisions:
1 0.2.1 The City will be named as an additional insured on General Liability.
1 0.2.2 Contractor will obtain occurrence coverage, excluding Professional
Liability, which will be written as claims-made coverage.
1 0.2.3 This insurance will be in force during the life of the Agreement and any
extensions of it and will not be canceled without thirty (30) days prior written notice to City sent
by certified mail pursuant to the Notice provisions of this Agreement.
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10.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this
Agreement, Contractor will furnish certificates of insurance and endorsements to City.
10.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance
coverages, then City will have the option to declare Contractor in breach, or may purchase
replacement insurance or pay the premiums that are due on existing policies in order to
maintain the required coverages. Contractor is responsible for any payments made by City to
obtain or maintain insurance and City may collect these payments from Contractor or deduct the
amount paid from any sums due Contractor under this Agreement.
10.5 Submission of Insurance Policies. City reserves the right to require, at anytime, complete
and certified copies of any or all required insurance policies and endorsements.
11. BUSINESS LICENSE
Contractor will obtain and maintain a City of Carlsbad Business License for the term of the
Agreement, as may be amended from time-to-time.
12. ACCOUNTING RECORDS
Contractor will maintain complete and accurate records with respect to costs incurred under this
Agreement. All records will be clearly identifiable. Contractor will allow a representative of City
during normal business hours to examine, audit, and make transcripts or copies of records and
any other documents created pursuant to this Agreement. Contractor will allow inspection of all
work, data, documents, proceedings, and activities related to the Agreement for a period of
three (3) years from the date of final payment under this Agreement.
13. OWNERSHIP OF DOCUMENTS
All work product produced by Contractor or its agents, employees, and subcontractors pursuant
to this Agreement is the property of City. In the event this Agreement is terminated, all work
product produced by Contractor or its agents, employees and subcontractors pursuant to this
Agreement will be delivered at once to City. Contractor will have the right to make one (1) copy
of the work product for Contractor's records.
14. COPYRIGHTS
Contractor agrees that all copyrights that arise from the services will be vested in City and
Contractor relinquishes all claims to the copyrights in favor of City.
15. NOTICES
The name of the persons who are authorized to give written notices or to receive written notice
on behalf of City and on behalf of Contractor under this Agreement.
For City
Name Colette Wengenroth
Title Finance Manager
Department Finance ~~~~------------
City of Carlsbad
Address 1635 Faraday Ave
Carlsbad, CA 92008
Phone No. 760-602-2468
For Contractor
Name American Capital Enterprises
Title Ron Matheson, President
Address 27919 Jefferson Ave.
Suite 206
Temecula, CA 92590
Phone No.
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Each party will notify the other immediately of any changes of address that would require any
notice or delivery to be directed to another address.
16. CONFLICT OF INTEREST
Contractor shall file a Conflict of Interest Statement with the City Clerk in accordance with the
requirements of the City of Carlsbad Conflict of Interest Code. The Contractor shall report
investments or interests in all four categories.
17. GENERAL COMPLIANCE WITH LAWS
Contractor will keep fully informed of federal, state and local laws and ordinances and
regulations which in any manner affect those employed by Contractor, or in any way affect the
performance of the Services by Contractor. Contractor will at all times observe and comply with
these laws, ordinances, and regulations and will be responsible for the compliance of
Contractor's services with all applicable laws, ordinances and regulations.
Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986
and will comply with those requirements, including, but not limited to, verifying the eligibility for
employment of all agents, employees, subcontractors and consultants whose services are
required by this Agreement.
18. DISCRIMINATION AND HARASSMENT PROHIBITED
Contractor will comply with all applicable local, state and federal laws and regulations prohibiting
discrimination and harassment.
19. DISPUTE RESOLUTION
If a dispute should arise regarding the performance of the Services the following procedure will
be used to resolve any questions of fact or interpretation not otherwise settled by agreement
between the parties. Representatives of Contractor or City will reduce such questions, and their
respective views, to writing. A copy of such documented dispute will be forwarded to both
parties involved along with recommended methods of resolution, which would be of benefit to
both parties. The representative receiving the letter will reply to the letter along with a
recommended method of resolution within ten (1 0) business days. If the resolution thus
obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded
to the City Manager. The City Manager will consider the facts and solutions recommended by
each party and may then opt to direct a solution to the problem. In such cases, the action of the
City Manager will be binding upon the parties involved, although nothing in this procedure will
prohibit the parties from seeking remedies available to them at law.
20. TERMINATION
In the event of the Contractor's failure to prosecute, deliver, or perform the Services, City may
terminate this Agreement for nonperformance by notifying Contractor by certified mail of the
termination. If City decides to abandon or indefinitely postpone the work or services
contemplated by this Agreement, City may terminate this Agreement upon written notice to
Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any
documents owned by City and all work in progress to City address contained in this Agreement.
City will make a determination of fact based upon the work product delivered to City and of the
percentage of work that Contractor has performed which is usable and of worth to City in having
the Agreement completed. Based upon that finding City will determine the final payment of the
Agreement.
Either party upon tendering thirty (30) days written notice to the other party may terminate this
Agreement. In this event and upon request of City, Contractor will assemble the work product
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and put it in order for proper filing and closing and deliver it to City. Contractor will be paid for
work performed to the termination date; however, the total will not exceed the lump sum fee
payable under this Agreement. City will make the final determination as to the portions of tasks
completed and the compensation to be made.
21. COVENANTS AGAINST CONTINGENT FEES
Contractor warrants that Contractor has not employed or retained any company or person, other
than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that
Contractor has not paid or agreed to pay any company or person, other than a bona fide
employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration
contingent upon, or resulting from, the award or making of this Agreement. For breach or
violation of this warranty, City will have the right to annul this Agreement without liability, or, in
its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full
amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee.
22. CLAIMS AND LAWSUITS
By signing this Agreement, Contractor agrees that any Agreement claim submitted to City must
be asserted as part of the Agreement process as set forth in this Agreement and not in
anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false
claim is submitted to City, it may be considered fraud and Contractor may be subject to criminal
prosecution. Contractor acknowledges that California Government Code sections 12650 et seq.,
the False Claims Act applies to this Agreement and, provides for civil penalties where a person
knowingly submits a false claim to a public entity. These provisions include false claims made
with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of
information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to
recover its litigation costs, including attorney's fees. Contractor acknowledges that the filing of a
false claim may subject Contractor to an administrative debarment proceeding as the result of
which Contractor may be prevented to act as a Contractor on any public work or improvement
for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction
is grounds for City to terminate this Agreement.
23. JURISDICTIONS AND VENUE
Any action at law or in equity brought by either of the parties for the purpose of enforcing a right
or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the
County of San Diego, State of California, and the parties waive all provisions of law providing for
a change of venue in these proceedings to any other county.
24. SUCCESSORS AND ASSIGNS
It is mutually understood and agreed that this Agreement will be binding upon City and
Contractor and their respective successors. Neither this Agreement or any part of it nor any
monies due or to become due under it may be assigned by Contractor without the prior consent
of City, which shall not be unreasonably withheld.
25. ENTIRE AGREEMENT
This Agreement, together with any other written document referred to or contemplated by it,
along with the purchase order for this Agreement and its provisions, embody the entire
Agreement and understanding between the parties relating to the subject matter of it. In case of
conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor
any of its provisions may be amended, modified, waived or discharged except in a writing
signed by both parties.
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26. AUTHORITY
The individuals executing this Agreement and the instruments referenced in it on behalf of
Contractor each represent and warrant that they have the legal power, right and actual authority
to bind Contractor to the terms and conditions of this Agreement.
CONTRACTOR
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(print name/title)
CITY OF CARLSBAD, a municipal
corporation of the State of California
By:
Citv Mar:1a9EU er Me~o• 01 Division Directolf'~~A'''''
as authorized by the City Manag;;~-~
- . ··0-->-: ,_, ·:;;a-~~\ ~ i<-~ ATTEST: 0:, u ··· .. : ... /.k ... ~ ;, ······· ,,
City Clerk
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If required by City, proper notarial acknowledgment of execution by contractor must be
attached. If a corporation, Agreement must be signed by one corporate officer from each of the
following two groups.
Group A
Chairman,
President, or
Vice-President
Group 8
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or assistant
secretary under corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
City Attorney
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EXHIBIT "A"
SCOPE OF SERVICES
Collection Philosophy and Methodology
We (American Capital Enterprises, Inc.) help clients realize their accounts receivable objectives,
with outstanding collection performance and exemplary services, while maintaining their
goodwill in the community.
The Collection Process:
• Upon the accounts being put into our system, and the first notice being sent to the debtor, all
accounts are run through our automated dialer system providing maximum coverage to
obtain debtor response.
• We provide a full complement of notices, as needed, and collector telephone calls to
motivate debtors. We may provide sample letters to you upon request. Accounts are
referred to a collection desk if no response from the automated dialer or if there is no phone
number on the account.
• Balances over $1,000 are reviewed for possible litigation if warranted, and allowed, by our
Client.
• Accounts are reported to Experian (TRW) after the accounts have been in the office for 30
days.
• Skiptracing is done on accounts with no phone numbers. Examples of our skiptracing
technologies are covered in the skiptracing section.
• All balance sizes are accepted for collections. With our technology, small balance accounts
get fair treatment.
• American Capital can undertake a rework on existing or on second placements.
Collection Programs:
Our office custom tailors a program to fit the needs of our clients from letter service to
regular collections. In general, we have listed typical services that we provide.
Letter Service (Pre-collect) $20.00 fee per account
Letter Service (Pre-collect) accounts will get 2 notices over a 45 day period with a
$20.00 fee being added to the bill prior to the 2nd notice being mailed. These notices
will state that we are assisting your office on these accounts. At a pre-agreed time,
typically 60 days from assignment, the account would automatically roll to regular
collections at the regular contingency fee if payment has not been made. At that time, a
negative entry on the customers Experian Credit Report will be made.
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The advantage to this service is that the net return to the City is 1 00% if the debtor pays
within the agreed time frame before the account would be rolled over for regular
collections. With the notices going out with our information, it reduces the calls and
involvement of the City and our office handles all calls and correspondence.
Letter Service $40.00 per account
Letter Service accounts would receive the same treatment as the Pre-Collect Service
with the exception that these accounts would not "roll to hard core collections." These
accounts would stay in the office and would be reported to Experian as collection
accounts at 60 days or at a predetermined time and the account would be suspended.
No telephone calls would be made on these accounts:
This is based on a volume of no more than 200 accounts annually.
Regular Collections 25% contingency
Regular collection accounts are fully explained in Attachment V. Our office makes use
of an automated dialer system as described so we have no minimum on the dollar
amount that we accept. Accounts are actively worked from the date of assignment.
Rework projects are routinely done on a periodic basis to help ensure the maximum
collected as financial situations may change for the debtors.
Legal Accounts 50% contingency
Our office, upon the City Attorney's approval, will initiate litigation when a balance
warrants such action and we have located assets for the debtor.
There is no upfront cost to the City for this service. Our office will handle all fees in
relation to these accounts. We are also willing to accept Judgment accounts where the
City already has a judgment and wants us to pursue the recovery.
Second Placement Accounts 50% contingency
Second placement accounts will be accepted from the City of Carlsbad at a 50%
contingency fee, only after confirmation that the accounts have been properly canceled
from the previous Agency.
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SCOPE OF COLLECTION SERVICES
Description of Service Provided:
American Capital will diligently attempt to effectuate payment on all bad debt accounts
assigned.
Collection Services Include:
• Manual input of all hard copy account information into our computer system (assignments by
electronic media is available by e-mail, floppy disk, diskette, 9 tract and CD-ROM).
• Computer matching of any previous debts with new accounts.
• A written acknowledgement of accounts received.
• First notices in mail to debtors promptly.
• All accounts run through our Auto Dialer providing maximum coverage to obtain debtor
response.
• Accounts that are referred to live collection desk (if no response).
• Full complement of notices, as needed, and collector telephone calls to motivate debtors.
• Monthly reports as Client designates.
• Monthly remittance of dollars collected.
Credit Reporting Services:
• All accounts are listed with Experian Credit Bureau via computer tape to help effectuate
eventual payment up to 7 years from the date of the debt.
Documentation and Reports:
• Acknowledgement Reports are sent promptly to the Client after the accounts are assigned.
We use the Clients account number for easy referencing.
• Remittance Advice Reports are sent to the Client on a monthly basis showing the recovered
dollars for the previous month.
• Creditor Master Reports are sent to the Client monthly, quarterly, or as needed. This report
shows all debtors assigned to collections, balance, payments and the status of the account.
• Cancel Reports are generated to show accounts closed out by our office at your request or
for other specific reasons.
• Special Reports for Clients may be provided as requested. Our computer company may
custom tailor a report to "fit" a Clients' special need. They can do this on short notice, when
necessary.
City Attorney Approved Version 5/12/11
10
Management Audits:
• To ensure compliance with all internal and external collection procedures, our Collection
Manager audits a percentage of the collection files assigned to a collector's desk.
Attorney Services
• Attorney is assigned all balances in excess of $1,000 and personally reviews and works the
accounts.
• Balances in excess of $1,000 have Experian Credit Reports run and are provided to
Attorney as part of the collection process.
• Legals filed on accounts over $1,000 at agency's expense with the Client's approval.
Lawsuits not filed if debtors are "judgment proof' or no assets available to execute on.
Skiptracing Services Include:
Skiptracing services for "skips" include computerized databases searching by the following
topics. · ·
Public Filing and Information:
Property Tax
Uniform Commercial Claims (UCC) filings
Secure Loans/Debts
Fictitious Business (DBA's)
California Corporation/Limited Partnerships
Board of Equalizations
Department of Consumer Affairs
Contractors License
California Civil Index Filings
Address and Telephone Information Providing:
Exact address matches and nearbys
Exact name matches
Similar names with zip code areas
Phone number matches (both home and business)
11
City Attorney Approved Version 5/12111
_4f~_A. CITY OF ~'CARLSBAD
Finance Department
January 12, 2012
Mr. Ron Matheson
President
AMERICAN CAPITAL ENTERPRISES, INC.
27919 Jefferson Ave, Suite 206
Temecula CA 92590
AGREEMENT FOR MASTER COLLECTION SERVICES
Dear Mr. Matheson:
www.carlsbadca.gov
Enclosed please find the Agreement for "Collection Services". Please execute this
agreement in the following manner:
• Do not date the agreement on page 1.
• Please, sign in blue ink only.
• Send a current copy of your Certificate of Insurance with your signed
agreement.
Please note the City will not execute the Agreement without current Certificates of
Insurance in place. This requirement has the greatest potential of delaying execution of
the Agreement. Please return all documents to me at the address below. Please have
the Agreement signed in blue ink and do not date the first page.
Return the executed Agreement to me at the address below at your earliest
convenience. Please contact me at 760-602-2468 if you have any questions regarding
this Ratification.
Sincerely,
(Pet~;~
COLETTE WENGENROTH
Frnance Manager
Enclosure
• ·· ··. 1635 Faraday Avenue, Carlsbad CA 92008-7314 Tel 760-602-2430 Fax 760-602-8553 ~. Business License 760-602-2495, Utility Billing 760-602-2420, Purchasing Tel 760-602-2460-Fax 760-602-8556 ®